There are multiple ways to achieve the three steps above. A traditional method has been to create fake receipts for cash-based services in shops, restaurants, and other businesses. An individual or organization uses the businesses as fronts for money laundering. Criminals create counterfeit receipts and pay for them with “dirty” physical cash, turning them into legitimate income. This inflow is then mixed in with genuine transactions to make it difficult to distinguish between the two.

However, it’s now common for illegitimate funds to be digital rather than physical cash. This difference changes the methods used to launder money. There are now even more options to hide and wash “dirty” money than before. For example, you can directly transfer money without the use of a bank. Payment networks like Paypal or Venmo provide another layer for launderers to use and regulators to monitor.

Another favored method is to use online gambling sites. Criminals deposit the money they want to launder in an online gambling account. They then proceed to place bets to make the account look legitimate. Finally, they remove their funds and end up with clean money. Typically this is done with multiple accounts as not to arouse suspicion. A single account with large amounts of funds might flag up an AML check.