What is a common predicate offense for money laundering?

The choice of drug trafficking as a common predicate offense for money laundering is accurate due to the large amounts of illegitimate cash generated from the sale of illegal drugs. Criminal organizations that engage in drug trafficking often need to disguise the origins of their profits to reintegrate this money into the financial system without attracting attention from law enforcement. Money laundering allows these organizations to take proceeds from drug sales and make them appear as if they have come from legitimate sources.

Drug trafficking consistently ranks as one of the primary sources of unreported, illicit income that requires laundering. This is because drug sales create significant cash flow, which can easily be identified as suspicious if moved in large amounts. Consequently, individuals and groups involved in drug trafficking frequently engage in various money laundering schemes to protect themselves from the legal consequences associated with their illegal activities.

Other options, while they are associated with criminal activities, do not consistently generate the same scale or type of financial transactions needing laundering as drug trafficking does. Tax evasion involves illegal methods to avoid paying taxes, which can result in funds that need laundering but does not produce cash flow at the same level or necessity for money laundering as drug trafficking. Similarly, both identity theft and bank fraud generate illicit funds but again do not typically reach the volume or