Which of the following is a common method used in money laundering?

Layering funds through various transactions is a common method used in money laundering because it aims to obscure the original source of illicit funds. In this phase of money laundering, the launderer engages in a series of complex transactions to make tracing the origins of the money difficult. This could involve moving money through various bank accounts, purchasing high-value assets, or converting cash into different currencies. The goal is to create a convoluted trail that lacks transparency and does not easily reveal the connection to criminal activity.

The other options do not reflect laundering activities. Direct financial donations to charities can often be legitimate and do not inherently involve any attempts to disguise funds. Documenting all business transactions and displaying accurate financial records are standard business practices that promote transparency and do not align with the objectives of money laundering, which focuses on concealing and disguising illicit funds.