Thread Options
#2002228 - 03/17/15 10:34 PM Common sense and structuring
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
Thought some of you might be interested in this article. A link to the IRS Commissioner's remarks is at the bottom of the article.

Common Sense and Structuring
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
BSA/AML/CIP/OFAC Forum
#2002263 - 03/18/15 11:40 AM Re: Common sense and structuring Retread
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,714
You are here
"This revised approach should minimize the impact on financial institutions whose customer accounts are seized without any underlying evidence of illegal activity."


That does not seem like a possibility.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#2002305 - 03/18/15 02:33 PM Re: Common sense and structuring Retread
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
Even if you believe it (and like Ed, I am skeptical), this has alot of the same vibe as the DOJ Cole Memo:

"We're going to make things easier for you. Not because the law has changed but because we're simply nice like that. But we could decide to be less nice at any time..."
Last edited by JacFSB; 03/18/15 04:29 PM. Reason: spelling
Return to Top
#2002367 - 03/18/15 04:16 PM Re: Common sense and structuring Retread
SeekingKnowledge Offline
100 Club
SeekingKnowledge
Joined: Jun 2014
Posts: 152
SC
I agree with JacFSB, it seems as if several government agencies are reinterpreting how they enforce certain regulations simply because that is easier than getting a law changed. Rules and regulations that mean something one day and then another the next leave little comfort for financial institutions charged with following them.

Return to Top
#2002382 - 03/18/15 04:48 PM Re: Common sense and structuring Retread
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,714
You are here
My point is that the FI would still need to file a SAR for structuring even if the funds are legit. Structuring is an offence that requires a SAR even if there is not intention of LE pursuing the case.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#2002398 - 03/18/15 05:12 PM Re: Common sense and structuring Retread
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
So, he got religion, excuse me, "common sense," but only when he was called before Congress to testify? Taking someone's property without even accusing them of a crime is a violation of the due process clause and morally reprehensible. Yet, that only dawns on the IRS when someone pulls "the stick" out and lets them see it immediately prior to applying it to their head and shoulders.

There is no appreciable burden on financial institutions in a seizure; I have no idea what he's talking about there, perhaps just playing to the grandstand.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#2002453 - 03/18/15 06:52 PM Re: Common sense and structuring Elwood P. Dowd
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
Originally Posted By: Ken_Pegasus
Taking someone's property without even accusing them of a crime is a violation of the due process clause and morally reprehensible.

Agreed, and it makes one wonder how asset forfeiture as it exists today is even allowed (but that's a topic for another conversation). Nevertheless, the Commissioner isn't even stating that he is backing off of the practice, simply that he's narrowing the scope of it's use.

But with the implications in his speech on reports by banks of structuring being the impetus for these seizures, can we expect this release to prompt a consumer-protection driven push for lawmakers and/or regulatory agencies to reexamine structuring related SARs? The BSA pendulum has swung about as far as it can in its current direction, with more and more banks filing defensively because "you just don't know" what the customer is up to, or because it is easier to file on a large transaction than to ask the customer. Might the backswing begin with this speech?

Return to Top
#2002456 - 03/18/15 06:56 PM Re: Common sense and structuring Retread
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
I don't understand why the IRS simply doesn't issue fines for structuring when they don't find any evidence of an illicit source of funds. Smack the liquor store or pizza parlor with a $5,000 fine for structuring and then see how quickly legitimate businesses stop that nonsense. JMTC
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

Return to Top
#2002491 - 03/18/15 08:18 PM Re: Common sense and structuring Princess Romeo
kw004h Offline
100 Club
Joined: Nov 2009
Posts: 219
Chicagoland, IL
^^ That! And then give us a percentage.

Return to Top

Moderator:  Andy_Z