How does money laundering work?

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Money laundering is mostly distributed through 3 steps:

the first step is that cash / funds generated from associate activity of crime / crime is born-again into a type that doesn't or doesn't cause suspicion through placement to the national economy in numerous ways that (placement stage);

the second step is to conduct money transactions that area unit complicated, stratified and anonymous with the aim of separating the income from the supply into numerous accounts so the origin of the fund is troublesome to trace, in alternative words concealment or disguising the origin of the assets (coating / layering);

the third step (final) is that the stage within which the actor re-enters funds that have loose their origin into assets that seem legitimate each to be enjoyed directly, invested with in numerous kinds of material and money wealth, accustomed finance legitimate business activities or to refinancing criminal activities (integration stage).