Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam 2026 - Free CAMS Practice Questions and Study Guide

Cash deposits are vital for money launderers primarily because they facilitate the placement of illicit funds into the financial system. The placement stage is the initial step in the money laundering process, where illegally obtained cash must be introduced into the legitimate financial environment in order to obscure its origin. By depositing cash directly into a bank account, launderers can transform the money into a form that appears legitimate, allowing it to be more easily used without raising suspicion.

Once the cash is integrated into the banking system, it can be layered through various transactions to further distance it from its illegal source. The ability to deposit cash helps money launderers bypass certain scrutiny that may be associated with larger transactions or those involving wire transfers, which are often more visible to regulatory bodies.

While other options present scenarios that may seem beneficial to launderers—like hiding the source from authorities or gaining immediate access to funds—the primary focus is the effective placement of cash into the financial system, which is essential for progressing to subsequent laundering stages.