The history of money laundering is that of hiding money or assets from the state - either from transparent elimination or from taxation. It is linked with the history of trade and of banking.

It is very difficult to trace out the history of money laundering but this is the fact that it has been going on for several thousand years from now. Over a period of thousands of years, people have used money-laundering techniques to move money resulting from crime - but also often to hide and move it out of reach of governments. It is also known that many minorities in countries down the ages and around the world have taken steps to preserve their wealth from the rulers, who have targeted them simply because of their beliefs or color.

In USA, prohibition and restrictions on gambling made large amounts of cash for those prepared to break the embargoes. The most important fact about that time was it caused a dramatic increase in financial crime. A sanction breaking was a financial crime because for every offence committed, the criminal immediately received cash in his hand. Thus it created an immediate problem over what to do with that money. Opening a cash business was the obvious thing to do. Laundries were a suitable business, and so - goes rumor - the term "money laundering" was invented. However, this may or may not be true.

It is also believed that money laundering was developed in order to facilitate trade. Also the countries, which have had strict currency transaction requirements, have a development of money laundering.