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31 USC Section 5335

Prohibits hiding or misrepresenting the true owner, controller, or source of funds in certain high-risk financial transactions involving senior foreign political figures or entities linked to money laundering concerns.

Rule Overview

Jurisdiction: United States

Regulator: US Dept. of Treasury, FinCEN

Topic: Risk Management

31 USC Section 5335
Overview
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Further Reading

Enacted as part of the Anti-Money Laundering Act of 2020 (AMLA) Section 6313, this law prohibits people from concealing the source of certain assets or funds in transactions involving financial institutions.

Key points:

  • It applies to financial transactions such as deposits, withdrawals, transfers, and exchanges.
  • It is illegal to knowingly conceal, falsify, or misrepresent the true ownership or control of assets if:
    • the assets are linked to a senior foreign political figure (a foreign politically exposed person), a close family member, or a close associate; and
    • the transactions involve at least $1 million in assets.
  • It is illegal to hide or misrepresent the source of funds in transactions involving entities identified as primary money laundering concerns.
  • Violators may face:
    • up to 10 years in prison,
    • fines of up to $1 million, and/or
    • forfeiture of property involved in the offense.
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Further Reading