Court Ruling May More Closely Tie Tax Evasion and Money Laundering Charges, Say AML Consultants

By Matt Squire

A federal judge's ruling may have nudged U.S. courts closer to treating tax evasion as a predicate crime for money laundering, legal experts say. In a case involving the mailing of fraudulent tax returns in the U.S. Virgin Islands, an appeals court ruled that unpaid taxes disguised through fraudulent tax returns are the proceeds of a mail fraud intended to launder money. The ruling reversed a February 2007 decision by a federal court in the U.S. Virgin Islands that dismissed money laundering charges against a group of nine family members that owned and operated a chain of supermarkets accused of...