Money Laundering, Asset Forfeiture, Wire Transfer

Question 1

What are the Stages of money laundering?

Answer 1

Placement
Layering
Integration

Question 2

In terms of money laundering what is placement?

Answer 2

the process of placing illegally obtained funds into the normal financial system

Question 3

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

Answer 3

Layering

Question 4

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

Answer 4

Integration

Question 5

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

Answer 5

Title 18 U.S.C. 1956(a)(1)

Question 6

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?

Answer 6

Title 18 U.S.C. 1957 (a)

Question 7

In contrast to 1956 what does 1957 not require ?

Answer 7

• the funds to be used for any further criminal purpose

- the defendant engaged in the transaction with any purpose or specific intent

Question 8

Difference in maximum sentence between 1956 and 1957?

Answer 8

1956= 20 year sentence
1957= 10 year sentence

Question 9

Differences between 1956 and 1957?

Answer 9

-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

Question 10

What is asset forefeiture?

Answer 10

the taking of property by the government without compensation, because it was used in a manner contrary to the law.

Question 11

What are some reasons for asset forfeiture?

Answer 11

• 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

Question 12

What are the theories of asset forfeiture?

Answer 12

1. Proceeds of the crime
2. Faciliation of the crime
3. Property involved in money laundering and human trafficking
4. Enterprise involved in racketeering

Question 13

What are the 3 types of asset forfeiture?

Answer 13

1. Civil
2. Criminal
3. Adminsitrative

Question 14

What type of asset forfeiture is “in Rem” the property is the defendant and no criminal charges against the owner are necessary?

Answer 14

Civil Forfeiture

Question 15

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?

Answer 15

Criminal Forfeiture

Question 16

Which forfeiture is the process by which property may be forfeited to the US without judicial involvement?

Answer 16

Administrative Forfeiture

Question 17

_______________ 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

Answer 17

Administrative Forfeiture

Question 18

If the property owner files a claim during administrative forfeiture what happens ?

Answer 18

it becomes a civil forfeiture, or the gov’t must return the property to the claimant

Question 19

Administrative Forefeiture

Answer 19

• Agency
• probable cause
• no conviction
• cash (any amount) property less than $500,000
• no real property

Question 20

Civil Forefeiture

Answer 20

• AUSA civil section
• preponderence of the evidence
• no conviciton required
• real property and property of any value
• adminsitrative forefieture contested

Question 21

Criminal Forfeiture

Answer 21

• AUSA criminal section
• beyond a reasonable doubt (criminal) preponderence of the evidence (AF)
• Conviction required
• substitute assets/ money judgement
• property is indicted

Question 22

Who is the originator of a wire transfer?

Answer 22

The intitiator of the funds transfer. Could be an individual or business entity

Question 23

Who is the beneficiary of a wire transfer?

Answer 23

The ultimate party to receive the funds

Question 24

Who owns and operates FedWire

Answer 24

The federal reserve

Question 25

What is the primary domestic electronic find transfer system?

Answer 25

FedWire

Question 26

What does fedwire handle?

Answer 26

Both message transfer traffic and actual fund transfers

Question 27

What financial institutions can have accounts with fedwire?

Answer 27

Domestic financial institutions

Question 28

What implemented the requirement called the Funds Transfers Rule?

Answer 28

The Bank Secrecy Act

Question 29

What applies to all funds transfers over $3000 and requires banks to retain certain information depending on their role in the funds transfer

Answer 29

The Funds Transfer Rule