Process: Placement → Layering → Integration
Placement: The launderer introduces his illegal profits into the financial system. After the funds have entered the financial system.
Layering: The Launderer engages in a series of conversions or movements of the funds to distance them from their source. Having successfully processed his criminal profits through the first two phases, the launderer then moves them to the third stage.
Integration: Having successfully processed his criminal profits the Launderer’s funds re-enter the legitimate economy.