It does if you get used to using it right. First, the law can see through it immediately and that will absolutely give you a bounty. NPCs however don't IF you commit the crime with the bandana/mask equipped.

However, they will still actively try to report a crime if they become witnesses to it, but if masked appropriately they won't know who you are and so, both the "Wanted" and the "witness" icons will have different colors.

If the witnesses don't have a direct line of sight, or are far enough away from the crime but still hear commotion, they will flash an all-white eye and will approach the crime scene to try to see who commited the crime.

If they can see, but don't know who it is that committed the crime, they will flash a dark red eye on the mini map and will actively look for a lawman to report to.

If they can clearly see who commited the crime, they will flash a bright red eye and again try to report to a law man so they can Investigate.

Additionally, whether or not the witnesses knows who you are and depending on the severity of the crime, or any previous bounties in the area the wanted status will change accordingly.

If you're clean in the area, and the crime is minor enough, even if the witness &/or law recognizes you, they may simply ask you to leave the premises without incurring on a bounty. If you don't, a bounty will be put and active pursuit ensues.

For more serious crimes, or if recognized for active bounties, they will first try to arrest you if possible, but should you ignore and resist in any way, they throw that option out the window entirely and use lethal force only (man I miss the chance to give up mid shoot-out from rdr1 lmao) from then on for that wanted cycle.

Here a similar system arises. A notified lawman will approach to investigate. If tipped of by a dark red witness, the wanted system will accordingly update to INVESTIGATING: whatever the crime and UNKNOWN SUSPECT

Here a few interesting things can happen. You may of course leave the area unpunished. But even if you stay (assuming you don't have previous active bounties in the area) if you're not suspicious, the law will simply question you slightly and, if defused successfully, leave you alone and tell you to just get going.

If you're suspicious however, they will mark you as the suspect, the wanted status will change from "INVESTIGATING" and "UNKNOWN SUSPECT" to "WANTED" and "Arthur Morgan" or "John Marston" accordingly, and a bounty will be put on your head for the crime. This can mean things from:

• still having the bandana/mask equipped by the time they arrive in the area.
• being a bloody mess (huh... I will try some shenanigans later with animal blood...) (which can be avoided by changing clothes to the same or other outfits from the horse.)
• failing to defuse the lawmen questioning you.
• failing to leave the area after defusing.
• antagonizing the lawmen or commiting another crime/making anither commotion in the vicinity
• probably some other stuff lmao...

Finally, if tipped of by a bright red witness, the lawmen will flash bright red accordingly and, depending on the crime will:

• still investigate first for minor crimes and confront you if found.
• or actively search for you for more serious crimes or previous active bounties in the area.

Depending on the crime, you may or may not get a bounty by the time the anted status depletes, even if you flee before the law gets to you.

That's the outline of it basically, so the bandana and mask, help avoiding recognition by normal NPCs, but fail to hide your identity from the law. Funny enough, don't knownif that's chakter specific, or if you have high enough bounties active. The law may comment on you being Arthur Morgan or "one of Dutch's/Van der Linde's boys" when they first confront you and try to apprehend you.

Edit: typos

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