Tax Evasion & Money Laundering: Foreign Persons

Under 18 USC 1956 (f), there is extraterritorial jurisdiction over the conduct prohibited if:

1) The conduct is by a US citizen, or, in the case of a non-US citizen, the conduct occurs in part in the US; and

2) The transactions or series of related transactions involves funds or monetary instruments of a monetary value exceeding $10k.

Under 18 USC Sec. 1956 (b) the District Courts shall have jurisdiction over any foreign person, including any financial institution, authorized under the laws of a foreign country, against whom the action is brought, if service of process upon the foreign person is made under the Federal Rules of Civil Procedure, or the laws of the country in which the foreign person is found. For the District Court to have jurisdiction:

1) The foreign person commits an offense under 18 USC Sec. 1956 (a) involving a financial transaction that occurs in whole or in part in the US (18 USC 1956 (b) (1) (A); or

2) The foreign person converts, to his or her own use, property in which the US has an ownership interest by virtue of the entry of an order of forfeiture by a court of the US (18 USC 1956 (b) (1) (B); or

3) The foreign person is a financial institution that maintains a bank account at a financial institution in the US (18 USC 1956 (b) (1) (C).

A US court may issue a pre-trial restraining order or take any other action necessary to ensure that any bank account or other property held by the defendant in the US is available to satisfy a judgment under this 18 USC 1956 (see 18 USC 1956 (b) (3).

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