money laundering. KNOW YOUR LAWS

The popular conception of money laundering includes channeling illegally gained money into legal and legitimate businesses so that the money can be used and invested openly, freely and with apparent legality.

While this scenario correctly describes a form of money laundering, many money laundering cases are quite different. Frequently, money laundering charges stem from activity that unintentionally leads to charges. For example, if a person makes a profit from what is determined to be an illegal source such as gambling or from a transaction later determined to be fraudulent in some way and invests the proceeds in a bank, the stock market or anywhere else, the person has committed money laundering. Or if the person takes those profits and purchases something (i.e., a vehicle) or even makes a house payment, that is money laundering.
Money laundering charges are often leveled in conjunction with other charges, such as charges involving drugs, racketeering, gambling and fraud, including healthcare and tax fraud. Once charged with money laundering, bank accounts, cars and other assets can be frozen and/or seized, even if the alleged illegal income source was an accidental business error that is declared fraudulent. If tainted funds are "co-mingled" with other assets, like bank accounts, the entire bank account can be seized even if 99 percent of the funds in the account have no connection to the money laundering charge.