In the context of money laundering, what is the primary purpose of layering?

Layering is a crucial stage in the money laundering process wherein illicit funds are obscured through a series of financial transactions. The primary objective of layering is to confuse investigators and make it difficult to trace the origin of the funds. This is accomplished by moving money through various accounts, institutions, or even across borders, creating a convoluted paper trail that hides the initial source of the money.

This complexity serves to distance the money from its illegal origins, effectively concealing the financial trail that investigators would typically follow. By engaging in multiple, often rapid transactions—such as transferring money between accounts, making purchases, or converting cash into assets—criminals can obscure the visibility of illicit gains, further complicating detection and analysis.

In terms of the other options, they do not represent the essence of layering. Simplifying financial records directly contradicts the confusing nature of layering, while making money movements more evident is the opposite of the intended purpose. Similarly, consolidating funds for investment does not align with the objective of creating obfuscation and complicating tracing efforts.