Money Laundering Scheme Case Study

Money Laundering Scheme Case Study 1
Money Laundering Schemes and Law
Student’s Name
Professor’s Name
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Money Laundering Scheme Case Study 2
Introduction
The case reveals that Mr. Kozlov obtained money in corrupt way and had plans for
channeling proceeds to either buying apartment in the US, or paying his son’s education at the
university in the US during four years of his bachelor’s studies. He also has an option buy shares
of a small US construction company for his son. Achieving these goals is not easy but it is
possible if Mr. Kozlov evade some of the laws governing the utilization of money in US. The
total money laundered is approximately 5 million USD. This is a lot of money to be deposited
once in any foreign account. The goal of this paper is to develop money laundering scheme for
Mr. Kozlov.
Existing laws to consider
It should be noted that financing terrorism and extremist activities, drug trafficking, tax
crimes and related money laundering operations in many countries at different times forced the
national authorities to respond to cases of legalization of proceeds of crime. Experts note the
close connection of the latter with other socially dangerous crimes (Ivanov 2018). As the
majority of studies, as well as the study of legal acts and public opinion, show that corruption is a
predicate of money laundering. The current system of international legal instruments aimed at
combating corruption contains a number of rules on the additional criminalization of certain
forms of corruption, including money laundering. As a result, a number of convention and
national laws are in place, which may make it hard for Mr. Kozlov to channel his proceeds to any
bank. Before developing money laundering scheme for him, it is important to reflect on some of
laws and strategies formed to investigate money laundering.

Money Laundering Scheme Case Study 3
The legislative base for countering the legalization of criminal proceeds in the USA is a
set of regulatory legal acts, which include the Bank Secrecy Act-BSA (Bank Secrecy Act 1970);
RICO (Law on corrupt and racketeered organizations in 1978); The Money Laundering Control
Act (Anti-Money Laundering Act 1986); The Anti-Drug Abuse Act cash, international
experience, international seals 1988) (FATF Report 2019)..
All banks and financial institutions are required to maintain accounting records, submit
reports on suspicious transactions in the form of cash, bank spending, traveller's checks and
postal money orders in excess of $ 10 thousand in any currency, and identify new customers.
This applies to transactions of airlines, financial companies, hotels, pawnshops, restaurants and
wholesale points (Financial Action Task Force 2016).
In 1988, the Law on Strengthening the Charges of Money Laundering (The Money
Laundering Prosecution Improvement Act-MLPIA) was enacted, which expanded the scope of
anti-legalization legislation on the transport, transfer and sending of payment documents (Adam
& Russell 2011). In accordance with this law, banks are required to report to the law
enforcement authorities about all suspicious transactions worth over 5 thousand dollars, on
operations with securities - in the amount of more than 3 thousand dollars.
A mandatory requirement is that each banking institution has a special anti-money
laundering program. Section XV of the 1992 Housing and Community Development Act of 1992
expanded the definition of financial business operations and banned the activities of illegal
money transfer enterprises. If the bank is found guilty of money laundering, the federal
supervisory authority is obliged to begin the process of terminating the bank's charter or
canceling insurance of its assets (William Rees et al 2011).