What are "disguised transactions" in money laundering?

Disguised transactions in money laundering refer specifically to transactions that are structured to conceal their true purpose. This is a key tactic used by money launderers to hide the illicit origins of the money. By masking the nature or source of funds, these transactions can often appear legitimate to regulatory authorities and financial institutions. Disguised transactions can involve various methods, such as layering funds through multiple accounts or utilizing complex financial instruments to obscure their origins.

In contrast, transactions that are highly visible do not serve the purpose of concealment; they are the opposite of what a disguised transaction intends to achieve. Cryptocurrency transactions, while they can be used in money laundering, are not inherently disguised unless they utilize obfuscation techniques. Lastly, transactions solely involving cash payments do not necessarily qualify as disguised, as cash can be both visible and verifiable. Thus, the correct choice accurately captures the essence of concealed transactions in the context of money laundering.