Jason S <pic@CANADASPEAKS.COM> wrote:
> Actually money laundering would mean buying stuff at too high a price.
> After all, how do you hide an income source by having transactions that
> are too small?

In general, money laundering is any form of transaction that transfers
cash outside of government-monitored channels, especially across national
boundaries.

Suppose you wanted to convert a large number of Flainian Pobble Beads to
US dollars. You buy some goods in the US at market value using US dollars,
"sell" them to yourself or your agent in Flania at well below market value,
then sell them in Flania for Pobble Beads at market value. You have now
caused a great deal of cash to "flow" across the border (from Flania to
the US, the opposite direction from the goods) without government
documentation. Governments hate this.

-- Dave Tweed

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