ABSTRACT
The International Monetary Fund described money laundering as a ‘problem of global concern' that ‘poses a threat to financial system integrity, and may undermine the sound functioning of financial systems, good governance and the fight against corruption'. The process of money laundering can be broken down into three discrete steps. First, the illicit funds are ‘placed' into the financial system. The second step, known as ‘layering', involves funnelling the money into the economy through various financial transactions designed to hide the origins of the illicit funds. Finally, the funds are ‘integrated' into the system when the illicit funds re-enter the mainstream economy, taking on the appearance of a legal transaction. Initiatives to combat money laundering have generally prioritised making placement more difficult. Moneyval's second on-site report is yet to be published. It was scheduled for discussion and adoption at Moneyval's 61st plenary meeting, held between 26–30 April 2021.
