{"id":72382,"date":"2025-05-09T16:44:31","date_gmt":"2025-05-09T11:14:31","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?post_type=finance-dictionary&p=72382"},"modified":"2025-05-09T16:47:01","modified_gmt":"2025-05-09T11:17:01","slug":"money-laundering","status":"publish","type":"finance-dictionary","link":"https:\/\/www.5paisa.com\/finschool\/finance-dictionary\/money-laundering\/","title":{"rendered":"Money Laundering"},"content":{"rendered":"\t\t
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Money laundering is the clandestine process of disguising the illicit origin of funds generated through criminal activity\u2014such as fraud, corruption, drug trafficking, or tax evasion\u2014so that the proceeds appear to arise from legitimate sources. In financial markets and regulatory parlance, it involves three core stages: placement of illegal cash into the financial system, layering through a web of complex transactions to obscure the paper trail, and integration, where the \u201ccleaned\u201d money re\u2011enters the economy as ostensibly lawful income or assets. Efficient laundering distorts competition, erodes tax bases, and undermines financial stability, prompting global watchdogs like the Financial Action Task Force (FATF) and national regimes\u2014e.g., the U.S. Bank Secrecy Act, the EU\u2019s Anti\u2011Money Laundering Directives, and India\u2019s Prevention of Money\u2011Laundering Act\u2014to mandate rigorous customer due diligence, transaction monitoring, and suspicious transaction reporting. Understanding money laundering is therefore fundamental for compliance professionals, investors, and policymakers seeking to protect financial integrity and mitigate systemic risk.<\/p>

What Exactly\u202fIs Money Laundering?<\/strong><\/h2>

Money laundering is the deliberate process of concealing or transforming the proceeds of unlawful activities\u2014such as drug trafficking, fraud, embezzlement, or bribery\u2014so they appear to originate from legitimate, transparent sources. It typically unfolds in three sequential phases: (1) placement, where illicit cash or assets are first introduced into the financial system; (2) layering, during which a series of complex transfers, trades, or conversions obscures the audit trail and severs links to the original crime; and (3) integration, when the cleaned funds re\u2011enter the economy as ostensibly lawful earnings through investments, real estate, or business operations. This practice undermines market integrity, facilitates further criminal enterprise, and distorts monetary policy by injecting untraceable capital into circulation. Consequently, regulators worldwide enforce strict anti\u2011money\u2011laundering (AML) frameworks\u2014mandating customer due diligence, transaction monitoring, and suspicious activity reporting\u2014to detect and deter such financial misconduct.<\/p>

Why Should You Care? (Hint: It Isn\u2019t Just a \u201cBank Problem\u201d)<\/h2>

If you pay taxes, swipe a card, or own a business, laundering affects you. It fuels organized crime, inflates housing prices, distorts competition, and can drag entire economies onto grey or blacklists, jacking up borrowing costs. Plus, compliant firms avoid massive fines\u2014ignorance is expensive.<\/p>

The Three Classic Stages<\/h2>
  • Placement\u202f\u2014\u202fthe initial introduction of illicit proceeds into the financial system, typically accomplished by breaking large cash sums into smaller deposits, blending cash with legitimate business takings, or converting physical currency into monetary instruments such as money orders or prepaid cards. The objective is to move dirty money away from direct association with the crime while staying below detection thresholds.<\/li>
  • Layering\u202f\u2014\u202fthe subsequent phase of creating a complex maze of transactions\u2014wire transfers across multiple jurisdictions, rapid currency conversions, securities trades, or purchases of high\u2011value assets\u2014to muddle the audit trail. Each movement is designed to fragment and disguise the money\u2019s origin, making forensic accounting exceedingly difficult and severing the paper trail that links funds back to the predicate offense.<\/li>
  • Integration\u202f\u2014\u202fthe final step in which laundered funds are reintroduced into the legitimate economy under the guise of lawful income or investment returns. Common tactics include selling laundered assets, collecting rental income from real estate, or drawing dividends from front companies. At this stage, the money appears legitimate, allowing criminals to spend, invest, or further deploy it with minimal risk of detection.<\/li><\/ul>

