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Your assets are as much at real
risk of being lost due to the expanding use of money laundering laws to
justify predatory asset forfeitures as from predatory civil lawsuits. A
primary penalty for money laundering is the forfeiture of any assets
that are alleged to be "involved" in any crime. While initially
intended to punish drug dealers, the law has been expanded to cover
nearly any kind of crime.
Did you know that tax evasion
is subject to money laundering penalties? And proof is not required. A
mere allegation of tax evasion is sufficient to confiscate any assets
that are deemed to be involved in or to be a byproduct of the crime.
Were you aware that the fine
for willful failure to report a foreign bank account on Form TD F
90-22.1 can be as much as $500,000?
Have you heard that law
enforcement persons only need to accuse you of a crime -- including a
misdemeanor -- in order to confiscate your assets?
If you are a lawyer or other
financial advisor, you can be accused of money laundering by providing
services to someone who is merely accused of money laundering. An attorney from San Francisco established an offshore
structure for a client who was later accused of money laundering.
The government also accused the attorney of being part of a "conspiracy" to
launder money.
The attorney was sentenced to five years
imprisonment for his part in a "money laundering conspiracy" in which
he merely was paid ordinary legal fees to set up an offshore structure
for a client who later testified against him in return for a reduced
sentence.
This conviction is likely to be
of great concern to every lawyer who works in the asset protection
field
and in the offshore trust or corporation specialty. It's very
likely
that they will be far more cautious about accepting new clients and
will
require extensive disclosure of a client's history and current
financial affairs before accepting any client who wants to establish an
offshore structure.
Were you aware that your
banker, broker and other financial service providers are required to
file a report with the government if you engage in any "suspicious
activity"? The clerks at the local bank are not only subject to
punitive
actions if they fail to report a suspicious activity; they can be
rewarded with a percentage of any assets seized as a result of the
reports that they file. Here's a provocative observation by the
Sovereign Society A-Letter.
Headed for your bank today?
Try a bit of introspection first. Ask yourself: "Am I acting like a
money launderer?" Your banker, broker or investment advisor may be
watching you and your account for "suspicious activity." They may even
get a reward if they turn you in.
Most people believe that civil
forfeitures only happen to criminals like drug dealers. However, more
and more innocent people are having their assets plundered by our
government officials without even the benefit of a trial. Any of us can
be sued for any number of civil rights violations, but the government
is generally immune from having to comply with their own laws. Here are
two examples presented in the form of a classified ad by the ACLU.
- House for Sale: Beautiful
Colonial home, four bedroom, three bath. Stolen from an elderly couple
by the United States government because drugs were in their grandson's
room. Though the grandparents were never arrested or convicted, the
government seized their home, sold it and kept the proceeds. All
without a trial.
Car for Sale: 500SL Luxury Sport
Coupe. Its performance is unmatched on the highway: unless you're black
and driving on some interstates. Then you could be pulled over and
searched by state troopers for fitting a drug courier profile. (And the
car can be confiscated by the police.)
Report Outline
A Very Brief History of
Money Laundering Laws
- The Racketeering and Corrupt Organization Act (1970)
- The Bank Secrecy Act (1970)
- The Comprehensive Forfeiture Act (1984)
- The Money Laundering Control Act of 1986
- The "Money Laundering and Financial Crimes Strategy Act of
1998
This report also describes
- Money Laundering Penalties
- Weapons against Promoters
and Advisors
- Suspicious Activity
Reports
- Required Information
Returns
- Forfeiture Reform Efforts
- How to Protect yourself
and Your Assets
- Research Resources
This report is included
in the Offshore Press on-line library of Wealth
Protection Reports .
The 29 page printed report is $28.00.
The e-book edition is only $15.00.
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