How Cartels Make Dirty Money Clean

How exactly did one of the world’s biggest banks make a deal with the devil? HSBC laundered millions of dollars for cartels? But why? How did they get into that business? Find out this insane story of corruption and greed in this video!

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Here’s how one of the biggest banks in the world, HSBC, started laundering Mexican Cartel money! Wait until you hear about the extremely simple trick to hide everything!

Move That Dough
Mexican Cartels are essentially huge businesses. Huge, illegal businesses that generate MASSIVE amounts of income. We’re essentially talking about billions of dollars a year. And things aren’t slowing down for these cartels. In fact, business is growing and it’s booming! Record-high production trends were noticed by the World Health Organization in 2018, meaning that profits in recent years have been even bigger! It totally makes sense because the population keeps growing. And if the percentage of people who’re customers stay the same, that means the revenue grows. So okay, we know that the business Mexican Cartels are doing is illegal, and it’s big. So how do they actually move all that money? If you think about it, their business isn’t exactly an online business. Making the money is the relatively easy part for the cartels since they can control that themselves. Almost all of the money that they get is street money, assuming that they’re controlling ALL the operation from top to bottom. But moving the cash and getting it into bank accounts is where things get tough. The cartels have to deal with a lot of money aren’t a hundred dollars bills. For example, a million bucks alone in $5 dollar bills would weigh well over FOUR HUNDRED pounds. Moving the money physically into Mexico alone is a huge pain. While many small cartels take the risk of smuggling cash back to Mexico in bulk, more sophisticated cartels don’t do that. The biggest cartels have BILLIONS of dollars they have to deal with. Here’s how they cleaned the money.

Wash Method #1
We’re going to give you guys a crash course on money laundering. There are plenty of different ways to launder money, but they essentially boil down to two ways. The first method is laundering money through a bank. The cartel will first deposit their money at a bank. Then, a process known as "layering" begins. The cartel will send the money through various wire transfers to a lot of different accounts. That means a lot of transfers to a lot of different names in a lot of different countries. The cartel will hire a veritable army of people to deposit small amounts of cash in banks all over the country, in cities large and small. They’ll vary the amount of their deposits and withdrawals in order to make the paper-trail way harder to follow in case anyone decides to check on anything. A lot of these people get caught anyways, but to the cartels, that's simply the cost of doing business. Once the money is back in the money system, it can now be used. But the biggest problem with this method is because of the 10,000 dollar limit. You probably know that the IRS requires a bank to report any deposits over 10 thousand dollars. With billions of dollars to launder, you can imagine how tedious that amount of money can get! It’s almost extremely tedious unless you can get the bank in on it!

Wash Method #2
The second method is laundering the money through what’s called trade based laundering. This was a technique El Chapo’s cartel developed into an art form! The simplest way to do this is by buying easily sold high end items such as say, a Rolex or a gold bar, from a legitimate company in the US. Anything that’s more like a commodity, the better. They then would sell the item back in Mexico for pesos. The more sophisticated method is actually owning legitimate cash based businesses and laundering the money that way. A really quick example would be a restaurant. A lot of restaurants involved in money laundering are actually legitimate businesses with real staff, a real menu, and real profits. The dirty money will be mixed in with the clean money. The dirty money is essentially explained with fake profits. You can't launder money through a business using anything that’s traceable. So cartels are looking for a business with a lot of cash turnover. Cash isn’t traceable, so any cash-intensive businesses are used to launder money. Laundromats, used car dealerships, and restaurants are some of the most popular businesses.

Видео How Cartels Make Dirty Money Clean канала Pablito's Way