What is Money Laundering and Terrorist Financing?
Money laundering. Money laundering is a varied and often complicated process that can, but does not always, involve cash transactions. Illegally-obtained money is filtered through a series of transactions that eventually make the money appear to be obtained from “clean”, or legal, activities. The money laundering process has been described as having three phases that often overlap: Placement—Injecting ill-gotten proceeds, including cash, into the financial system through transactions such as bank deposits or the purchase of certain insurance products Layering—Separating illicit proceeds from their criminal source through complex financial transactions Integration—Putting the proceeds back into circulation in the economy, with the appearance of legality. Terrorist financing. Terrorist financing involves the use of money, which may be lawfully obtained, to fund illegal activities. Because the transactions often have a legitimate origin and can often involve small amounts of money, terror
