What are the three stages of money laundering?

Finance and operations training has a reputation of being complicated due to its reliance on math and complex policies. Nonetheless, it is fundamental to teach your employees about the mechanics of money laundering to prevent illegal practices from taking place. Luckily, animated videos can turn a tedious topic into a fun and engaging one that will surely capture the attention of your audience. Use this video template to create your own dynamic training video in Vyond Studio.

Video Transcription: What Are the Three Stages of Money Laundering?

[Narrator]

Money laundering happens in TV movies, crime novels, and here. Yep, money laundering can happen anywhere, including right under your nose.

[Employee]

In my sandwich?

[Narrator]

No, no, not in your sandwich. That was a metaphor. In 2020 the United Nations estimated that $800 billion to $2 trillion disappeared through money laundering. Want to learn how to stop money laundering? First, you'll need to learn how it's done. Money laundering is the process of making dirty money clean.

No, not like that. Money laundering is the process of making dirty money clean so that criminals can actually use their ill-earned cash without getting tracked down. The first stage of money laundering is placement. When the dirty money is placed in a legitimate financial system like a bank or a business. Cash intensive businesses where transactions aren't closely regulated, like bars and pawnshops, are especially vulnerable. So let's say you illegally got $10 million. Where would you put it?

[Employee]

Uh... In my sandwich?

[Narrator]

Enough with the sandwich. To hide that kind of money, a fraudster might create a few cash-heavy, legitimate businesses like an antique shop or a hair salon. Once the money is placed in the salon, it's time to move to the second stage of money laundering, which is layering. Layering is the act of moving the money through complex transactions to make it virtually untraceable. So at the salon, you might gradually slip the dirty money into an unregulated tip jar to mingle with legitimate cash so you can't tell the cash apart. The final stage of money laundering is integration. When you take that mixed-up money to the bank, once you've deposited the dirty money, along with the tips into the salon's bank account, it becomes legitimate, untraceable, and expendable cash you could use to buy anything you want, including a sandwich. Understanding the basic mechanics of money laundering is key to knowing your customer and advancing the fight against real-life crime.

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