Abstract
Because of the current aggressive Federal investigations into large cash transactions, which may be attempts to bring money generated from crime into the legitimate economy, businesses must comply with the strict Federal money-laundering laws. Launderers use cash transactions, which generally leave no paper trail to avoid documentation or detection of criminal dealings. The Bank Secrecy Act requires institutions to submit to the Internal Revenue Service a currency transaction report (CTR) for any cash transaction over $10,000 made by an individual on a single day. CTR's must contain the person's name, address, and social security number as well as the name of the institution or store where the transaction occurred. Businesses can face stiff penalties, including charges under the Racketeer Influenced and Corrupt Organizations Act, if they do not file the appropriate CTR's. Ninety-five percent of all money launderers indicted in the last few years have used one of a dozen methods. Warning signs include repeated transactions in amounts just under $10,000 or by different people on the same day in one account, internal transfers between accounts followed by large outlays, and false social security numbers.
