SUMMARY OF THE EVOLUTION OF AMERICAN ANTI-MONEY LAUNDERING LAWS

Federal anti-money laundering laws evolved slowly after the Bank Secrecy Act of 1970, and the technology for recordkeeping and auditing has evolved.

• In 1986, the Money Laundering Control Act introduced civil and criminal forfeiture for BSA violations. In 1988, the Anti-Drug Abuse Act expanded the definition of financial institution to include car dealers and real estate closings and required the verification of identity for monetary instruments over $3,000.
• In 1992, The Annunzio-Wylie Anti-Money Laundering Act strengthened the sanctions for BSA violations, it required suspicious activity reports and verification for wire transfers. In 1994, the Money Laundering Suppression Act required banks to enhance procedures for referring cases to law enforcement.
• In 1998, The Money Laundering and Financial Crimes Strategy Act required banking agencies to develop anti-money laundering training for examiners and created specialized task forces. The 911 attack also revealed a need to strengthen laws and law enforcement.
• The 2001 PATRIOT Act criminalized the financing of terrorism, prohibited financial institutions from engaging in business with foreign shell banks, required due diligence procedures, and improved information sharing between financial institutions and the U.S. government.
• The Intelligence Reform & Terrorism Prevention Act of 2004 required the Secretary of the Treasury to regulate cross-border electronic transmittals of funds.

Source: U.S. Treasury