Many forms of criminal activity generate significant amounts of money. To avoid attracting the attention of law enforcement, criminals must find a way to disguise the source of their ill-gotten funds. That’s the goal of money laundering, which involves criminals engaging in a series of transactions to conceal the criminal origins of their money.

Money laundering involves three stages:

1. A criminal (or those under their direction) introduces funds earned through criminal activity to the financial system.
2. A money launderer (or the criminal themselves) engages in a series of transactions to create layers between the illegal source of the cash they control.
3. The criminal moves laundered money back into the financial system.

The layering process

During the layering stage, the goal is to disconnect the money from the illegal activity that generated it. Generally, the more layers money passes through, the harder it becomes to connect the funds to criminal activity.

The goal of layering is to make the process of tracking money through each layer more difficult to accomplish. Layering can include changing the nature of the assets, i.e. cash, gold, casino chips, real-estate, etc.

Complex layering schemes involve sending the money around the globe using a series of transactions. The more countries the money enters and leaves, the harder it is to uncover the “dirty” source of the money.

Layering and AML

A complex layering scheme makes anti-money laundering (AML) operations challenging. Since they lack jurisdiction overseas, law enforcement must coordinate with their foreign counterparts, which can delay the tracking of the funds while complicating the document trail associated with the funds.

To complicate matters further, criminals often use shell companies, which engage in fraudulent transactions, such as the creation of fake invoices. Once the company receives payment for the fake invoice, those who control the shell company can return the proceeds or send them to another shell company as payment for a subsequent fake invoice.

Layering can involve electronic transactions such as wires and ACHs, paper transactions, and/or manual movement of the funds between countries using covert means. Those laundering the funds may also decide to use non-traditional financial systems, such as Hawala (Middle East), Hundi (India), or Hui Kuan (Hong Kong), which are alternative remittance systems that allow for the movement of money without doing so physically.

General Motors Company (GM), a Auto Manufacturers business, was a gaining stock in the prior session. General Motors Company (GM) stock started the day for trading at $22.99 and closed the day at $22.56 with declining move of -1.05%. The decrease change in General Motors Company (GM) beat the change in the NASDAQ, a tech heavy index, for the day which lossed -1.89% in prior session.

General Motors Company (GM) is focused on the Auto Manufacturers sector. This stock market sector has seen some action from day traders in recent months. Bullish day traders of General Motors Company (GM) will be looking for positive upcoming earnings whereas bearish day traders of General Motors Company (GM) will be looking for negative earnings. The last time General Motors Company (GM) had an earnings surprise was on Qtr Ending 03/20 when they reported $0.62 compared to an estimate of $0.18 which was a difference of $+0.44 resulting in a change of +244.44%. Current earnings estimates are to be released for Current Qtr 06/2020 on General Motors Company (GM) and out of 2 Wall Street estimates the average is saying -$1.33. The high estimate is saying -$1.32 whereas the low estimate is saying -$1.33 and the prior year General Motors Company (GM) announced earnings at $1.64 a growth rate est. (year over year) of -181.10%.

The market performance of General Motors Company (GM) has varied recently. Year to date General Motors Company (GM)’s shares are down -37.71%. Over the past 12 weeks General Motors Company (GM) is down -34.41% and over the last 4 weeks General Motors Company (GM) is down -0.91%. General Motors Company (GM) current income statement shows revenue (ttm) of $135.07B. Gross Profit is $14.14B. This puts the current EBITDA of General Motors Company (GM) at $11.97B.

Wall street day traders might also notice recent changes to stock analyst estimates for General Motors Company (GM). The stock is trading with an RSI (relative strength index) of 50.57 indicating General Motors Company (GM) is neither overbought nor oversold. Technically, GM’s short term support levels are around $14.51, $13.98 and $13.01 on the downside. GMs short term resistance levels are $23.50, $22.70 and $22.24 on the upside. The market cap of General Motors Company (GM) is $32.285B and institutions hold 78.03% of the stock. The outstanding share count stands at 1.34B while the short float (shares short) stands at 1.74%.

