Money Laundering Control Act 1986
Last updated: July 15, 2025
The Money Laundering Control Act of 1986 marked a significant milestone in the United States' fight against financial crimes by making money laundering a federal offense for the first time1. This legislation, enacted as part of the Anti-Drug Abuse Act, introduced two new criminal offenses:
18 U.S.C. § 1956: Prohibiting financial transactions involving proceeds of "specified unlawful activities"
18 U.S.C. § 1957: Criminalizing monetary transactions in property derived from specified unlawful activities exceeding $10,0001
The Act expanded the government's ability to combat organized crime and drug trafficking by targeting the proceeds of these illegal activities. It also introduced civil and criminal forfeiture provisions for money laundering offenses, allowing authorities to seize assets connected to illicit financial activities2.
Key provisions of the Money Laundering Control Act include:
Criminalizing the knowing participation in financial transactions involving proceeds of illegal activities
Prohibiting the structuring of transactions to evade Currency Transaction Report (CTR) filings3
Authorizing the use of wiretaps in money laundering investigations4
Establishing a "sting provision" allowing for prosecution even when the funds involved were not actually derived from specified unlawful activities5
The Act's scope extended beyond traditional financial institutions, applying to individuals and businesses engaged in or attempting to engage in prohibited financial transactions6. This broader application significantly enhanced the government's ability to prosecute those involved in laundering criminal proceeds.
By criminalizing money laundering and providing law enforcement with new tools to investigate and prosecute financial crimes, the Money Laundering Control Act of 1986 laid the groundwork for future anti-money laundering legislation and regulations in the United States7. It represented a crucial step in the evolution of financial crime prevention, bridging the gap between the Bank Secrecy Act of 1970 and subsequent legislation like the USA PATRIOT Act of 2001.