Money laundering is the process of disguising criminal proceeds and may include the movement of clean money through the United States with the intent to commit a crime in the future (e.g., terrorism). Common methods include disguising the source of the proceeds; changing the form of the proceeds; or moving the proceeds to a place where the proceeds are less likely to attract attention. The object of money laundering is ultimately to get the proceeds back to the individual who generated them. Money laundering is a necessary consequence of almost all profit generating crimes and can occur almost anywhere in the world. Money laundering is a threat to the United States tax system in that taxable illegal source proceeds go undetected along with some taxable legal source proceeds from tax evasion schemes. Both schemes use nominees, currency, multiple bank accounts, wire transfers, and international tax havens to avoid detection. This untaxed underground economy ultimately erodes public confidence in the tax system.

The National Money Laundering Strategy, established by the Secretary of the Treasury and the Attorney General, describes the goals, objectives and priorities for combating money laundering, terrorism and related financial crimes. Tax and money laundering violations are closely related and the Internal Revenue Service (IRS) has used the money laundering statutes to combat tax evasion.

The other operating divisions of the IRS coordinate to review data collected in compliance with the requirements of the money laundering statutes and Title 31 Bank Secrecy Act (BSA).

CI enforces the money laundering statutes relative to legal source income tax crimes (i.e., abusive trusts, offshore tax evasion schemes and corporate evasion schemes); large scale narcotics crimes (through the Organized Crime and Drug Enforcement Task Force (OCDETF) program); and non-narcotics illegal income tax crimes (i.e., illegal gambling and bankruptcy fraud). CI is also responsible for enforcing the BSA statutes under Title 31. BSA information includes Currency Transaction Reports (CTR), and Suspicious Activity Reports (SAR), Reports of Cash Payments Over $10,000 Received in a Trade or Business (Form 8300), Reports of Foreign Bank and Financial Accounts (FBAR), Registration of Money Services Business (RMSB) and Report of International Transportation of Currency and Monetary Instrument (CMIR). The Internal Revenue Code (IRC) in Title 26 also contains reporting requirements on a Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Money laundering activity may violate 18 USC 1956, 18 USC 1957, 18 USC 1960, and provisions of Title 31, and 26 USC 6050I of the United States Code (USC). This section will discuss only those money laundering and currency violations under the jurisdiction of IRS-CI. This section will cover:

Money laundering statutes apply to transactions occurring after the completion of the underlying criminal offense. The same transaction cannot be both a money laundering offense and the underlying specified unlawful activity (SUA) that generated the funds being laundered. For example, the initial drug deal between buyer and seller is not a transaction involving SUA proceeds because money exchanged for drugs is not proceeds at the time the exchange took place (US v. Puig-Infante, 19 F.3d 929 (5th Cir. 1994)).

See IRM 9.1.2, Authority for the delegated authority relating to 9.5.5, Money Laundering and Currency Crimes.

The Director, Financial Crimes is responsible for developing, maintaining, and overseeing this IRM and ensuring compliance with current policies and procedures.

The Director, Financial Crimes:

The Director, Financial Crimes will review the instructions and guidelines relating to the investigation of tax returns and other IRS documents for procedural, operational, and editorial changes.

The table lists commonly used acronyms and their definitions:

IRM 1.2.2, Delegations of Authority (Delegation Order 25-5).

IRM 9.3.1, Disclosure.

IRM 9.4.1, Investigation Initiation.

IRM 9.4.2, Sources of Information.

IRM 9.4.4, Requests for Information.

IRM 9.4.13, Financial Investigative Task Force.

IRM 9.5.2, Grand Jury Investigations.

IRM 9.5.13, Civil Considerations.

IRM 9.5.14, Closing Procedures.

IRM 9.7, Asset Seizure and Forfeiture.

IRM 11.3.22, Disclosure of Official Information, Disclosure to Certain Federal Officers and Employees for Purposes of Tax Administration under IRC 6103(h).

IRM 25.5, Summons Handbook.

LEM 9.14.1, Criminal Investigation Official Use Only Procedures.

Title 18 USC 1956 is the basic Title 18 money laundering offense. It has three specific parts. They are:

The criminal penalty for a violation of 18 USC 1956(a)(1) and (2) is a fine of up to $500,000 or twice the value of the monetary instruments involved, whichever is greater, or imprisonment of up to 20 years, or both; and for a violation of 18 USC 1956(a)(3) an undetermined fine, or imprisonment of up to 20 years, or both.

