What is the legal term for profits derived from illegal activities that are disguised as legitimate income?

The correct term for profits derived from illegal activities that are disguised as legitimate income is money laundering. Money laundering is a process that involves concealing the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions. The ultimate goal is to make the profits appear to be derived from legitimate sources, allowing the individual or organization to use these funds without drawing attention to the criminal activity associated with them.

This term is significant in the legal environment because it is associated with various criminal activities, including drug trafficking, fraud, and corruption. Laws and regulations, such as the Bank Secrecy Act and the USA PATRIOT Act in the United States, are designed to combat money laundering by requiring financial institutions to help track and report suspicious activities.

In contrast, other terms do not capture the full scope of the actions involved in transforming illegal profits into what appears to be legitimate income. For example, while illicit profits refer to earnings from illegal activities, it does not encompass the process of disguising these earnings. Similarly, fraudulent gains might imply deception but do not specifically address the laundering process. Clean revenue suggests income that is legitimate and does not involve any illegal origen, which is entirely opposite to the question's focus on disguising illegal