What is the stage of money laundering that involves numerous complex transactions?

Layering is the stage of money laundering that involves a series of complex transactions designed to obscure the origins of illicit funds. This phase occurs after the initial placement of the money, where the illicit funds are introduced into the financial system. Layering aims to make the money difficult to trace by creating a complex web of transactions.

This can include multiple transfers between accounts, withdrawals, and deposits in different institutions or countries, which serve to disconnect the money from its illegal source. The complexity and numerous transactions reduce the chance that authorities will follow the trail back to the criminal activity.

In contrast, placement refers to the initial introduction of illegal funds into the financial system, while integration is the process of reintroducing the laundered money into the economy in a way that appears legitimate. The term "gradation" does not accurately describe a recognized phase of money laundering. Thus, layering is specifically characterized by the complexity and obscurity it introduces to the financial transactions involved.