What is the first stage of cleansing illegal funds in money laundering?

The first stage of cleansing illegal funds in money laundering is known as "placement." During this phase, illicit money is introduced into the financial system, often through methods such as depositing cash into banks, purchasing assets, or using other financial instruments. The goal is to distance the funds from their criminal origins, making them harder to trace. This stage is crucial, as it sets the foundation for further laundering processes.