What Is Federal Money Laundering?
Federal money laundering laws, found primarily under 18 U.S.C. §§ 1956 and 1957, criminalize conducting financial transactions with money derived from specified unlawful activity—like drug trafficking, fraud, or public corruption—with the intent to conceal its source, ownership, or control. The government often uses these laws to add leverage in complex white-collar and organized crime cases.
Money laundering charges can apply even if the underlying crime was never prosecuted, as long as prosecutors can tie the funds to illegal activity. This makes hiring a federal money laundering lawyer in Missouri early critical.
Your future is on the line. Call Combs Waterkotte's federal money laundering defense team now at (314) 900-HELP or reach out online for a free, confidential consultation.
Common Federal Money Laundering Charges in Missouri
Following the passage of the Money Laundering Control Act of 1986, money laundering became a federal crime punishable by a substantial prison sentence. Common charges in Missouri include:
- 18 U.S.C. § 1956(a)(1): Engaging in financial transactions with criminal proceeds with intent to conceal or promote unlawful activity.
- 18 U.S.C. § 1956(a)(2): International transportation or transfer of illicit funds to promote or conceal illegal conduct.
- 18 U.S.C. § 1956(h): Conspiracy to commit money laundering (no completed transaction required).
- 18 U.S.C. § 1957: Spending over $10,000 of criminally derived funds through a financial institution.
- Bank Secrecy Act & Related Violations: Failure to file Currency Transaction Reports (CTRs) or Suspicious Activity Reports (SARs).
How Money Laundering Connects to Other Federal Charges in Missouri
Money laundering rarely stands alone. Sure, it can, but federal prosecutors often add it to larger indictments as a way to increase leverage. Some common related charges include:
- Drug Trafficking: Laundering proceeds from the sale of controlled substances is one of the most common scenarios. It can trigger mandatory minimums and enhance penalties.
- Fraud Offenses: Wire fraud, mail fraud, or healthcare fraud cases frequently include laundering counts for moving ill-gotten gains through bank accounts or shell companies.
- Public Corruption: Bribery and kickback schemes often involve allegations of laundering to disguise the source of illicit payments.
- Racketeering (RICO): Money laundering is considered a predicate act under RICO, allowing prosecutors to charge defendants as part of a larger criminal enterprise.
- Tax Evasion: When funds are concealed from the IRS, prosecutors may bring both laundering and tax evasion charges to maximize exposure.
- Terrorism Financing: Moving funds to support designated foreign terrorist organizations can result in money laundering charges under national security statutes.
Because money laundering is so often tied to other federal crimes, an experienced federal defense lawyer in Missouri must address every count in the indictment and build a unified strategy to protect you from cascading penalties.
Penalties for Federal Money Laundering in Missouri
Federal money laundering carries some of the harshest financial crime penalties in the U.S., including:
- Up to 20 years in federal prison for most violations of § 1956.
- Fines of up to $500,000 or twice the value of the transaction, whichever is greater.
- Forfeiture of assets alleged to be involved in the laundering transactions.
- Enhanced penalties if connected to terrorism, drug trafficking, or racketeering activity.
- Lifetime supervised release in certain cases.
Because of the enormous financial and personal stakes, proactive defense is essential. Call Combs Waterkotte right away at (314) 900-HELP or contact us online to discuss the specifics of your case with an expert federal money laundering lawyer in Missouri.
Defenses to Federal Money Laundering Charges
Our Missouri federal defense lawyers craft tailored strategies to dismantle the government’s case. Common defenses include:
- No Intent to Conceal: Demonstrating the transactions were legitimate and not meant to hide illegal proceeds.
- Illegal Search or Seizure: Suppressing evidence obtained through unlawful warrants or surveillance.
- Entrapment or Government Misconduct: Exposing improper sting operations or overreach.
- Lack of Knowledge: Showing you didn’t know the funds were from criminal activity.
