The net-worth analysis method of tracing illicit funds is recommended as a primary method of proof under which conditions?

The net-worth analysis method of tracing illicit funds is particularly recommended when income is deposited in a financial institution, but records are unavailable. This method relies on creating a comprehensive overview of an individual's financial status by evaluating their net worth at various points in time. By comparing the increase in net worth to the known sources of income, investigators can identify discrepancies that may suggest illicit activity.

In situations where financial records are not accessible, such as when deposits are made into banks without corresponding documentation, this method becomes invaluable. It allows for the estimation of income that exceeds declared earnings or legal sources, highlighting potential fraud without needing explicit documentation of all transactions.

Employing net-worth analysis in these circumstances can effectively reveal hidden assets or unreported income, making it a robust approach to detecting financial fraud.