There's a myth that Al Capone coined the term 'money laundering,' or the process of disguising the criminal origins of illegally obtained money so it can be used without detection.

Meet a government agent who laundered millions of dollars for Pablo Escobar.

Money laundering is a three-step process: placement, layering, and integration

"Placement" occurs when dirty money is introduced into the financial system. Then "layering" happens when the money is moved around to disguise where it actually came from. Finally, the money is placed in other assets or investments in a step called integration.

Al Capone's business structure kept him from ever getting charged for bootlegging.

The United States had a washing machine that cleaned dirty dollar bills

In the early 1900s, the US Treasury Department had a machine that washed and ironed old, soiled paper bills. The machine helped the Treasury save money by decreasing printing costs for new dollar bills, but had nothing to do with the modern understanding of money laundering.

Money 'mules' don't always know they are laundering money

Money mules are anyone who receives money in a laundering scheme and then sends it forward, either to another company or to a financial institution. While some money mules—often called smurfs—actually work with criminals laundering money, getting someone to receive and then send money has become a popular scam.

A Chinese-Mexican alliance marked one of history's largest nonviolent money laundering schemes

In 2019, Chinese-American gangster Xizhi Li was arrested for an expansive money laundering scheme spanning four continents. Li reportedly laundered hundreds of millions of dollars for cartel members, wealthy Chinese Americans, and other foreign countries.

Purchasing art is a common money laundering technique

Art is easy to transport internationally, susceptible to price inflation, and usually paid for with cash, making it a frequently used money laundering tactic. Additionally, loose regulations surrounding art transactions allow buyers to remain anonymous, adding an additional layer of ease for people trying to launder money.

How tax laws helped the federal government catch mob bosses during Prohibition

The IRS arrested top mob bosses during Prohibition after the Supreme Court ruled illegally-made income could be taxed. The IRS's biggest catch was Al Capone, who was charged with tax evasion and sentenced to 11 years in prison. But Capone wasn't the only bootlegger the IRS nabbed for tax evasion during this era.

Lack of regulation makes cryptocurrency a hotbed for money laundering.

More than $2.6B has been laundered through US real estate in the past 20 years

All cash real estate transactions don't require extensive background and identity checks, creating a loophole for criminals who would otherwise be flagged for suspicious behavior to clean large amounts of money with one purchase. Real estate prices are easily manipulated and can be used to generate more income by renting the space, making it an attractive and common tool for money laundering.

Anti-money laundering laws forcing banks to report data have become important foreign policy tools

Since the Bank Secrecy Act of 1970, which required banks to report transactions exceeding $10K and keep records on customers, anti-money laundering laws have become an important proxy for American foreign policy initiatives. Increased regulation via financial institutions helps curb drug and human trafficking, as well as destabilize the financial infrastructure for terrorist organizations.

A former financial crime investigator says Hollywood has done a pretty good job depicting money laundering

A former financial crime investigator says "Narcos" and "Ozark" have pretty realistic scenes, but other well-known financial crime depictions like "The Wolf of Wall Street" are off base. Some of the main inconsistencies include overly dramatic gunfights and unrealistic cash amounts.

Credit reporting's earliest origins in the 1700s resemble a game of telephone, with rural merchants asking their most esteemed neighbors to vouch for them to sleuthing urban lenders.

Largely considered to be the inspiration for Gordon Gekko in the movie 'Wall Street,' Ivan Boesky was one of the most high-profile white-collar criminals and faced a $100M fine for insider trading in 1986.

Organized crime, including money laundering, drains $1.96T from the global economy annually

Overall, financial crime drains $3T from the global economy, with organized crime making up nearly $2T of that total. Drug trafficking is the second-largest drain on the global economy.

Get to know the five families that ran the NYC mafia

In the 1900s, there were five families in New York City who dominated the crime scene. These five families organized expansive criminal operations—ranging from prostitution and price extortion to money laundering—and have inspired stories like "The Godfather."

