CIMA BA4 · Chapter 4 · Question 4 of 10
A criminal pays cash from drug sales into many small bank deposits below reporting thresholds. Which stage of money laundering does this represent?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Placement
Explanation
Placement is the initial stage in which illicit cash is introduced into the financial system, often by splitting it into small deposits ('smurfing'). Layering would involve moving the money through complex transactions, and integration would return it as apparently clean funds. Tipping off is a separate offence, not a stage.
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