Figure 1
A process diagram illustrates the money laundering cycle through three stages: placement, layering, and integration, showing how illicit funds enter, circulate, and re-enter the economy through legitimate financial activities.The figure explains the three-stage process of money laundering. The cycle begins with placement, where illegally obtained money is introduced into the financial system. In the layering stage, funds are transferred through multiple accounts, offshore banks, and false invoicing to obscure their origin. Finally, in the integration stage, the laundered money is reinvested into legal ventures such as purchasing assets or business investments. Arrows depict the continuous flow among these stages, illustrating how criminal proceeds are disguised and reintegrated into legitimate economic activities.

Money laundering cycle

Source:UNODC (2011) 

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