Law on money laundering - 20 basic facets

Money Laundering

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

Recycling, as it is commonly referred to as the transfer of funds, a product of criminal acts - whether that activity is related to drug trafficking, related or economic crime. Despite being a rather broad definition of money laundering, the federal money laundering laws adopted to try to take profit from criminal activities.

Congress has passed laws over the years, the profits of criminal activities can be used to prevent, as currency transaction reports. The anti-money laundering statutes criminalize the movement and use of profit / wealth created by criminal activity. See Title 18, United States Code, § § 1956 and 1957.

Many people have problems with this statute, including the apparently widespread use of these statutes, particularly the concerns about interference with legitimate business activity. A typical example of this concern is a scenario where an individual or company manages the money without any knowledge of criminal origin, which could lead to prosecution of money laundering in federal court.

In conclusion, the government must prove that someone knowingly did some act of transfer or funds, the proceeds of unlawful activity referred. The two commonly used statute in the federal courts, 18 USC § § 1956 and 1957, the list of specified unlawful activities, which are the basis for federal money laundering. Money laundering, which is often used in pursuit of the Federation and is considered the perfect money laundering statute is 18 USC Section 1956, follows:

§ 1956th Laundering monetary instruments
(A)

(1) Who, knowing that the property involved in a financial transaction, the proceeds of some form of unlawful activity is or will attempt such a financial transaction is in fact the proceeds to carry out unlawful activities which -

(A)

(I) with the intent to promote the exercise of that illegality or

(Ii) the intention, since the conditions for a violation of section 7201 or 7206 of the Internal Revenue Code of 1986, or

(B) know that the transaction in whole or in part, designed -

(I hide), or to conceal the nature, location, source, ownership or control of proceeds from illegal activities or specific

(Ii) avoid a transaction reporting requirement under state law or federal

will be sentenced to a fine of not more than $ 500,000 or twice the value of property in the area, whichever is greater, or imprisonment not exceeding twenty years, or both parties.

(2) Whoever transports, transmits, or transfers, or transport tries to convey, or transfer a monetary instrument or funds from a place in the United States or in a place outside the United States or in a place in the U.S. through a place outside the United States -

(A) promote, with the intention of exercising that fault, or

(B) know that the monetary instrument or funds from the transportation, the transmission, or transfer represent the proceeds of some form of unlawful activity and knowing that such transportation, transmission, transfer, wholly or partly designed -

(I hide), or to conceal the nature, location, source, ownership or control of proceeds from illegal activities or specific

(Ii) avoid a transaction reporting requirement under state law or federal

must pay a 'fine of not more than $ 500,000 or twice the value of the monetary instrument or funds in the transportation, transmission and transfer, if greater, or imprisonment not exceeding 20 years, or both parties are doomed. For the purposes of the offense under subparagraph (B) the defendant's knowledge of evidence to show that a police officer Represented the question in paragraph (B) as true, see the defendant, the Subsequent statements or actions that ' Such representations defendant believed that to be true.

(3) Whoever, with intent -

(A) promote the exercise of certain unlawful actions;

(B to hide) or disguise the nature, location, source, ownership or control of property deemed proceeds of illegal activities or specific

(C) avoid a transaction reporting requirement under state law or federal

conducts or attempts a financial transaction represented the behavior of the property, used the proceeds of specific properties to facilitate illegal activities or conduct or illegal activities will be certain to indicate in this section a fine or by imprisonment not exceeding 20 years, or both . For the purposes of this paragraph and paragraph (2), the term "represented" a representation is determined by a police officer or another person the direction or with the approval of a federal official responsible for injury or track made of this section.

(B) Penalties .--

(A) In general .-- who operates or attempts to perform a transaction in paragraph (a) (1) or (a) (3) or § 1957, or a transportation, transmission to transmit, or behavior listed in paragraph (a) (2), shall be liable to the United States a civil penalty not exceeding the greater of -

(A) the value of property, funds or money is involved in the transaction, or

(B) $ 10,000.

