Recovering the proceeds of crime from the correspondent account of a foreign bank

Abstract

Purpose

This paper aims to discuss the issues about the recovery of the proceeds of crime, with emphasis on the USA situation.

Design/methodology/approach

The paper first sets forth the rationale for Section 981(k) of the Patriot Act and the requirements the government must satisfy to use it successfully to recover criminal proceeds. It then discusses the facts of a case where the new statute was applied and the legal arguments that were made when a foreign bank challenged the application of the statute in federal court. Finally, it discusses how the court resolved those issues in granting the government's suit for the recovery of the money.

Findings

Finds that Section 981(k), while controversial, has proven effective in allowing the Government of the USA to recover property from wrongdoers in the types of cases where it was intended to be applied.

Originality/value

Shows that Section 981(k) is an innovative and controversial addition to the arsenal of weapons that federal law enforcement authorities in the USA can use to recover the proceeds of crime.

Citation

Cassella, S.D. (2006), "Recovering the proceeds of crime from the correspondent account of a foreign bank", Journal of Money Laundering Control, Vol. 9 No. 4, pp. 401-415. https://doi.org/10.1108/13685200610707644