AFC CHALLENGES
Structuring is regularly found in the evidence mix of nearly every major money laundering investigation
Structuring and the facsimiles of it are part of the core components within AML and BSA compliance efforts . Cash has always been king in the criminal world , and efforts to monitor the bulk flow of it are all but mandatory in any serious AML abatement efforts . Structuring is regularly found in the evidence mix of nearly every major money laundering investigation . It is quite often the go-to crime for plea agreement negotiations in those investigations . This is especially so when the subject is a wayward politician . Even in many current headline-grabbing crypto cases , you will likely find one or more subjects in those schemes structuring to “ cash out ” some of the fraudulent gains along the way . Crypto , precious metals and stocks may be attractive assets to hold , but scoundrels prefer holding the wheel of the flashy cars , designer clothes and other shiny objects they can buy . To do that and attempt to avoid the law enforcement ( LE ) radar , structuring around currency remains a common part of those schemes . So , why does LE now seem to ignore this most fundamental tool in their AML investigator toolkit ?
The stigma around structuring
Several years back , structuring took on a negative public persona when it became too closely associated with the debate on asset forfeiture reforms . The perceptions , or the optics , which seemed to prevail were that “ innocent ” monies were also being scooped up during enforcement efforts . Although the role of structuring in that debate is questionable , it did expose some potential problems with criminal structuring investigations . Within the perceived simplicity of what constitutes structuring , there are often many overlooked nuances and complexities . This problem is often brought on by the many different ways financial institutions ( FIs ) keep and maintain their records . These varied and highly automated accounting systems throughout the FIs ’ world can easily lead to many misperceptions , misunderstandings and erroneous interpretations of those records and data .
For LE , what “ on or about ” means is often quite different from the accounting purposes for how FIs tend to maintain their records . This is especially true for late afternoons , weekends and holidays . In criminal investigations , alibis are not subject to a float . Actual transaction dates and times versus posted dates can result in “ mistaken structuring ,” and just like mistaken identities , it becomes a sloppy investigation optic that LE needs to avoid . In that effort , the U . S . Department of Justice started requiring additional scrutiny for structuring investigations through what is commonly known in LE circles as the “ Holder Memo ,” 1 named for the attorney general at the time . For all practical purposes , this caused too many in LE to become reluctant to initiate any structuring investigations . This belies the fact that the actions and activities involved in true structuring cases are clearly “ suspicious activity ” and , quite often , outright felonious activity .
22 acamstoday . org