http://www.howstuffworks.com/ref/money-laundering.htm?cid=rss1How Money Laundering Works
In October 2005, U.S. congressman Tom DeLay was indicted on money laundering charges, forcing him to step down as House Majority Leader. Money laundering is a serious charge -- in 2001, U.S. prosecutors obtained almost 900 money-laundering convictions with an average prison sentence of six years. The rise of global financial markets makes money laundering easier than ever -- countries with bank-secrecy laws are directly connected to countries with bank-reporting laws, making it possible to anonymously deposit "dirty" money in one country and then have it transferred to any other country for use.
snip
Tom DeLay
In October 2005, a Texas county indicted U.S. congressman Tom DeLay on charges that included money laundering and conspiracy to violate election codes. (The conspiracy charge was later thrown out, and as of May 2006 no trial date has been set.) In Texas, candidates for legislature are not allowed to receive corporate campaign donations. The prosecution holds that DeLay took part in an alleged scheme to bypass that rule and hide the corporate origins of money that ended up in the hands of Republican candidates in Texas. The alleged laundering scheme involved sending corporate donations from Texas to the Republican National Committee headquarters in Washington D.C., and the RNC then sending an equal amount of money back to Texas for use in campaigning. Two of DeLay's aides and his top campaign contributor have already pleaded guilty in a separate probe to crimes including conspiracy; wire, tax and mail fraud; and corruption of public officials.
***
I have my google personalized with things like the time, month and news, etc. This was from How Stuff Works.