CAT / FIA FBT Syllabus C. Accounting And Reporting Systems, Controls - Money Laundering - Steps - Notes ^{5 / 6}

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