Title 18 USC 1956(b) provides that violators under 18 USC 1956(a)(1) or (2) are also liable for a civil penalty of not more than the greater of the value of the property, funds, or monetary instruments involved in the transaction, or $10,000. The civil penalty is intended to be imposed in addition to any criminal fine.

The Federal Deposit Insurance Act provides that individuals convicted of 18 USC 1956, or conspiracy to do so, shall be precluded from all affiliation with an Federal Deposit Insurance Company (FDIC) insured institution, including employment or ownership, for a minimum of 10 years from the date of conviction.

Title 18 USC 1956(h) and 18 USC 1957 do not carry corresponding civil penalties.

Title 18 USC 1957 prohibits an actual or an attempted monetary transaction of over $10,000 in SUA proceeds.

To prove a violation of 18 USC 1957, the government must prove:

The statute does not require that these funds be used for any additional criminal purpose or that the defendant engage in the transaction with any specific intent. Simply spending the proceeds violates this statute.

This statute applies not only of a person who engages in a monetary transaction with a financial institution knowing the cash is criminal proceeds, but also to a financial institution employee who accepts cash knowing it is criminal proceeds. An individual who initiates and then benefits from a transaction that was effected by another individual or entity, can be charged with the direct charge or as an aider and abettor, e.g., a person who uses nominees to purchase real estate.

The DOJ Money Laundering and Asset Recovery Section (MLARS) must approve any prosecution of an attorney under 18 USC 1957 for the receipt and deposit of funds allegedly derived from a SUA.

Title 18 USC 1957 is the equivalent of a financial transaction offense under 1956(a)(1) except that the specific intent requirements are replaced by the requirement that the (monetary) transaction involve an amount over $10,000 and a financial institution as defined in 18 USC 1956. Title 18 USC 1956(a)(1) requires proof of a particular purpose or knowledge (e.g. intent to promote an SUA), whereas 18 USC 1957 does not.

The criminal penalty for a violation of 18 USC 1957 is a fine in accordance with 18 USC 3571 – 18 USC 3574 (or up to twice the amount of the criminally derived property involved in the transaction), up to 10 years imprisonment, or both.

Title 18 USC 1957 does not carry corresponding civil penalties.

Effective October 26, 2001, 18 USC 1960 was revised to relax the scienter requirement and broaden the scope of the statute to a "general intent" crime. It is now an offense for anyone to knowingly conduct any unlicensed money transmitting business, whether or not the defendant knew that the operation was required to be licensed or that operation without a license was a criminal offense. The proceeds of illegal money transmitting businesses are subject to both civil and criminal forfeiture to under 18 USC 981(a)(1)(A) and 18 USC 982(a)(1).

The criminal penalty for a violation of 18 USC 1960 is a fine in accordance with 18 USC 3571–18 USC 3574, up to five years imprisonment, or both.

A person who violates this offense knowingly conducts, controls, manages, supervises, directs or owns all or part of an unlicensed money transmitting business by:

The term "money transmitting" includes transferring funds on behalf of the public by any and all means including, but not limited to transfers within the country, or to locations abroad by wire, check, draft, facsimile, or courier.

The term "State" means by any state of the United States, and the District of Columbia, the Northern Mariana Islands, and any commonwealth, territory, or possession of the United States.

"Money transmitting businesses" and "money services businesses" are terms used by Title 31 and the regulations implementing the registration requirements, respectively. These terms should be understood to encompass the same array of businesses. There are five classes of financial institutions referred to as MSBs:

Title 18 USC 1960 (b)(2) defines "money transmitting" to include "transferring funds on behalf of the public by any and all means including but not limited to transfers within this or to locations abroad by wire, check, draft, facsimile or courier ...." It is not clear that check cashers and currency exchanges meet this definition for purposes of a prosecution under 18 USC 1960. The DOJ, Asset Forfeiture and Money Laundering Section advises against prosecution of check cashers and currency exchanges under 18 USC 1960.

