A smurf is a colloquial term for a money launderer who seeks to evade scrutiny from government agencies by breaking up large transactions into a set of smaller transactions that are each below the reporting threshold. Smurfing is an illegal activity that can have serious consequences.Current bank regulations require banks or other financial institutions to report cash transactions exceeding $10,000—or any others they deem suspicious.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.Smurfing is a form of structuring, in which criminals use small, cumulative transactions to remain below financial reporting requirements.The Patriot Act gave law enforcement agencies broader powers to curb money laundering by putting in place reporting requirements for any deposits, withdrawals, or currency exchanges exceeding $10,000.The term smurf appears to be borrowed from illegal drug manufacturers, who use multiple accomplices to evade the legal purchasing limits of drug components.Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

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