Let’s say you have a little spare cash, you would prefer to keep it out of the grubby hands of various tax authorities. Or you don’t want your spouse to know about it. Or your kids.
Fear not. With a little financial detergent, your dirty money can be rendered more or less untraceable.
It must be said that the flow of illicit capital is distorting the global economy, draining wealth from emerging nations and inflating the cost of assets in the developed world. Neither of which seems to deter people from doing it every day.
LESSON 1: THE PEOPLE’S REPUBLIC OF OFFSHORE
LESSON 2: LITTLE BLUE MEN
LESSON 3: GOING CORPORATE
LESSON 4: SAY IT WITH DIAMONDS
LESSON 5: TROUBLE AHEAD?
In 2014, the Chinese overtook the Russians as the largest buyers of New York City condos. Other laundered money is used to purchase London mansions, yachts, securities, art, and luxury estates around the world.
These funds also dominate stock and bond markets. By 2012, tax havens held about 29% of the total foreign investment (corporate, bonds, stocks) in the US. By comparison, China held only 7% of assets.