SIE (Securities Industry Essentials) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the SIE (Securities Industry Essentials) Exam by studying comprehensive materials, including interactive quizzes and flashcards that cover essential industry concepts. Maximize your scoring potential with targeted practice.

Practice this question and more.

Which of the following is an example of the Integration stage of money laundering?

Buying a business
Placing cash in a financial institution
Layering through complex transactions
Using small amounts below reportable thresholds

The correct answer is: Buying a business

Buying a business is an example of the Integration stage of money laundering because it is the final step in the process where illicit funds are incorporated into the legitimate economy. This option is correct because it involves the purchase of a legitimate business entity with the intention of using it to conceal the illegal source of funds. The other options are incorrect because they either involve the first two stages of money laundering (Placement and Layering) or do not involve the incorporation of illicit funds into the legitimate economy. Placing cash in a financial institution and using small amounts below reportable thresholds are examples of the Placement stage, where cash is introduced into the financial system. Layering through complex transactions is an example of the Layering stage, where multiple transactions are conducted to obscure the source of funds and make them appear legitimate.