cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder
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cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder [2022/05/16 18:21] nick ↷ Links adapted because of a move operation |
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| ====== 4.5.4 Money Laundering ====== | ====== 4.5.4 Money Laundering ====== | ||
| - | [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:start| Return to National Security Considerations]] | + | |< 100% >| |
| + | | [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:start| Return to National Security Considerations]] | <WRAP> | ||
| + | <html><b> | ||
| + | <a href="mailto:[email protected]?Subject=OMG's CBDC WG Response: | ||
| + | 4.5.4 Money Laundering | ||
| + | ">Provide Feedback</a></b> | ||
| + | </html> | ||
| + | </WRAP> | | ||
| ===== Overview ===== | ===== Overview ===== | ||
| [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder| Return to Top]] | [[cbdc:public:cbdc_omg:04_doc:15_common:48_natsec:40_launder| Return to Top]] | ||
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| The U.S. Treasury, Financial Crimes Enforcement Network provides the following overview of the problem with [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:m:money_laundering | Money Laundering]]: | The U.S. Treasury, Financial Crimes Enforcement Network provides the following overview of the problem with [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:m:money_laundering | Money Laundering]]: | ||
| - | : // Money Laundering is the process of making illegally-gained proceeds (i.e. "dirty money") appear legal (i.e. "clean"). Typically, it involves three steps: placement, layering and integration. First, the illegitimate funds are furtively introduced into the legitimate financial system. Then, the money is moved around to create confusion, sometimes by wiring or transferring through numerous accounts. Finally, it is integrated into the financial system through additional transactions until the "dirty money" appears "clean." Money laundering can facilitate crimes such as drug trafficking and terrorism, and can adversely impact the global economy.// | + | : // Money Laundering is the process of making illegally-gained proceeds (i.e. "dirty money") appear legal (i.e. "clean"). Typically, it involves three steps: placement, layering and integration. First, illegitimate funds are furtively introduced into the legitimate financial system. Then, the money is moved around to create confusion, sometimes by wiring or transferring through numerous accounts. Finally, it is integrated into the financial system through additional transactions until the "dirty money" appears "clean." Money laundering can facilitate crimes such as drug trafficking and terrorism, and can adversely impact the global economy.// |
| : //In its mission to "safeguard the financial system from the abuses of financial crime, including terrorist financing, money laundering, and other illicit activity," the Financial Crimes Enforcement Network acts as the designated administrator of the Bank Secrecy Act (BSA). The BSA was established in 1970 and has become one of the most important tools in the fight against money laundering. Since then, numerous other laws have enhanced and amended the BSA to provide law enforcement and regulatory agencies with the most effective tools to combat money laundering. An index of anti-money laundering laws since 1970 with their respective requirements and goals is listed below in chronological order.// | : //In its mission to "safeguard the financial system from the abuses of financial crime, including terrorist financing, money laundering, and other illicit activity," the Financial Crimes Enforcement Network acts as the designated administrator of the Bank Secrecy Act (BSA). The BSA was established in 1970 and has become one of the most important tools in the fight against money laundering. Since then, numerous other laws have enhanced and amended the BSA to provide law enforcement and regulatory agencies with the most effective tools to combat money laundering. An index of anti-money laundering laws since 1970 with their respective requirements and goals is listed below in chronological order.// | ||
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| <figure moneyLaunderingScheme> | <figure moneyLaunderingScheme> | ||
| - | {{ :cbdc:private:cbdc_omg:04_doc:15_common:48_natsec:screen_shot_2022-04-07_at_9.12.17_am.png?500 |}} | + | {{ cbdc:04_doc:15_common:48_natsec:screen_shot_2022-04-07_at_9.12.17_am.png?500 |}} |
| <caption>Basic Money Laundering Scheme(( | <caption>Basic Money Laundering Scheme(( | ||
| Virtual Currencies in the Money Laundering Scheme, | Virtual Currencies in the Money Laundering Scheme, | ||
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| To prove a violation of § 1956(a)(1), the prosecutor must prove, either by direct or circumstantial evidence, that the defendant knew that the property involved was the proceeds of any felony under State, Federal or foreign law. The prosecutor need not show that the defendant knew the specific crime from which the proceeds were derived; the prosecutor must prove only that the defendant knew that the property was illegally derived in some way. See § 1956(c)(1). | To prove a violation of § 1956(a)(1), the prosecutor must prove, either by direct or circumstantial evidence, that the defendant knew that the property involved was the proceeds of any felony under State, Federal or foreign law. The prosecutor need not show that the defendant knew the specific crime from which the proceeds were derived; the prosecutor must prove only that the defendant knew that the property was illegally derived in some way. See § 1956(c)(1). | ||
| - | The prosecutor must also prove that the defendant initiated or concluded, or participated in initiating or concluding, a financial transaction. A "transaction" is defined in § 1956(c)(3) as a purchase, sale, loan, pledge, gift, transfer, delivery, other disposition, and with respect to a financial institution, a deposit, withdrawal, transfer between accounts, loan, exchange of currency, extension of credit, purchase or sale safe-deposit box, or any other payment, transfer or delivery by, through or to a financial institution. | + | The prosecutor must also prove that the defendant initiated or concluded, or participated in initiating or concluding, a financial transaction. A "transaction" is defined in § 1956(c)(3) as a purchase, sale, loan, pledge, gift, transfer, delivery, other disposition, and with respect to a financial institution, a deposit, withdrawal, transfer between accounts, loan, exchange of currency, an extension of credit, purchase or sale safe-deposit box, or any other payment, transfer or delivery by, through or to a financial institution. |
| A "financial transaction" is defined in § 1956(c)(4) as a transaction that affects interstate or foreign commerce and: (1) involves the movement of funds by wire or by other means; (2) involves the use of a monetary instrument; or (3) involves the transfer of title to real property, a vehicle, a vessel or an aircraft; or (4) involves the use of a financial institution which is engaged in, or the activities of which affect, interstate or foreign commerce. | A "financial transaction" is defined in § 1956(c)(4) as a transaction that affects interstate or foreign commerce and: (1) involves the movement of funds by wire or by other means; (2) involves the use of a monetary instrument; or (3) involves the transfer of title to real property, a vehicle, a vessel or an aircraft; or (4) involves the use of a financial institution which is engaged in, or the activities of which affect, interstate or foreign commerce. | ||
cbdc/public/cbdc_omg/04_doc/15_common/48_natsec/40_launder.1652739694.txt.gz · Last modified: 2022/05/16 18:21 by nick
