Money laundering is an illegal act that involves passing illegally obtained funds through a series of complex transactions and operations to make it look like legal income. In banking and financial services, money launderers may use complex transaction structures to conceal the source and whereabouts of funds. The following are some common methods of money laundering： ### 1. **Layered trading (Layering)** -**Multiple transfers**: Money launderers may make multiple transfers through multiple bank accounts, making the source of funds difficult to track. These accounts may be distributed in different countries or regions, taking advantage of regulatory differences in different jurisdictions. -**Cross-border transactions**: Through international bank transfers, funds are transferred to countries with lax supervision or lax legal enforcement, further blurring the flow of funds. ### 2. **Shell companies and shell companies** -**Fictitious company**: Money launderers may create fictitious companies or use shell companies to conduct false transactions. These companies may not have actual business, but use fictitious invoices, contracts and other documents to disguise illegal funds as legal business income. -**Complex corporate structure**: By setting up a multi-layer corporate structure, money launderers can hide the actual controller, making it difficult for law enforcement agencies to track the ultimate beneficiary of the funds. ### 3. **Use of financial instruments** -**Securities trading**: Money launderers may transfer funds through the purchase and sale of securities, stocks, or other financial products. These transactions may involve complex financial instruments, such as derivatives, options, etc., making the flow of funds difficult to track. -**Cryptocurrency**: Using the anonymity of cryptocurrency, money launderers can transfer funds through cryptocurrency exchanges and then exchange them into legal tender to conceal the source of the funds. ### 4. **False loans and investments** -**False loans**: Money launderers may disguise illegal funds as legal loan income through false loan agreements. The loan agreement may be signed with a related party or a fictitious borrower. -**False investment**: Through false investment projects, money launderers can inject illegal funds into seemingly legal investments, and then “whitewash” the funds through the return on investment. ### 5. **Use of trusts and offshore accounts** -**Trust structure**: Money launderers may use the trust structure to hide the actual ownership of assets. Trusts usually have a high degree of confidentiality, making it difficult for law enforcement agencies to track down the actual controller of the funds. -**Offshore accounts**: By opening accounts in offshore financial centers, money launderers can take advantage of bank secrecy laws and tax incentives in these regions to hide the source and whereabouts of funds. ### 6. **Use cash-intensive industries** -**Cash transactions**: Money launderers may use cash-intensive industries (such as casinos, nightclubs, jewelry stores, etc.) to mix illegal funds into legal income. The large volume of cash transactions in these industries makes it difficult to detect the inflow of illegal funds. ### 7. **Abuse of financial technology** -**P2P payment platform**: Money launderers may use the P2P payment platform to make small and frequent transfers, making the flow of funds difficult to track. -**Prepaid cards and e-wallets**: By purchasing prepaid cards or using e-wallets, money launderers can transfer funds to different accounts or countries to conceal the source of the funds. ### 8. **False trade** -**False invoices**: Money launderers may use false trade invoices to disguise illegal funds as legal trade income. For example, by overstating or understating commodity prices, funds are transferred to different accounts or countries. ### 9. **Use professional services** -**Lawyers and accountants**: Money launderers may use the services of lawyers, accountants and other professionals to design complex transaction structures to conceal the source and whereabouts of funds. These professionals may help money launderers create complex company structures, draft false contracts, etc. ### 10. **Abuse of charity** -**False donations**: Money launderers may transfer illegal funds to the charity's account by making false donations to the charity, and then “launder” the funds through the charity's legal activities. ### Conclusion Money laundering is not only illegal, but also has a serious negative impact on society and the economy. Banks and financial institutions have the responsibility to identify and prevent these behaviors through strict anti-money laundering (AML) measures. Understanding these complex transaction structures can help to better prevent and combat money laundering. If you suspect money laundering, you should report it to the relevant law enforcement agencies in a timely manner.