Question

What are the three parts of the money laundering cycle?

Answer 1

The three parts of the money laundering cycle are: placement, layering, and integration.

Step-by-step explanation:

The three parts of the money laundering cycle are: placement, layering, and integration.

1. Placement: This is the first stage where illegal money is introduced into the financial system. It often involves depositing cash into a bank account or purchasing assets such as property or luxury goods.
2. Layering: In this stage, the illegally obtained money is moved and disguised through complex transactions to make it difficult to trace. This may involve transferring funds between accounts, creating shell companies, or conducting multiple transactions.
3. Integration: The final stage involves merging the laundered money back into the legitimate economy. This can be done through investments, purchasing legitimate businesses, or disguising the funds as legitimate income.