Nigel Morris-Cotterill of SILKSCREEN CONSULTING in Essex, England
(www.countermoneylaundering.com) sends the following. about this
and points out the problem Rush Limbaugh had with his drug
addiction and getting money to buy the drugs. I have included an
ABC news report as an example of the US penalties for withdrawing
money or structuring your affairs to avoid having to report. The
report mentions that under FLORIDA STATE LAW, Limbaugh could have
been liable for up to 30 years in jail. A Canadian snowbird
could easily fall prey to this by purposely sending less than
$10,000 at a time. Remember, it is not the amount per se.
$5,000 a month for living expenses is fine. It is "structuring"
your transfers, etc. to be under the threshhold when the intent
is to do so. i.e., why would anyone take out $9,900 instead of
$10,000? Three $5,000 deposits from the same account to another
account to end up with $15,000 in the other account is illegal.
Sending (as one client just did) Four cheques of $9,000 each to
pay a $35,000 down payment for a Vancouver Condo is illegal when
the money all came from one account to a lawyer's account for a
single purpose.
david ingram - Nigel's message follows.
-----------------------------------------------------------------
-----------------
-----Original Message-----
From: CML General [mailto:info at countermoneylaundering.com]
Sent: Thursday, September 02, 2004 5:48 PM
To: taxman at centa.com
Subject: Re: [Cen-tapede] PART II assembling $10, 000 across the
border
- anti money laundering legislation - E667 E677, Form 104, From
105
Foreign Currency reporting
David
It's called structuring and, even if the money is entirely
unconnected
with any criminal activity, it's an offence to take action to
avoid the
requirements to make reports either of cross-border transactions
or of
high value transactions with reporting institutions.
This is at the centre of the Rush Limbaugh case: there is no
allegation
that the money in his bank account was entirely and lawfully
his - but
he took out a series of sums that were below USD10,000. The
allegation
is that this was to avoid cash transaction reporting and is
therefore a
completed offence under US law. There are similar provisions in
Canada.
Regards
Nigel
-------------------------------
I have received over 30 enquiries about the money laundering
tidbit yesterday. People just do not get the seriousness of
playing with these rules and the reporting required.
Authorities Eye Whether Rush Limbaugh Laundered Money Used to Pay
for Drugs
By Brian Ross
ABC NEWS
Nov. 18 - Radio talk show host Rush Limbaugh may have violated
state money-laundering laws in the way he handled the money he
used to buy the prescription drugs to which he was addicted, law
enforcement officials in Florida and New York told ABCNEWS.
A conviction on such charges in Florida would be a first-degree
felony, punishable by up to 30 years in prison.
Limbaugh returned to the airwaves this week after five weeks of
rehabilitation for his admitted addiction to prescription
painkillers.
His lawyer denied today there was any foundation for a
money-laundering prosecution.
"There's no basis for these charges. He has not committed any
acts of money laundering and he absolutely denies it," lawyer Roy
Black told ABCNEWS. "I can assure you - and Rush assures the
listeners to his radio station - when we can, we will tell the
story, and he will tell it himself. Everybody will see what has
really gone on here."
Limbaugh makes an estimated $35 million a year and had no
shortage of legally earned money to the buy the painkillers to
which he became addicted.
Authorities say they became aware two years ago, during an
investigation of New York bank US Trust, that Limbaugh had taken
between 30 and 40 cash withdrawals from his account in amounts
just under $10,000.
Banks must file a report to the government if someone withdraws
more than $10,000 at once.
Limbaugh's lawyers confirm that as part of US Trust's service, a
bank employee personally delivered cash to Limbaugh at his New
York studio in amounts of $9,900 or so.
"That in itself is a suspicious activity: They are structuring
their transaction to avoid reporting to the government, and the
bank is required to file with the federal government something
called a suspicious activity report," said Jack Blum, an expert
on financial crimes.
Limbaugh's lawyers say it was US Trust that suggested the
arrangement. In July 2001 the bank paid a $10 million fine
because of the Limbaugh transactions and many others like it.
