Money Laundering is to ensure that the money that has been acquired illegally appears to have been obtained legitimately. In simpler terms, it is the process of turning the profit of illegal activity into a legitimate income. Money laundering, which is the process of concealing the proceeds of crime and integrating them into the legitimate financial system, is also a method used to hide the nature, source, location, situation, and movement of a crime or to give a legal image to the proceeds of crime.
Money laundering is essential for criminal organizations to use illegally obtained money effectively. The money laundering process usually consists of three steps: placement, layering, and integration.
Not only these three methods of money laundering but also There are methods other than. To illustrate;
Electronic money provides an easy way to transfer value without revealing its identity, such as untraceable banknotes. Money can also be streamed through online auctions and sales, gambling websites and converted into real, usable, and untraceable "clean" money. The newest form of money laundering involves cryptocurrencies like Bitcoin. While not entirely anonymous, they are increasingly used in racketeering schemes, drug trafficking, and other criminal activities due to their relative anonymity compared to more traditional forms of currency.
If money laundering is not controlled and these crimes continue to be committed, this situation's social and political costs can be severe. In addition to these costs, money laundering's economic and political impact can weaken the social fabric, collective ethical standards, and ultimately the democratic institutions of society. In countries transitioning to democratic systems, this criminal influence can undermine the transition process.