Australia’s Commonwealth Bank was fined millions by regulators after their automated cash deposit machines were used for cuckoo smurfing
In fairness, it wasn’t so much the exploit in the system (although that was gaping… However very convenient), but the fact the bank didn’t flag transactions above a certain amount as they were mandated to.
I was suprised by three things
- the high c10K limit for cash deposits
- you could make multiple deposits at that max amount
- it not neccessary to hold an account there
Just having tackled one of the three would have had an impact on AML risks
It’s 20k! Above 10k it gets flagged (or not…).
I think there should be better limits but it is nice being able to deposit in an ATMesq machine, without worrying about the sticker on it!
yep, 20K AUD … I was thinking of pounds which works out around £11,976
What’s cuckoo smurfing?
Thanks for posting that Don. I didn’t get home till gone 4am so just got up otherwise I would have answered Manda’s question earlier.
PS The video link at the bottom of the page that Don suggests actually explains it better than the page does https://moneycompliance.com/2016/02/17/video-cuckoo-smurfing/