Stages of Money Laundering
3 Stages of Money Laundering
Placement, Layering, and Integration are the three stages in money laundering. Terrorists use step-by-step methods to launder money. It starts with introducing funds or the proceeds of crime into the financial system. In the second stage, the origin of such funds is concealed. The third stage is mainly about creating the legal origin for the funds, and lastly, such funds are invested or expensed.
FAQs About Stages of Money Laundering
The three phases of money laundering are:
- Placement: Placing illicit cash into the legitimate financial system
- Layering: Transforming the money to conceal its source
- Integration: Bringing the money back to the criminal through a legal transaction