Predicate crime

In U.S. criminal law, a predicate crime is a crime that serves as a component of a larger crime, such as racketeering, money laundering, or terrorism financing. For example, under the Racketeer Influenced and Corrupt Organization Act (RICO), a person must engage in a pattern of racketeering activity, which requires committing at least two predicate crimes within 10 years. These include offenses like bribery, blackmail, extortion, fraud, theft, money laundering, counterfeiting, and illegal gambling. Predicate crimes are linked to the larger crime if they share a similar purpose. For instance, using false identification can be a predicate offense for larceny or fraud if it facilitates withdrawing money from a bank account. These crimes can be charged separately or in conjunction with the larger offense.

In anti-money laundering (AML) contexts, predicate offenses have been formally defined since the FATF 40 Recommendations were established in 2004. The Financial Action Task Force (FATF) has expanded this list over time. In the U.S., these offenses are codified under 18 USC § 1956(c)(7), originating from the Bank Secrecy Act of 1970 and later expanded by the USA PATRIOT Act of 2001. The European Union adopted a standardized set of predicate offenses through the 6th EU Money Laundering Directive to address loopholes in member states' AML laws.

The term "predicate" originates from Latin, meaning "to proclaim or make known," and in legal contexts, it refers to the foundational basis for a larger crime.