Comparison Foreign Money Laundering Statutes: United States

United States Money Laundering Statutes

The appropriate legal codes relating to money laundering include Title 18 U.S.C. 1956[1] and
Title 18 U.S.C.1957[2].

The Bank Secrecy Act of 1970(BSA)[3] This act is considered to be one of the initial legislative measures against money laundering in the US. Primarily targeted at tax fraud related activities, this act was also designed to create a paper trail for large currency transactions (Currency Transaction Report). Noncompliance could result in criminal and civil penalties.

The Money Laundering Control Act of 1986(MLCA)[4] This act officially made money laundering a crime.
It created three offenses for:

1. Knowingly helping launder money from criminal activity.
2. Knowingly engaging (including by being willfully blind) in a transaction of more than $10,000 that involves property from criminal activity.
3. Structuring transactions to avoid Bank Secrecy Act (BSA) reporting.
   

The Anti-Drug Abuse Act of 1988[5] This act allowed law enforcement the authority to seize assets that were involved in attempts to launder money or commit currency/banking crimes. It also required stict reporting rules for cash purchases of financial instruments, authorized the Treasury to require financial institutions to submit Geographically targeted reports (sometimes referred to as GTO’s Geographically Targeted Operations of the Treasury), directed the Treasury to negotiate international information sharing agreements, and increased the criminal sancitons for tax evasion relating to money laundering crimes.

Section 2532 of the Crime Control Act of 1990[6] First, this act gave the Office of the Comptroller of the Currency (OCC) the authority to request assistance of a foreign banking authority in conducting and investigation, examination or enforcement action. Second, this gave the OCC the power to accommodate similar request in the reverse. The purpose of these exchanges is to allow the investigating body the opportunity to determine if a person has, is or will violate any banking or currency transaction laws or regulations.

Section 206 of The Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991[7] This act allows the OCC to disclose to foreign bank regulators or supervisory authorities information that the OCC may discover.

The Housing and Community Development Act of 1992(Annunzio-Wylie Anti-Money Laundering Act)[8] In addition to allowing regulators to close or seize institutions found guilty of money laundering activities. It also permitted the treasury to require financial institutions and their employees to report suspicious transactions relevant to possible violation of law or regulation. Plus it required financial institutions to adopt anti-money laundering programs.

Money Laundering Suppression Act of 1994[9] This act aimed to reduce and consolidate destination of Currency Transaction reports and it required certain “money transmitting businesses” to register with the Treasury.
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[1] United States Code ,TITLE 18 - CRIMES AND CRIMINAL PROCEDURE , PART I – CRIMES, CHAPTER 95 - RACKETEERING

[2] United States Code ,TITLE 18 - CRIMES AND CRIMINAL PROCEDURE , PART I – CRIMES, CHAPTER 95 - RACKETEERING , Sec. 1957. Engaging in monetary transactions in property derived from specified unlawful activity., found at http://www4.law.cornell.edu/uscode/18/1957.html
[3] The Bank Secrecy Act of 1970, Comptroller of the Currency Administrator of National Banks found at http://www.occ.treas.gov/launder/bsao.htm
[4] The Money Laundering Control Act of 1986, Comptroller of the Currency Administrator of National Banks found at http://www.occ.treas.gov/launder/mlca.htm
[5] The Anti-Drug Abuse Act of 1988, Comptroller of the Currency Administrator of National Banks found at http://www.occ.treas.gov/launder/adaa.htm
[6] Section 2532 of the Crime Control Act of 1990, Comptroller of the Currency Administrator of National Banks found at http://www.occ.treas.gov/launder/sotc.htm
[7] Section 206 of The Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991, Comptroller of the Currency Administrator of National Banks found at http://www.occ.treas.gov/launder/sotf.htm
[8] The Housing and Community Development Act of 1992, Comptroller of the Currency Administrator of National Banks found at http://www.occ.treas.gov/launder/hacd.htm
[9] Money Laundering: United States' Policy Decisions, Bitkower, Amy., 31 May 2001, found at http://members.aol.com/AJBRJJ/decide.html