An individual, professional, entrepreneur or organization can be accused of money laundering if they handle and conceal money from a criminal activity and make it appear as if it came from a legitimate source. Some find themselves facing this charge through everyday financial routines.
For instance, a small business owner with a business partner who injects money into the business; an individual who accepts an online job and allows wire transfers to their personal bank account; a professional who accepts cash/a wire retainer from a new client; or an organization that accepts large cash donations.
If you are facing a money laundering charge, federal law requires prosecutors to prove that there was intent. Here is what to know:
Criminal intent must be present
To be convicted of money laundering, prosecutors must prove that you knew the money came from illegal activity and that you acted with the purpose to promote an underlying crime, hide the illegal proceeds or avoid transaction reporting requirements.
In money laundering cases in Michigan, state prosecutors usually try to prove that a financial transaction occurred, that the money came from an underlying crime and that the defendant intended to conceal the source of the funds/avoid reporting laws.
So, simple negligence may make a conviction challenging. For example, a business owner failing to verify the source of funds a partner wants to inject into the business; an individual accepting an employer’s request to use their personal bank account to transact money; a professional accepting payments from unrelated third parties; or an organization not doing background checks on donors.
Lack of intent is one of the defenses used in money laundering cases. However, saying you didn’t know is not enough. Prosecutors always use both direct and circumstantial evidence to establish intent or show willful blindness. Thus, you need to build a strong case to protect yourself.