Describe the three steps of the money laundering cycle

What will be an ideal response?


The basic process of laundering money begins with placement of the funds into the legitimate U.S. market. Common methods of placement include creating shell corporations or fake cash-intensive businesses and smurfing, more technically known as structuring, whereby large amounts of cash are broken into increments less than
$10,000, to avoid federal reporting requirements, and deposited into various bank accounts.

The second step in the laundering process is layering, through which the money is cleaned by moving it around through a series of elaborate transactions, often involving offshore bank accounts and international business companies (IBCs). These multiple, complex transactions aim to obscure the connection between the money and the criminal group and to continue until the organization feels confident the money is adequately clean.

The third and final step in the money laundering cycle is integration, where criminals repatriate their money through seemingly legitimate business transactions. For example, the launderer creates a bogus export company in a free trade zone and a bogus import company owned through an IBC in a different country. A trading relationship is established where the exporter sends nonexistent goods or goods invoiced at greatly inflated prices to the importer, who pays the exporter in cleaned money, thus completing the laundry cycle.

Criminal Justice

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?According to Eysenck, what is the foundation for criminality?

a. ?the over-reactive RAS b. ?instrumental conditioning c. ?interactions of environmental conditions and inherited personality traits d. ?financial gain

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An advantage of guided group interaction is that it ________

A) helps the rehabilitation of drug addicts B) provides a comprehensive strategy for dealing with troubled youths C) directs offenders toward resolutions through awareness of their problems D) offers employment for the over-abundance of trained group leaders

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In ________ v. Alabama, the Supreme Court held that it would be unconstitutional "for the trial judge to accept a guilty plea without an affirmative showing that it is intelligent and voluntary."

Fill in the blank(s) with correct word

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The Dutch distinguish between "soft" drugs such as marijuana and "hard" drugs such as heroin, cocaine, and ecstasy

a. True b. False Indicate whether the statement is true or false

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