Money Laundering

What is Money Laundering?

Money laundering is the legitimization of proceeds from any illegal activity. Illicit proceeds of crimes must be introduced (laundered) into the world’s legitimate financial systems. Criminal organizations transform illicit monetary proceeds into funds derived from an apparent legal source. Three primary stages of money laundering are:

1. Placement of illegal funds into financial systems;
2. Layering funds through a series of mechanisms, such as wire transfers, designed to complicate the paper trail;
3. Integrating the laundered funds back into the legitimate economy through the purchase of real estate, businesses and other investments.

Why is it important?

Money laundering has devastating social consequences. It is estimated to introduce hundreds of billions of illegal dollars into the world’s economy every year. If left unchecked, it can erode the integrity of financial institutions, and in some cases threaten a nation’s very sovereignty. Money laundering extends beyond hiding narcotics profits. Trade fraud, alien smuggling and human trafficking, organized crime, arms smuggling, child pornography and other criminally defined offenses all contribute to a money laundering epidemic that knows no borders.

Private Citizens’ Responsibilities in Combating Money Laundering:

ICE needs your help in order to successfully combat these serious crimes. While financial, trade and cross-border transportation companies, money service businesses and alternative money remitters should learn and follow the legal reporting requirements have legal responsibilities, individuals should be mindful of reporting requirements related to carrying large sums of currency and negotiable instruments when entering and leaving the United States. Suspicious activity should be reported to the ICE Hotline: 1-866-DHS-2-ICE .