Pryor Cashman Partner Jeffrey Alberts and Associate Aaron Wiltse authored an article titled "How Money Laundering Allegations Turn Foreign Violations Into Domestic Cases" for the Anti-Corruption Report. In the article, they analyze how federal prosecutors are increasingly leveraging foreign law violations to bring U.S. criminal and civil cases.
Jeff and Aaron examine the statutory framework underpinning these cases, particularly how U.S. anti-money laundering (AML) statutes define "specified unlawful activity" (SUA) to include offenses against foreign nations. They discuss how courts have interpreted these provisions, highlighting challenges in proving foreign violations and ensuring due process in domestic proceedings.
The article explores recent legal decisions, such as the Ninth Circuit's rulings in United States v. Chi and United States v. Shen Zhen New World I, LLC, which address how foreign bribery laws fit within U.S. money laundering statutes. Jeff and Aaron also analyze how courts determine whether a foreign law qualifies as an SUA, the evidentiary burden on prosecutors, and procedural uncertainties in litigating these cases.
With U.S. authorities expanding their extraterritorial reach, ongoing judicial scrutiny will be crucial in balancing enforcement objectives with legal safeguards. The article underscores the importance of clarity in applying foreign legal standards and the potential risks of jurisdictional overreach.
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