Often dubbed the 'king of bank robbers,' George Leonidas Leslie stole an estimated $7M (equivalent to $200M today) and charged other criminals a $20K fee to evaluate their heist plans

Leslie studied architecture and used blueprints of safes and banks to execute meticulously planned bank heists across the Northeast between 1869 and 1878. Although Leslie was an infamous bank robber by night, he posed as a member of high society by day, providing critical intel on the institutions he'd rob and helping conceal his crimes. Months before his largest planned heist, where he planned to turn on his gang, Leslie's body mysteriously washed up along the Hudson River. His killer remains a mystery.

London bankers created the first clearinghouse to process checks in 1770

Until that time, each banker was required to bring that day's checks to every other bank for settlement. Perhaps understandably, the first place bankers opted to gather to clear and settle checks was a tavern known as the Five Bells. The innovation gave rise to what would become clearinghouses, key institutions that facilitate payments.

The Medicis of Italy innovated 'bills of exchange,' precursors to checks

At the time, lending money for interest (also known as usury) was banned in much of the Christian world. The enterprising Medicis developed bills of exchange to allow merchants to promise payment without cash or coin (with some discrete means of earning interest woven in). Learn more about how this family laid the foundation for modern banking.

Benjamin Franklin advocated for the use of paper money and even engineered some key anticounterfeiting techniques used today.

The Bank of America began as the Bank of Italy—one of the first US banks for the middle class—and loaned money to individuals to help rebuild after the 1906 San Francisco earthquake.

The word 'mortgage' comes from medieval French, meaning 'death contract.'

NBA referee Tim Donaghy was paid roughly $300K to fix games

Donaghy said he struggled with a gambling addiction, causing him to risk so much. In this interview, he explains the story of his scandal, and how the mob led to his eventual arrest.

Thomas and Anne Rogers were famous counterfeiters in 17th-century England

The pair used a practice called “coin clipping,” shaving the edges off silver coins to decrease their weight before sending them back into circulation. When banknotes rather than coins gained popularity, counterfeiting methods evolved—in the 1700s, an early banknote counterfeiter named Mary Butterworth created counterfeit paper money using starched cloth and a hot iron to transfer the pattern of a banknote onto paper.

Modern payday lending came about in the late 1990s

In the early 1900s, unlicensed "salary lenders" used to give consumers one-week loans at annualized percentage rates of more than 100%. But wage garnishment and financially abusive practices led some states to create special licenses for lenders and implement rate caps to protect consumers. In the 1990s, a series of deregulations in various states opened the door for the modern payday lending industry to take off.

The term ‘mortgage’ was born out of the French word for ‘dead pledge’

Borrowing money to buy a house has been a global practice since the Romans in the fifth century BCE. But before the mortgage, there was the “dead pledge,” which labeled the property as “dead” to the borrower until they paid off their loan to the lender.

The St. Valentine's Day massacre is still unsolved

On Feb. 14, 1929, several men believed to be working for Chicago gangster George "Bugs" Moran, an enemy of notorious mobster Al Capone, were killed by several gunmen dressed as police. No one was ever brought to trial for the murders.

Robber barons, the monopolistic business people of the 19th century, explained

“Robber baron” was a term used to describe 19th-century businesspeople who engaged in monopolistic business practices and didn’t face much business regulation, resulting in significant wealth.

Financial institutions use 'Know Your Client' standards to prevent money laundering

KYC standards include verifying customers' identities and conducting regular account checks for high-risk clients to avoid money laundering schemes. These standards obligate banks to report suspicious customers and activity.

LVMH's history can be traced back to 1854, the year Louis Vuitton was started

Louis Vuitton was founded by a craftsman's apprentice who specialized in trunk-making. Since its merger with Moët Hennessy in 1987, which created LVMH, the conglomerate has been considered a powerhouse in the business world. "I would argue that next to Apple, no other company on the planet dominates their industry as completely as LVMH," one financial expert said.

The Chumash manufactured shell beads for thousands of years, eventually as money

The practice was unique to the Chumash among North American Indians. Some researchers have made the case theirs was the first use of money on the continent.

'The Chinatown Sting': Unraveling an international drug smuggling ring

In the late 1980s, a group of women connected through the mahjong parlors in Manhattan's Chinatown were caught in a massive undercover drug bust. But this bust was just the beginning of an even bigger case.

In 1911, a solo thief stole the 'Mona Lisa' from the Louvre, propelling the painting to a new level of celebrity.

