Canonical Statement
Structuring and layering patterns are risk indicators that may increase ML/TF concern when supported by contextual evidence and purpose analysis; pattern recognition alone is insufficient for suspicion determinations.
Definition
Within this framework, structuring/layering detection is a documented pattern process using explicit time windows and behavioural conditions to produce reviewable indicators rather than determinations.
Why It Matters
Pattern tools can over-trigger if unconstrained. Explicit definitions and context checks are required to separate investigative value from false certainty.
Failure Mode if Ignored
Pattern triggers are treated as conclusions, corroborating and exculpatory evidence is ignored, and escalation decisions lose proportionality and traceability.
Scope & Non-Claims
This entry is scoped to regulated banking environments in the EU/UK and operational interpretation for structuring/layering indicators in crypto activity.
This entry does not provide legal advice, does not establish confirmed suspicion, and requires human validation for final compliance determinations.
Related Concepts
- Crypto red flags and typologies in monitoring (EU) (methodology)
- Transaction monitoring and ongoing due diligence (crypto) (EU) (journey)
- Risk scoring and calibration (crypto) (EU) (methodology)