Federal Money Laundering 18 U.S.C. § 1956
Federal money laundering offenses are taken very seriously, and are often intertwined with other federal offenses like mail and wire fraud, drug trafficking, healthcare fraud, and other white collar offenses.
What is Money Laundering
Money laundering refers to actions taken to “clean” money derived from illegal activities, making it appear as if the money came from a legitimate, legal source. 18 U.S.C. § 1956 is the main federal money laundering statute and covers many types of actions. Namely, the statute prohibits three types of money laundering: domestic money laundering, international money laundering, and undercover money laundering.
Elements of Money Laundering
To be convicted of money laundering, the government must prove beyond a reasonable doubt that:
- The defendant engaged in a financial transaction;
- The defendant knew the transaction involved proceeds from illegal activity; and
- The purpose of the transaction was to conceal, disguise, or promote illegal activity.
As for the knowledge element, the government can argue that the defendant had constructive knowledge or was willfully blind, even when the defendant does not have direct knowledge of the illicit nature of the funds. Constructive knowledge means that the defendant knew or should have known of the illicit nature of the funds, while willful blindness refers to a defendant intentionally ignoring facts that would have revealed the criminal nature of the transaction.
Potential Defenses to Money Laundering
Some common defenses to federal money laundering charges include:
- Lack of knowledge: If the defendant did not know that the funds were from criminal activity, they may not meet the required intent element.
- No intent to conceal or promote illegal activity: The defendant may argue that they did not intend to disguise or conceal the nature of the funds or that the financial transaction was unrelated to any illegal activity.
- Mistake of fact: If the defendant reasonably believed the funds were legitimate and were not derived from criminal activity, they may use this as a defense.
- No criminal proceeds: If the funds in question were not obtained from illegal activities, there is no money laundering violation
- Other explanations: In some cases, individuals may be able to show that their involvement in a transaction had an innocent or legitimate purpose
Penalties of Federal Money Laundering
Federal money laundering charges are very serious, and defendants can face penalties, including:
- Imprisonment of up to 20 years
- Fines of up to $500,000 or twice the value of the criminal proceeds, whichever is greater
- Forfeiture of Assets
- Potential Civil and Regulatory Penalties imposed by regulatory bodies like the United States Treasury Department’s Financial Crimes Enforcement Network (FinCEN) or the Securities and Exchange Commission (SEC)
How Our Federal Criminal Defense Attorneys Can Help You
Federal money laundering defenses are complex and depend on the specific facts of each case. Effective defenses may involve demonstrating a lack of intent, knowledge, or understanding of the illegal nature of the financial transactions. Due to the severity of penalties and the intricacies of financial crimes, it’s crucial for those facing money laundering charges to work with experienced criminal defense attorneys. We assist clients in the US District Court for the District of Columbia and the US District Court for the Eastern District of Virginia. Contact us today for a free, confidential consultation regarding your federal money laundering charges.
