Employment & Environment: Money Laundering

Question 1

Employment & Environment:
Money Laundering
Overview

Answer 1

Definition of Money Laundering
- process by which one conceals the existence , illegal source, or illegal application of income and disguises it to make it look legitimate
Bank Security Act of 1970
- requires record keeping and reporting by banks
- report transactions over $10,000
- identify persons conducting such activity
- maintain traceable paper trail

Question 2

Employment & Environment:
Money Laundering
Prohibited Transactions and Transportation

Answer 2

• prohibits the financial transaction itself
• prohibits the transportation of funds for money laundering
• conspiracy to violate is separate offense
• $10,000 max civil penalty and max criminal penalty of 20 years in jail and $500,000 fine OR twice value of laundered money (which ever is greater)

Question 3

Employment & Environment:
Money Laundering
Property Transactions

Answer 3

• must knowingly engage
  Penalties
• max $10,000 civil penalty and criminal punishment of up to 10 years in jail
• auditors are not specifically charged with detecting and reporting money laundering