What is Money Laundering?

Money laundering is the process of disguising the source of money or other assets acquired through illegal means. The purpose of money laundering is to conceal the illicit nature of the funds, in order to make them appear to be legitimate. Money laundering can be done by individuals, businesses, or organizations.

One way to do this is to deposit the money into a legitimate bank account or business (such as a casino). The money can then be used to purchase goods or services, or it can be invested in other businesses. Laundering money is a criminal offense, and law enforcement agencies are constantly working to stop money launderers.

Money laundering typologies in casinos are as varied as the methods used to launder money itself. One Typology is when a casino is used as a front for laundering illicit funds. Another common Typology is "the smurfing method", where money is broken down into small amounts and deposited into several accounts at different casinos in order to avoid scrutiny. Other methods include using casino chips to purchase items or services, or simply transferring money between accounts at different casinos.

While casinos are not the only venues that can be used for laundering money, they do offer several advantages for criminals seeking to clean their funds. Some are open 24 hours a day which makes it easy to move money around, they are cash-based, and they also offer a wide variety of games and activities that can be used to conceal financial transactions.