CIMA BA4 · Chapter 4 · Question 10 of 10
Which of the following situations is most likely to involve the 'layering' stage of money laundering?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Repeatedly transferring funds between shell companies in several countries to obscure the audit trail
Explanation
Layering involves complex series of transactions, often across borders and through shell companies, designed to distance the funds from their criminal source. Depositing cash is placement, and buying assets with apparently clean funds is integration. Reporting is a compliance action, not laundering.
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