Subsection (d) Circumstances

The Holding

18 U.S.C. § 1957 prohibits engaging in monetary transactions involving criminally derived property that exceeds $10,000 and is derived from specified unlawful activity.

Procedural History

Not applicable, as this is a statutory excerpt and not a case.

Statutory Text

Whoever, in any of the circumstances set forth in subsection (d), knowingly engages or attempts to engage in a monetary transaction in criminally derived property of a value greater than $10,000 and is derived from specified unlawful activity, shall be punished as provided in subsection (b).

Reasoning

The statute sets out the elements required to prove a violation of its prohibitions: engaging in a monetary transaction, the property being criminally derived and valued at over $10,000, and the property being proceeds from specified unlawful activity. The defendant must also know the property is criminally derived. The penalties for violating this statute are outlined in subsection (b).

Practical Significance

This statute plays a key role in the federal government's efforts to combat money laundering and the proceeds of criminal activity. For practitioners defending clients accused of financial crimes, a detailed understanding of the elements and potential penalties under §1957 is crucial. Attorneys should be aware that the government is not required to prove the defendant knew the underlying offense was specified unlawful activity, making this a strict liability crime in that regard.

Not applicable, as this is a statutory excerpt and not a case. The statutory text outlines five circumstances where a monetary transaction involving criminally derived property over $10,000 from specified unlawful activity could violate §1957. These include transactions through financial institutions, monetary transactions in and affecting interstate commerce, the purchase, sale, or exchange of real property, vehicles, or vessels, and the use of a counterfeiting activity.

Subsection (b) Penalties

Section 1957 violations are punished by fines and/or imprisonment. The specific penalties depend on whether the transaction involved a pre-retail medical product. If so, the penalty is the same as under the separate prohibitions on trafficking in such products, unless the penalty under this section is greater. Otherwise, the penalty is a fine and/or up to 10 years' imprisonment. The court may also impose an alternate fine of up to twice the amount of criminally derived property involved.