Types of Businesses Most Often Investigated for Money Laundering

 Posted on May 24, 2024 in Money Laundering

Some types of businesses are more commonly investigated for money laundering than others. This is simply because it is easier to launder money through certain types of businesses, especially those where cash is frequently used. Your business might be placed under investigation on suspicion of money laundering if you report unusually high cash profits for the type of company you run. While you may be running a perfectly legitimate business that just happens to have a lot of customers who pay cash, it is best to speak with a Dallas, TX white collar crimes attorney as soon as you become aware of the investigation. Even if you are unaware of any illegal activity, your business partners or employees might be.

Which Types of Businesses Are Most Likely to be Suspected of Money Laundering? 

A few types of businesses that are commonly used for money laundering - and more likely to be investigated on suspicion of money laundering - include:

• Casinos - It is normally the people who come in to gamble who are doing the laundering. Gamblers will come in with a large amount of dirty cash, gamble a little, cash out their chips, and walk away with money that looks legitimate. Casinos might come under investigation if law enforcement believes that those running the casino are aware of and complicit in their customers’ activities. 
• Strip clubs - Large amounts of cash are often used in strip clubs. Many customers prefer to use cash even to buy drinks at the bar and usually must use cash to tip dancers or purchase private entertainment. This makes it easy for a strip club owner to over-report cash earnings from drink sales and fees collected from dancers. 
• Real estate “flipping” businesses - These companies may purchase real estate using cash, make minimal improvements, and then quickly sell the property. The money used to buy the real estate is dirty. After they sell the property, the money appears clean. 
• Laundromats - Since cash is universally used in laundromats, it is easy for laundromats to report that they collected far more money from their machines than they actually did. 
• Car washes - Car washes are also frequently used because they are commonly cash-based. 
• Restaurants - Restaurants that are laundering money often only accept cash to make it easy for them to over-report their earnings. 
• Cryptocurrency trading - Businesses that deal in cryptocurrency can be hard for the government to monitor due to the complex nature of cryptocurrency. 

Companies that are laundering money are often caught when they report unusually high earnings for their location and type of business. For example, if Carwash A reports twice the earnings of Carwash B, but both carwashes are located in the same neighborhood and offer comparable services, Carwash A may be investigated.

Contact a Dallas County, TX Federal Money Laundering Lawyer 

Spencer & Associates represents business owners who have been accused of money laundering. Our experienced Dallas, TX federal money laundering attorneys have successfully handled many high-profile fraud cases and will offer you the same level of service. Contact us at 214-385-8500 for a complimentary consultation.