dollars, and the exchange rate is 1,000 pesos for 1 U.S. dollar, the broker may discount the rate to 880 pesos for 1 U. S. dollar (Burton).WAYS OF DOING ITThe initial stage occurs when a criminal, or a group of criminals, involved in an illegal activity make a substantial sum of money. The money is then put into the financial system of the world. This may be done by splitting the money up into small amounts and depositing them into a bank account at several different banks. By splitting the cash up into small amounts the criminal avoids a smurf. A smurf is a blue report that must be signed by the depositor if the amount being deposited is $10,000 (Bortner). Another way that they launder money is by purchasing a series of monetary instruments. Cashiers checks, and travellers checks of deposits are just a couple of instruments used (CCANB). These instruments are then collected and deposited into accounts at a different location (FATF). After they have done one of these two things the next stage occurs. In this stage of the process the criminal begins to move the money around to keep the funds as far away from the source as they possibly can. The way this may be accomplished is to purchase different financial investments, or to simply wire the money between different accounts that they have at various banks around the world. These accounts are strategically placed in countries where no laundering investigations occur. After the money has passed through the first two stages, it starts to make its way back towards the original launderer. The way the launderer gets his money back in to the United States is to start purchasing real estate, and various other luxury items. According to recent reports by law enforcement gold trade has now become the mechanism of choice (Kaplan). Criminals purchase gold, whether as jewelry, or even scrap, and then ship it across the border into the United States and sell it. The resulting profits from this form o...
