Money Laundering Quiz

Money laundering is the process of concealing the origin of money obtained from illicit activities, like drug trafficking, bribery or fraud. The purpose is to introduce illicit funds into the financial system under the guise of ‘clean’ money, so that criminals can use it without attracting undesirable attention from authorities.

The fight against money laundering is often linked to efforts against terrorism financing because both money laundering and terrorism financing involve redistribution of the funds.

According to the FATF, $1.6 trillion are laundered each year from lower-income countries, most often the proceeds of political corruption. Corruption deepens poverty in such regions, also leading to environmental degradation and economic stagnation.

<p>Corruption plays a role in the spread of illicit money and also leads to environmental degradation and economic stagnation. Therefore, efforts to limit the spread of illicit money also play an important role in lowering corruption worldwide.</p> Signup and view all the answers

<p>The three stages of money laundering are placement, layering, and integration/extraction.</p> Signup and view all the answers

<p>The purpose of money laundering is to introduce illicit funds into the financial system under the guise of ‘clean’ money, so that criminals can use it without attracting undesirable attention from authorities.</p> Signup and view all the answers

<p>The fight against money laundering is often linked to efforts against terrorism financing because both involve redistribution of funds.</p> Signup and view all the answers

<p>According to the FATF, $1.6 trillion are laundered each year from lower-income countries, most often the proceeds of political corruption. Corruption deepens poverty in such regions, leading to environmental degradation and economic stagnation.</p> Signup and view all the answers

<p>The three basic stages of money laundering are placement, layering, and integration/extraction.</p> Signup and view all the answers

<p>Corruption deepens poverty in lower-income countries, leading to environmental degradation and economic stagnation. Efforts to limit the spread of illicit money also play an important role in lowering corruption worldwide.</p> Signup and view all the answers