What is a 'Comprehensive Money Laundering Law'?

A 'Comprehensive Money Laundering Law' refers to a legal framework that addresses multiple aspects of money laundering, including its prevention, detection, and prosecution. This type of legislation typically encompasses a range of measures designed to combat money laundering activities and to ensure that financial institutions implement effective compliance frameworks.

Such laws often require institutions to establish robust anti-money laundering (AML) programs that include customer due diligence, suspicious activity reporting, and employee training. They set forth the legal standards that guide how financial entities must monitor and report potential money laundering activities to regulatory authorities. This comprehensive approach is crucial for maintaining the integrity of the financial system and shielding it from illicit operations.

In contrast, the other options lack the comprehensive nature essential for effectively combating money laundering. For instance, a law that allows financial institutions to operate without oversight would undermine the very purpose of combating money laundering, while guidelines for ethical banking practices and regulations focused solely on tax evasion do not encompass the broader range of activities involved in money laundering.