Common Federal Money Laundering Crimes

 Posted on April 22, 2025 in Federal Crimes

Money laundering is a serious federal offense that often accompanies other white-collar crimes such as fraud, drug trafficking, or embezzlement. It involves disguising the origins of money obtained through illegal activity to make it appear legitimate. Because money laundering is seen as a method of supporting organized crime and undermining financial systems, federal prosecutors aggressively pursue these cases.

If you are under investigation for money laundering — or have already been charged — it is essential to understand the nature of the accusations against you and the potential consequences. Our Illinois federal criminal defense attorney at 312-629-0669 is here to help.

What Is Federal Money Laundering?

Federal money laundering laws make it a crime to knowingly engage in financial transactions that involve proceeds from certain illegal activities, also called "specified unlawful activities" (SUAs). These can include drug trafficking, wire fraud, securities fraud, healthcare fraud, bribery, and other offenses.

The key element of money laundering is the intent to conceal or disguise the nature, location, source, ownership, or control of illegally obtained funds. Even if the underlying criminal activity occurred in another country or state, federal law applies if the financial transactions occur within the United States or involve U.S.-regulated banks or financial institutions.

Common Types of Federal Money Laundering Crimes

There are several different types of federal money laundering offenses, each with distinct elements and penalties. Below are some of the most frequently charged:

Transactional Money Laundering 

This statute prohibits financial transactions involving the proceeds of illegal activity when the purpose is to conceal the source or promote criminal conduct. For example, using drug money to purchase property or transfer funds to offshore accounts to hide ownership may fall under this category.

To convict someone under this section, prosecutors must prove that the person knew the funds were from illegal activity and that the transaction was intended to conceal or further the crime.

International Money Laundering 

International money laundering involves the transfer of funds to or from a foreign country with the intent to conceal criminal proceeds or avoid reporting requirements. These cases often involve complex transactions, shell companies, and offshore accounts.

The federal government views these offenses as particularly serious due to the risk of facilitating terrorism, tax evasion, or transnational crime.

Money Laundering Through Concealment 

This charge applies when someone conducts a financial transaction designed to disguise the nature or source of the proceeds. For instance, depositing funds under someone else’s name or structuring payments through multiple accounts to avoid detection could trigger this charge. The focus here is not just on the illegal origin of the funds but on the deliberate efforts to make the money appear clean.

Structuring or "Smurfing"

While not always labeled as money laundering, structuring is often prosecuted alongside laundering charges. It involves breaking down large sums of money into smaller transactions to avoid triggering federal reporting requirements (typically $10,000 or more). This can apply to cash deposits, wire transfers, or even purchases made to avoid scrutiny. Even if the money involved is legally obtained, structuring can still result in federal charges if it seems there was intent to evade the law.

Contact a Chicago, IL Federal Criminal Defense Lawyer for a Free Consultation

Money laundering charges are complex and often based on financial records, surveillance, and circumstantial evidence. If you are facing accusations, do not wait to get legal help. The earlier a skilled attorney can intervene, the better your chances of building a strong defense.

Contact a Chicago, IL federal criminal defense attorney at Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney today to schedule a free consultation. Call 312-629-0669 to discuss your case confidentially and learn how we can help protect your rights, reputation, and future.