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1. Tax.

In relation to income, franked income is income which has already been subject to tax, for example corporation tax paid by a dividend-paying company, and this payment is recognised in taxing the franked income received.

2. Money laundering.

In relation to money laundering, franked (or clean) money is money which has been derived from legitimate sources.

On guard

"Money laundering is an activity that takes place following a criminal act... to make illegal monetary gains look like franked - or clean - money, which the criminal can then use safely and without detection."
The Treasurer, August 2018, p36.

See also