What is the difference between money laundering and other financial crimes?

Money laundering is a type of financial crime that is used to disguise the true source of illegally-obtained money. It involves the use of funds from illegal activities to purchase or invest in legal activities. Other financial crimes, such as embezzlement, fraud, and tax evasion, involve the illegal transfer of money or property for personal gain. Money laundering generally involves three steps. First, the criminal attempts to hide the true source of the illicit funds. This can be done by breaking up large sums of money into smaller amounts, or by transferring the money between multiple accounts. The second step is to move the money around through a series of transactions so that it appears to have come from a legitimate source. Finally, the money is “cleaned” by moving the funds into new, untraceable accounts or investments. In Washington, money laundering is a Class B felony with a maximum sentence of 10 years in prison and a maximum fine of $25,000. Other financial crimes, such as embezzlement, fraud, and tax evasion, vary in terms of severity and associated punishments. For example, embezzlement is generally a Class C felony and carries a maximum sentence of five years in prison and a maximum fine of $10,000.

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What is the difference between money laundering and other financial crimes?

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