Money laundering is the process of making illegally obtained money appear legitimate. Criminals often earn money through illegal activities, such as drug trafficking or fraud, and then disguise its origins to avoid detection by authorities. This is typically done in three stages: placement, layering, and integration. In the placement stage, the illegal money is introduced into the financial system. Next, during layering, the money is moved through various transactions to obscure its source. Finally, in the integration stage, the laundered money is reintroduced into the economy, making it difficult to trace back to its illegal origins.