Market research indicates that these earning estimate changes look to be directly correlated with short-term stock prices. The day traders can look to capitalize on the basis of ranking. Based on technical analysis, GM has short term rating of Bullish (0.36), Intermediate rating of Neutral (0.04) and the long-term rating of Bearish (-0.25) giving it an overall rating of Neutral (0.05).

The EPS growth this year on General Motors Company (GM) is decreased -15.90% and is expected to increase 254.90% next year. However, quarterly earnings (EPS) growth year over year on General Motors Company (GM) has decreased by -88.40% and quarterly revenue (Sales) growth year over year stands at -6.20%. Gross margin is detected at 9.80% that represents the percent of total sales revenue that the company retains after direct cost of goods sold. Net profit margin (ttm) is 3.50% while return on equity (ttm) is 11.10%.

Recent Developments:

2020-05-07 – General Motors Prices $4.0 Billion Of Senior Unsecured Notes.
2020-05-07 – General Motors Offers Senior Unsecured Notes.
2020-05-06 – General Motors Co – Expects Covid-19 Will Materially Impact Results Of Operations During Remainder Of 2020.
2020-05-06 – General Motors Targeting To Restart Majority Of Manufacturing Operations On May 18 In U.S. And Canada.
2020-05-06 – General Motors Reports Q1 EPS Of $0.17.

Nokia Corporation (NOK), a Communication Equipment corporation, was a active mover in the prior market session. Nokia Corporation (NOK) shares opened the day for trading at $3.6000 and closed the day at $3.5700 with gains of 0.00%. The increase movement in Nokia Corporation (NOK) beat the movement in the DOW for the day which lossed -1.89% in prior market day.

Nokia Corporation (NOK) is focused on the Communication Equipment sector. This market sector has seen some action from day traders in recent weeks. Bullish day traders of Nokia Corporation (NOK) will be looking for positive upcoming earnings whereas bearish day traders of Nokia Corporation (NOK) will be looking for negative earnings. The last time Nokia Corporation (NOK) had an earnings surprise was on Qtr Ending 03/20 when they reported $0.01 compared to an estimate of $0.01 . Current earnings estimates are to be released for Current Qtr 06/2020 on Nokia Corporation (NOK) and out of 4 Wall Street estimates the average is saying $0.03. The high estimate is saying $0.04 whereas the low estimate is saying $0.01 and the prior year Nokia Corporation (NOK) announced earnings at $0.06 a growth rate est. (year over year) of -50.00%.

The market performance of Nokia Corporation (NOK) has varied recently. Year to date Nokia Corporation (NOK)’s shares are down -3.77%. Over the past 12 weeks Nokia Corporation (NOK) is down -17.55% and over the last 4 weeks Nokia Corporation (NOK) is up 9.85%. Gross Profit is $8.45B. .

Wall street day traders might also notice recent changes to stock analyst estimates for Nokia Corporation (NOK). The stock is trading with an RSI (relative strength index) of 62.75 indicating Nokia Corporation (NOK) is neither overbought nor oversold. Technically, NOK’s short term support levels are around $14.51, $13.98 and $13.01 on the downside. NOKs short term resistance levels are $23.50, $22.70 and $22.24 on the upside. The market cap of Nokia Corporation (NOK) is $20.198B and institutions hold 4.78% of the stock. The outstanding share count stands at 5.63B while the short float (shares short) stands at 0.34%.

Research indicates that these estimate changes look to be directly correlated with short-term shares prices. The day traders can look to capitalize on the basis of ranking. Based on technical analysis, NOK has short term rating of Bullish (0.39), Intermediate rating of Bullish (0.39) and the long-term rating of Neutral (0.22) giving it an overall rating of Bullish (0.33).

The EPS growth this year on Nokia Corporation (NOK) is increased 102.50% and is expected to increase 27.12% next year. However, quarterly earnings (EPS) growth year over year on Nokia Corporation (NOK) has increased by 76.80% and quarterly revenue (Sales) growth year over year stands at -2.40%. Gross margin is detected at 36.70% that represents the percent of total sales revenue that the company retains after direct cost of goods sold. Net profit margin (ttm) is 1.40% while return on equity (ttm) is 2.20%.