Quick Answer
Money laundering examples: criminals launder money through six main channels: the banking system, cash-intensive businesses, the gaming sector, international trade and investment, professional advisers, and unregulated financial services such as unregistered crypto exchanges. Common examples include splitting cash into small deposits, mixing criminal cash with business takings, and buying property or luxury goods with illicit funds.
In this guide
Criminals use diverse methods to launder money which is the proceeds of crimes such as drug trafficking, terrorist activities, and tax evasion. As with other criminal activity, these methods are used to sidestep regulatory and law enforcement measures and to exploit current and emerging channels.
What Is Money Laundering?
Money laundering is the process of making money from crime look like it came from a legitimate source. It usually happens in three stages: placement (getting the cash into the financial system), layering (moving it around to hide where it came from) and integration (bringing it back as apparently clean money). The six channels below are the most common ways criminals do this in Australia.
1. Banking system
The major channel for money laundering is the banking system.
Examples:
- banks
- foreign exchange
- money transfer
- offshore banks
- remittance services.
2. Cash intensive businesses
A less visible channel is where criminals are connected to businesses that have a high volume of legitimate cash flow.
Examples:
- building and construction
- convenience store
- entertainment
- motor vehicle retail sectors
- restaurants, hotels, pubs, and clubs
- taxi services
3. Gaming sector
Another significant channel for money laundering is the gaming sector because in addition to gambling, many casinos and gaming facilities offer services similar to financial institutes. This includes accounts, foreign exchange, money changing, electronic funds, transfers, cheque issuing, and safety deposit boxes.
Examples:
- casinos
- pubs and clubs that have racing and sports betting facilities
4. International trade or investment
International trade or investment is a less visible channel for money laundering.
Examples:
- cross-border movement of cash
- real estate purchased with laundered funds
- purchase of luxury items, such as jewellery that can be moved across borders
- securities or other financial instruments that are purchased in the launderer’s legitimate business entity names.
5. Professional advisers
Money launderers may seek assistance from professional advisers, such as financial advisers or legal advisers, either knowingly or unknowingly.
Sophisticated money launders use professional advisers who work around the laws, regulations, and controls in the financial sector or who understand how to utilise schemes in countries with non-existent or weak anti-money laundering and counter-terrorism financing controls. Since 1 July 2026, lawyers, accountants, conveyancers, real estate professionals and trust and company service providers have been brought into Australia’s AML/CTF regime for the services that carry the highest risk.
6. Unregulated financial services
Emerging channels in crypto-currency exchange, such as Bitcoin and Ripple, present new avenues for money laundering. In Australia, digital currency exchanges must register with AUSTRAC and follow AML/CTF rules.
Money Laundering Examples at a Glance
The examples below are simplified illustrations of how each channel can be misused. AUSTRAC’s 2026 money laundering update says the core channels from its 2024 national risk assessment remain the same, but criminals now combine them in more complex ways. To spot the warning signs, see our guide on how to identify money laundering.
| Channel | How it works | Example |
|---|---|---|
| Banking system | Moving illicit funds through accounts, transfers and remittance services | Many small cash deposits across several accounts, then transfers overseas |
| Cash-intensive businesses | Mixing criminal cash with a business’s legitimate takings | A restaurant that records far more cash sales than it really makes |
| Gaming sector | Using casino and betting services to convert or move funds | Buying chips with cash, gambling very little, then cashing out as a casino cheque |
| International trade or investment | Using goods, property or securities to move value across borders | Buying real estate or luxury goods with illicit funds and reselling them |
| Professional advisers | Using lawyers, accountants or advisers to set up structures that hide ownership | A company or trust structure set up to hide who really owns an asset |
| Unregulated financial services and crypto | Moving value outside regulated channels | Converting cash to cryptocurrency through an unregistered exchange |
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Frequently Asked Questions About Money Laundering Examples
1. What is money laundering in simple terms?
Money laundering is making money from crime look legitimate, so criminals can use it without drawing attention. It usually involves placing the cash into the financial system, moving it around to hide its source, and then bringing it back as apparently clean money.
2. What are common examples of money laundering?
Common examples include splitting cash into many small bank deposits, running illicit cash through a cash-heavy business, buying casino chips and cashing out with little gambling, buying property or luxury goods with criminal funds, and moving money through cryptocurrency or unregistered remittance services.
3. What are the 3 stages of money laundering?
The three stages are placement, layering and integration. Placement puts the illicit money into the financial system, layering hides where it came from through a series of transactions, and integration returns it to the criminal as apparently legitimate funds.
4. How is cryptocurrency used to launder money?
Criminals may convert cash into cryptocurrency, move it through several wallets or exchanges to hide the trail, and then convert it back into regular currency. In Australia, digital currency exchanges must register with AUSTRAC and meet AML/CTF obligations, which makes this harder.
Sources
AUSTRAC, Money laundering update 2026
Last reviewed: October 2026
This article is general information, not legal advice.
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