Which financial crime involves concealing criminal proceeds?

Money laundering is a financial crime specifically focused on concealing the origins of illegally obtained money, allowing criminals to make the proceeds of their activities appear legitimate. This process typically involves three stages: placement, layering, and integration. In the placement stage, the illicit funds are introduced into the financial system. Layering then obscures the trail of these funds through complex transactions, making it difficult for authorities to trace the money back to its criminal source. Finally, integration involves reintroducing the laundered funds into the economy so that they can be used without suspicion.

The other options, while also serious financial crimes, do not primarily focus on the concealment of criminal proceeds in the same way. Fraud involves deception for personal or financial gain without necessarily relating to the laundering of illicit funds. Terrorist financing specifically refers to the support of terrorism through the provision of funds, which may or may not involve criminal proceeds. Bribery entails giving or receiving something of value to influence actions, rather than concealing the origins of that value. Therefore, money laundering is distinctively recognized for its role in disguising the illicit source of funds.