Fraud Prevention and Detection

FRAUD PREVENTION AND DETECTION

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After the funds have entered the nancial system, the second—or lay-

ering—stage takes place. In this phase, the launderer engages in a series

of conversions or movements of the funds to distance them from their

source. The funds might be channeled through the purchase and sales

of investment instruments, or the launderer might simply wire the funds

through a series of accounts at various banks across the globe. This use

of widely scattered accounts for laundering is especially prevalent in

those jurisdictions that do not co- operate in anti- money laundering

investigations. In some instances, the launderer m ...