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Definition of 'Smurf'

A smurf is a financial transaction that is designed to avoid taxes or regulations. The term is derived from the Smurfs, a cartoon character who is known for his small size and blue color. Smurfing is often used to describe transactions that are made in small amounts in order to avoid detection by regulators. For example, a person may make a series of small deposits into a bank account in order to avoid the reporting requirements that apply to large deposits. Smurfing can also be used to move money between countries in order to avoid foreign exchange controls.

Smurfing is illegal in most countries, and it can carry significant penalties. However, it is still a common practice, and it can be difficult for regulators to detect.

There are a number of different ways to smurf money. One common method is to use multiple bank accounts. A person may make a series of small deposits into one account, and then transfer the money to another account. This can make it difficult for regulators to track the flow of money.

Another method of smurfing is to use cash. A person may withdraw cash from one bank and deposit it into another bank. This can also make it difficult for regulators to track the flow of money.

Smurfing can be used for a variety of purposes, including tax evasion, money laundering, and terrorist financing. Tax evasion is the illegal practice of avoiding paying taxes. Money laundering is the process of concealing the source of illegally obtained money. Terrorist financing is the process of providing financial support to terrorist organizations.

Smurfing is a serious crime, and it can have a number of negative consequences. Tax evasion can deprive governments of revenue that is needed to fund public programs. Money laundering can help criminals to conceal their activities and make it more difficult for law enforcement to track them down. Terrorist financing can help terrorist organizations to carry out their attacks.

If you suspect that someone is smurfing money, you should report it to the authorities. You can do this by contacting your local law enforcement agency or the Financial Crimes Enforcement Network (FinCEN).

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