Which action constitutes money laundering?

The action that constitutes money laundering is concealing criminal property. Money laundering refers to the process of making illegally obtained money appear legitimate by disguising its original source. This typically involves various techniques to obfuscate the origin of the funds, such as moving the money through a series of transactions, converting it into different forms, or sometimes investing it in legal businesses.

In this context, concealing criminal property entails actions taken to hide the source of money derived from illegal activities, making it difficult for authorities to trace its origins and proving the funds are connected to criminal acts. For instance, if someone uses proceeds from drug trafficking to make investments or purchases, simply making those transactions does not eliminate the criminal nature of the initial funds—they must be concealed or disguised to effectively launder them.

On the other hand, legally transferring funds, claiming tax exemptions, and accurately declaring income all refer to legal financial practices that do not involve the attempt to mask illegal activities or dissimulate the origins of funds. These actions are part of standard financial and tax practices and are conducted in accordance with regulatory frameworks. Therefore, they do not fit the definition of money laundering.