There is one group that opposes anti-money laundering initiatives: money launderers. Are you one of them?
Of course not, you say. You’re not using someone’s money to buy arms for terrorists, or to buy massive supplies of fentanyl.
But what is money laundering? FinCEN:
“Money laundering involves disguising financial assets so they can be used without detection of the illegal activity that produced them.”
And that’s ANY illegal activity, not just the sexy stuff like bombs or drugs.
Let me get very personal. If Bredemarket receives income but I don’t report it on my taxes, that’s illegal.
But let’s look at H&R Block’s story of a firefighter:
“John Doe is a firefighter and works one 24-hour shift every fourth day. During his off hours, he has developed a lucrative plumbing side business….John deals in cash for most of his plumbing jobs, but sometimes he deposits plumbing income into a special savings account. From 2011 to 2013, John cleared about $35,000 a year, after expenses, from his side business.”
Except Doe kinda sorta forgot to declare this income or the separate bank account when filing his taxes.
“Little does John know, the IRS received a Form 1099-MISC reporting $1,100 that ABC Builders paid to John Doe. The IRS also received a Form 1099-INT for $10.61 in interest income on John’s special savings account from Central Bank.”
In H&R Block’s story, Doe serves jail time, has to pay back taxes, and as a convicted felon loses his firefighting job.
Admittedly Doe’s plumbing work is not in and of itself criminal, so this isn’t money laundering…unless Doe’s customers are drug dealers looking to spend their profits on plumbing work.
So…are you pro-money laundering?
Bredemarket 