NCJ Number
143690
Journal
American Criminal Law Review Volume: 30 Issue: 3 Dated: (Spring 1993) Pages: 813-846
Date Published
1993
Length
34 pages
Annotation
This review of Federal statutes designed to counter money laundering addresses elements of the offenses, penalties, and relevant Federal sentencing guidelines.
Abstract
Money laundering is the process of concealing the existence, illegal source, or illegal application of income and disguising that income to make it appear legitimate. Money laundering is an indispensable element of organized crime's activities. The most recent legislation designed to counter money laundering is the Federal Money Laundering Control Act of 1986. This act strikes at the profit motive for criminal conduct, finally bringing the proceeds of organized crime well within the reach of Federal law. It is revolutionary in legal and practical concept because of the ways in which it aims to deter, detect, and punish those who launder money. It makes criminal those financial transactions that involve the proceeds of crime, raises asset tracing and forfeiture to a level as significant as incarceration of those convicted, addresses those issues on an international scale, and reinforces the importance attached to the currency reporting requirements of the Bank Secrecy Act and the Internal Revenue Code. The act no only reaches for the proceeds of conduct characteristic of organized crime, but also encompasses many additional criminal offenses that range from espionage, to trading with the enemy, to tax evasion. Five key elements underlie the activities criminalized by the act: knowledge, the existence of a specified unlawful activity, a financial transaction, proceeds, and intent. The criminal penalties of the act consist of imprisonment, fines, and forfeiture; civil sanctions are limited to severe monetary penalties and forfeiture. The Federal Sentencing Guidelines for money laundering and monetary transaction reporting provide for substantial punishment; the maximum term of imprisonment authorized is 20 years. 233 footnotes