Money Laundering Law – 20 Basic Facets

Money Laundering Law – 20 Basic Facets


Federal Criminal Law Statutes (Title 18, United States Code)

“Money laundering” as it is commonly called, requires the transfer of monies that are a product of criminal activity – whether that activity is medication trafficking related or white scruff of the neck crime related. Although there is a pretty broad definition of money laundering, the federal money laundering laws had been enacted to attempt to take the profit from criminal activity.

Congress has handed several laws over the years to prevent earnings of criminal activity from being utilized, such as Currency Transaction Reviews. The Anti-Money Laundering Statutes criminalizes the movement and use of profits/wealth created by criminal activity. See Name 18, United States Code, Sections 1956 and 1957.

Many people have issues about these statutes, included the apparently broad application of these statutes, especially concerns about reaching into legitimate business activities. A common example of this concern is a scenario where an individual or business handles money with no knowledge of any criminal origins, which could result in prosecution for money laundering in federal court.

In summary, the government has to prove that a person knowingly made some transfer or deal with monies that were proceeds of the specified unlawful activity. The two widely used statutes in federal courts, eighteen, U. S. C., Sections 1956 and 1957, list the specific unlawful activities that are the basis with regard to federal money laundering. Money washing that is often used in federal prosecutions and that is considered the consummate cash laundering statute, is 18, Oughout. S. C., Section 1956, proven here:

ยง 1956. Laundering of Monetary Instruments

(1) Whomever, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or tries to conduct such a financial deal which in fact involves the earnings of specified unlawful activity–


(i) with the intent to promote the particular carrying on of specified unlawful activity; or

(ii) with intentions of engage in conduct constituting a violation of section 7201 or 7206 of the Internal Revenue Code associated with 1986; or

(B) knowing that the particular transaction is designed in whole or in part–

(i) to conceal or even disguise the nature, the location, the source, the particular ownership, or the control of the earnings of specified unlawful activity; or

(ii) to avoid a transaction reporting requirement under State or Government law,

shall be sentenced to a fine of not more than $500, 000 or twice the value of the property involved in the transaction, whichever is greater, or imprisonment for not more than twenty years, or both.

(2) Whoever transports, transmits, or transfers, or attempts to transport, transmit, or transfer a monetary device or funds from a place in america to or through a place outside of the United States or to a place in the United States from or through a place outside the Usa States–

(A) with the intent to market the carrying on of specified unlawful activity; or

(B) understanding that the monetary instrument or money involved in the transportation, transmission, or move represent the proceeds of some type of unlawful activity and knowing that this kind of transportation, transmission, or transfer is made in whole or in part–

(i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specific unlawful activity; or

(ii) to prevent a transaction reporting requirement under State or Federal law,

shall be sentenced to a fine of only $500, 000 or twice the cost of the monetary instrument or funds involved in the transportation, transmission, or move, whichever is greater, or imprisonment for not more than twenty years, or both. For the purpose of the offense described within subparagraph (B), the defendant’s understanding may be established by proof that a law enforcement officer represented the matter specified in subparagraph (B) as accurate, and the defendant’s subsequent statements or even actions indicate that the defendant thought such representations to be true.
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(3) Whoever, with the intent–

(A) to market the carrying on of specific unlawful activity;

(B) to hide or disguise the nature, location, supply, ownership, or control of property believed to be the proceeds of specified unlawful activity; or

(C) to avoid a transaction reporting requirement under State or Federal law,

conducts or attempts to conduct a financial deal involving property represented to be the earnings of specified unlawful activity, or property used to conduct or help specified unlawful activity, shall be fined under this title or locked up for not more than 20 years, or each. For purposes of this paragraph and paragraph (2), the term “represented” indicates any representation made by a police force officer or by another person at the direction of, or with the approval of, a Federal official authorized to investigate or prosecute violations of this area.

(b) Penalties. —

(1) Generally. — Whoever conducts or efforts to conduct a transaction described in subsection (a)(1) or (a)(3), or section 1957, or a transportation, transmission, or transfer described in subsection (a)(2), is liable to the United States for a civil penalty of only the greater of–

(A) the value of the house, funds, or monetary instruments involved in the transaction; or

(B) $10, 1000.

(2) Jurisdiction over foreign people. — For purposes of adjudicating an action filed or enforcing a penalty ordered under this section, the district courts shall have jurisdiction more than any foreign person, including any kind of financial institution authorized under the laws of the foreign country, against whom the particular action is brought, if service of process upon the international person is made under the Federal Guidelines of Civil Procedure or the laws of the country in which the foreign individual is found, and–

(A) the international person commits an offense under subsection (a) involving a financial transaction that occurs in whole or in part in the United States;

(B) the foreign person converts, to his or her own use, property where the United States has an ownership interest by virtue of the entry of an purchase of forfeiture by a court states; or

(C) the foreign individual is a financial institution that maintains a banking account at a financial institution in the United States.

