Process In Money Laundering

832 Words4 Pages
Process in Money Laundering Money laundering involves three process which are placement, layering and integration. Placement is the process to place the money or cash from the illegal activity into the financial system. Second process is layering, where it is a transaction in a financial system to disguise the illegal money. Last process in money laundering is integration, where the criminal earn back the money in cleaned. 1) Placement First process in money laundering is placement. Placement is an introduction process to place the money in the financial system. This process is where the criminal want to place the bulk amount of money into the financial system. Placement is the stage where it very easily to be caught by the officers because…show more content…
Bulk cash smuggling is a physical movement of illegal currency to another jurisdiction smuggling. For example, the money are deposited in the financial institution where it have a greater secrecy and less rigorous money laundering enforcement which is Offshore Bank. Offshore Bank in Malaysia is located in Labuan and it provide banking service mainly for client who are not physically residing in the country of the bank. The main benefit of Offshore Banking is to diversification of the investment internationally and heightened banking confidentiality. It means that, Offshore Banking are promised to keep the privacy of the client’s financial…show more content…
Shell companies is where it disguise the true owner of money. Shell companies is a fake company that exist for no reason unless to launder the illegal money. They take the dirty money or illegal money as a payment from the goods or services provided by that particular company but actually the company not provide any goods or services. In this case, the criminal simply created the appearance of legitimate transactions through fake invoice and balance sheet. Some of the criminal will use the money from the illegal activity to spend on gambling. Gambling is an activity on betting some amount of money or something valuable on an event with an uncertain outcome. But, gambling activity is refer to the illegal activity or forbidden action because of uncertainty of return. Criminal will bet the money that he get from the illegal activity for the gambling as an option to cleaned the money to be legal. Last method in placement process is purchasing an assets. Assets are purchased using an illegal money. This method is a classic method in the money laundering. The purpose of this method is to change the form of illegal cash into some equally valuable and this method are less suspicious form. Criminal will purchase the property and sell it back to get the money again. To the outsider, this method is a common purchase and nobody will suspicious that the money that he use before is the illegal
Open Document