smurfing

n. the making of a series of small transactions to escape the regulatory notice a single larger transaction might attract. Subjects: English, United States, Crime & Prisons, Drugs, Money & Finance

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Citations: 1985 Business Week (New York City) (March 18) “Money Laundering—Who’s Involved, How It Works, And Where It’s Spreading” p. 74: Because tellers have become more suspicious of transactions just under $10,000, the size of the launderer’s deposits is going down steadily, to $7,000 and even $5,000. The smaller the amounts, the more herculean the task. But the “smurfs,” couriers who make the deposits, have proved to be remarkably prolific.…To be more efficient, smurfs target areas where several banks are close to each other and, like most people, they avoid busy banks. “There is very little smurfing in New York City,” says Charles Saphos, an Assistant U. S. Attorney in Florida, “because the lines are too long.” 1992 Tom Rouillard Herald (Rock Hill, S.C.) (Oct. 23) “Nightclub owner faces 32 counts of dodging IRS”: Quinn said investigators call “hopping from bank to bank” with cash amounts just under the $10,000 limit “smurfing,” after the children’s cartoon in which little blue characters hop around. 1994 Michael Grunwald Boston Globe (Mass.) (Oct. 13) “Former representative fined for funds scheme” p. 55: By splitting up the transaction—also known as “structuring” or “smurfing”—Marotta evaded regulations requiring banks to file currency transaction reports for withdrawals over $ 10,000. 1998 Kevin McDermott @ Springfield, Ill. St. Louis Post-Dispatch (Mo.) (Jan. 7) “Illinois Finds Record Number Of Labs In ‘97” p. A1: Missourians had been caught in Illinois on several occasions “smurfing”—that is, buying anhydrous ammonia, iodine crystals, ether and other ingredients from various sources, far from their labs, to avoid raising suspicion. 2004 Jamie Fetty Tribune-Star (Terre Haute, Ind.) (July 29) “Two men arraigned in Indy after allegedly selling cold pills”: Sometimes meth cooks can get around these regulations by what McClintock referred to as “smurfing,” stopping from one store to another to pick up one or two packages until they have enough to work with.

Posted 3 Aug 04 | Permalink | Tell a Friend

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Is there a time limit to report this activity?

by Susan Gallo 13 Jun 08, 1123 GMT