What does the term "laundering through trade-based activities" refer to?

The term "laundering through trade-based activities" specifically refers to the process of utilizing international trade transactions to disguise illegal funds. This method often involves manipulating invoices, over- or under-invoicing goods and services, or using fictitious trade transactions to make illicit funds appear legitimate.

By falsely representing trade activities, those involved can integrate the illegal proceeds from crime into the legitimate economy. For instance, a criminal might sell or purchase goods at inflated or deflated prices to obscure the source of the money being used. This form of money laundering is particularly difficult to detect due to the legitimate nature of trade processes and the complexity of international trade regulations.

In contrast, the other options do not accurately depict trade-based money laundering. Engaging in online gambling, converting cash to digital currencies, or using social media to facilitate transactions are related to laundering strategies but do not specifically involve the manipulation of trade transactions in the way described. Thus, it is clear that the correct answer emphasizes the significance of trade in disguising the origins of illicit funds.