Money laundering is defined as which of the following?

• A. Any act of saving money legally.
• B. Any act or attempted act to disguise the source of money or assets derived from criminal activity, transforming dirty money into clean money.
• C. Investing in retirement funds.
• D. None of the above.

Answer: (B)

Money laundering is the process of disguising the origin of funds or assets derived from criminal activity so they appear legitimate. It involves acts or attempted acts to obscure where the money came from, transforming dirty money into clean money. In practice, this often follows stages like placement, layering, and integration, moving illicit funds through the financial system until they seem lawful. For real estate professionals, recognizing this helps guide due diligence, record-keeping, and reporting when suspicious transactions or structures arise. The other options describe legal financial activities—saving legally or investing in retirement funds—so they don’t fit the concept of disguising illicit proceeds.