In the context of money laundering, what does 'criminal' actor primarily do?

A 'criminal' actor in the context of money laundering primarily makes illegal proceeds appear legitimate. This process is crucial to money laundering, as individuals or groups involved in criminal activities seek to disguise the origins of their ill-gotten gains. By integrating these illegal funds into the financial system, they aim to obfuscate their connection to crime, allowing them to use the money without attracting attention from law enforcement or regulatory authorities.

This action typically involves a series of transactions designed to confuse the paper trail associated with the funds, such as moving money through various accounts, converting cash into different assets, or using shell companies. By doing so, the criminal actor effectively legitimizes their income and facilitates its use in the economy.

In contrast, other options reflect activities that do not directly contribute to money laundering. For instance, investing legally generated funds is a standard financial activity not associated with illicit intent. Engaging in the production of goods and creating legitimate financial institutions are activities focused on lawful operations rather than disguising the origins of illegal funds.