Money Laundering Scam

steps to identify the owners of any privately owned bank outside the U.S. who have a correspondent account with them, along 1 with the interests of each of the owners in the bank. It is expected that additional scrutiny will be applied by the U.S. institution 2 to such banks to make sure they are not engaging in money laundering. Banks must identify all the nominal and beneficial 3 owners of any private bank account opened and maintained in the U.S. by non-U.S. citizens. There is also an expectation that 4 they must undertake enhanced scrutiny of the account if it is owned by, or is being maintained on behalf of, any senior 5 political figure where there is reasonable suspicion of corruption. 83 Any deposits made from within the U.S. into foreign 6 banks are now deemed to have been deposited into any interbank account the foreign bank may have in the U.S. Thus any 7 restraining order, seizure warrant or arrest warrant may be made against the funds in the interbank account held at a U.S. 8 financial institution, up to the amount deposited in the account at the foreign bank. 84 Restrictions were placed on the use of 9 internal bank concentration accounts because such accounts do not provide an effective audit trail for transactions, and this 10 may be used to facilitate money laundering. Financial institutions are prohibited from allowing clients to specifically direct 11 them to move funds into, out of, or through a concentration account, and they are also prohibited from informing their clients 12 about the existence of such accounts. Financial institutions are not allowed to provide any information to clients that may 13 identify such internal accounts. 85 Financial institutions are required to document and follow methods of identifying where the 14 funds are for each customer in a concentration account that co-mingles funds belonging to one or more customers. 15 The definition of money laundering was expanded to include making a financial transaction in the U.S. in order to commit a 16 violent crime; 86 the bribery of public officials and fraudulent dealing with public funds; the smuggling or illegal export of 17 controlled munition 87 and the importation or bringing in of any firearm or ammunition not authorized by the U.S. Attorney 18 General 88 and the smuggling of any item controlled under the Export Administration Regulations. 89 It also includes any 19 offense where the U.S. would be obligated under a mutual treaty with a foreign nation to extradite a person, or where the U.S. 20 would need to submit a case against a person for prosecution because of the treaty; the import of falsely classified goods; 90 21 computer crime; 91 and any felony violation of the Foreign Agents Registration Act of 1938 . 92 It also allows the forfeiture of 22 any property within the jurisdiction of the United States that was gained as the result of an offense against a foreign nation 23 that involves the manufacture, importation, sale, or distribution of a controlled substance. 93 Foreign nations may now seek to 24 have a forfeiture or judgment notification enforced by a district court of the United States. 94 This is done through new 25 legislation that specifies how the U.S. government may apply for a restraining order 95 to preserve the availability of property 26 which is subject to a foreign forfeiture or confiscation judgment. 96 In taking into consideration such an application, emphasis 27 is placed on the ability of a foreign court to follow due process. 97 The Act also requires the Secretary of Treasury to take all 28 reasonable steps to encourage foreign governments make it a requirement to include the name of the originator in wire transfer 29 instructions sent to the United States and other countries, with the information to remain with the transfer from its origination 30

83 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 312.

84 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 319.

85 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 325.

86 Amendment made to 18 U.S.C. §1956(c)(7)(B)(ii) — for some reason an extra parenthesis was inserted into 18 U.S.C. §1956(c)(7)(B)(iii), according to Cornell University, this was probably mistakenly added by law makers

87 Illegal export of controlled munitions is defined in the United States Munitions List, which is part of the Arms Export Control Act (22 U.S.C. §2778).

88 See 18 U.S.C. §922(l) and 18 U.S.C. §925(d).

89 Defined in 15 C.F.R. 730 – 774; USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 315.

90 Defined in 18 U.S.C. §541.

91 Defined in 18 U.S.C. §1030.

92 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 315.

93 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 320. Amended 18 U.S.C. § 981(A)(1)(B).

94 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 323. Amended 28 U.S.C. §2467.

95 Pursuant to 18 U.S.C. §983(j).

96 28 U.S.C. §2467(d)(3)(A).

97 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 323. Amended 28 U.S.C. §2467.

The Money Laundering Enforcement Scam

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Copyright Sovereignty Education and Defense Ministry, http://sedm.org Form 05.044, Rev. 10-2-2013

EXHIBIT:________