That stage in money laundering which involves sending money through various financial institutions to change its form and make it more difficult to follow

• A. Placement
• B. Layering
• C. Integration
• D. Preliminary

Answer: (B)

Layering involves moving funds through a maze of financial transactions and institutions to sever the money from its illicit origin. By routing money through multiple banks, accounts, and sometimes across borders or using currency conversions and complex instruments, the trail becomes increasingly hard to trace for investigators. This stage follows placement, which is about getting illicit funds into the financial system, and precedes integration, which brings the funds back into the economy as seemingly legitimate assets. So the description—sending money through various institutions to change its form and make it more difficult to follow—fits layering precisely.