Re:Magic Leap reportedly slashes jobs and steps away from co...
by prepend on Wednesday April 22, 2020 @01:16PM
(#22947877)
I think that any funding source would still be subject to US money laundering rules and laws. If I try to invest $5M in Magic Leap, I have to be a qualified investor and the funding has to be received by some US bank. Also, it seems like having these holes in a company’s books would be found by reputable investor’s due diligence since it’s a pretty huge risk that could impact the return.
Not speaking from direct experience, only logical first principles. I think the money needs to be laundered before i vesting in US firms.
Re:Magic Leap reportedly slashes jobs and steps away from co...
by aero142 on Wednesday April 22, 2020 @01:05PM
(#22947738)
Is there some exception to money laundering rules I'm not aware of where the government doesn't investigate the source of cash if it is invested in a company from overseas?
Re:Magic Leap reportedly slashes jobs and steps away from co...
by filoleg on Wednesday April 22, 2020 @01:09PM
(#22947801)
Oh, if it is a foreign power, they arent laundering it to prevent the US government from discovering the source, they are doing it to prevent discovering the source from their own governments. Because those foreign actors wouldn’t be running away from taxes from the US, since those money were never in the US in the first place.
Also curious on how it would work. If a rich foreign national decides to invest into a random startup, i dont think US has the ability to look into where the money came from, unless that foreign national claims to have made those money in the US.
Again, could totally be wrong here, so please someone correct me if that’s the case.
Re:Magic Leap reportedly slashes jobs and steps away from co...
by lotsofpulp on Wednesday April 22, 2020 @02:04PM
(#22948404)
The US has many levers with which to find out where a foreign national's money comes from, simplest being to tie them up in a review of them being a possible security risk or not. This might be applicable too:
https://en.wikipedia.org/wiki/Committee_on_Foreign_Investmen...
Re:Magic Leap reportedly slashes jobs and steps away from co...
by lotsofpulp on Wednesday April 22, 2020 @01:59PM
(#22948349)
There's always exceptions to rules if you're sufficiently (politically) powerful, e.g. the tradeoff of going after someone causes an unacceptable loss to someone higher up in your own chain of command.
You make X in dirty money, then invest it into a cool sounding company promising groundbreaking stuff that has a bunch of big known investors on board already. If the company does well, you take the clean money out with a nice profit on top. If it doesn’t work out, hopefully you pulled out at a level where you lost some money but not much. And it still returns you clean money at the end, so the goal is accomplished.
Typically, this kind of money laundering is done through retail businesses like restaurants and such, but it is way easier to just drop those money as an investment into another company, rather than maintaining your own retail business. Plus, the amount of money you could launder by investing is way higher, since it isnt as suspicious to drop a few hundred millions on a startup investment, as opposed to claiming that your small restaurant that is almost always empty is bringing you tens of millions per year.