31 U.S.C. § 5324 – Structuring transactions to evade reporting requirements (financial structuring to avoid Currency Transaction Reports)
§ 5324 makes it a federal crime to break up cash transactions to avoid bank reporting requirements.
Section 5324 targets a practice commonly known as structuring. Structuring occurs when someone deliberately arranges cash transactions in a way designed to avoid triggering federal reporting rules, even if the money itself comes from a lawful source.
Federal law requires financial institutions to file reports for certain large cash transactions. This statute makes it illegal to try to dodge those reports by spreading transactions out or keeping them just under the reporting threshold.
What the law prohibits.
A person violates this statute if they knowingly:
- Structure or attempt to structure transactions to avoid a bank’s obligation to file required reports.
- Break up large cash deposits or withdrawals into smaller amounts for the purpose of evading reporting rules.
- Cause or attempt to cause a financial institution to fail to file a required report.
- Provide misleading information to a financial institution in connection with reportable transactions.
The government does not need to prove that the money involved came from illegal activity. The crime is the intent to evade reporting requirements themselves.
The law applies not only to banks, but also to certain non-financial businesses and to international movements of cash or monetary instruments when transactions are structured to evade federal reporting rules.
Penalties.
Violations of § 5324 are federal felonies and can result in:
- significant fines,
- up to several years in federal prison (with enhanced penalties in aggravated cases), and
- forfeiture of money or property involved in the structuring activity.
Penalties may increase if the structuring is connected to other criminal conduct, involves large sums of money, or occurs as part of an ongoing scheme.
If you are under investigation for structuring or financial reporting violations, call (314) 900-HELP or contact our criminal defense attorneys to discuss your situation.
