The term money laundering refers to disguising the origins money to obtain profits. For instance, illegal drugs and substances cannot be tracked to their source in this process. Therefore, this paper is to focus on why money laundering is so popular within organized crime especially in the current world. Money laundering is common in organized crime as it covers the criminal activities over a certain trade. For example, a crime can be carried out in a retail shop and covered through the activities of the shop. This will take time to be noticed. The position of federal state and local authority are also crucial with regard to this activity.

Money laundering is a means, which criminals disguise the origins of their assets and wealth. Therefore, they are to protect their wealth and suspicion of law and prevent any trace of incriminating evidence. In addition, terrorists and their organizations rely heavily on money to carry out their terrorist activities. Therefore, money in terrorism may obtain through various means. Although terrorists are not much concerned on the source of the money, they are specifically focusing on concealing the intended destination. Moreover, most of the federal states and local authorities readily encourage corruption in money laundering and in organized crime. This is because of the high amounts of money that money laundering organized crimes yield (Mallory, 2007, pg. 231).

In addition, the criminals require a reliable and legal source of income; otherwise their wealth could attract the law enforcement. The criminals find it reliable to invest in legal activities that could yield higher than the criminal activities. The investments are an obstruction to the source and origin of wealth and material accumulated by terrorists (Mallory, 2007, pg. 234). In conclusion, money laundering is common within organized crime as it sets prevention and yields high amounts of money. This illegal activity is difficult to resolve within a nation has authority is increasingly under its support.