    The Toolbox: Popular Laundering Techniques<\/h2>
    • Smurfing (Structuring)\u202f\u2014\u202fA tactic in which large sums of illicit cash are divided into multiple small transactions\u2014deposits, wire transfers, or purchases\u2014each kept below regulatory reporting thresholds. By dispersing funds through \u201csmurfs\u201d (numerous couriers or account holders), launderers minimize detection risk and gradually funnel dirty money into the banking system.<\/li>
    • Trade\u2011Based Money Laundering (TBML)\u202f\u2014\u202fThe use of international trade transactions to disguise the movement of value. Common ploys include over\u2011 or under\u2011invoicing goods and services, multiple invoicing of the same shipment, misclassification of product quality, or phantom shipping (claiming to export goods that never exist). TBML exploits discrepancies in customs documentation and pricing to shift value across borders undetected.<\/li><\/ul>

      Trade\u2011Based Tricks<\/h2>
      • Over\u2011 and Under\u2011Invoicing\u202f\u2014\u202fA launderer deliberately inflates (over\u2011invoices) or deflates (under\u2011invoices) the price, quantity, or quality of goods and services stated on customs documents. The false pricing lets excess value move across borders disguised as legitimate trade payments or \u201csavings,\u201d effectively converting criminal proceeds into receivables or export earnings that appear lawful.<\/li>
      • Multiple Invoicing of the Same Shipment\u202f\u2014\u202fThe exporter issues two or more invoices for a single cargo, securing duplicate payments\u2014often through different financial institutions or jurisdictions. Each payment looks routine, but together they shift far more value than the shipment is actually worth, masking illicit funds within repetitive, seemingly unrelated transactions.<\/li>
      • Phantom (Ghost) Shipping\u202f\u2014\u202fDocumentation claims that goods have been shipped when, in fact, no cargo exists. Fraudulent bills of lading, insurance certificates, and inspection reports are fabricated to justify large cross\u2011border transfers. With no physical goods to verify, funds flow freely under the guise of trade settlement.<\/li><\/ul>

        Red Flags & Early Warning Indicators<\/h2>
        • Repeated cash deposits just below mandatory reporting thresholds<\/li>
        • Complex corporate structures with no clear business rationale<\/li>
        • Sudden repayment of loans ahead of schedule without visible income<\/li>
        • Unusual cross\u2011border wire transfers to tax havens<\/li>
        • Discrepancies between customer profile and transaction behaviour<\/li><\/ul>

          How Financial Institutions Detect Dirty Money<\/strong><\/h2>
          • Robust KYC & CDD Frameworks\u202f\u2014\u202fIndian banks begin with the Reserve Bank of India\u2019s (RBI) Master Direction on Know\u2011Your\u2011Customer norms, which require detailed verification of a customer\u2019s identity, address, and beneficial ownership through Aadhaar, PAN, passport, or other Officially Valid Documents. Enhanced due diligence (EDD) is triggered for politically exposed persons (PEPs), non\u2011resident accounts, and high\u2011risk geographies, ensuring that suspicious customers are flagged even before an account is opened.<\/li>
          • Risk\u2011Based Transaction Monitoring Systems\u202f\u2014\u202fCore banking platforms feed real\u2011time data into rule\u2011based and AI\u2011driven engines that score every transaction against RBI\u2011mandated red\u2011flag indicators (e.g., rapid inward RTGS credits followed by immediate outward remittances). Scenario models adjust thresholds by customer risk ratings, so a jewellery exporter\u2019s large foreign receipts are reviewed differently from a salaried individual\u2019s salary credits, reducing false positives while sharpening detection.<\/li>
          • Regulatory Reporting to FIU\u2011IND\u202f\u2014\u202fUnder the Prevention of Money\u2011Laundering Act (PMLA), banks must file Suspicious Transaction Reports (STRs) within seven working days of detection and Cash Transaction Reports (CTRs) for cash deposits or withdrawals aggregating \u20b910\u202flakh or more in a month. The Financial Intelligence Unit\u2011India (FIU\u2011IND) analyses these filings, matches them with cross\u2011border wire logs and GST data, and disseminates actionable intelligence to the Enforcement Directorate and state police.<\/li><\/ul>

