Money Laundering Physical & Cyber Crime Anti-Terrorism Focus Other Impacts

Uniting & Strengthening America (USA Patriot) Act Controversial Provisions: Controversial Provisions: Expanded Federal investigation powers Expanded Federal investigation powers Detention of aliens, designation of terrorist orgs. Detention of aliens, designation of terrorist orgs. Online surveillance enhancements Online surveillance enhancements Secret searches, Interagency info sharing Secret searches, Interagency info sharing Monitor confidential Atty-Client communications Monitor confidential Atty-Client communications Extends Existing Money Laundering Restrictions Extends Existing Money Laundering Restrictions

What IS Money Laundering? Various practices create illusion of legitimate transactions, disguise origin & movement of $ Various practices create illusion of legitimate transactions, disguise origin & movement of $ Law Enforcement motto: Follow the Money! Law Enforcement motto: Follow the Money! Modern Term originated in 20s-30s gangster era Modern Term originated in 20s-30s gangster era Coin cash flow from numbers racket cleansed through mob-operated coin-op laundries Coin cash flow from numbers racket cleansed through mob-operated coin-op laundries Existed for nearly 4000 yrs Existed for nearly 4000 yrs Hide earnings from despotic govt confiscation & taxes Hide earnings from despotic govt confiscation & taxes Essential to terrorism, illegal drug trade, organized crime, smuggling Essential to terrorism, illegal drug trade, organized crime, smuggling

Money Laundering Methods & Tools Well-known practices but detection is costly Well-known practices but detection is costly Transactions with minimal recordkeeping Transactions with minimal recordkeeping Payments under $10K to avoid Currency Trans. Rpts Payments under $10K to avoid Currency Trans. Rpts Cash used whenever possible Cash used whenever possible Minimize use of checks, wire transfers, credit cards Minimize use of checks, wire transfers, credit cards Legitimate Fronts apparently respectable businesses Legitimate Fronts apparently respectable businesses See See

Anti-Money Laundering Laws

USA Patriot Acts Anti-Money Laundering Provisions Broadens definition of financial institutions regulated under money laundering laws Broadens definition of financial institutions regulated under money laundering laws Requires anti-money laundering programs & training Requires anti-money laundering programs & training Regulates private and correspondent banking Regulates private and correspondent banking FCPA now defines money laundering defined as a form of bribery FCPA now defines money laundering defined as a form of bribery Stiffens civil & criminal penalties for money laundering Stiffens civil & criminal penalties for money laundering