Which of the following is an example of money laundering?

Money laundering involves concealing the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions. The goal is to make the illicit funds appear legitimate.

Tax evasion, on the other hand, refers to the illegal act of not reporting income, underreporting income, or inflating deductions in order to reduce tax liability. This is a criminal act that can result in significant penalties. While tax evasion itself is not the same as money laundering, it often leads to the need for money laundering. Individuals who evade taxes may seek to hide the proceeds of their evasion in a way that appears legal, which exemplifies the essence of money laundering.

In contrast, operating a business legally, saving from tax compliance, and accurately reporting all income are actions that conform to the law. These activities do not involve attempting to disguise the illegal source of funds. Therefore, they do not fall under the definition of money laundering.