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Hello Tutor,
I am quite confused the stages of the money laundering. For Dec – 2018, because the question may be long, I hope you can see this exam,
My question. Why Mr Blackers’ sale to business associate for $33,000 may be example of placement ? and Why illegal funds to purchase international property may be examples of placement.
I think that the flows of transaction: Mr Blackers receives money -> transfer to the oversea bank -> purchase property -> sell property. So, Placement stages: Obtain ‘dirty’ money. Layering stage: Transfer to oversea bank and Integration stages: Purchase property and sell property.
It may be that my mindset may be wrong when I adopt into this question. I hope you to sperate the specific stages of money laundering. Thanks Tutor a lot !
Welcome to my forum!
Placement is the first stage of money laundering “whereby ‘dirty’ money is placed into the legal, financial systems”. So the transfer $33,000 (from where? presumably cash) into the banking system appears to be the placement. It could have been part of layering if the transfer offshore came from another bank (but we don’t know that). Further layering could be going on offshore – but we don’t know that. The integration is when the money is absorbed into the economy e.g. via real estate. So if the $33,000 materialises in the purchase of property that would be integration.
I agree that the sentence that the purchase is ‘placement’ and the sale is ‘integration’ is confusing – following on from the above, the purchase would be ‘integration’ (you don’t have to wait on the sale of an investment for the dirty money to be regarded as legitimised – e.g. the purchaser would have legal title at this stage).
If Mr Blacker’s was simply using undeclared cash to buy property outright that’s hardly a sophisticated method of money laundering (!)
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