When the FBI Comes Calling…®

MONEY LAUNDERING (Continued)

The Punishment
The punishment for a violation of 18 U.S.C. § 1956(a)(1) is

  • a fine of not more than $ 500,000 or twice the value of the property involved in the transaction, whichever is greater,
  • imprisonment for not more than twenty years,
  • or both. 18 U.S.C. § 1956(a)(1)(B)(ii)

The punishment for a violation of 18 U.S.C. § 1956(a)(2) is

  • a fine of not more than $ 500,000 or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater,
  • imprisonment for not more than twenty years,
  • or both. 18 U.S.C. § 1956(a)(2)
  • For the purpose of the offense described in 18 U.S.C. § 1956(a)(2)(B), the defendant's knowledge may be established by proof that a law enforcement officer represented the matter specified in 18 U.S.C. § 1956(a)(2)(B) as true, and the defendant's subsequent statements or actions indicate that the defendant believed such representations to be true. 18 U.S.C. § 1956(a)(2)(B)(ii).

    • The punishment for a violation of 18 U.S.C. § 1956(a)(3) is

    • a fine under this title
    • imprisonment for not more than 20 years
    • or both. 18 U.S.C. § 1956(a)(3)(C).
      • For purposes of 18 U.S.C. §§ 1956(a)(3) and (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. 18 U.S.C. § 1956(a)(3)(C).

    In addition to the criminal penalties, there are civil penalties owed to the United States for violations of 18 U.S.C. §§ 1956 or 1957. The penalty in this situation is not more than the greater of

    • the value of the property, funds, or monetary instruments involved in the transaction, 18 U.S.C. § 1956(b)(1)(A); or
    • $ 10,000. Id. § 1956(b)(1)(B).

    Furthermore, a district court dealing with foreign persons can issue a pretrial restraining order or take any other action necessary to ensure that any bank account or other property held by the defendant in the United States is available to satisfy a judgment. 18 U.S.C. § 1956(b)(3).

    Finally, a district court dealing with a foreign person can also appoint a Federal Receiver to collect, marshal, and take custody, control, and possession of all assets of the defendant, wherever located, to satisfy a civil judgment under this subsection, a forfeiture judgment under 18 U.S.C. §§ 981 or 982, or a criminal sentence under 18 U.S.C. §§ 1956(a) or 1957, including an order of restitution to any victim of a specified unlawful activity. 18 U.S.C. § 1956(b)(4).

    Definitions

    • "knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity" means that the person knew the property involved in the transaction represented proceeds from some form, though not necessarily which form, of activity that constitutes a felony under State, Federal, or foreign law, regardless of whether or not such activity is specified in 18 U.S.C. § 1956(c)(7). 18 U.S.C. § 1956(c)(1).
    • "conducts" includes initiating, concluding, or participating in initiating, or concluding a transaction. Id. § 1956(c)(2);
    • "transaction" 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. Id. § 1956(c)(3).
    • "financial transaction" means (A) 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. Id. § 1956(c)(4).
    • "monetary instruments" means
      • coin or currency of the United States or of any other country, travelers' checks, personal checks, bank checks, and money orders, Id. § 1956(c)(5)(i),
      • investment securities or negotiable instruments, in bearer form or otherwise in such form that title thereto passes upon delivery. Id. § 1956(c)(5)(ii);
    • the term "financial institution" includes-
      • any financial institution, as defined in 31 U.S.C. § 5312(a)(2) or the regulations promulgated thereunder, Id. § 1956(c)(6)(A); and
      • any foreign bank, as defined in section 1 of the International Banking Act of 1978 (12 U.S.C. 3101). 18 U.S.C. § 1956(c)(6)(B).
    • "State" includes a State of the United States, the District of Columbia, and any commonwealth, territory, or possession of the United States. Id. § 1956(c)(8)

    Money Laundering Continued-->