Which of the following is a sign of potential money laundering?

The identification of potential money laundering often hinges on the nature of financial transactions and behaviors that deviate from typical banking patterns. Large cash transactions and rapid movement of funds are particularly indicative of money laundering activities. These behaviors represent a method to disguise the origins of illegally obtained money by introducing it into the financial system in a way that appears legitimate.

Large cash transactions might signal an attempt to avoid traditional banking scrutiny, while rapid movement of funds can suggest efforts to obscure the trail of money. Criminals often transfer funds across various accounts or institutions to make tracking difficult and further distance the money from its illegal source.

In contrast, regular and steady banking transactions, infrequent withdrawals and deposits, and consistent account balances over time typically suggest stable, legitimate financial activity rather than the erratic patterns often associated with money laundering.