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- Structuring is essentially breaking the cash down to amounts that are below the reporting thresholds. The idea is to deposit the money in multiple small tranches to avoid detection. Structuring helps to remain under the radar but makes placement rather tedious.
- Smuggling of money abroad to a jurisdiction with loose requirements and depositing it into a bank account there. This is a riskier method for placement and the chances of getting caught are higher.
- Usingcash driven businesses for masking criminal proceeds as revue from legitimate enterprises. This is what Al Capone did with his laundromats. Targeted businesses have a naturally high cash flow and a very high ratio between revenue and variable costs. Typical fronts are casinos, exotic dance clubs, car washes, bars and night clubs.
- Trading items with subjectively defied value, such as artwork sold in auctions. Money launderers can benefit from the huge potential for over or underpricing the traded items. Furthermore, on the art market, both buyers and sellers can benefit from strict confidentiality, which allows the moving of large sums of money between undisclosed parties in seemingly legal transactions.
- Shell companies are often used during the layering phase. They exist only on paper and don’t have a physical office location or any employees. However, they can own assets and participate in business transactions. This is a great environment for moving money between entities that cannot be connected to given individuals.
- Pretended or real gambling at legal casinos or other facilities. The former approach is based on using casinos as transaction layers without playing. Chips are bought with dirty money, then some time is spent on the floor without active gambling. After a while the chips are exchanged for money, which is then presented as winnings. The latter approach involves placing actual bets on all outcomes in a high probability game, e.g. betting both on red and black in at roulette.
- Transaction laundering is the processing of electronic payments by a business on behalf of another entity. This conceals the actual purpose of the payments. A known application of this strategy is the use of fake online shops to process payments for the online gambling industry. The main purpose is to facilitate transactions between online casinos and players located in jurisdictions where gambling is not allowed.