Money Laundering

Although modern money laundering methods vary greatly, most share three basic steps: placement, layering, and integration. Placement is where illegally obtained money is converted into assets that seem legitimate. That's often done by depositing funds into a bank account registered to an anonymous corporation or a professional middleman. This step is where criminals are often most vulnerable to detection since they introduce massive wealth into the financial system seemingly out of nowhere. The second step, layering, involves using multiple transactions to further distance the funds from their origin. This can take the form of transfers between multiple accounts, or the purchase of tradable property, like expensive cars, artwork, and real estate. Casinos, where large sums of money change hands every second, are also popular venues for layering. A money launderer may have their gambling balance made available at a casino chain's locations in other countries, or work with employees to rig games. The last step, integration, allows clean money to re-enter the mainstream economy and to benefit the original criminal. They might invest it into a legal business claiming payment by producing fake invoices, or even start a bogus charity, placing themselves on the board of directors with an exorbitant salary.