Money laundering

Money laundering generally refers to financial transactions in which criminals, including terrorist organizations, attempt to disguise the proceeds, sources or nature of their illicit activities.

1. What is an example of money laundering?
2. What are the three types of money laundering?
3. Why is called money laundering?

What is an example of money laundering?

Reselling assets

Cash can be made to look legitimate through reselling. Criminals may purchase big-ticket items with cash, and then quickly resell those items to have money they are able to actually use in their bank account. Real estate, luxury cars, and other such items are popular placements for money laundering.

What are the three types of money laundering?

Although money laundering is a diverse and often complex process, it generally involves three stages: placement, layering, and/or integration. Money laundering is defined as the criminal practice of making funds from illegal activity appear legitimate.

Why is called money laundering?

Money Laundering is called what it is because it perfectly describes what takes place – illegal or dirty money is put through a cycle of transactions, or washed, so that it comes out the other end as legal or clean money.