Limbaugh's name was not made public at the time but officials
told ABCNEWS details were forwarded to state and federal
investigators in Florida.
"Now the problem will be: Did he then assist his drug supplier in
hiding the proceeds from the government?" said Blum.
Limbaugh's lawyers say he did not do that and that he is being
falsely accused by those who want to force him off the air.
Officials say a decision on whether to prosecute on
money-laundering charges will be made in the next few weeks.
ABCNEWS' Vic Walter and Jill Rackmill contributed to this report.
---------------------------------
centapede at lists.centa.com wrote:
> *//*
> */This last question just gave me an idea for a new question:/*
>
> */What if I bring say $15 000 US into Canada but I do it at
several
> trips and
> every time I carry less then $10 000 (3000-5000)? Any forms to
fill or
> report? Thanks./*
>
> */PxXXXX
> ---------------------------------/*
> */david ingram replies:/*
> *//*
> */Both countries make the transportation of more than $10,000
in
> pieces a crime as well./*
> *//*
> */However, if you were sending a $1,000 a month to a savings
plan or
> something, that would not matter./*
> *//*
> */The crime would be trying to assemble the more than $10,000
in the
> other country when you had the ability to send it all at
once./*
> *//*
> */I.E. You have $25,000 in a bank in Seattle and send $5,000
every
> couple of days until it is all in Canada. /*
> *//*
> */In that case, if your banks spotted what was going on, "they"
would
> report you./*
> *//*
> */The bank will also report when several cheques arrive from
different
> sources and they add up to significant amounts whether the
source is
> from the US or not. This is to stop people from keeping their
money
> in other people's accounts and assembling it when they need
it./*
> *//*
> */All part of anti money laundering legislation./*
> *//*
> */=============/*
> */the original question and answer follows/*
> *//*
> */What forms do I have to fill out if I am transporting more
than
> $10,000 across the Canadian Border/*
> *//*
> */==============================/*
> *//*
> */david ingram replies: The forms are E677 and E667 for
Canada and
> as of September 1, 2004 )today) 104 and 105 for the US if you
are
> bringing the money out of the US into Canada.. /*
> *//*
> */
> */The US bank will report the deposit or withdrawal to the US
FINCEN
> on form 4789 (which is still valid until August 31, 2004) or
more
> likely the new form 104 which you can find
> at: http://www.irs.gov/pub/irs-pdf/ffc104.pdf/*
> *//*
> */When you then move the money to Canada by money order or
check, the
> bank or financial institution will report it again./*
>
> The US penalties for failure to fill in these simple forms is
up to
> $500,000 PLUS 5 years in jail.
>
> */If you remove more than $10,000 at any one time, the bank
will
> report those transactions as well./*
> *//*
> */If you decide to carry the cash or transport it out of the
USA as a
> cashier's cheque, you have to file form 105 (old form 4790).
You can
> find the form at: http://www.irs.gov/pub/irs-pdf/ffc105.pdf/*
> *//*
> /*
> */Canada has moved its forms in the last few days and i had a
devil of
> a time trying to find them. You can find both E677 and E667
below./*
> *//*
> http://www.cbsa-asfc.gc.ca/E/pbg/cf/e677/e677-fill-02b.pdf
> *//*
> */E667 is filled out by yourself and E677 is filled out by the
> financial institution./*
> *//*
> http://www.cbsa-asfc.gc.ca/E/pbg/cf/e667/e667-fill-02b.pdf
> *//*
> */Answers to this and other similar questions can be obtained
free on
> Air every Sunday morning./*
>
> */Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of
> Cartier Partners and I will be hosting an INFOMERCIAL but LIVE
talk
> show called "ITS YOUR MONEY"/*
>
> */Those outside of the Lower Mainland will be able to listen on
the
> internet at/*
>
> */www.600AM.com <http://www.600AM.com> /*
>
> */Local phone calls to (604) 280-0600 - Long distance calls to
> 1-866-778-0600. /*
>
> */Old shows are archived at the site./*
>
> */This from ask an income tax immigration planning and
bankruptcy
> expert consultant guru or preparer from www.centa.com
> <http://www.centa.com> or www.jurock.com
<http://www.jurock.com> or
> www.featureweb.com <http://www.featureweb.com>. Canadian David
Ingram
> deals daily with tax returns dealing with expatriate:
> multi jurisdictional cross and trans border expatriate gambling
> refunds for the United States, Canada Mexico Great Britain the
United
> Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand,
> Indonesia, Egypt, Antarctica, Japan, China, New Zealand,
France,
> Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador,
> Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco,
Israel,
> Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok,
Greenland,
> Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent,
Grenada,,
> Virgin Islands, US, UK, GB, American and Canadian and Mexican
and any
> of the 43 states with state tax returns, etc.
