Will the irs keep its latest promise_ _ the nestmann group

Indulge yourself for a moment and imagine you’re back in 1986. Importance of anti money laundering You’re listening to “Addicted to Love” by Robert Palmer on the radio and on your way to the movie theater to watch Aliens, starring Sigourney Weaver. Money laundering news In Washington, DC, the “War on Drugs” is alive and well, and President Ronald Reagan is championing a new anti-money laundering bill he says will help win it.

A small piece of this 1986 law contains a little-known section reminiscent of another 1980s-era icon, the Smurf. What do you mean by money laundering These blue, elf-like creatures, only a few inches tall, starred in their own Saturday morning cartoon show.


Federal money laundering statute The tiny Smurfs were helpless individually, but if they banded together, they could defeat the evil wizard Gargamel, who regularly threatened their village in the forest.

At the same time, drug dealers (and anyone else dealing in large quantities of cash) were using a rather obvious method to avoid government surveillance. Difference between fraud and money laundering Since 1970, federal law had required that cash transactions over $5,000 (later increased to $10,000) be reported to the IRS. Preventing money laundering Those dealing in cash quickly realized that if they kept the deposits below $10,000, banks didn’t need to file the form. Money laundering activities But if you have millions of dollars in cash that you need to recycle through the banking system, you need a lot of people, each making transactions under $10,000.

All these cash couriers fanning out to make their $9,500 deposits reminded Gregory Baldwin, a federal prosecutor in Miami, of the Smurfs’ collective efforts to defeat Gargamel. What is money laundering mean And the 1986 statute that criminalized this activity became informally memorialized as the “anti-smurfing” statute.

The real term for the crime the anti-smurfing statute criminalized is “structuring.” Structuring is the act of making an effort to avoid the $10,000 cash-reporting rule by breaking up a cash transaction into a series of smaller amounts.

If prosecutors indict you for structuring, you could face a five-year prison sentence and a $250,000 fine. Money laundering in hindi But the law also lets prosecutors seize every dime in your bank account, even if they never bother to indict you. Money laundering services There’s no need that you deposit “dirty money” – indeed, the government can confiscate legally earned, after-tax earnings from your business or any other source.

On March 11, 1988, a notice appeared in the Federal Register that proposed posting a prominent announcement in every US bank announcing the fact that “smurfing” was now illegal. Money laundering is After all, given the choice of filing a form with the government that could lead to an investigation or not, which would you choose?

But very quietly, the proposed regulation was withdrawn. Uk money laundering The results were entirely predictable: The vast majority of smurfing investigations involved cases of innocent non-criminal activity. Money laundering sentence uk Smurfing is smurfing, and if you do it, the government can confiscate every dollar in your bank account and put you in jail to boot. Why money laundering is done A Treasury Department analysis in 1991 concluded that over 75% of the money seized under the structur­ing law belonged to people not involved in any illegal activity.

This racket has now been going for 28 years, with thousands of law-abiding Americans stripped of their savings and, in many cases, imprisoned as well.

A textbook case is that of Daniel Aversa, who in 1993 was sentenced to a mandatory prison term for conspiring with a friend to hide income from his wife. Definition of anti money laundering The scheme, which involved smurfing, triggered reports of suspicious transactions in Aversa’s and his friend’s bank accounts. Smurf money laundering After sentencing Aversa and his “co-conspirator” to a mandatory prison term, Judge Martin Loughlin wrote:

Defendants should never have been prosecuted for structuring currency transactions… where evidence showed that defendants were not attempting to avoid paying tax on money or disguise where it came from… The evidence shows that [Aversa] did not believe that [he] was breaking any law… There is only one explanation for the bringing of these charges – it was easy.

In 1994, the Supreme Court overturned the conviction of another defendant convicted of structuring, because prosecutors couldn’t prove the defendant knew it was illegal. Money laundering cases Congress responded in 2000 with a law that makes structuring punishable even “without the need to prove specific knowledge that such evasion is unlawful.”

And today, nearly three decades after the enactment of the original law, the vast majority of structuring investigations still involve legally earned, after-tax funds. Different types of money laundering Prosecutors love the law because winning is a slam-dunk. Money laundering fines penalties And it’s getting used more and more, because seizing agencies keep a cut of what they confiscate – sometimes as much as 80%. Money laundering online More than 100 multiagency task forces are now combing through the 700,000 Suspicious Activity Reports that banks file every year, looking for accounts to seize. Money laundering in india examples And it’s working.

