What process involves changing the apparent source and ownership of crime proceeds to make them seem legitimate?

The process that involves changing the apparent source and ownership of crime proceeds to make them seem legitimate is known as money laundering. This process typically involves three stages: placement, layering, and integration. During placement, illicit funds are introduced into the financial system, often through banks or other financial institutions. Next, layering occurs, where the ownership of the funds is concealed through a series of transactions that create confusion and complexity. Finally, integration involves reintroducing the laundered money into the legitimate economy, making it appear as though it originated from a lawful source.

This definition captures the essence of money laundering, highlighting its purpose of disguising the origins of illegally obtained money, thereby allowing the perpetrator to enjoy the benefits without drawing suspicion. Other options such as the proceeds of crime refer to the money obtained through illegal activities, but do not specifically pertain to the act of legitimatizing those funds. Red flags are indicators that could suggest illicit activity, and tipping off refers to alerting a party about a potential investigation, which does not relate to the process of laundering money. Thus, the correct answer clearly aligns with the definition and stages of money laundering, making it the appropriate choice.