Money laundering means hiding money that was earned illegally so it looks like it came from a legitimate source. It’s basically a way to “clean” dirty money so criminals can use it without attracting attention.

Quick scoop

In plain terms, it usually happens in three stages: placing the money into the financial system, layering it through lots of transactions to hide its origin, and integrating it back as if it were normal income or assets.

Simple example

A person makes cash from illegal activity, then uses a business to mix that cash with real sales, sends the money through different accounts, and eventually buys property or other assets with it. That makes the funds look legitimate on paper.

Why it matters

Money laundering is illegal because it helps criminals hide profits from crimes like drug trafficking, fraud, corruption, and other offenses. Governments and financial institutions use anti-money-laundering rules to detect and stop it.

If you want, I can also explain it in:

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