Which term refers to the illegal act of disguising where criminal proceeds came from?

The term that refers to the illegal act of disguising the original sources of criminal proceeds is money laundering. This process involves taking funds obtained from illegal activities and making them appear to be derived from legitimate sources. Money laundering typically consists of three stages: placement, layering, and integration. In the placement stage, illicit money is introduced into the financial system; in the layering stage, various transactions are made to obscure the origin of the money; and in integration, the laundered money is reintroduced into the economy, often in a way that makes it difficult to trace back to its criminal origin.

Fraud pertains to deception intended to secure an unfair or unlawful gain, which does not specifically involve disguising the origin of criminal proceeds. Embezzlement is the misappropriation of funds placed in someone's trust or belonging to one's employer, but it doesn't relate to laundering or disguising sources of income. Bribery involves offering something of value to influence the actions of an official or other person in a position of authority, which again does not involve the disguising of criminal proceeds. Thus, money laundering is the most accurate term that describes the process of making illicit gains appear legitimate.