Money Laundering Scam

of $10,000 at any point in a year. 52 Additionally, they must report the accounts on Schedule B of the IRS Form 1040 tax form. 1 The FBAR should be filed separately with the U.S. Treasury by June 30 of each year. 2

For exhaustive details on why those domiciled within a constitutional state are NOT STATUTORY “U.S. citizens”, see: 3

Why You are a “national”, “state national”, and Constitutional but not Statutory Citizen , Form #05.006 http://sedm.org/Forms/FormIndex.htm

4.6

Additional information

4

An entire industry has developed around providing software to analyze transactions in an attempt to identify transactions or 5 patterns of transactions called structuring, which requires SAR filing. Financial institutions are subject to penalties for failing 6 to properly file CTRs and SARs, such as heavy fines and regulatory restrictions, including charter revocation. 7 These software applications effectively monitor customer transactions on a daily basis, and using a customer's past 8 transactions and account profile, provide a "whole picture" of the customer to the bank management. Transaction monitoring 9 can include cash deposits and withdrawals, wire transfers and Automated Clearing House (A.C.H.) activity. In the banking 10 industry, these applications are known as "BSA software" or "anti-money laundering software". 11

4.7

Notable cases

12

In 1998, the Supreme Court ruled in United States v. Bajakajian that the government may not confiscate any money from an 13 individual for failure to report it on a CMIR, as such punishment would be "grossly disproportional to the gravity of [the] 14 offense" and thus unconstitutional under the Excessive Fines clause of the Eighth Amendment. 15 In 2011 the Observer reported that Wachovia, at one time a major US bank, was implicated in laundering money for Mexican 16 drug lords, through its lax laundering controls, a violation of the Bank Secrecy Act. It moved money in and out of casas de 17 cambio without proper due diligence. 53 18

5

Patriot Act Requirements

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The USA PATRIOT Act of 2001 is an Act of Congress that was signed into law by President George W. Bush on October 20 26, 2001. The title of the act is a ten-letter acronym (USA PATRIOT) that stands for Uniting (and) Strengthening America 21 (by) Providing Appropriate Tools Required (to) Intercept (and) Obstruct Terrorism Act of 2001. 54 It is commonly referred to 22 as the Patriot Act . 23 On May 26, 2011, President Barack Obama signed the PATRIOT Sunsets Extension Act of 2011, 55 a four-year extension of 24 three key provisions in the USA PATRIOT Act: 56 roving wiretaps, searches of business records (the "library records 25 provision"), and conducting surveillance of "lone wolves" — individuals suspected of terrorist-related activities not linked to 26 terrorist groups. 57 27

5.1

Details

28

From broad concern felt among Americans from both the September 11 attacks and the 2001 anthrax attacks, Congress rushed 29 to pass legislation to strengthen security controls. On October 23, 2001, Republican Rep. Jim Sensenbrenner introduced H.R. 30 3162 incorporating provisions from a previously sponsored House bill and a Senate bill also introduced earlier in the month. 58 31

52 FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) – Filing Requirements; IRS Publication 4261

53 Vulliamy, Ed (2011-04-02). "How a big US bank laundered billions from Mexico's murderous drug gangs". The Observer. Retrieved 2013-06-28.

54 Public Law Pub.L. 107 – 56.

55 http://www.govtrack.us/congress/bills/112/s990#overview.

56 May 27, 2011 "Obama Signs Last-Minute Patriot Act Extension". Fox News. Retrieved May 27, 2011.

57 Mascaro, Lisa (May 27, 2011). "Congress votes in time to extend key Patriot Act provisions". Los Angeles Times . Retrieved 2011-05-27.

58 "Bill Summary & Status 107th Congress (2001 - 2002)H.R.3162 Major Congressional Actions", thomas.loc.gov Retrieved 2012-08-11.

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:________