What does "money laundering" entail?

Money laundering is a criminal activity that involves concealing the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions. The primary aim of money laundering is to make the "dirty" money appear "clean" or legitimate. By disguising where the money comes from, individuals can use these funds without arousing suspicion from law enforcement.

This process often involves three stages: placement, layering, and integration. In the placement stage, the illicit funds are introduced into the financial system. Layering involves moving the money around to obscure its original source, and in the integration stage, the laundered money is reintroduced into the economy as legitimate funds.

Choosing the option that specifies the concealment of illegally obtained money origins accurately captures the essence of money laundering, highlighting the focus on masking the illicit source rather than legalizing the funds or increasing financial assets. Other options, while related to financial transactions, do not encompass the fundamental characteristics and motivations behind money laundering.