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Federal Money Laundering Regulation: Banking, Corporate and Securities Compliance, Second Edition

Federal Money Laundering Regulation: Banking, Corporate and Securities Compliance, Second Edition

Federal Money Laundering Regulation: Banking, Corporate and Securities Compliance, Second Edition

Contributor(s)
By Steven Mark Levy
Update Frequency
Updated annually
Last Update
12/19/2016
Product Line
Wolters Kluwer Legal & Regulatory U.S.
Available formats

Details

Federal Money Laundering Regulation: Banking, Corporate and Securities Compliance is your complete guide to understanding and complying with all U.S. statutes, regulations and court decisions governing money laundering activity. This valuable desk reference provides in-depth analysis and guidance on recordkeeping and reporting requirements, anti- money laundering compliance programs, money laundering crimes, asset forfeitures, and state and international measures against money laundering and terrorist financing. This guide is especially aimed at law firms and corporate counsel representing banks, insurance companies, securities broker-dealers, and other financial institutions, as well as the criminal bar, public accountants, and compliance officers.

The Second Edition of Federal Money Laundering Regulation reflects a substantial reorganization and expansion of the previous edition, and adds three new chapters covering: terrorist financing (Chapter 5); OFAC compliance (Chapter 10); and special measures against foreign jurisdictions or financial institutions deemed to be “of primary money laundering concern” (Chapter 30). The remaining chapters have been extensively rewritten and reorganized to reflect major regulatory developments.

Highlights include:

  • Techniques used by federal, state, and local politicians to launder money.
  • The new role of the Federal Housing Finance Agency (FHFA) to ensure anti-money laundering compliance by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
  • Designing an adequate Customer Identification Program (CIP) for verifying the identity of persons seeking to open an account and checking customer names against terrorist lists.
  • Responding to an information request under Section 314(a) of the Patriot Act.
  • Exercising due diligence when opening and managing correspondent accounts for foreign banks and enhanced due diligence for certain correspondent accounts.
  • Blocking (freezing) assets and property of OFAC-designated countries, entities or individuals, and reporting the blocked transactions.
  • Using automated systems to facilitate BSA reporting, including flagging suspicious activity and large currency transactions.

ISBN: 9781454859765
Pages: 1592
SKU: 1454859768
ETA: Available: Item ships in 3-5 Business Days

PART I: BACKGROUND

Chapter 1 - UNDERSTANDING MONEY LAUNDERING

  • § 1.01 Introduction
  • § 1.02 History
  • § 1.03 Definition
  • § 1.04 Scope
  • § 1.05 Why Launder Money?
  • § 1.06 Amount of Money Laundered
  • § 1.07 Why Combat Money Laundering?
  • § 1.08 Financial Institution Obligations
  • § 1.09 Regulatory Burden
  • § 1.10 Money Laundering as a Crime
  • § 1.11 Financial Investigations
  • § 1.12 National Money Laundering Strategy
  • § 1.13 Failure of Resolve?
  • § 1.14 Annual Anti-Money Laundering Conferences

Chapter 2 - MONEY LAUNDERING METHODS

  • § 2.01 How Money Is Laundered
  • § 2.02 Three Stages of Money Laundering
  • § 2.03 Bulk Cash Smuggling
  • § 2.04 Banks and Other Depositary Institutions
  • § 2.05 Gaming Industry
  • § 2.06 Money Services Businesses (MSBs)
  • § 2.07 Securities Industry
  • § 2.08 Insurance Industry
  • § 2.09 Precious Metals and Jewels
  • § 2.10 Front Companies
  • § 2.11 Trade-Based Money Laundering
  • § 2.12 Shell Companies
  • § 2.13 Lawyers
  • § 2.14 Accountants
  • § 2.15 Informal Value Transfer Systems
  • § 2.16 Money Laundering by Lawmakers

