How An Obscure Banking Law Let IRS Seize Bank Accounts From Innocent Americans
By Nick Sibilla, July 17, 2015 Forbes
With only $3,000 in his pocket, Ken Quran left his life as a firefighter near Ramallah to start his own business in Greenville, North Carolina. Over the next 17 years, Ken worked 70-hour weeks at his convenience store, eventually scrimping and saving over $150,000 as a nest egg for retirement. During this time, Ken, his wife and their four children even became American citizens.
But his American dream has become a legal nightmare. Last summer, the IRS seized Ken’s entire bank account for “structuring” withdrawals. Under the Bank Secrecy Act, enacted by Congress to combat money laundering, banks must report all deposits, withdrawals and other cash transactions over $10,000. Meanwhile, the Act also bans “structuring” transactions in amounts under $10,000 to avoid filing those reports, but only if someone deliberately intends to evade filing. Ken had no idea withdrawing cash from his own account could run afoul of the government.
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