Money Laundering and Financial Crimes Strategy Act of 1998

Money Laundering and Financial Crimes Strategy Act of 1998 - Amends Federal law governing monetary transactions to redefine money laundering and related financial crimes as either: (1) the movement of illicit cash or cash equivalent proceeds into, out of, or through the United States or through certain U.S. financial institutions; or (2) the meaning given under State and local criminal statutes pertaining to the movement of illicit cash or cash equivalent proceeds.

(Sec. 2) Directs the President (acting through the Secretary of the Treasury and in consultation with the Attorney General) to develop and submit to the Congress a national strategy, with five annual updates, for combating money laundering and related financial crimes. Requires such strategy to include: (1) research-based goals, objectives, and priorities; (2) prevention measures coordinated with other agencies; (3) detection and prosecution initiatives (including seizure and forfeiture of proceeds and instrumentalities derived from such crimes); (4) an enhanced partnership between the private financial sector and law enforcement agencies to target crime detection and prevention; (5) enhanced intergovernmental cooperation between Federal, State, and local officials; and (6) a description of geographical areas designated as high-risk money laundering and related financial crime areas.

Instructs the Secretary to submit to the Congress contemporaneously with such strategy an evaluation of the effectiveness of policies to combat money laundering and related financial crimes.

Requires: (1) an element of the national strategy to be the designation of certain geographic areas, industries, sectors, or institutions as areas in which money laundering and related financial crimes are extensive or present a substantial risk; and (2) the Secretary to take specified factors into consideration when identifying such areas.

Authorizes certain Federal, State, and local officials and prosecutors to submit a written request for: (1) the designation of a high-risk money laundering and related financial crimes area; or (2) funding for a specific prevention or enforcement initiative, or to determine the extent of financial criminal activity in an area.

Directs the Secretary to: (1) establish a grant program to support local law enforcement efforts in a money laundering detection, prevention, and suppression program; and (2) report to specified congressional committees on the effectiveness and need for the designation of high-risk money laundering and related financial crime areas.

Sets forth grant eligibility criteria.

Authorizes the Secretary, one year after the national strategy is submitted to the Congress, to review, select, and award grants for State or local law enforcement agencies and prosecutors to provide funding necessary to investigate and prosecute money laundering and related financial crimes in high-risk ares.

Authorizes appropriations for FY 1999 through 2003.