ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour
Which of the following best describes the money laundering process known as 'layering'?
Layering means moving funds through a series of transactions or accounts to disguise their criminal origin. It is the middle stage. Placement is the initial entry of cash into the financial system, and integration is the return of cleaned money as apparently legitimate wealth.
- APaying criminal proceeds in small amounts into a bank account to place them in the financial system
- BMoving funds through a series of transactions or accounts to disguise their originCorrect
- CBringing the cleaned funds back into the economy as apparently legitimate income or assets
Explanation
Layering is the second stage of laundering. Funds are moved through complex transactions, transfers and accounts to separate them from their criminal source. Option 0 describes placement and option 2 describes integration.
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