What Is “Cash Bank Withdrawal Structuring”?

Posted on January 7, 2026 by Dr. David Edward Marcinko MBA MEd CMP™

Dr. David Edward Marcinko MBA MEd

SPONSOR: http://www.MarcinkoAssociates.com

***

***

FINANCIAL DEFINITIONS

Cash bank withdrawal structuring—commonly referred to simply as structuring—is the deliberate act of breaking up cash transactions into smaller amounts to avoid triggering federal reporting requirements. While many people associate structuring with deposits, the law applies equally to withdrawals, and the consequences are just as serious. Even when the money involved is completely legitimate, structuring is considered a federal offense because it involves intentionally evading legally mandated financial reporting.

The foundation of this issue lies in the Bank Secrecy Act, which requires financial institutions to report certain cash transactions to help detect money laundering, tax evasion, and other financial crimes. Banks must file a Currency Transaction Report (CTR) for any cash transaction—deposit or withdrawal—exceeding $10,000 in a single business day. These reports are routine and do not imply wrongdoing. However, some individuals attempt to avoid this reporting by conducting multiple smaller transactions, believing that staying under the threshold will keep their activity unnoticed. The law makes it clear that intentionally structuring transactions to evade reporting is illegal.

Structuring can take many forms. A person might withdraw $9,900 one day, $9,800 the next, and $9,700 the day after that. Another might visit several branches of the same bank to withdraw smaller amounts, hoping to avoid detection. Even asking a teller how much can be withdrawn “without paperwork” can be interpreted as evidence of intent. The key factor is not the amount of money itself but the intent to avoid the reporting requirement. This means that even if the funds are entirely lawful, the act of trying to avoid a CTR is what creates legal exposure.

Financial institutions are required to monitor for patterns that may indicate structuring. Banks use internal systems to detect unusual patterns, such as repeated withdrawals just below the reporting threshold or multiple transactions spread across different branches. When a bank detects behavior that appears designed to evade reporting, it must file a Suspicious Activity Report (SAR). Unlike CTRs, SARs are confidential, and customers are not informed when one is filed. These reports can trigger further review by federal agencies responsible for investigating financial crimes.

The consequences of structuring can be severe. Violations can lead to criminal charges, civil penalties, asset forfeiture, and long-term investigations by agencies such as the IRS or financial crime enforcement authorities. Importantly, the legality of the money does not protect someone from prosecution. Courts have consistently held that structuring is a crime based on the act of evasion itself, not the source of the funds. As a result, even business owners or individuals withdrawing their own lawfully earned money can face penalties if they intentionally avoid reporting requirements.

Understanding structuring is essential not only for compliance but also for avoiding accidental red flags. Large cash withdrawals are perfectly legal, and banks routinely file CTRs without issue. Problems arise only when someone attempts to avoid these filings. The safest and simplest approach is to conduct necessary transactions openly and allow the bank to complete any required reporting. Transparency protects both the customer and the financial institution.

In summary, cash bank withdrawal structuring is the intentional manipulation of transaction amounts to evade federal reporting rules. It is prohibited under the Bank Secrecy Act and carries significant legal risks. By understanding what structuring is, how it is detected, and why it is taken seriously, individuals can ensure their financial activities remain compliant and avoid unintended legal consequences.

COMMENTS APPRECIATED

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit an RFP for speaking engagements: CONTACT: Ann Miller RN MHA at MarcinkoAdvisors@outlook.com -OR- http://www.MarcinkoAssociates.com

Like, Refer and Subscribe

***

***

Filed under: iMBA, Inc. | Tagged: | Leave a comment »

BONDS: Macaulay Fixed-Income Duration Formula

Posted on January 7, 2026 by Dr. David Edward Marcinko MBA MEd CMP™

FINANCIAL DEFINITIONS

By Dr. David Edward Marcinko MBA MEd

***

***

Macaulay duration is a foundational concept in fixed-income investing that measures the weighted average time until a bondholder receives the bond’s cash flows. It is essential for understanding interest rate risk and managing bond portfolios.

Named after economist Frederick Macaulay, Macaulay duration represents the average time in years that an investor must hold a bond to recover its present value through coupon and principal payments. Unlike simple maturity, which only reflects the final payment date, Macaulay duration accounts for the timing and magnitude of all cash flows, weighted by their present value. This makes it a more precise tool for evaluating a bond’s sensitivity to interest rate changes.

To calculate Macaulay duration, each cash flow is discounted to its present value using the bond’s yield to maturity. These present values are then weighted by the time at which each payment occurs. The formula is:

Macaulay Duration=∑t=1n(t⋅CFt(1+y)t)P\text{Macaulay Duration} = \frac{\sum_{t=1}^{n} \left( \frac{t \cdot CF_t}{(1+y)^t} \right)}{P}

Where CFtCF_t is the cash flow at time tt, yy is the yield to maturity, and PP is the bond’s price. The result is expressed in years.

