A Critical Appraisal of the Law and Practice Relating to Money Laundering in the USA and UK

This thesis critically appraises the disruptive effect of the law and practice relating to ML in the US and the UK on money laundering. This thesis concludes that the law and practice relating to ML in both jurisdictions do not disrupt ML. This thesis consists of six chapters. Chapter 1 introduces this work. It is this chapter that provides the synopsis of the whole work chapter by chapter. Chapter 2 critically analyses the law relating to ML in the US, which includes the main ML statutes – BSA 1970, MLCA 1986 and the Patriot Act 2001. In addition, chapter 2 also critically analyses other US laws that have application in disrupting ML. Chapter 3 critically examines the law relevant to ML in the UK. This chapter critically appraises the AML law under POCA 2002 and under MLR, the proceeds of crime law under POCA 2002, as well as other alternative laws that can be used to disrupt ML. The CFA 2017 enacted in April amended POCA substantially. Thus, this Chapter also analysis the major CFA provisions. The analysis in Chapters 2 and 3 reveals the weak links in the main AML statutes and the limits of the other laws regarding their application to ML offences. Chapter 4 critically analyses the practice relating to ML in the US and UK. This chapter focuses on issues relating to AML compliance, which consists of a set of AML practices, which the law requires regulated persons to establish and maintain for the disruption of ML. Chapter 5 critically evaluates the effectiveness of the law and practice in disrupting ML and TF in both jurisdictions. Based on the analysis in chapters 2, 3, and 4, and also 4 based on the views of scholars in this field, Chapter 5 concludes that the AML law and practice do not disrupt ML and TF. The concluding chapter – Chapter 6 – first explores factors that militate against the law and practice relating to ML. It then suggests how (through the UWO and whistleblowing) the UK and US AML law could be strengthened. The law in both jurisdictions provides protection to whistleblowers. However, it is only the UK that has UWOs in its statute book. Even in the UK, the UWOs are just introduced by CFA 2017.