Money laundering has been around for many years, but did you know about diamond laundering?
Most countries have anti-money laundering laws, requiring banks and other financial institutions to report large or suspicious deposits and transfers. Fraud investigators know that following the money is always the best way to find the perpetrator behind the crime.
Criminals get around this by using cash-based businesses, (restaurants and casinos are favorites) as a front. High volume, low dollar cash transactions from many customers makes it difficult to trace the money's source. The downside is that this type of money laundering can be labor-intensive. It is also easier to detect with today's computing technology.
That's where diamonds come in. They're easy to conceal, have a recognized store of value and a well-developed market.