On August 20, 1999, the Department of the Treasury issued a final rule concerning application of the BSA to MSBs. The rule (i) revises the definition of certain businesses for BSA purposes, and (ii) requires MSBs to register with the Department of the Treasury and maintain a list of its agents as required under 31 USC 5330. Under the final rule, MSBs must register with the Department of the Treasury by filing the form that FinCEN specifies with the IRS Detroit Computing Center (or such other location as the form may specify) and renew their registration every two years. The information required by 31 USC 5330(b) and any other information required by the form must be reported in the manner and to the extent required by the form.

Money services businesses must maintain a list of their agents, available to any appropriate law enforcement agency upon request, and update the list annually. The following information must be included on the list of agents:

Agents of MSBs are not required to register or keep a list of their own agents if they are MSBs solely because they serve as agents of other MSBs. Thus, a person that engages in MSB activities both on its own behalf and as an agent for others must register. For example, a supermarket corporation that acts as an agent for an issuer of money orders and performs no other services of a nature and value that would cause the corporation to be an MSB, is not required to register. However, registration would be required if the supermarket corporation, in addition to acting as an agent of an issuer of money orders, cashed checks or exchanged currencies (other than as an agent for another business) in an amount greater than $1,000 in currency or monetary or other instruments for any person on any day, in one or more transactions.

Any person failing to comply with the registration or agent list requirement may be subject to criminal prosecution and may be assessed a civil penalty of $5,000 for each violation. Each day during which a violation occurs constitutes a separate violation. In addition, the Secretary of the Treasury may bring a civil action to enjoin the continued violation.

On October 26, 2001, the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 created the requirement that all MSBs report suspicious activities detected as of January 1, 2002.

On October 1, 1998, the Identity Theft and Assumption Deterrence Act of 1998 went into effect. The Act amended 18 USC 1028 by, among other things, adding Section (a)(7) which establishes an offense for anyone who knowingly, transfers, possesses, or uses without lawful authority another person's means of identification with the intent to commit or aid or abet any unlawful activity that constitutes a violation of Federal law or a felony under any applicable state or local law.

Title 18 USC 1028, fraud and related activity in connection with identification documents and information, under Sections (a)(1)-(6) contain other provisions making it an offense to:

The term "means of identification" includes any name or number used alone or in conjunction with any other information to identify a specific individual.

Identity theft violations should only be utilized when it enhances the overall investigative strategy. It is not intended to be a stand-alone violation, but to assist in enhancing the investigation of Questionable Refund Program (QRP) and money laundering schemes. This violation can be charged in conjunction with money laundering violations or separately if there is insufficient evidence to support a money laundering charge. For example, during a money laundering investigation involving heath care fraud, evidence of 18 USC 1028 or 18 USC 1028A are developed. Both money laundering and identity fraud charges may be charged. If the money laundering evidence is insufficient, the identity theft charges may still be recommended against the supplier of the fraudulent identities when no financial nexus exists in the underlying fraud scheme.

Civil and criminal forfeiture provisions may be applicable in money laundering investigations involving 18 USC 1028 and 18 USC 1028A under 18 USC 981(a)(1)(C) and 18 USC 982(a)(2), respectively. However, no forfeiture provisions are applicable if the identity fraud violations are directly linked to the investigation of a substantive tax charge (absent extraordinary and compelling circumstances).

Special agents should consult with Criminal Tax (CT) Counsel, DOJ, Tax Division and the attorney for the government early in the investigation when contemplating recommendation of these violations. A recommendation of 18 USC 1028 and 18 USC 1028A directly linked to a substantive tax violation will be reviewed by DOJ, Tax Division.

See 18 USC 1028 and 18 USC 1028A for additional definitions of key terms relative to this statute and applicable fines and terms of imprisonment. The offense penalties vary depending on the intent and associated criminal activity.

If an allegation of possible Title 31 violations committed by a financial institution is received, either by referral from the Department of the Treasury, by investigative development, or otherwise, the following procedures must be followed if the field office desires to obtain jurisdiction to conduct an investigation:

When authorization is approved, SE:CI:GO will notify the Assistant Director, Regulatory Policy and Programs Division of Financial Crimes Enforcement Network (FinCEN), and the regulatory agency that governs the financial institution involved.

