AML & CTF Training: ML and TF explained

Front

What is the first (1st) stage of the money laundering process?

Back

Placement

Answer explanation

Correct!

The first stage of the money is where illicit funds are introduced (placed) into the financial system. This can be achieved through deposits, transactions or purchasing assets.

Front

What is the objective of the layering stage of Money laundering?

Back

To obscure the origin of illicit funds

Answer explanation

Correct! Layering is the separation of criminal proceeds from their source by creating complex layering of financial transactions designed to defeat the audit trail and provide anonymity.

Front

True or False: Terrorist organisations rely only on illicit funds to facilitate and engage in terrorist activities

Back

FALSE

Answer explanation

Correct! Terrorist organisations use funds from both legal and illegal sources to facilitate their activities

Front

What is an example of terrorism financing? a) Legitimate donations used for terrorism b) Money Laundering to support terrorism c) Personal savings used by terrorists

Back

All of the above

Answer explanation

Correct! All of the listed methods are ways in which terrorists fund their activities

Front

Which stage of the money laundering process does the following activity fall into? A money launder establishes or invests in a legitimate business

Back

Integration

Answer explanation

Correct!

A money launderer may set up a legitimate business or invest in an existing one, where illicit funds are used to pay for operations, overhead, or even profits. The business serves as a front, allowing criminal funds to be mixed with legitimate business earnings.