Money Laundering Scam

THE MONEY LAUNDERING ENFORCEMENT SCAM

The Money Laundering Enforcement Scam

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Copyright Sovereignty Education and Defense Ministry, http://sedm.org Form 05.044, Rev. 10-2-2013

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TABLE OF CONTENTS

TABLE OF CONTENTS .......................................................................................................................2 TABLE OF FIGURES ...........................................................................................................................3 LIST OF TABLES ..................................................................................................................................3 TABLE OF AUTHORITIES .................................................................................................................3 1 Purpose ........................................................................................................................................... 16 2 Money Background ....................................................................................................................... 17 2.1 Authorities on “deceit in commerce” and “just weights and measures” ............................................................. 17 2.2 What is “Money”? .............................................................................................................................................. 19 2.3 Money as debt..................................................................................................................................................... 19 2.4 Why We Don’t Have Lawful “Money” .............................................................................................................. 24 2.5 You can’t “launder” money if there IS no “money” ........................................................................................... 27 3 Money Laundering Background..................................................................................................27 3.1 Money Laundering Methods............................................................................................................................... 28 3.2 Money Laundering Enforcement ........................................................................................................................ 29 3.2.1 Criminalizing money laundering ..................................................................................................... 29 3.2.2 The role of financial institutions ...................................................................................................... 29 3.2.3 Value of enforcement costs and associated privacy concerns .........................................................29 3.2.4 Organizations working against money laundering...........................................................................30 4 Bank Secrecy Act Requirements..................................................................................................32 4.1 Types of reports .................................................................................................................................................. 32 4.2 Affected transactions .......................................................................................................................................... 33 4.2.1 Currency Transaction Report (C.T.R.) ............................................................................................ 33 4.2.2 Monetary Instrument Log (M.I.L.) .................................................................................................. 36 4.2.3 Suspicious Activity Report (S.A.R.)................................................................................................ 36 4.3 Sanctions............................................................................................................................................................. 36 4.4 How the BSA affects Americans ........................................................................................................................ 36 4.5 Individual filing requirement .............................................................................................................................. 36 4.6 Additional information ....................................................................................................................................... 37 4.7 Notable cases ...................................................................................................................................................... 37 5 Patriot Act Requirements .............................................................................................................37 5.1 Details ................................................................................................................................................................. 37 5.2 Background......................................................................................................................................................... 38 5.3 Titles ................................................................................................................................................................... 39 5.4 Title III: Anti-money-laundering to prevent terrorism ....................................................................................... 39 6 Federal Transaction Reporting SCAM .......................................................................................42 7 Authorities on Compelled or Mandatory Use of SSNs/TINs ....................................................46 7.1 Compelled use forbidden by Privacy Act ........................................................................................................... 46 7.2 Burden of Proof on Those Compelling Use........................................................................................................ 46 7.3 Penalties for compelled use ................................................................................................................................ 47 7.4 When is it mandatory under the I.R.C. to provide government issued numbers? ...............................................47 8 Criminal consequences of Money Laundering ...........................................................................55 8.1 Structuring, 31 U.S.C. §5324.............................................................................................................................. 55 8.2 Laundering of Monetary Instruments, 18 U.S.C. §1956.....................................................................................57 9 How financial institutions misrepresent and illegally administer money laundering statutes ......................................................................................................................................................... 57 9.1 Saying that federal law require an SSN or TIN in order to open an account or COMPELLING the use or disclosure of SSNs or TINs ................................................................................................................................ 57 9.2 FALSE CTRs and SARs..................................................................................................................................... 57

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9.3 How financial institutions protect their illegal and unconstitutional implementation of money laundering statutes 59 10 Defenses and Remedies against financial institutions for illegally representing or enforcing money laundering statutes............................................................................................................60 11 Conclusions and summary ...........................................................................................................65 12 Resources for further study and rebuttal ...................................................................................65 13 Questions that Readers, Grand Jurors, and Petit Jurors Should be Asking the Government ......................................................................................................................................................... 67 13.1 Questions about compelled use of Social Security Numbers and Taxpayer Identification Numbers .................68 13.2 Questions about filing of CTRs and SARs ......................................................................................................... 70 13.3 Questions about lawful “money” ........................................................................................................................ 73 13.4 Affirmation ......................................................................................................................................................... 79

TABLE OF FIGURES

Figure 1: Back of Social Security Card ................................................................................................................................. 68 Figure 2: Internal Revenue License........................................................................................................................................ 69

LIST OF TABLES

Table 1: I.R.C. Statutory "Benefits" ...................................................................................................................................... 51 Table 2: Statutory remedies for those compelled to act as public officers and straw man .................................................... 61 Table 3: Non-proportionality of American Eagle Gold Coins .............................................................................................. 78

