The LLC Money Laundering Shell Company Game

[MineralMan]

3. Yup. It takes some serious forensic accounting to track

money that is shuttled around a bunch of shell companies. Money comes in to one bearing a label from its source. Once it's in the shell company's bank account, that label starts fading. So, you move parts of it over to other shell companies using different labels. You keep doing that a few times, and the original label disappears completely. After a few transfers, it can be impossible to tell where the money came from in the first place, and you can no longer connect the source with its destination without a lot of work.

That's what forensic accountants do. They discover those connections. It's not easy, and sometimes it's impossible, like when some of the shell companies are offshore in countries that don't have strong disclosure laws on banks.

That's what's happening here.