(3) Court authority over assets. — The court described in paragraph (2) may issue a pretrial restraining order or take any other motion necessary to ensure that any bank account or other property held by the defendant in the United States is available to satisfy a judgment under this section.

(4) Federal receiver. —

(A) In general. — A court described in paragraph (2) may appoint a Federal Receiver, according to subparagraph (B) of this paragraph, to gather, marshal, and take custody, control, and possession of all assets of the defendant, wherever located, to satisfy the civil judgment under this subsection, a forfeiture judgment under section 981 or 982, or a criminal sentence under section 1957 or even subsection (a) of this section, which includes an order of restitution to any victim of a specified unlawful action.

(B) Appointment and authority. — A Federal Receiver described in subparagraph (A)–

(i) may be appointed upon application of a Federal prosecutor or a Government or State regulator, by the court having jurisdiction over the defendant in the case;

(ii) shall be an officer of the court, and the powers of the Federal government Receiver shall include the powers decide in section 754 of name 28, United States Code; and

(iii) shall have standing equivalent to that of a Federal prosecutor for the purpose of submitting requests to obtain information regarding the assets of the defendant–

(I) from the Financial Crimes Enforcement Network of the Department from the Treasury; or

(II) from a foreign country pursuant to a mutual legal assistance treaty, multilateral agreement, or even other arrangement for international law enforcement assistance, provided that such requests have been in accordance with the policies and methods of the Attorney General.

(c) As used in this section–

(1) the phrase “knowing that the property involved in economic transaction represents the proceeds associated with some form of unlawful activity” means that the individual knew the property involved in the transaction represented proceeds from some form, though not necessarily which form, of activity that constitutes a felony under State, Federal, or foreign law, regardless of whether or not such activity is specified within paragraph (7);

(2) the term “conducts” includes initiating, concluding, or taking part in initiating, or concluding a transaction;

(3) the term “transaction” includes a buy, sale, loan, pledge, gift, move, delivery, or other disposition, with respect to a financial institution includes a down payment, withdrawal, transfer between accounts, swap of currency, loan, extension associated with credit, purchase or sale of any stock, bond, certificate of down payment, or other monetary instrument, utilization of a safe deposit box, or any type of other payment, transfer, or delivery by, through, or to a financial institution, by whatever means effected;

(4) the term “financial transaction” means

(A) a transaction which in any way or even degree affects interstate or foreign commerce

(i) involving the movement associated with funds by wire or various other means or

(ii) involving a number of monetary instruments, or

(iii) involving the transfer of title to any real property, vehicle, vessel, or airplane, or

(B) a transaction relating to the use of a financial institution which is involved in, or the activities of which affect, interstate or foreign commerce in any way or even degree;

(5) the term “monetary instruments” means

(i) coin or currency of the United States or of any other country, travelers’ checks, personal checks, bank checks, and money orders, or even

(ii) investment securities or flexible instruments, in bearer form or else in such form that title thereto passes upon delivery;

(6) the term “financial institution” includes–

(A) any financial institution, as defined in section 5312 (a)(2) of title 31, United States Code, or the regulations promulgated thereunder; and

(B) any foreign bank, as defined in area 1 of the International Banking Act of 1978 (12 U. S. D. 3101);

(7) the term “specified unlawful activity” means–

(A) any act or activity constituting an offense classified by section 1961 (1) of this name except an act which is indictable under subchapter II of chapter 53 of title 31;

(B) with respect to a financial transaction occurring in whole or in part in the United States, an offense towards a foreign nation involving–

(i) the manufacture, importation, sale, or distribution of a controlled substance (as such term is defined for your purposes of the Controlled Substances Act);

(ii) murder, kidnapping, robbery, extortion, destruction of property by means of explosive or fire, or a crime associated with violence (as defined in section 16);

(iii) fraud, or any plan or attempt to defraud, by or against a foreign bank (as defined in paragraph 7 associated with section 1(b) of the International Banking Act of 1978)); [1]

(iv) bribery of a public standard, or the misappropriation, theft, or embezzlement of public funds by or for the benefit of a public formal;

(v) smuggling or export manage violations involving–

(I) an item managed on the United States Munitions List set up under section 38 of the Hands Export Control Act (22 U. S. C. 2778); or

(II) an item controlled under regulations under the Export Administration Regulations (15 Chemical. F. R. Parts 730-774); or even

(vi) an offense with respect to which the United states of america would be obligated by a multilateral treaty, either to extradite the alleged offender or to submit the case to get prosecution, if the offender were throughout the territory of the United States;

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