31 USC § 5324 – Prohibition on Structuring Financial Transactions to Evade Reporting Requirements –
31 U.S.C. § 5324 is a federal law barring the structuring of transactions to avoid mandatory financial reporting requirements. The statute makes it unlawful for any person to structure, assist in structuring, or attempt to structure financial transactions to evade various reporting or record-keeping mandates. The law covers three types of transactions:
- Domestic Financial Institution Transactions.
It’s illegal to cause or attempt to cause a bank or similar institution to:
- Not file a required report,
- File a report with material omissions or false statements, or
- Engage in structured transactions designed to avoid reporting.
- Non-Financial Trade or Business Transactions
- The same prohibition applies to non-financial businesses subject to reporting rules—for example, breaking up a large cash payment to avoid Form 8300 requirements.
- International Monetary Instruments
- It’s also unlawful to structure or facilitate the structuring of monetary instruments being imported into or exported from the U.S., in order to avoid reporting obligations.
Penalties for 31 USC § 5324 Structuring Violations
A violation of 31 U.S.C. § 5324 involving less than $100,000 in illegal activity within a 12-month period is a Class E federal felony punished by up to 5 years in prison with 1 additional year of supervised release, up to 5 years of probation, and up to a $250,000 fine.
If the structuring is part of a scheme involving more than $100,000 in illegal activity within a 12-month period—or if it’s tied to another criminal offense—the offense is elevated to a Class D federal felony punished by up to 10 years in prison with 3 additional years of supervised release, up to 5 years of probation, and up to a $250,000 fine.
