The 3 Stages of Money Laundering

The United Nations Office on Drugs and Crimes states that money laundering “disguises illegal profits without compromising the criminals who wish to benefit from the proceeds.” Money laundering works toward making illegal funds appear legal. These funds are obtained through a multitude of avenues, including scams targeting big business. There are three stages of money laundering to look out for: placement, layering, and integration. Knowing these stages could help prevent future illegal activity in your company. Read the following to form a better understanding of this complex crime and its phases. Placement The first and most vulnerable stage of laundering money is placement. The goal is to introduce the unlawful proceeds into the financial system without attracting the attention of financial institutions or law enforcement. Placement techniques include structuring currency deposits in amounts to evade reporting requirements or commingling currency deposits of legal and illegal enterprises. Layering The second stage of the money laundering process is layering, which involves moving funds around the financial system, often in a complex series of transactions to create confusion and complicate the paper trail. Integration After profits have been disguised through placement and layering, they are reunited with the offender. Criminals integrate funds by purchasing luxury goods and making large-scale investments. Due to the consistency of money launderers, the cycle is likely to begin again after a crime has been committed. Money laundering is a crime that any company can be victim of. Do not hesitate to contact law enforcement if you notice suspicious behavior similar to what is outlined above. Contact The Falcon Consulting Group at 800-636-4870 or for more information.