People who illegally make money might try to make that money appear as though it was obtained lawfully. The process of doing this is known as money laundering, and it is unlawful. You can face charges on a state level or a federal one if you are accused of this.
A lot of the evidence that comes into the picture in these cases comes from a questionable paper trail. To plan a defense strategy for charges, you need to understand a few points about money laundering.
Why is money laundering illegal?
This is illegal because it provides a way for criminal entities, such as terrorists and cartels, to support their business. They can use the money to do more damage to the communities where they operate because they will be able to increase criminal activity in these areas.
Money laundering doesn’t only impact local communities. It can affect the nation, as well as other nations. For this reason, stopping it quickly is imperative. Unfortunately, this can lead to innocent parties being accused of this crime.
How does money laundering work?
Money laundering can come in many forms. The common thread is that money is routed through legal means to hide the fact it was obtained through criminal activity. Some might push the illegal cash through their own business and then deposit it into the bank as part of the established company’s profits. Others have to turn to different avenues.
People will route “dirty” money gained from drug sales or other activities through legal avenues, such as hosting a night at a club to retain the profits. Even though the person pays cash for the event costs, the club owner may provide them with a check for the profit. This makes the money seem like it was legally obtained.
Why can’t they deposit the illegal money?
Federal regulations stipulate that transactions over specific amounts must be recorded and reported to federal authorities. This can bring up questions of where the money came from. The deposit receives the attention of the bank and law enforcement, which is something that criminal enterprises don’t want.
A person who is facing a charge for this crime should take the time to review the options they have for a defense in California. One component of this is having to consider the prosecution’s claims against you.