Title: 2101. Money Laundering Overview | JM | Department of Justice
Headings: 2101. Money Laundering Overview
2101. Money Laundering Overview
Content: That term includes all means of transporting funds or monetary instruments, including wire or electronic funds transfers, and the transfer of currency, checks, money orders, bearer securities and negotiable instruments. Section 1956 (a) (3) relates to undercover operations where the financial transaction involves property represented to be proceeds of specified unlawful activity. The proceeds in § 1956 (a) (3) cases are not actually derived from a real crime; they are undercover funds supplied by the Government. The representation must be made by or authorized by a Federal officer with authority to investigate or prosecute money laundering violations. The representation may also be made by another at the direction of or approval of a Federal officer. It should be noted that the specific intent provisions in § 1956 (a) (3) are slightly different from those in § 1956 (a) (1). First, the intent to violate the tax laws is not included in this subsection. Second, subsections 1956 (a) (3) (B) and (C) require that the transaction be conducted with the intent to conceal or disguise the nature, location, source, ownership or control of the property or to avoid a transaction reporting requirement, respectively, in contrast to subsections 1956 (a) (1) (B) (i) and (ii), which only require that defendant know that the transaction is designed, in whole or in part, to accomplish one of those ends. Violations of § 1956 have a maximum potential twenty year prison sentence and a $500,000 fine or twice the amount involved in the transaction, whichever is greater.