What is Smurfing and Structuring | Smurfing | Structuring in AML | Smurfing Money Laundering | Structuring in Money Laundering
Smurfing, refers to the practice of breaking down large financial transactions into smaller, less conspicuous transactions to avoid suspicion and detection by authorities. The term "smurfing" is derived from the cartoon characters called "Smurfs," who are small and blue, just like the small transactions that make up the larger whole.
Structuring is a practice similar to smurfing but with a specific focus on avoiding reporting requirements related to cash transactions. Financial institutions are required to report cash deposits or withdrawals above a certain threshold to the authorities to prevent money laundering and other illegal activities.
