Certified Fraud Examiner Practice Exam 2026 – All-in-One Guide to Master Your Certification!

Question: 1 / 400

What stage of money laundering is referred to as 'integration'?

The initial placement of illegal funds

Conversion of illicit funds into cash

Reintroducing illegal profits as legitimate profits

Integration is the final stage of money laundering, wherein the illicit funds are reintroduced into the legitimate economy, making them appear to be lawful profits. At this stage, the laundered money effectively becomes indistinguishable from legitimate funds, allowing the criminal to use it without arousing suspicion. This process often involves various transactions, such as investments or purchases, that disguise the true origin of the funds.

The first stage mentioned involves the placement of illegal funds into the financial system, while the second stage includes converting those illicit funds into cash or other forms that can be used more freely. The segregation of funds from legal transactions is yet another tactic employed during earlier phases of money laundering, but it does not pertain to the final blending of illegal money into legal streams, which is characteristic of integration.

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Segregating funds from legal transactions

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