The Money Laundering Lifecycle

Money laundering takes many forms, but the methods used to disguise illicit proceeds tend to follow a familiar pattern. Whether simple or highly sophisticated, most schemes progress through three key stages: Placement, Layering, and Integration. Understanding how these stages function within the broader movement of funds is essential for financial institutions working to detect unusual activity and prevent their networks from being used to channel criminal proceeds into the formal economy. By breaking down the lifecycle of illicit funds into its core components, organisations can better understand where controls are most effective – and where vulnerabilities tend to emerge. This clarity helps shape stronger monitoring frameworks, supports more targeted investigator training, and aligns teams around a shared view of how laundering typically unfolds across different products, jurisdictions, and customer profiles.