Many people have never heard the term "structuring" until they find themselves facing serious criminal charges because of it. In Tustin, CA, structuring allegations often catch individuals and business owners off guard, particularly because the underlying conduct, breaking up cash transactions into smaller amounts, may not feel inherently criminal. Understanding how structuring works, and how it connects to money laundering charges, is essential if you are facing this type of allegation.

Defining Structuring Under Federal and State Law

Structuring refers to the practice of breaking up cash transactions into smaller amounts specifically to avoid triggering the reporting requirements that banks must follow for transactions over $10,000. Financial institutions are required to file a Currency Transaction Report for any cash transaction exceeding this threshold, and structuring laws make it illegal to deliberately manipulate transactions to stay under that limit.

Importantly, structuring can be charged as a crime even if the underlying money involved was obtained legally. The offense centers on the intent to evade reporting requirements, not necessarily on the source of the funds.

Common Situations That Lead to Structuring Allegations

Structuring charges often arise in situations that may seem routine to the person involved, such as:

• Making multiple cash deposits under $10,000 across several days or branches
• Splitting a large cash purchase into smaller transactions
• Asking a bank teller how to avoid triggering a reporting requirement
• Business owners depositing cash receipts in smaller increments over time

Small business owners who deal heavily in cash are particularly vulnerable to structuring allegations, especially if their deposit patterns appear inconsistent or deliberately broken up, even if the underlying business activity is entirely legitimate.

The Connection to Money Laundering

Structuring is often charged alongside money laundering because both offenses involve efforts to obscure the movement of money from law enforcement or regulatory scrutiny. Money laundering charges require prosecutors to show that funds were derived from criminal activity and that the defendant took steps to disguise their origin. Structuring, by contrast, does not require proof that the money came from illegal activity, only that the transactions were deliberately broken up to avoid reporting thresholds.

This distinction matters significantly in building a defense. In many cases, funds involved in a structuring allegation come from entirely legal sources, such as business revenue or personal savings, which can undercut a related money laundering charge even if the structuring allegation itself is more difficult to challenge.

What Prosecutors Must Prove

To convict someone of structuring, prosecutors must show that the person acted with the specific intent to evade currency reporting requirements. This intent requirement is critical, because individuals sometimes make multiple smaller cash transactions for entirely innocent reasons, without any awareness of reporting thresholds or intent to avoid them.

Protecting Your Rights in a Structuring Investigation

If you are contacted by federal investigators, the IRS, or local law enforcement regarding your banking activity, it is important to seek legal counsel before answering questions or providing financial documentation. Law Office of Michael L. Fell has the financial case experience needed to examine banking records, identify legitimate explanations for transaction patterns, and challenge the intent element these cases depend on. Reach out to (949) 585-9055 to discuss the specifics of your situation and begin protecting your rights.