Understanding Currency Transaction Violations

There are many laws governing how currency can be deposited, withdrawn, and moved around. Most of these laws are put in place to attempt to stop money laundering, drug dealing, organized crime, and terrorism. For example, you are only allowed to make withdrawals or transfers from saving accounts a certain number of times per month. Violations of this regulation typically just require that the savings account be changed to a checking account to resolve the issue.

There are also laws in place that require banks or other financial institutions to report certain types of activity to the IRS or other government agency. If a deposit or withdrawal  is made in currency or other negotiable instrument in an amount of more than $10,000 , for example, the financial institution must report it to the Treasury department  using a currency transaction report “CTR”. The IRS can then investigate the source of the money, and share that information with other government agencies.

Structuring

One of the most common currency transaction violations is known as structuring. This occurs when someone makes multiple deposits or withdrawals  of amounts less than $10,000 with the intent to avoid having the deposits or withdrawals reported to the government. Even if the money was received and used on legal things, it is still illegal to deposit or withdraw money in a way that will keep the financial institution from filing the appropriate form.

Currency Transaction Violations are Serious

If you have been accused of any type of currency transaction violation, it is important to take the situation very seriously. Even if you did something you think is not a big deal, such as breaking up deposits into multiple transactions, it can result in huge financial fines—even prison time. There have been many cases where people have been sent to prison even though they were not accused of, or suspected of obtaining the money illegally, or spending it on illegal things. Their only crime was the way that they deposited or withdrew the money.

You Need an Attorney

If you have been notified by the IRS, another government agency, or even just your financial institution that you are suspected of any type of currency transaction violation, you need to speak with an attorney. An attorney experienced in these types of cases can help determine exactly what was done, and develop an effective defense. Contact Weisberg Kainen Mark, PL to talk about your options and see how we can help you throughout this potentially difficult case.

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Written by Weisberg Kainen Mark, PL

Weisberg Kainen Mark, PL

Weisberg Kainen Mark, PL is a Miami-based law firm focused on providing comprehensive legal support to individuals and corporate entities caught up in tax controversies or charged with a criminal act. As experienced trial lawyers with a passion for justice, our firm provides clients with compelling advocacy, attorney availability, and creative solutions to your tax or criminal law matters.