Which stage of money laundering is focused on making illicit funds appear legitimate?

The correct answer is integration. This stage of money laundering revolves around the process of making illicitly obtained funds appear legitimate and reintroducing them into the economy. During integration, launderers take the layered funds, which have been distanced from their criminal origins through various transactions, and use them in ways that make them seem lawful. This can involve purchasing assets, investing in legitimate businesses, or conducting transactions that enable the funds to blend seamlessly into the financial system.

The primary goal of integration is to make the illicit funds indistinguishable from legitimate funds, allowing criminals to enjoy the fruits of their illegal activities without drawing attention. By the time the money reaches this stage, it is crucial for the funds to have undergone a series of obfuscating transactions that separate them from their illegal source, which is done in the earlier layering stage.

The focus on making the funds appear legitimate is what distinctly characterizes the integration phase of money laundering, solidifying its role in the overall laundering process.