ML/FT Background Info

Question 1

State, describe and give an example of 3 stages of ML transactions.

Answer 1

1. Placement - criminals introduce dirty funds into the financial system. Eg. Putting smaller funds into various accounts.
2. Layering - dirty money in the financial system, and are being shuffled around to mask their true origin. Eg. Moved from various accounts throughout the world.
3. Integration - the dirty funds made seem clean and reunited with the criminal. Eg. Invested into real estate.