MCJ 5135
Unit VIII Essay
Columbia Southern University
MCJ 5135: Theory of Crime and Criminology
Unit VIII Essay
Introduction
Money-laundering is defined as “ the concealment of the origins of illegally obtained
money, typically by means of transfers involving foreign banks or legitimate businesses” (Ox-
ford Languages, 2020). There are multiple steps in the money laundering process: placement,
layering, and integration. Each of the three steps is vital for the criminal to be able to pull off the
laundering without getting caught. Placement is the first step in the money laundering process.
Placement is when the criminal obtains the illegal money and moves it into a bank or other finan-
cial system. This is the most dangerous step of the process and so this step has the highest chance
of being caught (Schneider & Windischbauer, 2010). Layering is the second step within the
money laundering process. Layering is when the criminal hides the trail of money by moving it
into accounts of companies, creating false invoices, and wiring money into off-shore bank ac-
counts (Daigle & Hagan, 2020). The third and final step in the money laundering process is inte-
gration. Now that the money appears to be “legal” money it can be used for anything from nor-
mal every day use to investments and everything in between (Schneider & Windischbauer,
2010). Money laundering serves as the main method of hiding illegal organized crime.
Money-Laundering
Criminals use money laundering to hide their illegally obtained money. Using legitimate
businesses is a very popular method to hide their criminal activity. There is a couple of ways that
a criminal can launder money using businesses. The first way is to overreport the revenue that is
coming into a business. The criminal would then add illegal money and legal money together, in
Unit VIII Essay
Columbia Southern University
MCJ 5135: Theory of Crime and Criminology
Unit VIII Essay
Introduction
Money-laundering is defined as “ the concealment of the origins of illegally obtained
money, typically by means of transfers involving foreign banks or legitimate businesses” (Ox-
ford Languages, 2020). There are multiple steps in the money laundering process: placement,
layering, and integration. Each of the three steps is vital for the criminal to be able to pull off the
laundering without getting caught. Placement is the first step in the money laundering process.
Placement is when the criminal obtains the illegal money and moves it into a bank or other finan-
cial system. This is the most dangerous step of the process and so this step has the highest chance
of being caught (Schneider & Windischbauer, 2010). Layering is the second step within the
money laundering process. Layering is when the criminal hides the trail of money by moving it
into accounts of companies, creating false invoices, and wiring money into off-shore bank ac-
counts (Daigle & Hagan, 2020). The third and final step in the money laundering process is inte-
gration. Now that the money appears to be “legal” money it can be used for anything from nor-
mal every day use to investments and everything in between (Schneider & Windischbauer,
2010). Money laundering serves as the main method of hiding illegal organized crime.
Money-Laundering
Criminals use money laundering to hide their illegally obtained money. Using legitimate
businesses is a very popular method to hide their criminal activity. There is a couple of ways that
a criminal can launder money using businesses. The first way is to overreport the revenue that is
coming into a business. The criminal would then add illegal money and legal money together, in
