Smurfing


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Smurfing

The act of breaking down a transaction into smaller transactions to avoid regulatory requirements or an investigation by the authorities. For example, suppose a jurisdiction requires shareholders to register with regulators if they purchase more than 5% of a company's stock. A shareholder may smurf by having dummy shareholders purchase smaller quantities of stock so that he controls more than the statutory percentage but does not have to register. Smurfing is a crime in many jurisdictions.
References in periodicals archive ?
The second, 'cuckoo smurfing' or third-party payments, involved criminals hiding transactions in the bank accounts of innocent individuals or businesses.
The figures were also skewed by the record-breaking cuckoo smurfing scam in Dundee, which accounted for much of the increase on the previous year.
(d) Smurfing involves the process of making numerous cash deposits into several bank accounts.
The "cuckoo smurfing" scheme involves exploiting an unsuspecting overseas client who wants to send funds to another innocent individual in the UK.
The prosecutor based his request on an expert report that suggested Koza ypek was involved in "smurfing," or laundering money through small transactions that are carried out through several agents, or smurfs, and thus do not require a financial institution to file a report on the transaction with a government agency.
It has been designed to combat practices such as the use of money mules and smurfing, where large transactions are restructured into smaller ones to pass undetected.
The discussion highlighted the possibility of 'smurfing', whereby large transactions are restructured into smaller ones that don't draw attention.
Jalil Ahmed was part of an eight-strong gang which used a sophisticated method known as 'cuckoo smurfing' to launder the ill-gotten gains of criminal networks across Europe through the bank accounts of innocent people.
[the] avoidance of reporting requirements, usually referred to as smurfing."' Barbot, supra note 39, at 186 (footnote omitted).
But the meth cooks soon came up with a work-around: They organized groups of people to make the rounds of pharmacies, each buying the maximum amount allowed--a practice known as smurfing. How to stop these sales?
A person could go from store to store, for example, load up on the drug and sell it on the black market, a practice known as "smurfing."