Structuring: Stupidest Law Ever?

[Big Al's Texas BBQ]

If you don't know what structuring is, it's when you repeatedly deposit a little less than $10,000 into your bank account. I guess due to fear of the money being potentially obtained through illegal activities, if you deposit more than $10,000, the bank has to notify the federal government. I wasn't aware of this until not too long ago. So basically, if I try to deposit $10,000, I can be charged with a felony? How is this fair to small businesses? Should these laws even exist? This baker apparently had over $68,000 seized from his account by the IRS. Crazy shit:

 

[Gandzooka]

isn't that done to prevent money laundering?

 

[Big Al's Texas BBQ]

isn't that done to prevent money laundering?

I suppose, but if you're just some Joe Schmoe who wants to deposit more than $10,000, you have to explain yourself to the IRS. So what do you have to do then? Make several smaller deposits over time? That sounds incredibly inconvenient and illogical.

 

[luv24nic8]

As an entrepreneur and sole proprietor of a lemonade stand in front of my moms house, I call b.s.
Im keeping my cash under my matress, fool!

 

[Reyesnuthugr]

10K used to be a lot of cash.

Nowadays, it's a common amount for daily small transactions (used car, downpayment, small earnings, etc.).

There are no solid boundaries to this law, they can take any amount -- if it's 10k or higher it is automatically flagged/seized and if it's under that it's "suspicious" enough to have them charge you and seize whatever they want, and they don't have to provide any reason or give it back. There is no due process, either. Watch the video, they are naaasty

It's a law that may have been created with good intentions, but today is being used as a plain shakedown when the state wants to take large amounts of money from anyone without having to explain themselves

 

[Jesus X]

that is a stupid law even a person making 25 k a year can save over 10 grand in cash and deposit it repeatedly. sucks that this baker had to pay fines,lawyers and faced jail time.

 

[BisexualMMA]

 

[Jesus X]

this guy got screwed over for 107 grand

 

[Jesus X]

"At issue in the Vocaturas’ case are hundreds of deposits between March 2007 and April 2013 that ranged from $7,000 to $9,900 — a total of around $2.8 million."


seems like this law wouldn't affect normal folk who don't make that many deposits.

 

[HIMBOB]

It's only illegal to try to circumvent the mandatory reporting of transactions over $10,000.

This is not something to get upset about, at all.

If you aren't doing anything dodgy the reporting requirements are not an issue, non are they onerous.


I worked in a bank now in investment management, only people to get upset about the reporting are dodging tax or worse.


Edit. My experience is in Australia and being a proper country this is a complete non issue.

 

[bushman505]

I’ve made deposits of over 10k several times, never been flagged, had a hold or any issue at all.

The only issue is it’s awkward when the peasants working the bank counter making 9 bucks an hour get all jealous and start asking you questions. “Did you sell something”??? “What do you do for a living”??? Etc etc.....

 

[MMA since 1993]

I’ve made deposits of over 10k several times, ever been flagged, had a hold or any issue at all.

The only issue is it’s awkward when the peasants working the bank counter making 9 bucks an hour get all jealous and start asking you questions. “Did you sell something”??? “What do you do for a living”??? Etc etc.....

That's bs, they shouldn't be allowed to ask you that. It's none of their business.

 

[bushman505]

That's bs, they shouldn't be allowed to ask you that. It's none of their business.

I don’t think it’s any sort of legal shit just people being curious. Fact is most people haven’t really ever just gotten 15-20k at one time so it seems like anshit load of money to the majority of people.

I agree though it’s awkward and there should be if there aren’t rules against that.

 

[HIMBOB]

That's bs, they shouldn't be allowed to ask you that. It's none of their business.

It's part of their job.

It's a legal requirement. As a person who has asked such questions I can assure you I don't give a fuck and that $10,000 is fuck all to a bank teller that probably counts over 100k in cash each and every work day.


For example Australias largest bank was recently fined 700 million for not doing it properly.


I can see why it upsets people but personally I'd prefer a few upset people but less tax evasion, welfare fraud and terrorism funding.

 

[cartizel]

Can someone explain whether the rule applies to people making deposit into their personal account or business account?

 

[osudude]

I work in AML and specifically with CTR reporting. There's a lot of missing details in the video, probably to make this look like a sob story. Simply depositing cash amounts under the reportable limit isn't going to tip off the feds, there's a few other things that have to happen in order for it to be suspicious and cause an investigation. These guys must've been doing something else. People deposit cash every day, the feds don't come knocking just because you did.

Can someone explain whether the rule applies to people making deposit into their personal account or business account?

In the US at least, it's any cash transactions. Deposit, withdrawal, or currency exchange. Business or personal doesn't matter.

 

[Cheese]

I suppose, but if you're just some Joe Schmoe who wants to deposit more than $10,000, you have to explain yourself to the IRS. So what do you have to do then? Make several smaller deposits over time? That sounds incredibly inconvenient and illogical.

Just explain yourself to the IRS. Not sure why its a problem.

 

[osudude]

That's bs, they shouldn't be allowed to ask you that. It's none of their business.

It's a requirement of the regulation, banks don't have a choice but to ask for that information.

 

[RagingBeringola]

If we're talking about stupid laws, I remember reading something about some american state where it's forbidden to stick an icecream cone into your back Pocket.

I should probably try to find out that backstory

 

[ToxicShocker]

I suppose, but if you're just some Joe Schmoe who wants to deposit more than $10,000, you have to explain yourself to the IRS. So what do you have to do then? Make several smaller deposits over time? That sounds incredibly inconvenient and illogical.

You already have to explain yourself to the IRS via filing taxes.

Don't deposit 25 x $9,950 and you won't have a problem. That's what they consider structuring.

And if your contracts or particular business require deposits in that suspicious range, you just have to explain it, above board.

I did a series of jobs for a contractor who would pay me in bundles of hundreds over 10k.

The bank was required to ask where the money came from and I said "work", and that's where the conversation ended. But if the government had been interested in looking I could have shown them 60k in receipts for material purchases that I was incurring while receiving all that cash.