Which of the following is a structuring red flag related to customer patterns?

• A. Deposits exactly matching monthly income.
• B. Out of pattern amounts or frequency for the customer.
• C. Frequent electronic transfers to family members.
• D. Transactions flagged as normal.

Answer: (B)

Structuring, or smurfing, is when someone splits larger funds into smaller amounts to avoid reporting requirements. The red flag tied to how a customer patterns their activity is when the amounts or the timing are out of pattern for that customer. Deviations in size or frequency from the customer’s normal behavior suggest an attempt to conceal the true source or destination of funds. Deposits that align with a known monthly income are often legitimate, frequent transfers to family members can be normal, and transactions flagged as normal provide no warning. So, irregular or atypical patterning of deposits indicates structuring.