History of AML Anti-Money Laundering Legislation

By Prof. George S. Mentz, JD, MBA, CWM

05 January, 2007

History of AML Anti-Money Laundering Legislation

Edited by: Prof. George Mentz, JD, MBA, CWM - Attorney at Law

Chronology --

1970 Bank Secrecy Act

Required banks to report cash transactions over $10,000 via the Currency Transaction Report ("CTR").

1986 Money Laundering Control Act

Criminalized the act of money laundering; Prohibited structuring transactions to evade CTR filings; and Introduced civil and criminal forfeiture for BSA violations.

1988 Money Laundering Prosecution Improvement Act

Expanded the definition of financial institution to include businesses such as car dealers and real estate closing personnel and required them to file reports on large currency transactions; and Required the verification of identity of purchasers of monetary instruments over $3,000.

1990 Bank Fraud Prosecution and Taxpayer Recovery Act of 1990 (Crime Control Act)

Updated the FDIC Statement of Policy issued pursuant to Section 19 of the Federal Deposit Insurance Act that prohibits, without the prior written consent of the FDIC, any person from participating in banking who has been convicted of a crime of dishonesty or breach of trust or money laundering, or who has entered a pretrial diversion in connection with such an offense.

1992 Annunzio-Wylie Money Laundering Suppression Act

Added Sections 18(w) to FDI Act which provides for the revocation of federal deposit insurance of institutions convicted of certain money laundering crimes; Required Suspicious Activity Reports and eliminated criminal referrals; and Required Verification and recordkeeping for wire transfers.

1994 Money Laundering Suppression Act

Required banking agencies to develop anti-money laundering examination procedures; and Streamlined CTR exemption process.

1998 Money Laundering and Financial Crimes Strategy Act

Required banking agencies to develop anti-money laundering training for examiners; Required Treasury and other agencies to develop a National Money Laundering Strategy; and Created the High Intensity Money Laundering and Related Financial Crime Area ("HIFCA") Task Forces.

2001 Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept and Obstruct Terrorism Act (USA PATRIOT Act)

Required government-institution information sharing and voluntary information among financial institutions; Required verification of customer identity program; Required enhanced due diligence programs, and Required anti-money laundering programs across the financial services industry.

About the Authors
George Mentz is a licensed attorney and is trained in Internatinal Law and Business. Mentz has an earned MBA from an AACSB Accredited Business School and holds a Doctorate Degree or Juris Doctorate Degree from an ABA Accredited USA Law School. Prof. Mentz has faculty appointments and credentials in Silicon Valley, Miami, Chicago, Denver, Hong Kong, Singapore, and The Bahamas. . Prof. Mentz is a consultant providing expertise to Fortune 100 companies in several countries. The first person in the United States to achieve "Quad Designation" Status as a JD, MBA, licensed financial planner, and Certified Financial Consultant. Prof. Mentz has authored/published over 15 Books and has been featured or quoted in the Wall Street Journal, The Hindu National, El Norte Latin America, the Finanical Times, The China Daily, & The Arab Times. His research, publications, and speeches have been syndicated into over 100 countries. Prof. Mentz has recently been elected to the advisory board of the GFF Global Finance Forum in Switzerland and the World E-Commerce Forum in London, England. He also is on the Advisory Board of The ERISA Fiduciary Guild. Mentz was Editor and Chief for the Original Tax and Estate Planning Law Review at Loyola University (A Loyola University Chartered Organization). One of the First Lawyers in the USA to be credentialed and compliant to teach law in all 50 states in law school, graduate and undergraduate colleges and universities. Holds professor faculty appointment at Graduate LLM Law Program . Prof. Mentz has established Certification and Executive Training Accreditation Programs in over 50 Countries around the world including : UK, China, Mexico, Africa, Singapore, Taiwan, USA, Bahamas, India, Russia, EU, Philippines, Saudi Arabia, Canada, Vietnam, The Bahamas and more. General Counsel and Attorneyand Board of Standards Chair Prof. Mentz has recently been awarded a National Faculty Award, a Distinguished Faculty Award and a Meritorious Service Medal for Charitable Service. Prof Mentz has taught over 150 college and graduate courses in his faculty career.