What stage of money laundering involves using cheques to acquire different investments?

The stage of money laundering that involves using cheques to acquire different investments is identified as the layering stage. Layering typically entails the movement of illicitly obtained funds in a complex sequence of financial transactions designed to obscure the illegal origin of the money. This can include converting cash into instruments such as cheques or other financial products and subsequently purchasing various investments, with the aim of making it difficult for authorities to trace the funds back to their illegal source.

By acquiring different investments, the individual is effectively distancing the money from its origin. This is done to confuse investigators and to integrate the funds into the legitimate financial system without raising suspicion. The layering process can involve multiple transactions across different financial institutions, thereby enhancing the complexity of tracking the money.

In contrast, the placement stage involves the initial introduction of illegal funds into the financial system, typically involving immediate deposits or cash transactions. The integration stage occurs after layering, where the laundered funds are reintroduced into the economy as legitimate assets, making them difficult to distinguish from legally acquired money. Auditing does not pertain to the money laundering process and instead relates to checking and verifying financial records.