The various stages of anti-money laundering

best investment banking course

Money laundering involves hiding funds through unlawful means. It is a serious offence. Criminals hide money through legal financial systems. Money laundering hides the origin of the funds. Criminals make a profit from such illegal activities.

There are local and global anti-money laundering (AML) regulations. They address money laundering.

Money laundering happens on a vast scale. This makes it difficult to address the issue. AML wants companies to have legal obligation. It helps companies understand money laundering risks. They have to know the stages of anti-money laundering. They can then address money laundering challenges.

An anti-money laundering course helps you understand key AML concepts. You learn to become AML compliant.

Imarticus Learning's Investment Banking Course will teach you all about anti-money laundering. Placement is guaranteed.

Anti-money laundering laws are important for businesses. They combat money laundering. Learn about anti-money laundering in this article. You will also get to know about activities and controls.

What is Money Laundering?

Money laundering involves disguising illegal money. Criminals do money laundering in various ways. Examples include selling arms or terrorism funding. Others are contraband smuggling and human trafficking. There are three stages of money laundering.

Money laundering stages

1.      Placement

Criminals launder illegal funds into legitimate financial channels. They make them appear as legitimate sources of income. Examples include fake invoices and cash transactions.

2.      Layering

Illegal funds get placed within financial channels. Then, layering is done to hide the illicit fund origin. Criminals divide huge funds into small transactions. This helps them comply with AML regulations. It blurs the audit trail. Money laundering is impossible to detect due to layering.

3.      Integration

Laundered money gets withdrawn from legitimate accounts. Criminals then re-invest these funds through various smaller transactions. They do this to not attract the attention of AML authorities. They could pay loans to the directors of a shell company.

Why Businesses Should Prevent Money Laundering?

best investment banking courses with placement in India

Businesses should prevent money laundering. They should stop the illegal use of money. They should report any fishy transactions to the authorities. If they fail, then they will face action. They have to pay penalties or go to prison.

What is Anti-Money Laundering?

AML guidelines aim to stop money laundering activities. They prevent criminals from laundering money.

Anti-Money Laundering Controls

1.      Know your customer (KYC)

Businesses must be careful when identifying customers. Through KYC, businesses get to know about any illegal use of funds.

2.      Upgrade technology

Businesses should adopt the latest technology. It will help identify any fishy money laundering activity. Examples of technologies include AI and Big Data. Technology helps maintain accurate records of all transactions. They create an audit trail.

3.      Regular cross-communication

Anti-laundering parties include law enforcement authorities and governments. They also include AML regulators. Information exchange between them increases AML vigilance. Their efforts build public trust.

4.      Standardised systems

AML-compliant systems establish anti-fraud measures. Without them, it becomes difficult to communicate. A uniform system can prevent money laundering activities.

5.      AML training

The right staff is needed to detect money laundering activities. You should know investment banking concepts. Enrol yourself in AML courses. For example, Imarticus Learning’s Investment Banking Course.


Businesses use anti-money laundering measures to prevent fraud. The Imarticus Learning course helps you learn about AML regulations. Imarticus Learning’s Investment Banking certification course helps you develop the necessary skill sets. It guides you toward a career in banking, treasury or clearing services.

For more program information, visit our program webpage. There is chat support. You can also go to our training centres. We have centres in Mumbai, Thane and Pune. They are also there in Chennai, Bengaluru, Delhi, Gurgaon and Ahmedabad.

Share This Post

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

Our Programs

Do You Want To Boost Your Career?

drop us a message and keep in touch