What is Money Laundering and Why it is Illegal.

Money Laundering is the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.

The Three stages of Money Laundry:

1. Placement –This is the movement of cash from its source. On occasion the source can be easily disguised or misrepresented. This is followed by placing it into circulation through financial institutions, casinos, shops, bureau de change and other businesses, both local and abroad.
2. Layering – The purpose of this stage is to make it more difficult to detect and uncover a laundering activity. It is meant to make the trailing of illegal proceeds difficult for the law enforcement agencies.
3. Integration – This is the movement of previously laundered money into the economy mainly through the banking system and thus such monies appear to be normal business earnings. This is dissimilar to layering, for in the integration process detection and identification of laundered funds is provided through informants.

Money Laundering is illegal because it is tied to a crime. The process of money laundering gives freedom to launderers  to convert their money earned form illegal sources to legal one which may reach to criminals, terrorists and other organizations and can be used to unstable the world.