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Where does money laundering occur?
Where does money laundering occur?

As money laundering is a necessary consequence of almost all profit generating crime, it can occur practically anywhere in the world. Generally money launders tend to seek out areas in which there is low risk of detection due to weak or ineffective ant-money laundering programs. Because the objective of money laundering is to get the illegal funds back to the individual who generated them ,launders usually prefer to move funds through areas with stable financial systems.

Money laundering activity may also be concentrated geographically according to the stage the laundered funds have reached. At the placement stage for example the funds are usually processed relatively close to the underlying activity, often but not in every case, in the country where the funds originate.

With the layering phase the launderer might choose an offshore financial center, a large regional business center or a world banking center-any location that provides an adequate financial or business infrastructure. At this stage the launder funds may also only transit bank accounts at various locations where this can be done without leaving traces of their source or ultimate destination.

 

Finally at the integration phase launderers might choose to invest laundered funds in other locations if they were generated in unstable economies or locations offering limited investment opportunities.

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