Employment & Environment: Money Laundering Flashcards Preview

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Flashcards in Employment & Environment: Money Laundering Deck (3)
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1

Employment & Environment:
Money Laundering
Overview

Definition of Money Laundering
- process by which one conceals the existence , illegal source, or illegal application of income and disguises it to make it look legitimate
Bank Security Act of 1970
- requires record keeping and reporting by banks
- report transactions over $10,000
- identify persons conducting such activity
- maintain traceable paper trail

2

Employment & Environment:
Money Laundering
Prohibited Transactions and Transportation

- prohibits the financial transaction itself
- prohibits the transportation of funds for money laundering
- conspiracy to violate is separate offense
- $10,000 max civil penalty and max criminal penalty of 20 years in jail and $500,000 fine OR twice value of laundered money (which ever is greater)

3

Employment & Environment:
Money Laundering
Property Transactions

- must knowingly engage
Penalties
- max $10,000 civil penalty and criminal punishment of up to 10 years in jail
- auditors are not specifically charged with detecting and reporting money laundering

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