In the context of money laundering, what does 'stripping' refer to?

Stripping, in the context of money laundering, involves breaking down large transactions into smaller ones to avoid detection by financial institutions and regulatory authorities. This practice is often referred to as "smurfing." By conducting numerous smaller transactions, the launderer can evade thresholds that might trigger reporting requirements or raise suspicions. This method allows illicit funds to be more easily integrated into the financial system without drawing attention.

The other options represent different aspects of money laundering techniques. For example, legalizing illicit funds is an overarching goal of money laundering, while transferring funds between accounts and concealing true ownership are additional methods utilized within various laundering schemes. However, none of these options specifically define the process of stripping, which focuses on the fragmentation of transactions.