Flashcards in Chapter 1 Deck (25)
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1
-Placement-
The physical disposal of cash or other assets derived from criminal activity.
2
Examples of placement transactions
Blending of funds
Foreign exchange
Breaking up amounts
Currency smuggling
Repayment of legitimate loans
3
Placement: Blending of funds
Commingling of illegitimate funds with legitimate funds such as placing the cash from illegal narcotics sales into cash-intensive locally owned restaurant
4
Placement: Foreign exchange
Purchasing of foreign exchange with illegal funds
5
Placement: Breaking up amounts
Placing cash in small amounts and depositing them into numerous bank accounts in an attempt to evade reporting requirements
6
Placement: Currency smuggling
Cross-border physical movement of cash or monetary instruments
7
Placement: Loans
Repayment of legitimate loans using laundered cash
8
-Layering-
The separation of illicit proceeds from their source by layers of financial transactions intended to conceal the origin of the proceeds.
9
Examples of layering transactions
1.Electronically moving funds from one country to another
2.Moving funds from one financial institution to another or within accounts at the same institution 3.Converting the cash placed into monetary instruments 4.Reselling high value goods and prepaid access/stored value products 5.Investing in real estate and oth. legitimate businesses 6.Placing money in stocks, bonds or life insur. products 7.Using shell companies to obscure the ultimate beneficial owner and assets
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Layering: between countries
Electronically moving funds from one country to another
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Layering: between institutions and accounts
Moving funds from one financial institution to another or within accounts at the same institution
12
Layering: converting
Converting the cash placed into monetary instruments
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Layering: reselling
Reselling high value goods and prepaid access/stored value products
14
Layering: investing
Investing in real estate and oth. legitimate businesses
15
Layering: placing
Placing money in stocks, bonds or life insurance products
16
Layering:shell companies
Using shell companies to obscure the ultimate beneficial owner and assets
17
-Integration-
Supplying apparent legitimacy to illicit wealth through the re-entry of the funds into the economy in what appears to be normal business or personal transactions
18
Examples of integration
1.Purchasing luxury assets like property, artwork, jewelry or high end automobiles
2.Getting into financial arrangements or other ventures where investments can be made in business enterprises
19
Purchasing luxury assets like property, artwork, jewelry or high end automobiles.
Integration
20
What stage of ML? Converting the cash placed into monetary instruments
Layering
21
What stage of ML? "Electronically moving funds from one country to another and dividing them into advanced
financial options and or markets"
Layering
22
What stage of ML? "Commingling of illegitimate funds with legitimate funds such as placing
the cash from illegal narcotics sales into cash-intensive locally owned restaurant"
Placement
23
What stage of ML? Using shell companies to obscure the ultimate beneficial owner and assets
Layering
24
What stage of ML? Purchasing of foreign exchange with illegal funds
Placement
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