STRUCTURING TRANSACTIONS
TO EVADE REPORTING REQUIREMENT

31 U.S.C. § 5324

Mr. Feldman has experience in matters involving individuals charged with or under investigation for structuring offenses.

There are many cash businesses in the United States and there is nothing inherently improper or illegal about possessing large amounts of cash. But, depositing specific amounts of cash to structure transactions and to avoid certain reporting requirements is a serious violation of the law.

One way a person may “structure” a transaction is by depositing, withdrawing, or otherwise participating in transferring a total of more than $10,000.00 in cash or currency using a financial institution or bank by intentionally setting up or arranging a series of separate transactions, each one involving less than $10,000, in order to evade the currency-reporting requirement that would have applied if fewer transactions had been made.

Domestic financial institutions and banks (with specific exceptions) are required to file currency-transaction reports (IRS Form 4789) with the government listing all deposits, withdrawals, transfers, or payments involving more than $10,000.00 in cash or currency. If a person knowingly avoids this requirement by “structuring” a transaction, he or she may be found guilty of a federal crime.

Significantly, the proceeds of transactions which are structured to further other federal criminal activity, e.g. federal criminal tax offenses, may also be forfeited by the U.S. government through either the criminal or civil forfeiture statutes.