When the FBI Comes Calling…®
MONEY LAUNDERING (continued)
Extraterritorial Jurisdiction
Congress provided extraterritorial jurisdiction over the conduct prohibited in 18 U.S.C. § 1956(a) when
- 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, 18 U.S.C. § 1956(f)(1); and
- the transaction or series of related transactions involves funds or monetary instruments of a value exceeding $10,000. Id. § 1956(f)(2).
Furthermore, for the purposes of the civil penalties provided in section 1956(b)(1) there will be jurisdiction over foreign persons and financial institutions authorized under the laws of a foreign country, if
- service of process is made under the Federal Rules of Civil Procedure or the laws of the country in which the foreign person is found, 18 U.S.C. § 1956(b)(2), and
- the foreign person commits an offense under section 1956(a) involving a financial transaction that occurs in whole or in part in the United States, 18 U.S.C. § 1956(b)(2)(A);
- 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, Id. § 1956(b)(2)(B); or
- the foreign person is a financial institution that maintains a bank account at a financial institution in the United States. Id. § 1956(b)(2)(C).
Definitions
- "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 18 U.S.C. § 1956(c)(7). 18 U.S.C. § 1956(c)(1).
- "conducts" includes initiating, concluding, or participating in initiating, or concluding a transaction. Id. § 1956(c)(2);
- "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. Id. § 1956(c)(3).
- "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. Id. § 1956(c)(4).
- "monetary instruments" means
- coin or currency of the United States or of any other country, travelers' checks, personal checks, bank checks, and money orders, Id. § 1956(c)(5)(i),
- investment securities or negotiable instruments, in bearer form or otherwise in such form that title thereto passes upon delivery. Id. § 1956(c)(5)(ii);
- the term "financial institution" includes-
- any financial institution, as defined in 31 U.S.C. § 5312(a)(2) of title 31, United States Code, or the regulations promulgated thereunder, Id. § 1956(c)(6)(A); and
- any foreign bank, as defined in section 1 of the International Banking Act of 1978 (12 U.S.C. 3101). 18 U.S.C. § 1956(c)(6)(B).
- "State" includes a State of the United States, the District of Columbia, and any commonwealth, territory, or possession of the United States. Id. § 1956(c)(8)