What is the main purpose of money laundering?

The main purpose of money laundering is to hide the origin of illegally obtained funds. This process involves making "dirty" money, which is acquired through unlawful activities such as drug trafficking, fraud, or corruption, appear legitimate. By disguising the source of these funds, individuals can avoid detection by law enforcement agencies and continue to utilize the money without the risk of it being seized during criminal investigations.

Money laundering typically consists of three key stages: placement, layering, and integration. In the placement stage, the illicit funds are introduced into the financial system. The layering stage involves complex transactions designed to obscure the money’s source, and the integration phase allows the laundered funds to re-enter the economy in a way that seems legitimate.

While options like evaluating investment returns, transferring money internationally, or increasing cash flow might involve financial transactions, they do not encapsulate the primary criminal intent behind money laundering, which is fundamentally focused on concealing the illegitimate origins of funds.