The three stages of Anti-Money Laundering (AML) are:

1. Placement

This is the initial stage where illicit money is introduced into the financial system. It involves depositing the illegal funds into financial institutions, often through methods like cash deposits, wire transfers, or purchasing assets.

2. Layering

In this stage, the goal is to obscure the origins of the illicit money. This is done by moving the money through a series of complex transactions, such as transferring funds between multiple accounts, making international transfers, or investing in various financial instruments. The purpose is to make it difficult to trace the money back to its illegal source.

3. Integration

The final stage involves reintroducing the laundered money into the legitimate economy. At this point, the money appears to be clean and can be used for legal purposes, such as purchasing property, investing in businesses, or other legitimate financial activities.

These stages are designed to make it challenging for authorities to detect and trace the origins of illicit funds