Possible Money Laundering?

[NickDrake]

What is the name of your state? Oregon

Hi. I have a friend who has been asked, by his employer, if he would use his Paypal account to accept money transfers which he would take 3% of and send the rest to his boss' bank account.

His boss has companies in China that sell counterfeit purses, watches, pens, etc. I told him it sounds a lot like money laundering, specifically "smurfing" or "structuring". He thinks that as long as he pays taxes on the 3% that he keeps he isn't breaking any laws.

Any advice? I wasn't sure if I should post this in the Tax forum or this one, so I posted it here. My friend really doesn't want to break any laws but he's convinced himself that it's legal. I'd really appreciate any help you guys could give me... I don't want him to get in trouble.

 

[LeeHarveyBlotto]

Advice? Don't walk, run from anything that smells like this.

 

[las365]

If it is a legitimate enterprise, why would the boss not just open his own Paypal account and keep the 3% himself? Your friend is an idiot if he participates in this scheme.

 

[tranquility]

He would need to make the appropriate federal filings for being a "money service business". It's not illegal on it's face, but you have to do things according to regulations and, your friend will be in the chain if the funds are illegal in any way. So, if the money is bad for some reason, he could have to deal with a criminal defense or a civil one. It is unlikely, absent more, he would be criminally liable for the money service if there are crimes attached, but he would still need to pay for the attorney. If civilly sued, it would greatly depend on the facts.