Money Laundering

Question 1

Money Laundering is the process of moving funds derived from illicit activity by disguising the source, nature or ownership so that the funds can be legally accessed or distributed via legitimate financial channels and credible institutions -
What are the 3 stages of Money Laundering??

Answer 1

Placement - Introduction of the funds into the financial system.

Layering - Moving and transferring of the funds in order to disguise the origins and true ownership of the money.

Integration - Funds now appear to be from a legitimate source and can be used without drawing the attention of law enforcement.

Question 2

Another way to describe Money Laundering is the process of converting “Dirty Money” into “Clean Money”.

What are common examples of ‘Dirty Money’?

Answer 2

“Dirty Money” is money that is derived from illegal or criminal sources. This may include:
- Narcotics / Human Trafficking / Smuggling
- Illegal Gambling
- Racketeering (organized crime), Black Market Schemes
- Fraud (credit card, Mortgages, checks)
- Kidnapping / Ransom / Extortion
- Selling Illegal Goods / Knock offs
- Insider Trading Embezzlement