US Anti-money laundering legislation

The USA has passed 8 major anti-money laundering laws. This legislation defines how to deal with money laundering and related crime.

These anti-money laundering laws are as follows:

– Bank Secrecy Act of 1970
Provides the requirements for record keeping and reporting by banks, individuals, and some other financial institutions. Obliges the financial systems to file Currency Transaction Reports (“CTRs”) with the Financial Crimes Enforcement Network (“FinCEN”) at the IRS’s Detroit Computing Center for any transactions over USD 10 000 in cash.

– Money Laundering Control Act of 1986
Addresses the prohibition of deposit structuring in order to avoid the USD 10 000 reporting ceiling.

– Anti-Drug Abuse Act of 1988
Requires car dealers and real estate closing personnel to file CTRs for transactions that involve more than USD 10 000. Requires sellers of financial instruments of USD 3 000 or more to verify the identity of the buyer.

– Annunzio-Wylie Anti-Money Laundering Act of 1992
The Suspicious Activity Report (“SAR”) form is established as a replacement for the previously used Form 366 Criminal Referral. SARs are filed with FinCen at the IRS’s Detroit Computing Center.

– Money Laundering Suppression Act of 1994
Money Services Businesses must register with FinCEN. Banking agencies must review and enhance their anti-money laundering training as well asdevelop anti-money laundering examination procedures. Banks are required to establish improved procedures for referring suspected anti-money laundering cases to the appropriate law enforcement officials.

– Intelligence Reform & Terrorism Prevention Act of 2004
Requires specific financial institutions to report cross-border electronic transmittals of funds.

– Money Laundering and Financial Crimes Strategy Act of 1998
The banking agencies are required to include anti-money laundering training in their bank examiner training programs.

– USA Patriot Act
Strengthens customer identification procedures for financial institution. Financial institutions are required to establish adequate due diligence procedures for offshore and foreign bank accounts. Prevents the US financial institutions from having business with foreign shell banks.

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