NCJ Number
210806
Journal
American Criminal Law Review Volume: 42 Issue: 2 Dated: Spring 2005 Pages: 699-720
Date Published
2005
Length
22 pages
Annotation
This article describes the Federal statute criminalizing money laundering as well as the common defenses and penalties associated with the offense.
Abstract
The Money Laundering Control Act (Act) of 1986 criminalized any monetary transaction in which the funds were knowingly derived through unlawful activity. The Act targets transactions through financial institutions because the main goal of the Act is to prohibit criminally obtained monetary transactions exceeding $10,000. The Act consists of two sections of Title 18 of the United States Code, Sections 1956 and 1957, which are described in turn as addressing the intentional transportation or transfer of monetary funds derived from unlawful activities and any transactions involving property exceeding $10,000 that was derived from unlawful activities. Prosecutors must prove four main elements to win a conviction under the Act: (1) knowledge; (2) the existence of proceeds derived from an unlawful activity; (3) a financial transaction; and (4) intent. Three main theories have been used in defense against prosecutions under the Act: (1) constitutional vagueness; (2) double jeopardy; and (3) impermissibility of the congressional act. The impermissibility of the congressional act argument holds that the money laundering statutes are an impermissible act of Congress. Finally, the criminal and civil penalties set out for money laundering offenses are reviewed. Footnotes