Download Flash Player to view these books.

Drug sales in the United States produce billions and billions of dollars of illicit profit. Most, if not all of that money is cash. In order to make that cash useful, drug dealers must somehow move that cash into the country’s banking system in order to enable it to obtain some type of legitimate status or transfer it elsewhere. When the government is able to stop money laundering, a drug dealer’s ability to enjoy the use of the cash is significantly curtailed and, to that extent, the motive to break the law will dissipate.

As early as the 1970's, the United State’s government saw the need to create a paper trial to allow it to monitor large cash transactions that were in excess of $10,000. Resultingly, legislation was created that required three categories of cash handlers to file reports involving transactions over $10,000. The first category includeD banks, people involved in security transactions money exchanger, check cashers and people or entities that sell traveler’s checks, money orders or facilitated money transmissions. This group of cash handlers have to file what was known as a CTR. The second was casinos. Their form was called a CRTC. The third category were entities or people who while traveling in and out of the United States carried in excess of $10,000. In those situations, a CMIR form has to be filed. Later, in the mid 1980's, the government amended the statute to include any business that received more than $10,000 in cash to file a report referred to as an 8300.

The penalties for violating the so-called Money Laundering Statute can require a maximum term of five (5) years in jail and a $250,000 fine. Where, however, the offense is associated with a violation of another law of the United States or a pattern of illegal conduct where over $100,000 has been transacted in a 12 month period, the penalties are doubled. A person or entity can be convicted of the Money Laundering Statute if a report is not filed, if it is false, or if transactions are structured so as to escape the reporting requirement. Structuring can occur when cash transactions are made that are less than $10,000 on different days, in different locations or by the use of different people.
Since its inception, the Money Laundering Statute has been rather successful in preventing narco-traffickers from “washing their cash.” The struggle continues, however, because of the ingenuity of the drug dealer and the greed of third-parties prepared to assist in this nefarious scheme. In order to avoid the potential of a paper trail, drug dealers will use various methods. One of the areas where drug dealers will work with greedy businessmen is the check cashing industry. Other times, efforts will be made to use a business front to sanitize the cash, especially where there are high ticket transactions (i.e. jewelry stores, new car lots) are available.

In 2006, the federal government enacted another body of legislation that required a variety of businesses to file suspicious activity reports (SAR). Apart from the four categories of people and entities identified above who were required to file reports for transactions in excess of $10,000, this new statute encompassed future and commodity brokers, insurance companies and mutual funds. As a result of the SAR’s reporting responsibility, the government has been able to enlist a virtual army of businesses who are required to report suspicious behavior or suspicious transactions involving cash.

Loading

Name *

Phone *

Email *

Tell us more *

Frank T. Luciano, PC
147 Main Street, Suite 5
Lodi, NJ 07644
Phone: (973) 471-0004
Get Directions