What is the penalty if convicted of money laundering?

Penalties If prosecuted as a felony, a sentence can carry up to three years in prison and a maximum fine of $250,000 or twice the amount of money laundered, whichever is more. If a person has prior Money Laundering convictions, the maximum fine can be $500,000 or five times the laundered amount, whichever is greater.

What is the minimum sentence for money laundering?

Jail Time:A minimum sentence of 16 months and up to four years in jail. Fine: This time the fine is a staggering $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.

Is it difficult to prove money laundering?

The government must prove that the source of the money was illegal activity. If they cannot prove that the source of the money was illegal activity, or if the source of the money cannot be traced at all, the prosecution will likely be unable to prove beyond a reasonable doubt that the money was laundered.

How long can you go to jail for money laundering?

Due to the nature of the crime, the federal law has strict penalties for those involved in money laundering. Under federal law, a person can be sentenced up to 20 years in prison for being involved in money laundering.

What is money laundering and why is it a crime?

Money laundering is a term used for the unlawful process through which illegitimate assets are converted into superficially legitimate assets. Illegitimate assets include the money or assets acquired through illegal activities such as embezzlement, corruption or drug trade.

How is money laundering related to tax evasion?

Tax and money laundering violations are closely related and the Internal Revenue Service (IRS) has used the money laundering statutes to combat tax evasion. The other operating divisions of the IRS coordinate to review data collected in compliance with the requirements of the money laundering statutes and Title 31 Bank Secrecy Act (BSA).

Who was arrested on federal wire fraud charges?

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Can a person be charged with just money laundering?

Rarely is someone charged with just a money laundering offense. We usually see money laundering charges brought in cases where someone is being accused of drug conspiracy, mail and wire fraud, racketeering (RICO), or some other financially motivated crime.

Can a racketeering case be a money laundering case?

It can also be a fraud or embezzlement crime. It can be a racketeering/RICO Act-type of crime. Basically, any crime where the person is alleged to have made money, you’re going to see the federal government add money laundering charges to that case, and there’s a good reason for that.

What is the maximum sentence for money laundering?

Also, a very serious crime, but the maximum is 10 years instead of 20 years and the elements are a little different. First of all, it has to involve a monetary transaction. That’s a little bit different from the other money laundering crime.

How does money laundering and currency crimes work?

Both schemes use nominees, currency, multiple bank accounts, wire transfers, and international “tax havens” to avoid detection. This untaxed underground economy ultimately erodes public confidence in the tax system.