Anti-money laundering involves the laws and regulations designed to prevent criminals from generating income through illegal activities.Money that’s obtained illegally through actions such as drug trafficking or tax evasion needs to be cleaned. To do so, its owner runs it through steps to make it appear like it was earned legally. Once there’s a record to show how the money was earned, its owner believes it has been properly laundered and will not arouse suspicion. Some money launderers sneak cash into foreign countries for deposit. Others deposit it in smaller increments or buy other cash instruments. Launderers often want to invest, and brokers will occasionally break rules to earn larger commissions. It’s up to financial institutions that issue credit or allow customers to open accounts to investigate customers to ensure they are not taking part in a money-laundering scheme. They must verify where large sums of money originated, monitor suspicious activities and report cash transactions exceeding $10,000.