How many stages of money laundering are there?

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Money laundering is typically described through three stages: placement, layering, and integration. In placement, illicit funds enter the financial system through deposits, purchases, or other moves that distance them from the crime. Layering involves a complex web of transfers and transactions—across accounts, countries, and financial instruments—to obscure the money’s origin. Integration is when the funds reappear as seemingly legitimate wealth, often via investments, real estate, or business activities that blend into the economy. While real-world schemes can blur or combine these steps, the standard framework used in practice and exams is three stages, making that the best answer.