Money laundering is the process of disguising the origins of illegally obtained money to make it appear legitimate. Concealing assets derived from criminal activities is a criminal offence under anti-money laundering (AML) laws.
Definition: "Concealing" means hiding or disguising the true nature, location, source, ownership, or control of funds derived from criminal activity.
Legal Framework: The Financial Action Task Force (FATF) and UK Proceeds of Crime Act 2002 (POCA) classify "concealing" as an offence.
Three Stages of Money Laundering:
Placement: Introducing illicit funds into the financial system.
Layering: Concealing the source via multiple transactions.
Integration: Reintroducing "cleaned" funds into the economy.
???? Reference: CISI Wealth & Investment Management (AML), FATF Guidelines, UK POCA 2002.
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