Money laundering is defined as the process of taking the proceeds of criminal activity and making them appear to come from a legitimate source. Money laundering is often broken down into three categories: intent to promote, intent to conceal or disguise, and intent to avoid reporting requirements. Intent to Promote: This type of money laundering involves taking the proceeds of criminal activity and using them to create more profits. This could involve purchasing investments, setting up shell companies, or creating false invoices to hide the true source of funds. Intent to Conceal or Disguise: This type of money laundering is used to hide the origins of the funds, often by transferring them through multiple accounts or by using false names or identities. Intent to Avoid Reporting Requirements: This type of money laundering is used to avoid government reporting requirements, such as filing suspicious activity reports or declaring income on a tax return. This could involve withdrawing large amounts of cash, transferring funds to offshore accounts, or using money orders or other methods to avoid detection. Different types of money laundering include surfing, structuring, layering, and round tripping. Surfing involves making small deposits or withdrawals in order to avoid detection. Structuring is the act of breaking down a large sum of money into smaller increments in order to avoid government reporting requirements. Layering is the process of moving money through multiple accounts or jurisdictions in order to hide its origin. Round tripping is the act of transferring money from one account to another and then back again in order to create the illusion of legitimate activity.