Money Laundromats

Now it's worth noting that I am less knowledgable about Anti-Money Laundering (AML). Not least because I have chosen to be so. When starting out in the fraud prevention world, I was working on card fraud, application fraud, internet banking (IB) fraud as well as AML. They all have different characteristics and content, but one major distinction is that with AML you never really know if you are right.

With card and IB fraud, customers generally want their money back and data secured. With application fraud, the bank really wants to ensure they aren't losing out (a perennial issue). With AML, you can pick something as suspicious, but you never actually know, because there's no feedback loop with enforcement, and it is the villain's money (by and large, at that point).

Placement, Layering, and Integration

Placement is getting the dodgily-sourced funds into the "system". That's bundles of cash inserted into ATMs or, famously, suitcases made to fit HSBC teller windows (https://www.globalwitness.org/en/campaigns/corruption-and-money-laundering/narco-a-lago-panama/). You could say that you are starting with Matt Damon's stools in The Martian.

Layering is taking the dodgy funds and moving it with normal funds, like Matt Damon mixing his movements with Martian dust. It's buying and selling to mask the original source. Disguising the origin of the funds.

Integration is when the money can be used for everyday purposes. So those potatoes taste pretty good.

The buckets of cash are poured into the bank's coffers, moved through corporations, quick purchases and sales, and then used to purchase the stuff villains actually want. Despite US entertainment, it probably isn't just healthcare.

Protection

The banks are required by law to identify suspicious behaviours and report them to the relevant authorities. They can't do too many or they are seen as spurious, and they can't do too few or they are inadequate. And the banks have to justify why they do what they do. They can't check with the launderer and any notification from law enforcement could take years.

It's extremely important. But a bit dull. Fraud is more fun. For me.

Crypto

I'm not going to go too far down this rabbithole today. Suffice to say that once you convert your cash into crypto, moving it fast and shuffling the deck is relatively easy. Spending it may not be. And yes, with sufficient motivation, ownership history can be traced for every fraction of a coin, but the only thing stopping crypto from being a Wild West of money-laundering is regulation, which is why it isn't very satisfying for anyone who isn't using it to buy illegal stuff. Almost like it was designed for fraud. And speculation. In The Martian example, it's like mixing poo with toxic waste and trading it for medication that might permanently end your pain. Go for it. Not for me.