Structuring - Withdrawals
Description
This test detects suspicious patterns in withdrawals that indicate potential attempts to evade regulatory detection thresholds, a behavior often associated with money laundering. It identifies users whose aggregated withdrawal transaction amounts and counts surpass predefined limits. This approach flags activity consistent with structuring, where transactions are intentionally divided to bypass scrutiny.
Use Cases
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Anti-Money Laundering (AML) Compliance: Monitor transactions for suspicious patterns that may indicate attempts to evade regulatory reporting requirements, such as splitting large withdrawals into smaller amounts.
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Enhanced Due Diligence: Compliance teams can apply the Structuring Test to flag high-risk customers or accounts involved in frequent transactions just below the reporting threshold.
Required Data
Withdrawals Data
| Variable | Description |
|---|---|
timestamp | Timestamp of the withdrawal made (YYYY-MM-DD hh:mm:ss). |
user_id | User ID to identify the individual user. |
currency_type | The currency type of withdrawal being made; fiat or crypto. |
symbol | The asset symbol; e.g., BTC, ETH, USD, EUR. |
price_usd | The price of the symbol in USD. |
amount | The amount of the symbol being withdrawn. |
Parameters
| Parameter | Description | Type | Default Value | Configurable |
|---|---|---|---|---|
analysis_window | Time period over which transactions are analyzed (hours). | Integer | 24 | Yes |
structuring_alert_dollar_threshold | Minimum aggregate dollar value threshold for transactions to be flagged as structuring. | Float | 10000.0 | Yes |
minimum_single_transaction_dollar_threshold | Minimum dollar value for an individual transaction to be included in the analysis. | Float | 0.0 | Yes |
analysis_minimum_transaction_count | Minimum number of transactions required to flag an account. | Integer | 2 | Yes |
create_ticket | Flag to determine if tickets should be created for alerts. | Boolean | True | Yes |
Methodology
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Identify Threshold Transactions Focus on transactions within a specified range—below the
structuring_alert_dollar_thresholdbut above theminimum_single_transaction_dollar_thresholdto capture patterns indicative of structuring. -
Aggregate User Transactions Sum the total transaction value and count the number of transactions per user over the analysis period to evaluate their activity against predefined thresholds.
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Flag Suspicious Behavior Identify users whose total transaction value exceeds the alert threshold and whose transaction count meets or surpasses the minimum required, indicating potential structuring attempts.