| 1 | |
| 00:00:11,093 --> 00:00:13,984 | |
| <font color="white" size=".72c">As one of the most notorious gangsters | |
| in history,</font> | |
| 2 | |
| 00:00:13,984 --> 00:00:19,928 | |
| <font color="white" size=".72c">Al Capone presided over a vast | |
| and profitable empire of organized crime.</font> | |
| 3 | |
| 00:00:19,928 --> 00:00:21,738 | |
| <font color="white" size=".72c">When he was finally put on trial,</font> | |
| 4 | |
| 00:00:21,738 --> 00:00:26,363 | |
| <font color="white" size=".72c">the most he could be convicted of | |
| was tax evasion.</font> | |
| 5 | |
| 00:00:26,363 --> 00:00:28,604 | |
| <font color="white" size=".72c">The nearly $100 million a year,</font> | |
| 6 | |
| 00:00:28,604 --> 00:00:32,308 | |
| <font color="white" size=".72c">that's 1.4 billion in today's currency,</font> | |
| 7 | |
| 00:00:32,308 --> 00:00:34,737 | |
| <font color="white" size=".72c">that Capone had earned from | |
| illegal gambling,</font> | |
| 8 | |
| 00:00:34,737 --> 00:00:35,898 | |
| <font color="white" size=".72c">bootlegging,</font> | |
| 9 | |
| 00:00:35,898 --> 00:00:37,045 | |
| <font color="white" size=".72c">brothels,</font> | |
| 10 | |
| 00:00:37,045 --> 00:00:38,412 | |
| <font color="white" size=".72c">and extortion,</font> | |
| 11 | |
| 00:00:38,412 --> 00:00:41,317 | |
| <font color="white" size=".72c">would have served as evidence | |
| of his crimes.</font> | |
| 12 | |
| 00:00:41,317 --> 00:00:44,985 | |
| <font color="white" size=".72c">But the money was nowhere | |
| to be found.</font> | |
| 13 | |
| 00:00:44,985 --> 00:00:49,265 | |
| <font color="white" size=".72c">Capone and his associates had hidden it | |
| through investments in various businesses</font> | |
| 14 | |
| 00:00:49,265 --> 00:00:52,736 | |
| <font color="white" size=".72c">whose ultimate ownership | |
| couldn't be proven,</font> | |
| 15 | |
| 00:00:52,736 --> 00:00:55,474 | |
| <font color="white" size=".72c">like cash-only laundromats.</font> | |
| 16 | |
| 00:00:55,474 --> 00:01:00,605 | |
| <font color="white" size=".72c">In fact, those laundromats are part of | |
| the reason for the name of this activity,</font> | |
| 17 | |
| 00:01:00,605 --> 00:01:02,995 | |
| <font color="white" size=".72c">money laundering.</font> | |
| 18 | |
| 00:01:02,995 --> 00:01:06,235 | |
| <font color="white" size=".72c">Money laundering came | |
| to be the term for any process</font> | |
| 19 | |
| 00:01:06,235 --> 00:01:12,185 | |
| <font color="white" size=".72c">that cleans illegally obtained funds | |
| of their dirty criminal origins,</font> | |
| 20 | |
| 00:01:12,185 --> 00:01:16,515 | |
| <font color="white" size=".72c">allowing them to be used within | |
| the legal economy.</font> | |
| 21 | |
| 00:01:16,515 --> 00:01:20,375 | |
| <font color="white" size=".72c">But Capone wasn't the first | |
| to launder money.</font> | |
| 22 | |
| 00:01:20,375 --> 00:01:24,606 | |
| <font color="white" size=".72c">In fact, this practice is about | |
| as old as money itself.</font> | |
| 23 | |
| 00:01:24,606 --> 00:01:27,536 | |
| <font color="white" size=".72c">Merchants hid their riches from | |
| tax collecters,</font> | |
| 24 | |
| 00:01:27,536 --> 00:01:31,746 | |
| <font color="white" size=".72c">and pirates sought to sell their bounty | |
| without drawing attention</font> | |
| 25 | |
| 00:01:31,746 --> 00:01:33,836 | |
| <font color="white" size=".72c">to how they got it.</font> | |
| 26 | |
| 00:01:33,836 --> 00:01:36,096 | |
| <font color="white" size=".72c">With the recent arrival | |
| of virtual currencies,</font> | |
| 27 | |
| 00:01:36,096 --> 00:01:37,765 | |
