Money Laundering Charges Involve Everything from Business Fraud to Drug Trafficking
Domestic Money Laundering
“The thing with money is, it makes you do things you don’t want to do.”
Domestic Federal Money Laundering in Michigan
18 USC §1956(a)(1) governs domestic money laundering, which essentially is the most common form. This federal crime has five elements, as seen below:
An individual conducts or attempts to conduct
A financial transaction
Which in fact involves proceeds of a specified unlawful activity
Knowing the property involved represents the proceeds of some form of unlawful activity
With the intent to promote the carrying out of the specific illegal activity or knowing that the transaction is designed in whole or part to conceal the nature and source of the proceeds of illegal activity or to avoid a transnational reporting requirement
Viewing the above elements, federal domestic money laundering can be a confusing statute. However, breaking these elements down can give you a better idea of what exactly constitutes money laundering
Conducts or Attempts to Conduct
Conducting basically means initiating, concluding, or participating in initiating or concluding a transaction. This is the element of money laundering that requires participation by the individual charged. Simply put, if the accused didn’t actually make any effort to do anything with any illegal proceeds, then there is no conduct.
A Financial Transaction
A transaction, per 18 USC 1956(c)(3) includes a purchase, sale, loan, pledge, gift, transfer, delivery, or other disposition, and with respect to a financial institution includes a deposit, withdrawal, transfer between accounts, exchange of currency, loan, extension of credit, purchase or sale of any stock, bond, certificate of deposit, or other monetary instrument, use of a safe deposit box, or any other payment, transfer, or delivery by, through, or to a financial institution, by whatever means effected. A financial transaction is a transaction which in any way or degree affects interstate or foreign commerce (i) involving the movement of funds by wire or other means or (ii) involving one or more monetary instruments, or (iii) involving the transfer of title to any real property, vehicle, vessel, or aircraft, or (B) a transaction involving the use of a financial institution which is engaged in, or the activities of which affect, interstate or foreign commerce in any way or degree.
Specific Unlawful Activity
18 USC 1956(c)(7) provides an exhaustive list of the types of unlawful activities in which the federal money laundering statute applies. Most common are crimes involving drug trafficking, fraud, bribery, sex trafficking, smuggling, or racketeering. Viewing the statute itself, it is so broad and encompassing that near every type of crime could technically fall under its legal umbrella.
Knowledge the Proceeds are from an Unlawful Activity
This element means that the defendant knew the property involved in the transaction represented the proceeds of some form, though not necessarily which form, of activity that constitutes a felony under state or federal law. The knowledge element is very important for defending a felony money laundering charge, as it may be difficult for the Government to prove that the charged individual knew where the money actually came from. An example would be a banker who did not know they were taking money from a drug kingpin.
Intent
The final element of federal domestic money laundering is that the Government must prove that the defendant had the intent to either promote the carrying on of whatever unlawful activity is involved, or to violate specific provisions of the Federal Tax Code. This element is different than knowledge and requires a jury to find that the charged person actually intended to help with the underlying unlawful activity. This opens another door for a possible money laundering defense.
Experienced Federal Money Laundering Attorneys
Money laundering is almost always a part of any major complex federal case we handle in the Eastern District of Michigan. Defending a money laundering criminal charge takes an aggressive and sound approach that begins the moment we are retained. Contact us today to discuss your case.