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Money laundering: Texas and federal charges

On Behalf of | Jun 1, 2023 | White Collar Crimes

Money laundering is the process of processing illegally obtained funds to make them look like legal money. Money laundering is a serious offense that can be prosecuted at both the state and federal levels.

Texas law

Texas law prohibits money laundering under the penal code. The law specifies that the defendant must have taken part in the transaction knowing that the money was acquired through illegal activity.

Under state law, money laundering can be treated as a felony if the amount of money involved was more than $2,500. It can be treated as a first-degree felony if the amount involved was more than $30,000.

Federal law

Money laundering is also a federal crime (18 U.S.C. § 1956 and 18 U.S.C. § 1957). These laws prohibit anyone from engaging or attempting to engage in a financial transaction involving the proceeds of specified unlawful activities (such as drug trafficking, terrorism, fraud, bribery, etc.). There is also an intent requirement, as with the Texas statute.

By their nature, money laundering charges are related to other alleged crimes. Under federal law, these crimes can include not only things like drug trafficking and theft, but also tax evasion and avoiding any federal reporting requirement. It also includes trying to or promoting unlawful activity, disguising the illegal nature of the money, its source, ownership or the control of those monies.

Money laundering under 18 U.S.C. § 1956 is a felony punishable by up to 20 years in prison and a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater.

Money laundering under 18 U.S.C. § 1957 is a felony punishable by up to 10 years in prison and a fine of up to $250,000 or twice the value of the property involved in the transaction, whichever is greater.