A nominee arrangement in money laundering uses which of the following?

• A. One of the most common methods: using family members, friends or associates who are trusted to conduct transactions on behalf.
• B. Anonymous shell companies.
• C. Structuring deposits under reporting thresholds.
• D. Bulk cash purchases.

Answer: (A)

A nominee arrangement relies on a trusted person acting on behalf of the real owner to move money or assets, so the true owner remains hidden from the records. Using family members, friends, or associates as the person who conducts transactions is the most common way this concealment happens. The nominee signs documents, opens accounts, and transfers funds, creating a layer of separation between the illicit activity and the actual owner. This makes tracing ownership more difficult for investigators and helps disguise who is really in control of the funds.

Anonymous shell companies, while another anonymity tactic, do not by themselves describe the specific role of a person acting as the front. Structuring deposits under reporting thresholds and bulk cash purchases are about evading reporting or stealthy money movement, but they don’t capture the dynamic of a named individual who physically handles transactions for the true owner.