2005 Federal Sentencing Guidelines
Chapter 2 - PART S - MONEY LAUNDERING AND MONETARY TRANSACTION REPORTING
§2S1.3. 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
(a) Base Offense Level:
(1) 8, if the defendant was convicted
under 31 U.S.C. § 5318 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.
(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
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 Chapter Two, Part
T (Offenses Involving Taxation) if the resulting offense level is greater
than that determined above.
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. For additional statutory provision(s), see Appendix
A (Statutory Index).
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 unlawfully
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) transporting or transferring (or attempting to transport or transfer) such
currency or monetary instruments 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 Obligations of the United
3. Enhancement for Pattern of Unlawful
Activity.—For purposes of subsection (b)(2), "pattern 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
Transaction 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 (see Appendix
C, amendments 216-218); November 1, 1991 (see Appendix
C, amendments 379 and 422); November 1, 1993 (see Appendix
C, amendment 490); November 1, 2001 (see Appendix
C, amendments 617 and 634); November 1, 2002 (see Appendix
C, amendment 637); November 1, 2003 (see Appendix
C, amendment 655).