What is the Money Laundering Control Act?

The Money Laundering Control Act (MLCA) is a federal law enacted in 1986 to help combat money laundering in the United States. The Act makes it a crime to knowingly engage in a financial transaction for the purpose of hiding or disguising the source of illegally obtained money. The Act also criminalizes the knowing transportation or receipt of money or other monetary instruments derived from certain specified unlawful activities. In California, it is illegal to knowingly engage in a financial transaction with proceeds of certain specified unlawful activities, such as drug trafficking and fraud. The purpose of the MLCA is to detect and prosecute money laundering. To meet this goal, the Act requires the reporting of suspicious transactions that exceed $10,000 dollars. It also requires financial institutions to establish and maintain an anti-money laundering program that complies with federal regulations. Additionally, the Act makes it a crime to structure transactions in order to avoid filing Currency Transaction Reports. The MLCA is a powerful tool for federal, state and local law enforcement to fight crime as well as protect consumers from fraud. Additionally, it is a valuable tool for financial institutions to combat money laundering and terrorist financing. California banking laws have incorporated the principles of the MLCA, enabling law enforcement and regulators to more efficiently detect and prosecute those engaged in money laundering and terrorist financing.

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What is the Money Laundering Control Act?

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