ACCA LW · Chapter 12 · Question 7 of 11
Money laundering is commonly described as involving three stages. Which stage involves passing criminal proceeds through a series of transactions to disguise their source?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Layering
Explanation
Placement is the initial introduction of criminal proceeds into the financial system, layering involves complex transactions to obscure the audit trail, and integration is the return of the funds to the legitimate economy so that they appear clean. Tipping off is a separate offence of disclosing information likely to prejudice an investigation, not a stage of laundering.
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