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What are the three main stages of money laundering? A. Placement, Accumulation, Distribution
B. Placement, Verification, Integration
C. Entry, Processing, Exit
D. Placement, Layering, Integration
The correct answer is D. Placement, Layering, Integration.
Explanation:
1. Placement: This is the initial stage where illicit funds are introduced into the financial system. This can be done through methods like depositing cash into banks or using shell companies.
2. Layering: In this stage, the goal is to obscure the origins of the money. This involves complex layers of financial transactions designed to confuse and cloud the ownership of the funds, such as transferring money between accounts or making investments.
3. Integration: Finally, the illicit money is reintroduced into the economy, making it appear legitimate. This might involve using the money for legal investments or purchases.
These stages help launderers disguise the source of their illegal money effectively.