19

Money Laundering The primary crime that you have described is called money laundering. Note that money laundering includes: "structuring financial transactions in order to evade reporting requirements." Unlike some other forms of money laundering, this does not require that the source of the funds be criminal, or that the actual transfer be ...


13

I have submitted a false tax return Provided it really is false, you violate 18 USC 1001: (a) Except as otherwise provided in this section, whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully— (1) falsifies, conceals, or covers up by any trick, ...


13

The short answer is that a few individual trades would be legal (e.g. if you sell some to a friend), but doing so on a regular basis for profit (e.g. offering a sale price and a bid price to all comers) would not unless you get the appropriate licenses and comply with relevant laws. Doing this is onerous. Any kind of "money services business" is subject to ...


8

But lately he has had his friend use my PayPal account. Someone will send me money and then I transfer it to where he tells me. To cash app or venmo. That's money laundering. Definitely illegal. He said it's money owed for cellphones. People in jail aren't supposed to have cellphones. You are helping him break the law, which means you are helping him ...


7

When does it become illegal to exchange bitcoin for cash? When the transaction purposefully skips the controls in place regarding anti-money laundering. Generally speaking, the issue is not the mere involvement of cryptocurrency in a transaction, but the crimes a wrongdoer seeks to camouflage or conceal by means of cryptocurrencies. Such crimes typically ...


6

I don't think any of it is a crime And it sounds like a lot of work to me. Getting overpaid for it doesn't make you a crook, just one of many overpaid people in society today. Remember, you assure us this is legal, and the only part you are questioning is routing it through you. He can pay you money for any service, or to sleep on the job, or simply to ...


5

Would this be legal? Probably at this scale. Not necessarily extrapolated to a large commercial operation involving more parties. At some point it becomes a payment system and a financial enterprise that becomes subject to financial regulation. Could her transfer be viewed as a donation as well? This is not a donation transaction and efforts to characterize ...


5

Is it legal to sell/Trade Bitcoin for Cash in USA, Virgina? Yes. Your mention that you want to "start selling some of [your] bitcoins" conveys that you have owned the bitcoins for a while. That falls short of the meaning of money business service, where a license would be required. See also this answer. From legal and practical standpoints it might be ...


5

As has been alluded to money laundering is a generic term for the process by which criminals make the proceeds of crime appear to be legitimately obtained. Various jurisdictions have controls in place to identify suspicious transactions, however these are generally the responsibility of financial institutions to monitor and report - for example, many ...


5

According to the United States Treasury Department: Money laundering is the process of making illegally-gained proceeds (i.e. "dirty money") appear legal (i.e. "clean"). Typically, it involves three steps: placement, layering and integration. First, the illegitimate funds are furtively introduced into the legitimate financial system. Then, the money is ...


5

You can report your suspicions to any German police station or any prosecution service (Staatsanwaltschaft). Furthermore, in this case to any tax authority (Finanzamt). Your report may be made anonymous. You will not get a reward.


4

It comes down to intent ... and possibly responses to illegal activity. Localbitcoins intention is to facilitate trade in bitcoins - in itself a legal undertaking. Cryptocurrancy transactions can be used for illegal purposes but it is not the sites intention to enable that. Amazon.com intention is to facilitate trade in books - in itself a legal ...


4

It looks to me as if "money laundering" is a misunderstanding; though any organization has a duty to prevent this, charities have no special responsibilties. However, charity law does in general terms prevent a charity from giving money to a cause that does not further the charity's aims. The Charity Commission's guidance says "Charities can only spend ...


4

Here are the suggested federal jury instructions for aiding and abetting: To "aid and abet" means intentionally to help someone else commit a crime. To establish aiding and abetting, the government must prove beyond a reasonable doubt: First, that someone else committed the charged crime; and Second, that [defendant] consciously shared the ...


4

You can be charged. The criminal act is defined here and here. A core defining feature of violation of The Money Laundering Control Act of 1986 is knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves ...


