Which term describes the final phase of money laundering where illicit funds are integrated into the legitimate economy?

The term that describes the final phase of money laundering, where illicit funds are integrated into the legitimate economy, is Integration. This phase is crucial because it represents the ultimate goal of money laundering, which is to make illegal gains appear legal.

During the integration phase, the launderer attempts to reintroduce the cleansed money into the financial system or the economy, often through various methods such as investments, purchasing assets, or making business transactions that seem legitimate. The objective here is to obfuscate the original source of the funds so that they can be utilized without raising suspicion.

The initial phases of money laundering, such as Placement and Layering, serve different purposes; Placement is the introduction of illicit funds into the financial system, while Layering involves a complex series of transactions designed to hide the source of the money. Structuring, on the other hand, refers to breaking down large amounts of illicit cash into smaller amounts to evade detection during the Placement phase. In contrast, Integration is where the aim is fully realized—illicit funds are successfully mixed with legitimate economy, allowing the launderer to use them as if they are legal earnings.