It now appears that my governor (a term that still applies for the moment) may have given rise to the initiation of federal attention because of his “unusual currency transactions.” Thus, an opportunity arises to talk about the unintended consequences of the development of money laundering in America. No, this will not be a law review article, so don’t ask for string cites.
There was a time when people reached in their pockets and pulled out something called “paper money” to pay for things. This was considered normal. It was not viewed as criminal conduct; Indeed, it was a rather prudent course because people didn’t spend more than they had in their pocket.
This presented a dilemma for the watchdogs of American morality. How could they know where the money was coming from or going to? Such archaic transactions precluded those who held themselves as our moral saviors from peeking into our wallets to make sure that you, me, Spitzer, weren’t being bad.
The idea was sold publicly that this was needed to assure that criminal proceeds would be identified and that the taxes levied were collected. A presumption was crafted we should all use our money in a fashion that the moral arbiters deemed appropriate. This was the way they acted, and therefore was the only “right” way for the rest of us to behave. Only criminals would do otherwise.
So a system developed that allowed our government to keep tabs on all its citizens and visitors to make sure that we weren’t spending our money in a way that displeased the morality police. It was not enough that you earned your money lawfully. It was not enough that you paid every penny of taxes due. It became the manner in which money was spent, because money used in a way that displeased the moral arbiters could be indicative of unlawful conduct.
This notion was unacceptable. It offended the sensibilities of those who needed to know what we did in private. They could not bear to have us spend our money without their oversight. They enlisted the banks in their cause, with the fist in the iron glove. The IRS was only to happy to create forms to assure compliance. Rules were set in place that presumed a free society to be a criminal society. We were required, upon pain of imprisonment, to disclose our finances to border guards, bank tellers and grocery clerks. We were presumed, by our very own government, to be criminals unless we proved otherwise.
This has been a very effective measure in the war against crime. If there is any doubt, Governor Spitzer will disavow you of the notion. But it has also been a very big step toward Big Brother. I remember an America where people could travel from one side to the other without having to show identification to anyone. I remember an America where people could spend their lawfully earned money in currency without having to fill out a form or explain it to a government employee’s satisfaction.
We have become a nation run by grocery clerks with checklists. An elite cadre of moralists have taken paternal control, and we have happily handed our personal choices over to them because they have promised us safety and security in exchange.
New York Governor Eliot Spitzer has been caught and disgraced as a result of our government’s deep involvement in personal spending. Do you feel safer knowing this? Has the trade-off been worth it for you?
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Eliot Smurfer
The Money Laundering Control Act of 1986 was meant to criminalize the practice of “smurfing”, or evading reporting requirements on the transfer of large sums of cash by breaking the sums down into transactions below…
Eliot Smurfer
The Money Laundering Control Act of 1986 was meant to criminalize the practice of “smurfing”, or evading reporting requirements on the transfer of large sums of cash by breaking the sums down into transactions below…
Eliot Smurfer
The Money Laundering Control Act of 1986 was meant to criminalize the practice of “smurfing”, or evading reporting requirements on the transfer of large sums of cash by breaking the sums down into transactions below…
Scott, any chance you could explain to us non-lawyers what a money laundering charge means? What does it mean when they accuse him of “structuring.”
The money laundering laws were supposed to be about tracking criminal proceeds, but Spitzer’s money isn’t the result of a crime. Can they get someone for money laundering just because the money was used in connection with a crime? Or has the law degenerated to the point where it’s simply illegal to handle cash in certain ways, even if there’s no other crime?
Quick and dirty explanation is that money laundering is the use of cash or cash substitute instruments (such as money orders) to conceal the source of funds derived from unlawful activity, failure to complete reporting requirements (unusual currency transaction, 8300, payments in amounts of $10,000).
Structuring, colloquially known as “smurfing”, is breaking up payments into amounts the fall below $10,000 in order to avoid the IRS reporting requirements.
Some of the crimes relate to the source of the funds while others are crimes because of the evasion of the reporting requirements, even if the money is squeaky clean.
Eliot Smurfer
The Money Laundering Control Act of 1986 was meant to criminalize the practice of “smurfing”, or evading reporting requirements on the transfer of large sums of cash by breaking the sums down into transactions below…