The origin of funds that funnel through a business is an important matter. This is because funds that come from illegal means can’t be legally pushed through a legal business in an effort to conceal where the funds came from. The crime that this falls under is money laundering. It comes with serious penalties if you are convicted.
Laws against money laundering have been around for decades, so they aren’t new. When you are trying to decide how you are going to handle funds coming into your business, you need to take a look at where they came from so that you aren’t unwittingly laundering money.
Originally, money laundering laws were aimed at gangsters who would try to funnel money from their drug activities through other businesses. Over time, these laws have come to cover a host of illegal activities from gambling rings to drug dealers.
Money laundering charges can occur on a state level or a federal one, depending on the circumstances surrounding the activities. One thing that you need to know is that financial institutions are on the front lines in the fight against money laundering. These institutions are required by law to report financial transactions that meet specific requirements. This could alert authorities to criminal activity.
If you are facing money laundering charges, make sure that you are taking them seriously. You need to think about the options that you have for a defense so that you can decide how you are going to move forward. The choices you have will likely depend on the circumstances of your case.
Source: FindLaw, “Money Laundering,” accessed Feb. 22, 2018