1. The Story:

The Prohibition period in the United States refers to the era from 1920 to 1933 when the production, sale, and distribution of alcoholic beverages were prohibited nationwide. This period was mandated by the 18th Amendment to the United States Constitution, which was ratified in 1919. The amendment aimed to reduce social issues associated with alcohol consumption, such as crime, corruption, and public health concerns.

During the Prohibition period, Al Capone rose to infamy as a prominent figure in organized crime, particularly in Chicago. He took advantage of the nationwide ban on alcohol and established a powerful criminal empire based on bootlegging, illegal alcohol production, and distribution.

Capone's success was aided by the prevalent corruption in law enforcement and politics at the time. He exploited this environment by bribing police officers, politicians, and government officials, ensuring the protection of his criminal operations and evading prosecution. This widespread corruption allowed him to operate with relative impunity for an extended period.

One significant strategy employed by Capone was the use of seemingly legitimate businesses as fronts for his illicit activities. These establishments included restaurants, nightclubs, and laundromats. Capone chose establishments such as restaurants, nightclubs, and laundromats as they are cash-intensive businesses; meaning businesses that often deal with significant cash transactions, making it easier for Capone to mix the proceeds from his illegal activities with the legitimate revenue generated by these businesses. This commingling of funds helped him challenge law enforcement authorities to trace the origins of his illicit income.

A laundromat, which allows individuals to wash and dry their clothes using self-service machines, became particularly popular in Capone's case. While money laundering as a concept predates Capone, his use of laundromats as a means to conceal the origins of his illegal income became so prominent that it contributed to the term "money laundering" gaining recognition in popular culture. The association between laundromats and money laundering in Capone's case has influenced the definition of money laundering, which is “Cleaning dirty money.”