How the Montreal Protocol made CFCs the most valuable Miami contraband after cocaine

Following the 1990s production ban, smugglers flooded Miami with illegal chlorofluorocarbons used in air conditioning. A 15-kilogram cylinder bought for $70 in Europe could sell for $242 in the US, fueling multimillion-dollar black-market trade. (Some users may experience a paywall.)

Before the US Mint, people made currency in private mints

Around the year 1652, New England coinage was created at private mints. Historically, private mints were often located in places where governments did not meet the demand for currency. This article dives into the history of private mints, including the ones people can still visit today.

Before it was a drink, coffee was used for handwashing.

Pre-coin currencies like shells were subject to counterfeiting

While it is difficult to pinpoint the very earliest form of money that was used, a type of shell called cowrie shells were used as currency as far back as 3300–2000 BCE. These shells were imitated using ivory, bone, clam shells and more.

A group of daring bootleggers created NASCAR

When Prohibition made alcohol illegal in 1920, it didn’t stop Americans from making and consuming it. The law drove the practice underground. Runners risked their lives to deliver moonshine and began racing among themselves.

From bartering to banking, temples to electronic transactions, here’s banking has evolved significantly since ancient times

A few historical facts about banking (like that one day, not long ago, certificates of deposit were physical pieces of paper) may not surprise you. But did you know that the church was the original lender? And that Julius Caesar himself invented foreclosure?

Today, in the US, people can face years in prison for counterfeiting money

There are both federal and state laws that punish people who use or create counterfeit money. The crime can not only trigger hefty fines, but could also lead to decades behind bars.

Cocainenomics

How did Pablo Escobar rise up out of the Medellin barrios to become the CEO of a $4 billion business? This immersive look at the global drug trade spawned by the notorious drug lord, who at his peak controlled 80% of the cocaine supply in the US. This deep dive includes visualizations showing how logistics of drug smuggling evolved over the years and traces the economic impact of the industry.

The Secret Service was originally formed to combat counterfeiting

By the 1860s, an estimated one-third of US currency in circulation was counterfeit. In 1865, the Secret Service was created specifically to combat the country's serious counterfeiting problem, which had led to widespread financial instability. This was partly due to the lack of federal currency standardization in the country at the time.

The history of Wall Street as a financial center dates back to the 1700s, beginning with the establishment of the New York Stock Exchange and New York City's first official slave market.

Historically, borrowing money from other people to purchase property was common until private financing companies—primarily building and loan associations—stepped in to offer mortgages to buyers.

Between 1989 and 2001, a security guard dubbed 'Uncle Jerry' rigged the McDonald's Monopoly sweepstakes by handing out 60 winning pieces worth more than $24M.

A 1987 garbage barge that no state would accept accidentally sparked the US recycling movement

In the 1980s, an Alabama businessman loaded 3,168 tons of mafia-controlled New York trash onto a barge. It was rejected by six states and three countries, sparking a media frenzy. This event helped convince Americans that they were running out of landfill space, giving rise to curbside recycling.

Governments have historically used counterfeiting for economic warfare

Inserting fake currency into an economy can help destabilize it. During the American Revolution, for instance, the British distributed counterfeit “Continental Dollars” in an effort to devalue the currency being used in the US at the time with the goal of undermining America’s growing financial credibility. The Nazis also ran an extensive counterfeiting scheme during WWII.

Thousands of quarters and huge water bills: the economics of laundromats

There are approximately 30,000 laundromats in the US, serving the roughly 50% of apartment dwellers who do not have a washer or dryer. Shops profit when they can get their machines—roughly 30 to 40 per location, on average—to wash eight to 10 loads a day. Connections with commercial vendors help.

The first ATM—dubbed a 'cash dispenser'—was installed in 1967 in London

Specifically, the first ATM (which stands for “automatic teller machine”) made its debut at a Barclays bank in London. A timeline of ATM history can help illustrate and visualize other key events in ATM history.

Visualizing the history of money

Money is any medium of exchange used in payments for goods or services and can take many forms. From cattle and shells in ancient times to paper and blockchain today, money has taken many shapes and sizes. This infographic illustrates some of the major forms of exchange world cultures have used over the last 5,000 years.