Question of the Week

Money laundering has become a specific concern in all legitimate financial institutions worldwide. Regardless of the exact means by which the attempt to launder the money, distinct phases have been identified. These are:

I. Placement
II. Intermediation
III. Layering
IV. Integration

a) II, III, IV
b) I, III, IV
c) I, II, III
d) I, II, III, IV


The correct answer is b).

There are three phases to money laundering. Placement is the physical disposal of the initial proceeds of money derived from illegal activities. Layering involves the creation of a set of transactions--often with one financial institution in several jurisdictions--designed to confuse the single source of funds. Integration, the final phase involves placing the laundered funds, often along with legitimate funds, into financial institutions.

Financial Professionals
  1. the general ledger is the record of a company's entire financial transaction history.

    What's a General Ledger?

  2. Several things factor into the salary of a financial advisor. Here's a look.
    Investing Basics

    How Much Does A Financial Advisor Earn?

  3. These 5 strategies offer financial advisors a blueprint on how to grow their practices.

    Growth Strategies For Financial Advisors

  4. If you're considering investing in China and want to know when to buy, sell, hold or stay away, consider these economic indicators.

    Eyeing China? Consider These Economic Indicators

  5. Whether you're a saver or a financial advisor who want to give their clients a leg up, these 8 tips are essential for financial planning.
    Investing Basics

    8 Essential Tips For Retirement Saving