If you have black money, with or without this post, there’s nothing we can do about it. The only rightful thing you should do is to return it back into the society and allow for the continuous flow of money to the right people. As an advocate of everything right, I will list out the legal ways to convert black money to white and allow the economy to develop. Whether you are in the USA or any other part of the world, this process works the same.
Few options to legally convert black money to white are through stocks, trust funds, jewelries, cryptocurrencies, investments, charities, agriculture, and loans.
These options will be expanded upon a few paragraphs below to explain more about the process. To assist you with the conversion, you will need a chartered account for the process. Meanwhile, chartered accountants are the most involved individuals in the black-to-white money conversion scheme. Not every chartered accountant participates in converting black money to white. However, an insincere chartered accountant is typically referred to as CA, and they condone entry and conversion practices.
Is black money illegal?
Yes, black money is illegal, but people can still earn it legally.
By definition, black money refers to funds typically concealed from tax authorities. Someone can make black money legally or illegally, but it becomes black money when the money’s activity is not reported. So, having black money is not a death sentence; but the best practice is to legalize it before spending.
People with the highest black money are Pickers.
Why is black money terrible for the economy?
Black money is terrible for a country’s economy, but why is black money terrible for the economy? Black money threatens the government with revenue loss and encourages a black or unsanctioned economy. In most countries, such as the US, tax evasion is considered a felony. Apart from denying the government revenues, black money encourages illegal transactions that make black money white. Of course, an external party involved in legalizing black money gets a commission and may not consider backing in during another deal.
Legal Ways to Convert Black Money into White
You are itching for advisable methods to get rid of your black money. So, how do you do it? Below are the ways how to convert black money into white:
1. Ad Campaign Inflation
You can leverage ad campaigns to get rid of black money legally. Black money peddlers capitalize on newspaper and magazine advertisements to alter black money most of the time.
Of course, you can follow suit. How? Contact a local newspaper/magazine publisher and book ads. You will have a rapport with the manager to increase or inflate the ad rate in papers while the actual cost remains cheap.
Alternatively, you can decide with the manager to cancel the deal following an imaginary advertisement terms violation and penalty. Although the publisher keeps the fund in papers, they return it to you after deducting their commission.
2. Imaginary Billing
You can also convert your black money into white by setting up imaginary billings. How is it done? It’s simple!
Create fake bills, complete each field with phony business information, and issue them to clients. Note that your clients must make payments through the bank to legalize the dirty money.
The CA (unscrupulous chartered accountant) will take out the black funds and pay them out in cash. Of course, the CA will deduct a commission for partaking in the deal.
3. Set Up Charities
You can convert black money into white through NGO (Non-governmental organization) donations. Please do not use a governmental charity because they are accountable.
These donations allow you to evade taxes and earn you certain exemptions depending on your state or country. The organization will repay the funds in cash after commissions, though.
NGOs are ideas for black money conversion because they are not questionable. You may research your country’s laws regarding donations before falsely donating black cash.
4. Earn Cash Income
This method of evading taxes and legalizing black money is similar to creating fake bills. However, it involves presenting cash receipts and false incomes from cash sales, cooking tutorials, blogging classes, tuition cash, etc.
5. Legalize Black Money through Smurfing
You can legalize black money through a smurf. However, you need money mules to accept payments and cash out.
A money mule can be a conscious or unsuspecting person, including relatives, friends, and strangers. Money mules are essential when you have big black money to convert to white.
Contact the mules and obtain their bank account details, including account name and number. If you have $10,000 worth of black money, you may need ten money mules, depending on your country’s laws.
Each mule gets credited with $1,000, and, of course, they will deduct commission upon withdrawal. The commission varies between 5 and 15 percent, depending on the money mule.
6. Lend to the Poor
Lending money to the poor is similar to smurfing. The differences, however, are that you will get white money repaid with the commission and after a specific period, typically six months to 2 years.
When you funnel an excessive amount of black money, it raises suspicion. So, endeavor to keep the loan amount minimal and operate from various bank accounts.
