What is the Money Laundering Control Act?

The Money Laundering Control Act is a federal law that prohibits individuals from engaging in any kind of financial transaction intended to hide or disguise the source of illegally obtained funds. The act was enacted in 1986 and is administered by the United States Department of Justice and the Treasury Department. The purpose of the law is to make it more difficult for criminals to hide their illegally obtained funds and to protect the public from fraud and corruption. Under the Money Laundering Control Act, it is illegal to knowingly engage in a financial transaction with the intent to conceal the source of money from law enforcement. Money laundering is defined as the process of attempting to conceal or disguise the source of illegally obtained money. This includes transferring funds between accounts, using false records, and making large transactions to multiple accounts. In Washington, any person engaged in or involved with a suspicious transaction needs to be reported to the Washington State Department of Financial Institutions. The Department is responsible for investigating and prosecuting individuals who are suspected of violating the Money Laundering Control Act. Financial institutions must also comply with the requirements of the Money Laundering Control Act or they may face penalties.

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What is the Money Laundering Control Act?

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