What exactly is money laundering?

Money laundering is the generic term used to describe the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source.

How long is jail time for money laundering?

The government does not have to prove that the person actually handled the money or did anything specific to assist the money laundering offense. Money laundering is a serious crime under federal law. A violation of 18 U.S.C. §1956 can result in a sentence of up to 20 years in prison.

What is jail time for money laundering?

If prosecuted as a misdemeanor, Money Laundering can be punished by up to a year in jail and court fines. If prosecuted as a felony, a sentence can carry up to three years in prison and a maximum fine of $250,000 or twice the amount of money laundered, whichever is more.

What are the three steps of money laundering?

Money laundering is the process of making illegally-gained proceeds (i.e. “dirty money”) appear legal (i.e. “clean”). Typically, it involves three steps: placement, layering and integration. First, the illegitimate funds are furtively introduced into the legitimate financial system.

What are 3 stages of money laundering?

The three main stages of money laundering are: Placement (illegal funds enter the financial system) Layering (the funds are moved, spread out or disguised) Integration (the funds are reintroduced as legitimate funds).

What are the different types of money laundering?

There are several different types of money laundering, often related to drug trafficking, dirty politics, and terrorist activities. The basic money laundering methods involve black market foreign exchange, offshore banking, business investments in fake or legitimate companies, and smurfing.

How does money laundry work?

Money laundering is the generic term used to describe the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source.