Question

1. Why is the drug trade is so profitable for illicit drug dealers?
2. What is money laundering?
3. Describe the three stages of Money Laundering
4. How would drug gangs do money laundering using legitimate Enterprises?

Answer 1

--> The illegal drug trafficking became as a global black market that is used for cultivation, manufacturing and distribution and sales of the drugs that are prohibited under the drug prohibition law.

-->Drug trades is profitable or benefitable for the illicit drug dealers as the intake of the illegal drug is present throughout the world and also there are large number of illicit drug dealers present to give these illegal drugs easily and also these drug dealers are also place movable in nature and that is the reason why it's very difficult for the local authorities to stop its popularity even with the low wages earning people who are mostly attracted towards this practice.

#MONEY LAUNDERING: It is the process of earning or making illegal money which can be gained by several illegal or criminal activities such as drug trafficking, terrorist funding and also several other crimes.

--> The following are the three steps how the money can be laundered:

1) Placement: The first and foremost step is to nvest the black money in the market by the different agents and also in banks in the form of liquid cash with formal and informal aggrement.

2) Layering: Here, the money launderes deposits fund in their abroad bank accounts in a country where the bank doesn't reveal the details of the account holder on the name of investment insttuments bond, stocks and so on...

3) Integration: The final stage is the one in which laundered assets are reintroduced as a legal money into the financial world.

--> Also the other methos is the retail business where the mainly case of the transaction is takes place such that gangs create fake transaction and receipt for there illegal money and so these as a legal profit of the business cells.