Money Laundering and Related Crimes Act of 1985

Money Laundering and Related Crimes Act of 1985 - Amends the Federal criminal code to establish money laundering as a Federal offense. Sets forth fines and penalties to be imposed on anyone who conducts transactions involving the movement of funds by wire or other electronic means, or involving monetary instruments, through a financial institution engaged in or affecting interstate commerce: (1) with the intention of carrying out specified types of unlawful activity; or (2) with knowledge or reckless disregard of the fact that such a monetary instrument represents income derived from such unlawful activity.

Provides for a fine of not more than $250,000 or twice the value of the monetary instrument, whichever is greater, or imprisonment for not more than 20 years, or both. Imposes a civil penalty of the greater of the value of the funds or the monetary instrument involved or $10,000.

Authorizes components of the Department of Justice and the Department of the Treasury to investigate such an offense, as appropriate.

Establishes extraterritorial jurisdiction if certain conditions are met.

Amends the Right to Financial Privacy Act of 1978 to permit a financial institution to provide records to law enforcement agencies without notice to customers when it has reason to believe that those records are relevant to the commission of a crime. Permits a financial institution to alert a law enforcement agency that it has information relevant to a possible violation. Provides as a defense for a financial institution in a civil suit under the Right to Financial Privacy Act that it provided records in a good faith belief that they were relevant to a possible violation of law.

Amends the Federal Rules of Criminal Procedure to allow the court to prohibit any person to whom a subpoena is directed from notifying any other person of the existence of the subpoena.

Authorizes the Secretary of the Treasury to: (1) examine books, papers, and records of domestic financial institutions; and (2) summon an officer or employee having possession or custody of reports or records to appear before the Secretary and give testimony under oath. Allows the Secretary to disclose such information when relevant to a matter within the jurisdiction of the receiving agency or for national security reasons.

Increases the civil penalties for violations of the Bank Secrecy Act's reporting rules. Provides in the case of a reporting violation for a maximum penalty of $1,000,000 and a minimum penalty of $25,000. Imposes a $10,000 fine in any other case. Reduces the civil penalty by any amount forfeited to the United States. Imposes a civil penalty for the criminal violation of such section, in the amount of the transaction or $25,000, whichever is greater, where the violation involves a transaction. Provides for a fine of the entire amount deposited in an account during the reporting year or $250,000, whichever is greater, where the violation involves the failure to report or omissions in such report. Imposes a civil penalty of not more than $10,000 in the case of a negligent violation.

Increases the penalty, if such violation is in conjunction with violations of other laws, or if it is part of a pattern of illegal activity involving more than $100,000 in a year, to imprisonment for not more than ten years.

Lists money laundering as a predicate offense for purposes of the Racketeer Influenced and Corrupt Organizations statute. Authorizes wiretapping for purposes of the investigation of money laundering.

Makes whoever knowingly facilitates, by providing substantial assistance, the commission by another person of an offense against the United States punishable as a principal.

Makes it a Federal offense for any person to receive, possess, or conceal any money or property which has been obtained in connection with a violation of any law of the United States or to bring or transfer into the United States any money or other property which has been obtained in connection with a violation of any law of a foreign country concerning the manufacturing of or trafficking in a controlled substance. Provides for a fine of not more than $250,000 and imprisonment for not more than ten years or both.

Establishes civil and criminal forfeiture procedures for the offenses of money laundering and of receiving the proceeds of a crime.