Which of the following is NOT one of the three stages of money laundering?

Which of the following is NOT one of the three stages of money laundering?

• A. Placement
• B. Transference
• C. Layering
• D. Integration

Answer: (B)

The correct answer is transference, as it is not recognized as one of the three primary stages of money laundering. The three established stages of the money laundering process are placement, layering, and integration. Placement is the initial stage where illicit funds are introduced into the financial system. This can involve depositing cash into banks or using it to purchase assets that can then be converted to legitimate funds. Layering follows, which involves obscuring the origins of the funds to make tracing them difficult. This is often achieved through a series of complex transactions that separate the money from its illegal source. Finally, integration is the stage where the laundered money is reintroduced into the legitimate economy, making it difficult for authorities to detect its illegal origins. Transference does not fit into this framework, as it is not an established stage of the laundering process. The focus is on the systematic approach of placement, layering, and ultimately integrating funds into the financial system.

The correct answer is transference, as it is not recognized as one of the three primary stages of money laundering. The three established stages of the money laundering process are placement, layering, and integration.

Placement is the initial stage where illicit funds are introduced into the financial system. This can involve depositing cash into banks or using it to purchase assets that can then be converted to legitimate funds.

Layering follows, which involves obscuring the origins of the funds to make tracing them difficult. This is often achieved through a series of complex transactions that separate the money from its illegal source.

Finally, integration is the stage where the laundered money is reintroduced into the legitimate economy, making it difficult for authorities to detect its illegal origins.

Transference does not fit into this framework, as it is not an established stage of the laundering process. The focus is on the systematic approach of placement, layering, and ultimately integrating funds into the financial system.