ACCA Applied Knowledge · Business and Technology · Regulation and financial crime
Which of the following is a stage in the money laundering process in which criminal proceeds are moved through many transactions to distance them from their source?
Layering is the stage where criminal proceeds are moved through multiple transactions to obscure their origin. Placement is the initial entry of cash into the system, and integration is the final return of apparently legitimate funds to the launderer.
- APlacement
- BLayeringCorrect
- CIntegration
Explanation
Placement introduces cash into the financial system; layering moves it through complex transactions to obscure its origin; integration returns the apparently clean funds to the criminal as legitimate wealth.
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