            Compliance Frameworks That Actually Work<\/strong><\/h2>
            • Board\u2011Approved AML Policy & Risk Assessment\u202f\u2014\u202fUnder the Prevention of Money\u2011Laundering Act, 2002 (PMLA) and the RBI Master Direction on KYC\u202f(2023 update), every \u201cReporting Entity\u201d must adopt a board\u2011vetted AML\/CFT policy that classifies customers, products, and delivery channels by money\u2011laundering\/terror\u2011financing (ML\/TF) risk. Annual enterprise\u2011wide risk assessments quantify exposure, spotlighting high\u2011risk corridors\u2014such as bullion trade or inward remittances from FATF\u2011grey\u2011listed jurisdictions\u2014and anchoring all downstream controls.<\/li>
            • Designated Director & Principal Officer Structure\u202f\u2014\u202fIndian regulation mandates a two\u2011tier leadership: a senior executive on the board (Designated Director) who owns AML accountability, and a Principal Officer who drives day\u2011to\u2011day compliance, interfaces with FIU\u2011IND, and signs off on Suspicious Transaction Reports\u202f(STRs). This clear chain of command ensures no \u201cgrey area\u201d about who answers when regulators call.<\/li><\/ul>

              Famous Case Studies\u00a0<\/h2>
              • Nirav\u202fModi\u2013PNB LoU Scam (2018)\u202f<\/strong>\u2014\u202fUsing fraudulent Letters of Undertaking issued outside Punjab\u202fNational\u202fBank\u2019s core\u2011banking system, diamond merchant Nirav\u202fModi channelled roughly\u202f\u20b913,000\u202fcrore through correspondent banks overseas, layering the funds via shell trading firms in Hong\u202fKong and Dubai. The episode underscores how a single bypass of SWIFT\u2011to\u2011CBS reconciliation can open a gaping AML hole and why Indian lenders now mandate end\u2011to\u2011end system integration, daily reconciliation, and dual\u2011authentication for all trade\u2011finance messages.<\/li>

              • Money laundering is the clandestine process of disguising the illicit origin of funds generated through criminal activity\u2014such as fraud, corruption, drug trafficking, or tax evasion\u2014so that the proceeds appear to arise from legitimate sources. In financial markets and regulatory parlance, it involves three core stages: placement of illegal cash into the financial system, layering through a web of complex transactions to obscure the paper trail, and integration, where the \u201ccleaned\u201d money re\u2011enters the economy as ostensibly lawful income or assets. Efficient laundering distorts competition, erodes tax bases, and undermines financial stability, prompting global watchdogs like the Financial Action Task Force (FATF) and national regimes\u2014e.g., the U.S. Bank Secrecy Act, the EU\u2019s Anti\u2011Money Laundering Directives, and India\u2019s Prevention of Money\u2011Laundering Act\u2014to mandate rigorous customer due diligence, transaction monitoring, and suspicious transaction reporting. Understanding money laundering is therefore fundamental for compliance professionals, investors, and policymakers seeking to protect financial integrity and mitigate systemic risk.<\/p>

                What Exactly<\/strong>\u202fIs Money Laundering?<\/strong><\/p>

                Money laundering is the deliberate process of concealing or transforming the proceeds of unlawful activities\u2014such as drug trafficking, fraud, embezzlement, or bribery\u2014so they appear to originate from legitimate, transparent sources. It typically unfolds in three sequential phases:<\/p><\/li>

              • (1) placement<\/strong>, where illicit cash or assets are first introduced into the financial system;<\/p><\/li>

              • (2) layering<\/strong>, during which a series of complex transfers, trades, or conversions obscures the audit trail and severs links to the original crime; and<\/p><\/li>

              • 3) integration<\/strong>, when the cleaned funds re\u2011enter the economy as ostensibly lawful earnings through investments, real estate, or business operations. This practice undermines market integrity, facilitates further criminal enterprise, and distorts monetary policy by injecting untraceable capital into circulation.<\/p><\/li>

              • Consequently, regulators worldwide enforce strict anti\u2011money\u2011laundering (AML) frameworks\u2014mandating customer due diligence, transaction monitoring, and suspicious activity reporting\u2014to detect and deter such financial misconduct.<\/p>

                Why Should You Care? (Hint: It Isn\u2019t Just a \u201cBank Problem\u201d)<\/strong><\/p>

                If you pay taxes, swipe a card, or own a business, laundering affects you. It fuels organized crime, inflates housing prices, distorts competition, and can drag entire economies onto grey or blacklists, jacking up borrowing costs. Plus, compliant firms avoid massive fines\u2014ignorance is expensive.<\/p>

