Inside the Launderer’s Toolkit: How Criminals Clean Dirty Money in 2025

Monday, 20 October 2025
Fintech & Payments
Shane O'Sullivan
Research Analyst

As global regulations tighten and financial systems become more digital, money launderers are evolving their methods to stay one step ahead. Our latest research on the subject has identified 12 tactics most likely to dominate in 2026 — a mix of old-school deception and cutting-edge digital manoeuvres.

Smurfing

Named after the small blue cartoon characters, smurfing involves splitting large sums of money into smaller, seemingly harmless deposits to avoid detection. Rather than one suspicious transaction, criminals scatter hundreds of micro-deposits across multiple accounts. It’s low-tech but surprisingly effective, especially in markets where banks still rely on manual oversight for smaller transfers.

Money Mules

Money mules are the unwitting middlemen of the laundering world. They’re recruited—often through social media or job ads—to transfer money through their accounts, under the pretence of legitimate employment. Some know what they’re doing; many don’t. Either way, the result is the same: dirty money appears to move through a clean individual’s hands.

Shells

Shell companies are hollow corporate entities—businesses that exist on paper but do little or no real trading. They’re perfect for masking ownership and moving funds under the guise of legitimate business activity. From offshore tax havens to complex multi-jurisdictional structures, shells remain one of the most enduring tools for hiding illicit wealth.

Trade-based Laundering

This method dresses financial crime up as global commerce. Criminals manipulate trade invoices—overstating or understating prices, faking shipments, or disguising the nature of goods—to move value across borders. The sheer complexity of international trade makes this a challenge to detect, even for advanced compliance systems.

Bank Capture

In some cases, criminals take the boldest route possible: they capture the bank itself. By infiltrating or outright controlling smaller, poorly regulated financial institutions, they gain direct access to systems that can legitimise illicit funds. Once inside, transactions can be masked, records altered, and oversight quietly neutralised.

NGO Diversion

Non-governmental organisations are built on trust—something money launderers exploit. By routing illegal funds through charities or aid projects, criminals can make their money appear as philanthropic support. In regions affected by conflict or disaster, where financial oversight is limited, this tactic is particularly difficult to uncover.

Crypto

Cryptocurrencies have opened a new frontier for financial crime. Their decentralised, pseudonymous nature allows launderers to move funds quickly across borders without banks or regulators in the way. Sophisticated criminals use mixers and privacy coins to further obscure transaction trails, challenging even the most advanced AML systems.

Proxy Servers

Not all laundering is financial—sometimes it’s digital camouflage. By routing activity through multiple proxy servers or VPNs, criminals can disguise their online identities and locations. This makes it far harder for investigators to connect suspicious financial movements to real-world individuals or organisations.

Job Scams

A new twist on an old con, job scams lure victims with fake employment offers—often in “payment processing” or “financial coordination.” The catch? These workers are actually laundering money for criminals without realising it. Once authorities trace the activity, the “employee” is left carrying the blame.

Dark Web

The dark web remains a thriving ecosystem for illicit trade. From stolen data to illegal substances, everything has a price—and nearly all transactions are in cryptocurrency. Money launderers use dark web markets to mix, move, and disguise their funds, often layering transactions across multiple wallets to throw off digital investigators.

Romance Scams

Few tactics are as emotionally manipulative as romance scams. Fraudsters build online relationships with victims, then invent emergencies or business opportunities to extract money. In some cases, they go further—asking victims to transfer funds on their behalf, turning them into unwitting accomplices in laundering operations.

Online Gambling

Casinos and betting sites—especially unregulated ones—offer the perfect front for laundering. Criminals deposit dirty money as betting funds, place a few strategic wagers, then withdraw their balance as “winnings.” It’s an elegant disguise, with the added benefit of plausible deniability.

As regulators and AML systems adapt, one thing is clear: financial crime is a moving target. Understanding how these tactics work is the first step towards staying ahead of those who aim to exploit the system.


Source: Anti-money Laundering Systems Market 2025-2030

Read the Press Release: AML Systems Market to Surpass $75 Billion by 2030 Globally, With LexisNexis Risk Solutions, Oracle, and Experian Leading the Defence

Download the Whitepaper: From Detection to Prevention: The Next Era of Anti-money Laundering

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