Final answer:
The statement is True. The private banking area of an institution is a natural choice for launderers because high-dollar transactions are very common.
Step-by-step explanation:
The statement is True. The private banking area of an institution can be an attractive choice for money launderers because high-dollar transactions are common in this sector.
Money laundering is the process of making illegally-gained proceeds (dirty money) appear legal or clean. Private banking, which caters to high net worth individuals, provides a perfect opportunity for money launderers to hide the origin of funds through complex financial transactions.
To illustrate, imagine a money launderer who wants to disguise the source of their illicit funds. They could deposit the money into a private bank account, then transfer it to various offshore accounts, make high-value transactions, or invest it in assets such as real estate or art.