Which method is used to launder money via wire remittances sent through a bureau de change or money services business?

Question

Options

• AA customer in country A makes a weekly small wire transfer to the bank account of an individual
• BA customer in country A makes frequent wire transfers to a single customer in country B that are
• CA large number of wire transfers are sent from a large number of senders in country A to a large
• DA customer in country A receives four small wire transfers from four different individuals located in

• A
  9% (4)
• B
  72% (33)
• C
  17% (8)
• D
  2% (1)

Explanation

The correct answer is B, because it describes a method of money laundering known as structuring or smurfing. This is when a customer or a group of customers break down large amounts of illicit funds into smaller transactions that are below the reporting threshold, and then send them to another customer or entity, often in another country. This way, they avoid triggering any suspicion or regulatory reporting by the bureau de change or money services business (MSB) that processes the wire transfers. Structuring or smurfing is a common technique used by money launderers to move funds across borders and disguise their origin and destination. The other options are not necessarily indicative of money laundering, although they may require further investigation depending on the circumstances and the risk profile of the customers and countries involved.

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