Money laundering is more about the intent than the amount of money, but you will likely be investigated for money laundering if you bring more than $10,000 in cash into or out of the United States, deposit $10,000 or more in cash into a bank account, or if you spend more than $300,000 in cash on a real estate purchase.
Even before the pandemic, cash transactions accounted for a smaller percentage of all sales. Inserting a credit card into a chip reader or holding your Apple Watch up to a device that accepts Apple Pay have become common ways of making purchases in person, to say nothing of storing your debit card information in ecommerce apps and floating your friends and relatives $20 on Venmo instead of just handing them a banknote. In these circ*mstances, keeping large amounts of cash seems increasingly shady; perhaps cryptocurrency is the only shadier way to shop. At least, law enforcement tends to see it that way. If you have $100,000 in cash in a shoebox in your closet, chances are that not all of it came from the proceeds of your dog walking business. From a legal perspective, large cash transactions raise red flags about money laundering. If you are being accused of money laundering when, in fact, you prefer to cash your paycheck so you cannot be tempted to swipe your debit card, contact the Gwinnett County, Georgia white collar crimes defense lawyers at Zimmerman & Associates.
The Many Manifestations of Money Laundering
Money laundering is any operation in which a person or group of people makes transactions to disguise the origins of money obtained through illegal activities (such as drug trafficking or sex trafficking) to make it appear as though it came from legitimate source. These are some common money laundering tactics:
- Having several individuals divide the illegally obtained money into small amounts and deposit it in a large number of bank accounts, resulting in so many transactions that the money becomes difficult to trace.
- Smuggling cash across national boundaries.
- Buying valuable items such as real estate and luxury cars in cash and then reselling them.
- Listing assets in the name of shell corporations.
- Falsifying the records of businesses that naturally deal in cash (such as restaurants and laundromats) to make the illegally obtained cash appear to be a normal part of the company’s revenues.
U.S. Money Laundering Facts and Statistics
Money laundering can get you in serious trouble. More people get charged with money laundering in the United States than in any other country, and 91% of defendants convicted of money laundering receive prison sentences. The average money laundering case involves just over $200,000 of laundered money. Despite this, 95% of automatically generated money laundering alerts (such as when someone buys real estate in cash or makes a large cash deposit in a bank) are false positives and do not represent actual money laundering.
Contact Zimmerman & Associates About Money Laundering Defense
An Atlanta criminal defense lawyer can help you defend yourself against accusations of financial crimes such as money laundering. Contact Zimmerman & Associates in Norcross, Georgia to set up a free consultation.
FAQs
Currency Transaction Report (CTR) — MSBs must file CTRs on transactions in currency involving more than $10,000, in either cash-in or cash-out, conducted by, through, or to the MSB on any one day by or on behalf of the same person.
How much money is needed to be considered money laundering? ›
Prosecutions under 18 U.S.C. § 1957 arise when the defendant knowingly conducts a monetary transaction in criminally derived property in an amount greater than $10,000, which is in fact proceeds of a specified unlawful activity.
What counts as money laundering? ›
Money laundering involves disguising financial assets so they can be used without detection of the illegal activity that produced them. Through money laundering, the criminal transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source.
How much money laundering goes undetected? ›
Despite a high imprisonment rate of 91.1% for money laundering offenders, a staggering 90% of money laundering crimes go undetected.
What is the minimum sentence for money laundering? ›
Jail time: A minimum sentence of 16 months and up to four years in jail. Fine: The fine is up to $250,000, or twice the amount of money laundered.
Is 5000 considered money laundering? ›
The total amount of the transaction(s) must be more than $5,000 in a seven day period OR more than $25,000 in a 30 day period. The transaction(s) was made with the intent to promote criminal activity or the defendant knew that the funds involved were from the proceeds of criminal activity.
What is the 10k cash deposit rule? ›
Depositing a big amount of cash that is $10,000 or more means your bank or credit union will report it to the federal government. The $10,000 threshold was created as part of the Bank Secrecy Act, passed by Congress in 1970, and adjusted with the Patriot Act in 2002.
How do banks know if you are money laundering? ›
Signs that indicate one of your customers may be involved in money laundering include: Unusual financial activity that is out of character when compared with their usual transaction patterns. Large cash deposits are made with no justification for where the funds came from.
How is money laundering proven? ›
Money laundering prosecutions will usually be based on circ*mstantial evidence, whereby a number of pieces of evidence are adduced, from which inferences are drawn to meet the standard of proof that the property in question has a criminal origin.
How do you prove you are not money laundering? ›
Bank records and statements play a crucial role in proving the legitimate source of assets or cash. These documents provide a transparent and verifiable record of financial transactions, ensuring accountability and preventing money laundering or illegal activities.
The traditional forms of laundering money are smurfing, using mules, and opening shell corporations. Other methods include buying and selling commodities, investing in various assets like real estate, gambling, and counterfeiting. The rise of digital technology also makes it easier to launder money electronically.
What is the best example of money laundering? ›
What Is an Example of Money Laundering? Cash earned illegally from selling drugs may be laundered through highly cash-intensive businesses such as a laundromat or restaurant where the illegal cash is mingled with business cash before deposit. These types of businesses are often referred to as “fronts.”
What is the money laundering limit in USA? ›
In general, the maximum BSA criminal penalty is: $250,000 and five years' imprisonment for individuals for each violation; or, if part of a pattern of any illegal activity involving more than $100,000 in a 12-month period or while violating another U.S. criminal law, $500,000 and 10 years' imprisonment for individuals.
What evidence is needed for money laundering? ›
Types of circ*mstantial evidence that may be used in a money laundering case include accomplice evidence, which involves testimony from the person who caused the "creation" of the criminal proceeds, whether by drug sales, fraud, or other form of criminal activity; admissions by a defendant during a police interview; ...
What is the estimate of money laundering? ›
The scale of money laundering is difficult to assess, but it is considered to be significant. The United Nations Office on Drugs and Crime (UNODC) estimates that between 2 and 5% of global GDP is laundered each year.
What is considered a money laundering offence? ›
A person commits an offence if he/she… Conceals criminal property. Disguises criminal property. Converts criminal property. Transfers criminal property.