The authorization to conduct the investigation will expire in 120 days. If, at the end of 120 days a primary investigation (PI) is not elevated to a subject criminal investigation (SCI), and CI wants to continue the investigation, the authorization must be renewed. If an SCI(s) is numbered, then the authorization will be in effect until the conclusion of the criminal investigation.

It is not necessary to number an investigation of a bank as a corporate entity in order to obtain jurisdiction. Jurisdiction is for the purpose of conducting a criminal investigation of possible Title 31 violations committed by the financial institution, or by any of its current or former officers. It is not necessary to make an additional request for jurisdiction of additional officers of the same financial institution if they are later identified as possible violators. However, a grand jury expansion request will be prepared and submitted.

When CI determines that civil penalties are warranted against a financial institution, a detailed report will be submitted to the Chief, CI, for compliance coordination with the Assistant Director, Regulatory Policy and Programs Division at FinCEN. The report will identify the financial institution and each partner, officer, director, or employee against whom the penalty recommendation is made (see IRM 9.5.13, Civil Considerations).

Reports for civil penalty recommendations will consist of the following information (IRM 9.5.14, Closing Procedures):

The attorney for the government and the Assistant Director, Regulatory Policy and Programs Division at FinCEN may decide that the assessment of a civil penalty in a Title 31 investigation is appropriate in lieu of prosecution. Field offices will advise the Chief, CI, of the agreement as soon as an agreement is negotiated. If checks are received from a financial institution as payment for the civil penalties prior to assessment, the checks should be mailed to the Assistant Director, Regulatory Policy and Programs Division at FinCEN, Attn: FinCEN, PO Box 39, Vienna, Va., 22183-0039 with a copy of any court order with respect to the stipulation for settlement. The field should then follow up with a recommendation for civil assessment.

Under the authorization of the SAC, CI has jurisdiction to investigate allegations of violations of Title 31 USC 5324 structuring transactions to evade reporting requirements and Title 31 USC 5332, Bulk Cash Smuggling.

Regarding violations of 31 USC 5324, CI will not pursue the seizure and forfeiture of funds associated solely with “legal source” structuring cases unless there are exceptional circumstances justifying the seizure and forfeiture and the case has been approved at the Director, Field Operations (CI) level.

In cases where legal source income is involved in alleged structuring activity, consideration should be given to initiating a Title 26 criminal tax investigation. In certain circumstances, the structuring activity can be treated as an affirmative act of evasion under 26 USC 7201, evidence of willfulness, an overt act of conspiracy under 18 USC 371, or it may support Title 31 violations.

Title 31 USC 5324(a) prohibits a person from:

Title 31 USC 5324(b) prohibits a person from engaging in any of the following activity:

Title 31 USC 5324(c) prohibits a person from engaging in any of the following activity:

CTRs by Casinos, FBARs, and Forms 8300 must be filed with the Detroit Computing Center or with the local IRS office. Hence, venue involving Title 26 or Title 31 investigations for falsification or omission of those forms is in the Eastern Judicial District of Michigan, in the judicial district where an IRS post-of-duty is located, or in the judicial district where the document was prepared.

Title 31 USC 5332, Bulk Cash Smuggling into or out of the United States, was created by the USA Patriot Act, effective October 26, 2001. CI’s jurisdiction over this offense is limited to investigations where the underlying conduct falls under CI’s jurisdiction in money laundering offenses (18 USC 1956 and 18 USC 1957), Title 26 or Title 31 only. The USA Patriot Act made the act of smuggling in cash or other monetary instruments over $10,000, a criminal offense and authorized forfeiture of the cash or instruments of the smuggling.

Failure to file and filing a false report are predicated on the existence of a transaction (or an aggregate of related transactions) which actually exceeds $10,000 thus triggering the duty to file; whereas acts of structuring may never trigger the reporting requirement because the individual transactions involved may never exceed the threshold amount. Transactions comprising an act of structuring constitute a single offense.

Undercover operations involving possible violations of Title 31 may precede or operate concurrently with a grand jury investigation. It is not necessary to request jurisdiction from the Chief, CI, solely for the purpose of conducting the undercover operation. To protect the existence and confidentiality of the undercover operation, Title 31 jurisdiction should not be requested until the field is ready to proceed to the grand jury stage.

Information in the subsections below discusses Title 31 requirements for specific reports, record keeping, and registration.

