Which of the following pairs is are correctly matched in the context of Money laundering 1 Placement...........

Economic Affairs Black Money

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Which of the following pairs is/are correctly matched in the context of Money laundering?

1.Placement: Continuous conversions or movements of funds, within the financial or banking system.

2.Layering: Illegal funds from criminal activities introduced the into the financial systems

3.Integration: Illegal funds reach the legitimate economy.

Select the correct answer using the codes given below

1 only

3 only

1 and 2 only

2 and 3 only

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Explanation:

3 only

Placement: This is the initial stage of money laundering and involves introducing "dirty money" into the financial system. It can include activities like breaking up large amounts of cash into smaller, less suspicious transactions, and then depositing them into banks.

Layering: This is the second stage and involves separating the illicit proceeds from their source by creating complex layers of financial transactions designed to confuse authorities and make it difficult to trace the origin of the funds.

Integration: This is the final stage where the "cleaned" money is reintroduced into the legitimate economy, making it difficult to distinguish from legally obtained funds.

Therefore, the correct answer is "3 only," as Integration corresponds to the illegal funds reaching the legitimate economy.

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