Money laundering is a common white collar crime that usually occurs within loose business structures. It is the act of transferring money that was raised through any type of criminal activity into a legitimate-seeming source. This criminal activity could be organized crime, drug transactions or white collar crime such as fraud.
Therefore, money laundering is usually very deceptive in nature, and it can be difficult to trace. However, it is treated as a very serious crime when someone has been found to be engaging in the criminal act.
What are the different laws in relation to money laundering?
In the 1970s, the first money laundering laws emerged. They laid out requirements for financial institutions to report some transactions, so that there could be a certain amount of control. All financial institutions must also report any transaction that they deem to be suspicious.
With the introduction of the Money Laundering Control Act of 1986, money laundering became a criminal act. That meant that prosecution was possible, even in regard to very informal transactions, such as the exchange between one person and another.
What regulations are in place??There are now many regulations in place to prevent money laundering from taking place, and to enforce money laundering laws. Only companies that are registered with the Investment Company Act of 1940 need to follow the regulatory laws, however.
If you have been accused of engaging in money laundering, you should take this very seriously. It is important that you take action in order to defend yourself. The more that you understand about the law, the more prepared you will be.
Source: FindLaw, "Money Laundering," accessed March 01, 2018