ExpertEasy2 marksMultiple Choice
ACCA · Question 15 · Business & Technology
Section A
A criminal organization attempts to legitimize cash obtained from illegal drug sales by taking the physical cash to "Grand Casino", buying casino chips, playing a few games, and then cashing out the remaining chips for a cheque from the casino.
Which stage of the money laundering process does the initial purchase of casino chips with illicit cash represent?
Section A
A criminal organization attempts to legitimize cash obtained from illegal drug sales by taking the physical cash to "Grand Casino", buying casino chips, playing a few games, and then cashing out the remaining chips for a cheque from the casino.
Which stage of the money laundering process does the initial purchase of casino chips with illicit cash represent?
Answer options:
A.
Placement
B.
Layering
C.
Integration
D.
Extraction
How to approach this question
Identify the first step where physical dirty money enters a legitimate institution. This is Placement.
Full Answer
A.Placement✓ Correct
Money laundering has three stages: Placement (introducing cash into the system), Layering (moving it around to create confusion), and Integration (extracting it as clean money). Buying chips with dirty cash is Placement.
Common mistakes
Confusing Placement with Layering.
Practice the full ACCA BT — Business & Technology Practice Exam 3
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