Structuring (Smurfing)
Definition
A placement-stage technique in which large cash amounts are broken into multiple smaller deposits or transactions, each deliberately kept below the threshold that triggers a cash transaction report. In the United States the reporting threshold is $10,000; in the EU it is EUR 10,000. Structuring itself is a criminal offence in most jurisdictions, independent of the underlying predicate crime.
Related terms
- Beneficial owner
- The natural person who ultimately owns or controls a legal entity or arrangement, as distinct from the nominee or registered owner. Anti-money-laundering...
- Integration
- The third stage, in which laundered funds re-enter the legitimate economy as apparently clean wealth. Common integration mechanisms include real estate purchases,...
- Layering
- The second stage, designed to sever the audit trail between the illicit source and the funds. Layering typically involves a rapid series...
- Placement
- The first stage of money laundering, in which illicit cash is introduced into the financial system. Methods include cash deposits, currency exchange,...
- Trade-based money laundering (TBML)
- A typology that uses international trade transactions to transfer value across borders. Mechanisms include over-invoicing or under-invoicing goods, falsifying quantities or descriptions,...
Explained in
- Money Laundering Typologies and Audit IndicatorsA placement-stage technique in which large cash amounts are broken into multiple smaller deposits or transactions, each deliberately kept below the threshold t...