Part 4/10:
Step 1: Placement
The initial and most perilous stage, placement, involves introducing illicit funds into the legitimate economy. Criminals often exploit cash-heavy enterprises such as bars, hair salons, or car washes, which allow for a blend of legitimate and illegitimate incomes.
Step 2: Layering
Following placement, the funds must be obscured through layering. This process involves shuffling money through various channels—such as investing in shell companies located in tax havens or transferring funds across international borders—to create confusion and complicate the paper trail.