ACCA Applied Knowledge · Business and Technology · Regulation and financial crime
A criminal deposits small amounts of cash from drug sales into many different bank accounts, each below the level that triggers a reporting threshold. Which stage of money laundering does this represent?
This is placement. Placement is the first stage of money laundering, in which criminal cash enters the financial system, and depositing small sums below reporting thresholds across many accounts is a classic way to do it without attracting attention.
- APlacementCorrect
- BLayering
- CIntegration
- DExtraction
Explanation
Placement is the first stage, where illegal cash is introduced into the financial system. Splitting deposits into small sums (smurfing or structuring) is a typical placement technique. Layering would involve later complex transfers to hide the trail.
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