                The Three Classic Stages<\/strong><\/p>

                • Placement<\/strong>\u202f\u2014\u202fthe initial introduction of illicit proceeds into the financial system, typically accomplished by breaking large cash sums into smaller deposits, blending cash with legitimate business takings, or converting physical currency into monetary instruments such as money orders or prepaid cards. The objective is to move dirty money away from direct association with the crime while staying below detection thresholds.<\/li>
                • Layering<\/strong>\u202f\u2014\u202fthe subsequent phase of creating a complex maze of transactions\u2014wire transfers across multiple jurisdictions, rapid currency conversions, securities trades, or purchases of high\u2011value assets\u2014to muddle the audit trail. Each movement is designed to fragment and disguise the money\u2019s origin, making forensic accounting exceedingly difficult and severing the paper trail that links funds back to the predicate offense.<\/li>
                • Integration<\/strong>\u202f\u2014\u202fthe final step in which laundered funds are reintroduced into the legitimate economy under the guise of lawful income or investment returns. Common tactics include selling laundered assets, collecting rental income from real estate, or drawing dividends from front companies. At this stage, the money appears legitimate, allowing criminals to spend, invest, or further deploy it with minimal risk of detection.<\/li><\/ul>

                  The Toolbox: Popular Laundering Techniques<\/strong><\/p>

                  • Smurfing (Structuring)<\/strong>\u202f\u2014\u202fA tactic in which large sums of illicit cash are divided into multiple small transactions\u2014deposits, wire transfers, or purchases\u2014each kept below regulatory reporting thresholds. By dispersing funds through \u201csmurfs\u201d (numerous couriers or account holders), launderers minimize detection risk and gradually funnel dirty money into the banking system.<\/li>
                  • Trade\u2011Based Money Laundering (TBML)<\/strong>\u202f\u2014\u202fThe use of international trade transactions to disguise the movement of value. Common ploys include over\u2011 or under\u2011invoicing goods and services, multiple invoicing of the same shipment, misclassification of product quality, or phantom shipping (claiming to export goods that never exist). TBML exploits discrepancies in customs documentation and pricing to shift value across borders undetected.<\/li><\/ul>

                    Trade\u2011Based Tricks<\/strong><\/p>

                    • Over\u2011 and Under\u2011Invoicing<\/strong>\u202f\u2014\u202fA launderer deliberately inflates (over\u2011invoices) or deflates (under\u2011invoices) the price, quantity, or quality of goods and services stated on customs documents. The false pricing lets excess value move across borders disguised as legitimate trade payments or \u201csavings,\u201d effectively converting criminal proceeds into receivables or export earnings that appear lawful.<\/li>
                    • Multiple Invoicing of the Same Shipment<\/strong>\u202f\u2014\u202fThe exporter issues two or more invoices for a single cargo, securing duplicate payments\u2014often through different financial institutions or jurisdictions. Each payment looks routine, but together they shift far more value than the shipment is actually worth, masking illicit funds within repetitive, seemingly unrelated transactions.<\/li>
                    • Phantom (Ghost) Shipping<\/strong>\u202f\u2014\u202fDocumentation claims that goods have been shipped when, in fact, no cargo exists. Fraudulent bills of lading, insurance certificates, and inspection reports are fabricated to justify large cross\u2011border transfers. With no physical goods to verify, funds flow freely under the guise of trade settlement.<\/li><\/ul>

                      Red Flags & Early Warning Indicators<\/strong><\/p>

                      • Repeated cash deposits just below mandatory reporting thresholds<\/li>
                      • Complex corporate structures with no clear business rationale<\/li>
                      • Sudden repayment of loans ahead of schedule without visible income<\/li>
                      • Unusual cross\u2011border wire transfers to tax havens<\/li>
                      • Discrepancies between customer profile and transaction behaviour<\/li><\/ul>

