Financial Crime World

Strengthening Anti-Money Laundering Measures in the United States

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The United States government has taken a significant step in its ongoing battle against money laundering, terrorism financing, and other financial crimes. A new law aims to strengthen anti-money laundering measures and enhance international cooperation in these efforts.

Key Provisions of the Law

  • Requires foreign governments to include the name of the originator in wire transfer instructions sent to the United States and other countries.
  • Introduces criminal penalties for corrupt government officials who accept bribes or engage in other corrupt activities while carrying out their official duties.
  • Financial institutions that fail to comply with orders to terminate accounts linked to illegal activity can face significant fines.

Improving Record-Keeping and Reporting Requirements

  • Businesses that handle large amounts of cash must now report these transactions to the authorities.
  • The law makes it illegal to structure transactions in a way that evades reporting requirements.
  • Financial institutions are required to report suspicious transactions and establish anti-money laundering programs.

Expanding Anti-Money Laundering Programs

  • Money Services Businesses (MSBs) - such as informal value transfer systems - are now included in the definition of a financial institution.
  • Financial institutions are required to report suspicious transactions and establish anti-money laundering programs.

Increased Penalties for Violations

  • The law increases civil and criminal penalties for money laundering.
  • New penalties are introduced for violations of geographic targeting orders and certain record-keeping requirements.

Supporting the War on Terrorism

  • The law instructs US Executive Directors of international financial institutions to use their voice and vote to support countries that have taken action against terrorism.
  • These directors are also required to provide ongoing auditing of disbursements made from their institutions to ensure that no funds are paid to individuals who commit or support terrorist activities.

Conclusion

The legislation is seen as a major step forward in the fight against money laundering and financial crimes. “This law will help us disrupt the financial networks of criminals and terrorists, and make it harder for them to hide their illegal activities,” said a senior government official.

Sources:

  • [68] Congressional Record
  • [69] 31 USC §5318
  • [70] 18 USC §1956 …and so on.