The Observed Effects of Money Laundering for Jamaica - Caribbean ...

The Bank of Jamaica has defined money laundering as “all
procedures, methods, and transactions designed to change the
identity of illegally obtained money so it appears to have originated
from a legitimate source.
These are
OVERVIEW OF MONEY LAUNDERING STAGES
Money laundering has three basic steps that launderers follow.
1) Placement
2) Layering
3) Integration
AUSTRAC which defines placement as also the initial stage of
money laundering and further stated that this stage is the physical
disposal of bulk cash profits that are a result of an illegal activity.
However though Schaap (2002) agrees that placement is a stage of
money laundering he states that prior to the placement stage there is
the exchange phase. Schaap (2002) further stated that the exchange
phase in the first stage of the laundering process and is also known as
the prewash phase.
Schaap (2002) highlighted that in this phase, in order to avoid
increased alertness and break the audit trail, at times foreign
currency is traded in another currency, smaller notes are traded in
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