What is layering in money laundering?

Layering in money laundering is the process of hiding the original source of money by creating several layers of transactions. It involves using multiple bank accounts, financial instruments, and complex transactions to distance the money from its illegal origin. This process is also known as structuring, and it aims to make tracing the source of the money difficult for law enforcement agencies. Layering involves moving money between different jurisdictions, private companies, and offshore accounts, making it difficult to track the path of the funds. The goal of layering is to create a complex network of transactions that appear legitimate and to conceal the origin of the illegally obtained funds. It is an important stage in the money laundering process and requires expert knowledge of international banking and financial instruments.