What is "cuckoo smurfing"?

An Example of Cuckoo Smurfing

A common example of cuckoo Smurfing is when a criminal syndicate arranges for cash sums of under $10,000 to be transferred in or out of Australia using the bank account details of an unwitting third party.

Banks rarely are alerted as it falls below the threshold. As such, it does not get the attention of AUSTRAC. The identity of the money launderer is also hidden as the only details provided are that of the innocent third party.

From there, the money is transferred to numerous other bank accounts by making multiple complex transactions. This disguises the source of the money to be laundered and makes tracing it both difficult and expensive.

Ultimately the money is returned to the money launderer and will appear legitimate to only the most shrewd experts, such as money laundering lawyers.