Automatic Transfer Of Funds

  

Categories: Banking

This term describes a standing banking arrangement where funds from one account are regularly transferred to another account.

This could represent an automatic transfer of $5 from your checking account to your savings account every Friday. Or it could be a $20 allowance transferred from your mom’s checking account to your checking account every two weeks. Or it could be the $1.2 million transferred every pay period into the payroll account of a medium-sized industrial firm.

Also known as ATS, this arrangement is regular and periodic.

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Finance: What is Money Laundering?2 Views

00:00

Finance allah shmoop what is money laundering Whoa whoa whoa

00:08

This guy needs to be taxed and legitimized And after

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taxing he gets out of the wash and has shrunk

00:15

to a ten dollar bill But at least he can

00:17

go out in public now Ok Ok So that's not

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sort of money laundering The government's worried about money laundering

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means trying to hide money you make illegally by setting

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up fake businesses running the money through those businesses as

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if while they're actually legitimate riel things real sales happen

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And then to continue the money laundering story you show

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some profits on those businesses for which yes you then

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get taxed But then the money is quote legitimized unquote

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in the eyes of the government so that you can

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freely spend it on clothes and jewelry And you know

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maserati's that go one eighty five The idea is that

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you create fake companies when you launder money fake accounts

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fake customers So it looks like the money is coming

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from a legal normal business when it's really coming from

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shady deals like a drug dealing and stuff like that

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for better or worse the movie theater business was a

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key tool in laundering money for the mob in the

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early twentieth century and that a movie could be licensed

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from a studio for a fixed fee of say a

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hundred bucks a night and then magically even though the

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movie was eight years old and in black and white

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that movie theater sold out three shows a night every

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night for a month generating tens of thousands of dollars

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in revenues which would then launder bootlegging alcohol e kind

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of money back into the normal system so that the

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theater owner could pay for you know private school and

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orthodontia and all that stuff for his kids and leave

01:49

a substantial tip for their surprisingly well dressed garbage collector

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And if you've seen breaking bad while you know that

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walter white mastered money laundering that carwash magically had huh

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Hundreds of cars go through it every day even though

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in reality it only had a few dozen but the

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government wasn't counting cars It had no idea how bigger

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little the carwash was and frankly it well didn't really

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care as long as it was able to tax the

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money coming in from walter's high octane blue meth so

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the lesson Money laundering is bad Walter white isn't a

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good role model and always remember to separate your lights 00:02:25.775 --> [endTime] and darks when washing a load

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