What is smurfing in AML?

Smurfing is a money-laundering technique involving the structuring of large amounts of cash into multiple small transactions. Smurfs often spread these small transactions over many different accounts, to keep them under regulatory reporting limits and avoid detection.

Why is it called smurfing money laundering?

Structuring appears in federal indictments related to money laundering, fraud, and other financial crimes. The term "smurfing" is derived from the image of the comic book characters, the Smurfs, having a large group of many small entities.

What is the meaning of smurfing?

/ (ˈsmɜːfɪŋ) / noun. computing the activity of using a specially designed computer program to attack a computer network by flooding it with messages, thereby rendering it inoperable. the activity of laundering money by conducting a large number of small transactions through banks and bureaux de change.

Is smurfing a placement or layering?

Smurfing is a financial term that refers to the practice of evading regulatory attention by separating a large quantity of money into several smaller transactions, which are often separated into multiple distinct accounts. Smurfing is a popular placement method.

What is the purpose of smurfing and structuring?

Structuring is a white-collar crime that involves moving large sums of money secretly by breaking them down into smaller amounts. Also known as “smurfing,” it describes the act of dividing illicit proceeds into small sums and placing them in multiple separate bank accounts to avoid attracting attention.

Structuring

What are the examples of smurfing?

What are the 3 stages of AML with examples?

Money laundering typically includes three stages: placement, layering and integration stage. Placement is the first step of money laundering which is the process of moving the money into the legitimate source via financial institutions, casinos, financial instruments etc. and at the same time, hiding its source.

What is nesting in AML?

Definition. Nesting refers to the practice among foreign financial institutions conducting international transactions of allowing one foreign bank to process the cross-border bank transactions of another foreign bank through its U.S. correspondent account.

Is smurfing the same as structuring?

Smurfing is everything Structuring is, and more. It goes deeper than and more complicated. Smurfing involves depositing illegally gained money into multiple geographically dispersed accounts, following a series of transactions and techniques so as to avoid detection.

What are 3 stages of money laundering?

Although money laundering is a diverse and often complex process, it generally involves three stages: placement, layering, and/or integration. Money laundering is defined as the criminal practice of making funds from illegal activity appear legitimate.

Where does the term smurfing come from?

Where Does the Term "Smurfing" Come From? The reason this practice is commonly called "smurfing" comes from two Warcraft II players back in the '90s. They were so good at the game that when other players saw their usernames come up in matchmaking, they would often leave to avoid getting crushed.

What is the new type of money laundering called?

Trade-based laundering: This method is one of the newest and most complex forms of money laundering. This involves under- or over-valuing invoices to disguise the movement of money.

What is smurfing money?

Smurfing is when someone launders money by breaking it up into several smaller sums, hoping to evade detection. It is also known as structuring.

What are the 4 stages of money laundering?

This process involves stages of money laundering: Placement, Layering, and Integration.

How do you avoid CTR?

It is part of the banking industry's anti-money laundering (AML) responsibilities. In order to prevent financial crimes, CTRs require institutions to verify the identity and Social Security Numbers of anyone attempting a large transaction, whether or not that person has an account with the institution.

What is examples of structuring?

For example, if someone has $50,000 in cash to deposit in their bank, should they choose to deposit it through five deposits of $9,999 and one deposit of $5, with the intent to avoid the reporting requirement, they have committed the crime of structuring.

What is SPF in AML?

A politically exposed person (PEP), also known as a senior foreign political figure (SFPF) in the US, can broadly be defined as an individual entrusted with prominent public functions. PEPs typically do not include middle-ranking or more junior officials.

What is sanctions in AML?

The sanction means measures taken by countries to restrict trade and official contact with a country with broken international law. Sanction Screening Service helps companies detect financial crimes and comply with AML / KYC regulations.

What is layering in money laundering?

Layering is the process of making the source of illegal money as difficult to detect as possible by progressively adding legitimacy to it.

What is CDD?

Customer due diligence (CDD) is the act of performing background checks and other screening on the customer to ensure that they are properly risk-assessed before being onboarded. CDD is at the heart of Anti-Money Laundering (AML) and Know Your Customer (KYC) initiatives.

What is the last stage of money laundering?

The final stage of the money laundering process is termed the integration stage. It is at the integration stage where the money is returned to the criminal from what seem to be legitimate sources.

How many stages does AML have?

The money laundering process most commonly occurs in three key stages: placement, layering and integration.

What is required on a CTR?

Federal law requires financial institutions to report currency (cash or coin) transactions over $10,000 conducted by, or on behalf of, one person, as well as multiple currency transactions that aggregate to be over $10,000 in a single day. These transactions are reported on Currency Transaction Reports (CTRs).

What is PEP declaration?

POLITICALLY EXPOSED PERSON (PEP) DECLARATION

Like all estate agents (and many other industries), we are required to ascertain from all buyers and sellers whether they or any member of their immediate family is classed as a Politically Exposed Person (PEP).

What is cleaning money?

Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.