CURRENCY AND FOREIGN TRANSACTIONS REPORTING ACT - A NEW LAW ENFORCEMENT TOOL

• NCJ Number: 59900
• Journal: FBI Law Enforcement Bulletin Volume: 48 Issue: 8 Dated: (AUGUST 1979) Pages: 1-5
• Author(s): R E CHASEN; A SINAI
• Date Published: 1979
• Length: 5 pages
• Corporate Author: Federal Bureau of Investigation
• Sale Source: National Institute of Justice/
• Language: English
• Country: United States of America

Annotation

TO DETER THE USE OF INTERNATIONAL FINANCIAL TRANSACTIONS AND SECRET FOREIGN BANK ACCOUNTS TO FACILITATE VIOLATIONS OF U.S. LAW, CONGRESS HAS PASSED THE CURRENCY AND FOREIGN TRANSACTIONS REPORTING ACT.

Abstract

TWO KEY REPORTING PROVISIONS OF THE ACT REQUIRE TRAVELERS AND OTHER PERSONS TO FILE REPORTS OF THE IMPORTATION OR EXPORTATION OF CURRENCY IN EXCESS OF $5,000 WITH THE CUSTOMS SERVICE AND REQUIRE BANKS AND OTHER FINANCIAL INSTITUTIONS TO REPORT CURRENCY TRANSACTIONS IN EXCESS OF $10,000 TO THE INTERNAL REVENUE SERVICE (IRS). THESE REPORTING REQUIREMENTS GENERATE USEFUL DATA FOR FEDERAL LAW ENFORCEMENT AGENCIES AND CREATE OPPORTUNITIES TO PROSECUTE OR PENALIZE CRIMINALS WHO ATTEMPT TO EVADE THESE PROVISIONS. CRIMINAL ORGANIZATIONS, ESPECIALLY THOSE INVOLVED IN NARCOTICS, ARE RELUCTANT TO FILE A REPORT BECAUSE FILING MIGHT DIRECT ATTENTION TO THEIR ACTIVITIES. IN FAILURE TO REPORT CASES CUSTOMS CAN USE THE PROVISIONS OF THE ACT TO SEIZE UNREPORTED MONEY WHICH THE CRIMINALS NEED TO FINANCE THEIR OPERATIONS. RECOGNIZING THE INHERENT RELATIONSHIP BETWEEN NARCOTICS SMUGGLING AND INTERNATIONAL CASH FLOW, CUSTOMS AND THE DRUG ENFORCEMENT ADMINISTRATION (DEA) ARE COORDINATING SEVERAL MAJOR INVESTIGATIONS WORKING TOWARD CONCURRENT PROSECUTION. THEIR JOINT ACTIONS TO INVESTIGATE CURRENCY AND FOREIGN TRANSACTIONS REPORTING ACT VIOLATIONS OF A MAJOR HEROIN TRAFFICKING ORGANIZATION, ALONG WITH EXAMPLES OF EFFECTIVE SEIZURES, ARE DESCRIBED. IN ADDITION, CUSTOMS HAS GIVEN FELONY-LEVEL VIOLATIONS OF THE ACT TOP PRIORITY, AND IS INVESTIGATING A NUMBER OF MULTINATIONAL CORPORATIONS FOR CURRENCY-REPORTING VIOLATIONS IN CONJUCTION WITH FOREIGN PAYOFFS. WHITE COLLAR CRIME AND ALIEN SMUGGLING. THE CRIMINAL AND CIVIL PENALTIES PROVIDED IN THE ACT, AS RESTATED IN THIS ARTICLE, HAVE A DEVASTATING EFFECT ON LARGE CRIMINAL ORGANIZATIONS. FURTHER EXAMPLES OF IRS AND OTHER AGENCIES' INVESTIGATIONS AND THE SUCCESSFUL PROSECUTION OF VIOLATORS ARE NOTED, ALONG WITH A DESCRIPTION OF THE CURRENCY INVESTIGATIONS DIVISION CREATED BY CUSTOMS. SEVERAL PHOTOGRAPHS ILLUSTRATE THE ARTICLE. (WJR)