Which payment method for purchasing luxury items is a red flag for potential money laundering?

According to the Financial Action Task Force (FATF), the use of large amounts of cash is a common

method for money launderers to move illicit funds [1]. Purchasing luxury items with cash can

indicate an attempt to convert illegal funds into tangible assets that can be easily resold or moved

across borders. As a result, businesses that deal with luxury items are required to implement

enhanced due diligence measures, including monitoring transactions involving large amounts of cash

[1].

Reference: [1] Financial Action Task Force. (2013). Money Laundering & Terrorist Financing Through

the Real Estate Sector. https://www.fatf-gafi.org/media/fatf/documents/reports/ML-TF-through-realestate.pdf