TABLE OF AUTHORITIES

Constitutional Provisions Art. 80, Sect. 14.................................................................................................................................................................... 60 Art. III, Sect, 4(D) (governor) .............................................................................................................................................. 60 Art. V, Sect. 10..................................................................................................................................................................... 60 Article 1, Section 10, Clause 1 ....................................................................................................................................... 18, 72 Article 1, Section 8, Clause 17 ............................................................................................................................................. 43 Article 1, Section 8, Clause 2 ............................................................................................................................. 18, 21, 23, 75 Article 1, Section 8, Clause 5 ......................................................................................................................................... 21, 74 Article 5, Section 10 ............................................................................................................................................................. 60 Article 7, Section 7 ............................................................................................................................................................... 60 Article III, Section 25 ........................................................................................................................................................... 60 Article IV, Sect. 22............................................................................................................................................................... 60 Article VI, Section 12........................................................................................................................................................... 60 Article VII, Section 9 (judges) ............................................................................................................................................. 62 Const. Art. 94-95 .................................................................................................................................................................. 62 Const. Article 1, Section 11.................................................................................................................................................. 60 Const. Article 1, Section 19.................................................................................................................................................. 60 Const. Article 1, Section 8.................................................................................................................................................... 63 Const. Article 2, Section 04 (legislature) ............................................................................................................................. 62 Const. Article 2, Section 1.................................................................................................................................................... 63 Const. Article 2, Section 9.................................................................................................................................................... 61 Const. Article 3, Section 10.................................................................................................................................................. 60

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Const. Article 3, Section 13 (judges).................................................................................................................................... 61 Const. Article 3, Section 3.................................................................................................................................................... 63 Const. Article 4, Part 2, Section 4 ........................................................................................................................................ 60 Const. Article 4, Section 06, Para. (B) ................................................................................................................................. 62 Const. Article 4, Section 30 (legislative).............................................................................................................................. 61 Const. Article 4, Section 6.................................................................................................................................................... 63 Const. Article 4, Section 9.................................................................................................................................................... 62 Const. Article 5, Section 14.................................................................................................................................................. 60 Const. Article 5, Section 2.................................................................................................................................................... 60 Const. Article 5, Section 7.................................................................................................................................................... 60 Const. Article 6, Section 16 (senators) ................................................................................................................................. 63 Const. Article 6, Section 28.................................................................................................................................................. 60 Const. Article 7, Section 4 (executive)................................................................................................................................. 63 Const. Article 8, Section 7 (judges)...................................................................................................................................... 63 Const. Article I, Section II, Para. III..................................................................................................................................... 60 Const. Article II, Section 10 ................................................................................................................................................. 62 Const. Article II, Section 12 ................................................................................................................................................. 62 Const. Article II, Section 14 (legislature)............................................................................................................................. 63 Const. Article II, Section 2 ............................................................................................................................................. 61, 63 Const. Article II, Section 26 ................................................................................................................................................. 63 Const. Article II, Section 5 ................................................................................................................................................... 60 Const. Article III, Section 1.................................................................................................................................................. 62 Const. Article III, Section 2.................................................................................................................................................. 61 Const. Article III, Section 22 (legislature) ........................................................................................................................... 61 Const. Article III, Section 6.................................................................................................................................................. 63 Const. Article III, Section 7 (legislature) ............................................................................................................................. 62 Const. Article III, Section 8.................................................................................................................................................. 60 Const. Article III, Section II, Para. IV(b) ............................................................................................................................. 60 Const. Article III-9 ............................................................................................................................................................... 62 Const. Article IV, Section 13 ............................................................................................................................................... 63 Const. Article IV, Section 14 (governor) ............................................................................................................................. 61 Const. Article IV, Section 15 (judges) ................................................................................................................................. 63 Const. Article IV, Section 2 (executive)............................................................................................................................... 61 Const. Article IV, Section 2(e) (legislative) ......................................................................................................................... 61 Const. Article IV, Section 3 (senators)................................................................................................................................. 62 Const. Article IV, Section 4 (legislature) ............................................................................................................................. 63 Const. Article IV, Section 5 ................................................................................................................................................. 61 Const. Article IV, Section 8 ................................................................................................................................................. 61 Const. Article IV, Section V, Sections 3-4........................................................................................................................... 62 Const. Article V, Section 1................................................................................................................................................... 63 Const. Article V, Section 17 (judges)................................................................................................................................... 62 Const. Article V, Section 18 (legislature)............................................................................................................................. 62 Const. Article V, Section 4 (governor)................................................................................................................................. 63 Const. Article V, Section 7 (judges)..................................................................................................................................... 60 Const. Article V, Section 8................................................................................................................................................... 60 Const. Article V, Section 9 (office)...................................................................................................................................... 62 Const. Article V, Section I, Section 3 .................................................................................................................................. 62 Const. Article VI, Section 19 (judge) ................................................................................................................................... 62 Const. Article VI, Section 20(b)(1) ...................................................................................................................................... 62 Const. Article VI, Section 3 ................................................................................................................................................. 63 Const. Article VI, Section 9 ................................................................................................................................................. 62 Const. Article VII, Section 9 ................................................................................................................................................ 61 Const. Article VIII, Section 10 (judges)............................................................................................................................... 63 Const. Chapter II, Section 54 ............................................................................................................................................... 63 Const. Chapter VI, Article 2................................................................................................................................................. 61 Const. Const. Declaration of Rights, Article 35 (officers) ................................................................................................... 61 Const. Declaration of Rights, Article 33 (judges) ................................................................................................................ 61

