What is an example of a placement technique in money laundering?

The placement stage in money laundering refers to the initial step where illicitly obtained cash or assets are introduced into the financial system in a way that makes it difficult to trace their origins. Depositing cash into a bank account is a classic example of a placement technique. This action allows individuals to convert their physical cash into a form that appears legitimate, effectively integrating it into the financial system.

In this stage, the primary goal is to conceal the illegal source of the funds. By placing the money in a bank, it becomes more challenging for authorities to establish a direct link to its illegal origins. This initial step is crucial for the overall money laundering process, as it sets the stage for subsequent layering and integration stages, where further attempts to obscure the origin of the funds occur.

Other options, while related to money laundering, do not represent the placement stage as clearly. For instance, purchasing high-value assets involves a subsequent step that usually occurs after cash has been already placed within the financial system. Transferring money between multiple accounts might help in layering, which is a distinct phase where the aim is to confuse the tracing of the funds. Investing in government bonds is a more sophisticated strategy that typically occurs in the integration phase, where the goal is to utilize the