Structuring violations on the financial institution are cited on the Letter The presence or indication of structuring that is undetected by the financial institution, despite the presence of an AML program with all of the required elements, may indicate a weakness in the program.
Causing or attempting to cause a domestic financial institution to fail to file a report required under section a, or or any regulation prescribed under any such section, to fail to file a report or to maintain a record required under sectionor to fail to maintain a record required pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section of Public Law Is the fluctuation of currency on hand realistic for the pattern of business?
The reporting requirements of Section Currency Transaction Reports.
These special projects must be approved by management. And at all times, show consideration for the audience. Structuring can take place simultaneously with the research, or before investigation has commenced, or after the investigation is over.
When did you acquire this knowledge? If not, how do they compare the activity of one financial service e.
Check cashers are not generally subject to the suspicious transaction reporting requirements of the BSA but may voluntarily file a SAR. Is it possible to profile legitimate activity and exclude it from the examination?
Instead, further review and research may be necessary to determine the nature of the transactions, prior account history, and other relevant customer information to assess whether the activity is suspicious.
The following is an example of the difference: What are the potential violation s? It may even be distributed via email. Who has knowledge of the transactions?
The examiner is not to conduct a criminal investigation, conduct the examination at the direction of CI, or use the examination simply for the purpose of gathering data for CI. Obtain the cooperation of the owners of the financial institution.
The various statutes under Titles 12, 18, and 31 are meant to work together as part of an overall effort by the government to combat money laundering. The Limitation of a Report All kinds of a report must have a limitation or exception.
Criminal enterprises may employ several agents "smurfs" to make the transaction. Determine if the financial institution has a monitoring system in place to identify any unusually complex transactions using multiple financial services. How will those records be obtained? Conduct transactions at a lower dollar amount to avoid any identification requirements.
Asking about knowledge of the BSA initially may make the person defensive and less willing to provide a complete explanation of the activity.
How often were these types of transactions conducted? Additional interviewing may be required in order to determine the overall understanding of the BSA requirements and knowledge of the background of the transactions.
In addition, structuring may occur before a customer brings the funds to a bank. The title of the report should be introduced as a subject line. Causing or attempting to cause a trade or business to file a return that contains a material omission or misstatement of fact.
It can also take place during all the three stages mentioned above, constantly being fine-tuned as new information is unearthed. Check with the person who has asked for the report if a summary or abstract is required.Structuring the Report: After the investigation is over, or while it is underway, you have to start structuring your report.
Since reports can be structured in a number of different ways, you should identify the most suitable structure on the basis of the “purpose” of your study. Structuring, also known as smurfing in banking jargon, is the practice of executing financial transactions such as making bank deposits in a specific pattern, calculated to avoid triggering financial institutions to file reports required by law, such as the United States' Bank Secrecy Act (BSA) and Internal Revenue Code section I (relating to the requirement to file Form ).
In a report on the case, the Baltimore City Paper found a significant jump in the number of structuring cases, with many of them originating from the U.S.
attorney’s office in Maryland. Causing or attempting to cause a nonfinancial trade or business to file a report that contains a material omission or misstatement of fact.
If the structuring interview is to determine whether the business was involved in structuring, the interview should be held at the place of business.
2 Structuring your business report A business report may contain: a covering letter or memorandum a title page an executive summary a table of contents an introduction conclusions recommendations findings and discussion a list of references.
Structuring transactions to evade BSA reporting and certain recordkeeping requirements can result in civil and criminal penalties under the BSA. Under the BSA (31 USC ), no person shall, for the purpose of evading the CTR or a geographic targeting order reporting requirement, or .Download