The term Nominee describes which money laundering method?

• A. Using family members, friends or associates trusted to conduct transactions on behalf of the launderer.
• B. Structuring cash deposits under reporting thresholds.
• C. Creating complex payment chains to avoid tracking.
• D. Purchasing large real estate with cash.

Answer: (A)

Nominee arrangements involve using a trusted person to act as the apparent owner or operator of an asset, while the true owner remains hidden. A nominee can sign documents and conduct transactions on behalf of the real issue, so ownership and control appear to reside with someone else. In real estate, this means the nominee’s name might appear on the title and in records, even though the launderer or beneficial owner actually controls the property. This disguises who really owns and benefits from the asset, which is exactly what money launderers are aiming to do.

That’s why the option describing using family members, friends, or associates to conduct transactions on behalf of the launderer fits the concept of a nominee.

The other options refer to different money laundering techniques: structuring deposits under reporting thresholds is smurfing, creating complex payment chains is layering to obscure the trail, and purchasing large real estate with cash is placement/integration.