Wat is money laundering? wat r kickbacks?

Question

Wat is money laundering? wat r kickbacks?

Answer 1

Get an education. Read a book. This is information that everyone should have.

Answer 2

Money laundering is the process by which "dirty money", that is,

monies received from in illegal transaction, is replaced by "clean money"

(received from a legal transaction).

For instance, if person A steals money from B, that money is "dirty".

If he then turns around and buys something and then re-sells it,

the proceeds from the sale would be legal and he could then spend

it freely knowing it would be very difficult to trace back to the original

theft.

Note that whomever he bought the thing from is now holding the

dirty money, probably unknowingly.

However, there are people who knowingly engage in such transactions

and are known as money launderers.  The schemes can get quite

complicated, involving over-seas banking, charity organizations,

blind auctions, etc.

Also note that some definitions would consider the above simple case

of laundering as too simple to even fall into the definition.  Many

people would require there to be an intervening apparently legal

but actually illicit transaction.  For instance, person "A" could

then turn around and "B" a service from a third party (launderer)

which he then received a partial credit - note the "partial", as that

is the launder's credit.

It would all be so very entertaining if it wasn't so illegal.

A "Kickback" refers to compensation that a person of power is

given by someone who wants him to perform in a way that

deviates from the way that the public expects.

For instance, if I pay the person inspecting my wiring more

money than his usual fee so that he passes it regardless of

whether or not it passes code, that would be a "kickback".

Politicians who take money to vote in particular ways are

considered "corrupt" because they take kickbacks.  However,

corruption is now usually complex enough to not involve

anything so tasteless as money.  It usually comes in the

form of gifts, trips in the form of "fact finding missions", etc.

The concept here is simple:  A kickback is compensation for

not performing your job in the way that your hiring agency

(e.g. the public in the case of elected officials) have chartered

you to.

Answer 3

Money laundering is hiding the true source of money (i.e. having a front company saying it earned 10,000 dollars, when it really only earned 5,000 dollars, with the other 5,000 being earned illegally).  It makes illegally earned money look legal.

Kickbacks are usually considered as money given to someone in order to ensure something requested or implied happens go the giver.  Kinda like when special groups give money to government campaigns with the understanding that if the official is elected he'll remember what the special group wanted when it comes up.

Hope that all helps.