Three Elements That Must Be Proven in a Money Laundering Case

Blog / Three Elements That Must Be Proven in a Money Laundering Case

Money laundering is the process of transforming criminal funds into legal properties. Money laundering occurs when someone takes money earned by illegal activities and disguises it as money obtained through noncriminal activity. The funds received by illegal activity are referred to as "dirty money" because it is referred to as "laundering." The person needs to make it seem as if the money comes from a legitimate source.


Three Elements That Must Be Proven in a Money Laundering Case

1-The defendant was aware that the money involved was derived from a fraud

One should be aware that they were 'laundering' money came from a criminal action to be named a criminal. Otherwise, you have not done money laundering if you "laundered" money that you did not suspect derived from the commission of a crime. However, keep in mind that the prosecutor's burden of evidence is comparatively low. They need to prove that you were aware that it was obtained unlawfully in some manner – not that you know where it came from. They can prove this with circumstantial proof.

2-A financial activity must have been started or completed by the defendant

A purchasing, donation, transfer, loan, loan, withdrawal, exchange of money, an extension of credit, purchase or sale of a safe-deposit box, the transaction between accounts, or any other form of payment, transfer, or distribution to, by, or through a financial entity is legally classified as a "financial transaction." The prosecutor must show that you were involved in the beginning or end of one of these transfers.

3- The defendant took place in one of the following steps of money laundering 

To accuse anyone of money laundering, the court must show that the suspect did participate in the following three phases of money laundering:

  • Transfer: The suspect must have placed a large amount of money of unlawfully acquired funds in a financial company. Federal law establishes the maximum amount of cash that can be deposited without triggering suspicion of money laundering. If the institution has noted that the consumer owns a cash-rich company such as a restaurant, a cash transfer of more than $10,000 will raise a red flag.
  • Layering: Once the suspected suspicious money has cleared in a financial institution, the suspect may have participated in misleading financial practices to make the income appear to be part of his or her regular business activities. A prosecution can provide evidence in the form of a set of wire transfers to various companies in and out of the country.
  • Implementation: The convict must have taken the money back into the local economy identified as legal fee after numerous transactions had processed purportedly illegal cash.

Need Of Proof

The prosecutor must prove what was done with the money in a money laundering case. They need to link the crime to the people involved and the illegal activity that began it all. The prosecutors must prove that the people who handled the money knew it came from unlawful activities and planned to hide it and make it seem as if it came from a legal source. The prosecutor must show an additional measure and a higher degree of activity. This keeps it lively because the defense has another level of challenge any time a new level is introduced that the government must verify.

To be convicted of money laundering, a person should be the one who carried out the illegal operation from which the funds were obtained. It might appear that if the prosecution cannot prove the individual committed the crime, they cannot be charged for attempting to make money appear legal, although this is rarely the case. An individual would not have to be linked to an illegal crime for the law to apply. The person would not have to be the one who did the unlawful action if they knew the money was clearly illegal.

In other words, anyone who works as a money launderer or accountant for a criminal conspiracy will be charged with both the core crime and money laundering. They could be found guilty of both. Money laundering is often misunderstood as requiring the individual to commit the underlying crime. Another fallacy is that a person cannot be accused of underlying offenses if they are merely engaging in money laundering. That is also not valid since a person may be charged with fraud if they are involved in a chain of criminal activity. Convicted operatives face the same penalty as those who have committed the crime.

Determination of the Penalty for Money Laundering Case

When a defendant is found guilty of money laundering, their sentence would be determined in part by the number of different offenses they committed, the amount of money involved in the deals, and whether or not the defendant has a criminal background. A single first conviction can carry a sentence of up to a year in prison. The criminal could face years in jail if convicted of various crimes. Moreover, a person who is convicted of money laundering has a legal right to a defense against corruption claims, regardless of the seriousness of the charges.



You Might Also Like