The federal Sentencing Guidelines are especially severe to defendants convicted of money laundering. Individual defendants face significant jail time, by far above the terms specified for the underlying offenses. Corporate defendants face substantial fines, often in amounts over $1 million.
As with other Guidelines provisions, the provisions for money laundering involve several factors that are used to determine base offense levels and specific offense characteristics.
Base offense levels are quite high, ranging between 17 and 23; a base offense level of 23 requires an incarceration period of between 46 and 57 months.
Specific increases in offense level depend on how much the defendant knew about the source and value of the laundered. If the defendant “knew or believed” that the laundered funds were connected to illicit drug trafficking proceeds, the base offense level is increased by three levels; proceeds of other unlawful activities also result in an increase. Likewise, if the funds are intended to be used for unlawful purposes, an increase may also ensue. If the value of the laundered funds is more than $100,000, the base offense level is also increased. A laundering scheme involving more than $1 million will result in an increase of five levels; a scheme involving over $100 million will cause an increase of thirteen levels.
However, conversely, a decrease in offense level may be available if a defendant can show (1) that he did not know or believe that the funds were proceeds of unlawful activity, or were intended to promote unlawful activity; (2) that he did not act with “reckless disregard of the source of funds”; (3) that the funds were the proceeds of “lawful activity, or were intended to promote unlawful activity”; and (4) that the funds were to be used for a “lawful purpose.”
Sentencing on a conviction for money laundering is in and of itself a complex area, that should only be navigated with the help of competent and experienced counsel. If you have concerns about potential money laundering charges, call our New York money laundering criminal lawyers at (212) 577-6677 to schedule an immediate consultation.
