The Basic Of Money Laundering Processes

Despite the wide diversity of modus operandi employed in money laundering, money laundering processes can be grouped into three stages of activity as follows :

1. Placement is physical disposal of fund generated by illegal activities into the financial system.
   

2. Layering is the separating of criminal proceeds of crima from their source by creating complex layers of financial transaction designed to conceal or disguise the origin of the funds. This activity involves the process of transferring funds comprising the proceeds of placement from a number of account or specifics to other places through a complex series of transactions designed to conceal the source of the funds and provide anonymity.

3. Integration is the use of apparently legitimate proceeds wheter for direct benefit, invesment in various forms of material and financial assets, use in financing of legitimate business activity, or for recyling into the financing of criminal activity.When engaging in money laundering, perpetrators are less concerned about the size of the proceeds to be recieved and of the amount of costs expended, given that the overriding objective is to conceal or eliminate traces of the origin of the money so that the ultimate proceeds can be safety enjoyed or used.

The three activities mau occur as separate or simultaneous phases, but coomonly overlap.