What term describes the practice of separating large cash transactions into smaller ones?

The term that describes the practice of separating large cash transactions into smaller ones is structuring. Structuring is a technique often used to evade reporting requirements set by financial institutions and regulatory bodies, particularly those related to large cash transactions. By breaking down larger sums into smaller, less suspicious amounts, individuals can avoid triggering mandatory reporting thresholds and scrutiny from authorities. This practice is considered a form of money laundering, as it disguises the source of illicit funds and attempts to make the activity appear legitimate.

In this context, smurfing is often used interchangeably with structuring, but it specifically refers to the involvement of multiple individuals (or "smurfs") who each conduct small transactions on behalf of the main actor, effectively dispersing the money over a broader network to further avoid detection. While layering and integration are other phases of the money laundering process, they do not specifically refer to the act of breaking larger transactions into smaller ones. Layering involves complex financial maneuvers to obscure the source of funds, and integration refers to the final stage of money laundering where illicit funds are reintroduced into the economy as legitimate assets.