From drug trafficking and organised crime to tax evasion and corruption, financial crime thrives when illegal proceeds are successfully disguised as lawful income. At the heart of this deception lies the practice of money laundering—a calculated process that allows criminals to obscure the origin of their wealth and reintegrate it into the mainstream economy.

While the methods used may vary across regions, industries, and technologies, the laundering process typically follows a well-established pattern. Whether through shell companies, real estate investments, offshore accounts, or cryptocurrencies, criminals rely on a three-stage structure to move illicit funds: Placement, Layering, and Integration.

Each stage plays a distinct role in weakening financial oversight and concealing criminal footprints. Understanding these stages is essential not only for compliance professionals, but also for policymakers, law enforcement, and financial institutions looking to disrupt the cycle before the funds are legitimised.