NCJ Number
153145
Journal
Alabama Law Review Volume: 44 Issue: 3 Dated: (1993) Pages: 669-701
Date Published
1993
Length
33 pages
Annotation
Following an overview of United States money laundering laws, this article outlines some suggested compliance measures that may be taken to reduce the risk of violations and exposure to the legislative sanctions.
Abstract
The summary of U.S. anti-money laundering statutes focuses on cash reporting laws applicable to banks and substantive money laundering prohibition laws applicable to banks. The section of this article that focuses on the management of the money laundering prosecution risks suggests steps in the establishment of an effective compliance program and a track record of cooperation with law enforcement. The discussion suggests some basic compliance measures from the perspective of a bank counsel's ideal proof in mitigating sanctions under the sentencing guidelines or in avoiding loss of the bank's charter under the "death penalty." The first essential step in establishing an effective compliance program is to ensure genuine commitment at the highest level of management. An effective detection system helps to ensure that bank management is receiving the information that can be legally imputed to the corporation under the corporate criminal liability standard, regardless of whether such information is actually conveyed. Other aspects of a compliance program are the application of a diligent "know your customer" policy, due diligence in the credit process, the use of internal controls, and due diligence in an acquisition. Suggestions are also offered for developing a track record of cooperation with the government. 215 footnotes