Skip to content

ACCA Applied Knowledge · Business and Technology · Regulation and financial crime

Which of the following is the best example of 'layering' in money laundering?

Transferring funds through a series of shell companies in several jurisdictions is layering. The aim is to create distance between the money and its criminal source through complex transactions. Small cash deposits are placement, and buying a legitimate business with the funds is integration.

  1. ADepositing small amounts of cash into many bank accounts
  2. BTransferring funds through a series of shell companies in several jurisdictions to obscure their originCorrect
  3. CUsing laundered funds to buy a legitimate hotel business
  4. DFailing to report a suspicion to the MLRO

Explanation

Layering separates illicit funds from their source through complex transfers, such as moving them between shell companies in different countries. Depositing small cash amounts is placement, buying a legitimate business with the funds is integration, and not reporting is a separate offence.

Did you get it right without looking?

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

Practise Regulation and financial crimeFree diagnostic mock

More Regulation and financial crime questions