Is Money Laundering a Federal Crime in New York?

Money laundering is a federal crime in New York, as it is throughout the United States. It is prosecuted under both federal and state laws, and it involves disguising the origins of illegally obtained money to make it appear as though it came from legitimate sources.

At O’Brien & Eggleston PLLC, our Albany white-collar crime defense lawyers know that understanding money laundering and its legal consequences is critical because it is a serious crime often linked to other illegal activities such as drug trafficking, fraud, or organized crime. Convictions can result in severe penalties, including lengthy prison sentences, hefty fines, and asset forfeiture.

Here, we explain.

What is the Definition of Money Laundering?

Money laundering is the illegal process of concealing the origins of money obtained through criminal activities, typically through complex financial transactions that make the proceeds appear to come from a legitimate source. The primary goal of money laundering is to “clean” illicit funds so they can be used in the legal economy without raising suspicion.

The key elements of money laundering include:

• Placement:Introducing illegal funds into the financial system, often through depositing small amounts into banks, purchasing goods, or converting the money into other assets.
• Layering:Conducting a series of financial transactions to obscure the origin of the money. This can involve transferring money between different accounts, businesses, or countries to create a complex trail that is difficult to trace.
• Integration:Reintroducing the “cleaned” money into the economy to appear legitimate income or assets, such as through investments, real estate purchases, or business operations.

What are the Federal Money Laundering Laws?

Federal statutes governing money laundering include the Money Laundering Control Act of 1986, codified under 18 U.S.C. § 1956 and 18 U.S.C. § 1957. These laws apply across the U.S., including New York, and make it a crime to engage in financial transactions with proceeds derived from certain criminal activities, such as drug trafficking, fraud, or organized crime, intending to conceal the source or ownership of the money.

The U.S. Department of Justice (DOJ) and other federal agencies, such as the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS), often investigate and prosecute federal money laundering cases.

What are the New York State Money Laundering Laws?

In addition to federal laws, New York has its state money laundering statutes under Article 470 of the New York Penal Law. New York’s laws criminalize various levels of money laundering based on the amount of money involved and the underlying criminal activity.

State prosecution in New York may handle smaller-scale or local money laundering activities. However, federal prosecutors may take over if a case involves significant criminal organizations or large transactions.

Contact Our Albany Criminal Defense Attorneys Today

Because money laundering is a serious crime that can be prosecuted at both state and federal levels in New York, defendants should seek legal representation immediately if accused. Contact our Albany County criminal defense lawyers at O’Brien & Eggleston PLLC today by calling (518)-391-2369 or online to ensure your rights are protected. We have a strong track record of producing real results for our clients. Allow us to pursue the best outcome for your case, too.