> income tax wizard wizzard guru advisor advisors experts
specialist
> specialists consultants taxmen taxman tax woman planner
planning /*
>
> */preparer of Alaska, Alabama, Arkansas, Arizona,
> California Denver Colorado, Connecticut,
> Delaware District of Columbia Miami Florida,
> Garland Georgia, Honolulu Hawaii, Idaho, Illinois,
> Indiana Des Moines Iowa Kansas Kentucky,
> Louisiana Bangor Maine Maryland Boston, Massachusetts,
Michigan,
> Minnesota,
> Mississippi, Missouri, Montana, Nebraska,
> Nevada, New Hampshire, New Jersey,
> New Mexico,New York, North Carolina,
> North Dakota, Ohio, Oklahoma, Oregon.
> Paris, Rome, Sydney, Australia Hilton
> Pennsylvania, Rhode Island, Rockwall,
> South Carolina, South Dakota, Tennessee,
> Texas, Utah, Vermont, Virginia,
> West Virginia, Wisconsin, Wyoming,
> British Columbia, Alberta, Saskatchewan,
> Manitoba, Ontario, Quebec City,
> New Brunswick, Prince Edward Island,
> Nova Scotia, Newfoundland, Yukon and
> Northwest and Nunavit Territories,
> Mount Vernon, Eumenclaw, Coos Bay
> and Dallas Houston Rockwall Garland
> Texas Taxman and Tax Guru and wizzard
> wizard -/*
>
> */ David Ingram's US/Canada Services
> US/Canada/Mexico Tax Immigration & working Visa Specialists
> US / Canada Real Estate Specialists
> 4466 Prospect Road (Personal residence by appointment only
please)
> North Vancouver, BC, CANADA, V7N 3L7
> Calls accepted from 10 AM to 10 PM 7 days a week
> Res (604) 980-3578 Cell (604) 657-8451
> Bus (604) 980-0321 Fax (604) 980- 0325
> davidingram at shaw.ca <mailto:davidingram at shaw.ca>
www.david-ingram.com
> <http://www.david-ingram.com>/*
>
> */Disclaimer: This question has been answered without detailed
> information or consultation and is to be regarded only as
general
> comment. Nothing in this message is or should be construed as
advice
> in any particular circumstances. No contract exists between the
reader
> & the author and any and all non-contractual duties are
expressly
> denied. All readers should obtain formal advice from a
competent
> financial, or real estate planner or advisor & appropriately
qualified
> legal practitioner, tax or immigration specialist in connection
with
> personal or business affairs such as at www.centa.com
> <http://www.centa.com>. /*
> *//*
> *//*
> *//*
>
>----------------------------------------------------------------
--------
>
>----------------------------------------------------------------
-
>List-Unsubscribe:
<http://lists.centa.com/mailman/listinfo/centapede>,
<mailto:centapede-request at lists.centa.com?subject=unsubscribe>
>
---
Incoming mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.747 / Virus Database: 499 - Release Date: 9/1/04
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.747 / Virus Database: 499 - Release Date: 9/1/04
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20040903/afea43dc/attachment.htm
What's Related