SIE practice questionhardAnti-Money Laundering
A customer makes multiple cash deposits of $9,500 each over several days to avoid the $10,000 Currency Transaction Report (CTR) threshold. This practice is known as:
- AStructuring✓ Correct answer
- BPlacement
- CIntegration
- DLayering
Explanation
Why A — Structuring
Structuring is the illegal practice of breaking up transactions into smaller amounts specifically to avoid triggering the $10,000 Currency Transaction Report filing threshold. In the money laundering cycle, placement introduces illicit funds into the financial system, layering moves funds through transactions to obscure origin, and integration reintroduces apparently clean funds into the economy.
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