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Const. of D.C., Article IV, Sect. 4(B) (judges) .................................................................................................................... 60 Const. Section 97-3-008 ....................................................................................................................................................... 63 Const. Section 97-5-027 ....................................................................................................................................................... 63 Const. Sections 2.5, 3.6, 4.8 ................................................................................................................................................. 60 Constitution of the United States.......................................................................................................................................... 78 Eighth Amendment .............................................................................................................................................................. 36 Fifth Amendment ................................................................................................................................................................. 54 First Amendment.................................................................................................................................................................. 25 U.S. Constitution, Article 1, Section 8, Clause 2 ................................................................................................................. 23 U.S. Constitution, Article 1, Section 8, Clause 5 ........................................................................................................... 18, 74 Statutes 12 U.S.C. § 412 (1968)......................................................................................................................................................... 25 12 U.S.C. §411 ................................................................................................................................................... 25, 72, 77, 78 12 U.S.C. §95a ..................................................................................................................................................................... 73 12 U.S.C. §95b ..................................................................................................................................................................... 73 13 V.S.A. §3002 ................................................................................................................................................................... 63 18 Pa.C.A. §4120 ................................................................................................................................................................. 63 18 U.S.C. §1001 ....................................................................................................................................................... 56, 64, 71 18 U.S.C. §1005 ....................................................................................................................................................... 56, 64, 71 18 U.S.C. §1029 ................................................................................................................................................................... 41 18 U.S.C. §1030 ................................................................................................................................................................... 39 18 U.S.C. §1512 ................................................................................................................................................................... 46 18 U.S.C. §1956 ................................................................................................................................................................... 56 18 U.S.C. §1956(c)(7)(B)(ii) ................................................................................................................................................ 39 18 U.S.C. §1956(c)(7)(B)(iii) ............................................................................................................................................... 39 18 U.S.C. §541 ..................................................................................................................................................................... 39 18 U.S.C. §654 ..................................................................................................................................................................... 67 18 U.S.C. §912 ................................................................................................................................................... 33, 56, 63, 64 18 U.S.C. §912: Impersonating a public officer ...................................................................................................... 56, 64, 71 18 U.S.C. §922(l) ................................................................................................................................................................. 39 18 U.S.C. §925(d) ................................................................................................................................................................ 39 18 U.S.C. §983(j) ................................................................................................................................................................. 39 26 U.S.C. §§6039 or 6039E ................................................................................................................................................. 46 26 U.S.C. §§671 to 679 ........................................................................................................................................................ 51 26 U.S.C. §1 ................................................................................................................................................................... 24, 50 26 U.S.C. §1(h)(11)(C)(i)(II) ............................................................................................................................................... 50 26 U.S.C. §162 ..................................................................................................................................................................... 44 26 U.S.C. §3401(a)(11) ........................................................................................................................................................ 25 26 U.S.C. §501(c ).......................................................................................................................................................... 50, 52 26 U.S.C. §6114 ................................................................................................................................................................... 50 26 U.S.C. §643(b) ................................................................................................................................................................ 51 26 U.S.C. §6712 ................................................................................................................................................................... 50 26 U.S.C. §7701 (a)(1) ......................................................................................................................................................... 55 26 U.S.C. §7701(a)(14) ........................................................................................................................................................ 46 26 U.S.C. §7701(a)(16) ........................................................................................................................................................ 59 26 U.S.C. §7701(a)(9) and (a)(10) ....................................................................................................................................... 47 26 U.S.C. §864(b)(1)(A) ...................................................................................................................................................... 51 26 U.S.C. §871(b) ................................................................................................................................................................ 50 26 U.S.C. §871(f) ........................................................................................................................................................... 50, 52 26 U.S.C. §894 ..................................................................................................................................................................... 50 26 U.S.C. 7701(a)(26) .......................................................................................................................................................... 44 28 U.S.C. §§754 and 959(a) ................................................................................................................................................. 69 28 U.S.C. §1332 ................................................................................................................................................................... 43 28 U.S.C. §1332(d) .............................................................................................................................................................. 42

