How does money laundering work? - Delena D. Spann

What is the main goal of money laundering?

• To make illegal money look like it came from legal sources.

• To hide money from family members.

• To invest money in risky ventures.

• To donate money to charities.

What are the three main steps involved in money laundering?

• Collecting, spending, and saving.

• Placement, layering, and integration.

• Hiding, moving, and investing.

• Earning, transferring, and withdrawing.

During which step of money laundering are criminals most likely to be caught?

• When they invest the money in a legal business.

• When they transfer money between many accounts.

• When they first introduce illegally obtained money into the financial system.

• When they buy expensive cars or artwork.

Which of these actions is an example of the 'layering' step in money laundering?

• Depositing large amounts of cash into a bank account.

• Using multiple transactions to move money through different accounts or buy assets.

• Claiming money as salary from a fake charity.

• Spending the cleaned money on everyday items.