Money laundering is the process of creating the appearance that large amounts of money obtained from criminal activity, such as drug trafficking or terrorist activity, originated from a legitimate source. The main stages of money laundering are:
- Placement: It is the process of moving the money into a legitimate source via financial institutions, casinos, financial instruments etc. and at the same time, hiding its source.
- Layering: It conceals the source of the money through a series of transactions and bookkeeping tricks.
- Integration: In this stage laundered money is returned to the criminals legitimately after it has been placed in the financial system
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What are the objectives of the Prevention of Money Laundering Act? |
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