ACCA Applied Knowledge · Business and Technology · Regulation and financial crime
Which of the following lists the three recognised stages of money laundering in the correct order?
The correct order is placement, layering, integration. Criminal proceeds are first introduced into the financial system, then moved through complex transactions to hide their origin, and finally reintegrated into the legitimate economy so that the funds appear to come from lawful sources.
- ALayering, placement, integration
- BPlacement, layering, integrationCorrect
- CIntegration, placement, layering
- DPlacement, integration, layering
Explanation
Money laundering is conventionally described as placement (introducing criminal cash into the financial system), layering (moving it through transactions to obscure its origin) and integration (returning it to the legitimate economy as apparently clean funds). The other orders reverse these stages.
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