Structuring or Smurfing involves which practice?

• A. Conducting large, conspicuous cash deposits in a single transaction.
• B. Inconspicuous individuals deposit cash or buy bank drafts at various institutions, or one individual carries out transactions for amounts below the reporting thresholds, then transfers to a central account.
• C. Donating large sums to charity.
• D. Purchasing foreign real estate with cash.

Answer: (B)

Structuring or Smurfing is when someone tries to hide the source of funds by breaking up a large amount of cash into smaller, less noticeable transactions across multiple institutions or by having several people conduct small deposits, all kept below reporting thresholds, then pooling the money into a central account. The goal is to avoid triggering financial reporting requirements while still moving the money.

In the described scenario, cash deposits or the purchase of bank drafts are made at different banks, and an individual handles transactions for amounts beneath the reporting limit, with the funds eventually funneled into a single central account. That pattern fits structuring because it aims to stay under the thresholds that would require reporting.

Other options don’t fit this pattern: a single large, conspicuous cash deposit would draw attention and reporting, donating a lot to charity is not about evading financial thresholds, and buying foreign real estate with cash isn’t about evading reporting thresholds through fragmentation.