What is the difference between Layering and Structuring?
Layering and structuring are two distinct concepts often discussed within the context of money laundering and Anti-Money Laundering (AML) practices.
The term layering indicates adding more layers, i.e., carrying out multiple transactions and moving the money frequently from one account or person to another. It refers to the process of separating illicit money from its source through a series of complex financial transactions.
Structuring can be one way of layering. It involves splitting large sums of money into smaller amounts below the regulatory thresholds to avoid any filing triggers by regulated entities.
It’s essential to be aware of these techniques, not only for regulatory compliance but also for understanding the broader context of financial crime prevention.
For a more in-depth understanding of Layering and its implications on AML practices, read the detailed article