Pursuant to 31 USC 5326, as implemented by 31 CFR 1010.370, the Secretary of the Treasury, upon finding reasonable grounds exist for concluding additional recordkeeping and reporting requirements are necessary to carry out the purposes of this subtitle, may target specified financial institutions in a geographic area to submit reports for currency transactions of $10,000 or less for up to 60 days (subject to renewal).

A target request may be made by Federal, state, or local law enforcement agencies or by Department of the Treasury on its own initiative based on discussions within Treasury agencies, other Federal agencies (e.g., DOJ), or by other means.

Target requests by law enforcement agencies must be in writing, signed by the head of the agency, and submitted to the Assistant Director, Regulatory Policy and Programs Division of FinCEN. Internal Revenue Service requests may be initiated at the field office level by memorandum from the SSA to the SAC, and through the Director, SE:CI:GO, to the Chief, CI, for submission to the Assistant Director, Regulatory Policy and Programs Division of FinCEN.

Each target request must include the following information:

Each request will be reviewed by Regulatory Policy and Programs Division of FinCEN for recommendation, through the Deputy Assistant Secretary (Enforcement), to the Assistant Secretary for terrorist financing and financial crimes to approve (with or without modification) or disapprove the request. The Deputy Assistant Secretary will approve requests upon a determination that there is a high degree of money laundering or other criminal activity occurring at or below $10,000 at financial institutions in the target area. The Deputy Assistant Secretary’s decision will be communicated in writing to the requesting agency.

If the Deputy Assistant Secretary for terrorist financing and financial crimes concurs with the request, the Regulatory Policy and Programs Division at FinCEN will prepare a targeting order signed by the Assistant Secretary or his/her designee. The Regulatory Policy and Programs Division at FinCEN will issue a tasking memorandum to each needed agency for assistance to carry out the targeting order. For example, FinCEN may be tasked to receive the information, to perform analyses, and to notify designated agencies of the results. The Commissioners of the IRS and Assistant Secretary, ICE, may be tasked to provide agents for field operations, including on-site analysis of the reported information. Tasked agencies will be expected to commit sufficient resources throughout a targeting operation.

The Regulatory Policy and Programs Division at FinCEN will brief offices with a need to know of the targeting order, e.g., DOJ, the affected US Attorney or State Attorney General, bank examiners, etc. FinCEN will direct service of the targeting order to the Chief Executive Officers of the selected financial institutions in person or by registered mail.

CTRs for amounts of $10,000 or less will not be sent to the IRS Detroit Computing Center, but to a centralized location specified in the targeting order. After processing at the centralized location or at a transaction center, an analysis of the reports or a hard copy output will be sent to the tasked agencies for analysis and other law enforcement use.

Reports normally required to be filed without a Geographic Targeting Order, e.g., CTRs (FinCEN 104), must continue to be filed with the Detroit Computing Center; however, a targeting order may require copies of those forms along with those specifically required by the order.

Title 31 USC 5326(c) prohibits financial institutions and their officers, employees, and agents from disclosing the existence or terms of targeted currency reporting orders except as prescribed by the Secretary.

Targeting projects may not deviate from the tasking memorandum and overall plan without the written approval of the Deputy Assistant Secretary for Terrorist Financing and Financial Crimes or his/her designee. Modification requests, including early project termination, must be fully detailed. The Regulatory Policy and Programs Division at FinCEN will be the contact office for all targeting order communications.

See IRM 25.5, Summons, for information regarding Title 31 summonses.

The use of a Title 31 summons in a Title 31 related civil forfeiture action is discussed in the Summons Handbook. Notice to a customer whose bank records are being sought by a Title 31 summons can be delayed up to 90 days upon application to a judge or a magistrate judge through a civil US Attorney. Refer to IRM 9.7, Asset Seizure and Forfeiture, for detailed information and procedures concerning asset forfeiture.

Title 26 USC 6050I (effective January 1, 1985) requires any person engaged in a trade or business who in the course of such trade or business receives more than $10,000 in cash in one transaction or two or more related transactions to make a return at such time as the Secretary by regulation prescribes (see 31 USC 5331, 31 USC 5321, 31 USC 5322 and 31 USC 5317).

