AAAP7 INT
Syllabus A. Regulatory Environment A2. Money Laundering

A2a. Money Laundering - Steps 2 / 11

Syllabus A2a)

Define ‘money laundering’ and discuss international methods for combatting money laundering.

Money laundering usually consists of three steps

These are:

  1. Placement,

  2. Layering and

  3. Integration.

Placement

  • Putting illegal funds from the illegal activity into apparently legitimate business activity or property 

    e.g. Open a cash sales business (Hair dressing) and put the illegal funds in to the bank account there as a cash income.

Layering

  • Involves the wire transfer of funds through a series of accounts in an attempt to hide the funds' true origins.

Integration

  • involves buying of legitimate goods, using the cash after the layering stage