Which of the following is a placement technique?

• A. Donating to charity to avoid detection
• B. Electronic transfers only
• C. Tax evasion through loopholes
• D. Blending of funds

Answer: (D)

Placement is about getting illicit proceeds into the financial system. Blending of funds fits this idea perfectly because it involves mixing illicit cash with legitimate money so the total amount appears normal and the origin of the funds is obscured as they enter banks or other financial channels. This direct act of mixing is a classic way to introduce money into the system at the outset of laundering, making it harder to detect.

Donating to charity can be used in laundering schemes but isn’t the defining placement technique, since it relies on a front to move money rather than the act of introducing cash into the financial system itself. Electronic transfers describe a method for moving money, but they aren’t by themselves the placement action. Tax evasion through loopholes is about avoiding taxes, not disguising the source of funds within financial institutions.