NCJ Number
231922
Journal
American Criminal Law Review Volume: 47 Issue: 2 Dated: Spring 2010 Pages: 821-845
Date Published
2010
Length
25 pages
Annotation
After presenting an overview of the Federal Money Laundering Control Act of 1986, this article explains elements of offenses under the statute, followed by reviews of defenses that could be mounted against charges and penalties stated in the law and advised under the U.S. Sentencing guidelines.
Abstract
The Federal Money Laundering Control Act of 1986 (the "Act") created liability for any individual who conducts a monetary transaction knowing that the funds were derived through unlawful activity. One of the principal purposes of the Act is to bar all "monetary transactions" in "criminally derived property" that exceed $10,000. The Act targets transactions conducted through financial institutions and reaches a broad range of routine commercial transactions that affect commerce. The article's overview of the statute focuses on the Act's section 1956, which pertains to "transaction" money laundering, "transportation" money laundering, and "sting" operations. It also review the Act's section 1957, which prohibits knowingly engaging or attempting to engage in monetary transactions that involve criminally derived property that has a value greater than $10,000 and is derived from specified unlawful activity. The article's review of elements of the offenses under the Act notes that four elements are required to obtain a conviction under the Act: knowledge, the existence of proceeds derived from a specified unlawful activity, the existence of a financial transaction, and intent. Features of each of these elements are explained. The outline of defenses to charges brought under the Act pertains to constitutional vagueness, double jeopardy, and constitutional impermissibility. The article notes, however, that these defenses have not been successful. The Act's penalties are both civil and criminal. The maximum civil penalty is $10,000 per offense. The criminal penalties consist of imprisonment, fines, and/or forfeiture. 171 notes