What is the Money Laundering Control Act?

The Money Laundering Control Act is a United States federal law that was passed in 1986 in order to combat money laundering. It was passed to make it illegal for anyone to knowingly conceal or disguise the source, ownership, or control of money or assets derived from criminal activity. The Act applies to all financial institutions, including banks, credit unions, insurance companies, securities brokers, and money transmitters. The Act is enforced by the US Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN). The Act requires financial institutions to report suspicious transactions and other suspicious activities to FinCEN. Financial institutions are also required to keep records of all customer transactions and to implement anti-money laundering compliance programs. The Act makes it a federal crime to engage in any of the following activities: knowingly concealing or disguising the source, ownership, or control of money or other assets derived from criminal activity; transporting or transferring funds derived from criminal activity across state lines (or to other countries); knowingly accepting or receiving money or assets from someone who has engages in these activities; and attempting to avoid regulations and reporting requirements. The Money Laundering Control Act defines money laundering as the process of intentionally disguising the source of money or other assets derived from criminal activities. In Tennessee, anyone who is found to have violated the Money Laundering Control Act can be prosecuted and convicted in federal court. If convicted, violators can face up to twenty years in prison and a substantial fine.

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What is the Money Laundering Control Act?

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