The Economics of Everyday Things 60. Money Laundering
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Aug 19, 2024 
Patrick McKenzie, a fraud prevention expert, shares insights on modern money laundering techniques, highlighting the creative ways criminals disguise illegal funds. Kerry Myers, an associate professor and former FBI special agent, discusses the evolution of money laundering from Prohibition-era tactics to today’s complex schemes. They delve into law enforcement's challenges in tracing illicit activities and the unintentional role of everyday businesses in facilitating these crimes. The blend of history and real-world examples makes for a compelling discussion.
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Cash Businesses
- Cash-heavy businesses like bars, taxi companies, or vending machine businesses were traditionally favored for money laundering.
- Their cash-based nature made it easier to mix illicit funds with legitimate earnings.
Magic Cards and Laundering
- Money launderers use valuable, easily transportable goods like rare Magic: The Gathering cards.
- These cards can be bought with illicit funds and sold for clean money or cryptocurrency.
Shell Corporation Layering
- Kerry Myers describes a complex layering scheme using shell corporations in multiple countries.
- This makes it difficult for investigators to trace the money's origin.