Money Laundering and Related Charges

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What Does “Structuring” Bank Deposits Mean?

Clients frequently ask me questions about handling large amounts of money.  Let’s start with the basics. The word “structuring” sounds technical, but the idea behind it is pretty straightforward once you strip away the jargon.

So, every business and person has the right to deposit and withdraw money from a bank. There’s nothing illegal about moving money around — as long as you’re doing it honestly and within the law.

Structuring becomes an issue when someone intentionally breaks up a large deposit (or a series of deposits) into smaller chunks to evade reporting requirements.

Here’s an everyday example people can relate to:

Imagine you earn $10,000 and you want to put it in the bank. Instead of depositing the whole $10,000 at once, you make five deposits of $2,000 each at different branches or on different days — specifically because you want to avoid the Bank Secrecy Act requirement that banks report cash transactions over $10,000 to the government.

That’s the simplest example of structuring: intentionally avoiding detection by splitting a transaction into smaller parts.

Why Is Structuring a Problem?

Banks in the United States are required to file a Currency Transaction Report (CTR) for any cash transaction over $10,000. This rule helps the government detect and prevent money laundering, tax evasion, terrorist financing, and other serious criminal activity.

When people break up transactions to avoid triggering this reporting — even if they’re not committing some other crime — the act of avoid­ing the reporting is itself a crime.

So the government isn’t just focused on suspicious money — they also want banks to report big transactions so they can see what’s going on. When people intentionally go out of their way to prevent that, it raises legal red flags.

Structuring Under Federal Law

Structuring is primarily a federal offense under Title 31 of the United States Code (31 U.S.C. § 5324). The law makes it illegal to:

  • Break up cash transactions to evade reporting requirements
  • Cause someone else to break up transactions to evade reporting
  • Attempt to do either of those things

You don’t have to actually succeed in hiding the transactions. The attempt alone can be enough for charges.

Federal prosecutors use structuring laws to combat all kinds of financial wrongdoing — mostly because breaking reporting rules often signals something bigger might be happening.

Penalties at the federal level can include:

  • Fines
  • Restitution
  • Forfeiture of funds
  • Jail time (up to years, in some cases)

You don’t have to be charged with another offense to face structuring charges — the structuring charge stands on its own.

What About California Law?

Now let’s bring this into the context of California.

1. State Law Mirrors Federal Law

California doesn’t have a special, separate state-level statute that is entirely different from the federal structuring law. Instead, California courts will typically address structuring as:

  • A state version of money laundering, or
  • As evidence supporting other financial crimes,
  • Or through California’s version of financial reporting violations.

If a person is charged with structuring in California, it’s almost always because federal authorities investigated the case and then worked with state prosecutors — or the structuring was uncovered during a state-level investigation where both sets of laws could apply.

2. Money Laundering and Related Charges

In California, structuring-like conduct often gets prosecuted as money laundering if the activity is tied to underlying criminal activity:

  • Selling drugs
  • Tax evasion
  • Fraud
  • Embezzlement
  • Theft

In those kinds of cases, the structuring behavior is evidence that the defendant was helping hide the proceeds of crime. That can make penalties more severe.

Penalties can include:

  • Heavy fines
  • Restitution
  • Probation
  • Significant jail or prison time

The exact punishment depends on the circumstances, the amounts of money involved, prior criminal history, and whether other crimes are tied to the structuring.

A Common Scenario

Here’s how a structuring issue usually unfolds in real life:

  1. A person is handling a lot of cash — say, from operating a business or from a source that isn’t fully documented.
  2. Instead of depositing $12,000 in one transaction (which would be automatically reported to authorities), they split it into multiple smaller deposits — $3,000 here, $4,000 there, $2,500 at another branch.
  3. Bank employees notice a pattern — multiple deposits just under reporting thresholds.
  4. The bank files a Suspicious Activity Report (SAR) with federal law enforcement.
  5. Investigators look deeper and may trace the funds.
  6. If they determine the structuring was intentional, prosecutors can charge structuring.

Sometimes the structuring is not malicious — maybe someone genuinely didn’t know about the reporting requirements. But prosecutors don’t have to prove you intended to commit some other crime — just that you knowingly structured the transactions to avoid reporting.

Why This Matters: Serious Consequences

Some people assume that “it’s just paperwork” — that structuring is a technicality with no real teeth. That’s not true:

  • Federal law enforcement takes structuring seriously.
  • Prosecutors see structuring as an early warning sign — a way to catch larger crimes.
  • Even where no underlying crime exists, structuring charges alone can lead to fines and jail time.
  • Financial institutions may freeze accounts while an investigation is underway.
  • A conviction can damage your financial reputation and credit.

This is the kind of thing where, once an investigation starts, it’s easy to feel overwhelmed and unsure of what to do next.

What You Should Know About Legal Defense

If someone is under investigation or charged with structuring, here are a few broad points about defense:

a. Knowledge and Intent Matter

Prosecutors must show that you intended to avoid reporting — not merely that you made smaller deposits for innocent reasons.

b. Evidence Can Be Complex

Banks keep detailed records. So do prosecutors. Defense often involves:

  • Challenging how the evidence was gathered
  • Showing legitimate reasons for structuring transactions
  • Demonstrating lack of intent to evade reporting

c. Professional Help Is Critical

Someone facing these charges typically needs representation from a criminal defense attorney with experience in financial crimes. These cases often involve overlapping federal and state issues, complex banking regulations, and detailed forensic financial analysis.

That’s why, if you or someone you know is dealing with this kind of situation, it’s important to reach out to someone who understands these laws, the way prosecutors think, and how to protect your rights.

Reaching Out to an Attorney

Facing structuring charges — or even an investigation — is stressful and confusing. The consequences are real. The law is technical. Judges and juries usually don’t give leniency for “I didn’t know the rule” — because structuring rules are well-established.

Talking to an experienced criminal defense attorney early can:

  • Clarify what you’re up against
  • Help you understand your legal options
  • Protect your rights through every step of the process
  • Potentially minimize the consequences

If you think you need legal help, make the call sooner rather than later.  Illegally structuring bank deposits isn’t just a minor paperwork violation. It’s a serious legal issue that can bring significant penalties under both federal and California law — especially if the structuring is tied to other criminal conduct.

If you find yourself in this situation, the smart move is not to guess what to do, call William Weinberg at 949.474.8008 or email at bill@williamweinberg.com for a confidential consultation.