Structuring Transactions to Evade Reporting Requirements; Failure to Report

Cash or Monetary Transactions; Failure to File Currency and Monetary Instrument Report; Knowingly Filing False Reports; Bulk Cash Smuggling; Establishing or Maintaining Prohibited Accounts (a) Base Offense Level: (1) 8, if the defendant was convicted under 31 U.S.C. § 5318 or § 5318A; or (2) 6 plus the number of offense levels from the table in §2B1.1 (Theft, Property Destruction, and Fraud) corresponding to the value of the funds, if subsection (a)(1) does not apply. 326 ║ Guidelines Manual (November 1, 2024) §2S1.3 (b) Specific Offense Characteristics (1) If (A) the defendant knew or believed that the funds were proceeds of unlawful activity, or were intended to promote unlawful activity; or (B) the offense involved bulk cash smuggling, increase by 2 levels. (2) If the defendant (A) was convicted of an offense under subchapter II of chapter 53 of title 31, United States Code; and (B) committed the offense while violating another law of the United States or as part of a pattern of unlawful activity involving more than $100,000 in a 12- month period, increase by 2 levels. (3) If (A) subsection (a)(2) applies and subsections (b)(1) and (b)(2) do not apply; (B) the defendant did not act with reckless disregard of the source of the funds; (C) the funds were the proceeds of lawful activity; and (D) the funds were to be used for a lawful purpose, decrease the offense level to level 6. (c) Cross Reference (1) If the offense was committed for the purposes of violating the Internal Revenue laws, apply the most appropriate guideline from Chap- ter Two, Part T (Offenses Involving Taxation) if the resulting offense level is greater than that determined above. Commentary Statutory Provisions: 18 U.S.C. § 1960 (but only with respect to unlicensed money transmitting businesses as defined in 18 U.S.C. § 1960(b)(1)(A) and (B)); 26 U.S.C. §§ 7203 (if a violation based upon 26 U.S.C. § 6050I), 7206 (if a violation based upon 26 U.S.C. § 6050I); 31 U.S.C. §§ 5313, 5314, 5316, 5318, 5318A(b), 5322, 5324, 5326, 5331, 5332, 5335, 5336. For additional statutory provision(s), see Ap- pendix A (Statutory Index). Application Notes: 1. Definition of “Value of the Funds”.—For purposes of this guideline, “value of the funds” means the amount of the funds involved in the structuring or reporting conduct. The relevant statutes require monetary reporting without regard to whether the funds were lawfully or un- lawfully obtained. 2. Bulk Cash Smuggling.—For purposes of subsection (b)(1)(B), “bulk cash smuggling” means (A) knowingly concealing, with the intent to evade a currency reporting requirement under 31 U.S.C. § 5316, more than $10,000 in currency or other monetary instruments; and (B) trans- porting or transferring (or attempting to transport or transfer) such currency or monetary in- struments into or outside of the United States. “United States” has the meaning given that term in Application Note 1 of the Commentary to §2B5.1 (Offenses Involving Counterfeit Bearer Ob- ligations of the United States). Guidelines Manual (November 1, 2024) ║ 327 §2S1.4 3. Enhancement for Pattern of Unlawful Activity.—For purposes of subsection (b)(2), “pat- tern of unlawful activity” means at least two separate occasions of unlawful activity involving a total amount of more than $100,000 in a 12-month period, without regard to whether any such occasion occurred during the course of the offense or resulted in a conviction for the conduct that occurred on that occasion. Background: Some of the offenses covered by this guideline relate to records and reports of certain transactions involving currency and monetary instruments. These reports include Currency Transac- tion Reports, Currency and Monetary Instrument Reports, Reports of Foreign Bank and Financial Accounts, and Reports of Cash Payments Over $10,000 Received in a Trade or Business. This guideline also covers offenses under 31 U.S.C. §§ 5318 and 5318A, pertaining to records, reporting and identification requirements, prohibited accounts involving certain foreign jurisdictions, foreign institutions, and foreign banks, and other types of transactions and types of accounts. Historical Note Effective November 1, 1987. Amended effective November 1, 1989 (amendments 216–218); November 1, 1991 (amendments 379 and 422); November 1, 1993 (amendment 490); November 1, 2001 (amendments 617 and 634); November 1, 2002 (amendment 637); November 1, 2003 (amendment 655); November 1, 2023 (amendment 815); November 1, 2024 (amendment 830). §2S1.4. [Deleted] Historical Note Section 2S1.4 (Failure to File Currency and Monetary Instrument Report), effective November 1, 1991 (amendments 379 and 422), was deleted by consolidation with §2S1.3 effective November 1, 1993 (amend- ment 490). 328 ║ Guidelines Manual (November 1, 2024) §2T1.1 PART T ― OFFENSES INVOLVING TAXATION 1. INCOME TAXES, EMPLOYMENT TAXES, ESTATE TAXES, GIFT TAXES, AND EXCISE TAXES (OTHER THAN ALCOHOL, TOBACCO, AND CUSTOMS TAXES) Historical Note Effective November 1, 1987. Amended effective November 1, 1993 (amendment 491). Introductory Commentary The criminal tax laws are designed to protect the public interest in preserving the integrity of the nation’s tax system. Criminal tax prosecutions serve to punish the violator and promote respect for the tax laws. Because of the limited number of criminal tax prosecutions relative to the estimated incidence of such violations, deterring others from violating the tax laws is a primary consideration underlying these guidelines. Recognition that the sentence for a criminal tax case will be commensu- rate with the gravity of the offense should act as a deterrent to would-be violators. Historical Note Effective November 1, 1987.