Upon recovering the loan plus interest, make sure to use unquestionable mediums. Note, however, that this method of converting black money into white is risky. You may also have to pay bank account officers under the table to remain unsuspicious.
7. Leverage on Agriculture
Agricultural income is not taxable in countries such as India. For instance, if you reside in the US, consider moving to a country without taxable agrarian income.
Do you know why countries that exempt agricultural taxes report incredible income regardless of a poor or good crop harvest yearly? The answer is black money conversion.
You can leverage agriculture to change black cash into white or clean currency and get away with it since the farmer is not accountable.
Get a farmer to claim that they received their funds selling their products when they are being audited. Of course, the black money will be taken from the farmer and converted into white unknowingly. Note that this works only in countries with agricultural tax exemptions.
8. Advance Salary Payment
You can pay salaries in advance to convert black money into white legally. You would not be the first to implement this practice, though; many top companies pay in advance.
Let’s assume you love this black money conversion method; you will pay salaries by up to 5 months, depending on staff earnings. First, find out what amount is suspicious in your country and pay the salary advance below the amount to eliminate suspicion. You may request staff to submit multiple bank accounts, though.
This black-to-white money conversion is quite risky. Assuming a staff member kicks the bucket, you lose the fund, except you can convince and get the family to repay the sum.
9. Start a Political Party
Politics is typically considered a “dirty game.” Well, this assertion extends to converting illegal money to clean.
Depending on your country, a political party may be exempted from income taxes, making it an ideal black money conversion channel.
Many influential individuals remain under political umbrellas to move and convert funds illegally, which is a route you can follow.
Meanwhile, you may start a political party depending on the black money amount. Invest the black money in the party by donating it to every party’s constituent. Of course, you can make unlimited donations and claim that supporters and investors make the donations. Every withdrawal is considered white and unquestionable.
After investing a black illicit fund in a party, deposit it in your political party’s bank account.
Instead of starting a political party, you may invest the black fund in an existing party, but the commission tends to be higher.
10. Falsify Sales
You can start a company and record false sales. This method is similar to creating fake bills and customer information, but the profit is yours, and you do not pay additional taxes.
It becomes white and unsuspicious after depositing the black money in your company’s bank account.
11. Invest in Gold
One of the best ways to convert black money into white through the stock market is to invest in gold. It is pretty simple as it appears; you purchase gold with your black money and resell clean white money.
Some money launderers prefer investing black money in gold to keep them from bank queues. Moreover, the now-white cash can be paid in a preferred currency.
Like other methods, investing in gold with black money has its disadvantage. You will pay a premium, typically 20-30 percent, to convince the seller to accept the fund.
12. Book and Cancel Flight/Train Tickets
You can book and cancel flight or train tickets with black money to change it to white. However, in some countries, booking and cancelling the tickets may be disallowed.
How does booking and cancelling flight or train tickets convert black money into white? The idea is that after booking for an airline or railway transport, you automatically deposit your black cash in the agency. When the agency refunds after cancellation, your illegal money becomes white. Of course, it now appears as a legal refund.
Typically, the involved agencies are travel agents. They repay your money in new currency notes that make it legal and lawfully earned through electronic transfers.
You must book expensive flights or train tickets, depending on your black money sum.
How to convert black money into white in USA
For many black money holders in the USA, the best ways they use to convert black money into white is the use of cryptocurrency and trust funds in tax havens like the Bahamas.
Final Thoughts
Black to white money conversion will not end because more ways continue to unravel regardless of government policies to block existing avenues.
The government can stop black money conversion is to eliminating income tax since only a few pay taxes.
However, if the government removes income tax, expect higher highway toll charges and higher levies on luxurious products. The government will also charge higher on liquefied petroleum gas (LPG) and goods and services tax (GST).
Finally, understand my suggestions regarding changing your black money to white depending on your situation. I recommend hiring a professional fund manager or consultant to determine what suits your case and funds.
