How Does Money Laundering Work?
Money laundering is a complex process that involves cleaning dirty or illegal money made through unlawful activities to make it appear clean or lawfully obtained. It involves complex financial transactions to hide the real sources of money. The illicit funds are typically sourced from drugs or weapons sales, embezzlement, theft, corruption, human trafficking, extortion, bribery, terrorist activities, or other criminal acts.
For instance, a drug cartel may use shell companies to funnel drug money into a legitimate business. It may move the money between different banks, effectively disguising its origins and making it extra difficult to trace. The cartel integrates the laundered money into its legitimate business or investments, allowing it to use the money without eliciting suspicion.
If you’re facing money laundering charges, you will need an experienced Columbia money laundering attorney to build your defense as soon as possible or risk paying hefty fines and going to prison for a very long time.
What Is The Money Laundering Cycle?
The money laundering cycle involves three stages:
The Placement Stage
Entails depositing money into various bank accounts to distance it from its illegal sources.
The Layering Stage
The money undergoes multiple complex transactions. This stage can include one or a combination of the following:
- Moving money between state, national, or international banks.
- Investing in shell companies that are usually involved in the retail, hospitality, real estate, arts, recreation, and luxury industries.
- Purchasing and selling assets, such as real estate, jewelry, art, or luxury goods.
The main goal of this stage is to make it difficult for authorities to trace the source of dirty money, its nature, ownership, and location.
The Integration Stage
Involves integrating the laundered money into the perpetrator’s legal businesses or investments.
Take note that money laundering charges are typically separate related charges secondary to another offense. The primary offense is how the perpetrator obtained the illicit funds, which commonly include drugs, weapons, human trafficking, fraud, and theft.
What You Should Know About Money Laundering Penalties
During sentencing, judges will consider the perpetrator’s criminal history, the facts of the case, and the amount of laundered money. In general, the greater the amount of laundered money, the higher the fines. Likewise, a repeat offender usually faces longer prison sentences.
For instance, a repeat offender may face up to 20 years in prison and fines up to $500,000 or five times the amount of laundered money involved, whichever is higher. Additionally, the penalties are dependent on whether the offense is considered a felony or misdemeanor and whether the perpetrator is prosecuted in federal or state court.
Due to the gravity of money laundering penalties, you should work with a Columbia money laundering lawyer when navigating investigations and allegations of money laundering and related offenses. Your Columbia money laundering attorney can effectively challenge the evidence against you, craft a compelling defense strategy, and ensure you get a fair trial.
Facing Money Laundering Charges? Contact Our Esteemed Columbia Money Laundering Lawyer Now
Start building your defense and protecting your future now by arranging your consultation with Jonathan Harvey, our Columbia money laundering attorney. Contact us online or by phone for more details.