Explanation:
Placement is indeed a phase of money laundering. It involves all methods intended to disguise the origins of the funds. This could include cash transfer to businesses, false invoicing, use of trusts and offshore companies, 'smurfing' (keeping a bank account or credit card under the Anti-Money Laundering (AML) reporting threshold by making a series of small transactions rather than a single large transaction), using foreign bank accounts, and so on. The goal of this phase is to introduce the illicit money into the financial system in such a way that it appears to be legitimate.
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Q.5124 A newly hired money laundering risk officer is presenting on AML risk management. He highlights that it is common for criminals to disguise the proceeds of their criminal activities into legitimate sources of funds in two or three phases. Which of the following is a phase of money laundering?
A
Placement
B
Deterrent
C
Detection
D
Protection