What is AML/CTF and PF?

Money laundering (ML) is the process by which illegally obtained funds are given the appearance of being legitimate.

It has 3 layers:

• Placement – illegal funds or assets are placed in the financial system eg bank account
• Layering – illegal funds or assets are moved or disguised to distance the proceeds from the original crime eg placing funds into a solicitor's trust account
• Integration – once the illegal funds are distanced from the origin, they are used to fund further criminal activity or to purchase high-value assets such as real estate and luxury goods making those funds seem legitimate

Terrorism financing (TF) is the funding of acts, individuals and organisations associated with terrorism.

Proliferation financing (PF) is the financing of illegal activities intended to facilitate the creation and supply of weapons of mass destruction, whether the activities occur or are just attempted.