Free course · Module 1 of 5

KYC Foundations

Eight short lessons. Mostly things to click, work out and get wrong, rather than things to read. Every lesson ends on a real case that shows what happens when it goes wrong. About an hour.

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Thirty seconds on what's in here, if you want the gist before starting.

Lesson 1

How money gets laundered

Criminal money has one problem. It exists, but it can't be explained. Everything below is the work of making it explainable.

Criminal cash STAGE 1 Placement INTO THE SYSTEM STAGE 2 Layering BREAK THE TRAIL STAGE 3 Integration LOOKS EARNED MOST OF WHAT YOU SEE HAPPENS HERE, NOT AT PLACEMENT
Placement usually happens somewhere else, before the customer ever reaches you.
Real caseDanske Bank, Estonia2007–2014

A single small branch in Tallinn handled a vast volume of largely non-resident money, with suspected laundering put as high as $235bn. Nobody carried cash into that branch in bin bags. The money arrived already inside the system and the branch was used to move it.

The point: almost nothing you see will be placement. You are looking at layering, and layering looks like ordinary banking until you ask why.

TFTerrorist financingOften clean money, small amounts, criminal purpose. Size thresholds miss it.
SanctionsSanctions evasionDealing with a prohibited party. Strict liability. Intent is not a defence.
FraudFraudUK firms now face a failure to prevent fraud offence, in force since 1 Sept 2025.

What comes next

Modules 2 to 5 are live in KYC in Practice, with the document matrix builder, a worked file, a screening threshold sandbox and the career module.

Written in a personal capacity for education. General information about how financial crime controls work, not legal or regulatory advice, and not the view of any employer. Rules differ by country and change often, so work from your own firm's policy and your own regulator. Worked examples in the exercises use invented people and companies. The case studies are real and drawn from public regulator statements, court and enforcement records, summarised here for teaching.