How federal money laundering charges are built under 18 U.S.C. § 1956.
Federal money laundering prosecutions target financial transactions alleged to involve criminal proceeds. The government must trace the money and prove knowledge — gaps in either element create defense opportunities.
18 U.S.C. § 1956 DefenseThe government must trace the money and prove knowledge — gaps in either element create defense opportunities.
02Structuring DefenseBreaking deposits below $10,000 is only illegal if done to evade reporting requirements.
03Asset ForfeitureCivil forfeiture proceeds against the property itself; criminal forfeiture follows a conviction.
04Trade-Based Money LaunderingUnderstanding money laundering defense in the digital and trade-based economy.
Money Laundering Defense
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The record
The statute
Federal money laundering charges under 18 U.S.C. § 1956 carry severe penalties including up to 20 years in federal prison, fines of up to $500,000 or twice the property value involved, and asset forfeiture. Money laundering cases are prosecuted aggressively by U.S. Attorneys' offices, often alongside the underlying criminal charges.
Last reviewed: 2026-07-23 · Money Laundering Defense Desk editorial
Practice Areas
Financial Crime Defense
Defense strategies for money laundering and currency reporting cases. Money laundering investigations often begin with bank reports, CTR filings, or structuring allegations. Early engagement can prevent charges or narrow the scope of the prosecution.
18 U.S.C. § 1956 · The ElementsSpecified Unlawful Activity
Money laundering requires an underlying 'specified unlawful activity' that generated the proceeds. If the predicate crime cannot be proven — or the funds came from a legitimate source — the laundering charge cannot stand.
18 U.S.C. § 1956 · The ElementsKnowledge Of Criminal Origin
The government must prove you knew the funds came from criminal activity. Transactions involving commingled accounts, legitimate business receipts, or funds received without knowledge of their source challenge this element.
18 U.S.C. § 1956 · The ElementsTransaction Versus Spending
Not every financial transaction with alleged proceeds is laundering. Paying ordinary business expenses, legal fees, or personal bills does not automatically satisfy the statutory elements.
Currency ReportingStructuring Defense
Breaking deposits below $10,000 is only illegal if done to evade reporting requirements. Legitimate business practices, customer payment patterns, or fear of bank holds can explain deposit patterns without criminal intent.
Cross-Border TransfersInternational Transfer Defense
Cross-border wire transfers are not inherently suspicious — many businesses and families move money internationally for lawful reasons. The government must prove the specific intent to promote criminal activity or conceal proceeds.
Forensic AccountingSource-Of-Funds Analysis
A forensic accounting review can trace the origin of funds in question. When funds derive from legitimate business operations, inheritances, loans, or asset sales, the money laundering theory collapses.
What to do when under investigation
Remain silent. Call counsel. Act early.
Every case is different. These answers provide a starting point.
Under Investigation
Do not speak with investigators without an attorney present. Exercise your right to remain silent and call a federal defense lawyer immediately. Early representation can make the difference between a dismissed investigation and a federal indictment.
Before Charges Are Filed
A skilled attorney can engage with prosecutors pre-indictment, present exculpatory evidence, challenge search warrants, and in many cases persuade the government to decline prosecution or reduce charges to a civil resolution.
How Counsel Helps
An experienced attorney can evaluate the strength of the case against you, identify legal defenses, negotiate with prosecutors, file pretrial motions to exclude evidence or dismiss charges, and represent you at trial if necessary. Early involvement of counsel often leads to better outcomes.
Reference information, not legal advice.
Coverage
City Pages
Federal money laundering reference by San Diego County city.
Common Questions
Frequently Asked Questions
Every case is different. These answers provide a starting point.
What is money laundering?
Money laundering is conducting or attempting financial transactions designed to conceal the source of proceeds from unlawful activity. It is a federal offense under 18 U.S.C. § 1956.
Read the full answer →What is asset forfeiture?
Asset forfeiture lets the government seize property connected to criminal activity. Civil forfeiture proceeds against the property itself; criminal forfeiture follows a conviction. A defense attorney can challenge the seizure and seek return of the property.
Read the full answer →What are the potential consequences of money laundering?
The consequences depend on the specific circumstances, including the severity of the alleged offense, prior history, and jurisdiction. Penalties may include fines, incarceration, probation, and long-term collateral consequences.
Read the full answer →Money laundering is conducting or attempting financial transactions designed to conceal the source of proceeds from unlawful activity.
It is a federal offense under 18 U.S.C. § 1956.