The importance of proper structuring in LE
For a credible structuring investigation , the proper financial records must be obtained , translated and analyzed into real transactional dates , times and activities . That needs to be coupled with the other activities , leads and evidence , making it unmistakably clear that this was a deliberate and purposed scheme . One optic that should not be forgotten is that at the end of this process , a good deal of currency has been “ placed ” into the financial system . It is layered by a simple payment or transaction later . The question for the investigator to determine is the likelihood of the legitimacy of that currency entering the financial system . Regulatory avoidance and tax scofflaws might be a tolerated explanation or excuse at some levels , but there are levels and amounts of structuring that cry out for LE intervention .
In a real case , a jury quickly convicted a subject of structuring primarily based on the evidence of a nonsensical travel pattern that agents were able to establish . The agents had obtained precise records of actual dates and times of the deposits . Those were not always the same as what the bank statements reflected . The timing of those trips to , from and between various bank branches left no reasonable doubt about this subject ’ s activities or intent . With six figures of currency structured into multiple bank branches , an innocent or legitimate excuse or explanation of the currency was not something the defense could credibly present .
In that case , there were some levels these red flags could not have been any redder . At some levels and with some circumstances , LE should be intervening . Structuring is the too-often overlooked birthplace of “ third-party money laundering ” or its accumulation and transfers out of the country . This is especially true when there is no apparent connection to legitimate currency-centric businesses . Most of the common excuses or explanations at lower levels rarely hold up to scrutiny at these higher amounts . Financial , business and tax law ignorance excuses do not pair well with legitimately having the ability to accumulate six figures and above sums of currency in short periods of time . Investigators need to apply a “ never trust , always verify ” investigative approach , though , as these will be excuses and explanations commonly presented . The essential element of conducting competent , thorough and effective interviews in these investigations cannot be understated .
Articulating what bulk currency actually looks like and how it is handled in accomplishing criminal structuring is essential for the investigation . Televised poker tournaments do this well by stacking the cash on the final table for the audience to visualize million-dollar prize pools . Criminal structuring , especially the six figures and above kind , requires an investigator to have a similar visualization of this amount of bulk currency and the likelihood that the subjects involved are legitimately able to amass it . The legitimate currencycentric businesses that do regularly transact at these levels also normally qualify for the currency transaction report exemption list . You will also notice that these businesses , by their very nature , had to apply extra accounting and security measures to avoid the many inherent risks that come with it . Step into any bank , onto any casino floor or even into
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