Money Laundering Scam

The United Nations Office on Drugs and Crime maintains the International Money Laundering Information Network , a 1 website that provides information and software for anti – money laundering data collection and analysis. 41 The World Bank 2 has a website that provides policy advice and best practices to governments and the private sector on anti – money laundering 3 issues. 42 4

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Bank Secrecy Act Requirements

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The Bank Secrecy Act of 1970 (or BSA , or otherwise known as the Currency and Foreign Transactions Reporting Act ) 6 requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering. 7 Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, and file reports 8 of cash purchases of these negotiable instruments of more than $10,000 (daily aggregate amount), and to report suspicious 9 activity that might signify money laundering, tax evasion, or other criminal activities. Many banks will no longer sell 10 negotiable instruments when they are purchased with cash, requiring the purchase to be withdrawn from an account at that 11 institution. 12 The B.S.A. was originally passed by the Congress of the United States in 1970, and amended several times since then, 13 including provisions in title III of the USA PATRIOT Act. (See 31 U.S.C. §§5311 – 5330 and 31 C.F.R. Chapter X.) The 14 B.S.A. is sometimes referred to as an "anti-money laundering" law ("AML") or jointly as "BSA/AML". 43 15

4.1

Types of reports

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The B.S.A. regulations require all financial institutions to submit five types of reports to the government. The following is 17 not an exhaustive list of reports to be filed. The FBAR has an individual filing requirement, as detailed below. 18

1. FinCEN Form 112 (formerly Form 104) Currency Transaction Report (CTR) : A CTR must be filed for each 19 deposit, withdrawal, exchange of currency, or other payment or transfer, by, through or to a financial institution, 20 which involves a transaction in currency of more than $10,000. Multiple currency transactions must be treated as a 21 single transaction if the financial institution has knowledge that: (a) they are conducted by or on behalf of the same 22 person; and, (b) they result in cash received or disbursed by the financial institution of more than $10,000. 44 23 2. FinCEN Form 105 Report of International Transportation of Currency or Monetary Instruments (CMIR) : 24 Each person (including a bank) who physically transports, mails or ships, or causes to be physically transported, 25 mailed, shipped or received, currency, traveler's checks, and certain other monetary instruments in an aggregate 26 amount exceeding $10,000 into or out of the United States must file a CMIR. 45 27 3. Department of the Treasury Form 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR) : Each 28 person (including a bank) subject to the jurisdiction of the United States having an interest in, signature or other 29 authority over, one or more bank, securities, or other financial accounts in a foreign country must file an FBAR if 30 the aggregate value of such accounts at any point in a calendar year exceeds $10,000. 46 A recent District Court 31 case in the 10th Circuit has significantly expanded the definition of "interest in" and "other Authority". 47 32 4. Treasury Department Form 90-22.47 and OCC Form 8010-9, 8010-1 Suspicious Activity Report (SAR) : 33 Banks must file a SAR for any suspicious transaction relevant to a possible violation of law or regulation. 48 34

41 International Money Laundering Information Network. Retrieved on 21 October 2011.

42 World Bank Financial Market Integrity. Amlcft.org. Retrieved on 21 October 2011.

43 http://www.fincen.gov/statutes_regs/bsa/

44 31 C.F.R. §1010.311 (formerly 31 C.F.R. §103.22)

45 31 U.S.C.A. §5316(a).

46 31 C.F.R. §1010.350

47 Anthony E. Parent. "The Hidden Side to the McBride FBAR Judgment". Retrieved 2012-12-11.

48 31 C.F.R. §1020.320 (formerly 31 C.F.R. §103.21); 12 C.F.R. §12.11

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

EXHIBIT:________