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Copyright Sovereignty Education and Defense Ministry, http://sedm.org Form 05.044, Rev. 10-2-2013

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28 U.S.C. §2467(d)(3)(A) .................................................................................................................................................... 39 31 U.S.C. § 5324 - Structuring transactions to evade reporting requirement prohibited...................................................... 54 31 U.S.C. §§5311 – 5330 ....................................................................................................................................................... 31 31 U.S.C. §103 ..................................................................................................................................................................... 33 31 U.S.C. §3124 ................................................................................................................................................................... 24 31 U.S.C. §392 (1965).......................................................................................................................................................... 25 31 U.S.C. §5112(t)(1)(C) ..................................................................................................................................................... 33 31 U.S.C. §5313 ................................................................................................................................................. 33, 34, 41, 55 31 U.S.C. §5316 ................................................................................................................................................................... 41 31 U.S.C. §5324 ............................................................................................................................................................. 41, 54 31 U.S.C. §5331 ............................................................................................................................................................. 44, 55 31 U.S.C. Chapter 53, Subchapter II: Records and Reports on Monetary Instruments Transactions .................................. 65 31 U.S.C.A. §5316(a) ........................................................................................................................................................... 31 4 U.S.C. §110(d) .................................................................................................................................................................. 34 4 U.S.C. §72 ......................................................................................................................................................................... 52 40 U.S.C. §§3111 and 3112 ................................................................................................................................................. 42 42 U.S.C. §408(a)(8) ................................................................................................................................................ 15, 35, 68 48 Stat. 112-113 ................................................................................................................................................................... 25 5 U.S.C. §552a Legislative Notes .................................................................................................................................. 45, 46 5 U.S.C. §552a(g)(4) ............................................................................................................................................................ 46 720 ILCS 5/17-2................................................................................................................................................................... 61 8 U.S.C. §1401 ..................................................................................................................................................................... 35 A.R.S. §13-2006................................................................................................................................................................... 60 A.R.S. §13-2406................................................................................................................................................................... 60 A.S. §11.46.160.................................................................................................................................................................... 60 A.S. §11.56.830.................................................................................................................................................................... 60 A.S.C. §5-37-208 ................................................................................................................................................................. 60 Anti-Terrorism Act of 2001 ................................................................................................................................................. 37 Arms Export Control Act (22 U.S.C. §2778) ....................................................................................................................... 39 Bank Secrecy Act ................................................................................................................................................................. 36 Bank Secrecy Act (B.S.A.)............................................................................................................................................. 37, 65 Bank Secrecy Act of 1970.............................................................................................................................................. 31, 38 Benjamin Franklin True Patriot Act ..................................................................................................................................... 38 C.O.A. §13A-10-10 .............................................................................................................................................................. 60 C.O.A. Title 13A, Article 10 ................................................................................................................................................ 60 C.O.V. §18.2-186.3 .............................................................................................................................................................. 63 California Civil Code, §2224 ......................................................................................................................................... 20, 21 Challenging Federal Jurisdiction, Form #12.010 ................................................................................................................. 45 Currency and Foreign Transactions Reporting Act .............................................................................................................. 31 D.C. Code §22-1404............................................................................................................................................................. 60 D.C. Title 11, Section 854 .................................................................................................................................................... 60 D.C. Title 11, Section 907(3) ............................................................................................................................................... 60 Domestic Security Enhancement Act of 2003...................................................................................................................... 38 Drug Trafficking Act 1994................................................................................................................................................... 26 Electronic Communications Privacy Act of 1986 (E.C.P.A.) .............................................................................................. 37 Federal Deposit Insurance Act, 64 Stat. 873, Section 3(a)(3) .............................................................................................. 33 Federal Reserve Act ....................................................................................................................................................... 20, 21 Federal Reserve Act in 1913 ................................................................................................................................................ 21 Federal Reserve Act, 38 Stat. 251, Chap. 6, Section 16 ....................................................................................................... 78 Federal Reserve Act, 38 Stat. 251-275, 690-691, Dec. 22, 1913 ......................................................................................... 65 Foreign Agents Registration Act of 1938............................................................................................................................. 39 Foreign Intelligence Surveillance Act of 1978 (F.I.S.A.)..................................................................................................... 37 Freedom of Information Act (F.O.I.A.)................................................................................................................................ 35 Full Text of Enrolled Bill H.R. 3162, GovTrack.us ............................................................................................................. 37 G.L.M. Chapter 268, Section 33........................................................................................................................................... 61 G.L.R.I. §11-14-1 ................................................................................................................................................................. 63 General Business Law 380-S ............................................................................................................................................... 62

