NCJ Number
236275
Journal
American Criminal Law Review Volume: 48 Issue: 2 Dated: Spring 2011 Pages: 929-953
Date Published
2011
Length
25 pages
Annotation
This overview of the Federal Money Laundering Control Act of 1986 (the Act) - which created liability for any individual who conducts a monetary transaction knowing that the funds were derived through unlawful activity - addresses elements of the offense, defenses, and sentencing.
Abstract
One of the principal purposes of the Act is to bar all "monetary transactions" in "criminally derived property" that exceed $10,000. In order to achieve this purpose, the Act targets transactions conducted through financial institutions and reaches a broad range of routine commercial transactions that affect commerce. The Act consists of two sections: one that addresses prohibited financial transactions and prohibited financial transportation, along with the authorization of government sting operations; and a second that covers transactions that involve property exceeding $10,000 derived from the specified unlawful activities. The prosecution must prove four elements in order 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. Three theories have been used to defend against prosecutions under the Act: constitutional vagueness, double jeopardy, and constitutional impermissibility. These defenses, however, have been unsuccessful. The Act's offenses carry both civil and criminal penalties. The maximum civil penalty is $10,000 per offense. The criminal penalties consist of imprisonment, fines, and/or forfeiture. The maximum criminal penalties for a violation of section 1957 are imprisonment for 20 years, a fine of $500,000, or twice the value of the monetary instruments or funds laundered (whichever is greater), or both. A violation of section 1957 triggers a 10-year imprisonment, a fine, or both, and can lead to a civil action. 171 notes