Hey Guys we the team of HELPING SURFERS INC. has come up Money Laundering Part 4 as promised. We are going in deep for The Stages Of Money Laundering.In this part we are going to share information about these.
Note- HELPING SURFERS INC. Do not promote any illegal activities.
Note- HELPING SURFERS INC. Do not promote any illegal activities.
The Three Stages Of Money Laundering In Detail.
While the image above covers the big picture, those who want to spot money laundering will need to understand the role of each stage, as well as how they may function in different ways depending on the scheme.
Placement
Placement is the stage where the money first enters the financial system. In this step, it may be deposited in a bank, added to the accounts of an existing business or disguised as a transaction (for example, for products that are never provided).
Placement is often achieved through a series of regular small transactions. Criminals who make the mistake of depositing large amounts of unaccountable cash are often quickly caught. No matter the scheme, the placement Of course, many people who attempt money laundering schemes have no past experience and don’t know what behavior is likely to be flagged. This step is widely considered to be the riskiest. If the deposits are scrutinized at this stage, none of the justifications that will exist later in the scheme will yet be in place.
Layering
Layering is the stage where the illicit money is blended with legitimate money or placed in constant motion. Layering often involves generating so many different transactions that the laundered cash disappears into them. Illicit money can be used to gamble, then placed into stocks, then shuffled around in different currencies and then used to buy financial products like life insurance policies.
Layering can work in dramatically different ways depending on the scheme. In all schemes, however, the purpose of the layering stage is to make it difficult for even a skilled accountant to differentiate between money that came from legal transactions and money that came from funds that were placed for laundering.
While layering is typically a safer stage than placement, those who are not often can still be caught easily if they make mistakes. For example, if a business that averaged $5,000 in transactions a day for years were to suddenly start processing $10,000 in transactions a day, it might attract scrutiny.
Integration
Integration is the stage where the money re-enters the legitimate economy. When the money appears to come from legal businesses or investments, or the trail has become to difficult to follow, the money can then be placed into larger-scale investments.
Integrated cash is often placed into luxury assets, properties, long-term investments, and new businesses. Integrated cash may be used to purchase assets that can be used to facilitate future money laundering more safely.
Our next part of this series is based on- Examples Of Money Laundering
Stay Tuned in because a lot to learn in this series.
