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Prohibition-Era Extortion Racket Thrives as Al Capone’s Laundries Wash Illegal Proceeds

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As the Prohibition era raged on in Chicago during the 1920s, crime syndicates like Al Capone’s found creative ways to launder their illegal profits. Under the guise of legitimate businesses, these “laundries” washed away the blood money from bootlegging, extortion, and other illicit activities.

The Birth of Money Laundering

But despite the widespread practice, no one had been convicted of money laundering - not yet, at least. You see, the crime didn’t exist as a distinct offense until much later. It wasn’t until 1986 that Congress passed a law criminalizing money laundering in the United States.

Italy Takes a Stand Against Money Laundering

In the 1970s, Italy was ahead of the curve. In 1978, it became one of the first countries to introduce the offense of money laundering into its penal code. The move came in response to a wave of financial scandals and mafia activity that shook the nation.

A Dark Period in Italian History

The introduction of the crime of money laundering coincided with a dark period in Italian history, marked by the murder of financier Michele Sindona’s liquidator, Giorgio Ambrosoli, and the disappearance of politician Aldo Moro. The mafia had amassed vast sums from drug trafficking and cigarette smuggling, and was using its ill-gotten gains to infiltrate legitimate businesses.

New Business Model for the Mafia

As the mafia’s profits grew, so did its influence in politics and business. The organization began to use new tactics, such as kidnapping and extortion, to further its interests. This period saw a surge in violent crimes, including robberies and “proletarian expropriations.”

Strong New Laws Emerge from the Darkness

In response to the terror and chaos unleashed by the mafia’s activities, Italy introduced new laws aimed at combating money laundering. The crime was punished with severe penalties, as it was seen as a major obstacle to efforts to eradicate organized crime.

The introduction of these new laws marked a significant turning point in Italy’s battle against organized crime. It paved the way for future investigations and prosecutions that would bring many mafia leaders to justice.

A Fight for a Clean Economy

Today, the fight against money laundering continues. With organizations like Eurispes leading the charge, we can hope that one day, the world will be free from the scourge of dirty money and the corruption it breeds. But until then, the battle must go on.

Read the Full Interview with Colonel Tomasso Solazzo Here

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