How Serious are the Penalties for Money Laundering?

How Serious are the Penalties for Money Laundering?

Money laundering can lead to some pretty serious penalties, depending on the circumstances. Let’s take a look at what money laundering is, what laws apply, and what kind of penalties you could face if convicted.

What is Money Laundering?

Money laundering is the process of making illegally-gained money look like it came from a legitimate source. It’s a way for criminals to hide and “clean” money obtained through criminal activity so it appears legal.

There are a few common methods of money laundering:

• Structuring – Making multiple small deposits or withdrawals to avoid reporting requirements
• Smurfing – Using others to make deposits/withdrawals to avoid reporting requirements
• Trade-based laundering – Misrepresenting the price/quality of goods to justify transfers
• Shell companies – Creating fake businesses to mix legal and illegal money

The goal is to make dirty money look clean on paper so criminals can spend it without raising suspicion. Money laundering allows criminal enterprises to continue operating.

Federal Anti-Money Laundering Laws

There are a few key federal laws that target money laundering activities:

Bank Secrecy Act

Passed in 1970, this law requires financial institutions to keep records and file reports on cash transactions over $10,000. This provides a paper trail for large deposits and transfers that could indicate money laundering.

Money Laundering Control Act

This 1986 law made money laundering a federal crime for the first time. It prohibited individuals from knowingly conducting financial transactions with money gained from certain criminal activities.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Load more

Google rating score: 4.9 of 5, based on 736 reviews

Annunzio-Wylie Anti-Money Laundering Act

This 1992 law strengthened the government’s ability to investigate and prosecute money laundering cases. It required banks to establish anti-money laundering programs.

USA PATRIOT Act

Passed after 9/11, this 2001 law expanded the definition of money laundering and required regulations for industries vulnerable to money laundering beyond just banks.

Penalties for Federal Money Laundering Convictions

Now let’s look at the penalties someone can face if convicted of federal money laundering charges:

Fines

Money laundering fines can be up to $500,000 or twice the amount laundered, whichever is greater. For instances involving $100,000 or more, fines can reach $500,000 or 5 times the amount laundered.[1]

Prison Time

Prison sentences for money laundering can range from 0 to 20 years depending on the circumstances. Harsher penalties come into play as the amount of money laundered increases.[2]

Forfeiture

Individuals convicted of money laundering may have to forfeit any property involved in or traceable to the money laundering offense. This includes money, real estate, vehicles, etc.[3]

State Money Laundering Laws

In addition to federal laws, most states also have their own statutes prohibiting money laundering activities. Here are some examples of state money laundering laws and penalties:

California

California money laundering can be charged as a misdemeanor or felony. As a felony, it carries up to 3 years in prison and a fine of $250,000 or twice the amount laundered.[4]

Texas

Texas law imposes 2nd degree felony charges for money laundering over $100,000. This can result in 2-20 years in prison and fines up to $10,000.[5]

New York

Money laundering over $50,000 in New York is a class B felony, carrying up to 25 years in prison and a fine up to double the amount laundered.

Money Laundering Defenses

There are a few legal defenses that may apply in money laundering cases:

• Lack of knowledge – Defendant was unaware funds came from illegal activity
• No underlying crime – The money didn’t stem from criminal conduct
• Entrapment – Defendant was induced by law enforcement

An experienced criminal defense lawyer can evaluate the evidence and determine if any defenses are viable given the specific circumstances of your case.

Takeaways

Money laundering should be taken very seriously given the steep fines and lengthy prison sentences that can result from federal or state convictions. Penalties tend to increase as the amount of money laundered grows larger.

Some key takeaways:

• Fines up to $500,000 or more, or up to double the amount laundered
• Prison sentences ranging from 0-25 years typically
• Forfeiture of assets and property involved
• An attorney may be able to raise defenses like lack of knowledge

Overall, the penalties for money laundering can be severe. Anyone facing charges should seek guidance from an experienced criminal defense lawyer right away.

Sources

[1] 18 U.S. Code § 1956

[2] Federal Charges – Money Laundering Laws, Charges, Statute of Limitations

[3] FindLaw – Money Laundering

[4] California Penal Code Section 186.10 PC: Money Laundering

[5] Texas Penal Code § 34.02 | FindLaw

New York Consolidated Laws, Penal Law – PEN § 470.20 | FindLaw