TromboneAl
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 30, 2006
- Messages
- 12,880
I understand the classic type of money laundering in which, say, a drug dealer starts a legitimate cash-intense business, and adds his illegal cash to that business, changing the money from dirty to clean.
But here are my questions about another type of money laundering:
Create an offshore company to accept foreign [illicit] money and use that company to purchase American property. Then take a loan out against that property. The loan enables the person to have full access to the money without having paid taxes or disclosed the source of the income.
So, you take out a loan, but you still have to pay it back, right? And how can you use the property as collateral without revealing that you own it?
But here are my questions about another type of money laundering:
Create an offshore company to accept foreign [illicit] money and use that company to purchase American property. Then take a loan out against that property. The loan enables the person to have full access to the money without having paid taxes or disclosed the source of the income.
So, you take out a loan, but you still have to pay it back, right? And how can you use the property as collateral without revealing that you own it?