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Legend has it the term moneya laundering dates back to the time of Al Capone the notorious Chicago gangsters said to have bought up a string of lawrs in the 1920s to disguise his illicit earnings in reality the practice has indeed existed for decades but the term only came into official use in the 1980s criminals earning huge sums of money from drug trafficking weapon smuggling and extortion need to show a legitimate source for their income in order to dodge the police and tax authorities so they Embark upon a so-called laundering process made up of three stages the first filtering Black Market deals are often paid in cash which is divided up into smaller sums to avoid any large and conspicuous Bank deposits each stash is given to a frontman the money can be banked gambled away on s lotteries and sports bets or invested in precious metals and luxury goods the second step is all about camouflage the money has to exchange hands enough times for its origin to become untraceable of
