Banker's Responsibility for Confidentiality in Money Laundering This can be divided into the following sub-topics for the purpose of understanding: 1. What is what is money laundering?2. How does this affect banks?3. How does this affect the banker's responsibility for confidentiality?4. The banker's responsibility to prevent money laundering. What is money laundering? Money laundering is the process by which large quantities of illegally obtained money (from illegal arms sales, smuggling and other organized crimes, including drug trafficking and prostitution rings) take place. appearance of silver. from a legitimate source. How does this affect banks? The next three steps involve money laundering. PlacementThe money launderer, who holds the money produced by illegal activities, introduces the illegal funds into the financial systems. This can be done by dividing a large amount of money into smaller amounts which are deposited directly into a bank account or by purchasing a series of instruments such as cheques, bank drafts etc. which are then collected and deposited in a bank account. ...