Presenting illegally gained money in the formal economic system as if it were the result of a legal activity is known as:

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Presenting illegally gained money in the formal economic system as if it were the result of a legal activity is known as integration. Placement is the first stage in money laundering, where illegal funds are introduced into the financial system. Layering is the second stage where the funds are moved around in a complex web of transactions to disguise the source. Exchange refers to the process of converting the illegal funds into other assets or forms of currency.

Presenting Illegally Gained Money in the Formal Economic System as If