Which of the following best describes 'placement' in money laundering?

The term 'placement' in the context of money laundering refers specifically to the initial act of introducing illegal funds into the financial system. This step is crucial because it marks the transition of illicit money from its original source into a form that can be accessed and used more freely within financial institutions.

Placement typically involves activities like making cash deposits into banks, purchasing assets, or using financial instruments, which all serve to distance the money from its illegal source. This is essential for the money laundering process, as it lays the groundwork for subsequent steps—layering and integration—which further obscure the origin of the funds. Thus, identifying placement as the introduction of illegal funds highlights its foundational role in the money laundering scheme.