Smurfing is a money laundering technique where large financial transactions are broken down into multiple smaller transactions to evade detection and reporting requirements. This practice often involves multiple accounts and individuals.
Key Methods
- Transaction splitting
- Multiple accounts
- Coordinated deposits
- Structured timing
- Different locations
Warning Signs
- Multiple small deposits
- Regular patterns
- Round amounts
- Different branches
- Coordinated timing
Detection Methods
- Pattern recognition
- Transaction monitoring
- Account linking
- Behavior analysis
- Network mapping
Prevention Measures
- Transaction limits
- Account monitoring
- Pattern detection
- Identity verification
- Report tracking
Best Practices
- Regular monitoring
- Staff training
- System updates
- Documentation
- Compliance checks
Smurfing remains a significant challenge in anti-money laundering efforts, requiring sophisticated detection systems and vigilant monitoring.