Course Description

Consideration of the Three Stages of Money Laundering: Placement, Layering, and Integration

Placement, layering, and integration comprises money laundering. Let us take note that the stages of money laundering get progressively difficult to execute. To further understand how these stages can be evaded, let us review each stage.

1. Placement

Definition: Illegally acquired money is channeled into the financial system to cover up its source, this stage is known as placement. 

Methods of Execution: Several strategies are used by criminals to secrete the illegal money which can later be used to conduct normal financial operations. This includes but is not limited to amassing and purchasing goods that are valuable such as real estate or just assets, and physically depositing small chunks of cash to cut down on excessive scrutiny.

2. Layering

Follow up Placement: The purpose of layering is to further conceal the origins of illegally made money once it has been deposited illicitly and replaced with cash. Therefore, as one layers more, it gets harder to link funds to that one source.

Methods: Money launderers make multiple transactions at various different financial institutions and across different countries. They also fabricate documents and use dummy corporations and outsiders to muddle the paper trail as much as possible. The purpose is to cause such a cloud of transactions that is beyond the understanding of an investigator and the flow of money is virtually impossible to follow.

3. Integration:

Purpose: The last stage of money laundering is the stage of integration. In this case, the â€the washed’ money can be reinvested back into the lawful economy and its usage would not raise any alarms for the criminals.

Methods: When the money is considered as part of the legal ‘money’, then it can be put back to the legal enterprises, personal utilization, spending it in any manner without any attention to it. Integration is a point where the legal systems do not bother criminals spending of their proceeds of crime anymore.

It is worth pointing out that these stages do not always follow a straight line or a specific order. Criminals laundering money usually combine or skip some of the stages targeting the earlier ones to further obscure the illegal source of money.

Common Techniques Used Across Stages:

Shell Companies: Criminals frequently employ shell companies, which are little more than a legal facade and conduct little or no business, to conceal the asset owners and transfer money instead.

Offshore Accounts: The use of offshore accounts typically complicates matters regarding the ownership of a company or an asset, and assists in maintaining the anonymity of the owner by keeping the beneficial owners in debtor jurisdictions with strong legal secrecy.

Smurfing: To avoid reporting currency transactions over a certain amount, several smaller transactions are made that are referred to as “Smurfing” or “structuring”

Trade-Based Laundering: Modifying figures in international trade invoices and documents in order to shift money or loot across borders without any suspicion.

Cryptocurrencies: Due to anonymity, bitcoin and other electronic currencies are becoming popular tools for money laundering.

These stages and techniques are important for authorities, financial institutions and regulators in order to collect intelligence and develop appropriate action plans for anti-money laundering efforts and ensure the financial system is not abused.

What You’ll Learn From This Course

• Pursuing AML endeavors assisting and providing all relevant information that users might ask related to it. Knowing AML is relevant also because it helps make sure that I don’t provide irrelevant answers or engage in discussions on matters that are not related to Finance, compliance, or risk management. Furthermore, understanding AML gives me the ability to help users understand the significance of anti-money laundering regulations in tackling financial crimes and protecting the reputation of the international financial community.

Certification

You will be provided by certificates after completion of a course