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Criminal Resource Manual

2165. Jury Instruction -- Avoiding A Reporting Requirement (8300) -- 18 U.S.C. 1956(a)(3)(C)

The defendant has been charged with violating 18 U.S.C. §  1956(a)(3)(c) which requires knowledge that the transaction or attempted transaction was designed in whole or in part to avoid a transaction reporting requirement under [state] or [federal] law. In this case, defendant is charged with engaging in a transaction knowing that such transaction was designed in whole or in part to avoid the 8300 reporting requirement of federal law.

You are instructed that Title 26, U.S.C. § 6050I, and its implementing regulations, provide in pertinent part that each person engaged in a trade or business who, in the course of such trade or business, receives currency in excess of $10,000 in a single transaction or in two or more related transactions -- to file a report with the Internal Revenue Service. A transaction includes, but is not limited to, a sale of goods or services; a sale of real property; a sale of intangible property; a rental of real property or personal property; an exchange of cash for other cash; the establishment or maintenance of or contribution to a custodial, trust, or escrow arrangement; a payment of pre-existing debt; a conversion of cash to a negotiable instrument; or the making or repayment of a loan. You are [reminded/instructed] that a [describe particular trade or business] is a trade or business within the meaning of § 162 of the Internal Revenue Code.

Proof that the defendant knew the purpose of the financial transaction or attempted financial transaction was to conceal or disguise the nature, location, source, ownership or control of the proceeds of specified unlawful activity may be established by proof that a [law enforcement officer] or [any other person at the direction of, or with the approval of a federal official authorized to investigate or prosecute violation of this section] represented that the property involved in the financial transaction or attempted financial transaction was [the proceeds of specified unlawful activity] or [property used to conduct or to facilitate specified unlawful activity].

The defendant's subsequent statements or actions should be considered in determining whether the defendant believed such representations to be true. Such proof may consist of circumstantial evidence. For example, a person who intentionally subdivides a lump sum of money into smaller amounts under the $10,000 reporting requirement for no legitimate business reason, could be said to have known that this was done for the purpose of avoiding the reporting requirement.

In this case, it is the government's theory that the defendant engaged in the financial transaction[s]: (specify financial transactions alleged in the indictment) knowing that they were designed in whole or in part to avoid the 8300 reporting requirement because: (state theory under which knowledge will be proven).

Title 18, U.S.C. § 1956(a)(3)(C)

Title 31, C.F.R. § 103.22

Title 26, U.S.C. § 6050I

Title 26, C.F.R. § l.6050I-1T

Granted ____

Denied ____