We all have a vested interest in combating money laundering. And that's why we're here today. When the first money laundering laws were enacted by Congress in 1986, they primarily targeted domestic money laundering. Those laws have proven to be effective, as far as they go. But money laundering has grown into a very serious international problem, and our laws need to be updated to keep up with the drug traffickers and other international criminals who generate large sums of criminal proceeds that need to be laundered.
Money laundering is the financial side of crime committed for profit.
No one knows exactly how much money is laundered each year, but by all accounts, it has reached alarming and unprecedented levels both here and abroad. Worldwide, it is estimated that hundreds of billions of dollars are laundered every year. Money laundering is important in two respects. First and foremost, it facilitates the underlying criminal activity. It provides the cash that allows drug traffickers, arms dealers, terrorists, and others to conduct their criminal enterprises.