Proposals to Reform the Federal Money Laundering Statutes
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the criminal's mattress or buried underground no one benefits.
A second purpose § 1957 may serve is to prevent third parties such as merchants from
accepting dirty money in trade. This theoretically makes it more difficult for the criminal to spend
his money and thus enjoy the fruits of his crimes. 21 The Justice Department ’ s prosecution guidelines
for § 1957 seem to target third parties who accept dirty money, not criminals who deposit or
withdraw it. 22 That would reflect a sensible judgment about the appropriate use of the statute.
21 However, in practice, § 1957 does not effectively prevent criminals from spending their ill-gotten gains. It is easy for the criminal to turn his cash into some less suspicious monetary instrument, and it is easy for the criminal to find a merchant who will accept cash, no questions asked. Because § 1957 imposes no duty of inquiry on the merchant, he can safely accept cash except in the most extreme circumstances.
22 See United States Attorney ’ s Manual §9-105.400.
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