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Sri Lankan Law Forum » Criminal Law Forum » What are the stages of Money Laundering?

What are the stages of Money Laundering?

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1 What are the stages of Money Laundering? on Wed Apr 11, 2018 3:48 pm

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1st Stage - Placement
The initial stage of the process involves placement of illicitly earned funds into financial system, usually through a financial institution. This can be accomplished by placing cash deposits into bank accounts or cash purchase of shares or insurance contracts. In the case of bank deposits large amount of cash are broken into smaller, less conspicuous amounts and deposited over time in different branches of a single financial institution or in multiple financial institutions.

2nd Stage- Layering
The second money laundering stage, layering occurs after the ill-gotten funds have entered into the financial system, at which point the funds, securities or insurance contracts are converted or moved to other institutions further separating them from their criminal sources. Such funds could then be used to purchase other securities, insurance contracts or other easily transferable investment instruments and then sold through another institution.

3rd Stage - Integration
The third stage involves the integration of funds into the legitimate sector. This is accomplished through the purchase of assets such as real estate, securities, other financial assets or luxury goods such as cars, gems & jewelries etc.

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