BLACK MONEY

Definition of 'Black Money' Proceeds, usually received in cash, from underground economic activity. Black money is earned through illegal activity and, as such, is not taxed. Recipients of black money must hide it, spend it only in the underground economy, or attempt to give it the appearance of legitimacy through illegal money laundering.

Investopedia explains 'Black Money' Possible sources of black money include drug trafficking, weapons trading, terrorism, prostitution, selling counterfeit or stolen goods and selling pirated versions of copyrighted items such as software and musical recordings. Black Money is also the name of a television series hosted by Lowell Bergman that explores the secret world of bribery in international business.

Related Definitions

• Black Market

  A type of economic activity that takes place outside of government-sanctioned channels. Black-market transactions typically occur as a way for participants to avoid government price ...
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• Whistle Blower

  An employee who has inside knowledge of illegal activities occurring within his or her organization and reports these to the public.
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• Black Economy

  The segment of a country's economic activity that is derived from sources that fall outside of the country’s rules and regulations regarding commerce. The activities can be either legal ...
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• Gray Market

  1. An unofficial market where new issues of shares are bought and sold before they become officially available for trading on the stock exchange. 2. The sale or import of goods by ...
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• Money Laundering

  The process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source.
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• • Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include extortion, money laundering, ...
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  • Suspicious Activity Report - SAR

    One of the tools provided under the Bank Secrecy Act (BSA) as a way of monitoring suspicious activities that would not ordinarily be flagged under other reports (such as the currency ...
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  • Suspicious Activity Report - SAR

    One of the tools provided under the Bank Secrecy Act (BSA) as a way of monitoring suspicious activities that would not ordinarily be flagged under other reports (such as the currency ...
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  • Tax Evasion

    An illegal practice where a person, organization or corporation intentionally avoids paying his/her/its true tax liability. Those caught evading taxes are generally subject to criminal ...
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  • Tax Liability

    The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Tax liability can be calculated by applying the ...
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Articles Of Interest

• The Big Business Of Black Markets

  Black markets are alive and kicking in all corners of the world, sometimes in plain view. And they are big business.
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• How To Report A Tax Cheat

  If you report a tax evader to the IRS, you could be eligible for a reward.
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• Uncovering A Career In Forensic Accounting

  Does a job as a financial sleuth sound interesting to you? Dig in to learn more.
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• The Ghouls And Monsters On Wall Street

  Learn about some of the creepiest cases of fraud and the characters behind them.
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• Handcuffs And Smoking Guns: The Criminal Elements Of Wall Street

  From godfathers to perps, familiarize yourself with the "criminal elements" creeping around Wall Street.
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