Chapter 3 - MONEY LAUNDERING LEGAL FRAMEWORK

  • § 3.01 Overview
  • § 3.02 Bank Secrecy Act (BSA)
  • § 3.03 Comprehensive Crime Control Act (CCCA) of 1984
  • § 3.04 Money Laundering Control Act (MLCA) of 1986
  • § 3.05 Money Laundering Prosecution Improvements Act of 1988
  • § 3.06 Crime Control Act of 1990
  • § 3.07 Annunzio-Wylie Anti-Money Laundering Act (1992)
  • § 3.08 Money Laundering Suppression Act (MLSA) of 1994
  • § 3.09 Money Laundering and Financial Crimes Strategy Act of 1998
  • § 3.10 Civil Asset Forfeiture Reform Act (CAFRA) of 2000
  • § 3.11 USA Patriot Act (2001)
  • § 3.12 Suppression of the Financing of Terrorism Convention Implementation Act of 2002
  • § 3.13 Intelligence Reform and Terrorism Prevention Act of 2004
  • § 3.14 USA Patriot Improvement and Reauthorization Act of 2005
  • § 3.15 Credit Card Accountability Responsibility and Disclosure Act of 2009

Chapter 4 - ROLE OF FEDERAL AGENCIES

  • § 4.01 Summary
  • § 4.02 Financial Crimes Enforcement Network (FinCEN)
  • § 4.03 Internal Revenue Service (IRS)
  • § 4.04 Banking Agencies
  • § 4.05 Securities and Exchange Commission (SEC)
  • § 4.06 Commodity Futures Trading Commission (CFTC)
  • § 4.07 Self-Regulatory Organizations (SROs)
  • § 4.08 Federal Housing Finance Agency (FHFA)
  • § 4.09 U.S. Customs and Border Protection (CBP)
  • § 4.10 U.S. Immigration and Customs Enforcement (ICE)
  • § 4.11 Department of Justice
  • § 4.12 Drug Enforcement Administration (DEA)
  • § 4.13 Office of Foreign Assets Control (OFAC)
  • § 4.14 BSA Advisory Group (BSAAG)

Chapter 5 - TERRORIST FINANCING

  • § 5.01 Money Laundering and Terrorist Financing
  • § 5.02 Terrorist Funding Needs
  • § 5.03 Terrorist Funding Sources
  • § 5.04 Moving Funds
  • § 5.05 Terrorist Financing Crimes
  • § 5.06 Executive Order 13224
  • § 5.07 Private Right of Action
  • § 5.08 OFAC Sanctions
  • § 5.09 Constitutional Issues
  • § 5.10 Role of Financial Institutions

PART II: PROGRAMS

Chapter 6 - ANTI-MONEY LAUNDERING PROGRAM

  • § 6.01 Purpose and Importance
  • § 6.02 Statute
  • § 6.03 Regulations
  • § 6.04 General Considerations
  • § 6.05 Penalties
  • § 6.06 Definition of Financial Institution
  • § 6.07 Banks, Savings Associations, and Credit Unions
  • § 6.08 Casinos
  • § 6.09 Money Services Businesses
  • § 6.10 Brokers or Dealers in Securities
  • § 6.11 Mutual Funds
  • § 6.12 Insurance Companies
  • § 6.13 Futures Commission Merchants and Introducing Brokers
  • § 6.14 Dealers in Precious Metals, Stones, Jewels
  • § 6.15 Operators of Credit Card Systems
  • § 6.16 Loan or Finance Companies
  • § 6.17 Housing Government Sponsored Enterprises
  • § 6.18 Other Financial Institutions

Chapter 7 - CUSTOMER IDENTIFICATION PROGRAM

  • § 7.01 Purpose and Importance
  • § 7.02 Statute
  • § 7.03 Regulations
  • § 7.04 General Considerations
  • § 7.05 Penalties
  • § 7.06 Banks
  • § 7.07 Casinos
  • § 7.08 Money Services Businesses
  • § 7.09 Brokers or Dealers in Securities
  • § 7.10 Mutual Funds
  • § 7.11 Insurance Companies
  • § 7.12 Futures Commission Merchants and Introducing Brokers
  • § 7.13 Dealers in Precious Metals, Stones, Jewels
  • § 7.14 Operators of Credit Card Systems
  • § 7.15 Loan or Finance Companies

