Which is not one of the three classic stages of money laundering?

Which is not one of the three classic stages of money laundering?

• A. Clearing
• B. Placement
• C. Layering
• D. Integration

Answer: (A)

Money laundering is described in three classic stages: placement, where illicit funds are introduced into the financial system; layering, which involves a series of transactions to obscure the money’s origin; and integration, where the funds are reintroduced into the legitimate economy. Clearing isn’t part of this framework; it refers to the settlement process in payment systems, not to the tactic sequence criminals use to hide and disguise funds. Because clearing doesn’t fit into the three-stage progression, it’s the term that doesn’t belong.

Money laundering is described in three classic stages: placement, where illicit funds are introduced into the financial system; layering, which involves a series of transactions to obscure the money’s origin; and integration, where the funds are reintroduced into the legitimate economy. Clearing isn’t part of this framework; it refers to the settlement process in payment systems, not to the tactic sequence criminals use to hide and disguise funds. Because clearing doesn’t fit into the three-stage progression, it’s the term that doesn’t belong.