Brief Review of the Money Laundering Control Act of 1986
Until 1986, money laundering was not considered a federal crime in the United States.
The Money Laundering Control Act of 1986 was passed by Congress and signed into law to criminalize money laundering activities.
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Money Laundering
Money laundering is an activity in which a money launderer engages in criminal or other illicit activities that generate funds/money and attempts to disguise the illicit source of the generated funds.
Objectives of the Money Laundering Control Act
The act was designed to achieve the four objectives below:
- To established money laundering as a prosecutable federal offense
- To mandate civil and criminal penalties for violating the Bank Secrecy Act of 1970
- To prohibit the ability of consumers who structure transactions that are met to evade currency transaction report filings
- To require banks and other financial institutions to develop and maintain Bank Secrecy Act procedures, recordings, and compliance policies
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