Which phase of money laundering is characterized by the complexity of transactions?

The layering phase of money laundering is characterized by the complexity of transactions. During this stage, the primary objective is to obscure the origin of illegally obtained funds through a series of complex financial transactions. These transactions may involve transferring money between various accounts, using different financial institutions, or engaging in a variety of financial instruments. This complexity serves to create layers that make tracing the source of the funds more difficult for authorities.

Layering is essential in the money laundering process because it attempts to sever the link between the illicit funds and their source, thereby providing a layer of protection for the money launderer. Through various tactics like wire transfers, shell companies, and offshore accounts, the launderer can create a convoluted financial trail that hinders detection and investigation.

The other phases focus on different aspects of the money laundering process. Placement is about introducing illicit funds into the financial system, while integration refers to reintroducing the laundered funds into the economy as legitimate. Concealment is often used to describe strategies to hide or disguise the true nature of illicit funds. However, these phases do not emphasize the transactional complexity found in the layering stage, which sets it apart as the correct answer.