Which statement best describes blending of funds?

Which statement best describes blending of funds?

• A. Hiding funds inside real estate titles
• B. Layering through complex transactions
• C. Using straw buyers
• D. Co-mingling of illegitimate funds with legitimate funds

Answer: (D)

Blending of funds means mixing illicit proceeds with legitimate money so the illicit origin becomes hard to detect. This is exactly what co-mingling describes—putting illicit funds into legitimate accounts or using legitimate funds to cover illicit activity, creating a single pool of money that disguises the true source. The other examples illustrate separate laundering steps or tactics: concealing funds in real estate involves converting money into property rather than mixing it with clean funds; layering through complex transactions aims to obscure the trail through many moves; straw buyers are used to facilitate illicit purchases, not to blend funds. So, co-mingling best captures the concept of blending funds.

Blending of funds means mixing illicit proceeds with legitimate money so the illicit origin becomes hard to detect. This is exactly what co-mingling describes—putting illicit funds into legitimate accounts or using legitimate funds to cover illicit activity, creating a single pool of money that disguises the true source. The other examples illustrate separate laundering steps or tactics: concealing funds in real estate involves converting money into property rather than mixing it with clean funds; layering through complex transactions aims to obscure the trail through many moves; straw buyers are used to facilitate illicit purchases, not to blend funds. So, co-mingling best captures the concept of blending funds.