his form of laundering because of the pure simplicity of it (Bortner).Criminals can also launder money by means of commingling (Preston 15). Commingling is used in business laundering, in which funds are added in with the royalties of a legitimate business. A person needing to hide their illegal profits will purchase a failing business and then increase the gross sales with the illegal profits. This business front helps hide these illegal activities. An example of this is provided to you in the Appendix. AFFECT ON ECONOMYIf left unchecked, money laundering can erode a nations economy by changing the demand for cash, making interest and exchange rates more volatile, and by causing inflation in countries where criminal elements are doing business (State Department). Taking away billions of dollars a year from normal economic growth poses a real danger at a time when the financial health of a country affects the stability of the global market. Money laundering diminishes tax revenue and therefore harms the taxpayers. This loss in tax revenue causes higher tax rates that would otherwise be normal. The banking systems and financial services depend highly on it operating within a framework of high legal, professional, and ethical standards. If funds from the criminal activity can easily make their way into institutions because the employees are blind or do not want to see the activity then that institution can become part of the criminals network. The potential macroeconomic consequences of unchecked money laundering can cause the International Monetary Fund to have inexplicable changes in the money demand. This can have a profound effect on the soundness of the bank. It can contaminate the effects on legal financial transactions, and increase volatility of international capital flows and exchange rates due to unanticipated cross-border asset transfers (FATF). WAYS TO FIND MONEY LAUNDERING ACTIVITYMoney laundering schemes come in many for...