Chapter 8 - INFORMATION SHARING

  • § 8.01 Introduction
  • § 8.02 Statute
  • § 8.03 Regulations
  • § 8.04 Definitions
  • § 8.05 Information Requests by Authorities
  • § 8.06 Responding to an Information Request
  • § 8.07 No Other Action Required
  • § 8.08 Relation to Customer Privacy Laws
  • § 8.09 Critique of the Information Request System
  • § 8.10 Flow of Information from the Government
  • § 8.11 Sharing Among Financial Institutions
  • § 8.12 Liability Safe Harbor

Chapter 9 - DUE DILIGENCE FOR CORRESPONDENT AND PRIVATE BANKING

  • § 9.01 Correspondent Banking and Money Laundering
  • § 9.02 Due Diligence for Correspondent Accounts for Foreign Banks
  • § 9.03 Correspondent Accounts—Basic Due Diligence
  • § 9.04 Correspondent Accounts—Enhanced Due Diligence
  • § 9.05 Correspondent Accounts—Record of Owners/Agent
  • § 9.06 Correspondent Accounts—Additional Requirements
  • § 9.07 Correspondent Accounts—Foreign Shell Banks
  • § 9.08 Due Diligence for Private Banking Accounts for Non-U.S. Persons
  • § 9.09 Government Access to Foreign Bank Records
  • § 9.10 Forfeiture from Interbank Account Held by Foreign Bank

Chapter 10 -OFAC COMPLIANCE

  • § 10.01 About OFAC
  • § 10.02 Legal Framework
  • § 10.03 Relation to Anti-Money Laundering
  • § 10.04 Sanctions Against Countries
  • § 10.05 Sanctions Against Listed Persons (SDNs)
  • § 10.06 Blocked Transactions
  • § 10.07 Prohibited Transactions
  • § 10.08 Reports
  • § 10.09 Licenses
  • § 10.10 Compliance Program
  • § 10.11 Examination
  • § 10.12 Enforcement
  • § 10.13 Civil Penalties
  • § 10.14 Criminal Penalties

PART III: RECORDS AND REPORTS

Chapter 11 - RECORDKEEPING

  • § 11.01 Summary
  • § 11.02 Sale of Monetary Instruments, $3,000 to $10,000
  • § 11.03 Foreign Financial Accounts
  • § 11.04 Extensions of Credit and International Transfers
  • § 11.05 Funds (Wire) Transfers
  • § 11.06 The Travel Rule
  • § 11.07 Geographic Targeting Orders
  • § 11.08 Additional Records: Banks
  • § 11.09 Additional Records: Securities Broker-Dealers
  • § 11.10 Additional Records: Casinos and Card Clubs
  • § 11.11 Additional Records: Money Services Businesses
  • § 11.12 Record Retention
  • § 11.13 Enforcement

Chapter 12 - REPORTING

  • § 12.01 Introduction
  • § 12.02 Overview of Reporting Requirements
  • § 12.03 Each Report Stands Independent
  • § 12.04 How Government Uses the Information
  • § 12.05 Re-Dissemination Guidelines
  • § 12.06 BSA E-Filing
  • § 12.07 Getting Answers to Questions
  • § 12.08 Requesting an Administrative Ruling
  • § 12.09 Using Automated Systems to Facilitate Reporting

Chapter 13 - CURRENCY TRANSACTION REPORT (CTR)

  • § 13.01 Introduction
  • § 13.02 Statute
  • § 13.03 Regulations
  • § 13.04 Constitutionality
  • § 13.05 General Considerations
  • § 13.06 Filing Obligation—Financial Institutions Other Than Casinos
  • § 13.07 Filing Obligation—Casinos
  • § 13.08 Filing Obligation—Customers
  • § 13.09 Aggregation of Currency Transactions
  • § 13.10 Aggregation—Casinos
  • § 13.11 Structured Transactions
  • § 13.12 Transactions of Exempt Persons
  • § 13.13 Geographic Targeting Order
  • § 13.14 Verifying Customer Identity
  • § 13.15 Completing the CTR
  • § 13.16 Filing the CTR
  • § 13.17 Penalties

Chapter 14 - SUSPICIOUS ACTIVITY REPORT (SAR)