4

No. Money Laundering is the act of taking money that was made as a result of criminal activity and turning it into "clean" money. There are a number of ways this occurs, and there may be ways to do it with casino chips, but you haven't demonstrated that your money is "Dirty" to begin with. If you have a $100 dollar chip from a Vegas Casino, it means that ...


3

The applicable law is the New Zealand Anti-Money Laundering law. The regulations describing exactly what is covered don't mention Bitcoin cleaning, but the "wire transfer" and "currency exchange" bits probably cover such a thing. I certainly wouldn't like to be the test case. There was also this case in Europe.


3

Laundering physical money Let's say a career criminal committed a couple crimes and is now in possession of a large heap of money in form of coins and paper currency. They want to use that money to buy themselves a nice house. But showing up with a huge bag of money at a bank or real estate agency would look very suspicious. It is very likely that they will ...


3

You will also need to file your taxes properly The IRS and state will view this as a sale of a security. Any capital gain must be reported on your taxes, i.e. your normal Form 1040 that you file before April 15. You'll need to add Schedule D to your tax forms. Also, if this is a significant surge of income (e.g. more than a whole paycheck), you may ...


3

The developers of the site localbitcoins.com are providing a service that is not itself illegal. They explain their service and its limitations in their Terms of Service (my emphasis): All trades on this site are concluded solely between users of the service, and while LocalBitcoins.com may help in resolving disputes between the parties, it does not ...


3

None First, only cash transactions are reportable: electronic and cheque transactions aren't. The only ones that will be reported are your single withdrawal and deposit. As you say $10,000 is not a lot of money. What law enforcement is looking for a people who frequently have large cash transactions: they use data matching algorithms to identify these ...


3

Suppose you want to pay for your son's college tuition with cocaine sales proceeds. You hire your son as an actor in your miserable movie and pay him $90,000 for doing so. The movie is produced by a corporation that you don't have to 1099 when you give it money. The corporation treats the money in as a loan which isn't income to it and doesn't have to report ...


2

This is a "how things are in practice" answer, not statutory. The ruling question is whether the virtual currencies are readily exchangeable for USD. For instance if there is a thriving, open currency exchange where I can convert 1000 World of Warcraft gold into 1 USD and back again anytime I please, then WoW gold takes on the character of a foreign ...


2

In what way is this person "reasonably suspected of involvement in, or of being connected to a person involved in, serious crime": having cash is not enough to create a reasonable suspicion of this. So, no.


2

With a legal contract in both countries, listing the purpose (transfer of funds) and accounts being used ; togeather with a tax consultant (Steuerberater) protocoling the money transfers ; who would satisfy queries from the banks (that it is not money laundering) and tax authorities (that it is not income) would probably be doable since it would then be ...


1

Your last paragraph asks for legal advice which is off topic here; you should talk to a lawyer. Having said that: You may not be able to prove you owned the BTC when they were only worth 250 USD, but how far back can you prove you owned them? If you can show you have held them for a while it strengthens your claim. Can you get your friend to testify about ...


1

does the platform actually has the right to indefinitely hold the monies No. But they do not claim to have such a right though: the ordinary meaning of "suspend" is not "indefinitely hold". A reasonable person would expect the suspension to be temporary — pending any investigation / police inquiry as to whether the funds were actually fraudulent. Such an ...


1

Given that this transaction will not be otherwise found fraudulent/reversed, does the platform actually has the right to indefinitely hold the monies they have no ownership over? Indefinitely: yes; forever: no. Once the fraud investigation is completed the money would be released (if clean) or sent to the true owner (if fraudulent). If the contract is ...


1

I don't think this has been addressed, but: Contact a lawyer You shouldn't trust random people on the internet with this. You feel uncomfortable, and potentially participate in crimes. You should talk to a specialist, talk to a lawyer. That doesn't seem like a very complex problem, but you need a legal advice. There are some non-profits that help with ...


1

can this be treated as [being] money laundering? People can treat it however they want. The facts you present do not constitute money laundering, but they likely would give rise to the suspicion of laundering.


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