Money Laundering
Money laundering is one of the several white-collar crimes that happen in the United States, and it violates the nation’s federal laws. Normally, money laundering is the prohibited process of making large amounts of illegal or ‘dirty’ money appear genuine instead of ill-gotten. Typically, money laundering is done through criminal activities such as terrorist funding, drug trafficking, and online bank transactions. The process of money laundering naturally involves three steps which are integration, placement, and layering (CHEN, 2022). The history of money laundering happened during Al Capone, and the United States prohibition happened in the 1930s. The prohibition in the U.S. was a countrywide constitutional ban on the importation, production, transportation, and sale of alcoholic beverages from 1920 to 1933. At that moment, there were organized criminals in the U.S. of America involved alcohol smuggling industry which was much more profitable. In order to legalize these profits, they began to combine them with profits from the legislative business.
One of the companies that have experienced money laundering was Wachovia Bank, founded on June 16, 1879. In 2010, Wachovia Bank had the biggest laundering of money after allowing drug cartels from Mexico to do money laundering between 2004 and 2007, which were close to USD 390 billion across its branches (Anti-Money, 2022). The reason to chose money laundering as the topic is because it has been happening before, and due to the rapid growth of technology, there are more cases reported. According to Kolmar (2022), although money laundering is highly prohibited in the United States, it remains a huge matter. About $300 billion is laundered each year in the United States. Globally, white color criminals launder between $800 million and $2 trillion every year. Additionally, the largest American Bank, Capital One, was fined and ordered to pay about $390 million for failing to report uncountable transactions (Kolmar, 2022).
In the United States of America, money laundering was made illegal through the U.S. Money Laundering Control Act, which was one of the first laws. In 1986, laundering money became one of the most federal crimes in history for the first time. The Money Laundering ACT of 1986, the United States Congress Act, called laundering a federal crime. Various fines and penalties are established for money laundering offenders, such as a fine of up to $500,000- or 20 years imprisonment (Is Money Laundering a Federal Crime – Scrofano Law, n.d.)
In conclusion, money laundering is a white-collar crime in the United States and worldwide. Money laundering started between 1920 and 1933 in the United States after some merchants failed to elaborate on where they got their wealth after the prohibition of illicit brew. Money laundering cases are increasing globally due to ICT improvement. In 1986, money laundering was stated as a federal crime in the United States, and other nations started to make laws that prohibit it internationally. Many banks and companies have failed to run because of money laundering, while victims who are not yet arrested are still doing it for wealth purposes.
References
CHEN, J. (2022, June 29). Money Laundering: What It Is and How to Prevent It. LAWS & REGULATIONS FINANCIAL CRIME & FRAUD. https://www.investopedia.com/terms/m/moneylaundering.asp
Anti-Money. (2022). The Five Biggest Money Laundering Scandals | Sanction Scanner. Sanctionscanner.com. https://sanctionscanner.com/blog/the-five-biggest-money-laundering-scandals-317
Kolmar, C. (2022, October 18). 19 Money Laundering Statistics [2022] Facts About Money Laundering In The U.S. – Zippia. ZIPPIA the Career Expert. https://www.zippia.com/advice/money-laundering-statistics/#:~:text=Money%20laundering%20in%20the%20U.S.%20makes%20up%2015%25%2D38
Is Money Laundering a Federal Crime – Scrofano Law? (n.d.). Www.scrofanolaw.com. Retrieved January 10, 2023, from https://www.scrofanolaw.com/is-money-laundering-a-federal-crime/#:~:text=The%20United%20States%20Congress%20Act
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