The Economics of Everyday Things
60. Money Laundering
Aug 19, 2024
Patrick McKenzie, a fraud prevention expert, shares insights on modern money laundering techniques, highlighting the creative ways criminals disguise illegal funds. Kerry Myers, an associate professor and former FBI special agent, discusses the evolution of money laundering from Prohibition-era tactics to today’s complex schemes. They delve into law enforcement's challenges in tracing illicit activities and the unintentional role of everyday businesses in facilitating these crimes. The blend of history and real-world examples makes for a compelling discussion.
21:24
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Money laundering comprises three stages: placement, layering, and integration, each complicating the tracking of illicit funds.
- Modern money laundering methods, including trade-based laundering and shell corporations, have evolved significantly with technological advancements and decreased cash transactions.
Deep dives
Understanding Money Laundering
Money laundering involves the process of making illicitly obtained funds appear legitimate through various techniques. It typically includes three stages: placement, layering, and integration. During placement, illicit cash is introduced into the financial system; layering then obscures the source of the money through complex transactions, and finally, integration establishes the funds as clean by converting them into assets or investments. This intricate process has evolved with technological advancements, as criminals now employ more sophisticated methods beyond the traditional cash-based approaches.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
