Federal law requires that all banks file reports with the IRS any time a custome
ID: 1188112 • Letter: F
Question
Federal law requires that all banks file reports with the IRS any time a customerengages in a cash transaction in an amount over $10,000. It is a crime for a bank to
“structure†a cash transaction, that is, to break up a single transaction of more than
$10,000 into two or more smaller transactions (and thus avoid the filing requirement).
In Ratzlaf v. United States, 510 U.S. 135, 114 S.Ct. 655, 1994 U.S. LEXIS 936 (1994),
the Supreme Court held that in order to find a defendant guilty of structuring, the
government must prove that he specifically intended to break the law, that is, that he
knew what he was doing was a crime and meant to commit it. Congress promptly
passed a law “undoing†Ratzlaf. A bank official can now be convicted on evidence that
he structured a payment, even with no evidence that he knew it was a crime. The
penalties are harsh. (1) Why is structuring so serious? (2) Why did Congress change the
law about the defendant’s intent?
Explanation / Answer
1)Structuring a cash transaction is frequently used to launder money. Drug dealers need to get large sums of cash into the banking system and do not want the money reported to the government because that will lead to IRS and FBI investigations.
2) The intent issue is critical because it is very dif ficult for a prosecutor to prove that a defendant knew that structuring was prohibited. It is much eas ier simply to show that he did it. so the congress changed the law about the defendant intent.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.