- Insufficient Evidence: Challenging the government’s tracing of funds or proving the alleged predicate offense.
What's the Federal Money Laundering Case Process Timeline in Missouri?
Money laundering cases move quickly once federal prosecutors are involved. Understanding the process helps you stay prepared and make informed decisions. Here’s what typically happens:
Step 1: Federal Investigation
Agencies like the FBI, IRS-CI, or Homeland Security conduct financial surveillance, subpoena bank records, and trace transactions, sometimes for months before you know you’re a target.
Step 2: Target Letter or Grand Jury Subpoena
You may receive a letter notifying you that you’re under investigation or be compelled to testify before a grand jury. Contacting a federal defense lawyer immediately is crucial at this stage.
Step 3: Indictment & Arrest
If prosecutors believe they have enough evidence, they’ll seek a federal indictment. You may be arrested or summoned to court for your initial appearance.
Step 4: Arraignment
You’ll be formally charged and enter a plea. Your Missouri federal money laundering attorney can begin challenging pretrial detention and setting the tone for your defense strategy.
Step 5: Discovery & Pretrial Motions
Both sides exchange evidence. Your federal defense team in Missouri can file motions to suppress illegally obtained bank records, exclude improper expert testimony, or dismiss defective counts.
Step 6: Plea Negotiations or Trial Prep
Based on the strength of the evidence, your federal money laundering defense lawyer in Missouri may negotiate a plea deal to reduce charges or prepare aggressively for trial with forensic accounting experts.
Step 7: Trial
Federal prosecutors present their case. We cross-examine witnesses, challenge financial data, and create reasonable doubt about your intent to launder funds.
Step 8: Sentencing
If convicted, sentencing follows federal guidelines, but we advocate for downward departures and alternatives to incarceration when possible.
Step 9: Appeals & Post-Conviction Options
Even after sentencing, you may have options to appeal your conviction or sentence. We explore every path to reduce long-term consequences.
The Combs Waterkotte federal defense team has prepared resources, as well as a comprehensive list of federal crime statues, for clients across Missouri.
Federal Money Laundering FAQ
Do I need to be convicted of the underlying crime to be charged?
No. Prosecutors only need to prove the funds came from a “specified unlawful activity,” even if no one has been convicted of that crime.
Can legitimate business transactions be considered money laundering in Missouri?
Yes—if prosecutors believe the transactions were structured to conceal the source of illicit funds. Proving legitimate business purpose is key to defense.
What federal agencies investigate money laundering?
Investigations often involve the IRS-CI, FBI, DEA, Homeland Security Investigations, and U.S. Attorneys’ Offices.
What if my assets were seized in Missouri?
We can file motions to contest forfeiture and fight to have seized funds and property returned while your case proceeds.
Will I have to go to trial?
Not necessarily. Many cases can be resolved through negotiation, but we prepare for trial from day one to maximize your leverage.
Why Choose Combs Waterkotte for Your Federal Money Laundering Case in Missouri
Not all federal defense lawyers are created equal. Our team's approach to federal money laundering is built on client focus, trial readiness, unmatched resources, and over six decades of combined expertise.
- Client-Centered Representation: We take the time to understand your priorities, answer your questions, and keep you informed at every stage. You are never just another case file—you are our focus.
- Trial-Ready Defense: We prepare every federal money laundering case as though it will go before a judge, giving us leverage to secure better outcomes in negotiations. Prosecutors know which attorneys are prepared to go to trial and which aren’t.
- Extensive Resources: We bring in the right resources, whether it's forensic experts or investigators, to challenge the government’s evidence and expose weaknesses in their case.
- Experience & Expertise: With more than 60 years of combined federal courtroom experience, our federal money laundering attorneys know the judges, prosecutors, and unique procedures in Missouri’s Eastern and Western Districts—and how to use that knowledge to your advantage.
When your future is on the line, you deserve a federal money laundering defense team that is dedicated to fighting for the best possible result.
