Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.
What is structuring and what is the role of a Smurf in regard to structuring? Structuring, also known as smurfing in banking jargon, is the practice of executing financial transactions such as making bank deposits in a specific pattern, calculated to avoid triggering financial institutions to file reports required by law, such as the United States’ Bank Secrecy Act (BSA) and Internal Revenue …
Similarly, Why do drug dealers put money in the dryer? Best Answer: Drug dealers put money in the dryer to get rid of evidence, specifically by making it seem like the money was just found and not involved in illegal activity.
What is Republic No 9160?
— It is hereby declared the policy of the State to protect and preserve the integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity.
Where do drug dealers hide their money?
Drug cartels hide their profits by flushing them through the vast global financial market, using various methods including internet payment platforms, cryptocurrencies, payment cards and real estate. Then, they use the laundered cash to underwrite their trafficking.
What is an example of smurfing?
For example, a smurf may pack cash in a suitcase and smuggle it to another country for gambling, buying international currency, or other reasons.
What is required on a CTR? Federal law requires financial institutions to report currency (cash or coin) transactions over $10,000 conducted by, or on behalf of, one person, as well as multiple currency transactions that aggregate to be over $10,000 in a single day. These transactions are reported on Currency Transaction Reports (CTRs).
Why is it called cuckoo smurfing? The word ‘cuckoo’ in cuckoo smurfing comes from the cuckoo bird. It lays its eggs in the nests of other birds. These syndicates lay their illicit cash in the accounts of other innocent people.
Why do criminals wash money in washing machine?
Money obtained from certain crimes, such as extortion, insider trading, drug trafficking, and illegal gambling is « dirty » and needs to be « cleaned » to appear to have been derived from legal activities, so that banks and other financial institutions will deal with it without suspicion.
Do you actually wash money when laundering? Most bills will remain intact in the washer and dryer. But while a wash cycle may make your money look untainted, it nonetheless ruins the bills; hot water can damage security features, and detergents change the way cash reflects light, which currency-sorting machines detect. Banks shred washed money.
How can you tell if someone is money laundering?
Warning signs include repeated transactions in amounts just under $10,000 or by different people on the same day in one account, internal transfers between accounts followed by large outlays, and false social security numbers.
What is RA No 9194? AN ACT AMENDING REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE “ANTI-MONEY LAUNDERING ACT OF 2001”
What is freeze order?
A Freeze Order is an order issued by the Court of Appeals that blocks or restrains monetary instruments or properties in any way related to an unlawful activity from being transacted, withdrawn, deposited, transferred, removed, converted, concealed, or otherwise moved or disposed without affecting the ownership.
What is AMLA law?
The Anti-Money Laundering Act of 2001 (AMLA) is the primary Anti money laundering Philippines law. The AMLA investigates money laundering and other financial crimes to protect financial institutions and deter criminals from making the Philippines a money laundering site for criminal proceeds.
What are the signs of a drug dealer? How to spot a drug lab:
- Suspicious items such as improvised heating and cooling mechanisms.
- An unusual chemical smell.
- Fan noise.
- People never putting their rubbish out or burning their rubbish.
- Little traffic at a property during the day but frequent traffic at night.
- Windows blackened out or reinforced.
Why do you have to clean drug money?
The money normally comes from activities like drug and sex trafficking, terrorist activities, and other illicit means. It is considered dirty and is laundered to make it look like it came from a legal source(s). Money laundering is a serious crime that carries heavy penalties, including jail time.
Why do drug dealers wash money?
In order to invest the profits of their illicit activities and avoid having their assets seized by the government, drug traffickers must transform the monetary proceeds from their criminal activity into revenue from apparently legal sources. This is known as money laundering.
Why is it called Smurf? The reason this practice is commonly called « smurfing » comes from two Warcraft II players back in the ’90s. They were so good at the game that when other players saw their usernames come up in matchmaking, they would often leave to avoid getting crushed.
What is KYC smurfing?
STEP 1: X deposits illegal proceeds into many bank accounts. The amount transferred is below the threshold level for reporting suspicious transactions. If Rs 10 lakh is the threshold level, deposits will be for Rs 9 lakh. This is called ‘smurfing’.
Is structuring deposits a crime? Structuring is a Crime
Typically, this means avoiding depositing more than $10,000 of cash at any one-time — to avoid a Currency Transaction Report (CTR) from being issued, and/or to avoid a potential Suspicious Activity Report (SAR) from being issued.
What is the difference between a CTR and a SAR?
A Currency Transaction Report (CTR) should be filed when a transaction or series of transactions exceeds the $10,000 threshold within a 24 hour period. A Suspicious Activity Report (SAR) must be filed when financial institutions become aware of suspicious behavior that could potentially be crime-related.
What is STR and CTR? 3. In paragraph 6 of our circular dated February 15, 2006, referred to above, banks were advised to initiate urgent steps to ensure electronic filing of cash transaction report (CTR) and Suspicious Transaction Reports (STR) to FIU-IND. It has been reported by FIU-IND that many banks are yet to file electronic reports.
What is CRT in banking?
Credit Risk Transfer (CRT) transactions are structures that involve the transfer of credit risk of all or a tranche of a portfolio of financial assets. The protection buyer will typically own the portfolio of assets, which may be corporate loans, mortgages, or other assets.