What is Money Laundering? The Three Stages in Money Laundering... Money Laundering is the process of taking ‘dirty’ funds and converting it into ‘clean’ funds. ‘Dirty funds’ are criminally-derived proceeds which are then converted into other assets so that they can be reintroduced into legitimate commerce in order to conceal their true origin or ownership – ‘clean funds’ There are three stages in money laundering: Placement Layering Integration This infographic shows the 3 stages of Money Laundering.