What are the stages of money laundering?

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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