Federal Money Laundering charges

Money laundering is a serious federal crime that involves concealing the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions. At the federal level, money laundering charges are aggressively prosecuted, often in conjunction with other crimes such as drug trafficking, wire fraud, or organized crime. Below is an overview of the relevant statutes, legal elements, and potential penalties involved in federal money laundering cases.

Federal Statutes Governing Money Laundering

Federal money laundering laws are primarily found in two key statutes under Title 18 of the United States Code:

  1.  18 U.S.C. § 1956 – Laundering of Monetary Instruments:
This statute makes it a crime to knowingly conduct or attempt to conduct a financial transaction involving proceeds of specified unlawful activity (SUA) with the intent to:
     *   Promote further unlawful activity;
     *   Conceal or disguise the nature, location, source, ownership, or control of the proceeds;
     *   Avoid a transaction reporting requirement under federal law.
 
  2.  18 U.S.C. § 1957 – Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity:
This provision prohibits knowingly engaging in a monetary transaction of more than $10,000 involving criminally derived property that is derived from a specified unlawful activity.

Elements of a Money Laundering Offense

To secure a conviction under 18 U.S.C. § 1956, federal prosecutors must prove the following elements beyond a reasonable doubt:

  *   The Defendant Conducted or Attempted to Conduct a Financial Transaction
This includes any transfer of money or property by, through, or to a financial institution or business.
  *   The Property Involved Was Proceeds from a Specified Unlawful Activity (SUA)
SUAs include crimes like drug trafficking, wire fraud, mail fraud, embezzlement, and others listed in the statute.
  *   The Defendant Knew the Property Represented the Proceeds of Some Form of Unlawful Activity
Actual knowledge is required, though willful blindness may also satisfy this element.
  *   The Defendant Had the Specific Intent
One of the following must be proven:
     *   To promote the carrying on of unlawful activity;
     *   To conceal or disguise the source or ownership of the funds;
     *   To avoid reporting requirements.

Under 18 U.S.C. § 1957, the government must show:

  *   The defendant knowingly engaged in or attempted a monetary transaction;
  *   The transaction involved criminally derived property valued over $10,000;
  *   The property was derived from a specified unlawful activity.

Notably, § 1957 does not require intent to conceal or promote — mere involvement with the funds is sufficient if all other elements are met.

Penalties for Federal Money Laundering

Convictions for federal money laundering carry substantial penalties:

  *   Under § 1956:
     *   Up to 20 years in federal prison per count.
     *   Fines up to $500,000 or twice the value of the property involved, whichever is greater.
     *   Possible forfeiture of the laundered funds or property used in the crime.
 
  *   Under § 1957:
     *   Up to 10 years in federal prison per count.
     *   Fines and asset forfeiture are also possible.
 

Additionally, a defendant may face enhanced sentencing if the laundering is connected to terrorism financing or large-scale organized criminal operations.

Collateral Consequences

A money laundering conviction can lead to severe collateral consequences beyond incarceration and fines, including:

  *   Seizure of assets and bank accounts;
  *   Permanent criminal record;
  *   Loss of professional licenses;
  *   Immigration consequences for non-citizens;
  *   Difficulty securing future employment or housing.

Conclusion

Federal money laundering charges are complex and carry heavy consequences. These cases often involve detailed financial records, undercover operations, and parallel investigations into underlying criminal activity. Given the stakes, it is crucial for anyone facing such charges to consult with experienced criminal defense counsel who understands the intricacies of federal financial crime laws. Matthew Galluzzo is an experienced federal criminal defense attorney and former prosecutor, and he has successfully defended several individuals accused of or investigated for alleged money laundering. If you or a loved one have been accused of money laundering by federal agents, you should strongly consider contacting Matthew Galluzzo to discuss his services.