Placement, layering and integration
Placement, layering and integration are a common model of money laundering. Placement introduces criminal proceeds into a financial system; layering moves or transforms them through transactions to obscure their source; integration returns them to the economy in an apparently legitimate form. Actual laundering schemes may combine, repeat or omit stages. Accountants apply risk-based due diligence and reporting rules under applicable law.
Worked example
A criminal deposits cash through several accounts, transfers it through entities in multiple jurisdictions and later uses it to buy property, creating an apparently legitimate asset.
Common mistake
The three-stage model is a teaching aid, not proof that every suspicious transaction follows a fixed sequence or is necessarily criminal.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |