What does "proceeds of crime" refer to in money laundering?

The term "proceeds of crime" specifically refers to any property, funds, or assets that are obtained, directly or indirectly, as a result of unlawful activities. This includes money or property gained from crimes such as drug trafficking, fraud, embezzlement, and other illegal acts. In the context of money laundering, these illicit gains are often concealed, camouflaged, or integrated into the legitimate economy to make them appear lawful.

In contrast, legitimate profits from legal businesses do not qualify as proceeds of crime, as they are obtained through lawful means. Similarly, tax revenues collected by the government pertain to income generated through legal channels and have no relation to criminal activities. Additionally, funds saved by individuals in bank accounts would only be relevant if those savings originated from illegal sources. Thus, the focus on items obtained specifically through unlawful activities makes "proceeds of crime" a clear and distinct category within the realm of money laundering.