Lance stole cash from his employer and then deposited the funds into a domestic bank...

The correct answer is C. Integration. Money laundering is commonly described as having three stages: placement, layering, and integration. Placement is the initial introduction of illicit funds into the financial system. Layering involves moving the money through multiple transactions, accounts, or jurisdictions to obscure its source. Integration is the final stage, where the laundered funds are reintroduced into the economy and used in ways that appear legitimate. FinCEN and the FFIEC both describe integration as the stage where illicit proceeds are returned to the criminal in apparently lawful form, after the paper trail has been obscured.

In Lance’s fact pattern, the deposit of stolen cash into a domestic account reflects placement. The wires to foreign accounts and multiple transfers are classic layering because they are designed to make the funds difficult to trace. When Lance finally brings the money back and spends it on home improvements, he is using the funds as if they were legitimate personal assets. That is the hallmark of integration. FinCEN also notes that purchases of real estate-related assets and improvements commonly appear in the last stage of laundering because they help the criminal enjoy the proceeds with a veneer of legitimacy.