                        How Financial Institutions Detect Dirty Money<\/strong><\/p>

                        • Robust KYC & CDD Frameworks<\/strong>\u202f\u2014\u202fIndian banks begin with the Reserve Bank of India\u2019s (RBI) Master Direction on Know\u2011Your\u2011Customer norms, which require detailed verification of a customer\u2019s identity, address, and beneficial ownership through Aadhaar, PAN, passport, or other Officially Valid Documents. Enhanced due diligence (EDD) is triggered for politically exposed persons (PEPs), non\u2011resident accounts, and high\u2011risk geographies, ensuring that suspicious customers are flagged even before an account is opened.<\/li>
                        • Risk\u2011Based Transaction Monitoring Systems<\/strong>\u202f\u2014\u202fCore banking platforms feed real\u2011time data into rule\u2011based and AI\u2011driven engines that score every transaction against RBI\u2011mandated red\u2011flag indicators (e.g., rapid inward RTGS credits followed by immediate outward remittances). Scenario models adjust thresholds by customer risk ratings, so a jewellery exporter\u2019s large foreign receipts are reviewed differently from a salaried individual\u2019s salary credits, reducing false positives while sharpening detection.<\/li>
                        • Regulatory Reporting to FIU\u2011IND<\/strong>\u202f\u2014\u202fUnder the Prevention of Money\u2011Laundering Act (PMLA), banks must file Suspicious Transaction Reports (STRs) within seven working days of detection and Cash Transaction Reports (CTRs) for cash deposits or withdrawals aggregating \u20b910\u202flakh or more in a month. The Financial Intelligence Unit\u2011India (FIU\u2011IND) analyses these filings, matches them with cross\u2011border wire logs and GST data, and disseminates actionable intelligence to the Enforcement Directorate and state police.<\/li><\/ul>

                          Compliance Frameworks That Actually Work<\/strong><\/p>

                          • Board\u2011Approved AML Policy & Risk Assessment<\/strong>\u202f\u2014\u202fUnder the Prevention of Money\u2011Laundering Act, 2002 (PMLA) and the RBI Master Direction on KYC\u202f(2023 update), every \u201cReporting Entity\u201d must adopt a board\u2011vetted AML\/CFT policy that classifies customers, products, and delivery channels by money\u2011laundering\/terror\u2011financing (ML\/TF) risk. Annual enterprise\u2011wide risk assessments quantify exposure, spotlighting high\u2011risk corridors\u2014such as bullion trade or inward remittances from FATF\u2011grey\u2011listed jurisdictions\u2014and anchoring all downstream controls.<\/li>
                          • Designated Director & Principal Officer Structure<\/strong>\u202f\u2014\u202fIndian regulation mandates a two\u2011tier leadership: a senior executive on the board (Designated Director) who owns AML accountability, and a Principal Officer who drives day\u2011to\u2011day compliance, interfaces with FIU\u2011IND, and signs off on Suspicious Transaction Reports\u202f(STRs). This clear chain of command ensures no \u201cgrey area\u201d about who answers when regulators call.<\/li><\/ul>

                            Famous Case Studies (And What They Teach Us)<\/strong><\/p>

                            • Nirav<\/strong>\u202fModi<\/strong>\u2013PNB LoU Scam (2018)<\/strong>\u202f\u2014\u202fUsing fraudulent Letters of Undertaking issued outside Punjab\u202fNational\u202fBank\u2019s core\u2011banking system, diamond merchant Nirav\u202fModi channelled roughly\u202f\u20b913,000\u202fcrore through correspondent banks overseas, layering the funds via shell trading firms in Hong\u202fKong and Dubai. The episode underscores how a single bypass of SWIFT\u2011to\u2011CBS reconciliation can open a gaping AML hole and why Indian lenders now mandate end\u2011to\u2011end system integration, daily reconciliation, and dual\u2011authentication for all trade\u2011finance messages.<\/li>
                            • 2G Spectrum \u201cFront\u2011Company\u201d Case (2007\u201312)<\/strong>\u202f\u2014\u202fKickbacks for undervalued telecom licences allegedly flowed through a lattice of front entities and real\u2011estate investments before surfacing as \u201clegitimate\u201d share capital and rental income. Although criminal convictions were later overturned, the affair prompted SEBI to tighten beneficial\u2011ownership disclosure (\u226510\u202f% rule) and forced banks to apply enhanced due diligence on complex corporate structures, especially where political exposure is evident.<\/li>
                            • Yes<\/strong>\u202fBank<\/strong>\u2013Rana<\/strong>\u202fKapoor Loan\u2011for\u2011Bribe Scheme (2020)<\/strong>\u202f\u2014\u202fRegulators found that loans to stressed borrowers were repaid with quid\u2011pro\u2011quo investments into promoter\u2011controlled vehicles and expensive Mumbai real estate purchased in the CEO\u2019s family names. The case highlighted the AML peril of related\u2011party transactions disguised as \u201chigh\u2011end residential deals,\u201d driving RBI to impose stricter large\u2011exposure reporting and to require quarterly forensic reviews of real\u2011estate collateral valuations.<\/li><\/ul>

