What is money laundering, and what are its examples?
Money laundering is the legitimisation of illegally obtained gains.
It is concealing and changing the source of funds to make it appear legitimate, even when it is obtained through illegal means such as drug trafficking, corruption, etc.
For example, criminals may break up enormous sums of money and deposit them in multiple bank accounts to avoid suspicion. They may use fake invoices, shell companies, virtual assets, hawala, cross-border transactions and other such methods to launder money.
Check out this article to understand key concepts around ML/TF: The inter-relationship of Money Laundering and Terrorist Financing: Implications and Challenges