About ML

What is Money Laundering?

  • Money Laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activities.
  • Turning dirty money from criminal activities into clean money.
  • Converting dirty money into supposedly legitimate assets.

Three Stages of Money Laundering

  1. Placement - Money from criminal activity is placed into the financial system (e.g. a bank account).
  2. Layering - Using multiple transactions to hide the true origin of the funds (e.g. splitting the money and moving it through lots of accounts in various locations).
  3. Integration - Money passes from the layering stage and is mingled with legitimate money and assets (e.g. purchase of property which can later be sold for legitimate funds).

Money Laundering Must be Stopped Because It Poses Risks to:

  • Economic and social stability;
  • The reputation of the financial sector;
  • Stability of financial institutions;
  • The country’s ability to prevent large scale corruption;
  • The country’s reputation with regards to adoption of international standards and best practices.

Last Updated: 7 Jul 2021