Laundered money refers to funds that have been obtained illegally and then disguised to appear as if they have been acquired through legitimate means. Money laundering is a criminal activity often used by individuals, organizations, or even governments to hide the origin and ownership of illegally gained funds. The process of laundering money involves multiple steps to obscure the illegal origins of the funds. These steps typically include three stages: placement, layering, and integration. During the placement stage, the illicit funds are introduced into the legitimate financial system. This can be done through various methods such as cash deposits, investments, or the purchase of assets. The layering stage involves creating complex transactions to make it difficult to trace the origins of the funds. This may include transferring money between different accounts, employing shell companies, or conducting numerous transactions to confuse audit trails. Lastly, during the integration stage, the laundered money is re-introduced into the legitimate economy, making it appear as if it was obtained through lawful means. The funds are usually withdrawn or spent for various purposes such as buying properties, businesses, or luxury goods. Money laundering poses significant risks and challenges to the global financial system, as it facilitates the financing of various criminal activities, including drug trafficking, terrorism, corruption, and organized crime. These illicit activities can undermine the stability and integrity of financial institutions, as well as harm societies and economies. To combat money laundering, governments around the world have implemented strict regulations and established anti-money laundering (AML) frameworks. Financial institutions are required to comply with these regulations by implementing stringent customer due diligence measures, reporting suspicious transactions, and maintaining robust internal controls to prevent money laundering. In conclusion, laundered money refers to funds obtained through illegal activities that are then made to appear as if they have been acquired legally. Money laundering involves a series of complex processes aimed at concealing the true origins of the illicit funds. This illicit activity undermines the integrity of the financial system and poses significant risks to society, which is why governments globally are intensifying their efforts to combat money laundering.