Financial Crime World

The Underworld Empire: A History of Money Laundering

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Introduction

During the Prohibition era in Chicago, a lucrative underworld empire was built on the foundation of illegal liquor sales. This empire, led by Al Capone’s infamous gang, used sophisticated money laundering techniques to disguise their wealth. But what looks like a simple laundry business is actually a complex operation designed to evade detection.

The Birth of Money Laundering in Chicago

Chicago, 1920s

  • The dark alleys and backrooms of Chicago were home to a thriving underworld empire.
  • Al Capone’s gang used seemingly legitimate laundries to wash the proceeds from their illicit activities.
  • “Money laundering” was a term coined by journalists during this era.

Italy Faces Similar Challenges

Rome, 1970s

  • Italy is grappling with its own organized crime problem.
  • The notorious Mafia and other criminal organizations amass wealth through illegal activities such as extortion, gambling, and prostitution.
  • The country was one of the first to introduce the offense of money laundering into its criminal code.

Murder and Mayhem in the City of Rome

Rome, 1978

  • A dark period in Italy’s history came to a head with the murder of Giorgio Ambrosoli, a liquidator trying to uncover the truth about international financial scandals.
  • The same year, the crime of money laundering was introduced in response to terrorism and other serious crimes.

A New Business Model for Criminals

Rome, 1970s

  • As organized crime groups grew more powerful, they began to diversify their activities, including kidnapping for ransom.
  • This new business model brought them even greater wealth and power, but also sparked a fierce battle between law enforcement and criminal organizations.

Strong New Laws Emerge from Dark Years

Rome, 1978

  • In response to the crisis, Italy introduced new laws aimed at combating money laundering and other serious crimes.
  • The crime of money laundering was introduced as an autonomous offense with more severe penalties than receiving stolen goods.

This article is brought to you by our partner, Eurispes Institute in Rome.