Phases of money laundering

To ensure a good understanding of the provisions and approaches of the GwG, it is important – before describing the various instruments/tools – to know how the GwG defines the act of “money laundering”. Money laundering typically entails various phases. The following basic phases can be identified:

Phases

Action

1. Placement (Platzierung):

Channelling unlawfully acquired assets into the financial or economic cycle via banks or other institutions.

2. Layering (Herkunftsverschleierung):

Performing a series of actions designed to thwart the tracing of the criminal origin/past of the assets.

3. Integration (Überführung):

The transfer or return of the assets which now consequently appear “legal” to the legitimate financial or economic cycle.