  • § 14.01 Introduction
  • § 14.02 Statute
  • § 14.03 Regulations
  • § 14.04 Purpose and Importance
  • § 14.05 Former Regulatory Scheme
  • § 14.06 Definition of Transaction
  • § 14.07 Reportable Transactions
  • § 14.08 Marijuana-Related Transactions
  • § 14.09 Confidentiality of SARs
  • § 14.10 Liability Safe Harbor
  • § 14.11 Corrected SARs
  • § 14.12 Penalties
  • § 14.13 Banks
  • § 14.14 Casinos
  • § 14.15 Money Services Businesses
  • § 14.16 Securities Broker-Dealers
  • § 14.17 Mutual Funds
  • § 14.18 Insurance Companies
  • § 14.19 Futures Industry
  • § 14.20 Dealers in Precious Metals, Stones, Jewels
  • § 14.21 Operators of Credit Card Systems
  • § 14.22 Loan or Finance Companies
  • § 14.23 Housing Government Sponsored Enterprises
  • § 14.24 U.S. Postal Service

Chapter 15 -CURRENCY RECEIVED IN TRADE OR BUSINESS (FORM 8300)

  • § 15.01 Statute
  • § 15.02 Purpose
  • § 15.03 Sections 5331 and 6050I Compared
  • § 15.04 Regulations
  • § 15.05 Compare: Currency Transaction Report
  • § 15.06 Definition of Currency
  • § 15.07 Who Must File
  • § 15.08 Multiple Payments
  • § 15.09 Exceptions to Reporting
  • § 15.10 Structuring Prohibited
  • § 15.11 Using Form 8300 for Suspicious Transactions
  • § 15.12 Completing Form 8300
  • § 15.13 When and Where to File
  • § 15.14 Statement to Be Provided
  • § 15.15 Examination for Compliance
  • § 15.16 Penalties

Chapter 16 - REPORT OF INTERNATIONAL TRANSPORTATION OF CURRENCY (CMIR)

  • § 16.01 Understanding CMIR Reporting
  • § 16.02 Statute
  • § 16.03 Regulations
  • § 16.04 Definitions
  • § 16.05 Persons Required to File
  • § 16.06 Aggregation
  • § 16.07 Structuring
  • § 16.08 Completing the CMIR
  • § 16.09 Filing the CMIR
  • § 16.10 Searches
  • § 16.11 Civil Enforcement
  • § 16.12 Criminal Prosecution
  • § 16.13 Bulk Cash Smuggling

Chapter 17 - FOREIGN BANK ACCOUNT REPORT (FBAR)

  • § 17.01 Introduction
  • § 17.02 Statute
  • § 17.03 Regulations
  • § 17.04 General Considerations
  • § 17.05 Persons Required to File
  • § 17.06 Reportable Accounts
  • § 17.07 Special Rules
  • § 17.08 Completing the FBAR
  • § 17.09 Filing the FBAR
  • § 17.10 Amending the FBAR
  • § 17.11 Recordkeeping
  • § 17.12 Examination for Compliance
  • § 17.13 Civil Penalties
  • § 17.14 Criminal Penalties
  • § 17.15 Statute of Limitations
  • § 17.16 IRS Initiatives

Chapter 18 - REGISTRATION OF MONEY SERVICES BUSINESS

  • § 18.01 Introduction
  • § 18.02 The Money Services Industry
  • § 18.03 Statute and Regulations
  • § 18.04 Persons Required to Register
  • § 18.05 Persons Not Required to Register
  • § 18.06 Completing FinCEN Form 107
  • § 18.07 Persons Responsible for Filing
  • § 18.08 When and Where to File
  • § 18.09 Supporting Documentation
  • § 18.10 List of Agents
  • § 18.11 Access to Registration Records
  • § 18.12 Protecting Confidential Information
  • § 18.13 Ceasing to Be an MSB
  • § 18.14 Examination for Compliance
  • § 18.15 Civil Penalties
  • § 18.16 Criminal Penalties—18 U.S.C. § 1960

