what is Money laundering

Money laundering is the process by which illegal money is converted into legal money.
To understand it, suppose a criminal makes a lot of money. But what’s the use of the cash if he
can’t spend it, I mean there is a limit to all that you can buy without a bill and a receipt, if you
want a huge bungalow to live, you at least have to show legal money otherwise you’ll arouse
the suspicion of local law enforcement and tax authorities. It somehow needs to be deposited in
a bank or converted into something that can be justified to authorities. ( local thuds rarely go
beyond the 100,000 mark which they can easily spend in cash, but the real bosses of the crime
need not commit a crime, for that they hire a local thud. They want to be as clean as possible
for the authorities.) therefore a money laundering is essentially converting that money into
legal income or in other words justifying the income to income tax people. Some ways of
doing that are, making too many small deposits in many banks, which accumulate into a single
account at some point of time. They buy lottery tickets from winners, pay amount in cash to
them, and collect the cash from authorities, indirectly justifying the income; another way is to
deposit some illegal money with a lot of legal money thereby making a spillage, trading
amongst them. Anything with a bill or receipt, like a stock or anything that is legal. Thereby
moving money from one hand to other IN PAPERS.