Question

In the Bank of New England Case, the Supreme Court determined that the Bank violated the currency transaction provisions of the Bank Secrecy Act because the Bank's customer, McDonough:

Select one:

a. made a single cash deposit of more than $5,000 and less that $10,000 on 31 different business days

b. violated the anti-structuring provisions of the Act

c. made multiple cash deposits each less than $10,000 but that totaled more than $10,000 on the same business day

d. bribed the tellers, Orlandella and Murphy, so they wouldn't file a currency transaction report

Answer 1

Violated the anti-structuring provisions of the Act. (which is Option B)

_____

Explanation:

Option A and Option C are incorrect because McDonough made cash withdrawals through multiple transactions of smaller amounts (less than $10,000) and not cash deposits. Option D is incorrect because the bank was held liable for not reporting "Structured" transactions (by McDonough) to evade the CTR regulations prescribed by Bank Secrecy Act. As per the regulations of the act, a bank is required to file a CTR for cash transactions (whether deposits or withdrawals) in excess of $10,000 (such a report is required to be filed even when multiple transactions of smaller amounts to break the amount of $10,000 are made by the customer/client) in order to prevent money laundering. In the given case, bank failed to meet the requirement as it didn't club the multiple transactions made by McDonough (which resulted in withdrawals in excess of $10,000).