What is "self-laundering"?

Self-laundering refers to the process where an individual takes steps to conceal the origins of illicit funds by converting them into seemingly legitimate funds without involving an outside party. This typically means the person themselves is engaged in activities that attempt to make the illegal money appear legitimate.

By directly converting these illicit funds, the individual might undertake various transactions or investments that serve to mask the money's original source. This concept is significant in the context of money laundering laws, as it highlights that individuals can face legal repercussions for engaging in self-laundering—often complicating the legal landscape surrounding financial crimes.

The other options pertain to financial processes but do not align with the core definition of self-laundering, which specifically involves the individual's direct action to launder their own illicit funds.