18 U.S.C. § 1956 : US Code - Section 1956: Laundering of monetary instruments

Search 18 U.S.C. § 1956 : US Code - Section 1956: Laundering of monetary instruments

(a)(1) Whoever, knowing that the property involved in a financial
transaction represents the proceeds of some form of unlawful
activity, conducts or attempts to conduct such a financial
transaction which in fact involves the proceeds of specified
unlawful activity -
(A)(i) with the intent to promote the carrying on of specified
unlawful activity; or
(ii) with intent to engage in conduct constituting a violation
of section 7201 or 7206 of the Internal Revenue Code of 1986; or
(B) knowing that the transaction is designed in whole or in
part -
(i) to conceal or disguise the nature, the location, the
source, the ownership, or the control of the proceeds of
specified unlawful activity; or
(ii) to avoid a transaction reporting requirement under State
or Federal law,
shall be sentenced to a fine of not more than $500,000 or twice the
value of the property involved in the transaction, whichever is
greater, or imprisonment for not more than twenty years, or both.
(2) Whoever transports, transmits, or transfers, or attempts to
transport, transmit, or transfer a monetary instrument or funds
from a place in the United States to or through a place outside the
United States or to a place in the United States from or through a
place outside the United States -
(A) with the intent to promote the carrying on of specified
unlawful activity; or
(B) knowing that the monetary instrument or funds involved in
the transportation, transmission, or transfer represent the
proceeds of some form of unlawful activity and knowing that such
transportation, transmission, or transfer is designed in whole or
in part -
(i) to conceal or disguise the nature, the location, the
source, the ownership, or the control of the proceeds of
specified unlawful activity; or
(ii) to avoid a transaction reporting requirement under State
or Federal law,
shall be sentenced to a fine of not more than $500,000 or twice the
value of the monetary instrument or funds involved in the
transportation, transmission, or transfer, whichever is greater, or
imprisonment for not more than twenty years, or both. For the
purpose of the offense described in subparagraph (B), the
defendant's knowledge may be established by proof that a law
enforcement officer represented the matter specified in
subparagraph (B) as true, and the defendant's subsequent statements
or actions indicate that the defendant believed such
representations to be true.
(3) Whoever, with the intent -
(A) to promote the carrying on of specified unlawful activity;
(B) to conceal or disguise the nature, location, source,
ownership, or control of property believed to be the proceeds of
specified unlawful activity; or
(C) to avoid a transaction reporting requirement under State or
Federal law,
conducts or attempts to conduct a financial transaction involving
property represented to be the proceeds of specified unlawful
activity, or property used to conduct or facilitate specified
unlawful activity, shall be fined under this title or imprisoned
for not more than 20 years, or both. For purposes of this paragraph
and paragraph (2), the term "represented" means any representation
made by a law enforcement officer or by another person at the
direction of, or with the approval of, a Federal official
authorized to investigate or prosecute violations of this section.
(b) Penalties. -
(1) In general. - Whoever conducts or attempts to conduct a
transaction described in subsection (a)(1) or (a)(3), or section
1957, or a transportation, transmission, or transfer described in
subsection (a)(2), is liable to the United States for a civil
penalty of not more than the greater of -
(A) the value of the property, funds, or monetary instruments
involved in the transaction; or
(B) $10,000.
(2) Jurisdiction over foreign persons. - For purposes of
adjudicating an action filed or enforcing a penalty ordered under
this section, the district courts shall have jurisdiction over
any foreign person, including any financial institution
authorized under the laws of a foreign country, against whom the
action is brought, if service of process upon the foreign person
is made under the Federal Rules of Civil Procedure or the laws of
the country in which the foreign person is found, and -
(A) the foreign person commits an offense under subsection
(a) involving a financial transaction that occurs in whole or
in part in the United States;
(B) the foreign person converts, to his or her own use,
property in which the United States has an ownership interest
by virtue of the entry of an order of forfeiture by a court of
the United States; or
(C) the foreign person is a financial institution that
maintains a bank account at a financial institution in the
United States.
