What is meant by 'integration' in money laundering?

The concept of 'integration' in money laundering refers to the final stage where the illicit funds are blended back into the economy, making them appear legitimate. At this stage, the money has typically already undergone placement and layering, which are the earlier stages of laundering. During integration, the laundered funds are withdrawn or used to purchase assets, essentially reintroducing them into the financial system in a way that makes them seem as though they were obtained legally.

This understanding of 'integration' is crucial in identifying how criminal organizations can effectively use illicitly gained money without raising suspicion. It is in this phase that the previously dirty money is connected to legitimate businesses or investments, thereby obscuring its criminal origin. Recognizing this stage helps law enforcement and financial institutions develop strategies to counteract money laundering activities.