With the enactment of the USA Patriot Act, the Form 8300 reporting requirement is now imposed under two statutory authorities, Title 26 and Title 31. The requirement to file a Form 8300 with both the IRS and FinCEN applies whenever a trade or business receives cash/currency (see subsection 9.5.5.3.6.1) in excess of $10,000 in a single transaction or two or more related transactions. The difference between the two reporting regimes is minimal and the dual reporting requirement is discharged with the filing of a single form, IRS/FinCEN Form 8300 with the IRS Detroit Computing Center (see subsection 9.5.5.5.4.4 and Disclosure rules under 26 USC 6103 concerning Forms 8300 filed by clerks of the court who receive more than $10,000 in cash as bail). Thus, a Form 8300 violation can result in two criminal violations. The double jeopardy clause, however, prevents multiple or successive prosecutions for the same offense. CT Counsel will assist in determining whether to investigate or prosecute Form 8300 violations under Title 26 or Title 31 according to the circumstances of the investigation.

Factors to consider in choosing to investigate under Title 26 involve the disclosure requirements of 26 USC 6103, the three year statute of limitations under 26 USC 7203 (failure to file/structuring), and six year statute of limitations under 26 USC 7206 (false return). The scienter requirement under Title 26 is willfulness (specific intent) while under Title 31 the requirement is only knowledge (general intent). Additional criminal penalties may also be considered such as:

Investigations recommending prosecution under 26 USC 6050I can be directly referred to the attorney for the government unless the prosecution recommendation relates to:

Under 26 USC 6050I, the statute of limitations for willful failure to file a Form 8300 is three years from the date the Form 8300 should have been filed, i.e., 15 days after the date of a reportable transaction. The statute is increased to six years for the willful making and subscription of a false Form 8300, in violation of 26 USC 7206(1).

In order for a conspiracy under 18 USC 371 or 18 USC 1956(h) to be considered a pure money laundering investigation, the object of the conspiracy must relate to enforcement of 18 USC 1956, 18 USC 1957 or Title 31 rather than Title 26. However, investigations under 18 USC 1956(a)(1)(A)(ii) are, by definition, tax-related.

Potential violations of Title 26 by persons outside of a money laundering investigation, discovered during a pure money laundering investigation, may be segregated and investigated independently of the money laundering investigation. However, if the Title 26 evidence is so interrelated with the money laundering grand jury investigation that it cannot reasonably be segregated, then follow the procedures in Assisting Grand Juries to Obtain Title 26 Grand Jury Information in IRM 9.5.2, Grand Jury Investigations. This section must also be followed if a concurrent income tax and money laundering grand jury investigation is desired.

Money laundering investigations will ordinarily be conducted by the grand jury process. An IRS summons may be used to obtain evidence in a joint Title 26 and 18 USC 1956, 18 USC 1957, or Title 31 administrative investigation. An IRS summons may not be used in pure money laundering investigations (an investigation where a related tax violation is not involved).

Numerous law enforcement databases can be queried for use in money laundering investigations, including Treasury Enforcement Communications System (TECS), Currency and Banking Retrieval System (CBRS), El Paso Intelligence Center (EPIC), and the Fedwire System.

Indications of money laundering violations will be identified from either tax information protected by the disclosure provisions of 26 USC 6103, including returns and return information as defined in 26 USC 6103(b)(1) and (2), or from sources not protected by 26 USC 6103 (see IRM 9.3.1, Disclosure.)

Returns and return information include tax and information returns and other tax information secured from IRS sources/files or developed by the IRS in determining a person’s tax liability. Title 31 reports (CTRs, SAR Forms, FBARs, CMIRs) are generally not returns or return information. However, if a copy of a Title 31 report is used in a tax or tax-related investigation or placed in a tax investigatory file, it will be return information protected by 26 USC 6103 (see IRM 9.3.1, Disclosure).

Forms 8300 filed prior to January 1, 2002, are considered tax returns protected by 26 USC 6103 (see IRM 9.3.1, Disclosure).

Pure Title 18 and Title 31 money laundering investigations are those investigations not involving tax or tax-related violations. Title 31 reports and other information collected by the IRS during the investigation are not protected by 26 USC 6103.

A money laundering investigation under 18 USC 1956(a)(1)(A)(ii) is always tax-related and is never a pure money laundering investigation.

