Anti–Money Laundering in a Nutshell: Awareness and Compliance for Financial Personnel and Business

CHAPTER1

What Is Money Laundering?

The Basics You Need to Know

The term money laundering was coined in the famous 1920s gangster era of American history. Between gambling, prostitution, and sales of prohibition alcohol, there was a lot of cash that required laundering. In other words, a method or methods had to be developed so that the government did not become suspicious about the true nature of a gangster’s funds. The major headache that gangsters faced was that the money they “earned” was in the form of cash currency—and often in small-denomination bills or coins. If the funds were put into the bank, then questions would be asked by the bank and ultimately the government. Further, storing large amounts of money in low-value coins is a physical ...