Editing Money laundering (section)

==History==
While existing laws were used to fight money laundering during the period of [[Prohibition in the United States]] during the 1930s, dedicated [[Anti-Money Laundering]] legislation was only implemented in the 1980s.<ref>{{cite web |title=History of Anti-Money Laundering Laws |url=https://www.fincen.gov/history-anti-money-laundering-laws |website=Financial Crimes Enforcement Network (FINCEN) |access-date=15 May 2024 |archive-date=28 May 2024 |archive-url=https://web.archive.org/web/20240528094059/https://www.fincen.gov/history-anti-money-laundering-laws |url-status=live }}</ref> [[Organized crime]] received a major boost from Prohibition and a large source of new funds that were obtained from illegal sales of alcohol. The successful prosecution of [[Al Capone]] on [[tax evasion]] brought in a new emphasis by the state and law enforcement agencies to track and confiscate money, but existing laws against tax evasion could not be used once gangsters started paying their taxes.

In the 1980s, the [[war on drugs]] led governments again to turn to money laundering rules in an attempt to track and seize the proceeds of [[Drug-related crime|drug crimes]] in order to catch the organizers and individuals running drug empires. It also had the benefit, from a law enforcement point of view, of turning rules of evidence "upside down". Law enforcers normally have to prove an individual is guilty to seize their property, but with [[Civil forfeiture in the United States|civil forfeiture laws]], money can be confiscated and it is up to the individual to prove that the source of funds is legitimate to get the money back.<ref>{{Cite news |date=2018-02-03 |title=Russian oligarchs in UK told to explain luxury lifestyles |language=en-GB |work=BBC News |url=https://www.bbc.com/news/uk-42926819 |access-date=2021-02-17 |archive-date=14 December 2020 |archive-url=https://web.archive.org/web/20201214044036/https://www.bbc.com/news/uk-42926819 |url-status=live }}</ref> This makes it much easier for law enforcement agencies and provides for much lower [[burden of proof (law)|burdens of proof]].

However, this process has been abused by some law enforcement agencies to take and keep money without strong evidence of related criminal activity, to be used to supplement their own budgets. Civil asset forfeiture has been harshly criticized by [[civil liberties]] advocates for its greatly reduced standards for conviction, [[reverse onus]], financial [[conflict of interest|conflicts of interests]] arising when the law enforcement agencies who decide whether or not to seize assets stand to keep those assets for themselves,<ref>{{cite web|url=http://reason.com/archives/2010/01/26/the-forfeiture-racket |title=The Forfeiture Racket |date=26 January 2010 |publisher=Reason.com |access-date=2013-06-18}}</ref><ref>{{cite news| url=http://www.economist.com/node/16219747 | newspaper=The Economist | title=A truck in the dock | date=May 27, 2010}}</ref><ref>{{cite web|author=Kevin Drum |url=http://motherjones.com/kevin-drum/2010/04/civil-asset-forfeiture |title=Civil Asset Forfeiture |publisher=Mother Jones |date=2010-04-07 |access-date=2013-06-18}}</ref><ref>{{cite web|first=Judy |last=Osburn |url=http://www.fear.org/ |title=Forfeiture Endangers American Rights |publisher=FEAR |access-date=2013-06-18}}</ref> and violation of [[separation of powers]] and [[due process]].<ref name="q973">{{cite journal | last=Blumenson | first=Eric D. | last2=Nilsen | first2=Eva | title=The Next Stage of Forfeiture Reform | journal=Federal Sentencing Reporter | volume=14 | issue=2 | date=1 October 2001 | issn=1053-9867 | doi=10.1525/fsr.2001.14.2.76 | pages=76–86}}</ref>

The [[11 September attacks]] in 2001, which led to the [[Patriot Act]] in the U.S. and similar legislation worldwide, led to a new emphasis on money laundering laws to combat [[terrorism financing]].<ref>{{Cite web |last=Morris-Cotterill |first=Nigel |date=1999 |title=A brief history of money laundering |url=http://www.countermoneylaundering.com/public/content/brief-history-money-laundering |url-status=dead |archive-url=https://web.archive.org/web/20160224181114/http://www.countermoneylaundering.com/public/content/brief-history-money-laundering |archive-date=24 February 2016 |access-date=17 February 2016 |df=dmy-all}}</ref> The [[Group of Seven (G7)]] nations used the [[Financial Action Task Force on Money Laundering]] to put pressure on governments around the world to increase surveillance and monitoring of financial transactions and share this information between countries. Starting in 2002, governments around the world upgraded money laundering laws and surveillance and monitoring systems of financial transactions. Anti-money laundering regulations have become a much larger burden for [[financial institution]]s and enforcement has stepped up significantly.

