9755f23d_Suspicious_Activity_Categories__ity__The_Reportable_Conditions
[Violation Category] a 31 U.S.C. Section 5311 and 31 C.F.R. Part 103 Bank Secrecy Act 31 U.S.C. Section 5324 - Structuring Transactions to Evade Reporting 18 U.S.C. Section 1956 - Laundering of Monetary Instruments 18 U.S.C. Section 1957 - Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity [Explanation/Description] The transaction involves funds derived from illegal activities or is intended or conducted in order to hide or disguise funds or assets derived from illegal activities (including, without limitation, the ownership, nature, source, location or control of such funds or assets) as part of a plan to violate or evade any law or regulation or to avoid any transaction recordkeeping and reporting requirement under federal law The transaction is designed to evade any regulations promulgated under the Bank Secrecy Act; or The transaction has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage, and the financial institution knows of no reasonable explanation for the transaction after examining the available facts including the background and possible purpose of the transaction.There are four types of structuring activities that are reportable: To avoid generating any Currency Transaction Report, Form 8300 and supporting records, and to avoid any recordkeeping connected to monetary instruments. To avoid the identification requirements, e.g. connected with non-bank money transmissions and purchase of monetary instruments. To avoid suspicious detection and conventional monitoring thresholds and filters. To avoid enhanced scrutiny or additional review frequently triggered by higher transaction amounts and thresholds.Note: 18 USC 1956 creates 3 basic categories of Money Laundering: Conducting/attempting to conduct one or more financial transactions with proceeds from specified unlawful activity; Transporting/transmitting/transferring one or more monetary instruments or funds into or out of the United States with intent to promote carrying out of unlawful activity, to conceal or disguise the proceeds of specified unlawful activity, or to avoid a state or federal transaction reporting requirement; Where property has been represented to be from specified unlawful activity (to cover law enforcement-related sting operations where the property is really clean.) See an expanded explanation of money laundering in Section 6 of this Issue.
Bank Secrecy Act/Structuring/Money Laundering
Understanding the Suspicious Activity Categories
Characterization of Suspicious Activity: The Reportable Conditions