ExpertMedium2 marksMultiple Choice
ACCA · Question 12 · Syllabus C: Business functions, regulation and technology
FinServe, a cross-border financial institution, is training its staff on anti-money laundering (AML) regulations. A trainer describes a scenario where illicit cash is moved through a series of complex international wire transfers between shell companies to obscure the audit trail and distance the funds from their illegal source.
Which stage of the money laundering process does this describe?
FinServe, a cross-border financial institution, is training its staff on anti-money laundering (AML) regulations. A trainer describes a scenario where illicit cash is moved through a series of complex international wire transfers between shell companies to obscure the audit trail and distance the funds from their illegal source.
Which stage of the money laundering process does this describe?
Answer options:
A.
Placement
B.
Layering
C.
Integration
D.
Structuring
How to approach this question
Recall the three stages of money laundering: Placement (in), Layering (spin), Integration (out). Complex transfers to hide the source is Layering.
Full Answer
B.Layering✓ Correct
Money laundering has three stages: 1. Placement (putting cash into the system), 2. Layering (complex transactions to hide the audit trail), and 3. Integration (extracting the money as legitimate wealth). The scenario describes Layering.
Common mistakes
Confusing Layering with Placement. Placement is just getting the cash into a bank; Layering is the complex movement afterward.
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