subtitle/257wV-AbKaE.srt

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<font color="white" size=".72c">As one of the most notorious gangsters
in history,</font>

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<font color="white" size=".72c">Al Capone presided over a vast
and profitable empire of organized crime.</font>

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<font color="white" size=".72c">When he was finally put on trial,</font>

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<font color="white" size=".72c">the most he could be convicted of
was tax evasion.</font>

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<font color="white" size=".72c">The nearly $100 million a year,</font>

6
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<font color="white" size=".72c">that's 1.4 billion in today's currency,</font>

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<font color="white" size=".72c">that Capone had earned from
illegal gambling,</font>

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<font color="white" size=".72c">bootlegging,</font>

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<font color="white" size=".72c">brothels,</font>

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<font color="white" size=".72c">and extortion,</font>

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<font color="white" size=".72c">would have served as evidence
of his crimes.</font>

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00:00:41,317 --> 00:00:44,985
<font color="white" size=".72c">But the money was nowhere
to be found.</font>

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<font color="white" size=".72c">Capone and his associates had hidden it
through investments in various businesses</font>

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<font color="white" size=".72c">whose ultimate ownership
couldn't be proven,</font>

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<font color="white" size=".72c">like cash-only laundromats.</font>

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<font color="white" size=".72c">In fact, those laundromats are part of
the reason for the name of this activity,</font>

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<font color="white" size=".72c">money laundering.</font>

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<font color="white" size=".72c">Money laundering came 
to be the term for any process</font>

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<font color="white" size=".72c">that cleans illegally obtained funds
of their dirty criminal origins,</font>

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<font color="white" size=".72c">allowing them to be used within
the legal economy.</font>

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00:01:16,515 --> 00:01:20,375
<font color="white" size=".72c">But Capone wasn't the first
to launder money.</font>

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<font color="white" size=".72c">In fact, this practice is about
as old as money itself.</font>

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<font color="white" size=".72c">Merchants hid their riches from
tax collecters,</font>

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00:01:27,536 --> 00:01:31,746
<font color="white" size=".72c">and pirates sought to sell their bounty
without drawing attention</font>

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<font color="white" size=".72c">to how they got it.</font>

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<font color="white" size=".72c">With the recent arrival 
of virtual currencies,</font>

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<font color="white" size=".72c">offshore banking,</font>

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<font color="white" size=".72c">the darknet,</font>

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<font color="white" size=".72c">and global markets,</font>

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<font color="white" size=".72c">schemes have become much more complex.</font>

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<font color="white" size=".72c">Although modern money laundering
methods vary greatly,</font>

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<font color="white" size=".72c">most share three basic steps:</font>

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<font color="white" size=".72c">placement,</font>

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<font color="white" size=".72c">layering,</font>

35
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<font color="white" size=".72c">and integration.</font>

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<font color="white" size=".72c">Placement is where illegally obtained
money is converted into assets</font>

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<font color="white" size=".72c">that seem legitimate.</font>

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<font color="white" size=".72c">That's often done by depositing funds
into a bank account</font>

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<font color="white" size=".72c">registered to an anonymous corporation
or a professional middleman.</font>

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<font color="white" size=".72c">This step is where criminals are often
most vulnerable to detection</font>

41
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<font color="white" size=".72c">since they introduce massive wealth
into the financial system</font>

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<font color="white" size=".72c">seemingly out of nowhere.</font>

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<font color="white" size=".72c">The second step, layering, involves
using multiple transactions</font>

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00:02:26,278 --> 00:02:30,067
<font color="white" size=".72c">to further distance the funds
from their origin.</font>

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<font color="white" size=".72c">This can take the form of transfers
between multiple accounts,</font>

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<font color="white" size=".72c">or the purchase of tradable property,</font>

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<font color="white" size=".72c">like expensive cars,</font>

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<font color="white" size=".72c">artwork,</font>

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00:02:38,303 --> 00:02:39,917
<font color="white" size=".72c">and real estate.</font>

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<font color="white" size=".72c">Casinos, where large sums of money
change hands every second,</font>

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<font color="white" size=".72c">are also popular venues for layering.</font>

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<font color="white" size=".72c">A money launderer may have their
gambling balance made available</font>

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<font color="white" size=".72c">at a casino chain's locations 
in other countries,</font>

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<font color="white" size=".72c">or work with employees
to rig games.</font>

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<font color="white" size=".72c">The last step, integration, allows clean
money to re-enter the mainstream economy</font>

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00:03:03,260 --> 00:03:06,059
<font color="white" size=".72c">and to benefit the original criminal.</font>

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<font color="white" size=".72c">They might invest it into a legal business</font>

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<font color="white" size=".72c">claiming payment by producing
fake invoices,</font>

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<font color="white" size=".72c">or even start a bogus charity,</font>

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<font color="white" size=".72c">placing themselves 
on the board of directors</font>

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<font color="white" size=".72c">with an exorbitant salary.</font>

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<font color="white" size=".72c">Money laundering itself</font>

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<font color="white" size=".72c">wasn't officially recognized as a federal
crime in the United States until 1986.</font>

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<font color="white" size=".72c">Before that point, the government
needed to prosecute a related crime,</font>

65
00:03:30,730 --> 00:03:33,680
<font color="white" size=".72c">like tax evasion.</font>

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<font color="white" size=".72c">From 1986 on, they could confiscate
wealth simply by demonstrating</font>

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<font color="white" size=".72c">that concealment had occurred,</font>

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<font color="white" size=".72c">which had a positive effect on prosecuting
major criminal operations,</font>

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<font color="white" size=".72c">like drug traffickers.</font>

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<font color="white" size=".72c">However, a legal shift has raised concerns</font>

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<font color="white" size=".72c">involving privacy 
and government surveillance.</font>

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<font color="white" size=".72c">Today, the United Nations,</font>

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<font color="white" size=".72c">national governments,</font>

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<font color="white" size=".72c">and various nonprofits</font>

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<font color="white" size=".72c">fight against money laundering,</font>

76
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<font color="white" size=".72c">yet the practice continues to play
a major role in global crime.</font>

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<font color="white" size=".72c">And the most high-profile instances
of money laundering</font>

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<font color="white" size=".72c">have involved 
not just private individuals,</font>

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<font color="white" size=".72c">but major financial institutions
and government officials.</font>

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<font color="white" size=".72c">No one knows for sure the total
amount of money</font>

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<font color="white" size=".72c">that's laundered on a yearly basis,</font>

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<font color="white" size=".72c">but some organizations estimate it to be
in the hundreds of billions of dollars.</font>