What is the principle of Layering?

What is the principle of Layering?

The principle of layering in money laundering involves adding multiple layers of complexity to the proceeds of a crime in order to obscure their true source. This stage serves to separate the illicit funds from their origin through a series of transactions and adjustments, making it difficult for authorities to trace the money back to its criminal source. By creating various financial transactions and moving the funds through different accounts or entities, layering aims to avoid detection and conceal the illicit origin of the funds.

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