Which statement describes a common characteristic of funnel accounts?

• A. Deposits are typically large and in one location
• B. Deposits often below CTR threshold and funds withdrawn quickly
• C. No cash deposits
• D. Only international wires

Answer: (B)

Funnel accounts are designed to pool illicit funds while avoiding detection by regulators by keeping individual deposits below reporting thresholds and moving the money out quickly. The important idea is structuring deposits so they don’t trigger mandatory reports, which often means making many small deposits that stay under the threshold, then rapidly withdrawing or transferring the funds to conceal the money’s origin and consolidate it for further steps. This pattern—frequent deposits that are below the CTR threshold followed by swift withdrawal or transfer—best describes how funnel accounts typically operate.

Deposits that are large and in one location would more likely draw immediate scrutiny and reporting, not align with the bulking-and-clearing behavior of funnel accounts. Lack of cash deposits would remove the core mechanism of pooling illicit funds, and limiting activity to only international wires misses the broader pattern of structuring and rapid movement that characterizes funneling.