In California, there are two distinct categories of money laundering crimes defined by law. Both specifically target individuals who knowingly use funds sourced from illegal activities or intended for facilitating criminal behavior.

The onus of proving an individual’s awareness about the illegitimate origin or purpose of the money is usually a challenging task for prosecutors. Hence, both money laundering statutes place a considerable burden on law enforcement to gather substantial evidence proving this aspect of the crime. Keep in mind, however, that federal laws regarding money laundering differ and can deem certain activities illegal even when they are not under California’s statutes.

Deciphering General Money Laundering in California

To establish a case of money laundering, the prosecutor must show that a qualifying transaction was made or attempted through a bank, with the accused either intending to use the money for illegal activities or possessing actual knowledge that the money originated from a criminal act.

The money involved in the transaction must exceed either:

• $5,000 within a seven-day period, or
• $25,000 within a thirty-day period

For instance, if $3,000 is deposited from a drug transaction on Tuesday and another $2,001 from a different drug deal on Friday, the total sum breaches the threshold required for a criminal money laundering charge.

Any form of engagement with a bank can form the basis of a money laundering charge, whether it’s a deposit, withdrawal, check writing, or ATM usage.

Health and Safety Code Money Laundering

California’s Health and Safety Code also criminalizes money laundering associated with funds sourced from controlled-substance-related activities. Unlike the general statute that includes money from any illegal activity, violations under the Health and Safety Code must originate directly from drug-related offenses.

To secure a conviction under this code, the prosecution must establish all the following:

• Cash or goods from a drug crime were transferred or utilized by the accused.
• The use of the money was intended to conceal its drug-crime origin.
• The value of the money or goods laundered exceeded $25,000 within a 30-day period.

The Ambiguity of Money Laundering Charges: Misdemeanor or Felony?

Both categories of money laundering are referred to as “wobblers” in California law. This means the prosecutor can charge the accused with either a misdemeanor or a felony based on the individual’s criminal history and the specifics of the alleged crime.

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

However, a felony charge of money laundering carries much more severe penalties, including:

• Between 16 months and 4 years in state prison
• A fine amounting to either $250,000 or double the value of the alleged laundered money, whichever is greater

Given the burden on the prosecution to prove the accused’s knowledge or intention, an experienced criminal defense attorney can often help reduce or dismiss the charges. Demonstrating knowledge about the source of funds is a tough task, and a knowledgeable attorney can pinpoint the most effective strategies for your defense.

If you are being investigated for alleged money laundering in California, Simmons Wagner, LLP is ready to offer the legal support you need. Get in touch with us at (949) 439-5857 or info@simmonswagner.com to discuss your case with our seasoned criminal defense team.