Slate Daily Feed Slate Money - Money Talks: Modern Money Laundering
Jan 20, 2026
Joe Salama, Chief Compliance Officer at Coinbase and an expert in anti-money laundering, shares his insights on the global money laundering landscape. He discusses the evolving tactics criminals use, including trade-based laundering and the persistent dominance of cash. Salama reveals the staggering scale of illicit activities, with $2-5 trillion laundered annually, highlighting China's influence. He also explains how blockchain technology can enhance tracking of funds, while cautioning that many criminals still prefer cash for its opacity. A fascinating dive into the cat-and-mouse game of AML and illicit finance!
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Three Stages Of Laundering
- Money laundering follows three stages: placement, layering, and reintegration into the financial system.
- Joe Salama explains those steps are ancient but now use modern, sophisticated tools to achieve the same ends.
Trade-Based Laundering Scales
- Trade-based money laundering scales much better than cash businesses by using mis-invoicing in international commerce.
- Joe Salama highlights over- and under-invoicing as a common technique to move large illicit value across borders.
Trillions In Illicit Flows
- Global estimates for money laundering run roughly $2–$5 trillion annually, an order-of-magnitude figure.
- Salama trusts the scale even if the precise number ranges widely among NGOs' estimates.