Placement: Physical disposal of cash proceeds from illegal activity. Cash can be paid into a bank, often mixed with proceeds of legitimate business, exported, or used to buy high value goods, property or business assets.
Layering: Separating the proceeds from the source by creating complex layers of transactions to disguise the audit trail and provide anonymity. Like wire transfers abroad, using shell companies; cash deposits with an overseas banking system; reselling goods and assets.
Integration: Providing legitimacy to criminally derived wealth, through false loan repayments or forged invoices. A web of domestic and international transfers makes the source hard to trace.