Failure to File Currency Transaction Report - Federal Charges
You run a cash-heavy business. Maybe a restaurant. A car wash. A convenience store. You make deposits regularly - and somewhere along the way, you started keeping them under $10,000. Seemed easier. Less paperwork. The bank doesn't ask questions. Nobody bothers you.
That decision to avoid paperwork IS the federal crime.
The $10,000 reporting threshold has been in place since 1972. It has never been adjusted for inflation. But the federal government's ability to detect patterns of deposits just below that threshold has exploded. FinCEN now processes over one million Currency Transaction Reports annually through AI-powered pattern detection. And they're looking for exactly what you've been doing. The penalties are brutal - up to 10 years in federal prison for structuring, even when every dollar you deposited was legally earned.
Welcome to Spodek Law Group. We handle federal Bank Secrecy Act defense, including Currency Transaction Report violations and structuring charges. If you've received contact from FinCEN, the IRS Criminal Investigation division, or federal agents asking about your deposit patterns - this article explains exactly what you're facing and what options might still exist.
The $10,000 Threshold That Hasn't Changed Since Nixon
In 1972, the Treasury Department set the reporting threshold for cash transactions at $10,000. Banks must file a Currency Transaction Report for any transaction exceeding that amount. The report goes to FinCEN - the Financial Crimes Enforcement Network - and becomes part of a federal database.
That threshold has never been adjusted. According to a GAO report, if the 1972 threshold had been adjusted for inflation, it would be aproximately $72,880 in 2023. But the law still says $10,000.
So what happens when people try to avoid that threshold?
In 1994, Congress made structuring - the act of breaking up transactions to stay under $10,000 - a federal felony under 31 U.S.C. § 5324. But there was a catch. The Supreme Court ruled in Ratzlaf v. United States that prosecutors had to prove the defendant knew structuring was illegal - not just that they were trying to avoid the reporting.
Congress didnt like that. They removed the "willfulness" requirement that same year. Now prosecutors only need to prove you acted "for the purpose of evading" the reporting requirement. They dont need to prove you knew evading was a crime. You can be convicted for structuring your own legitimate money if a jury believes you were trying to avoid the $10,000 trigger.
The detection capabilities have grown exponentially. FinCEN's 2025 border operation reviewed over 1 million Currency Transaction Reports and 87,000 Suspicious Activity Reports to flag more than 100 money services businesses for examination. Six notices of investigation. Dozens of IRS referrals. Over 50 compliance letters. The algorithm sees patterns you dont even realize your creating.
Why Clean Money Still Sends You to Prison
The question everyone asks when they first learn about structuring charges: "But the money is legitimate - that can't be illegal, right?"
Wrong.
A Texas retailer learned this the hard way. He made multiple $9,000 deposits over several months. The money came from legitimate sales. Nothing criminal about the source. When investigators questioned him, he admitted he "didn't want to deal with IRS paperwork." The result: criminal fine and forfeiture of over $200,000. All from deposits of money he earned legally.
Heres the part nobody explains clearly. 31 U.S.C. § 5324 makes structuring itself the crime. The source of the funds is irrelevant to the charge. Your running a legitimate business doesnt protect you. Your paying taxes on every dollar doesnt protect you. The act of trying to avoid the reporting threshold - thats the federal felony.
Consider what happened to TD Bank in October 2024. FinCEN assessed a record $1.3 billion penalty - the largest in U.S. Treasury history. TD Bank is among the largest banks in the country. They have compliance departments. They have lawyers. They have resources most small businesses can only dream about. And they still "willfully failed" to implement adequate anti-money laundering programs.
If a major bank cant navigate BSA compliance successfully, what chance does a cash business owner have navigating these waters alone?
The penalty structure makes it worse. Structure less than $100,000 in a twelve-month period and your looking at up to 5 years in federal prison - a Class E felony. Structure more than $100,000 OR connect the structuring to any other federal offense, and the maximum jumps to 10 years - Class D felony. The penalties dont scale with whether the money was clean or dirty. They scale with amount and connection to other charges.
How Federal Agents Actually Catch Structuring
Banks dont just file CTRs. They also file Suspicious Activity Reports when they suspect structuring. And pattern detection has become automated.
Eric Powers operated as a peer-to-peer bitcoin exchanger. He conducted approximately 150 transactions over $10,000 - purchasing around $5 million in bitcoin through in-person cash deals. He filed zero Currency Transaction Reports. FinCEN caught him through pattern analysis.
Powers probably didnt realize he was operating as a money services business. Many people in the crypto space dont. But the BSA applies to anyone who exchanges currency in amounts exceeding $1,000 per person per day. Powers paid a $35,350 civil penalty. He also forfeited $100,000 in other agency actions. And 237.53 bitcoin. All because he didnt know the rules applied to him.
This is were many cash business owners find themselves. They dont know they might be operating an unregistered money services business. They dont know the bank is filing SARs on their deposit patterns. They dont know FinCEN's algorithms are flagging their activity.
And heres the consequence nobody warns you about: civil forfeiture happens BEFORE conviction. The Bank Secrecy Act gives the IRS authority to seize assets of those who structure transactions - even while the criminal case is pending. You can lose your money before you ever see a courtroom.
What to Do If Your Under Investigation
The first thing to understand: "I didn't know" is not a defense after the 1994 amendments. But proving lack of purpose to evade reporting IS potentially a defense. Theres a difference.
Consider the organized retail theft case documented in FinCEN's case examples. The defendant testified he was unaware of his CTR obligations. Seemed like a reasonable position. But an IRS examiner testified he recalled specifically instructing the defendant on BSA procedures. The "innocent mistake" defense collapsed. He faced 5-9 years and $4.8 million in forfeitures.
If you're under investigation or concerned you might be:
- Stop the deposit pattern immediately. Every new structured transaction is a new charge.
- Do not destroy any records. Document destruction becomes a separate obstruction charge.
- Do not discuss the investigation with bank employees. Those conversations can be used as evidence.
- Contact a federal defense attorney before speaking with any investigators. Your statements can and will be used against you.
The critical question in most cases is whether this is still at the civil penalty stage or has become a criminal prosecution. Theres often a window - similar to other federal financial investigations - where civil resolution may be possible. Repayment, penalty, and compliance going forward. Once criminal charges are filed, that window closes.
Todd Spodek has handled Bank Secrecy Act cases and understands the difference between a FinCEN civil enforcement action and an IRS Criminal Investigation referral. The strategy changes completely depending on which track you're on.
When Your Ready
If you're facing questions about your cash deposits, CTR obligations, or structuring allegations - Spodek Law Group can help you understand where you stand.
The consultation is free. Theirs no obligation.
What you'll get is an honest assessment. Is this still civil or has it gone criminal? What does the evidence pattern look like? Is there still time to negotiate a resolution that doesnt involve federal prison? We dont promise outcomes - we give you realistic expectations based on how these cases actually play out.
Call us at 212-300-5196. The federal government has been building its pattern-detection capabilities for years. The $10,000 threshold from 1972 hasnt changed, but everything about how they catch violations has. The earlier you have counsel, the more options exist.
Were here when you need us.
