Which action would indicate a potential money laundering scheme when observed by a securities brokerage firm manager?

Structuring transactions to avoid reporting is a clear indicator of potential money laundering activities. This practice, often referred to as "smurfing," involves breaking up large sums of money into smaller amounts that fall below the reporting thresholds established by financial regulations. By doing so, individuals seek to evade detection by authorities, particularly in the context of cash transactions.

When a client requests to structure transactions intentionally, it raises red flags for securities brokerage firms. Regulatory bodies are constantly on the lookout for patterns that suggest individuals are attempting to bypass anti-money laundering (AML) regulations, which are designed to identify and prevent illicit financial activities. Such behavior is a common tactic employed by money launderers to make the illicit origins of funds appear legitimate, thus making it a significant concern for financial institutions.

In contrast, making a single large cash deposit may be unusual and warrant further inquiry, but it does not inherently suggest the intentional deceit associated with structuring. Similarly, a customer's inquiries about filing a Currency Transaction Report (CTR) or denying a transaction based on CTR implications may reflect a lack of understanding or concern about regulatory requirements, rather than a deliberate attempt to launder money.