During 2011–2015 a number of major banks faced ever-increasing fines for breaches of money laundering regulations. This included [[HSBC]], which was fined $1.9 billion in December 2012,<ref>{{Cite news |date=2012-12-11 |title=HSBC agrees $1.9bn US penalties |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-20673466 |access-date=2020-10-05 |archive-date=7 July 2014 |archive-url=https://web.archive.org/web/20140707111611/https://www.bbc.com/news/business-20673466 |url-status=live }}</ref> and [[BNP Paribas]], which was fined $8.9 billion in July 2014 by the U.S. government.<ref name="nytimes bnp admits guilt">{{Cite news |last1=Protess |first1=Ben |last2=Silver-Greenberg |first2=Jessica |author-link2=Jessica Silver-Greenberg |name-list-style= |date=30 June 2014 |title=BNP Paribas Admits Guilt and Agrees to Pay $8.9 Billion Fine to U.S. |work=The New York Times |url=https://dealbook.nytimes.com/2014/06/30/bnp-paribas-pleads-guilty-in-sanctions-case/ |access-date=1 July 2014 |archive-date=30 June 2014 |archive-url=https://web.archive.org/web/20140630202411/http://dealbook.nytimes.com/2014/06/30/bnp-paribas-pleads-guilty-in-sanctions-case/ |url-status=live }}</ref> Many countries introduced or strengthened border controls on the amount of cash that can be carried and introduced central transaction reporting systems where all financial institutions have to report all financial transactions electronically. For example, in 2006, [[Australia]] set up the [[Australian Transaction Reports and Analysis Centre|AUSTRAC]] system and required the reporting of all financial transactions.<ref>{{Cite web |title=AUSTRAC at a glance |url=http://www.austrac.gov.au/ar-14-15-austrac-at-a-glance |url-status=dead |archive-url=https://web.archive.org/web/20160828034700/http://austrac.gov.au/ar-14-15-austrac-at-a-glance |archive-date=28 August 2016 |access-date=18 August 2016 |publisher=AUSTRAC |df=dmy-all}}</ref>

With the surge in digital asset in the late 2010s, there's been a noticeable rise in money laundering and fraud tied to cryptocurrency. In 2021 alone, cybercriminals managed to secure US$14 billion in cryptocurrency through various illicit activities.<ref>{{Cite journal |last1=Kerr |first1=David S. |last2=Loveland |first2=Karen A. |last3=Smith |first3=Katherine Taken |last4=Smith |first4=Lawrence Murphy |date=March 2023 |title=Cryptocurrency Risks, Fraud Cases, and Financial Performance |journal=Risks |language=en |volume=11 |issue=3 |pages=51 |doi=10.3390/risks11030051 |doi-access=free |issn=2227-9091}}</ref>

[[Triad (organized crime)|Chinese organized criminal groups]] have become the principal money launderers for [[drug cartel]]s in Mexico, Italy, and elsewhere.<ref name=":3">{{Cite news |last1=Rotella |first1=Sebastian |author-link=Sebastian Rotella |last2=Berg |first2=Kirsten |date=October 11, 2022 |title=How a Chinese American Gangster Transformed Money Laundering for Drug Cartels |url=https://www.propublica.org/article/china-cartels-xizhi-li-money-laundering |url-status=live |archive-url=https://web.archive.org/web/20230714080505/https://www.propublica.org/article/china-cartels-xizhi-li-money-laundering |archive-date=July 14, 2023 |access-date=July 13, 2023 |work=[[ProPublica]]}}</ref><ref>{{Cite news |last=Parodi |first=Emilio |date=2023-04-06 |title=Italian drugs cartels conceal payments via Chinese shadow banks |url=https://www.reuters.com/world/europe/italian-drugs-cartels-conceal-payments-via-chinese-shadow-banks-2023-04-06/ |url-status=live |archive-url=https://web.archive.org/web/20230714003532/https://www.reuters.com/world/europe/italian-drugs-cartels-conceal-payments-via-chinese-shadow-banks-2023-04-06/ |archive-date=2023-07-14 |access-date=2023-07-14 |work=[[Reuters]] |language=en}}</ref><ref>{{Cite news |last= |date=2023-05-30 |title=Italy police arrest 40 mafia suspects for drug smuggling via Chinese money brokers |url=https://www.reuters.com/world/europe/italy-police-arrest-40-mafia-suspects-drug-smuggling-via-chinese-money-brokers-2023-05-30/ |url-status=live |archive-url=https://web.archive.org/web/20230714003532/https://www.reuters.com/world/europe/italy-police-arrest-40-mafia-suspects-drug-smuggling-via-chinese-money-brokers-2023-05-30/ |archive-date=2023-07-14 |access-date=2023-07-14 |work=[[Reuters]] |language=en}}</ref><ref>{{Cite news |date=April 22, 2024 |title=How Chinese networks clean dirty money on a vast scale |url=https://www.economist.com/china/2024/04/22/how-chinese-networks-clean-dirty-money-on-a-vast-scale |url-access=subscription |access-date=2024-04-23 |newspaper=[[The Economist]] |issn=0013-0613 |archive-date=23 April 2024 |archive-url=https://web.archive.org/web/20240423005302/https://www.economist.com/china/2024/04/22/how-chinese-networks-clean-dirty-money-on-a-vast-scale |url-status=live }}</ref>