In the Netherland they want to introduce a new law where every transaction above 100EUR will be reported, yes 100EUR!
https://www.rtlnieuws.nl/nieuws/pol...sen-banken-nieuwe-witwas-wet-minister-kabinet
Large database
The new law should make it possible for every transfer of 100 euros to be checked by the banks. Those banks work together on this, the data ends up in a large database.
I know that banks/EMIs report transactions larger or equal to 5k euro to the tax authorities, but how is that calculated? Per day? Per transaction? Incoming AND outcoming?
- I wire 6000 euro to my friend Axel -> this is easy, the transaction gets reported
- I receive 6000 euro from Axel - do I get reported?
- I receive 3000 euro from Axel and 3000 euro from Volker on the same day- do I get reported?
- I wire 3000 euro to Axel and I receive 3000 euro from Volker on the same day - do I get reported?
As long as the amount remains below the reported amount nothing will get reported.
You definitely won't get reported received twice 3000 eur from different sources if the level of each of those transactions is below the threshold.
Nevertheless other AML triggers of the bank may come into place when they notice multiple incoming transfers from the same source or suspicious activity. This depends on many paramaters such as if the incoming /outgoing transfers are in line with your past activity etc.
Smurfing is a method that works to transfer money and stay under the radar, just has to be done wisely. Transferring the full amount structured in multiple small amounts from the same account to the same account on the same day is not wise. Use different sending/receiving accounts, stay below the reporting threshold and leave some time between the transfers.
https://www.investopedia.com/terms/s/smurf.asp
It seems in the US dividing the amount of the transaction to avoid CTR itself is a crime.
For example, a person might have $50,000 to send abroad, which would ordinarily trigger a Currency Transaction Report and call attention to the source of their income. In order to avoid a CTR, that person could have ten accomplices make bank transfers of $5,000 each. Even if the money is legally sourced, the act of dividing the transaction to avoid being reported is itself a crime.
