Money Laundering, Asset Forfeiture, Wire Transfer Flashcards
What are the Stages of money laundering?
Placement
Layering
Integration
In terms of money laundering what is placement?
the process of placing illegally obtained funds into the normal financial system
The process of moving funds through various financial institutions and countries using multiple entities in order to make the tracing the flow of funds more difficult for the investigator is known as
Layering
The return of funds to the perpetrator of the criminal activity in a form that makes the funds appear to have come from a legitimate source is known as
Integration
Which Title makes it a crime to knowingly conduct or attempt to conduct a financial transaction with the proceeds of specified unlawful activity with the purpose of specific intent to..
- promote carrying on of specified unlawful activity
- conceal or disguise the nature, location, source, ownership or control the proceeds
- evade taxes
Title 18 U.S.C. 1956(a)(1)
Which title makes it a crime to knowingly engage in, or attempt to engage in, monetary transaction exceeding $10,000 in criminally derived property that is the proceeds of specified unlawful activity?
Title 18 U.S.C. 1957 (a)
In contrast to 1956 what does 1957 not require ?
- the funds to be used for any further criminal purpose
- the defendant engaged in the transaction with any purpose or specific intent
Difference in maximum sentence between 1956 and 1957?
1956= 20 year sentence 1957= 10 year sentence
Differences between 1956 and 1957?
-1956
must be a financial transaction
requires specific intent
no minimum dollar threshold
-1957
must be monetary transaction with a financial institute
no intent required
must be greater than $10,000
What is asset forefeiture?
the taking of property by the government without compensation, because it was used in a manner contrary to the law.
What are some reasons for asset forfeiture?
- Depriving wrongdoers of the profits and instrumentalities of criminal activity
- reducing the incentive to commit crime
- disrupting and dismantling criminal enterprises
- restoring property to victims of crime while protecting individuals rights
What are the theories of asset forfeiture?
- Proceeds of the crime
- Faciliation of the crime
- Property involved in money laundering and human trafficking
- Enterprise involved in racketeering
What are the 3 types of asset forfeiture?
- Civil
- Criminal
- Adminsitrative
What type of asset forfeiture is “in Rem” the property is the defendant and no criminal charges against the owner are necessary?
Civil Forfeiture
Which asset forfeiture is “in personam” ? and requires that the gov’t indict the property used or derived from the crime along with the defendant?
Criminal Forfeiture
Which forfeiture is the process by which property may be forfeited to the US without judicial involvement?
Administrative Forfeiture
_______________ forfeiture can also be used to seize and forfeit the following; any amount of currency, personal property valued at $500,000 or less; including cars, guns, boats, jewelry, and hauling conveyances. But not real property
Administrative Forfeiture
If the property owner files a claim during administrative forfeiture what happens ?
it becomes a civil forfeiture, or the gov’t must return the property to the claimant
Administrative Forefeiture
- Agency
- probable cause
- no conviction
- cash (any amount) property less than $500,000
- no real property
Civil Forefeiture
- AUSA civil section
- preponderence of the evidence
- no conviciton required
- real property and property of any value
- adminsitrative forefieture contested
Criminal Forfeiture
- AUSA criminal section
- beyond a reasonable doubt (criminal) preponderence of the evidence (AF)
- Conviction required
- substitute assets/ money judgement
- property is indicted
Who is the originator of a wire transfer?
The intitiator of the funds transfer. Could be an individual or business entity
Who is the beneficiary of a wire transfer?
The ultimate party to receive the funds
Who owns and operates FedWire
The federal reserve
What is the primary domestic electronic find transfer system?
FedWire
What does fedwire handle?
Both message transfer traffic and actual fund transfers
What financial institutions can have accounts with fedwire?
Domestic financial institutions
What implemented the requirement called the Funds Transfers Rule?
The Bank Secrecy Act
What applies to all funds transfers over $3000 and requires banks to retain certain information depending on their role in the funds transfer
The Funds Transfer Rule
