Money Laundering Scam

proceeds and the increase in penalties for money laundering. Congress found that a criminal offense of merely evading the 1 reporting of money transfers was insufficient and decided that it would be better if the smuggling of the bulk currency itself 2 was the offense. Therefore, the B.S.A. was amended to make it a criminal offense to evade currency reporting by concealing 3 more than US$10,000 on any person or through any luggage, merchandise or other container that moves into or out of the 4 U.S. The penalty for such an offense is up to 5 years imprisonment and the forfeiture of any property up to the amount that 5 was being smuggled. 112 It also made the civil and criminal penalty violations of currency reporting cases 113 be the forfeiture 6 of all a defendant's property that was involved in the offense, and any property traceable to the defendant. 114 The Act prohibits 7 and penalizes those who run unlicensed money transmitting businesses. 115 In 2005, this provision of the USA PATRIOT Act 8 was used to prosecute Yehuda Abraham for helping to arrange money transfers for British arms dealer Hermant Lakhani, 9 who was arrested in August 2003 after being caught in a government sting. Lakhani had tried to sell a missile to an FBI agent 10 posing as a Somali militant. 116 The definition of counterfeiting was expanded to encompass analog, digital or electronic image 11 reproductions, and it was made an offense to own such a reproduction device. Penalties were increased to 20 years 12 imprisonment. 117 Money laundering "unlawful activities" was expanded to include the provision of material support or 13 resources to designated foreign terrorist organizations. 118 The Act specifies that anyone who commits or conspires to 14 undertake a fraudulent activity outside the jurisdiction of the United States, and which would be an offense in the U.S., will 15 be prosecuted under 18 U.S.C. §1029, which deals with fraud and related activity in connection with access devices. 119 16 When you attempt to execute a financial transaction at your local bank, you will likely at some point or another encounter a 18 situation where you will be told that your bank is required by federal law to report your transaction to the federal government 19 because it exceeds $3,000 in value. The bank will tell you that this is a requirement imposed by the Bank Secrecy Act (BSA). 20 This article will clearly show that the Bank Secrecy Act, like the Internal Revenue Code, only applies on federal property and 21 inside the federal zone and only to those engaged in a "trade or business" which in all cases is synonymous ONLY with a 22 public office. This article will give you facts and cites to provide to your bank to refute their erroneous claim that the federal 23 government has a right within the sovereign 50 states to invade your privacy and require you to be a witness against yourself 24 (in violation of the Fifth Amendment) by reporting your financial transactions to the federal government. 25 6 Federal Transaction Reporting SCAM 17

Article 1, Section 8 of the U.S. Constitution gives the federal government two specific powers relating to money. The 26 Congress shall have the Power...: 27

• Article 1, Section 8, Clause 5: To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard 28 of Weights and Measures; 29 • Article 1, Section 8, Clause 2: To borrow Money on the credit of the United States; 30

The statutes which derive from the above powers related to transaction reporting by financial institutions are summarized 31 below. You will note that these reporting requirements exceed the powers granted explicitly in the constitution to the U.S. 32 government and are therefore questionable in their delegated authority from the beginning: 33

• Title 31 Money Money and Finance, Chapter 35, Subchapter II: Records and Reports on Monetary Instruments and 34 Transactions 35 • 31 U.S.C. Sec. 5313. - Reports on domestic coins and currency transactions 36 • 31 U.S.C. Sec. 5314. - Records and reports on foreign financial agency transactions 37 • 31 U.S.C. Sec. 5315. - Reports on foreign currency transactions 38

112 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle C, Sec. 371.

113 So defined in 31 U.S.C. §5313, 31 U.S.C. §5316 and 31 U.S.C. §5324.

114 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle C, Sec. 372. Amended 31 U.S.C. §5317(c).

115 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle C, Sec. 371. Amended 18 U.S.C. §1960.

116 "The Patriot Act: Justice Department Claims Success". National Public Radio. July 20, 2005.

117 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle C, Sec. 374. Amended 18 U.S.C. §1960.

118 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle C, Sec. 376. Amended 18 U.S.C. §1956(c)(7)(D).

119 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle C, Sec. 377.

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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