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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

10

Layering: between countries

Electronically moving funds from one country to another

11

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

13

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

25

What stage of ML? Repayment of legitimate loans using laundered cash

Placement