Money laundering has been going on for over two thousand years, and many people are unaware of how much money is laundered on a worldwide basis every year. It is estimated that between eight hundred billion and two trillion dollars of cash annually are received illegally and passed through legal businesses to make those dollars “clean.” The intention behind money laundering schemes, which are often complicated financial transactions, is to hide money obtained illegally from law enforcement officials. If a criminal obtains money unlawfully and then they spend the money without laundering it; there is a possibility that law enforcement officials will be able to connect the person who received the money illegally with the crime of obtaining the money illegally.
Money laundering is a crime in the United States, and there are both state and federal anti-money laundering laws. Other countries also have laws against money laundering, but in some places, it is easier to launder money and not get caught. Money laundering schemes are often complicated, and some money laundering schemes funnel money into international transactions involving either businesses or financial institutions. Modern money laundering often incorporates the electronic handling of funds, which can make catching money launderers even more difficult.
There is a bill before the United States Congress called Senate Bill 2563, or, “The Illicit Cash Act.” The bill would give law enforcement officials more tools to fight back against money laundering, which is often connected with criminal activity like human trafficking, drug dealing, and terrorism. While anti-money laundering laws do currently exist, supporters of the bill say it is time for those laws to be updated and strengthened.
One of the ways the Illicit Cash Act could help officials increase enforcement of money laundering laws is by offering a monetary reward to individuals who supply officials with information that leads to the successful prosecution of money launderers. Similar financial reward provisions exist in the Internal Revenue Act, the SEC Act, and other anti-fraud whistleblower laws. The basis for all of these whistleblower laws is the False Claims Act, which was introduced by Abraham Lincoln during the Civil War and updated in 1986. The False Claims Act and the rules that were inspired by it provide a means by which ordinary citizens can report violations of the law to the government officials who can enforce those laws and receive compensation for their role in bringing criminals to justice. The payment for whistleblowers under the False Claims Act and similar laws is a portion of the fines and other financial penalties that are collected from individuals who are convicted of wrongdoing.
As is the case with other whistleblower laws, the Illicit Cash Act, if passed, contains provisions that would protect whistleblowers from retaliation. The reason that whistleblower laws have been so successful in identifying and prosecuting illegal activity is that the people who work inside of the organizations where the crimes are occurring can provide reliable information about the illegal things that they witnessed. It was a whistleblower who helped authorities crack the Danske Bank Case, the largest money laundering case in history.
If the Illicit Cash Act passes, officials will gain valuable allies in their fight against money laundering. To learn more about whistleblower protection, call the Mississippi Whistleblower Attorneys of Barrett Law PLLC today at 1 (800) 707-9577 for an initial consultation.