How does money laundering work?
Money laundering is the process of disguising illegal proceeds so they can move through the financial system and appear legitimate. It often begins with predicate offences, then develops through placement, layering, and integration as funds are moved, disguised, and reintroduced into the economy.
This lesson explains how money laundering works, why the process is difficult to detect, and how it creates serious risks for economies, institutions, and society. You’ll also see why understanding the mechanics of money laundering is the foundation for stronger AML controls.
Why watch this lesson?
Watch this video lesson to understand how money laundering moves illegal proceeds through the financial system and why AML controls are designed to detect and disrupt that process. The session gives you a practical foundation for recognizing how criminal funds can be introduced, moved, concealed, and made to appear legitimate.
This topic connects to other AML Fundamentals lessons on AML/CFT compliance, customer due diligence, transaction monitoring, suspicious activity, regulatory expectations, and financial crime risk management. It helps explain why different AML controls work together across the customer lifecycle.
This video lesson is part of the full AML Fundamentals course, where you can explore the broader regulatory landscape, customer due diligence, transaction monitoring, and the mechanics of financial crime.
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