What Happens If You Are Suspected of Money Laundering?

November 11, 2024

Money laundering is a serious financial crime that involves concealing the origins of illegally obtained funds to make them appear legitimate. Money laundering offenses can be charged both in state and federal court. If you are being investigated for money laundering, you must seek qualified criminal lawyers to represent your interests. The consequences of being charged and convicted for money laundering can be far-reaching and certainly impact every aspect of your life, from your finances to your freedom. In the U.S., strict anti-money laundering laws are enforced at both the state and federal levels, and individuals suspected of money laundering can face significant penalties, including fines, asset seizures, and most importantly lengthy prison sentences.


At Donet, McMillan & Trontz, P.A. , we understand the complexities of money laundering cases and the stress that coincides with being investigated and/or charged with this serious offense. This blog will explain the process that often follows when someone is suspected of money laundering, what to expect, and what you can do to protect yourself if you're facing this type of accusation.

What is Money Laundering?

Money laundering is the process of disguising illegally acquired funds, often referred to as "dirty money," to make them appear legitimate, or "clean." This crime commonly involves various methods to disguise the funds, such as:

• Structuring: Breaking up large sums of money into smaller transactions to evade financial reporting requirements.


• Shell Companies: Setting up fictitious businesses to channel and disguise illegal funds.


• Trade-Based Laundering: Using trade transactions, such as over-invoicing or under-invoicing, to obscure the origins of funds.


• Offshore Banking: Moving funds to accounts in foreign jurisdictions to avoid detection and reporting.

The government employs complex investigative techniques to detect money laundering, and under U.S. law. Bank authorities are required to report any suspicious financial activity that could indicate an attempt to launder money to law enforcement agencies. If you are suspected of money laundering, you could be facing charges at either the state or federal level, both of which carry severe penalties.

What Triggers a Money Laundering Investigation?

Several red flags can trigger a money laundering investigation, often starting with reports of unusual financial activity. Common triggers include:

1. Large Cash Transactions: Banks are required to report large cash transactions over $10,000. Repeated cash deposits just under this threshold can also raise suspicion.


2. Multiple Accounts: Transferring funds between numerous accounts, especially when it involves moving money offshore, can be flagged as suspicious.


3. High-Value Transactions Without Apparent Source of Income: If you receive or transfer significant sums of money without an evident source of income, authorities may suspect that the funds have illicit origins.


4. Structuring or Smurfing: When someone makes multiple small deposits instead of one large one to evade reporting thresholds, this is called structuring or smurfing, a common tactic in money laundering.

Suspicious activity reports (SARs) filed by banks, reports of large cash purchases, or inconsistent financial activity can all prompt an investigation. If authorities suspect money laundering, they may take immediate steps to seize assets and monitor transactions to gather evidence against the individual. If you become aware that you are under investigation for money laundering call us immediately at DMT for guidance on how to proceed in order to protect your interests.

Initial Steps if You Are Suspected of Money Laundering

If you are suspected of money laundering, authorities will likely initiate an investigation that can include various steps:

1. Financial Transaction Monitoring: Law enforcement agencies might scrutinize your bank accounts, credit card transactions, or other financial activity to detect suspicious patterns.


2. Subpoenas and Requests for Records: Investigators may request access to financial records, tax filings, emails, and other documents. This might also include requests from associated businesses and individuals.


3. Interviews and Surveillance: Agents might conduct interviews or place you or your associates under surveillance, sometimes even using undercover operatives to gather evidence.


4. Asset Freezing or Seizure: In some cases, authorities can freeze your assets or seize property they believe is tied to money laundering. This could include funds in bank accounts, real estate, or luxury items, all of which can be forfeited if linked to illegal activity.


5. Formal Charges: If authorities gather enough evidence, they may formally charge you with money laundering, which typically involves additional charges if related criminal activity is suspected, such as fraud or drug trafficking.

Understanding these steps can help you anticipate what might happen and make it easier to navigate the complexities of a money laundering investigation.

Consequences of Money Laundering Charges

If formally charged with money laundering, the potential penalties are serious. Federal law outlines penalties for those convicted of money laundering, which can include:

• Prison Sentence: Under federal law, money laundering carries a maximum sentence of 20 years per count.


• Fines: Penalties for money laundering can include fines of up to $500,000 or twice the amount of the property involved in the transaction, whichever is greater.


• Asset Forfeiture: Authorities may seize any assets believed to be tied to the criminal activity, including bank accounts, real estate, vehicles, and other property.

In addition to the immediate penalties, a conviction can have lasting consequences on your life and career. A money laundering charge, especially one that results in a conviction, can impact your ability to secure employment, obtain financial services, or hold professional licenses.

Defenses Against Money Laundering Accusations

The complexity of money laundering cases means that multiple defenses could apply, depending on the specifics of your situation. Some common defenses include:

1. Lack of Knowledge: If you were unaware that the funds were acquired through illegal means, your attorney may argue that you lacked the intent necessary for a money laundering conviction.


2. No Intent to Conceal: Money laundering involves the deliberate act of concealing or disguising the origins of illegally obtained money. If you can demonstrate that there was no intent to conceal, you may have a strong defense.



3. Insufficient Evidence: Money laundering cases often rely on circumstantial evidence, which can be challenged in court. An experienced attorney can question the quality and credibility of the evidence.


4. Entrapment: If law enforcement agents pressured or coerced you into laundering money, this could serve as a defense.

It's essential to work with an experienced criminal defense attorney who understands the nuances of money laundering laws and can craft a defense tailored to the specifics of your case.

What to Do If You're Under Investigation

If you are under investigation for money laundering, taking proactive steps is crucial. Here are some actions you can consider:

• Do Not Talk to Investigators Without an Attorney: Anything you say to investigators can be used against you. It's critical to consult with an attorney before answering any questions.


• Secure Legal Representation Immediately: Money laundering cases are complex and often involve multiple agencies. Having experienced legal representation early on can help protect your rights and mitigate potential consequences.


• Document Everything: Keep detailed records of your financial transactions and any communications related to your business. This documentation can be helpful if you need to demonstrate the legitimate origin of your funds.


• Avoid Large Financial Transactions: Any suspicious financial activity could worsen your situation, so it's best to avoid large or unusual transactions until you have consulted with your attorney.


• Cooperate, But With Caution: While it may be tempting to cooperate with investigators fully, consult your attorney to determine the best approach. Cooperation can sometimes help, but can also be used as evidence against you. Get advice for from your defense attorney before you proceed in this manner.

How Donet, McMillan & Trontz, P.A. Can Help

If you are suspected of money laundering, having a knowledgeable attorney by your side can make all the difference. At Donet, McMillan & Trontz, P.A., we have extensive experience in defending clients facing complex financial crime charges, including money laundering. Our team understands the nuances of federal and state laws and can provide you with a defense strategy tailored to your unique situation.

From scrutinizing the evidence and challenging procedural missteps to negotiating with prosecutors, we are dedicated to safeguarding your rights and achieving the best possible outcome. Money laundering cases are multifaceted and often involve intense scrutiny from multiple agencies. Don't face this challenging time alone; let our experienced team guide you.

Contact Us for a Confidential Consultation

If you or someone you know is under suspicion or investigation for money laundering, contact Donet, McMillan & Trontz, P.A. at (305) 444-0030 for a confidential consultation. Our skilled attorneys are ready to provide the legal support you need and help you navigate the complexities of your case.