ExpertEasy2 marksMultiple Choice
ACCA · Question 25 · Syllabus H: Corporate fraudulent and criminal behaviour
In the context of money laundering, what does the 'layering' stage involve?
In the context of money laundering, what does the 'layering' stage involve?
Answer options:
A.
The initial introduction of illicit funds into the financial system.
B.
The complex series of transactions designed to obscure the audit trail and sever the link with the original crime.
C.
The final integration of the funds into the legitimate economy, appearing as legally earned wealth.
D.
The reporting of suspicious transactions to the authorities.
How to approach this question
Recall the three distinct stages of the money laundering process.
Full Answer
B.The complex series of transactions designed to obscure the audit trail and sever the link with the original crime.✓ Correct
Money laundering typically involves three stages: 1) Placement (putting dirty money into the financial system), 2) Layering (moving the money around through complex transactions to hide its origin), and 3) Integration (extracting the money as clean, legitimate funds).
Common mistakes
Confusing layering with placement or integration.
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