(3) Court authority over assets. - A court described in
paragraph (2) may issue a pretrial restraining order or take any
other action necessary to ensure that any bank account or other
property held by the defendant in the United States is available
to satisfy a judgment under this section.
(4) Federal receiver. -
(A) In general. - A court described in paragraph (2) may
appoint a Federal Receiver, in accordance with subparagraph (B)
of this paragraph, to collect, marshal, and take custody,
control, and possession of all assets of the defendant,
wherever located, to satisfy a civil judgment under this
subsection, a forfeiture judgment under section 981 or 982, or
a criminal sentence under section 1957 or subsection (a) of
this section, including an order of restitution to any victim
of a specified unlawful activity.
(B) Appointment and authority. - A Federal Receiver described
in subparagraph (A) -
(i) may be appointed upon application of a Federal
prosecutor or a Federal or State regulator, by the court
having jurisdiction over the defendant in the case;
(ii) shall be an officer of the court, and the powers of
the Federal Receiver shall include the powers set out in
section 754 of title 28, United States Code; and
(iii) shall have standing equivalent to that of a Federal
prosecutor for the purpose of submitting requests to obtain
information regarding the assets of the defendant -
(I) from the Financial Crimes Enforcement Network of the
Department of the Treasury; or
(II) from a foreign country pursuant to a mutual legal
assistance treaty, multilateral agreement, or other
arrangement for international law enforcement assistance,
provided that such requests are in accordance with the
policies and procedures of the Attorney General.
(c) As used in this section -
(1) the term "knowing that the property involved in a financial
transaction represents the proceeds of some form of unlawful
activity" means that the person knew the property involved in the
transaction represented proceeds from some form, though not
necessarily which form, of activity that constitutes a felony
under State, Federal, or foreign law, regardless of whether or
not such activity is specified in paragraph (7);
(2) the term "conducts" includes initiating, concluding, or
participating in initiating, or concluding a transaction;
(3) the term "transaction" includes a purchase, sale, loan,
pledge, gift, transfer, delivery, or other disposition, and with
respect to a financial institution includes a deposit,
withdrawal, transfer between accounts, exchange of currency,
loan, extension of credit, purchase or sale of any stock, bond,
certificate of deposit, or other monetary instrument, use of a
safe deposit box, or any other payment, transfer, or delivery by,
through, or to a financial institution, by whatever means
effected;
(4) the term "financial transaction" means (A) a transaction
which in any way or degree affects interstate or foreign commerce
(i) involving the movement of funds by wire or other means or
(ii) involving one or more monetary instruments, or (iii)
involving the transfer of title to any real property, vehicle,
vessel, or aircraft, or (B) a transaction involving the use of a
financial institution which is engaged in, or the activities of
which affect, interstate or foreign commerce in any way or
degree;
(5) the term "monetary instruments" means (i) coin or currency
of the United States or of any other country, travelers' checks,
personal checks, bank checks, and money orders, or (ii)
investment securities or negotiable instruments, in bearer form
or otherwise in such form that title thereto passes upon
delivery;
(6) the term "financial institution" includes -
(A) any financial institution, as defined in section
5312(a)(2) of title 31, United States Code, or the regulations
promulgated thereunder; and
(B) any foreign bank, as defined in section 1 of the
International Banking Act of 1978 (12 U.S.C. 3101);
(7) the term "specified unlawful activity" means -
(A) any act or activity constituting an offense listed in
section 1961(1) of this title except an act which is indictable
under subchapter II of chapter 53 of title 31;
(B) with respect to a financial transaction occurring in
whole or in part in the United States, an offense against a
foreign nation involving -
(i) the manufacture, importation, sale, or distribution of
a controlled substance (as such term is defined for the
purposes of the Controlled Substances Act);
(ii) murder, kidnapping, robbery, extortion, destruction of
property by means of explosive or fire, or a crime of
violence (as defined in section 16);
(iii) fraud, or any scheme or attempt to defraud, by or
against a foreign bank (as defined in paragraph 7 of section
1(b) of the International Banking Act of 1978)); (!1)
(iv) bribery of a public official, or the misappropriation,
