Understanding Money Laundering: What It Is, How It Works, and Its Impact
Understanding Money Laundering: What It Is, How It Works, and Its Impact Money laundering is a financial crime that plays a crucial role in facilitating other illegal activities such as drug trafficking, terrorism, tax evasion, and organized crime. At its core, money laundering refers to the process of making illegally obtained money appear legitimate by disguising its origin. This article will explore the methods used in money laundering, its impact on society, and the legal measures taken to combat it. What Is Money Laundering? Money laundering involves a three-stage process designed to obscure the illegal source of funds. These stages are typically referred to as placement , layering , and integration : Placement : In this first phase, the illicit funds are introduced into the financial system. This can be done through methods like depositing money into banks, purchasing assets, or using it in gambling activities. The goal is to "place" the money in a way that it c...