What Are Structuring Allegations in Banking Transactions?

 Posted on August 12, 2025 in White Collar Crimes

Money laundering is a very serious white-collar crime, and, unfortunately, in some cases, a person can be charged with money laundering or the similar crime of "structuring" when they are unaware they have done anything wrong. In the state of Texas, you can face serious criminal charges, even if you never touched illegal money, simply for how you deposit or withdraw your own funds.

This is known as structuring. Structuring involves breaking up financial transactions to avoid bank reporting requirements. Many people accused of structuring had no idea they were breaking the law. Structuring is defined under federal law (31 U.S.C. Section 5324) and (Texas Penal Code Section 34.02). Perhaps you are facing charges of money laundering or allegations of structuring. In that case, it is important that you speak to an experienced Houston, TX criminal defense lawyer as soon as possible to ensure a strong defense.

Understanding the Crime of Structuring

Structuring involves breaking up deposits, withdrawals, or other transactions to avoid triggering a Currency Transaction Report (CTR). CTRs are required for any cash transaction exceeding $10,000. Individuals who are deliberately structuring transactions to conceal money laundering activities often make multiple deposits of $9,900 over several days.

Structuring is illegal because it is viewed as an attempt to circumvent financial reporting laws – even when the money is earned legally. Banks are required to report any suspicious activity, and failing to do so is a federal offense. Structuring is often charged alongside money laundering or tax evasion, even when the underlying crime cannot be proven.

A business owner who legitimately deposits daily cash just under the $10,000 threshold can trigger structuring charges. Individuals who withdraw savings in chunks of cash just below the $10,000 threshold to purchase real estate or a vehicle could face structuring charges. Even family members who manage a cash-based business, such as a restaurant, could be shocked to find themselves charged with structuring or money laundering.

What Must Prosecutors Prove for a Structuring Conviction?

Prosecutors must show that the defendant willfully and knowingly attempted to evade bank reporting rules. In other words, there must be intent for a conviction. An honest mistake or lack of understanding does not support a conviction. The prosecutor will examine the pattern of transactions to attempt to prove intent or money laundering.

What Are the Penalties for Structuring in Texas?

If the criminal offense of structuring is charged federally, a conviction can result in fines of up to $250,000 and up to five years in federal prison. If the structuring charges can be linked to other crimes, the penalties will increase. If the structuring charges are state, the penalties will depend on the amount of money involved, but can range from a state jail felony to a first-degree felony.

The penalties for a first-degree felony include from five to 99 years in prison. The penalties for a state jail felony range from 180 days in jail to two years in jail. Structuring and money laundering penalties are quite severe.  Furthermore, even without a conviction, asset forfeiture can occur following charges for structuring or money laundering.

What Are the Most Common Defenses Against Structuring?

While every case is unique in some way, an experienced criminal defense attorney will build a strong defense based on the facts and circumstances surrounding the charges. The most common defenses include:

• Lack of intent
• Legitimate business purposes
• There was no underlying criminal activity.
• Illegal search and seizure
• Violation of the defendant’s constitutional rights
• Violation of due process due to overzealous investigation or unconstitutional seizure

Contact a Houston, TX White Collar Crime Lawyer

Early intervention from a Houston, TX white collar crime attorney from Murphy & McKinney Law Firm, P.C. can make a significant difference in the outcome of your charges. Our attorneys can communicate with banks, federal investigators, and prosecutors on your behalf, potentially negotiating reduced charges or dismissal if intent is not proven. Attorney Murphy serves as President of the Harris County Criminal Lawyers Association. Call 713-229-8333 to schedule your initial attorney meeting.