theft, or embezzlement of public funds by or for the benefit
of a public official;
(v) smuggling or export control violations involving -
(I) an item controlled on the United States Munitions
List established under section 38 of the Arms Export
Control Act (22 U.S.C. 2778); or
(II) an item controlled under regulations under the
Export Administration Regulations (15 C.F.R. Parts 730-
774);
(vi) an offense with respect to which the United States
would be obligated by a multilateral treaty, either to
extradite the alleged offender or to submit the case for
prosecution, if the offender were found within the territory
of the United States; or
(vii) trafficking in persons, selling or buying of
children, sexual exploitation of children, or transporting,
recruiting or harboring a person, including a child, for
commercial sex acts;
(C) any act or acts constituting a continuing criminal
enterprise, as that term is defined in section 408 of the
Controlled Substances Act (21 U.S.C. 848);
(D) an offense under section 32 (relating to the destruction
of aircraft), section 37 (relating to violence at international
airports), section 115 (relating to influencing, impeding, or
retaliating against a Federal official by threatening or
injuring a family member), section 152 (relating to concealment
of assets; false oaths and claims; bribery), section 175c
(relating to the variola virus), section 215 (relating to
commissions or gifts for procuring loans), section 351
(relating to congressional or Cabinet officer assassination),
any of sections 500 through 503 (relating to certain
counterfeiting offenses), section 513 (relating to securities
of States and private entities), section 541 (relating to goods
falsely classified), section 542 (relating to entry of goods by
means of false statements), section 545 (relating to smuggling
goods into the United States), section 549 (relating to
removing goods from Customs custody), section 641 (relating to
public money, property, or records), section 656 (relating to
theft, embezzlement, or misapplication by bank officer or
employee), section 657 (relating to lending, credit, and
insurance institutions), section 658 (relating to property
mortgaged or pledged to farm credit agencies), section 666
(relating to theft or bribery concerning programs receiving
Federal funds), section 793, 794, or 798 (relating to
espionage), section 831 (relating to prohibited transactions
involving nuclear materials), section 844(f) or (i) (relating
to destruction by explosives or fire of Government property or
property affecting interstate or foreign commerce), section 875
(relating to interstate communications), section 922(l)
(relating to the unlawful importation of firearms), section
924(n) (relating to firearms trafficking), section 956
(relating to conspiracy to kill, kidnap, maim, or injure
certain property in a foreign country), section 1005 (relating
to fraudulent bank entries), 1006 (!2) (relating to fraudulent
Federal credit institution entries), 1007 (!2) (relating to
Federal Deposit Insurance transactions), 1014 (!2) (relating to
fraudulent loan or credit applications), section 1030 (relating
to computer fraud and abuse), 1032 (!2) (relating to
concealment of assets from conservator, receiver, or
liquidating agent of financial institution), section 1111
(relating to murder), section 1114 (relating to murder of
United States law enforcement officials), section 1116
(relating to murder of foreign officials, official guests, or
internationally protected persons), section 1201 (relating to
kidnaping), section 1203 (relating to hostage taking), section
1361 (relating to willful injury of Government property),
section 1363 (relating to destruction of property within the
special maritime and territorial jurisdiction), section 1708
(theft from the mail), section 1751 (relating to Presidential
assassination), section 2113 or 2114 (relating to bank and
postal robbery and theft), section 2280 (relating to violence
against maritime navigation), section 2281 (relating to
violence against maritime fixed platforms), section 2319
(relating to copyright infringement), section 2320 (relating to
trafficking in counterfeit goods and services), section 2332
(relating to terrorist acts abroad against United States
nationals), section 2332a (relating to use of weapons of mass
destruction), section 2332b (relating to international
terrorist acts transcending national boundaries), section 2332g
(relating to missile systems designed to destroy aircraft),
section 2332h (relating to radiological dispersal devices), or
section 2339A or 2339B (relating to providing material support
to terrorists) of this title, section 46502 of title 49, United
States Code, a felony violation of the Chemical Diversion and
Trafficking Act of 1988 (relating to precursor and essential
chemicals), section 590 of the Tariff Act of 1930 (19 U.S.C.
