Which of the following best describes money laundering?

The best description of money laundering is the process of converting illegal funds into legitimate ones. Money laundering typically involves three stages: placement, layering, and integration.

In the placement stage, illicit funds are introduced into the financial system, often through methods like depositing cash or purchasing assets. Layering involves complex transactions to obscure the origins of the money, such as transferring funds between multiple accounts or converting cash into various forms. Finally, in the integration stage, the laundered money is reintroduced into the economy in a way that makes it appear legitimate, allowing the perpetrators to use those funds without raising suspicion.

This definition encompasses the fundamental goal of money laundering, which is to disguise the illegal origins of funds and make them appear legitimate, thus enabling the individuals or entities involved to enjoy the proceeds of their illegal activities without detection. The other options do not address the concept of money laundering and describe legitimate financial practices or situations that do not involve illegal activity.