What Happens if You Are Accused of Money Laundering (2024)

In today’s complex financial and legal landscape, accusations of money laundering can have severe consequences that range from reputational damage to lengthy legal battles resulting in significant monetary fines and penalties and even imprisonment.

If you have been accused of money laundering, you are likely wondering what steps you should take to protect your rights and build a strong defense. Below, we will delve into everything you should know when you are suddenly involved in a money laundering case and facing the prospect of related charges.

What is money laundering?

Money laundering is the illegal process of disguising the origins of money that has been obtained through illicit means. An estimated 2–5% of the global GDP—which amounts to trillions of dollars—is laundered every year.

The allegation that most often surrounds money laundering investigation is that someone is committing money laundering by employing numerous transactions to hide the illegal origin of their alleged “dirty money,” which the government claims was earned through illicit means. The government’s allegations when bringing a money laundering claim is that the individual’s goal was to make it seem like they have earned the money through legal means and make it challenging for law enforcement to trace the funds back to their source.

Allegations of money laundering

In most cases, money laundering allegations involve these three steps. The government alleges a series of financial transactions working to actively conceal the origin of illegally obtained money:

1. Placement: This first step happens when the money is initially introduced into the financial system through numerous purchases and deposits (e.g., through debt repayment, gambling, and/or mixing the funds into those of an actual business).
2. Layering: This term refers to the “layering” of many financial transactions, moving the funds around and dividing them up to render them less conspicuous.
3. Integration: The original owner(s) of the money get it back as income now that it has been laundered and made “clean.”

Penalties for money laundering

People generally consider money laundering to be a non-violent crime motivated by financial profit, describing it as a white-collar crime. But this does not mean money laundering charges are not considered a serious form of criminal activity by law enforcement—in fact, white-collar crime is by no means victimless and can have severe and long-lasting consequences.

If you are convicted of money laundering, you could face both state and federal penalties, including a criminal conviction and imprisonment. The penalties will depend on how much money was laundered but can reach up to 20 years in prison and up to $500,000 or twice the value of the laundered funds (whichever is greater).

The U.S. government will impose additional penalties if money laundering is deemed part of a long-term criminal enterprise or terrorist activity. Non-citizens accused of laundering money over $100,000 could face detention and deportation proceedings if found guilty, as it is considered an aggravated felony.

How money laundering investigations work

Money laundering investigations can be highly complex and often involve collaboration among multiple law enforcement agencies, including the FBI, the IRS, and the U.S. Department of the Treasury.

The process usually begins with suspicion or evidence of illegal financial activities, which may be detected when automatic monitoring systems flag suspicious activity. Under the Bank Secrecy Act, financial institutions are required to report these kinds of suspicious transactions.

Next, authorities use investigative tools like financial audits, surveillance, undercover operations, and cooperation with partner organizations to track the funds’ movement through multiple accounts and jurisdictions.

Once investigators collect sufficient evidence, prosecutors can bring charges under federal money laundering statutes, which criminalize the concealment, transfer, and use of proceeds from illegal activities.

How long does a money laundering investigation take?

The process of investigating money laundering may require authorities to gather evidence, trace financial flows, interview witnesses, collaborate with international authorities, and navigate legal proceedings.

The time it takes to complete all these steps can vary significantly based on many factors:

• Complexity of the case
• Jurisdiction
• Resource availability
• Cooperation from involved parties
• Legal complexities
• Bureaucratic procedures

Simple investigations may be resolved within just a few months, while intricate cases involving numerous transactions, multiple jurisdictions, or sophisticated money laundering methods could take years and extensive resources to conclude.

Steps to take if you are facing money laundering charges

To give yourself the strongest chance of fighting a money laundering conviction, the first thing you should do when you are accused is reach out to a criminal defense attorney with extensive experience in federal investigations. When you meet with an attorney, you can assess your liability and receive careful guidance on how to interact with law enforcement authorities throughout the investigation in order to establish the legal source of any questioned funds and prove your innocence.

It is important that you do not discuss your case with anyone except your attorney. This means avoiding conversations about the case with friends or family, business associates, co-workers or employees.

To help your attorney build a strong defense case, you must gather any and all evidence that can be used to refute the charges. This includes financial records, bank statements, and any other relevant documents. Organizing this information will also be helpful.

Consult with an attorney

The criminal defense attorneys at Dughi, Hewit & Domalewski understand precisely how serious money laundering allegations can be—and how much of an impact they can have on your future.

They also have experience helping many others avoid money laundering convictions, and from the moment you contact them they will do everything in their power to help you achieve the same successful outcome.

Relying on their extensive experience and their in-depth knowledge of both New Jersey law and of federal statutes and procedures, they will interpret the money laundering charges that have been brought against you, advise you on exactly how to respond to optimize your outcomes, draft a strategy with you, and help you meet legal requirements as you navigate this process.

To find out more about how Dughi, Hewit & Domalewski can minimize the long-term effect of money laundering allegations on your future, schedule a consultation with our team today.