What is smurfing money laundering?

Smurfing, also known as structuring or funneling, is a money laundering technique that involves breaking up large sums of money into smaller, less noticeable amounts to avoid detection. In smurfing, the launderer will use multiple individuals, called "smurfs," to transfer these smaller amounts of money between different accounts or financial institutions, making it harder for authorities to track the movement of the funds.

Smurfing is typically associated with the illegal drug trade, as drug traffickers often receive large amounts of cash from their illegal sales and need to launder it to avoid suspicion. The process is also used by individuals involved in other criminal activities, such as fraud, embezzlement, and bribery.

To combat smurfing, financial institutions and law enforcement agencies rely on suspicious activity reports, transaction monitoring, and customer due diligence to identify and report any suspected instances of money laundering. Laws and regulations such as the Bank Secrecy Act and the Patriot Act also require financial institutions to implement anti-money laundering measures to prevent and detect such activity.