Post
Topic
Board Legal
Re: EU’s 4th AML Directive Aims to make the Payment Ecosystem Crime Free
by
audaciousbeing
on 17/08/2018, 08:02:00 UTC
..What they will mostly do is instead of making a whole transaction worth 10,000 they will just do two 5,000€ transactions in order to remain undetected. ...


Regulators are well aware of this phenomenon.

The practice of splitting up transactions into smaller transactions in order to bypass
reporting is called Structuring / Smurfing.

https://en.wikipedia.org/wiki/Structuring

You will not go undetected if you try this, because banks are also obliged
to report Structuring / Smurfing in most countries in the world.
E.g. they might not report you for making a transaction above the threshold, but they
will report you for suspicious activity, which is even worse for you as a customer
than the standard reporting.



What I have noticed about rules is that, its not applicable for everybody. Only some set of people decides to put it in place in other to check the excesses of people below them while they live above it. The only way one might run into problem with the bank is when someone specifically report your account or some huge abnormal fund find its way into your account, there is a problem and that is why there is usually a threshold for different types of account that the bank operates for several individuals and the moment your level is not exceeded, you should be fine.

For me, I don't see anything special in the rules being established now because most of this are equally applicable in the fiat world and for anyone properly abreast with the workings of the banking/financial industry would not be surprised at this but because majority of crypto holders having say 30BTC have not been exposed to carry out the dollar equivalent of such transaction in the banking system. And with all of these procedures put in place, so far humans are the ones managing this, there will always be compromise.