	Introduction

Money laundering is commonly understood as the process of cleansing the taint from the proceeds of cr ime. In federal criminal law, however, it is more. In the principal federal criminal money laundering statutes, 18 U.S.C. §§ 1956 and 1957, and to varying degrees in several other federal criminal statutes, money laundering involves the flow of resources to and from several hundred other federal, state, and foreign crimes. 18 U.S.C. § 1956

Section 1956 outlaws four kinds of laundering—promotional, concealment, structuring, and tax evasion—committed or attempted under one or more of three jurisdictional conditions (i.e., laundering involving certain financial transactions, laundering involving international transfers, and stings). Section 1956(a)(2) outlaws the international transportation or transmission (or attempted transportation or transmission) of funds (1) with the intent to promote a predicate offense; (2) knowing that the purpose is to conceal laundering of the funds and knowing that the funds are the proceeds of a predicate offense; or (3) knowing that the purpose is to avoid reporting requirements and knowing that the funds are the proceeds of a predicate offense. Moreover, the RICO predicate offense list encompasses by cross-reference the federal crimes of terrorism cataloged in 18 U.S.C. Any violation of Section 1956 is punishable by imprisonment for not more than 20 years. 18 U.S.C. A. in or affecting U.S. interstate or foreign commerce, or
B. committed by a U.S. national outside the United States. The Travel Act punishes interstate or foreign travel (or use of the facilities of interstate or foreign commerce) conducted with the intent to (1) distribute the proceeds of a more modest list of predicate offenses ("unlawful activity"), or (2) to promote or carry on such offenses when there is an overt act in furtherance of that intent, or (3) to commit some violent act in their furtherance. Property associated with a violation of Section 1952 is not subject to confiscation solely by virtue of that fact, although the property may be confiscated by operation of the laws governing Section 1952 predicate offenses or by operation of RICO or the Section 1956 money laundering provisions. § 5318 – suspicious transaction reports by financial institutions;
-31 U.S.C. Violations are punishable by imprisonment for not more than five years (not more than 10 years if committed in conjunction with another federal offense or if committed as part of a pattern of activity involving $100,000 or more) and a fine of not more than $250,000 (not more than $500,000 for organizations), with the fine maximum doubled if the offense is committed in conjunction with another federal crime or as part of a pattern of activity involving $100,000. Racketeer Influenced and Corrupt Organizations (RICO)

As noted earlier, all RICO predicate offenses are by definition money laundering predicate offenses under Sections 1956 and 1957.
This report provides an overview of the elements of federal criminal money laundering statutes and the sanctions imposed for their violation. The most prominent is 18 U.S.C. § 1956. Section 1956 outlaws four kinds of money laundering—promotional, concealment, structuring, and tax evasion laundering of the proceeds generated by designated federal, state, and foreign underlying crimes (predicate offenses)—committed or attempted under one or more of three jurisdictional conditions (i.e., laundering involving certain financial transactions, laundering involving international transfers, and stings). Its companion, 18 U.S.C. § 1957, prohibits depositing or spending more than $10,000 of the proceeds from a predicate offense. Section 1956 violations are punishable by imprisonment for not more than 20 years. Section 1957 carries a maximum penalty of imprisonment for 10 years. Property involved in either case is subject to confiscation. Misconduct that implicates either offense may implicate other federal criminal statutes as well. Federal racketeer influenced and corrupt organization (RICO) provisions outlaw acquiring or conducting the affairs of an enterprise (whose activities affect interstate or foreign commerce) through the patterned commission of a series of underlying federal or state crimes. RICO violations are also 20-year felonies. The Section 1956 predicate offense list automatically includes every RICO predicate offense, including each "federal crime of terrorism." A second related statute, the Travel Act (18 U.S.C. § 1952), punishes interstate or foreign travel, or the use of interstate or foreign facilities, conducted with the intent to distribute the proceeds of a more modest list of predicate offenses or to promote or carry on such offenses when an overt act is committed in furtherance of that intent. Such misconduct is punishable by imprisonment for not more than five years. Other federal statutes proscribe, with varying sanctions, bulk cash smuggling, layering bank deposits to avoid reporting requirements, failure to comply with federal anti-money laundering provisions, or conducting an unlawful money transmission business.
Section 1956's ban on attempted international transportation of tainted proceeds for the purpose of concealing their ownership, source, nature, or ultimate location is limited to instances where concealment is a purpose rather than an attribute of the transportation (simple smuggling is not proscribed as such), as the Supreme Court explained in Cuellar v. United States v. Cuellar, 553 U.S. 550 (2008). In a second case, the Court held that the "proceeds" of a predicate offense often referred to the profits rather than the gross receipts realized from the offense. United States v. Santos, 553 U.S. 507 (2008). Congress responded by defining "proceeds" for money laundering purposes as the property obtained or retained as a consequence of a predicate offense, including gross receipts. P.L. 111-21, 123 Stat. 1618 (2009) (S. 386) (111th Cong.).
This report is an abridged version of a longer report, CRS Report RL33315, Money Laundering: An Overview of 18 U.S.C. § 1956 and Related Federal Criminal Law, without the footnotes, full citations, or appendixes found in the longer version. Related CRS Reports include CRS Report R44776, Anti-Money Laundering: An Overview for Congress, by [author name scrubbed] and [author name scrubbed], and CRS Legal Sidebar WSLG1127, Anti-Terrorist/Anti-Money Laundering Information-Sharing by Financial Institutions Under FinCEN's Regulations, by [author name scrubbed] (available upon request).