What is a 'money mule'?

A 'money mule' is a person who, often unwittingly, transfers illegally obtained money on behalf of others. This typically involves receiving funds that have been acquired through fraudulent or criminal means and then forwarding them to other individuals, often as part of a larger money laundering scheme. The role of a money mule is critical in the laundering process, as it helps to obscure the origin of the funds and complicate law enforcement's ability to track the money back to the original criminal activity.

In this context, the other options do not accurately define a money mule. A legitimate financial advisor, for example, operates within the law and provides advice on managing and investing money ethically. Similarly, a bank employee who processes transactions is acting within a regulated financial framework and has no involvement in illicit activities. Lastly, a legal custodian of funds has a recognized and lawful job of safeguarding clients' assets without engaging in any criminal behavior. Therefore, the identified definition of a money mule highlights their role in facilitating illicit financial transactions, which is key to understanding money laundering techniques.