When you have a lot of physical money, it starts to turn into a liability due to the amount of storage required and the fact that it could get taken away at any moment. If you find yourself in a situation like this, it’s time to put your money into the financial system, as legitimate income so that it remains protected.
We highly recommend to launder your money after you exit the drug business because it is a tedious task. It may take several years to clean all your money. If you choose to launder your money while you operate on the streets, it will take more resources and men to make it happen, often times adding complications to your running operations. Treat money laundering as a separate business in itself. Also consider the types of money.
If you have over a $100,000, it’s time to begin laundering your money, otherwise, the bills will keep stacking up. There’s a lot of pressure with holding that much cash and it is your job to make your life easier. Many dealers launder their money using their personal bank accounts but that is a big no-no. There are more sophisticated methods which are easy to use to put your money into the financial system.
Whenever you launder money, always use nominees. Nominees are the people who you will put the name of the asset under. This could be a person that is close to you or it could even be your lawyer. Money laundering is a totally different business so it should be treated as such. Laundering money takes a lot of people and a sophisticated network if you’re raking in a lot of cash.
Here are some ways in which you could launder small to medium amounts of money. The rest of the techniques will be listed in the upcoming book.
- Register a business and claim your revenue through them. It’s very easy to set up a business nowadays, all you need to do is to get someone to register it in your desired state. Choose a business that doesn’t require a license or a permit. For now, you could register it in your local state. It could even be a sole-proprietorship, something simple. Choose a simple business such as landscaping or some kind of online business.
- Pump your illegal funds in the disguise of a paying customer. The amount of tax that you have to pay is your cost of laundering the money. Landscaping businesses are very easy because customers pay monthly, you can deposit your money using nice round numbers. Invoices are also easy to create too. Just make sure that you don’t over-exaggerate your income, keep the numbers as consistent as possible. Year over year sales should not go over $100,000 to avoid suspicion. That is why you will need several businesses if you are making more than $100,000. All of the funds will go in the bank’s business account, legit.
- This is the part where we mix up the funds even more to make the money seem more legit. Have employees or phantom employees which you can pay a salary to. Pay them some money for using their identity. The cost of laundering the money is their pay-off and the taxes which are deducted from the pay check. The pay check can be deposited into their bank account and put into an investment such as a GIC to be taken out later.
- You can also purchase assets for your business. You can choose to buy them at 100% of the price and then flip them to another business for 80-90% of the original price. The difference would be your cost of laundering the money.
- You can choose to sell your business to another party. The transfer fees and taxes for selling the business are the cost of laundering the money. We like having businesses which you don’t need to lease any locations because you won’t have to go through the hassle of transferring the lease. A home-based business is best. Just make sure that the company is making actual legitimate revenue if you choose to do this.
- Car Insurance: If you have several cars, put them under someone else’s name and insure them. Car insurance terms are always 1 year. Get the maximum coverage for them. After 2 or 3 months of insuring the vehicle, cancel the insurance and get the rest of the money back. If you have 10 cars, estimating that each car’s insurance is $1200, if you cash out after 2 months, you will have $10,000 of clean funds.
The cost of laundering money should never exceed 30%, otherwise you’re paying too much. The industry standard to aim for is roughly 20% if you get someone else to do it for you. Just remember to diversify how you launder your money and to not make it too obvious.
Laundering money doesn’t happen just like that, it’s a steady process. It’s like lifting weights in the gym, you have to work everyday to see the results. It takes some people years to clean their money, how fast you do it depends on your outlets for it. Having a business to launder your money will also help you in turning legit. As you get the hang of it, we believe that you will be able to run a legit company, thus turning legit.