How does a person commit money laundering?

On Behalf of | Oct 12, 2021 | Firm News

Money laundering is one of many white-collar crimes. It involves illegally gaining money through criminal activities while appearing as legitimately obtained. You should know what can happen if you are a Missouri resident and are charged with money laundering.

What is money laundering?

There are many white-collar crimes, but money laundering is one of the most common. A person can commit this offense by obtaining a lot of money through illegal activities. Often, this is possible through criminal activities like drug trafficking. Money obtained through money laundering typically appears as though it came from legitimate means. The term “laundering” refers to the money the person acquires appearing to be earned legitimately.

How does money laundering work?

White-collar crimes like money laundering are usually committed through being part of a criminal enterprise. When people who commit the offense want to go unnoticed so they can continue with their illegal money scheme, they make sure they only deal with small amounts of money when they use it. Smaller amounts don’t usually arouse the same level of suspicion as large amounts of money.

Money laundering can take place in a variety of ways. Often, a person will use a legitimate business to act as a cover for their money laundering activities. Businesses used for the purpose of concealing a financial crime like money laundering are known as “fronts.” However, the crime can also be committed online thanks to the evolution of the Internet and online auctions, gambling websites and other means.

What are the penalties for money laundering?

Money laundering carries serious penalties for a conviction. The crime is classified as a class B felony, which means a person could face a prison sentence ranging from five to 15 years and a fine of $500,000 or double the amount of money illegally gained.

Being accused of money laundering can be terrifying. You need to fight back and clear your good name if you are taken into custody on such charges.