Money laundering charges can have severe and lasting consequences. Whether a person is accused of moving illicit funds through multiple financial transactions or using legitimate businesses to disguise criminal proceeds, these allegations are serious. If convicted, the penalties can be devastating, including lengthy prison sentences, substantial fines, and permanent reputational harm. It is crucial to understand how money laundering is defined, the legal ramifications, and what steps to take if you or your business faces those accusations.
What Is Money Laundering?
Money laundering is the process of disguising the source of money gained through illegal activity, such as drug trafficking, fraud, or corruption. The aim is to make the funds appear legitimate so they can be freely used within the economy. Typically, money laundering occurs in three stages: placement (introducing illicit funds into the financial system), layering (conducting multiple transactions to obscure the money’s origin), and integration (returning the “cleaned” money into the legitimate economy). With the advent of digital currencies and global financial networks, money laundering schemes have become even more intricate, necessitating meticulous oversight by financial institutions and regulators.
Under federal law, 18 USCS §1956 prohibits various forms of money laundering, including “promotion money laundering,” which entails conducting financial transactions with the explicit objective of facilitating further unlawful activities, and “concealment money laundering,” which involves employing tactics such as structuring deposits to evade detection, utilizing shell companies or trusts, acquiring high-value assets, or transacting funds across international borders.
State statutes also address money laundering with elements that differ from the federal standard. For instance, California law (Cal. Pen. Code § 186.10) criminalizes transactions exceeding $5,000 within seven days or $25,000 within 30 days if conducted with the intent to promote or conceal criminal activity.
Defending Against Money Laundering Charges
At Romano Law, we understand how overwhelming it can be to face money laundering allegations. Our experienced attorneys are well-versed in both state and federal money laundering laws and can provide a robust defense tailored to the unique circumstances of each case. We know that money laundering cases often involve complicated financial transactions and require a deep understanding of how to challenge the government’s evidence. For example, we can examine whether the financial activities in question truly constitute “layering” or “integration,” or whether they were legitimate transactions misunderstood by prosecutors.
Additionally, we understand the importance of challenging the intent element. Money laundering necessitates demonstrating that the accused intentionally participated in financial transactions involving criminal gains. If we can establish a lack of intent or that the defendant was unaware of the illicit nature of the funds, it is highly possible to have the charges reduced or dismissed.
State and Federal Penalties
In New York, money laundering is prosecuted under Article 470 of the Penal Law. Penalties vary depending on the amount of money involved. For example, laundering over $1 million is a first-degree offense and can result in up to 25 years in prison. Even lesser degrees, such as fourth-degree laundering involving $5,000 or more, carry potential jail time and substantial fines. In addition, conviction can lead to asset forfeiture, including the loss of homes, cars, and business assets tied to the alleged laundering activity.
At the federal level, money laundering penalties are governed by 18 U.S.C. §§ 1956 and 1957. Federal penalties are particularly severe, with potential sentences of up to 20 years in prison and fines of up to $500,000 or twice the value of the property involved, whichever is higher. Federal prosecutors frequently pursue these charges when the laundering involves interstate or national borders, substantial financial transactions, or connections to organized crime or terrorism.
Both state and federal authorities can seek to seize assets they believe are connected to money laundering activities. Defendants may face not only criminal charges but also civil forfeiture proceedings, which can strip them of their property even before a conviction is secured. Having a knowledgeable legal team is essential in these high-stakes situations to protect both your freedom and your assets.
If You Need Help, Call Us
If you or your business is under investigation for money laundering, don’t wait—call Romano Law today. Our experienced attorneys will fight tirelessly to protect your rights, challenge the prosecution’s case, and guide you through this complex legal landscape.
Facing money laundering charges can feel overwhelming, but with Romano Law on your side, you will have a team dedicated to achieving the best possible outcome for you. Call us today for a confidential consultation.
