BANKING AFFAIRS

Detailed explanation-1: -The process of laundering money typically involves three steps: placement, layering, and integration. Placement surreptitiously injects the “dirty money” into the legitimate financial system. Layering conceals the source of the money through a series of transactions and bookkeeping tricks.

Detailed explanation-2: -Money laundering involves disguising financial assets so they can be used without detection of the illegal activity that produced them. Through money laundering, the criminal transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source.

Detailed explanation-3: -The most common form of money laundering is known as smurfing (or structuring). This method involves breaking up large amounts of cash into many smaller deposits. Further, money launderers will also spread these deposits over many different accounts to avoid detection.