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ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour

Marta, an accountant at Brightway Ltd, notices that a client is depositing large amounts of cash from an unknown source and then quickly transferring the funds abroad. Which stage of money laundering does the rapid movement of the funds through a series of transfers to distance them from their origin best describe?

This is layering. Layering is the second stage of money laundering, in which criminal funds are moved through a series of transfers or transactions to obscure their origin. Placement is the initial deposit, while integration returns the apparently legitimate money to the offender.

  1. APlacement
  2. BLayeringCorrect
  3. CIntegration
  4. DPredicate offending

Explanation

Money laundering is commonly described in three stages: placement, layering and integration. Layering involves moving funds through complex transfers to disguise their origin. Placement is the initial entry of cash into the financial system, and integration is the return of apparently clean funds to the economy.

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