Structuring financial transactions?

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Sep 17, 2018
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#1
Hi All,

I wanted to inquire whether any of you could shed more light on what the Structuring regulation entails.

Here's some quick Wikipedia definition: Structuring is the act of parceling what would otherwise be a large financial transaction into a series of smaller transactions to avoid scrutiny by regulators and law enforcement.

Will there be a flag if one were to wire transfer money as a gift to a parent abroad in the amount of $9K+ because it's under the $10,000 reporting threshold? What if it's just one-time?

I read somewhere that with Structuring there has to be a repeated pattern. So what if in several months I want to transfer a certain sum again under $10K for a different purpose? Or perhaps next give another gift to the same parent? What time frame will they look at for a repeated pattern?
 
Sep 19, 2015
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#3
This is a legal question.

Structuring is done to avoid taxes and reporting on money laundering. You are allowed to give your money away and only US residents have to pay income taxes on monetary gifts over a certain amount.

If one is not doing anything illegal one has nothing to worry about. I have received checks and transfers in excess of $10,000 and have no concern with the bank or IRS as I declare my income and am not money laundering, so the bank can fill out as many reports on me as they want.
 
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