California Money Laundering Laws

The Types of Money Laundering Crimes in California

California Money Laundering Laws

The state of California has two different types of money laundering crimes on its books. Both crimes specifically target people who have actual knowledge that the cash came from an illegal source or was going to be used to promote criminal activity.

Prosecutors can have difficulty proving what someone knew, so both money laundering statutes place high burdens on law enforcement to collect evidence that proves this element of the offense. It should be noted that the federal government has separate money laundering laws, and federal laws may criminalize activity that would not be criminal under California’s statutes.

General Money Laundering in California

For a prosecutor to prove that you committed money laundering, they must prove that you either made or tried to complete a qualifying transaction using a bank. To be guilty, you must have either specifically intended to use the money for illegal conduct or had actual knowledge that the funds stemmed from criminal activity

The amount of money involved must be greater than either:

  • $5,000 over a seven-day timeframe
  • $25,000 over a thirty-day timeframe

For example, if you deposit $3,000 cash from a drug deal on Tuesday, then deposit another $2,001 from a different drug deal on Friday, you have exceeded the amount necessary for criminal money laundering.

Any interaction with a bank can form the basis of a money laundering charge, whether it was a deposit or withdrawal or you wrote a check or used an ATM.

Health and Safety Code Money Laundering

The California Health and Safety Code also criminalizes money laundering that involves funds from controlled-substance-related criminal activities. While the general statute criminalizes cash from any illegal activity, Health and Safety Code violations must stem directly from drugs.

To be convicted of this offense, a prosecutor must prove all of the following:

  • You used or transferred cash or goods that you knew came from a drug crime.
  • The way you used the money was intended to hide the fact money came from a drug crime.
  • The money or goods laundered exceeded $25,000 within a 30-day period.

Money Laundering Can Be Charged as a Misdemeanor or a Felony

Both forms of money laundering crimes are known as “wobblers” in California, meaning a prosecutor can charge you with either a misdemeanor or a felony. What level you are charged with will depend on your personal criminal history and the specific circumstances around the alleged crime.

If you are charged with misdemeanor money laundering, the maximum punishment you can receive is a year in county jail and a fine of up to $1,000.

A charge of felony money laundering has much more severe penalties than a misdemeanor charge. The punishments may include:

  • Between 16 months and 4 years in state prison
  • A fine of up to the greater of $250,000 or twice the amount of money you allegedly laundered

Because a prosecutor must prove what you either knew or specifically intended to do to earn a conviction, a skilled criminal defense attorney can help either have your charges reduced or dismissed. Knowledge of the source of funds is difficult to prove, and your attorney can identify the best strategies available for your defense.

If law enforcement is investigating you for alleged money laundering in Yorba Linda, California, The Chambers Law Firm can provide you with the support you need. Contact us at 714-760-4088 or dchambers@clfca.com to discuss your case with a member of our experienced criminal defense team.

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