Part 1/5:
The Origins of Money Laundering: From Ancient China to the East India Companies
Money laundering may seem like a modern phenomenon, but its roots can be traced back over 2,000 years to ancient China. During the booming tea trade, commercial trading was banned by regional powers, so merchants needed a way to keep their profits from foreign deals. They developed the "haala" system, a semi-certification process where money didn't change hands directly. Instead, buyers and sellers in different regions would use local middlemen to pass on IOUs, which the "haala" dealers would later resolve by subtracting from outstanding debts or bartering. This allowed them to dodge taxation, though it relied heavily on trust between partners.