Structuring – How Moving Funds from China to Vancouver Often Mirrors How Columbian Drug Lords Move their Money

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Chinese Structuring Scheme

Under this “Chinese Structuring Scheme”, a Chinese foreign national (who I’ll call the “Evader”) pays multiple smurfs (third parties) to use their bank accounts in China temporarily and file false bank remittance application forms.

The Evader transfers $50,000 into each smurf’s bank account in China. The smurf in China then completes a bank remittance application form to wire the $50,000 from China to Vancouver ostensibly for themselves as the declared “remitter” and “owner” of the funds, when it fact the funds are being remitted secretly for the Evader who is deliberately structuring multiple financial transactions using the global financial system to avoid detection and not only evade, but violate, Chinese banking laws.

The Evader locates and pays as many smurfs as are needed to each falsely act as the remitter of $50,000 to equal the amount she or he wants to export from China. Often at least 100 smurfs must be located with bank accounts in China for each Evader, who is willing to participate in the Chinese Structuring Scheme. The Evader has to pay each smurf a hefty fee for agreeing to participate in the scheme.