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What is Money Laundering?
Money laundering in California involves disguising criminally obtained proceeds through transactions or physical cash relocation to make it appear lawful. Tax evasion is also considered a form of money laundering. Kroger Law's Money Laundering & Cryptocurrency Attorneys are equipped to handle cases involving proceeds from illegal drug sales, tax evasion, and other criminal activities.
What Does the Law Say About Money Laundering?
The following laws outline the criminal definitions and elements of money laundering in California and the United States:
- The Bank Secrecy Act of 1970
- Requires financial institutions to file Suspicious Activity Reports (SARs) and report transactions over $10,000.
- 18 U.S.C. 1956 - Laundering of Monetary Instruments
- This law targets those knowingly engaging in financial transactions using the proceeds of criminal activity.
- Money Laundering Control Act of 1986
- Made money laundering a federal crime, establishing specific penalties for such offenses.
- The USA Patriot Act
- Established anti-terrorism measures, linking money laundering to terror financing and enhancing information sharing between institutions and law enforcement.
- Health & Safety Code §11370.9
- Prohibits laundering proceeds connected to controlled substance manufacture or sales.
What is Cryptocurrency?
Cryptocurrency, such as Bitcoin, Ethereum, and Litecoin, is an intangible digital asset transferable online. Each currency uses blockchain technology to ensure transactions are publicly verified. Bitcoin, for example, has a fixed supply of 21 million units, and transactions are “decentralized,” meaning no central bank oversees them. This unique structure has increased its popularity, as well as its misuse in criminal activities.
Is Cryptocurrency Used to Launder Money?
Cryptocurrency is frequently used in money laundering schemes on dark web marketplaces like Silk Road and Black Market Reloaded. Vendors use cryptocurrency to hide illegal transactions for drugs, weapons, and other contraband. Although many believe Bitcoin is anonymous, authorities have successfully traced transactions, leading to arrests for both money laundering and drug trafficking. Learn more about cryptocurrency fraud defense strategies.
Elements of Money Laundering
To be charged with money laundering, the following elements must be proven:
- Participation in, or attempted participation in, a financial transaction
- Knowledge that the money or property involved stems from unlawful activities
- Criminal origin of the money or property
- Use of proceeds from state, federal, or foreign felonies
- Awareness of the illicit origin of the money or property
What is Considered a Transaction?
Money laundering charges often stem from a "transaction," which can include any of the following:
***Each transaction can constitute a separate count of the crime***
What are the Penalties for Money Laundering?
For violations of 18 U.S.C. 1956:
- Up to 20 years in federal prison
- AND a $500,000 fine
- OR twice the amount involved in the transaction, whichever is greater.
Money laundering convictions are severe, impacting personal, professional, and financial aspects of a person's life. Learn about possible defenses against money laundering penalties.
Legal Defense Strategies for Money Laundering
Case Law: United States v. Santos
Facts of the case:
- Santos operated an illegal lottery, gathering commissions from bets.
- He was convicted under 18 U.S.C. 1956 for money laundering.
- The prosecution argued Santos used "proceeds" from illegal betting to continue unlawful activity by paying winners.
- Upon review, the court ruled that “proceeds” in federal law applies only to criminal profits, not receipts. Without proof of profits, Diaz’s conviction was overturned.
For a defense tailored to your circumstances, read about defense strategies for money laundering cases.
Finding a Money Laundering / Cryptocurrency Defense Attorney in Los Angeles
William Kroger is a skilled and experienced criminal defense attorney representing clients in drug-related, money laundering, and cryptocurrency cases. His team understands the severe impact of these charges and is committed to providing effective defense strategies.
With a proven track record in defending complex criminal cases, contact William Kroger Attorney at Law today at 323-655-5700 to discuss your case. Early intervention is key to building a strong defense.
