The Bank Secrecy Act of 1970

[ScreamingMeemie]

http://www.irs.gov/businesses/small/article/0,,id=152532,00.html

Congress passed the Bank Secrecy Act in 1970 as the first laws to fight money laundering in the United States. The BSA requires businesses to keep records and file reports that are determined to have a high degree of usefulness in criminal, tax, and regulatory matters. The documents filed by businesses under the BSA requirements are heavily used by law enforcement agencies, both domestic and international to identify, detect and deter money laundering whether it is in furtherance of a criminal enterprise, terrorism, tax evasion or other unlawful activity.

The Internal Revenue Service is a partner in the U.S. National Money Laundering Strategy. The IRS seeks to achieve a balance between enforcement of the money laundering laws and education. This page provides links to information about specific BSA requirements to assist with education and compliance with the law.


Suspicious Activity Reports-

http://www.irs.gov/businesses/small/article/0,,id=154555,00.html

When to File a SAR

An MSB must file a SAR when it knows or suspects that:

The funds come from illegal activity or disguise funds from illegal activity;
The transaction is structured to evade BSA requirements or appears to serve no known business or apparent lawful purpose; or,
The MSB is being used to facilitate criminal activity.


***An SAR is different from a CTR (the $10,000 one) in that it doesn't have to be $10,000, it is reported after the bank becomes suspicious due to odd transactions, usually noted over a period of time.

This was in force before the Patriot Act.

Banks are forced to comply or face Federal Charges.


Failure to file a suspicious activity report may lead to civil and criminal penalties. A civil penalty may apply for each willful violation of the reporting requirements. The amount of the penalty is not to exceed the greater of the amount involved in the transaction (not to exceed $100,000), or $25,000. Any person who willfully violates the reporting requirements may be subject to criminal penalties, including a fine as great as $250,000 or five years imprisonment.

MSBs and their employees are prohibited from disclosing to a person involved in the transaction that a suspicious activity report has been filed. Further, each MSB or MSB employee is protected from civil liability for any SAR that they filed.


In other words, a bank cannot ask about the oddness of the transaction and/or tell the person that they are filing a report. This is a major difference between the SAR and the CTR. The other difference being the $10,000 stip on the CTR...which, funnily enough, created a need to use the SAR.

[theboss]

1. This was one of the big mistakes the Sopranos ever made

There was an episode where Carmela stole $50,000 from Tony and opened up a bunch of accounts worth $9500 each. The back told her, "You know if it was $10,000, we'd have to report this." Of course, they would have had to report it anyway.

[rpannier]

2. That's very interesting

Thanks for sharing

[Junkdrawer]

3. Again: The question is NOT "Could this have been a legitimate SAR?"

The question is "How many like transactions are reported for other people in Spitzer's income group?"

[ScreamingMeemie]

4. They are reported all the time if they are 1. over $10,000 or 2. highly

suspicious as it appears to be when one transfers money frequently to an unknown (known being a brokerage firm, bank etc) source. It always raises a red flag and always has to be reported or the bank and it's employees face really stiff penalties. That has happened here in Detroit. The Feds mean business on this. They have for a long time. I posted this because there seems to be a lot of belief that only a CTR is filed and only on amounts over $10,000.

[Junkdrawer]

5. This case involves $4,300. And last I heard, he mailed cash...

and since he's being charged with "structuring", that means he withdrew the money a few grand at a time.

I'm guessing a lot of wealthy people do that without being reported.

[ScreamingMeemie]

6. I cannot speak for other banks but the bank I worked for reported it

often. Very often. In fact not reporting structuring was what got a few banks in Dearborn nailed in the early 2000's. It happens on a daily basis. And we are not sure of the exact amounts of each of those transactions and usually $2000 is the threshhold.

[AlCzervik]

7. all true and when my Dad made me the beneficiary on his cd's i had to give him info

for the bank because of the amount and that was due to the patriot act, Spitzer knows all this shit so he was hoisted by his own hand.

[ScreamingMeemie]

8. It bothers me that so many want to play the same spin game as the

Republicans. That so many want to throw Pelosi's softness at going after the criminals in Congress and Higher...those with an R after their name, as some sort of reason to turn a blind eye to Spitzer's crimes.