Frankencrime: America's Harsh Money Laundering Penalties

Abstract

Organised crime in the USA is a central threat to economic growth and social stability. In this respect the USA is no different from other free‐market economies. Meanwhile, sophisticated narcotics trafficking cartels bring violence to streets and sickness to youths. These problems are very real and difficult to solve. But Americans are also showered with factual and fictitious stories of hardened criminals ‘getting off’ easily because a judge was ‘soft’ or the law had a technical loophole that did not pertain to the case's merits. This atmosphere kindles public fear of organised crime and fuels criticism of the justice system to an unwarranted degree. In reacting to this fear, the US Congress has increasingly pushed the US Constitution to its limits to thwart mechanisms that purportedly allow these organisations to function. Unfortunately, such legislation is often ill‐conceived, the product of reflexive reactions that can promote injustices when the resulting laws are applied to situations never envisioned by their drafters. The broadly written and improperly exercised Money Laundering Control Act 1986 (MLCA) is one such statute.

Citation

Cacheris, P. and Steven O'Malley, E. (2001), "Frankencrime: America's Harsh Money Laundering Penalties", Journal of Money Laundering Control, Vol. 5 No. 2, pp. 115-121. https://doi.org/10.1108/eb027297