1590) (relating to aviation smuggling), section 422 of the
Controlled Substances Act (relating to transportation of drug
paraphernalia), section 38(c) (relating to criminal violations)
of the Arms Export Control Act, section 11 (relating to
violations) of the Export Administration Act of 1979, section
206 (relating to penalties) of the International Emergency
Economic Powers Act, section 16 (relating to offenses and
punishment) of the Trading with the Enemy Act, any felony
violation of section 15 of the Food Stamp Act of 1977 (relating
to food stamp fraud) involving a quantity of coupons having a
value of not less than $5,000, any violation of section
543(a)(1) of the Housing Act of 1949 (relating to equity
skimming), any felony violation of the Foreign Agents
Registration Act of 1938, any felony violation of the Foreign
Corrupt Practices Act, or section 92 of the Atomic Energy Act
of 1954 (42 U.S.C. 2122) (relating to prohibitions governing
atomic weapons) (!3)
ENVIRONMENTAL CRIMES
(E) a felony violation of the Federal Water Pollution Control
Act (33 U.S.C. 1251 et seq.), the Ocean Dumping Act (33 U.S.C.
1401 et seq.), the Act to Prevent Pollution from Ships (33
U.S.C. 1901 et seq.), the Safe Drinking Water Act (42 U.S.C.
300f et seq.), or the Resources Conservation and Recovery Act
(42 U.S.C. 6901 et seq.); or
(F) any act or activity constituting an offense involving a
Federal health care offense;
(8) the term "State" includes a State of the United States, the
District of Columbia, and any commonwealth, territory, or
possession of the United States.
(d) Nothing in this section shall supersede any provision of
Federal, State, or other law imposing criminal penalties or
affording civil remedies in addition to those provided for in this
section.
(e) Violations of this section may be investigated by such
components of the Department of Justice as the Attorney General may
direct, and by such components of the Department of the Treasury as
the Secretary of the Treasury may direct, as appropriate and, with
respect to offenses over which the United States Postal Service has
jurisdiction, by the Postal Service. Such authority of the
Secretary of the Treasury and the Postal Service shall be exercised
in accordance with an agreement which shall be entered into by the
Secretary of the Treasury, the Postal Service, and the Attorney
General. Violations of this section involving offenses described in
paragraph (c)(7)(E) may be investigated by such components of the
Department of Justice as the Attorney General may direct, and the
National Enforcement Investigations Center of the Environmental
Protection Agency.
(f) There is extraterritorial jurisdiction over the conduct
prohibited by this section if -
(1) the conduct is by a United States citizen or, in the case
of a non-United States citizen, the conduct occurs in part in the
United States; and
(2) the transaction or series of related transactions involves
funds or monetary instruments of a value exceeding $10,000.
(g) Notice of Conviction of Financial Institutions. - If any
financial institution or any officer, director, or employee of any
financial institution has been found guilty of an offense under
this section, section 1957 or 1960 of this title, or section 5322
or 5324 of title 31, the Attorney General shall provide written
notice of such fact to the appropriate regulatory agency for the
financial institution.
(h) Any person who conspires to commit any offense defined in
this section or section 1957 shall be subject to the same penalties
as those prescribed for the offense the commission of which was the
object of the conspiracy.
(i) Venue. - (1) Except as provided in paragraph (2), a
prosecution for an offense under this section or section 1957 may
be brought in -
(A) any district in which the financial or monetary transaction
is conducted; or
(B) any district where a prosecution for the underlying
specified unlawful activity could be brought, if the defendant
participated in the transfer of the proceeds of the specified
unlawful activity from that district to the district where the
financial or monetary transaction is conducted.
(2) A prosecution for an attempt or conspiracy offense under this
section or section 1957 may be brought in the district where venue
would lie for the completed offense under paragraph (1), or in any
other district where an act in furtherance of the attempt or
conspiracy took place.
(3) For purposes of this section, a transfer of funds from 1
place to another, by wire or any other means, shall constitute a
single, continuing transaction. Any person who conducts (as that
term is defined in subsection (c)(2)) any portion of the
transaction may be charged in any district in which the transaction
takes place.