Source: https://kushlawgroup.com/concealment-money-laundering-18-u-s-code-%C2%A7-1956/
Timestamp: 2018-09-25 11:04:47
Document Index: 211556721

Matched Legal Cases: ['§1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956']

Concealment Money Laundering 18 U.S. Code §1956 -Kushner Law Group
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August 10, 2018 Richard Nguyen Law Articles, Publications No Comments
Concealment money laundering is the knowing transaction or attempted transaction of illegal funds to “disguise the nature, location, the source, the ownership, or the control of the proceeds of specified unlawful activity”. Regulation of this crime can be found in 18 U.S. Code § 1956. To best understand this law, it is easiest to analyze the law its elements. The first element, “knowing,” means that the defendant is aware that both the source and the destination of the funds are a form of illegal activity. The defendant doesn’t need to know the exact activity if they are aware that it is illegal. Likewise, the second element, a “transaction”, refers to any distribution of illegal funds. The final element of concealment money laundering determines which category the offense will fall under. These categories are financial transactions, international transmissions, and stings.
Financial Transactions Explained
The first category of concealment money laundering, financial transactions, as found in 18 U.S. Code § 1956 reads:
Section 1956(a)(1)(B)(i):
B. knowing that the transaction is designed in whole or in part-
The simplest way to understand the elements of a financial transactions offense is to break it down into its two basic parts, that it be financial, and that it be a transaction. Here, the word financial means that it must have funds involved, and the word transaction means that it must contain a form of distribution of proceeds received from crime. Additionally, financial transactions are also defined by their predicate offenses. The predicate offenses, both the original crime and the concealed crime are categorized in State, Federal, and Foreign law. This is because the funds must come from a crime that falls within the defined categories of criminal predicate offenses.
International Transmissions Explained
The second type of concealment money laundering offense are international transmissions, which are found in 18 U.S. Code § 1956 which reads:
Section 1956(a)(2)(B)(i):
International transmissions are easily defined as any action or attempted action to transmit funds from somewhere inside the U.S. to somewhere outside the U.S., or from somewhere outside the U.S. to somewhere inside the U.S. to conceal criminal activity. Like financial transactions, the predicate offenses must fall into the categories of what constitutes a criminal predicate offense.
Stings Explained
The last type of promotional money laundering offense are stings which when defined by 18 U.S. Code § 1956 states:
Section 1956(a)(3)(B):
3. Whoever, with the intent-
(B) to conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity; conducts or attempts to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity, shall be fined under this title or imprisoned for not more than 20 years, or both. For purposes of this paragraph and paragraph (2), the term “represented” means any representation made by a law enforcement officer or by another person at the direction of, or with the approval of, a Federal official authorized to investigate or prosecute violations of this section.
To keep it brief, stings are simply a variation of financial transactions in which law enforcement has manipulated someone into believing that funds are from a criminal source and are being used to promote another criminal activity when they are not. So, a concealment offense becomes classified as a sting when law enforcement officers collude with someone to attempt to cover another criminal activity. Once again, this form of money laundering offense is limited by the categories of predicate criminal offenses.
To be found guilty of concealment money laundering in any form the prosecution must prove beyond a reasonable doubt that:
4. The funds were used for the concealment of another illegal criminal activity
Possible Defenses for Concealment Money Laundering
When formulating a defense against this charge, there are a few strategies to keep in mind:
1. Proving that the defendant did not know the funds were coming from an illegal activity. One of the elements of this crime is that the defendant knew the funds were both coming from and used for illegal activity. If one can demonstrate with supporting evidence that the defendant was ignorant of this fact; they cannot be guilty.
Sentencing for Concealment Money Laundering
Generally, money laundering is punishable by no more than 20 years. Additionally, all funds are subject to seizure, and the judge may impose a fine no greater than $500,000 or twice the value of the funds. Additionally, the government may claim forfeiture of all property in proximity to the criminal activity.
Money laundering charges are serious offenses that require proactive and aggressive legal representation. The Kushner Law Group has had years of experience protecting the rights of our clients in both New York State and the Federal courts. We have won successful results and are here to help guide you through the prosecutorial process. To learn more about the Kushner Law Group, click here. Call us now for a free consultation at (718) 504-1440.