Is Money Laundering a Federal Crime - Scrofano Law, PC (2024)

FAQs

Is Money Laundering a Federal Crime - Scrofano Law, PC? ›

Those facing money laundering charges should know that this is a severe offense under federal criminal law. A money laundering conviction can result in fines of up to $500,000 or “twice the value of the property involved in the financial transaction, whichever is greater.”

After the passage of the Money Laundering Control Act of 1986, money laundering became a federal crime punishable by a substantial prison sentence. This federal statute contains 18 U.S.C. § 1956 and 18 U.S.C. § 1957 Monetary Transactions in Property Derived from Specified Unlawful Activity.

The rise of technology and interconnected devices has opened up new avenues for criminals to exploit unsuspecting individuals and organizations. One significant aspect of cyber crimes is their connection to money laundering, where illicitly gained funds are disguised to appear legitimate.

If you are a money mule, you could be prosecuted and incarcerated as part of a criminal money laundering conspiracy. Some of the federal charges you could face include mail fraud, wire fraud, bank fraud, money laundering, and aggravated identity theft.

At the federal level, the Money Laundering Control Act of 1986 criminalises money laundering. The act consists of two provisions: 18 U.S.C. § 1956 (Laundering of Monetary Instruments) and 18 U.S.C. § 1957 (Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity).

Guidelines for Money Laundering Offenses

Section 2S1. 1 of the USSG applies to violations of 18 U.S.C. §§ 1956 and 1957, the money laundering statutes. For many defendants convicted under these statutes, the Offense Level begins at “8” and is then increased based on the value of the laundered funds.

From identity theft to money laundering, financial crime is becoming even more sophisticated and globally organised and can affect anyone. That's why it's so important to take the extra steps to detect, deter and protect against financial crime.

If you're accused of laundering $500,000 or more, you could face 10-20 years in prison and a maximum fine of either $200,000 or three times the value of the property involved, whichever is greater. If you're convicted, you'll be ineligible for parole for at least ⅓ to ½ of your sentence.

The FBI focuses its efforts on money laundering facilitation—targeting professional money launderers, key facilitators, gatekeepers, and complicit financial institutions, among others. Criminals who engage in money laundering derive their proceeds through: Complex financial crimes.

The three main money laundering offences (or prohibited acts) under Part 7 of POCA are: concealing, disguising, converting, transferring, or removing criminal property (s327) arranging or facilitating criminal property (s328) acquiring, using or possessing criminal property (s329)

How much money is considered a federal crime? ›

If the total value of the property stolen is $1000 or less, it's a federal misdemeanor. If convicted, you could face up to one year in federal prison and fines of up to $100,000, If the total value exceeds $1000, it's a felony offense.

You have 30 calendar days to file a SAR after becoming aware of any suspicious transaction that is required to be reported. 1. Record relevant information on a Suspicious Activity Report by MSB (SAR-MSB) form available at www.msb.gov or by calling the IRS Forms Distribution Center: 1-800-829-3676.

Counterfeit or Stolen Instruments. Identity Theft. Money Laundering. Suspicious Activity Reports (SAR) Unauthorized Banking.

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.

conducts or attempts to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity, shall be fined under this title or imprisoned for not more than 20 years, or both.

A five year criminal statute of limitations applies to all money laundering violations of 18 USC §1956 and 18 USC §1957. The five year statute also applies to violations of 18 USC §1960 absent any other specific provision.

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. For the purposes of calculating the fine, the court imposes the higher of the two amounts. Combination: Jail time and a fine.

No matter the method, money laundering is a serious criminal activity punishable by state and federal law. These serious allegations can impact every aspect of your life negatively.

Money laundering is a serious crime under federal law. A violation of 18 U.S.C. §1956 can result in a sentence of up to 20 years in prison.