PART IV: CRIMES

Chapter 19 - MONEY LAUNDERING OFFENSES GENERALLY

  • § 19.01 Overview
  • § 19.02 Why Understand Money Laundering Crimes?
  • § 19.03 Road to Criminalizing Money Laundering
  • § 19.04 Why Prosecutors Favor Money Laundering Charges
  • § 19.05 Prosecutorial Approval, Consultation, and Notification Requirements
  • § 19.06 Prosecutorial Abuse
  • § 19.07 Expert Testimony
  • § 19.08 Corporate Criminal Liability
  • § 19.09 Specified Unlawful Activity (SUA)

Chapter 20 - DOMESTIC FINANCIAL TRANSACTION—1956(a)(1)

  • § 20.01 Introducing Section 1956(a)(1)
  • § 20.02 Elements
  • § 20.03 Each Transaction a Separate Violation
  • § 20.04 Multiplicity
  • § 20.05 Duplicity
  • § 20.06 Definition of Transaction
  • § 20.07 Definition of Financial Transaction
  • § 20.08 Affecting Commerce
  • § 20.09 Conducts a Transaction
  • § 20.10 Proceeds
  • § 20.11 Proceeds—United States v. Santos
  • § 20.12 Proceeds Must Exist Before They Can Be Laundered
  • § 20.13 Knowledge
  • § 20.14 Intent to Promote
  • § 20.15 Intent to Evade Taxes
  • § 20.16 Concealment Laundering
  • § 20.17 Avoiding Reporting Requirement
  • § 20.18 Attempt
  • § 20.19 Aiding and Abetting
  • § 20.20 Penalties
  • § 20.21 Jurisdiction Over Foreign Persons

Chapter 21 - INTERNATIONAL TRANSPORTATION—1956(a)(2)

  • § 21.01 Introducing Section 1956(a)(2)
  • § 21.02 Elements
  • § 21.03 Transportation, Transmission, or Transfer
  • § 21.04 Each Transfer a Separate Violation
  • § 21.05 Monetary Instrument or Funds
  • § 21.06 Intent to Promote
  • § 21.07 Knowledge of Unlawful Proceeds
  • § 21.08 Knowledge of Design to Conceal or Disguise or to Avoid Reporting
  • § 21.09 Willful Blindness
  • § 21.10 International “Sting” Operations
  • § 21.11 Jury Instructions
  • § 21.12 Attempt
  • § 21.13 Aiding and Abetting
  • § 21.14 Penalties

Chapter 22 - UNDERCOVER INVESTIGATION—1956(a)(3)

  • § 22.01 Introducing Section 1956(a)(3)
  • § 22.02 Illustrations of Undercover Investigations
  • § 22.03 Definition of Financial Transaction
  • § 22.04 Definition of Represented
  • § 22.05 Intent to Promote
  • § 22.06 Intent to Conceal or Disguise
  • § 22.07 Intent to Avoid Reporting
  • § 22.08 Entrapment
  • § 22.09 Outrageous Government Conduct
  • § 22.10 First-Time Offender
  • § 22.11 Ignorance of the Law
  • § 22.12 Attempt
  • § 22.13 Aiding and Abetting
  • § 22.14 Penalties

Chapter 23 - MONETARY TRANSACTION IN CRIME PROCEEDS—1957

  • § 23.01 Introducing Section 1957
  • § 23.02 Jurisdiction
  • § 23.03 Elements
  • § 23.04 Compare: Section 1956(a)(1)
  • § 23.05 Monetary Transaction
  • § 23.06 Monetary Transaction—Attorneys Fee Exception
  • § 23.07 Effect on Commerce
  • § 23.08 Criminally Derived Property
  • § 23.09 Value Greater Than $10,000
  • § 23.10 Value Greater Than $10,000—Commingling
  • § 23.11 Knowledge
  • § 23.12 Knowledge—Willful Blindness
  • § 23.13 Derived from Specified Unlawful Activity
  • § 23.14 Attempt
  • § 23.15 Aiding and Abetting
  • § 23.16 Statute of Limitations
  • § 23.17 Penalties

