Money Laundering

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Submitted By Poolou
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Money laundering the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.The stages of money laundering include the placement stage, the layering stage, and the integration stage.

Placement which represents the initial entry of the "dirty" cash or proceeds of crime into the financial system,is the first stage of money laundering.This stage relieves the criminal of holding and guarding large amounts of bulky of cash; and it places the money into the legitimate financial system. It is during the placement stage that money launderers are the most vulnerable to being caught. This is due to the fact that placing large amounts of money into the legitimate financial system may raise suspicions of officials.

After the placement stage comes the layering stage. The layering stage is the most complex stage. The primary purpose of this stage is to separate the illicit money from its source. This is done by the sophisticated layering of financial transactions that obscure the audit trail and sever the link with the original crime.

The final stage of the money laundering process is termed the integration stage. It is at the integration stage where the money is returned to the criminal from what seem to be legitimate sources. Having been placed initially as cash and layered through a number of financial transactions, the criminal proceeds are now fully integrated into the financial system and can be used for any purpose.

In conclusion money laundering have 3 stages placement, layering and integration stage. Placement which represents the initial entry of the "dirty" cash or proceeds of crime into the financial system, relieves the criminal of holding and guarding large amounts of bulky of cash; and it places the money into the legitimate financial system. From there the criminal enters…...

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