(Submitted 2) Jurisdiction over foreign persons for purposes of contract action or order of a sentence .-- This section, the district courts acquire jurisdiction of a foreign person, including any financial institution authorized under the laws of a foreign country, against whom the complaint raised is whether the service is unrelated to the person under the Federal Rules of Civil Procedure or the laws of the country where the foreign person is found or made, and -

(A) the alien commits an offense under paragraph (a) involving a financial transaction that occurs wholly or partly in the United States;

(B) the foreign person has turned to his own use, property in the United States has an interest in entering a confiscation order by a court of the United States, or

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

(3) Court authority over assets .-- A court referred to in paragraph (2) may issue a restraining order pending trial or any other measure necessary to ensure that any bank or other rights to hold the defendant, in the persons of the Member United is a satisfying verdict for this section.

(4) Federal receiver .--

(A) In general .-- A court referred to in paragraph (2), a federal law to appoint receivers to collect under subparagraph (B) of this paragraph, marshal, and take custody, control and ownership of all assets of the meeting where they agreed to a civil court under this subsection, a forfeiture verdict under § 981 or 982, or a criminal conviction under § 1957 or subsection (a) of this section including an order of restitution to all victims of an illegal activity in point.

(B) the appointment and authority .-- A Federal Receiver under subparagraph (A) -

(I) may be appointed at the request of a prosecutor or federal or state regulatory authority by the competent court for the defendant in the case;

(Ii) will be a court official, and the powers of the Federal Receiver to act in accordance with Section 754 of Title 28, United States Code Have been Determined, and

(Iii) have standing equivalent to that of a prosecutor for the purpose of submitting requests for information regarding the activities of the defendant to receive -

(I) of the Financial Crimes Network running the Treasury Department, or

(II) from a foreign country under a mutual legal assistance treaty, a multilateral agreement or other arrangement for international law enforcement assistance, provided that such requests comply with policies and procedures of the Attorney General.

(C) used in this section -

(1) The term "knowledge, that the ownership of a financial transaction involving the proceeds of some form of unlawful activity" shall mean that the person knew the property involved in the transaction represented proceeds of some form, though not necessarily form activity is a crime of state, federal or foreign, regardless of whether such activity to the point (7);

(2) The term "conducts" includes initiating, concluding or participating in initiating or concluding a transaction;

(3) The term "transaction" includes a purchase, sale, loan, pledge, gift, transfer, deliver or otherwise dispose of, and in relation to a financial institution includes a deposit, withdrawal, transfer between accounts, exchange of currency, loan, extension of credit - buying or selling stocks, bonds, certificates of deposit or other monetary instruments, the use of safe, or other payment, transfer or delivery by or financial institution, by whatever means effected;

(4) The term financial transaction "

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

(I) in which the movement of funds by wire or other means or

(II) with one or more monetary instruments or

And (iii) the transfer of ownership of property, vehicles, ships, aircraft or

(B) a transaction relating to the use of a credit institution which is commercially active or their activity, interstate or foreign in some way or degree;

(5) The term "monetary instruments"

(I) coin or currency of the United States or any other country, travelers checks, personal checks and money orders, or

(Ii) investment securities or securities in bearer form or in any other form of legal claim to surrender passports;

(6) The term "financial institution" includes -

(A), a financial institution, as defined in section 5312 (a) (2) of Title 31, United States Code enacted or adopted in accordance with, and

(B) a foreign bank, as in section 1 of the International Banking Act of 1978 defined (12 USC 3101);

(7) The term "specified unlawful activity" -

(A) any act or activity is a criminal offense in section 1961 (a) of this title, except that it is a criminal act, and under subchapter II, chapter 53 of Title 31;

occur (B) compared to a financial transaction involving all or part of the United States, a violation of a foreign nation -

(I) the manufacture, importation, sale or distribution of a controlled substance (as, for the purposes of the controlled substances law is defined);

(Ii) murder, kidnapping, robbery, extortion, destruction of property by fire or explosion, or a crime of violence (as defined in paragraph 16);

(Iii) fraud, or any scheme or attempt to defraud, by or against a foreign bank (as defined in paragraph 7 of § 1 (b) defines the International Banking Act of 1978)) [1]

(Iv) bribery of a public official or misappropriation, theft or embezzlement of public funds by or for the benefit of a public official;

(V) smuggling or export control violations with -

(I) an United States Munitions List pursuant to § 38 of the Arms Export Control Act are controlled producer-based (22 USC 2778), or

(II) a component under the regulations under the Export Administration Regulations (15 CFR Parts 730-774 controls), or

(There is) a crime in relation to the U.S. from a multilateral treaty, either to extradite the alleged offender or submit the case to the police if the offender in the territory of the United States were found;