Which of the following activities might indicate money laundering?

Unusual patterns of cash deposits can be a significant indicator of money laundering activity because they often deviate from a customer's normal financial behavior. Money laundering involves concealing the origins of illegally obtained money, typically by funneling it through a complex sequence of transactions. When an individual makes cash deposits that are inconsistent with their known income or business activities, it raises red flags for financial institutions. Such patterns often include large deposits that are structured to avoid reporting thresholds, deposits from sources that cannot be adequately verified, or frequent deposits of cash in excessive amounts. These behaviors can suggest that the individual is attempting to disguise the source of illicit funds, making it a key indicator for detecting potential money laundering.

In contrast, frequent financial consultations, regular charitable donations, and making small purchases with credit cards generally do not provide the same level of concern. Financial consultations might reflect a customer's legitimate interest in managing their assets rather than suspicious activity. Charitable donations are also typically seen as positive actions unless they exhibit unusual patterns or are linked to organizations with dubious reputations. Lastly, small purchases with credit cards usually indicate normal consumer behavior rather than any potential laundering activity. Hence, these activities are less likely to signify attempts at concealing the source of funds.