Money laundering is the process of illegally transferring money without getting caught. It takes two forms:

1. Turning illegally obtained money into money that appears legally obtained.

This is your typical drug dealer with suitcases full of cash. As long as it is in cash, it can be stolen or seized by the authorities. It can't be deposited in the bank, and the IRS will be upset that they didn't get their cut. Just ask Al Capone.

If you stuff a million dollars in your mattress you probably won't sleep very well.

2. Legally possessed money transferred illegally to someone else. Read more…