Module: General Practice
Q80: Which of the following statements accurately describe the stages and techniques of the Money Laundering cycle?
The standard chronological order of operations is Placement, followed by Layering, followed by Integration.
"Structuring" or "Smurfing" is a technique used during the Integration stage to purchase high-value assets without alerting authorities.
Layering involves distancing illegal funds from their source through complex financial transactions, such as wire transfers between multiple jurisdictions.
Integration occurs when "washed" funds re-enter the legitimate economy, for example, through the purchase of luxury real estate or businesses.
"Structuring" or "Smurfing" is a technique used during the Integration stage to purchase high-value assets without alerting authorities.
Layering involves distancing illegal funds from their source through complex financial transactions, such as wire transfers between multiple jurisdictions.
Integration occurs when "washed" funds re-enter the legitimate economy, for example, through the purchase of luxury real estate or businesses.
✅ Correct Answer: B
The correct answer is Option B. The cycle is Placement, Layering, Integration.
Layering distances funds, and Integration re-enters them into the economy.
Structuring belongs to the Placement stage, not Integration.
The three stages are a classic topic in the IIBF AML KYC Exam 2026.
Layering distances funds, and Integration re-enters them into the economy.
Structuring belongs to the Placement stage, not Integration.
The three stages are a classic topic in the IIBF AML KYC Exam 2026.