Page 114 - CFF

Money laundering

• Process of placing illegally obtained funds into the financial system by

making the funds appear to come from a legitimate source.

• Three steps

1. Placement — Depositing the funds into a financial institution.

2. Layering — Moving money to disguise the initial deposit.

3. Integration — Making the funds available for use.

• Anti-money laundering laws make it difficult for money launderers to find

safe harbors for their activities in financial institutions.

• FinCEN is the primary enforcer of anti-money laundering laws in the

United States.

12 © 2019 Association of International Certified Professional Accountants. All rights reserved.
12