ExpertHard2 marksMultiple Choice
ACCA · Question 14 · Business functions, regulation and technology
MetaEstate is a virtual real estate platform where users buy digital land. Criminals have started using stolen credit cards to buy digital land, immediately selling it to legitimate users for cryptocurrency, and then transferring the crypto to offshore wallets. Which stage of the money laundering process does the 'selling of the digital land to legitimate users' represent?
MetaEstate is a virtual real estate platform where users buy digital land. Criminals have started using stolen credit cards to buy digital land, immediately selling it to legitimate users for cryptocurrency, and then transferring the crypto to offshore wallets. Which stage of the money laundering process does the 'selling of the digital land to legitimate users' represent?
Answer options:
A.
Placement
B.
Layering
C.
Integration
D.
Structuring
How to approach this question
Recall the three stages of money laundering: Placement, Layering, Integration. The middle step, designed to confuse the audit trail by moving assets around, is Layering.
Full Answer
B.Layering✓ Correct
Money laundering has three stages: Placement (introducing dirty money), Layering (moving it around to create confusion and hide the origin), and Integration (bringing it back as 'clean' money). Trading virtual land to obscure the source is Layering.
Common mistakes
Confusing Layering with Integration. Integration happens when the criminal finally uses the cleaned money in the real world without suspicion.
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