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Legally Insane - The Law is Funny

May 22, 2018

Legally Insane

Money Laundering - Episode 34

Today you’re going to learn about Money Laundering and it’s origins. You’ll learn about the process of laundering money, how casinos are a safe haven for the rich and why Trump might be an expert at laundering money.


  • [07:40] – In 1970 Nixon signed into law the “Bank Secrecy Act” which was used to protect against money laundering. It required financial institutions to keep records of cash in any amount over $10,000.
  • [10:10] – There are 3 steps to money laundering. The first step is putting the cash into the financial system. The second is camouflaging that money and the third stage is acquiring wealth by selling the asset.
  • [18:53] – Casino players buy chips without any paper work and then launder the money as casino winnings.
  • [20:30] – The Panama Papers was a massive document leak that exposed tax evasion on a global scale.
  • [25:50] – A junket is an agent who will give you casino chips for your cash, for a 20% fee.
  • [30:00] – A smurf avoids the government by breaking up a transaction involving a large amount of cash into smaller transactions below the reporting threshold.

The Takeaway – The penalty for money laundering is often just a fee, which is significantly smaller then the amount of money laundered. The US seems to turn a blind eye to money laundering laws.

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