What is a common method used to launder money?

Transferring money between multiple countries without a clear purpose is a common method used in money laundering because it allows for the disguise of the origin of the funds. This technique is often part of a process known as "layering," where illicit funds are moved through a series of transactions to make tracing the money back to its unlawful source more difficult. By moving money across international borders, launderers can exploit differences in regulations and oversight between jurisdictions, thus obscuring the true nature of the funds.

Additionally, this method often involves the use of complex structures or networks that can include shell companies and offshore accounts, further complicating efforts to track the funds. This type of activity raises red flags in anti-money laundering (AML) regulations, as financial institutions are required to monitor and report suspicious transactions that lack an economic rationale.

In contrast, while investing in real estate and businesses can also be associated with laundering money, it is not considered a common method because it often involves a more transparent process and can sometimes lead to legitimate profit. Displaying funds in a public charity event may raise suspicions in certain contexts, but it is typically not a primary laundering tactic. Similarly, using cash transactions exclusively can also be suspect but is less effective in the context of modern banking