Laundering

Laundering, primarily referring to money laundering, is the process of concealing the origins of illegally obtained money, making it appear legitimate. This involves disguising the source of funds through a series of complex financial transactions, often across international borders, to evade law enforcement and avoid taxes. The aim is to integrate "dirty" money into the legitimate financial system without arousing suspicion. It can also apply metaphorically to cleaning up reputations or obscuring unpleasant truths. The process is often broken into three stages: placement, layering, and integration.

Laundering meaning with examples

• Authorities are investigating the suspected laundering of funds through offshore accounts, a scheme allegedly used by a major international cartel. The evidence suggests that the criminal organization concealed their drug money by converting it into assets, before funneling it through shell corporations, making it nearly impossible to trace their activities.
• The politician was accused of laundering campaign donations, funnelling contributions through a series of convoluted transactions to hide the actual sources and amount of funding. A government investigation was launched to examine the records and determine the extent of the politician's suspected financial misconduct and potential legal ramifications.
• The company used sophisticated financial instruments to conceal the illegal payments it had made to foreign officials, thus allowing them to launder money with impunity. The company's actions were described as a blatant attempt to obscure the origins of its funds and conceal a trail of illegal dealings from legal scrutiny.
• The public relations team worked overtime to launder the corporation's image after a major environmental scandal, by employing strategies to highlight the good things it does. Despite the effort, public perception remained low and the damage to the company's image required further interventions to achieve a recovery.