Microstructuring is a method of money laundering that involves breaking down large transactions into smaller amounts that are below the reporting threshold or the level of scrutiny of financial institutions. One of the red flags of microstructuring is frequent visits to make cash deposits of nominal amounts, as this may indicate an attempt to avoid detection and conceal the source or destination of illicit funds. Other red flags of microstructuring include checking accounts receiving cash deposits in amounts under $1,000 as infrequently as several times a month, followed by ATM withdrawals in foreign countries, or deposits that are inconsistent with the customer’s profile or business activity.

FinCEN Advisory – FIN-2010-A001, page 4

Red Flags of Money Laundering | PPT, slide 9

Red Flags of Microstructuring | CAMS Exam Preparation | ACAMS