Atlanta Money Laundering Lawyer

Money laundering is prosecuted under two statutes: 18 U.S.C. §§ 1956 and 1957. Section 1956 criminalizes four kinds of money laundering—promotional, concealment, structuring, and tax evasion laundering of the proceeds generated by certain predicate offenses, referred to as “specified unlawful activities.” Section 1957 prohibits depositing or spending more than $10,000 of the proceeds from a predicate offense.

The specified unlawful activities to which the money laundering statutes apply include those identified in 18 U.S.C. § 1956(c)(7) and those incorporated by reference from the federal racketeering statute, 18 U.S.C. § 1961(1). In total, there are over 200 federal crimes constituting predicate offenses that can serve as the basis of a money laundering charge.

To obtain a conviction for money laundering under section 1956, the government must prove that the charged individual either conducted, or attempted to conduct, a financial transaction involving the proceeds of predicate offenses. The government must also prove that the individual had the requisite state of mind at the time he engaged, or attempted to engage, in the transaction. Under the money laundering statute, this means that the individual must have acted with (1) with the intent to promote further predicate offenses; (2) with the intent to evade taxation; (3) knowing that the purpose of the transaction is to conceal laundering of the proceeds; or (4) knowing the transaction is designed to avoid anti-laundering reporting requirements.

In cases where a defendant is charged with federal money laundering based on concealment of the proceeds of illegal activity, the government does not have to prove that the defendant knew the particulars of the underlying offense. Instead, the government need only show that the defendant knew the funds were the proceeds of some kind of illegal activity and knew the transaction was for the purpose of concealing or disguising the nature, location, source, ownership, or control of the illegally obtained proceeds.

Although section 1956 does not criminalize the mere spending or depositing of ill-gotten gains absent some element of promotion, concealment, reporting avoidance, or evasion, section 1957 prohibits the spending or depositing of criminal proceeds when the transaction involves $10,000 or more.

To prove a violation of section 1957, the government must show that the individual charged (1) knowingly engaged, or attempted to engage, in a monetary transaction (2) involving illegally-obtained funds in excess of $10,000, (3) with knowledge that the funds were derived from criminal activity. A “monetary transaction” under § 1957 is any deposit, withdrawal, or transfer of funds involving a financial institution. A “financial institution,” in turn, broadly includes not only banks and credit unions, but also SEC-registered brokers and dealers; investment bankers and investment companies; issuers, redeemers, or cashiers of travelers’ checks, checks, or money orders; dealers in precious metals, stones, or jewels; pawnbrokers; loan or finance companies; travel agencies; car dealerships and other businesses that sell vehicles, including airplanes and boats; persons involved in real estate closings and settlements; the United States Postal Service; and casinos. 18 U.S.C. § 1956(c)(6); 31 U.S.C. § 5312(a)(2).