Chapter 24 - CONSPIRACY TO COMMIT MONEY LAUNDERING

  • § 24.01 Introducing the Crime of Conspiracy
  • § 24.02 Statutes
  • § 24.03 Venue
  • § 24.04 Elements
  • § 24.05 Agreement
  • § 24.06 Rule of Consistency
  • § 24.07 Unlawful Object
  • § 24.08 Knowledge
  • § 24.09 Knowledge—Willful Blindness
  • § 24.10 Intent
  • § 24.11 Overt Act
  • § 24.12 Proving the Conspiracy
  • § 24.13 Prosecuting Laundering as a Drug Conspiracy
  • § 24.14 Pinkerton Rule
  • § 24.15 Withdrawal
  • § 24.16 Statute of Limitations
  • § 24.17 Double Jeopardy
  • § 24.18 Penalties
  • § 24.19 Restitution

PART V: FORFEITURE

Chapter 25 - FORFEITURE—GENERAL CONSIDERATIONS

  • § 25.01 Introduction
  • § 25.02 Administrative vs. Criminal and Civil
  • § 25.03 Historical Background
  • § 25.04 Forfeiture Statutes—Criminal
  • § 25.05 Forfeiture Statutes—Civil
  • § 25.06 Civil Forfeiture Abuse
  • § 25.07 Civil Asset Forfeiture Reform Act of 2000 (CAFRA)
  • § 25.08 Supreme Court Cases

Chapter 26 - CRIMINAL FORFEITURE

  • § 26.01 Overview
  • § 26.02 Statutes
  • § 26.03 Procedure
  • § 26.04 Standard of Proof
  • § 26.05 Mandatory Component of Sentence
  • § 26.06 Ownership Interest
  • § 26.07 Money Judgment Forfeiture
  • § 26.08 Property Subject to Forfeiture
  • § 26.09 Substitute Assets
  • § 26.10 Joint and Several Liability
  • § 26.11 Excessive Fines Clause
  • § 26.12 Offset
  • § 26.13 Third Party Rights
  • § 26.14 Third Party Rights—Procedure
  • § 26.15 Pretrial Restraint of Assets

Chapter 27 - CIVIL FORFEITURE

  • § 27.01 Introduction
  • § 27.02 Statutes
  • § 27.03 Disfavored Remedy?
  • § 27.04 Need for an Underlying Offense
  • § 27.05 Property Involved In or Traceable To
  • § 27.06 Funds in Interbank Account Held by Foreign Bank
  • § 27.07 Property Used to Facilitate
  • § 27.08 Fungible Property—Section 984
  • § 27.09 Innocent Owner Defense
  • § 27.10 Excessive Fines Clause
  • § 27.11 Double Jeopardy
  • § 27.12 Statute of Limitations
  • § 27.13 Transfer of Forfeited Assets to Foreign Country
  • § 27.14 Terrorist Assets—Section 981(a)(1)(G)
  • § 27.15 Terrorist Assets—IEEPA
  • § 27.16 Procedure

PART VI: STATE AND INTERNATIONAL

Chapter 28 - STATE LEGISLATION

  • § 28.01 Introduction
  • § 28.02 Role of State and Local Government
  • § 28.03 Federal-State Cooperation
  • § 28.04 State Money Laundering Legislation
  • § 28.05 Regulation of Money Services Businesses (MSBs)

Chapter 29 - INTERNATIONAL STANDARDS

  • § 29.01 Introduction
  • § 29.02 Key Elements of an Effective Program
  • § 29.03 Multinational Conventions
  • § 29.04 Financial Action Task Force (FATF)
  • § 29.05 FATF-Style Regional Bodies
  • § 29.06 Egmont Group of Financial Intelligence Units (FIUs)
  • § 29.07 Basel Committee on Banking Supervision
  • § 29.08 International Association of Insurance Supervisors
  • § 29.09 International Monetary Fund (IMF)
  • § 29.10 International Organization of Securities Commissions
  • § 29.11 Wolfsberg Group

Chapter 30 - OF PRIMARY MONEY LAUNDERING CONCERN

  • § 30.01 Introduction
  • § 30.02 Definition of Primary Money Laundering Concern
  • § 30.03 Types of Special Measures
  • § 30.04 Procedure for Selecting Special Measures
  • § 30.05 Specific Jurisdictions and Financial Institutions
  • § 30.06 FinCEN Interpretations

Table of Cases

Index

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