During the initial interview, the examiner should determine what transactions could be eliminated from the scope of the examination. Many financial institutions have established lower thresholds in order to mitigate their risk by securing the identification of customers conducting smaller, more frequent transactions which may indicate structuring.
The person s involved had knowledge of the BSA. The report must have the 3 main parts: These lower limits may require added due diligence by the financial institution when identifying suspicious activity.
The reporting requirements of section Reports relating to coins and currency structuring a report for business by a nonfinancial trade or business — Form The table of contents must always be present in a longer report. Is there any pattern to the transactions? The definition of structuring is not the same as, and is separate from, any requirement to report suspicious transactions.
Section further provides that a violation of this provision may be punished by a fine or up to five years in prison, or both.
A person acting alone, in conjunction with others, or on behalf of others Conducts or attempts to conduct One or more transactions in currency In any amount At one or more financial institutions On one or more days In any manner For the purpose of evading the reporting requirements of 31 CFR Consider legitimate transactions either by amount, characteristics, range of transaction values, and the frequency of customer activity within a day as well as over time.
Thus, no financial institution had a duty to file a CTR. These include but are not limited to: Introduction and terms of reference Describe the details of the brief you were given or any other reason for writing the report.
The prohibition against structuring found in 26 USC I f applies to any person s involved in a transaction. Conduct transactions at a lower dollar amount to avoid any identification requirements.
Customers of financial institutions Employees of financial institutions Any other individual who is not defined as a financial institution An examiner can interview customers for potential structuring but only to the extent to determine whether or not the financial institution had knowledge or assisted with the structuring.
Even if structuring has not occurred, the bank should review the transactions for suspicious activity. Select a random sample of transactions and trace them through the records. Does the monitoring system identify these transactions at the point of sale? Keep in mind who will be receiving your report and use vocabulary and tone appropriate for your audience.
The term "smurfing" is derived from the image of the comic book characters, the Smurfshaving a large group of many small entities. Definition[ edit ] Structuring is the act of parceling what would otherwise be a large financial transaction into a series of smaller transactions to avoid scrutiny by regulators and law enforcement.
Congress enacted section of Title 31 of the United States Code which provides in part: Bibliography The bibliography lists, in alphabetical order, all published resources used in the compilation of your report. Whatever conclusions you draw, they must be derived from the facts and information included in your report.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 Cash Transactions Under $10, is Criminal! May 29, Report of Cash Payments Over $10, Received in a Trade or Business, when they. In fact, the final structuring for the Business will likely be some derivative of the options presented in this report supplemented with information uncovered during the course of Business’s transaction.
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. 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 ).Download