The most important subject, in my humble opinion, after the actual tradecraft of money laundering, is the appropriate use of corporate entities and other business organisations for criminal clients who have illicit, ongoing operations that must escape scrutiny, or legitimate companies where they do not want to be identified as the beneficial owners or operators.

Besides the low-profile needed for their illegal operations, you want to disguise ownership of your clients' legitimate operations as well, so that seizure and forfeiture are not instituted should they be indicted and convicted. Also, you may need to someday post the legitimate assets as collateral for their bail bond, or that of a subordinate. They also may need the cash flow of that business if they must close up their criminal operation one day. They certainly will need it when they are released after serving a prison term someday.

Here are the methods I used, or which were employed on my behalf:

• First, most state corporation statutes do not require that owners be identified, only officers, directors and registered agents. Since there is a gap between the date a corporation is formed (usually by corporate service firms, lawyers, or other nominees) and the date, generally in the calendar year, in which one must file the names of your officers and directors, there is no effective identification. Laundrymen needing a domestic corporation for some client's illicit purpose, will never file the annual report, even if it means that the corporation will be dissolved. I instructed the client to remember to complete his illicit use of the company before a report must be filed, even posting cryptic reminders .
• Second, to insure that the client is never identified, one can delegate the formation of a corporation to a lawyer overseas, who has no idea the company will be used for crime, and instruct that lawyer to engage another independent lawyer in the US to form the company. Even if law enforcement, or a grand jury, asks for the identity of a client, which is not privileged, that lawyer can only refer them to a lawyer outside their jurisdiction. Of course, the second lawyer doesn't know the name of my client either, even if someone in law enforcement raided his office one night and read his file, which by prior arrangement does not even contain my name. This is prevent a bribed employee from learning it.
• Third, such states as Delaware, which have a thriving corporate service industry, are often employed to form the company, as they handily supply their staff to function as all necessary officers and directors. Again, the company is deliberately allowed to be dissolved. Delaware's largest corporate provider was always wondering why I never kept my corporations current. One of my clients though I was being cheap because I never kept his companies alive the year after they were formed, but I wasn't about to explain the hidden reason to him. 
• Fourth, When for some reason corporate ownership must be shown, the sole shareholder would be a corporation, without a designation of which state or province the company was formed in. When law enforcement searched for the company after the fact, they could not locate it anywhere in the continental US or Canada, because an imposing name was simply chosen at random, and no such company ever created anywhere.
• Fifth, I often chose company names deceptively similar to those of well-known legitimate companies, as the prestige of the better-known entity often rubbed off on the newly-formed impostor. Clients actually were able to obtain credit for start-up companies due solely to confusion on the part of  tradesmen and suppliers. We often used similar corporate colours and deceptive (not exact) logos as part of the masquerade.

What we end up with is a corporate entity that is  basically untraceable, unless of course law enforcement arrests and obtains the cooperation of one of the clients who knows the details of the scheme. Otherwise, beneficial ownership generally cannot be penetrated.  

Next Week: More tradecraft.