Smurfing

Smurfing is the practice of executing financial transactions in order to avoid formal bank reporting requirements. The usual practice is to break down a large amount of cash into smaller amounts that fall beneath the $10,000 reporting threshold of the Bank Secrecy Act, and deposit these smaller amounts in a variety of financial institutions. If a larger sum had been deposited, the bank would have been required to file a Currency Transaction Report with the government that identified the person making the deposit and the amount of funds involved. The concept is commonly used by money launderers to hide their activities.

Related Courses

Money Laundering