Is this Structuring?

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Question:

In regards to AML, a customer withdraws under $10,000 in currency on consecutive days, on a regular basis, and is in a commercial business. Does this fall under the regulatory definition of suspicious activity for structuring? If so, where is the definition to support defining the activity as structuring?

Answer:

There are two parts to your question, so there are two answers. As to the definition of "structuring," you need to look to 31 CFR 103.11(gg), where you'll find that it means any attempt to break down currency transactions so as to avoid the reporting requirements of section 103.22, whether that attempt is made by one person or by more than one person, or by using one or more financial institutions.As to whether the behavior you've noted contitutes "suspicious activity" for SAR filing purposes, that depends on whether the bank can determine that there is a legitimate business purpose for the transaction pattern -- other than an attempt to avoid reporting requirements. If the activity pattern can be explained logically as reflecting legitimate business purposes, a SAR is probably not warranted. If, however, there is no reasonable explanation of the transaction pattern -- other than structuring -- then you should report the activity.

First published on BankersOnline.com 1/16/06