Laundering by definition is the concealing the origins of illicitly gained funds, however the methodology applied during the arbitrary laundering technique can vary, and can spawn various benefits to both the client as well as to the launderer. These are things that a launderer will take into consideration when operating a laundering scheme.
Firstly, inter-organization cross collaboration can be a very powerful tool for a launderer. This may seem like a complicated term, hence a complicated process, but in reality it is actually quite a simple process, and even easier to implement and manage with some knowledge of general business practice. Assume that the launderer has a client; this client is seeking the transformation of funds as of two months ago. The amount of funds is quite robust, and therefore dictates the generation of different subsidiary corporations, for simplicity sake let’s assume that there are two equally divvied shell corporations, one of these will not be touched, however another is set up for the purpose of leveraging the currently method. The launderer would advise the client to purchase foreign assets from whatever international national (of course, it is always better to choice ones that would result in the lowest amount of sales documentation) by using the foreign corporation, the shell corporation specifically setup for these transactions. These assets will then be sold cross-divisionally, to a legit US corporation setup in the client’s name. However, these assets are sold over the amount initially paid for them, at a markup, a very large one. This requires some paperwork on the part of the bank, to handle the sales transaction, however is beyond the scope of the current documentation. Now, the difference between the price sales between the corporations can be directly deposited into the third account which until now has gone unmentioned, basically, the account which is specifically setup for filtered funds and nothing else. There is also another side effect which benefits the client; they can actually claim the cost of the high priced asset on their returns, decreasing the accumulated revenue, which lowers the liability of the person. This increases the money they gain by an even larger amount as well. It is important to remember that the success of this process depends largely on the shell bank as an organization; the paperwork to handling the sales transactions has to be setup meticulously. Therefore, the launderer should logically charge a surcharge to the client in whatever method that is deemed appropriate, be it a percentage based fee, flat cost, or hourly work put into the project.
Secondly, and most popularly, is a method of setting up what is known as a Dutch Corporation (for more general information about Dutch Corporations, please reference my article on the subject in the research repository. Dutch corporations are very useful in the sense of loans and returns. In essence, they can also help those in a wealthier tax bracket obtain deductions that would otherwise not be feasible in by any method. Dutch corporations are costly to manage, therefore the launderer receives a very vast benefit, making this an activity that if often lucrative to push to clients. Best of all, it if often feasible to find partner companies that a launderer can use in order to manage these companies, therefore, the amount of company resources on the launderers part is also reduced, and the amount of revenue accumulated increased. That is just good business practice.
The launderer usually setups up the Dutch corporation in the name of the client shelled subsidiary corporation. This corporation in turn would relates back to the client by issuing a monies loan (standard), using the clients funds out of the shelled bank. The client would then be in debt to their Dutch corporation, and therefore would have to pay back the loan with the standard amount of interest (whatever is applicable for this situation. Since the loan is round-robin in a single party scenario, it really is up to the needs of the client). The Dutch corporation would use a legit bank as its backend account for deposits, and therefore make payments to this arbitrary company. These payments would then be forwarded back to the client’s guardian account, allowing the filtration of the funds to be complete, and untraceable. This basically is known as a monetary iteration, it establishes a recursive loop leveraging the clients own funds. The client basically has the option to transfer their funds offshore and looks as if the revenue gain is just from making standard loans. As an added benefit, the loan could be known as an enterprise mortgage, and then the tax deductions that could be realized are very lucrative, adding to the benefit. This depends on the country that is used, if it is truly Dutch, or if the general Dutch corporation method is being used.