Money Laundering

Question 1

What are the 3 stages?

Answer 1

1) Placement.
2) Layering.
3) Integration.

Question 2

What is the placement stage?

Answer 2

It is the placement of illicit cash through bank/building society accounts, travellers cheques and investments; turning the illicit cash into cheques from respectable financial institutions.

Question 3

What is the layering stage?

Answer 3

Series of transactions intended to conceal the origins of the illicit money using fictious transactions and false names.

Question 4

What is the integration stage?

Answer 4

When the money is finally converted into the proceeds of legitimate business or investment portfolio.

Question 5

What are the regulations for money laundering?

Answer 5

• All financial firms have to appoint a money laundering reporting officer.
• If anything seems suspicious you must submit a suspicious activity report to the money laundering reporting officer.
• The money laundering reporting officer will decide if it’s appropriate to report the suspicions to the national crime agency.

Question 6

What must you never do after reporting your client?

Answer 6

Tip the client off.