What is the 'Camden Market Model' in money laundering?

The 'Camden Market Model' in money laundering refers specifically to the method where cash businesses disguise illegal revenues as legitimate sales. This method often involves businesses that primarily deal in cash transactions, such as markets, restaurants, or retail stores, where it is easier to mix illicit gains with genuine earnings. By inflating sales figures or misrepresenting transactions, these businesses can obscure the origins of the money, making illegal funds appear as if they are proceeds from legitimate commercial activities.

This model effectively allows criminals to integrate their dirty money into the financial system without raising suspicion, facilitating the laundering process. The underlying principle is to create a veil of legitimacy around the illegal proceeds, allowing for their eventual use without detection. The other options—such as high-value investments, targeting high-net-worth individuals, or credit systems for low-income families—do not specifically relate to this money laundering strategy and do not align with the mechanics of how the Camden Market Model functions.