Which of the following activities conducted at a financial institution is the strongest example of avoiding reporting thresholds?

Question

Options

• AMaking small cash deposits over the course of a week.
• BPerforming transactions by check (cheque) or other payment instrument.
• CConducting small cash transactions at multiple locations during the same day.
• DEstablishing both a personal and business account and depositing cash in both.

• A
  14% (7)
• B
  4% (2)
• C
  72% (36)
• D
  10% (5)

Explanation

Conducting small cash transactions at multiple locations during the same day is the strongest example of avoiding reporting thresholds. This is a common technique used by money launderers to evade the attention of financial institutions and regulators, who are required to report cash transactions above a certain amount (usually $10,000) to the authorities. By splitting the large sum of money into smaller amounts and depositing them at different branches or ATMs, the money launderer can avoid triggering the reporting requirement and conceal the source and destination of the funds. This practice is also known as smurfing or structuring.

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