Returns and return information may be accessed to initiate or conduct a money laundering investigation if the investigation is considered tax administration under to 26 USC 6103(b)(4) (see IRM 9.3.1, Disclosure, subsection 9.3.1.4). The key test is whether, under the facts and circumstances of the particular investigation, the money laundering provisions are considered related to the administration of the Internal Revenue laws. This is commonly known as the related statute call (see IRM 9.3.1, Disclosure).

If, after evaluation of Title 31 reports and other information collected during the (initial) investigation, a determination is made to conduct a pure money laundering grand jury investigation (e.g., the related statute test is not met), returns and return information may not be disclosed to Treasury (including IRS) and DOJ employees, except through the ex parte court order provisions of 26 USC 6103(i)(1) (see IRM 9.3.1, Disclosure.)

Title 26 USC 6103(i)(4) ex parte court orders permit tax information obtained under 26 USC 6103(i)(1) and (2) to be used in civil proceedings such as forfeitures. In addition, 26 USC 6103(i)(4) permits the information to be used for 18 USC 981 forfeitures related to the non-tax violations of 18 USC 1956, 18 USC 1957, Title 31 USC 5313(a), or 31 USC 5324(a)(b).

Effective January 1, 2002, Form 8300 is required under both Title 26 and Title 31. Because the IRS enforces both the Internal Revenue laws and the BSA laws, IRS special agents have access to Form 8300 information for investigating potential criminal violations of Title 26 and/or Title 31. Each title has rules governing access and disclosure of information gathered under the respective statutes. The rules under Title 26 strictly limit disclosures, whereas the rules under Title 31 are less restrictive (see IRM 9.3.1, Disclosure.)

The IRS maintains Form 8300 information in two databases, i.e., The CBRS and the Information Return Master File (IRMF). Most, but not all, Forms 8300 information filed after January 1, 2002 and maintained in the CBRS database is designated as information reported under Title 31 and accessible for Title 31 investigative purposes. Forms 8300 information filed before January 1, 2002 and contained in CBRS is considered to have been reported under Title 26 and access and disclosure is governed by 26 USC 6103. All Forms 8300 information maintained and accessed via the IRMF database is considered return information and the access and disclosure of that return information is governed by 26 USC 6103.

IRS special agents must be cognizant of the investigative purpose for which the information is being sought to protect against unauthorized disclosures.

Generally, disclosure limitations for Forms 8300 vary depending on whether the reporting violation is being investigated under 26 USC 6050I or 31 USC 5331 (see IRM 9.3.1, Disclosure.)

Requests for witnesses to testify as to the filing of CTRs, CTRs by Casinos, FBARs, and Forms 8300 should be made to the IRS Detroit Computing Center, Attn: CI Liaison, PO Box 32063, Detroit, MI 48232-0063, (313)234-1077 or (313)234-1613.

All CTRs, CTRs by Casinos, FBARs, and Forms 8300 are processed by the Detroit Computing Center and are indexed on the CBRS and the Treasury Enforcement Communications System (TECS) with the exception that Forms 8300 filed prior to January 1, 2002 are not indexed on TECS. CBRS and TECS should be queried to determine if CTRs, CTRs by Casinos, FBARs and Forms 8300 filed prior to January 1, 2002 were filed for reportable transactions. However, access to these Forms 8300 is bound by 26 USC 6103 rules.

See IRM 9.4.4, Requests for Information, on how to request special computer runs summarizing CTRs by Casinos, copies of CTRs, copies of Forms 8300, copies of CMIRs and copies of special computer runs of FBARs.

The Director, SE:CI:GO, oversees a cadre of money laundering expert witnesses consisting of special agents from each of CI's areas of field operations. These expert witnesses are available to assist the field offices in the prosecution of money laundering and Title 31 investigations and to lecture on money laundering and Title 31 issues at Continuing Professional Education (CPE) and similar events, both internal and external.

Requests for assistance from money laundering expert witnesses will be forwarded by the SAC, located within the judicial district, where the request for assistance originates, to the Director, SE:CI:GO. The request should include a brief summary of the investigation, tentative trial dates and a point of contact. In order to ensure that expert witness testimony can be arranged, requests should be made as soon as it can be reasonably anticipated that expert witness testimony is required in a particular investigation.