NCJ Number
158945
Journal
Inter-American Law Review Volume: 21 Issue: 3 Dated: (Summer 1990) Pages: 637-677
Date Published
1990
Length
41 pages
Annotation
Successful investigations like Operations C-Chase and Polar Car serve as examples of the effectiveness of Federal legislation intended to fight drug trafficking by focusing on money laundering.
Abstract
The Federal effort is linked to two key pieces of legislation. The Bank Records and Foreign Transactions Act of 1970, commonly referred to as the Bank Secrecy Act (BSA), requires the reporting of certain cash transactions to the government. The Money Laundering Control Act (MCLA) of 1986 contains provisions for prosecuting money laundering syndicates. The congressional intent underlying the BSA and the MCLA, implementing regulations, amendments, and administrative and legal obstacles hampering enforcement are reviewed. In particular, amendments to the BSA closed several loopholes in the act's enforcement but left unaddressed the emerging practice of splitting currency transactions to avoid BSA reporting requirements. Problems impeding Federal money laundering enforcement efforts are examined, and recommendations to address these problems and achieve maximum effectiveness from existing legislation are offered. Operations C-Chase and Polar Cap are described as two productive investigations that focused on money laundering. 323 footnotes