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Government Identity Theft, Form #05.046 .................................................................................................................... 15, 65 H.J.R. 192, 48 Stat. 112-113 ................................................................................................................................................ 77 H.J.R. 192, Section 1 ............................................................................................................................................................ 25 H.R. 2975, THOMAS .......................................................................................................................................................... 37 H.R. 3162 ....................................................................................................................................................................... 36, 37 H.R. 3162, THOMAS .......................................................................................................................................................... 37 H.R. 3171, THOMAS .......................................................................................................................................................... 38 H.R.S. §710-1016................................................................................................................................................................. 60 Hermant Lakhani .................................................................................................................................................................. 41 I.C. §25-30-1-18 ................................................................................................................................................................... 61 I.C. Title XVI, Section 718.2 ............................................................................................................................................... 61 I.S. §18-3001 ........................................................................................................................................................................ 61 Immigration and Nationality Act.......................................................................................................................................... 37 Internal Revenue Code ......................................................................................................................................................... 78 International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001.................................................... 38 K.R.S. §21-3825................................................................................................................................................................... 61 K.R.S. §434.570 ................................................................................................................................................................... 61 K.R.S. §514.60 ..................................................................................................................................................................... 61 K.R.S. §532.034 ................................................................................................................................................................... 61 K.R.S. §61.080 ..................................................................................................................................................................... 61 M.C. §97-7-43 ...................................................................................................................................................................... 61 M.C.A. §45-7-209 ................................................................................................................................................................ 62 M.R.S. §570.223 .................................................................................................................................................................. 61 M.S. §609.475 ...................................................................................................................................................................... 61 Mich. Penal Code, Chapter XXXV, Section 750.217c......................................................................................................... 61 Money Laundering Control Act of 1986 .............................................................................................................................. 37 Money Laundering Control Act of 1986 (M.L.C.A.) ........................................................................................................... 38 N.C.G.S. §14-277 ................................................................................................................................................................. 62 N.D.C.C. §12.1-13-04 .......................................................................................................................................................... 62 N.H.R.S.§359-I:2 ................................................................................................................................................................. 62 N.J.S.A. §2C:28-8 ................................................................................................................................................................ 62 N.M.S.A. §30-16-21.1.......................................................................................................................................................... 62 N.R.S. §197.120 ................................................................................................................................................................... 62 N.R.S. §28-636..................................................................................................................................................................... 62 N.R.S. §28-639..................................................................................................................................................................... 62 O.C.G.A. §16-10-23 ............................................................................................................................................................. 60 O.R.S. §162.365 ................................................................................................................................................................... 62 O.R.S. §165.803 ................................................................................................................................................................... 62 O.S. Title 21, Section 1533 .................................................................................................................................................. 62 O.S. Title 21, Section 1533.1 ............................................................................................................................................... 62 OMAS, S.1552 ..................................................................................................................................................................... 38 Patriot Act ............................................................................................................................................................................ 36 PATRIOT Sunsets Extension Act of 2011 ........................................................................................................................... 36 Penal Code §484.1................................................................................................................................................................ 60 Penal Law §190.23 ............................................................................................................................................................... 62 Penal Law 190.78 ................................................................................................................................................................. 62 Proceeds of Crime Act 2002, section 340(2)(b) – definition of "criminal conduct" ............................................................. 26 Protecting the Rights of Individuals Act .............................................................................................................................. 38 Provide Appropriate Tools Required to Intercept and Obstruct Terrorism (PATRIOT) Act of 2001.................................. 37 Pub. L. 93 – 579, Section 7 .................................................................................................................................................... 45 Public Law 97-258, 96 Stat. 1068 .................................................................................................................................. 77, 78 Public Law Pub.L. 107 – 56 ................................................................................................................................................... 36 R.C.W. §18.71.190............................................................................................................................................................... 63 R.S. §14:112 ......................................................................................................................................................................... 61 S. 1510, THOMAS............................................................................................................................................................... 37 S. 1709, THOMAS............................................................................................................................................................... 38 S.D.C.L. §22-40-16 .............................................................................................................................................................. 63

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Copyright Sovereignty Education and Defense Ministry, http://sedm.org Form 05.044, Rev. 10-2-2013

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