Which is an example of structuring with regards to money laundering?

The correct answer is C. A person deposits substantial sums of currency into a number of local branches by making. Structuring is a technique used in the placement stage of money laundering, in which the launderer deposits or withdraws cash in amounts below the reporting threshold to avoid detection or suspicion. Structuring is also known as smurfing, because it involves using multiple…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AA person uses the hawala system to transfer 10,000 USD from Australia to a family member in
BA person deposits 100,000 USD in cash at a bank.
CA person deposits substantial sums of currency into a number of local branches by making
DA person deposits a large amount of more than 100,000 USD in cash and transfers it to another

How the community answered

(41 responses)

A
5% (2)
B
12% (5)
C
78% (32)
D
5% (2)

Explanation

Structuring is a technique used in the placement stage of money laundering, in which the launderer deposits or withdraws cash in amounts below the reporting threshold to avoid detection or suspicion. Structuring is also known as smurfing, because it involves using multiple individuals or locations to carry out the transactions. Structuring is illegal in many jurisdictions and is a red flag for money laundering.

Topics

#structuring#smurfing#cash deposits#placement

Community Discussion

No community discussion yet for this question.

Full CAMS Practice