| <font color="white" size=".72c">offshore banking,</font> | |
| 28 | |
| 00:01:37,765 --> 00:01:39,467 | |
| <font color="white" size=".72c">the darknet,</font> | |
| 29 | |
| 00:01:39,467 --> 00:01:41,136 | |
| <font color="white" size=".72c">and global markets,</font> | |
| 30 | |
| 00:01:41,136 --> 00:01:44,607 | |
| <font color="white" size=".72c">schemes have become much more complex.</font> | |
| 31 | |
| 00:01:44,607 --> 00:01:47,876 | |
| <font color="white" size=".72c">Although modern money laundering | |
| methods vary greatly,</font> | |
| 32 | |
| 00:01:47,876 --> 00:01:50,836 | |
| <font color="white" size=".72c">most share three basic steps:</font> | |
| 33 | |
| 00:01:50,836 --> 00:01:51,948 | |
| <font color="white" size=".72c">placement,</font> | |
| 34 | |
| 00:01:51,948 --> 00:01:53,138 | |
| <font color="white" size=".72c">layering,</font> | |
| 35 | |
| 00:01:53,138 --> 00:01:55,476 | |
| <font color="white" size=".72c">and integration.</font> | |
| 36 | |
| 00:01:55,476 --> 00:02:00,337 | |
| <font color="white" size=".72c">Placement is where illegally obtained | |
| money is converted into assets</font> | |
| 37 | |
| 00:02:00,337 --> 00:02:02,366 | |
| <font color="white" size=".72c">that seem legitimate.</font> | |
| 38 | |
| 00:02:02,366 --> 00:02:05,656 | |
| <font color="white" size=".72c">That's often done by depositing funds | |
| into a bank account</font> | |
| 39 | |
| 00:02:05,656 --> 00:02:11,737 | |
| <font color="white" size=".72c">registered to an anonymous corporation | |
| or a professional middleman.</font> | |
| 40 | |
| 00:02:11,737 --> 00:02:15,400 | |
| <font color="white" size=".72c">This step is where criminals are often | |
| most vulnerable to detection</font> | |
| 41 | |
| 00:02:15,400 --> 00:02:18,966 | |
| <font color="white" size=".72c">since they introduce massive wealth | |
| into the financial system</font> | |
| 42 | |
| 00:02:18,966 --> 00:02:21,899 | |
| <font color="white" size=".72c">seemingly out of nowhere.</font> | |
| 43 | |
| 00:02:21,899 --> 00:02:26,278 | |
| <font color="white" size=".72c">The second step, layering, involves | |
| using multiple transactions</font> | |
| 44 | |
| 00:02:26,278 --> 00:02:30,067 | |
| <font color="white" size=".72c">to further distance the funds | |
| from their origin.</font> | |
| 45 | |
| 00:02:30,067 --> 00:02:33,127 | |
| <font color="white" size=".72c">This can take the form of transfers | |
| between multiple accounts,</font> | |
| 46 | |
| 00:02:33,127 --> 00:02:35,758 | |
| <font color="white" size=".72c">or the purchase of tradable property,</font> | |
| 47 | |
| 00:02:35,758 --> 00:02:37,428 | |
| <font color="white" size=".72c">like expensive cars,</font> | |
| 48 | |
| 00:02:37,428 --> 00:02:38,303 | |
| <font color="white" size=".72c">artwork,</font> | |
| 49 | |
| 00:02:38,303 --> 00:02:39,917 | |
| <font color="white" size=".72c">and real estate.</font> | |
| 50 | |
| 00:02:39,917 --> 00:02:43,780 | |
| <font color="white" size=".72c">Casinos, where large sums of money | |
| change hands every second,</font> | |
| 51 | |
| 00:02:43,780 --> 00:02:47,208 | |
| <font color="white" size=".72c">are also popular venues for layering.</font> | |
| 52 | |
| 00:02:47,208 --> 00:02:50,609 | |
| <font color="white" size=".72c">A money launderer may have their | |
| gambling balance made available</font> | |
| 53 | |
| 00:02:50,609 --> 00:02:53,960 | |
| <font color="white" size=".72c">at a casino chain's locations | |
| in other countries,</font> | |
| 54 | |
| 00:02:53,960 --> 00:02:57,709 | |
| <font color="white" size=".72c">or work with employees | |
| to rig games.</font> | |
| 55 | |
| 00:02:57,709 --> 00:03:03,260 | |
