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What is Money Laundering ? -
Topic 1: Definition of AML
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What is Money Laundering ?
Money Laundering Stages:
Money laundering typically involves independent steps that may occur separately or simultaneously.
- Placement: process of physically placing bulk cash derived from criminal activities into the financial system or legitimate commerce.
Exemple: a customer who sporadically makes large cash deposits into his/her personnal checking account.
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Layering: process of separating the source of cash from its criminal origins by passing it through several financial transactions.
Exemple: a customer who deposits cash and then makes wire transferts to move the cash from one account to another.
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Integration: process of combining illegal funds with legally obtained funds and providing a legitimate explanation for its ownership.
Exemple: a customer who uses laundered and legitimate funds to purchase investments.
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