Compliance
What is structuring?
Structuring, in general terms, is the breaking down of transactions of more
than $10,000 into smaller amounts to evade record-keeping and reporting
requirements. For transactions over $10,000 (sent or received), Su Casa de Cambio
is required to obtain the consumer's name, address,
current government-issued photo ID, Social Security Number, birth date and
occupation. In addition, the Bank Secrecy Act (BSA/AML) requires that money
services businesses (MSB's), such as Digital Currency Services, Inc., fill out a
Currency Transaction Report (CTR) IRS Form 104 for all single or multiple
transactions, conducted by or on behalf of one person, totaling over $10,000 in
one day. Consumers who structure transactions attempt to evade these
requirements.
Example:
A consumer wishes to conduct a $10,500 transaction in one day. However,
knowing that a CTR needs to be filed on a transaction that exceeds $10,000,
the consumer conducts two $5,250 transactions, thereby attempting to evade
the filing of a CTR. Because the consumer is trying to evade the over $10,000
reporting requirement, the consumer is structuring.
What should I do if I suspect someone is structuring?
Attempting to evade the record-keeping and reporting requirements is
considered structuring and is illegal. Therefore, if you suspect someone is trying
to evade the requirements for transactions over $10,000, file a Suspicious
Activity Report (SAR-MSB) with as much information as possible.
Example:
On Monday a consumer transfers $5,000 to a friend and returns on Tuesday to
transfer $5,100 to the same friend. You do not know the consumer or the
purpose of the transfers. Though the consumer transferred the money on
two separate days, you may suspect that she is trying to evade BSA reporting
requirements for transactions over $10,000. If you feel that these transactions
are suspicious, complete a SAR-MSB form with the information you collected from
the consumer.
Do I have to file a SAR-MSB if consumers try to evade record-keeping
and reporting requirements under $10,000?
In addition to rules governing structuring, the BSA requires money services
businesses to file SAR-MSB forms related to transactions designed to evade
any record-keeping or reporting requirements mandated under the BSA. Thus,
if a consumer is trying to evade providing a Social Security Number by splitting
a $3,000 transaction into two $1,500 transactions, a SAR-MSB may be necessary
if you feel the circumstances surrounding the transaction are suspicious.
Example:
The Bank Secrecy Act requires MSBs that provide money transfer services
to obtain and record the consumer's identification number for each money
transfer of $3,000 or more. A consumer wishes to send $10,000 to a friend in
London. The consumer and three others each send a $2,500 money transfer
to London, thereby evading the record-keeping requirement of $3,000. You
notice that all four consumers are together and that they are sending to the
same person. If you suspect that the consumers are trying to evade the $3,000
reporting requirement, you may file a SAR-MSB if you believe that the
circumstances surrounding the transactions are suspicious.
Reminder!
FinCEN website:
http://www.fincen.gov/reg_bsaforms.html
FinCEN's money services businesses website:
http://www.msb.gov/forms/forms.html
For CTR questions, call the General Manager, Store Supervisor and/or
Compliance Officer.