Certified Fraud Examiner 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Which of the following describes the action taken in 'Placement' during money laundering?

Integrating illegal profits into marketplace

Layering funds to obscure their origin

Injecting illegal profits into a financial system

In the context of money laundering, 'Placement' refers specifically to the initial stage where illegal profits, often derived from criminal activities, are introduced into the financial system. The intent during this stage is to make the illicit funds appear legitimate. By injecting these illegal profits into various financial avenues, such as banks, casinos, or businesses, the goal is to separate the money from its illegal source as much as possible.

This action is crucial as it sets the stage for further laundering processes that may include layering, where the funds are moved around to obscure their origins, and ultimately integration, where the money is made to appear as legitimate income. The placement activity is essential because it initiates the money laundering cycle, making it a key factor in understanding the overall strategy employed by individuals intending to disguise the true source of their funds.

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Disposing of evidence related to criminal transactions

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