Money laundering in the process of globalization and liberalization has become a problem that requires cooperation between the countries, and also the adoption of measures for prevention not only at national, but also at the supranational level. After reviewing the most important regulations relating to money laundering, the author explains the stages of money laundering placement, layering and integration. In addition, author pays attention to the analysis of risk based system, as a very important mechanism in prevention and detection of money laundering. The central part of the paper deals with money laundering in insurance. The author explains the process of money laundering in the insurance and cites practical examples. At the end, attention is given to situation in Serbia and there is pointed out that even though law contains a good solutions about money laundering, unfortunately, in practice it is not implemented always. So, this practice should be changed. Author has used comparative and analytical research methods.