Money laundering is a federal white-collar crime that can result in significant penalties, including decades in prison. The Money Laundering Control Act of 1986 establishes details of this crime and the consequences that defendants may face for violating the law. Under federal law, you could face up to 20 years in prison and hefty fines.
If you are under investigation or facing charges in Albuquerque or anywhere in New Mexico, these cases are prosecuted aggressively in federal court and require an immediate legal response.
What Is Money Laundering?
Money laundering occurs when an individual disguises the source, amount, or destination of money obtained illegally. This often happens through bank transfers and interactions with legitimate businesses. Funds are usually obtained through embezzlement, fraud, drug trafficking, or other unlawful activities. In federal cases, prosecutors must typically prove that the defendant knew the funds were derived from unlawful activity and took steps to conceal or disguise them.
Money laundering is often associated with other crimes, such as racketeering, tax evasion, credit card fraud, cryptocurrency crimes, and white-collar crimes, which may be added or lesser-included charges. It is also frequently prosecuted under federal statutes such as 18 U.S.C. §§ 1956 and 1957.
Domestic Money Laundering
Domestic money laundering is often associated with false organizational operations. An individual may form a business and transfer money between domestic bank accounts. The more money is transferred, the harder it is to track. To avoid money laundering charges, it’s important to carefully track every penny in personal and business accounts.
Common domestic schemes may also include “structuring” or “smurfing,” in which transactions are split into smaller amounts to avoid financial reporting requirements.
International Money Laundering
Many money laundering activities take place between domestic and international bank accounts. International bank accounts are more difficult to track. This makes it easier for an individual to hide the source, amount, and destination of money. International money laundering may result in criminal charges in multiple countries. These cases often involve cross-border financial investigations involving federal agencies such as the FBI and IRS Criminal Investigation Division.
Undercover “Sting” Laundering Operations
If the government suspects money laundering is occurring, it may set up an undercover “sting” operation. A sting operation creates a situation in which an individual may engage in money laundering that they would not otherwise. Sting operations are often considered “entrapment,” in which police persuade an individual to commit illegal activity.
However, entrapment is a legal defense that requires showing you were induced to commit a crime and were not otherwise predisposed to engage in illegal conduct.
Federal Sentencing for Money Laundering
There is no mandatory minimum sentence for federal money laundering charges. However, the penalties can be severe. The government views money laundering very harshly.
A money laundering conviction could result in up to 20 years in federal prison. Additionally, you will likely face a fine of up to $500,000 or twice the value of the property involved in the laundering, whichever is greater. In addition to incarceration and fines, convictions may also result in asset forfeiture and long-term financial consequences.
Money laundering convictions are often combined with other charges, such as racketeering. By combining the offenses, you may face even stricter penalties. Sentences are typically calculated under the U.S. Sentencing Guidelines, which consider the amount of money involved and the nature of the alleged conduct.
Sentencing Factors
Although the maximum penalty for money laundering is significant, it is unlikely that a person will receive the harshest consequences unless aggravating factors are present. If you are a first-time offender, your criminal defense lawyer can present mitigating factors to lessen your sentence.
Some mitigating factors that may make your sentence less harsh include:
- This is your first criminal offense
- You can quickly pay all fines and restitution
- You opt for alternative punishments like community service
- You weren’t aware of the circumstances surrounding the crime
- You didn’t know the source of the money
- Extent you worked with or assisted law enforcement
- Lack of knowledge of specific facts
- Whether you take a plea bargain or go to trial
Federal judges also consider acceptance of responsibility, cooperation with investigators, and the strength of the government’s evidence when determining sentencing outcomes.
Aggravating factors can also increase your sentence, up to the maximum term of imprisonment. Those aggravating factors include:
- The extent to which you were involved in the crime
- Knowledge of what took place
- Involvement of other individuals in the crime
- Length of time the activities occurred
Use of sophisticated financial transactions or concealment methods.
Defending Against Money Laundering Charges
Your money laundering defense attorney can attack the allegations against you in many ways. Some common defenses and strategies used include:
- There was no underlying criminal conduct
- You did not have the requisite intent to commit the crime
- You did not know that the money was from an illegal source
- There was an illegal search and seizure
- You were not read Miranda rights
- You were not provided with legal counsel when requested
In federal money laundering cases, defense strategies often focus on intent, knowledge, and whether the government can trace funds to a qualifying unlawful activity.
Any illegally obtained evidence, including your own statements, may be excluded from the case. If the judge grants a motion to exclude evidence, the prosecution may not have enough information to sustain charges against you, and your case may be dismissed. These motions are often critical in federal white-collar defense cases where financial evidence is complex or improperly obtained.
A Criminal Defense Lawyer Can Help
Money laundering charges carry severe penalties that can seriously affect your personal and professional life. You need to work with a white-collar crime lawyer who can protect your legal rights and reputation.
Call Harrison & Hart, LLC today at (505) 295-3261 or contact us online to schedule a consultation. If you are facing federal money laundering allegations in Albuquerque or anywhere in New Mexico, early intervention from a defense attorney can make a significant difference in the outcome of your case.
