What is Money Laundering

Money laundering is a huge topic in Malaysia for the past few years.

One of the most famous money-laundering story that ever happened in Malaysia involved about the 1MDB scandal.

So what actually is money laundering?

It is a process of cleaning "dirty money" to become clean money.

Definition:

“A process of converting cash/property which is derived from criminal activities to give it the appearance of having been obtained from a legitimate source”.


The 3 Stages in Money Laundering

1.PLACEMENT

●Physical disposal of cash proceeds derived from illegal activity.

2.LAYERING

●Separating illicit proceeds from their source by creating complex layers of financial transactions designed to disguise the audit trail and provide anonymity.

3.INTEGRATION

●The turning of criminally derived wealth into legitimate funds

Money laundering is an illegal activity that we all should aim to stop.

Let's practice integrity in everything that we do.

Honesty will always profit in the long run.

Happy Investing.