Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Money laundering

After laundering, a criminal buys a commercial property through a company and receives rental income that appears legitimate, which is then used to fund a lavish lifestyle. Which stage is this, and why?

This is integration, the final stage. The laundered money is reinvested in property producing apparently legitimate rental income, so the funds re-enter the legitimate economy and can be used openly, rather than being introduced (placement) or obscured (layering).

  1. ALayering, because multiple entities are used
  2. BPlacement, because assets are acquired
  3. CIntegration, because funds re-enter the economy appearing legitimateCorrect
  4. DStructuring, because rent is received in small amounts

Explanation

Integration is the final stage, where laundered funds are returned to the criminal as apparently legitimate wealth, for example through property, businesses or investments yielding lawful-looking income. The property purchase and rental income give the funds a legitimate appearance. Placement concerns initial entry of cash.

Did you get it right without looking?

One question tells you little. A timed set on Money laundering shows your real accuracy, how long you take and where you lose marks.

Practise Money launderingFree diagnostic mock

More Money laundering questions