Can anybody please explain the stages of Anti money laundering (placement, layering, integration) wi

Can anybody please explain the stages of Anti money laundering (placement, layering, integration) with very simple and practical example.

 

Placement is the first stage of money laundering in which the illegal money from criminal activities enters the financial system. For example, exchanging small notes for big notes, changing currency notes with DD or PO or other negotiable instruments etc.

 

Layering is the second stage of money laundering in which attempts are made to form a complex financial network of large number of financial transactions such that the origins of such moneys remains unknown.... example : multiple credits of a lump sum amount into small small parts across many accounts across the globe, buying insurance products, buying LC/BG or other financial instruments etc.

 

Integration is the third stage in which the illegal money is reintroduced into legitimate concerns by providing legitimate explanation for the source of funds ....for example investing in luxury goods, buying properties etc.