Article
Someone Tries Laundering Money—Literally
Money laundering is not a good idea, as a South Korean found out when he or she put banknotes in a washing machine to remove possible traces of the coronavirus, the AP reports.
Officials say the loss was considerable. The person living in Ansan city, near Seoul, placed an unspecified amount of 50,000-won ($42) bills in a washing machine earlier this year.
Some of the money was seriously damaged, and the person reached out to the Bank of Korea to find whether it could be exchanged for new bills.
Under bank rules on the exchange of damaged, mutilated, and contaminated banknotes, the person was provided with the new currency totaling about 23 million won ($19,320), the Bank of Korea said in a statement.
Bank official Seo Jee Woun said the number of 50,000-won bills the bank exchanged at half value was 507.
She said the bank doesn't count the number of bills that it cannot exchange because damage is too big.
She said bank officials didn't know exactly how much money the person tried to wash. She said the loss would still be "considerable."
How much the central bank should exchange in a situation like this depends on how seriously banknotes are damaged.
The bank can provide the new currency at face value if damage is minimal, but at half value or not at all if damage is significant. The amount in question was condolence money given by relatives, friends, and others during a family funeral, according to the bank.
QUESTIONS:
1) What prompted one Ansan City resident to literally launder her banknotes in the washing machine?
2) How much was the value of the damaged paper money?
3) Specify the Bank of Korea's stance on the monetary exchange. How does the central bank determine the amount to be reimbursed?
4) What are your thoughts on the ridiculous disinfection manner done on the bills?
5) In your opinion, are the bank rules on reciprocating new banknotes reasonable? Why or why not?
VOCABULARY/EXPRESSION:
money laundering - concealing the source of illegally gotten money