| <font color="white" size=".72c">The last step, integration, allows clean | |
| money to re-enter the mainstream economy</font> | |
| 56 | |
| 00:03:03,260 --> 00:03:06,059 | |
| <font color="white" size=".72c">and to benefit the original criminal.</font> | |
| 57 | |
| 00:03:06,059 --> 00:03:08,669 | |
| <font color="white" size=".72c">They might invest it into a legal business</font> | |
| 58 | |
| 00:03:08,669 --> 00:03:11,309 | |
| <font color="white" size=".72c">claiming payment by producing | |
| fake invoices,</font> | |
| 59 | |
| 00:03:11,309 --> 00:03:13,950 | |
| <font color="white" size=".72c">or even start a bogus charity,</font> | |
| 60 | |
| 00:03:13,950 --> 00:03:16,490 | |
| <font color="white" size=".72c">placing themselves | |
| on the board of directors</font> | |
| 61 | |
| 00:03:16,490 --> 00:03:19,370 | |
| <font color="white" size=".72c">with an exorbitant salary.</font> | |
| 62 | |
| 00:03:19,370 --> 00:03:20,689 | |
| <font color="white" size=".72c">Money laundering itself</font> | |
| 63 | |
| 00:03:20,689 --> 00:03:26,950 | |
| <font color="white" size=".72c">wasn't officially recognized as a federal | |
| crime in the United States until 1986.</font> | |
| 64 | |
| 00:03:26,950 --> 00:03:30,730 | |
| <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> | |
| 66 | |
| 00:03:33,680 --> 00:03:37,840 | |
| <font color="white" size=".72c">From 1986 on, they could confiscate | |
| wealth simply by demonstrating</font> | |
| 67 | |
| 00:03:37,840 --> 00:03:40,610 | |
| <font color="white" size=".72c">that concealment had occurred,</font> | |
| 68 | |
| 00:03:40,610 --> 00:03:44,570 | |
| <font color="white" size=".72c">which had a positive effect on prosecuting | |
| major criminal operations,</font> | |
| 69 | |
| 00:03:44,570 --> 00:03:46,880 | |
| <font color="white" size=".72c">like drug traffickers.</font> | |
| 70 | |
| 00:03:46,880 --> 00:03:49,901 | |
| <font color="white" size=".72c">However, a legal shift has raised concerns</font> | |
| 71 | |
| 00:03:49,901 --> 00:03:53,930 | |
| <font color="white" size=".72c">involving privacy | |
| and government surveillance.</font> | |
| 72 | |
| 00:03:53,930 --> 00:03:55,852 | |
| <font color="white" size=".72c">Today, the United Nations,</font> | |
| 73 | |
| 00:03:55,852 --> 00:03:57,411 | |
| <font color="white" size=".72c">national governments,</font> | |
| 74 | |
| 00:03:57,411 --> 00:03:58,992 | |
| <font color="white" size=".72c">and various nonprofits</font> | |
| 75 | |
| 00:03:58,992 --> 00:04:00,932 | |
| <font color="white" size=".72c">fight against money laundering,</font> | |
| 76 | |
| 00:04:00,932 --> 00:04:06,031 | |
| <font color="white" size=".72c">yet the practice continues to play | |
| a major role in global crime.</font> | |
| 77 | |
| 00:04:06,031 --> 00:04:08,816 | |
| <font color="white" size=".72c">And the most high-profile instances | |
| of money laundering</font> | |
| 78 | |
| 00:04:08,816 --> 00:04:11,803 | |
| <font color="white" size=".72c">have involved | |
| not just private individuals,</font> | |
| 79 | |
| 00:04:11,803 --> 00:04:17,207 | |
| <font color="white" size=".72c">but major financial institutions | |
| and government officials.</font> | |
| 80 | |
| 00:04:17,207 --> 00:04:20,101 | |
| <font color="white" size=".72c">No one knows for sure the total | |
| amount of money</font> | |
| 81 | |
| 00:04:20,101 --> 00:04:22,832 | |
| <font color="white" size=".72c">that's laundered on a yearly basis,</font> | |
| 82 | |
| 00:04:22,832 --> 00:04:29,736 | |
| <font color="white" size=".72c">but some organizations estimate it to be | |
| in the hundreds of billions of dollars.</font> | |