How do 'offshore accounts' relate to money laundering?

Offshore accounts are often associated with money laundering primarily because they offer a level of anonymity to account holders. This anonymity makes it challenging for law enforcement agencies to trace the flow of illicit funds, aiding in the concealment of illegal activities. Criminals often utilize offshore accounts to obscure the origins of money acquired through illegal means, effectively creating barriers for authorities and complicating investigations.

The nature of offshore accounts allows individuals to manage their assets in jurisdictions that have strict privacy regulations, enabling them to hide their financial dealings from regulatory bodies. These accounts can be used to move money across borders without attracting attention, thus facilitating the laundering process by making it difficult to track where the money came from and where it goes.

The other options presented do not accurately capture the primary link between offshore accounts and money laundering, which revolves around the challenge of tracking illicit financial flows rather than focusing on taxation, estate planning, or legitimate business transactions.