As a middle-class catholic girl with her head in the books, I was fairly blind to a certain type of activity. Then I lived in Glasgow for a few years. I got to hang out with some friends who’d been around the block a few times and then some, which was extremely instructive.
I had this friend, for instance, who liked his weed. It was interesting how on holiday, wherever he was, he could find a dealer. There must be a funny handshake, or a certain look, or some secret sign. I never figured it out. Of course, he liked Amsterdam best, because you could shop at ease. Actually, it was enjoyable to see him do it: prodding, smelling, stretching nuggets of hash like some would appraise the smell of fine wine.
These friends taught me to see some things in a different light. When I got back to Brussels, I noticed the pretty boys hanging out near Anneessens. And the girls in short dresses on Louise and Chaussée de Charleroi. I watched a guy slip a bill an receive a small bag in return from some guy seemingly waiting for a bus at Ma Campagne. Just now, the people waiting in their cars next to Duden park.
This other economy, it’s absolutely recession proof. Where there’s a demand, there will be a supply, and there will be a risk premium attached to it. The product sells itself, no marketing required – or just enough to get the customer hooked.
I wonder how the money is laundered. Sure, the small-time dealer will use the cash to buy food at the supermarket, or to get some maintanance jobs done. What about middle management ? How can the bling-bling guys buy mercs and BMWs ?
The other side of the mirror, Alice.
Are you asking on a purely hypothetical basis? Or do you have large amounts of money that need laundering?
I think that it’s much like the “one red paperclip” chain of bartering. You start with a couple of grams of weed and you end up with a house. Money laundering is likely a lucrative business though! I wonder if I should write up a business plan and take it to my bank…
As for this secret look, I seem to have it. I’ve lost count of the number of times people have wanted to buy various drugs from me. Unless you want strong painkillers, I really can’t help you.
No, it’s not for my own use, I’m just curious
So you think it’s bartering ? makes sense, i suppose … although in the case of a house or a car, there’s lots of paperwork involved, and that’s what puzzles me.
I think it’s bartering for a large part indeed, not sure what they do about paperwork, but I’m guessing it’s not all that difficult to barter your way into whoever-writes-up-the-paperwork’s pockets?
Or maybe they just ignore the paperwork. Lots of people drive cars without insurance. There is a risk of getting caught, but it’s a small one, so maybe it’s worth it?
Many moons ago, I made a business plan for a vertically integrated weed operation, within strict ethical limits. Just for fun. I learned a lot about money laundering and economy basics. Turned out btw that the reward for the risk taken was really low for the majority of the chain. But I digress…
If you regularly walk into a bank with lots of 5€ bills, questions will be asked. So the first and most risky step in laundering substantial sums of small bill/coin cash often is mixing it up with legal small cash transactions. Laundries (as in clothing) are ideal for this. Al Capone knew. His trial and the publicity around it are the etymological source behind the term “money laundering”.
In our age, one can sometimes avoid the hassle of physical cash, even for criminal activities. Just get school children or hoboes to surrender their debet cards and codes, and abuse their accounts for electronic transactions.
In Belgium, using physical cash for new luxury cars or real estate is hard. Cash transactions are easier in a less stringent EU country. Spain for example has little problems with cash in real estate transactions.
I haven’t even touched on larger sums and higher management. Short summary: obfuscate the source of your money, through a tor-like chain of worldwide transactions for example. Final destination: a company under your control in a fiscal paradise like Nauru, Liechtenstein or the Marshall islands. Have this company make a loan to your 100% clean Belgian company (fiscal deductions for interest payments!). Or spend its money directly using a company credit card.
thanks Mark, very instructive
*takes notes* Carry on, carry on!