Money Laundering is the practice of engaging in financial transactions in order to conceal the identity, source, and/or destination of money, and is a main operation of the underground economy.
Historically the term "money laundering" was applied only to financial transactions related to organized crime, but today its definition is often expanded by government regulators to encompass any financial transaction which generates an asset or a value as the result of an illegal act, and may involve actions such as tax evasion or false accounting.
Starting in 1970 Congress passed a series of laws attempting to prevent "dirty" money from entering the US financial system in the first place. These laws, collectively known as the Bank Secrecy Act (BSA, 31 USC 5311–5330), require virtually all financial institutions to report cash transactions in excess of US$10,000 on a currency transaction report (CTR) which identifies the individual making the transaction as well as the source of the cash. The US is one of the few countries in the world to require reporting of all cash transactions over a certain limit, although certain businesses can be exempt from the requirement.
Additionally, financial institutions must file a Suspicious Activity Report (SAR) if they know or suspect that the funds either come from illegal activity or disguise funds from illegal activity, are structured to evade BSA requirements or appear to serve no known lawful purpose. Any attempt to circumvent the BSA (i.e., by breaking up cash deposits to amounts lower than US$10,000 and depositing them on different days or at different locations) also violates the law.
In addition to the BSA, the U.S. requires individuals to report the transportation of cash in excess of US$10,000 across its borders
The Money Laundering Control Act of 1986 further defined money laundering as a federal crime. That legislation consists of two sections, 18 U.S.C. § 1956 and 18 U.S.C. § 1957, and prohibits individuals from engaging in transactions with the proceeds from certain specific crimes, known as "specified unlawful activities" (SUAs); the law also requires that an individual conceal the source, ownership or control of the funds. There is no minimum dollar amount, and no requirement for the transaction to succeed in actually disguising the money. Moreover, a "financial transaction" has been broadly defined and does not have to involve a financial institution or even a business. Merely passing money from one person to another with the intent to disguise the source of the money has been deemed a financial transaction under the law.
Finally, the USA PATRIOT Act of 2001 expanded the scope of prior laws to more types of financial institutions, added a focus on terrorist financing, and specified that financial institutions take specific actions to "know your customer" (KYC).
Not only are money laundering prosecutions becoming more common, the penalties are often quite severe. Many people have concerns about the apparently broad application of these statutes, especially when they reach into legitimate business activities. A common example of this concern is a scenario where an individual or business handles money with no knowledge of any criminal origin, which could result in prosecution for money laundering in federal court.
It is a common tactic for a federal prosecutor to include money laundering and forfeiture allegations in an indictment. The money laundering crimes often carry harsher penalties than the underlying crime that created the money in the first place. Furthermore, prosecutors use these crimes to try and take away the defendants assets, as well as putting him or her in jail.
If you have been charged under the Bank Secrecy Act, the Money Laundering Control Act or the USA Patriot Act it is critical to your case that you hire effective legal representation right away: do not risk having your rights violated by neglecting to retain a skilled, experienced criminal defense attorney. The Houston Texas law office of Kuniansky & Associates will work diligently to ensure your rights are protected. Contact the offices of Kuniansky and Associates at 713-622-8333 or visit www.money-laundering-attorney.com for a free consultation.
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