Money Laundering

Money Laundering Stages And Penalties

Posted on March 29, 2017

Money laundering is defined as the collective steps that financial gains from criminal acts are transformed into apparently legitimate cash, finances or other assets. Money laundering occurs whenever a person attempts to conceal the source, identity or destination of any amount of money obtained illegally. Money launderers usually establish anonymous companies in select countries and send false import-export invoice overvaluing goods, these allow the transfer of money from one country to another, while the fake invoices verify the origin of the money. If someone you love or you have been charged with money laundering, go to this website to look for solutions and avoid jail time.

Here are the three phases that money launderers use to disguise illegal income:

  1. Placement: The initial step in money laundering is placement, tucking the money into the financial system is indeed called placement. Placement is done in legitimate business, where it will be stirred into the legitimate business income.
  2. Layering: Concealing the source of illegal income, requires creating layers upon layers fo transactions. Burying the illegal finances helps to make money harder to trace and confound any audit trail with a web of complex transactions. Money is moved into and out of shell businesses through wire transfers, money orders, and any other forms of electronic funds transfer.
  3. Integration: At this point where the money is integrated into the legitimate financial system, and it gets lost with the other assets. Integration will be accomplished by making the finances appear to have been legally earned.

What are the penalties for money laundering

Money laundering convictions usually result in prison, fines, and probation or a combination of sentences.

  1. Prison: Money laundering crime is always charged as a felony offense, but in some states, misdemeanor offenses can be possible. A misdemeanor money laundering offense can result in a jail sentence of one year or more, and felony convictions have penalties of a year or more in prison.
  2. Fines: While misdemeanor convictions allow for fines up to a few thousands of dollars. A federal offense due to money laundering can result in fines of up to $500,000 or double the amount of money that has been laundered.
  3. Probation: Probation sentences are possible for money laundering convictions. Courts impose probation sentences that last one year but sometimes from two to three years. During probation you have to meet specific probation conditions such as regularly reporting to a probation officer, allowing the officer to random home checks, taking random drug tests and not committing other crimes.

Money laundering is a type of white-collar crime, similar to embezzlement. Both of them involve deception and a willful activity to hide the perpetrator´s financial gains. Money laundering is a serious crime, but do not worry the only thing you have to do is look for legal assessment to discuss the seriousness of the charges, and a bail bond agent to be able to afford the required money to get out of jail. This video explains more in detail the three stages of money laundering mentioned above.

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