Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

Which phrase best describes “smurfing”?

1. A technique of transferring small amounts of money to avoid detection

2. A method of laundering large sums through casinos

3. A straightforward way to report large cash transactions

4. A strategy for consolidating assets into one location

The correct answer is: A technique of transferring small amounts of money to avoid detection

The phrase that best describes "smurfing" refers to a technique of transferring small amounts of money to avoid detection. This method is commonly used in the context of money laundering, where individuals break up large sums of illicit money into smaller, more manageable amounts that can be deposited into financial institutions or used for various transactions without raising suspicion. By doing this, the individuals can circumvent regulatory reporting thresholds that would alert authorities to potentially suspicious activity. This approach is particularly effective in evading the scrutiny that comes with large transactions, as multiple small deposits or transfers are less likely to trigger alarms or attract attention from law enforcement or financial institutions. The key characteristic of smurfing is its focus on minimizing detection through fragmentation of larger amounts into unremarkable portions, allowing criminal conduct to proceed with reduced risk of exposure.