18 U.S.C. § 1957 – Transactions in criminally-derived property

Demystifying 18 U.S.C. § 1957 and Transactions in Criminally-Derived Property

As an attorney, I often get asked about laws related to money laundering and financial crimes. One statute that frequently comes up is 18 U.S.C. § 1957, which prohibits transactions involving criminally derived property. Let’s break down what this law is all about in plain English.

What is 18 U.S.C. § 1957?

In a nutshell, 18 U.S.C. §.

How is this different from money laundering?

Section 1957 is related to money laundering laws like 18 U.S.C. § 1956, but there are some key differences. Money laundering requires that the transaction be specifically designed to conceal the criminal origins of the funds. But under Section 1957, the transaction itself doesn’t need to be concealed – the mere spending of over $10k in dirty money is enough.

What’s the purpose of this law?

When Congress enacted this statute in 1986 as part of the Money Laundering Control Act, the goal was to make it harder for criminals to benefit from illegal profits. It also aims to stop legitimate businesses from being corrupted by shady money.

What does the government have to prove?

For a conviction under Section 1957, the prosecution must establish these key elements beyond a reasonable doubt:

1. The defendant knowingly engaged in a monetary transaction over $10,000.
2. The money used was derived from criminal activity.
3. The defendant knew the money came from an illegal source.
4. The transaction occurred within the U.S. or its territories.

The government doesn’t need to prove the defendant knew the specific crime the money came from – just that they knew it was from illegal activity. Knowledge is often proven through circumstantial evidence.

What are the penalties and defenses?

A violation carries up to 10 years in prison and a fine up to $250,000. The sentence can be much longer if money laundering conspiracy or other charges are involved. Some potential defenses include lack of knowledge, entrapment, or the statute of limitations having expired.

Real World Examples

Here are a few notable cases where these charges have been brought:

• In 2019, actress Lori Loughlin was charged in the college admissions scandal.
• In 2018, Trump’s campaign manager Paul Manafort was indicted for conspiring to launder money.
• In 2014, Texas attorneys were convicted of laundering drug money.

As you can see, Section 1957 is an important tool prosecutors use to crack down on money laundering and criminal profits. Banks also must be diligent in detecting and reporting suspicious financial activity. If you have any other questions about these types of financial crimes, don’t hesitate to ask!