Money laundering is the illegal process of making large amounts of money generated by criminal activity, appear to have come from a legitimate source. Criminals try to disguise funds obtained from illegal sources so they can spend it without attracting attention from the government. Types of money laundering activity include:
Placement
The physical disposal of bulk cash, either by commingling the cash with the proceeds of a legitimate business or depositing the currency into banks, securities firms, or other similar institutions to make it usable.
Layering
The transfer of those funds among various accounts through a series of a complex transaction designed to disguise or hide the trail of the illicit proceeds.
Integration
The process of shifting the laundered money to legitimate organizations that have no apparent link to organized crime.
Structuring
Structuring is assisting an individual to avoid reporting a transaction that would otherwise be reportable illegal under the Bank Secrecy Act. Bank associates who engage in structuring are personally liable for civil and criminal penalties. The safest approach and CCB policy is to respond to questions by giving the client a copy of the CTR form and CTR pamphlet avoids answering any questions. See CTR Reporting for more information.