How many types of money laundering, effects of money laundering

Question

Accepted Answer

Money laundering involves various types and has significant effects on economies and society.

There are three main types of money laundering: placement, layering, and integration.
Placement involves introducing illicit funds into the financial system, often through cash deposits or purchases.
Layering involves complex transactions to obscure the origin of funds, such as multiple transfers between accounts or countries.
Integration is the final stage where laundered funds are integrated back into the legitimate economy.
Money laundering has several negative effects, including distorting economic indicators, facilitating organized crime, and undermining financial institutions.
It can lead to increased corruption, reduced tax revenues, and destabilization of economies.
Money laundering also enables terrorist financing and can have detrimental social consequences.
Efforts to combat money laundering involve legislation, financial regulations, and international cooperation.

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