Structuring is a common feature of the _____ phase of money laundering. It involves financial transactions made in smaller amounts intended to avoid financial reporting requirements.

Question

1. financing
2. placement
3. layering
4. integration

Answer 1

The correct answer is 2. placement. Structuring, often referred to as "smurfing," is a technique used during the placement phase of money laundering to avoid detection by financial institutions and regulatory authorities by breaking down large amounts of illicit cash into smaller, less suspicious amounts.