Money Laundering Control Act

    North America

    Money Laundering Control Act

    The Money Laundering Control Act of 1986 (‘the AML Act’) regulates money laundering by prohibiting transactions which involve the proceeds of specified unlawful activities. In addition, the AML Act prohibits individuals from engaging or attempting to engage in a monetary transaction in criminally derived property of a value greater than $10,000 and derived from specified unlawful activity.  

    Last Updated: July 30, 2019


  • Requirements

    The AML Act makes it unlawful for individuals to:  

    • knowing that the property involved in a financial transaction, represent the proceeds of some form of unlawful activity, conduct or attempt to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity; 
    • transport, transmit, or transfer, or attempt to transport, transmit, or transfer a monetary instrument or funds from a place in the U.S. to or through a place outside the U.S. or to a place in the U.S. from or through a place outside the U.S.; and 
    • with the intent to promote the carrying on of specified unlawful activity, conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity or to avoid a transaction reporting requirement under State or Federal law, conduct or attempt 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. 

    Finally, the AML Act provides that it is unlawful to knowingly engage or attempt to engage in a monetary transaction in criminally derived property of a value greater than $10,000 and derived from specified unlawful activity.  

    According to the AML Act, a 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’ whilst a 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’.  Finally, a monetary transaction means the deposit, withdrawal, transfer, or exchange, in or affecting interstate or foreign commerce, of funds or a monetary instrument by, through, or to a financial institution.  

  • How OneTrust Helps

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    For additional details on Vendorpedia, read more here. 

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