Does it have to be the employee’s account?
That the money was being deposited into the bank account belonging to the educational branch of the local symphony kind of negates the whole “laundering drug money” thing, IMHO.
There’s no 'explaining the situation". If she deposited over $10K a CTR would be filed- no need for an explanation, If anyone structured her deposits, the Bank can NOT ask anyone to 'explain", they either file a SAR or dont.
No, you are not. If you structure, the bank does not and can not ask for an explanation. They either file a SAR or they dont. If they dont. the Regulators will ask them why. But they cant say- “well we talked to her about the structuring and thus decided it was okay”. They can say “she is a good regular client, and this was a one time thing”, and that will likely work. But banks dont like explaining things to regulators. They would most likely file the SAR.
Now, true, if some Federal agent investigated her due to the SAR, and she came up with that explanation- she would likely be okay, if that was a one time thing. But the SAR was filed.
Naw- maybe an investigation, but I doubt it. Too many SARs are filed for everyone to be fully investigated- some dude at the FBI and the Treasury looks at each SAR, calls up tax returns, criminal records and any current investigations. If that comes out clean, no further action is taken in most cases.
Yeah, we didnt like to charge ordinary honest citizens with Money Laundering. It was really a tool to use vs the bad guys.
Yeah, but the Feds do like to charge the rich with Money laundering.
This is one crime where being rich is a disadvantage.
(PS, it appears Johnson does have a bank account but the amounts are too low too report)
Even if Johnson didn’t have to report a bank account because the amounts were too low, by not reporting it he attracted a lot more attention than if he had done so.
How can that be if the threshold amount to report is $5,000 and he gets paid $8,000 every two weeks? Did I get something wrong?
On the other hand, that seems to be a minor sin. If George Santos can pile up 23 federal charges and not get expelled from Congress then Mr. Johnson can misreport his assets and nothing will happen to him.
PS: Should look for the Santos thread, he is much more entertaining than Mr. Johnson. At least to a non US-American who is not directly affected by his mere existence.
He could have several accounts and split his direct deposit over enough accounts to stay under the limit on each one?
There has to be a bit more to the requirement - a date. When I used to file financial disclosures for my state job , I had to value my bank accounts etc as of December 31 of the previous year. And if I used the 100K in my savings account to put a down payment on a personal residence on December 1, it was not reportable. I don’t know what the date is for a Congressional disclosure- maybe it’s the prior Dec 31 , maybe it’s the last day of the reporting period and everyone has a different reporting period but there’s either a date or a requirement to report the highest balance during the period. And that can make a big difference - my checking account balance December 1 will be over $5K but by December 31, after I’ve paid all the bills there might be $100 in it.
I’ve bought and sold a few pontoon boats. The “sweet spot” for me is around $10,000. I can find a nice used boat for around that, so it’s been my self imposed limit.
When I eventually sell a boat I only accept cash, so walking into my bank with $9,000 to deposit into my account has happened a few times. I wonder if they wonder.
Well, that is something.
Thanks, I feel better already.
More than 3.6 million SARs were filed in 2022, an 18% increase over 2021. The 3.1 million SARs filed in 2021 represented a 22.5% increase over 2020. The graph below, Figure 4, below shows the total annual volume of suspicious activity designations, or “flags,” reported across all filings.
This is too large a number for more than a small fraction to be investigated.
But these deposits aren’t within a few days, right?
No. I see your point. I could probably buy boats from people motivated to sell for $7000, clean them up a bit and then sell them for $9000. It’d be a pia, but it would create a situation where I regularly deposited $9000 at a time.
/hijack
yeah, but in your case, you have a sold reason for that kind of cash so it’s easly shown it’s not structuring.
I don’t think anyone at the bank cares.
But IANA guy who investigates that sort of thing.
When people talk about structuring and SARS they are talking about people depositing $9,000-$9,999 multiple times a day or at most multiple times a week.
Not six times a year.
The rules, which were posted upthread, require the filer to report the “period-end value” of the disclosed asset for assets that were valued in excess of $1,000 “at the close of the reporting period.”
So, first, it seems highly probable that Johnson has a non-interest bearing checking account, which does not need to be reported regardless of value. Given the paltry interest rates paid on most checking accounts, and the fact that, according to this, 93% of interest-bearing checking accounts have a monthly fee (while 46% of non-interest checking accounts are fee-free), it seems like a sensible decision for people to make that decision.
But, second, if the filer had an account that needed to be reported, the relevant question would not be whether it had ever exceeded the reporting threshold, but the value of the account on December 31 of the prior calendar year (i.e., the end of the reporting period).
(I will also note that the rules exempt reporting of real or personal property that is not “principally” held as an investment. So, if the filer took his salary and poured it into fine art or automobiles, none of that would ever need to be disclosed as long as he claimed they were for personal enjoyment.)
Yes, the bank will likely submit a SAR, but… if its a standard thing, the business does a deposit at noon, 4PM, and a night deposit at 9PM, and some days they total $10,000 and some they don;t, and they know the business, it’s just down the street… not “suspicious”. But, never hurst to be safe…
The problem was, they admitted they were splitting deposits (because a teller told them it was better) to avoid the $10,000 reporting limit. Their accounts were frozen for months while they waited for an investigation to happen and finish…
$8000 before taxes, so after maxing out the Thrift savings at 10%, etc,that can easily be half that.
True, but everyone is looked at and logged.
There’s really no one at the bank to explain. And the bank cares, since each $9000 cash deposit has to be looked at by an analyst , who has to decide- “SAR or no SAR”?
Generally multiple times per week.
Yeah, we used to do that sometimes. The word came down, after I left, to not do that as often. Mind you, I never had to freeze any individuals accounts. Personally, I did freeze a number of Money Service Business licences, stopping them from wiring, selling MO, cashing checks, etc. In every case, they were assisting Money Launderers. I sent a few cases off for criminal investigation. One got picked up by a Joint Organized Crime task force.