Money Laundering Act of 1998

Money Laundering Act of 1998 - Amends the Federal criminal code to provide for civil forfeiture for engaging in monetary transactions in property derived from specified unlawful activity and for conducting or certain other involvement in an illegal money transmitting business. Specifies that, regarding the prohibition of an illegal money transmitting business, it shall be sufficient for the Government to prove that the defendant knew that the business lacked a license required by State law, but it shall not be necessary to show that the defendant knew that the operation of such business without a license was an offense punishable under State law. (Sec. 4) Authorizes the Attorney General, if any person is arrested or charged in a foreign country in connection with an offense that would give rise to the forfeiture of property in the United States under the criminal code or under the Controlled Substances Act (CSA), to apply to any Federal judge or magistrate judge in the district where the property is located for an ex parte order restraining the property subject to forfeiture for not more than 30 days, with extensions for good cause. (Sec. 5) Directs that a claimant's refusal to provide records in response to a discovery request or to take action necessary to make the records available in a civil forfeiture case, or in certain ancillary proceedings in a criminal forfeiture case under the CSA, shall result in the dismissal of the claim with prejudice where: (1) financial records located in a foreign country may be material to any claim or the ability of the Government to respond to such claim or, in a civil forfeiture case, to the Government's ability to establish the forfeitability of the property; and (2) it is within the claimant's capacity to waive the claimant's rights under such secrecy laws or to obtain the records directly so that the records can be made available. (Sec. 6) Subjects whoever conducts or attempts to conduct a monetary transaction in property derived from specified unlawful activity to certain civil penalties applicable to the laundering of monetary instruments. Grants the district courts jurisdiction over any foreign person, including any financial institution authorized under the laws of a foreign country, that commits an offense under civil money laundering provisions involving a financial transaction that occurs in the United States, subject to specified requirements. Authorizes the court to issue a pretrial restraining order or take any other action necessary to ensure that any bank account or other property held by the defendant in the United States is available to satisfy a judgment under such provisions. (Sec. 7) Includes a foreign bank within the definition of "financial institution." (Sec. 8) Expands the definition of "specified unlawful activity" to cover specified offenses, including, with respect to a financial transaction occurring in the United States, an offense against a foreign nation involving: (1) a crime of violence; (2) fraud committed against a foreign government; (3) bribery of a public official; (4) smuggling or export control violations involving munitions listed in the United States Munitions List or technologies with military applications; and (5) an offense under which the United States would be obligated by a multilateral treaty either to extradite the alleged offender or to submit the case for prosecution if the offender were found within U.S. territory. Includes within such activity an offense relating to goods falsely classified, firearms trafficking, computer fraud and abuse, any felony violation of the Foreign Agents Registration Act of 1938, certain Lacey Act violations, and Clean Air Act violations. Exempts official conduct by a representative of, or an action which is authorized by and conducted on behalf of, the U.S. Government. (Sec. 9) Amends the criminal code to: (1) provide for criminal forfeiture for money laundering conspiracies; and (2) authorize a party to request the Clerk of the Court in the district in which a proceeding for civil or criminal forfeiture is pending to issue a subpoena to a financial institution to produce documents. (Sec. 11) Amends the Federal judicial code to provide for the admissibility of foreign business records. (Sec. 12) Amends the criminal code to permit: (1) a person who commits multiple violations of money laundering provisions that are part of the same scheme or continuing course of conduct to be charged in a single count; (2) a prosecution for a money laundering offense to be brought in any district in which the financial or monetary transaction is conducted, or where a prosecution for the underlying specified unlawful activity could be brought, with an exception; and (3) the interception of wire, oral, or electronic communications where there is a violation of provisions dealing with the reporting and illegal structuring of currency transactions. (Sec. 15) Revises the definition of "knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity" for purposes of monetary instrument laundering prohibitions to specify that such knowledge shall not require knowing whether or not the unlawful activity constituted a felony. (Sec. 16) Requires that a person asserting an innocent owner defense: (1) in currency, monetary instruments, or funds (funds) purchased from a money broker be a bona fide purchaser for value without reason to know that the funds were subject to forfeiture; and (2) establish that such person took all reasonable affirmative steps to determine the source of the funds, or to verify that the funds were not derived from illegal activity. (Sec. 17) Amends the CSA to authorize the Attorney General to transfer forfeited property or proceeds to a foreign country which participated in the seizure or forfeiture but which has not been certified under the Foreign Assistance Act of 1961 (as having fully cooperated with the United States or taken steps on its own in combating drug trafficking) where the Secretary of State finds that transfer to be in the national interest. (Sec. 18) Directs the United States Sentencing Commission to amend or promulgate sentencing guidelines to provide that the sentence for a money laundering offense for which the transaction in criminally derived property consists of a deposit of that property in a financial institution without any intent to disguise or conceal the nature, location, source, ownership, or control of such proceeds, shall not exceed the sentence for the offense giving rise to such property by more than one offense level. (Sec. 19) Amends the code to define "State," as used in the International Banking Act of 1978, to include a U.S. commonwealth, territory, or possession.