A case of Money laundering ostensibly appears to be an above-board financial transaction; however, the criminality underneath is hidden by a three-stage process:
- The first stage is when the crime money is injected into the formal financial System. This is called ‘placement’;
- In the second stage, money injected into the system is layered and spread over various transactions with a view obfuscate the tainted origin of the money. This process is called ‘layering’;
- In the third and the final stage, money enters the financial system in such a way that original association with the crime is sought to be obliterated so that the money can then be used by the offender or person receiving as clean money. This is called ‘Integration’.