According to a report from the Institute for Justice, in 2005, the IRS initiated only 114 smurfing seizures. Suspected money laundering By 2012, that number had grown to 639. What is money laundering in india But just like two decades ago, in modern structuring cases, criminal charges are brought about only 20% of the time.

• A woman who owned a Mexican restaurant followed her mother’s advice to keep deposits under $10,000 to “avoid paperwork.” She lost $33,000 to the IRS.

• The owner of a grocery store in Michigan had an insurance policy that only covered losses of cash of an amount smaller than $10,000. What is money laundering in simple terms He would wait until he had close to $10,000 in the till, and then take the cash to a local bank. Origin of money laundering The IRS seized the entire account, more than $35,000.

• An army sergeant asked a bank teller how to avoid paying a second round of tax on cash he was about to deposit in his bank account. How money laundering is done The teller suggested keeping the deposits below $10,000. Meaning money laundering After complying with the teller’s suggestion, the sergeant lost $66,000 to confiscation.

When someone fights back against the seizure, prosecutors usually offer them a plea deal. Definition of money laundering uk If they don’t contest the confiscation of their money, they won’t go to jail. Anti money laundering articles It almost always works. Free anti money laundering certification And those who do fight rack up huge legal bills. Laundering money examples A typical retainer for one of the few attorneys who actually handle structuring cases starts around $20,000. 4th money laundering directive Sometimes the IRS offers a partial settlement. How does laundering money work The agency seizes your lawfully earned cash and, like a kidnapper, asks for a ransom to get it back.

For decades, I’ve criticized the monstrous way the IRS has enforced the anti-smurfing laws. Money laundering legislation But finally, the agency has decided to back down – a little.

Last month, The New York Times published an exposé on the anti-smurfing laws, which included some of the more recent examples I’ve highlighted in this essay. Anti money laundering training free Suddenly, for the first time since 1986, the anti-smurfing statute was in the spotlight.

You might have expected the IRS to trot out a spokesperson to defend the practice of confiscating legitimately earned money from cash-based businesses. Legal money laundering It’s done that before, most notably in defending the notorious “Foreign Account Tax Compliance Act” (FATCA).

But it didn’t. Eu directives on money laundering Instead, Richard Weber, the chief of the IRS Criminal Investigation Division, without any apology or explanation, announced that for the first time since the anti-smurfing statute was enacted in 1986, it would no longer confiscate funds associated solely with “legal source” structuring. What is money laundering act Of course, there are exceptions; Confiscation of your legally earned cash is OK if “exceptional circumstances” justify the seizure.

Oh, and the new policy won’t apply to past seizures. Offshore money laundering People like the Mexican restaurant owner, the grocer, and the army sergeant won’t get their money back without a fight.

Not coincidentally, the anti-smurfing statute is unique to the US. How many years for money laundering There’s nothing like it internationally, although most countries today require the reporting of “large” cash transactions with banks to a national anti-money-laundering authority. Money laundering high risk geographies are A handful of countries, including Australia and Canada, also ban “parceling” the transactions into smaller transactions below the applicable limits to avoid reporting. How to detect money laundering But in all cases, the relevant legislation targets only illicit funds, not legally earned cash. Money laundering compliance The US is the only country with anti-smurfing that explicitly targets lawful funds.

There are, of course, solutions available. Who do you report money laundering to The most important strategy is to avoid structuring currency transactions in the US. Money laundering registration Despite the new policy that Mr. Types of anti money laundering Weber announced, there’s nothing to stop the IRS from going back to the old policy once the media shifts its attention back to the likes of Kim Kardashian, Justin Bieber, and Miley Cyrus. Money laundering officer And since seizing agencies get to keep most of the cash they grab, there are plenty of financial incentives to do so.

The second strategy, of course, is to get your money out of the US into a financial system in which the government doesn’t look at your legitimate assets as a piggy bank it can tap whenever convenient. Laundering money meaning There couldn’t be a better time to start than now.

Protecting your assets (and yourself) against any threat – from the government, the IRS or a frivolous lawsuit – is something The Nestmann Group has helped more than 15,000 Americans do over the last 30 years.

Why not get instant access to my very popular e-course – Inside the World of Big Money Asset Protection. Sars money laundering It tells the story of John and Kathy, two clients we helped from the heartland of America.