What is a common predicate offense for money laundering?

Money laundering commonly arises from a variety of illicit activities, but drug trafficking is one of the most notorious predicate offenses associated with it. This connection is significant because the large sums of money generated from drug sales need to be concealed to avoid detection by law enforcement and regulatory authorities. Drug trafficking involves cash transactions that are often difficult to trace, providing a strong motivation for those involved to launder their profits through various means, such as moving funds through shell companies, investments, or purchasing properties.

The process of laundering allows individuals engaged in drug trafficking to integrate their illicit earnings into the legitimate economy, making it difficult for authorities to track the original source of the funds. This creates a direct relationship between the revenue derived from drug trafficking and the practice of money laundering, making it a frequent point of focus for law enforcement agencies combating organized crime and drug-related offenses.