Re: Hello Dante? What Level Is This?
Posted: Fri Feb 19, 2021 6:57 pm
Stephen Punwasi @StephenPunwasi
A VC once told me to invest in anything that can be used for *legal* money laundering.
Not to make money from the launderers, but because the launderers will hide activity in businesses, boosting the likelihood of legit businesses hopping on.
Heck of an investment thesis.
2/ It turns out the whole gig economy was a great use case.
Renting a room that goes for $100/night in a hotel for $2,000/night on a short-term rental site doesn't set off any red flags, or capital currency controls.
It also isn't subject to laundering regs
3/ Also incredible how simple the operations are.
Person A buys a house, and rents it.
Person B gets people to rent from abroad. Don't show up, just pay.
Person A uses the revenue to secure more assets, and expand operations. Brings a new meaning to ghost hotel.
4/ In total, you're looking at 14-18% in fees to launder with a legitimate business front.
Typical laundering fees are 50-80% for really illicit cash.
Big accounting firms do semi-legit for ~20%-30%.
5/ People are like, art! Galleries charge 50% on avg. It's expensive, and only useful if you think the piece will appreciate.
Advantage of art is it becomes an unofficial currency shuffled tax free as payments in freeports. Limited use.
5/ People are like, art! Galleries charge 50% on avg. It's expensive, and only useful if you think the piece will appreciate.
6/ Totally unrelated, but it's all fun and games until they come for your democracy, amirite?
7/ This quote is probably a lot more relevant in this thread than by itself tbh.
@TedLightbulb
Replying to
@StephenPunwasi
In BC person B rents house & with owners knowledge & support turns the house into a grow op for 1-2 years (cash rent), then Person A extensively renovates the house paying tradespeople & suppliers in cash then sells. Not only washing the $ but profiting from real estate too.
A VC once told me to invest in anything that can be used for *legal* money laundering.
Not to make money from the launderers, but because the launderers will hide activity in businesses, boosting the likelihood of legit businesses hopping on.
Heck of an investment thesis.
2/ It turns out the whole gig economy was a great use case.
Renting a room that goes for $100/night in a hotel for $2,000/night on a short-term rental site doesn't set off any red flags, or capital currency controls.
It also isn't subject to laundering regs
3/ Also incredible how simple the operations are.
Person A buys a house, and rents it.
Person B gets people to rent from abroad. Don't show up, just pay.
Person A uses the revenue to secure more assets, and expand operations. Brings a new meaning to ghost hotel.
4/ In total, you're looking at 14-18% in fees to launder with a legitimate business front.
Typical laundering fees are 50-80% for really illicit cash.
Big accounting firms do semi-legit for ~20%-30%.
5/ People are like, art! Galleries charge 50% on avg. It's expensive, and only useful if you think the piece will appreciate.
Advantage of art is it becomes an unofficial currency shuffled tax free as payments in freeports. Limited use.
5/ People are like, art! Galleries charge 50% on avg. It's expensive, and only useful if you think the piece will appreciate.
(...)Stephen Punwasi
@StephenPunwasi
See this building? It's one of the buildings at the Geneva Freeport. It's how a lot of the super rich dodge taxes.
... it also happens to be home to the world's greatest art collection, that will never be seen.
6/ Totally unrelated, but it's all fun and games until they come for your democracy, amirite?
7/ This quote is probably a lot more relevant in this thread than by itself tbh.
Ted LightbulbQuote Tweet
Stephen Punwasi @StephenPunwasi
· Feb 18
"In itself real estate is not an obvious threat... but it becomes an excellent vehicle to gain access to local politicians and their influence and power. You own one building is one thing, you own 10 or 30 commercial buildings and your influence is considerable."
- CSIS, 1997
@TedLightbulb
Replying to
@StephenPunwasi
In BC person B rents house & with owners knowledge & support turns the house into a grow op for 1-2 years (cash rent), then Person A extensively renovates the house paying tradespeople & suppliers in cash then sells. Not only washing the $ but profiting from real estate too.
