The process of creating the appearance that large amounts of money obtained from serious crimes. Criminals want their illegal funds laundered because they can then move their money through society freely, without fear that the funds will be traced to their criminal deeds. It usually consists of three steps:
i. Placement- is the fund depositing or conversion into negotiable instruments.
ii. Layering- is wire transfer through a series of accounts in attempt to hide the
true origin of
funds.
iii. Integration- involves the movement of
layered funds, which are no
longer traceable to their criminal origin.