FATF ( Financial action task force) mainly classified Money laundering in 3 stages.
1. Placement – Placement is a process of injecting illegal money into the financial System means putting money into commercial banks, investment banks, stock markets, etc.
Placement can be done through various means like:-
• Blending Of Funds – Blend or combine illegal cash with legal or legitimate cash earnings.
• Fake or inflated Invoices – Creating invoices of goods and services provided either the goods and services not provided at all or Not provided to that extent.
• Structuring – Depositing money below the threshold limit or depositing money in other people’s accounts under the threshold limit.
2. Layering – It is the process of moving and manipulating funds by doing multiple transactions so that tracing back the original source becomes very difficult or impossible.
3. Integration – It is the third stage of money laundering in which money reaches its beneficiary who uses it for his desired objective.
There are some popular methods of money laundering like
• Transfering Money into overseas banks • Creating Shell Companies • Investing in legitimate business, etc.
Though AML laws have been slow to catch up to newer types of cybercrimes, as most of the laws are still based on detecting illegal money as it passes through traditional banking institutions and other channels.
Site Title 