Money Laundering Penalty in Arizona

Accusations of money laundering can put all your hard work at risk. The Law Office of Trevor Hill is committed to providing strong criminal defense for those facing money laundering charges. 

In this blog post, we discuss money laundering charges, understanding Arizona law, and how an experienced criminal defense attorney can help protect your future and your freedom.

Definition of Money Laundering 

The term “money laundering” refers to the process of attempting to make money obtained through illicit or criminal means appear legitimate. By definition, it is when a person gains money from a criminal act and then covers up the receipt of these resources by making them seem as though they have been obtained legally.

Money laundering involves several steps where the money launderer obtains money illegally. This money is then put in a financial scheme of some kind to conceal the criminal act, and afterwards, the money returns to the launderer. The most common way this is done is by creating a fake company with bank accounts linked to it for the purpose of depositing and withdrawing money. 

Money Laundering Under Arizona Law

Arizona money laundering law under ARS § 13-2317 states that it is a felony, defined as the transfer or concealment of money from criminal activities to conceal the illicit source of the funds. 

A person may face money laundering charges if they intentionally or knowingly conduct transactions of illegally obtained funds, conceal the receipt of these funds, hide the nature of racketeering proceeds, make intentionally false statements on financial records, fail to uphold proper reporting requirements, or use false personal identifying information. 

It should be noted that there are federal money laundering laws that also apply, as per the Money Laundering Control Act of 1986. With federal money laundering, investigations are conducted by the FBI, the Department of Justice, or the IRS. When someone is convicted of money laundering on the federal level, they will typically face both state and federal charges. 

Types of Activities Considered as AZ Money Laundering

One of the most common ways that money laundering is conducted is by creating a fake business, known as a shell company. This money-transmitting business makes it more difficult to trace the source of illegally obtained money. 

Money laundering can be conducted by structuring, which involves breaking down large sums of ill-gotten cash into smaller amounts and then transferring the money into multiple accounts, often at different banks. This helps avoid the mandatory reporting requirements of financial institutions. 

Not all money laundering schemes involve fake businesses. Some utilize legitimate businesses that make good money, such as a popular restaurant or casino, and hide the illicit money by mixing it with normal business revenue. Others send it to a tax haven country and secretly transfer it to a different account, obscuring the money’s source. 

You can also get into trouble for money laundering in Arizona if you fail to disclose the required information, intentionally or knowingly circumventing the reporting duties of banks. 

Penalties for Money Laundering in Arizona

As per the Money Laundering Control Act of 1986, section 18 U.S. Code § 1956 states that any person who commits money laundering can receive a fine of up to $500,000, or twice the value of the laundered funds, and may also spend up to 20 years in prison. The second section, 18 U.S. Code § 1957, states that if this crime resulted in more than $10,000, the punishment may be a fine, prison time of up to 10 years, or a combination of these two punishments. 

Arizona law defines first-degree money laundering, second-degree money laundering, and third-degree money laundering penalties. 

First-Degree Money Laundering

First-degree money laundering is charged if someone intentionally or knowingly initiates, organizes, or directs the entire scheme. It is a class two felony and first offenders can be punished upon conviction with 12.5 years in prison. As this is the most serious charge for money laundering, it has the harshest punishments and is usually inflicted upon the person leading the illegal operation. Facilitating terrorism or murder will also mean that this first-degree felony charge applies. 

Money Laundering in the Second Degree

Second-degree money laundering is usually charged to a person if they maintain some type of interest in the operations, make property available, provide false information to the government, or transmit money. This charge of second-degree money laundering is a class three felony, and a first-time offender will receive a prison sentence of almost 9 years for the offense if convicted.

In Arizona, second-degree money laundering is most common as it encompasses many aspects of obtaining money through illegal means and concealment with the purpose of making it appear legitimate. 

Third-Degree Money Laundering

If someone is accused of money laundering in the third degree, they may have helped transmit money for this scheme. Intentionally or knowingly influencing someone or to cooperate with a person to avoid reporting monetary transactions makes this a class six felony charge. The punishment is up to 2 years in prison. 

The Legal Process for Defending Against Money Laundering Charges AZ

If you are accused of being involved in a money transmitting business, obtaining racketeering proceeds, or defrauding a financial institution, the legal process will involve both state and federal courts. It is essential to hire a defense attorney if you are charged with money laundering as it is a serious crime. 

Your attorney will look over the evidence to find procedural errors and see if an illegal search and seizure took place. Entrapment and violation of legal rights may also be a factor, though the key is in providing reasonable doubt that someone intentionally conducted these actions, which can prevent conviction. 

Understanding the Possible Defenses and Legal Strategies

If you are accused of violating state or federal regulations and charged with money laundering, your attorney may try a few tactics. In order for authorities to make a report that you were laundering money, they must prove that you knew these were illegal funds. If you did not know that this money came from unlawful activities or you did not have the intent required by the definition of the law, they can’t convict you of laundering money.

There may also be a lack of evidence, or some people might be coerced to participate in the scheme, as often seen in situations involving drug trafficking. In short, there are many different legal strategies that can help you avoid the worst punishments. 

The Importance of Experienced Criminal Defense in Money Laundering Cases

It takes an understanding of Arizona statutes, federal laws, and knowing the nuances of what constitutes money laundering. When you are facing such severe charges, your future and your freedom are in danger. While money laundering is a white collar crime, a conviction could put you in prison for a long time, cause you to sink into debt, and affect your reputation in the community. As such, you should never leave it to chance and should contact our law firm for representation. 

How the Law Office of Trevor Hill Can Assist in Your Defense

The Law Office of Trevor Hill provides a free consultation where you can discuss your situation with complete confidentiality. Contact us today to find out more about the defense and strategy that may work best in your case.