1. Home
  2. Glossary
  3. Layering
Glossary

Layering (Money-laundering stage)

Layering is the second stage of money laundering: moving funds through a series of transactions to separate them from their source. Transfers between accounts, jurisdictions, currencies and products make the trail harder to follow. Do not confuse it with layering in market abuse, which is an order-book manipulation.

Why it matters for brokers and payment firms

Trading accounts are useful for layering because deposits can come out as "profits" after a few positions. Pass-through activity and matched trades between linked accounts are common layering signals.

Related terms

On this site

Transaction monitoring for payment firms

← All glossary terms