Cleansing the Uncleansable: Exploring the Money Laundering Metaphor

This blog draws inspiration from a presentation at the AML and Financial Crime Conference, hosted by The Law Society, held on Thursday 26th of September 2024.

Coming clean: Origins of the term 

The term “Money Laundering” is often mistakenly attributed to notorious US mobster Al Capone. A master fraudster, Capone earned millions from his illegal business and "washed" the proceeds through a series of enterprises, including what we call today, “laundromats”.

However,  during Capone’s time in the 1920s, having a washing machine was uncommon, so laundry was done outside the home  but the word “Laundromat” was not in use with commercial laundry facilities in the US known as "washeries" or "Wash-a-terias". “Laundromat” was originally a brand name for a machine sold in the US. During the 1940s, the term evolved to represent the coin-operated, self-service laundry facilities. Given the timing of Capone's case and the fact the term “Money Laundering” was not recorded or reported during his criminal career, it is unlikely that the term originated from this notorious gangster. 

Although the practice had indeed been employed by Capone and criminals for thousands of years, the term “money laundering” was first used in 1973. According to the Oxford English Dictionary, the earliest known use of the term was in the Pennsylvanian newspaper named Morning Call’, in reports on the Watergate scandal (which included President Nixon’s team laundering money through Mexico to pay their collaborators). 

A flawed metaphor 

The concept of the metaphor itself is obvious, it likens the process of making illegally obtained (dirty) money appear legitimate (clean) with using a washing machine to clean clothes. It’s employed so frequently due to its simplicity and the ironic contrast between a benign chore and a major crime. The use of the metaphor is problematic as it perpetuates the belief that illegally obtained funds can ever really be “cleaned” instead of the reality, that the money is still dirty it just appears clean. 

Laundry is typically a simple, benign and basic task. In contrast, money laundering is complex, often involving intricate financial manoeuvres, a wide array of professionals, multiple jurisdictions and an ongoing series of related crimes. Each step in a money laundering process is carefully orchestrated to obscure the origins of illicit funds, creating layers of transactions that are challenging to unravel. The complexity is amplified by criminals' constant evolution as they attempt to stay ahead of regulatory measures. By successfully capturing the simplicity of the cleaning concept, the washing machine metaphor is potentially creating an oversimplified representation of money laundering. 

Does using this metaphor and therefore implying that there is a certain point that dirty money can be successfully “cleaned” and that the process is benign and simple damage anti-money laundering (AML) practices, legislation and the mindset of those working to fight against financial crime? 

Spring cleaning: Time to change?

The visual representation of money laundering in the media, advertising and in the cultural zeitgeist cannot be changed in a day, but maybe it is time to consider imagery that better reflects the true nature of money laundering. 

• Maze or labyrinth: To show the complex, confusing nature of the process.

• Shell game with hidden money: Illustrating the deception and misdirection involved.

• Trojan horse: Representing how dirty money infiltrates legitimate systems. 

• And, if we are desperate to stay in the laundry, stains invisible to the naked eye that only appear under UV light.

Conclusion

While I don't have a definitive answer, it's worthwhile to pause and reflect on this issue. We play a crucial role in shaping the tone within our organisations, and images are undeniably powerful tools. Perhaps initiating this conversation with your teams could serve as an excellent icebreaker, sparking thoughtful discussions about how we represent complex financial crimes.

While the washing machine image continues to be widely used due to its simplicity and ironic nature, it may unintentionally minimise the gravity and intricacy of money laundering operations. This oversimplification could potentially lead to a misunderstanding of the true nature of this financial crime. The metaphor, although memorable, fails to capture the multi-layered, often international scope of money laundering activities, as well as the sophisticated techniques employed by criminals to evade detection.