Why does this matter? Macaulay duration is crucial for investors who want to match the timing of their liabilities with their assets—a strategy known as immunization. By aligning the duration of a bond portfolio with the time horizon of future liabilities, investors can minimize the impact of interest rate fluctuations. For example, pension funds often use duration matching to ensure they can meet future payouts regardless of rate changes.

Duration also helps investors compare bonds with different maturities and coupon structures. Generally, bonds with longer maturities and lower coupons have higher durations, meaning they are more sensitive to interest rate changes. Conversely, short-term or high-coupon bonds have lower durations and are less affected by rate shifts.

While Macaulay duration is a powerful tool, it has limitations. It assumes a flat yield curve and constant interest rates, which rarely hold true in dynamic markets. For more precise risk management, investors often use modified duration, which adjusts Macaulay duration to estimate the percentage change in a bond’s price for a 1% change in interest rates.

In practice, Macaulay duration is most useful for long-term planning and strategic asset allocation. It provides a clear measure of time-weighted cash flow exposure and helps investors build portfolios that are resilient to interest rate volatility.

Whether used for individual bond selection or broader portfolio construction, understanding Macaulay duration equips investors with a deeper grasp of fixed-income dynamics.

COMMENTS APPRECIATED

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit an RFP for speaking engagements: CONTACT: Ann Miller RN MHA at MarcinkoAdvisors@outlook.com 

Like, Refer and Subscribe

***

***

Filed under: "Ask-an-Advisor", finance, Portfolio Management | Tagged: , , , , , , , , , , , , , | Leave a comment »

TARIFFS: Hurt Medicine and Healthcare

Posted on January 7, 2026 by Dr. David Edward Marcinko MBA MEd CMP™

By Dr. David Edward Marcinko MBA MEd

***

***

Tariffs on medicines and healthcare products increase costs, disrupt supply chains, and ultimately harm patient access and public health. They raise prices for essential drugs and medical devices, create shortages, and undermine innovation in the healthcare sector.

The Economic Burden of Tariffs

Tariffs are taxes imposed on imported goods. In healthcare, this means pharmaceuticals, medical devices, and raw materials like active pharmaceutical ingredients (APIs) become more expensive. Since the United States imports a significant share of these products from countries such as China, India, and the European Union, tariffs directly raise costs for hospitals, clinics, and patients.

  • Drug prices rise because manufacturers pass on higher import costs to consumers.
  • Medical devices such as surgical instruments, diagnostic equipment, and imaging technology become more expensive, straining hospital budgets.
  • Insurance premiums may increase as healthcare providers face higher operating costs.

This economic burden is not abstract—it translates into higher bills for patients and reduced affordability of care.

Supply Chain Disruptions

Healthcare supply chains are highly globalized. APIs, raw materials, and specialized equipment often come from multiple countries. Tariffs disrupt this delicate balance by:

  • Creating shortages when suppliers cannot afford to export to tariff-heavy markets.
  • Delaying shipments as companies seek alternative routes or suppliers.
  • Reducing resilience by concentrating production in fewer regions, making systems more vulnerable to shocks.

For example, if tariffs make APIs prohibitively expensive, pharmaceutical companies must scramble to find new suppliers, often at higher cost and with longer lead times. This can delay drug availability and compromise patient care.

***

***

Impact on Public Health

The consequences of tariffs extend beyond economics into public health outcomes.

  • Patients face reduced access to life-saving medicines and devices.
  • Hospitals may ration supplies, prioritizing urgent cases while delaying elective procedures.
  • Preventive care suffers, as higher costs discourage investment in vaccines, diagnostic tools, and routine screenings.

In the long run, tariffs can exacerbate health inequities, disproportionately affecting low-income populations who are least able to absorb rising costs.

Innovation and Research Setbacks

Healthcare innovation relies on global collaboration. Tariffs discourage cross-border partnerships by raising costs and creating uncertainty.

  • Research institutions may struggle to import specialized lab equipment.
  • Pharmaceutical companies face higher costs for clinical trials and drug development.
  • Digital health technologies that depend on imported components (like sensors and chips) become more expensive, slowing adoption.

This stifles progress in areas such as cancer treatment, biotechnology, and precision medicine.

Conclusion

Tariffs in healthcare are a blunt economic tool with unintended consequences. While they aim to protect domestic industries, they increase costs, disrupt supply chains, reduce access to care, and hinder innovation. In medicine and healthcare, where lives depend on timely and affordable access to products, tariffs are particularly damaging. Policymakers must weigh these human costs carefully before imposing trade barriers on essential goods.

COMMENTS APPRECIATED

Like, Refer and Subscribe

***

***

Filed under: "Ask-an-Advisor", "Doctors Only", Accounting, Health Economics, Health Insurance, Taxation, Touring with Marcinko | Tagged: , , , , , , , , , , , , , , , , , , , , , , | Leave a comment »