There are several terms and concepts that may come up in your money laundering case in New Jersey. These terms and definitions apply to all money laundering cases, not just in New Jersey.
Placement involves getting the “dirty” money into the banking system. This may involve adding illegally gained money to money earned legally (e.g., adding “dirty” money to the cash register of a legitimate cash business); creating false invoices; gambling; putting money in trusts to conceal the owner of the money; investing money in offshore companies to conceal the owner of the money; and using foreign bank accounts, including physically taking cash abroad and then wiring it back to the United States. Another popular placement method is called “smurfing,” or spreading out many small transactions over many different accounts to avoid reporting requirements.
Layering (sometimes called concealment or structuring) refers to using various placement techniques repeatedly, making it very difficult to trace the origin of the money. Sometimes shell companies are used. Sometimes goods are purchased and resold. In many cases, the bulk of these transactions may occur in other countries that do not have strict reporting requirements. More recently, cryptocurrencies (decentralized digital money, such as Bitcoin) and even online games have been used in the process of laundering money.
Extraction (sometimes called integration because the money is reintegrated into the regular economy) occurs when the money is taken out and used. The money returns to the criminal or criminal organization from what appears to be a legitimate source. The money is now “clean” – it can be used for any purpose without attracting attention from law enforcement. There may be significant “shrinkage” or loss of money in laundering it. Some examples of ways money might be extracted include: payments to fake or nonexistent employees; loans that will never be repaid; and dividends paid to shareholders of companies controlled by a criminal enterprise. The launderer may use this newly “clean” money to make expensive purchases, such as real estate, new cars, works of art, or jewelry.
Money laundering cases can be complex and often require an intricate understanding of the laws at issue. You do not have to fight these charges alone. Contact The Law Offices of Jonathan F. Marshall so they can help you plan your defense today.
