From the course: The ABCs of the Banking and Insurance Business: AML, KYC, the NAIC, IFRS, and More

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Introduction to money laundering

Introduction to money laundering

From the course: The ABCs of the Banking and Insurance Business: AML, KYC, the NAIC, IFRS, and More

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Introduction to money laundering

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- [Instructor] Money laundering. What is it? How does it work? And why is it such a critical issue for the financial system? In this video, we are going to examine why anti-money laundering or AML practices are essential for banking operations. So what is money laundering? Money laundering is the process of disguising the origins of illegally obtained money to make it appear legitimate. In essence, criminals use this method to integrate their illicit funds into the legitimate economy, making it harder to trace their activities. Now, money laundering isn't new. Its origins trace back to activities like tax evasion, organized crime. But over the decades, money laundering techniques have evolved, keeping pace with advancements in technology and global finance as a result. Money laundering typically happens in three stages. Placement, layering, and integration. Placement involves introducing illicit money into the financial system. Often through deposits, purchases, or transfers. Layering…

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