                              Conclusion<\/strong><\/p>

                              Money laundering corrodes the integrity of financial systems by funnelling illicit proceeds through an ever\u2011evolving array of placement, layering, and integration techniques\u2014ranging from smurfing and trade\u2011based mis invoicing to crypto mixers and real\u2011estate flips. In India, high\u2011profile scandals such as the Nirav\u202fModi\u2013PNB fraud, the Yes\u202fBank loan\u2011for\u2011bribe scheme, and chit\u2011fund Ponzi collapses have exposed critical gaps in trade\u2011finance reconciliation, beneficial\u2011ownership transparency, and real\u2011time monitoring, prompting regulators to harden KYC norms, mandate AI\u2011driven transaction surveillance, and tighten cross\u2011border reporting obligations. For banks, NBFCs, fintechs, and corporates alike, an effective anti\u2011money\u2011laundering framework must be risk\u2011based, technology\u2011enabled, and anchored by board\u2011level accountability, while frontline staff remain continuously trained to recognize ever\u2011shifting typologies. As globalization and digital finance accelerate capital flows, proactive compliance ceases to be a regulatory checkbox and instead becomes a strategic imperative\u2014safeguarding reputation, preserving market confidence, and ensuring that economic growth is powered by clean, transparent capital rather than the proceeds of crime.<\/p>\u2014\u202fKickbacks for undervalued telecom licences allegedly flowed through a lattice of front entities and real\u2011estate investments before surfacing as \u201clegitimate\u201d share capital and rental income. Although criminal convictions were later overturned, the affair prompted SEBI to tighten beneficial\u2011ownership disclosure (\u226510\u202f% rule) and forced banks to apply enhanced due diligence on complex corporate structures, especially where political exposure is evident.<\/li>

                            • Yes\u202fBank\u2013Rana\u202fKapoor Loan\u2011for\u2011Bribe Scheme (2020)\u202f\u2014\u202fRegulators found that loans to stressed borrowers were repaid with quid\u2011pro\u2011quo investments into promoter\u2011controlled vehicles and expensive Mumbai real estate purchased in the CEO\u2019s family names. The case highlighted the AML peril of related\u2011party transactions disguised as \u201chigh\u2011end residential deals,\u201d driving RBI to impose stricter large\u2011exposure reporting and to require quarterly forensic reviews of real\u2011estate collateral valuations.<\/li><\/ul>

                              Conclusion<\/p>

                              Money laundering corrodes the integrity of financial systems by funnelling illicit proceeds through an ever\u2011evolving array of placement, layering, and integration techniques\u2014ranging from smurfing and trade\u2011based mis invoicing to crypto mixers and real\u2011estate flips. In India, high\u2011profile scandals such as the Nirav\u202fModi\u2013PNB fraud, the Yes\u202fBank loan\u2011for\u2011bribe scheme, and chit\u2011fund Ponzi collapses have exposed critical gaps in trade\u2011finance reconciliation, beneficial\u2011ownership transparency, and real\u2011time monitoring, prompting regulators to harden KYC norms, mandate AI\u2011driven transaction surveillance, and tighten cross\u2011border reporting obligations. For banks, NBFCs, fintechs, and corporates alike, an effective anti\u2011money\u2011laundering framework must be risk\u2011based, technology\u2011enabled, and anchored by board\u2011level accountability, while frontline staff remain continuously trained to recognize ever\u2011shifting typologies. As globalization and digital finance accelerate capital flows, proactive compliance ceases to be a regulatory checkbox and instead becomes a strategic imperative\u2014safeguarding reputation, preserving market confidence, and ensuring that economic growth is powered by clean, transparent capital rather than the proceeds of crime.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

                              Money laundering is the clandestine process of disguising the illicit origin of funds generated through criminal activity\u2014such as fraud, corruption, drug trafficking, or tax evasion\u2014so that the proceeds appear to arise from legitimate sources. In financial markets and regulatory parlance, it involves three core stages: placement of illegal cash into the financial system, layering through … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":72377,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-72382","finance-dictionary","type-finance-dictionary","status-publish","format-standard","has-post-thumbnail","hentry","finance-dictionary-terms-m"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/finance-dictionary\/72382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/finance-dictionary"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/finance-dictionary"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=72382"}],"version-history":[{"count":6,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/finance-dictionary\/72382\/revisions"}],"predecessor-version":[{"id":72388,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/finance-dictionary\/72382\/revisions\/72388"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media\/72377"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=72382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}