Money Laundering Crimes and Disclosure Act of 1985

Money Laundering Crimes and Disclosure Act of 1985 - Amends the Federal criminal code to establish money laundering as a Federal criminal offense. Sets forth fines and penalties to be imposed against anyone who initiates or conducts transactions 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 that such monetary instruments represent 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 10 years or both for the first offense. Increases the fine to not more than $1,000,000 or five times the value of the monetary instrument, whichever is greater, or imprisonment for not more than 20 years or both for subsequent convictions.

Requires investigation of such an offense by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Internal Revenue Service, as appropriate.

Establishes extraterritorial jurisdiction over such prohibited conduct.

Authorizes the Secretary of Treasury to: (1) examine books, papers, and records of domestic financial institutions; (2) summon an officer or employee having possession or custody of reports or records to appear before the Secretary and give testimony under oath; and (3) take such testimony. Allows the Secretary to delegate such power to a supervisory agency.

Increases the penalties for violations of the Banks Secrecy Act's reporting rules. Sets forth the maximum civil penalty for willful violation at $10,000 or the amount of the transaction itself, if the violation is a reporting requirement. Imposes criminal penalties of a fine of up to $5,000 or imprisonment of 10 years or both. Provides for an increased penalty if such violation occurs in conjunction with violations of other laws. Makes the maximum fine $1,000,000 or imprisonment for not more than 20 years or both.