Oh My Fraud

Steal. Wash. Repeat. | A History of Money Laundering

Jan 17, 2024

Explore the history of money laundering from ancient China to Prohibition to the Watergate scandal. Learn about Al Capone's role, long-standing businesses defying logic, the possibility of A1 Vacuum and Sewing being a front for the Mormon mafia. Discover the connection between money laundering and Watergate, as well as steps and tips for prevention.

43:36

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Quick takeaways

Money laundering has been around for centuries, with Al Capone and the era of prohibition playing a significant role in its development, highlighting the importance of paying taxes on dirty money to make it appear clean.

Money laundering laws were introduced in response to the need to combat organized crime and the illegal activities it funds, with the Bank Secrecy Act in 1970 and subsequent legislation strengthening regulations, aiming to prevent banks from facilitating money laundering and requiring individuals to disclose suspicious activities and foreign accounts.

Deep dives

The Origin of Money Laundering: From Al Capone to Prohibition

Money laundering has been around for centuries, with Al Capone and the era of prohibition playing a significant role in its development. Al Capone's failure to launder his money through tax evasion contributed to the modern understanding of the term. The importance of paying taxes on dirty money to make it appear clean is highlighted. The podcast also discusses the interesting phenomenon of businesses that seem to survive despite appearing outdated or lacking customers, using examples like a costume shop and a vacuum and sewing shop.

Introduction

3min

Long-lasting businesses that defy logic

3min

A1 Vacuum and Sewing: A Front for the Mormon Mafia?

14min

Money Laundering During Prohibition and the Watergate Scandal

5min

Money Laundering and Watergate

16min

Steps and Tips for Money Laundering

3min

Cleaning dirty money may be as old as money itself. In this episode, Caleb and Greg discuss the history of money laundering, from ancient China to Prohibition to the greatest American political scandal of the 20th century.

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CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at ohmyfraud@earmarkcpe.com

Sources:

The History Of Money Laundering: Know The Important Origin Of Money Laundering — Financial Crime Academy

The Three Stages Of Money Laundering And How Money Laundering Works. — Financial Crime Academy

Penn Jillette Street Performing Millionaire — Anecdotage

The evolution of money laundering from ancient China to the internet — Grant Thornton Malta

Malta a ‘transit point’ for weapons trafficking from Southern Europe to North Africa — Malta Today