Federal Money Laundering
Money laundering under 18 U.S.C. section 1956 carries up to twenty years. Monetary transactions in criminally derived property under section 1957 carries up to ten years. Structuring transactions to avoid bank reporting requirements under 31 U.S.C. section 5324 carries up to five years. Both are frequently charged alongside the underlying offense: fraud, drug trafficking, or other federal crimes.
The government uses money-laundering charges to multiply a defendant’s exposure. A drug dealer who deposits his proceeds faces both the drug charge and the laundering charge, often effectively doubling the guideline range.
What the government must prove
For section 1956, the government must prove the defendant conducted or attempted to conduct a financial transaction involving proceeds of specified unlawful activity, and that the defendant knew the transaction was designed to conceal the nature, location, source, ownership, or control of the proceeds. The knowledge element is critical: the government must prove the defendant knew the money came from some illegal activity.
For structuring under section 5324, the government must prove the defendant broke up transactions into amounts under $10,000 to avoid the bank’s Currency Transaction Report filing requirement, and that the defendant did so with knowledge of the reporting requirement.
Forfeiture
Money-laundering convictions carry mandatory forfeiture of any property involved in the offense or traceable to it. The government can seize bank accounts, real estate, vehicles, and business assets. Civil forfeiture proceedings may begin before the criminal case is resolved, putting the defendant in the position of fighting for both freedom and property simultaneously.
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If you have been convicted and need an appeal, email us at [email protected].