What activity is classified as structuring?

Structuring refers to the practice of breaking up large transactions into smaller amounts to avoid triggering reporting requirements set by the Bank Secrecy Act (BSA). This is often done with the intention of evading the detection of suspicious or illicit activities, such as money laundering or tax evasion. By keeping individual transactions below the reporting threshold, individuals or entities can conceal the true nature of their activities from financial institutions and regulatory authorities.

In the context of the choices provided, breaking up transactions to evade reporting requirements is the embodiment of structuring. This tactic is illegal and is specifically targeted by financial institutions to ensure compliance with federal regulations aimed at preventing financial crimes. Understanding this concept is crucial for identifying and preventing potential money-laundering activities.