Title: Federal Money Laundering Statute & Penalty | 18 USC 1956
Headings: 18 USC 1956: Federal Money Laundering Statutes & Penalties
18 USC 1956: Federal Money Laundering Statutes & Penalties
What are the U.S. Federal Laws Against Money Laundering?
Federal Money Laundering Penalties
What is the U.S. Federal Definition of “Specified Unlawful Activity”?
Are there Other U.S. Federal Laws Involving Proceeds of Specified Unlawful Activity?

Content: 18 U.S. Code Section 1956 is the main federal statute that defines, prohibits, and penalizes money laundering. In order to qualify as money laundering, a person must conduct or attempt to conduct a financial transaction with the intent to: Promote the performance of a specified unlawful activity; Engage in tax evasion or fraud under the Internal Revenue Code; Conceal or disguise the proceeds of a specified unlawful activity; or
Avoid financial reporting requirements under U.S. federal or state law. Essentially, Section 1956 prohibits the use of financial transactions to further a criminal act, referred to as specified unlawful activity and defined in the next section. Furthermore, money laundering occurs whenever a person attempts to obscure the source of the funds or avoid reporting requirements. Taken as a whole, Section 1956 makes it illegal to conduct financial transactions with money or property derived from criminal activity. Federal Money Laundering Penalties
In terms of the punishment for money laundering, a conviction typically results in a 20-year prison sentence and a variable fine structure.