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California Penal Code Section 186.10 PC: Money Laundering
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- 1 California Penal Code Section 186.10 PC: Money Laundering
California Penal Code Section 186.10 PC: Money Laundering
Money laundering–it sounds like a complex financial crime that only big-time criminals and corporations are involved in. But even everyday folks can run afoul of money laundering laws. Let’s break down California Penal Code Section 186.10 PC to understand what money laundering is, what the penalties are, and how people get charged.
What is Money Laundering?
Money laundering is the process of taking “dirty” money gained from criminal activity and making it look “clean” so that criminals can use the money without getting caught. It’s called money laundering because the money is laundered just like dirty clothes are laundered to look clean again.
Common examples of money laundering include:
- A drug dealer deposits cash from drug sales into a bank account
- Someone wins money illegally gambling and then reports it as gambling winnings
- A company cooks its books to hide income and avoid taxes
As you can see, money laundering involves hiding where money really came from. Criminals want to conceal the source of illegal funds so they can spend the money without raising suspicion.
California Penal Code 186.10 PC: Money Laundering Elements
California’s money laundering law is Penal Code Section 186.10 PC. Prosecutors must prove these elements to get a conviction:
- The defendant completed a transaction or transactions through a financial institution
- The total amount was more than $5,000 within a 7-day period OR more than $25,000 within a 30-day period
- The defendant intended to promote criminal activity or knew the money came from criminal activity
Let’s break these down in more detail:
Financial Transaction
The first element is that the defendant made a transaction through a financial institution. This includes banks, credit unions, brokerage firms, and other companies that handle financial transactions.
Examples of transactions include:
- Depositing money into a bank account
- Withdrawing money from an account
- Wiring money domestically or internationally
- Purchasing monetary instruments like cashier’s checks or money orders
- Exchanging currency
- Investing money into stocks, bonds, or other securities
$5,000 in 7 Days or $25,000 in 30 Days
The transaction or transactions must total more than $5,000 within a 7-day period or more than $25,000 within a 30-day period. It doesn’t matter if the money comes from one transaction or many transactions.
For example, depositing $3,000 one day and then $3,000 three days later would meet this element, since the total exceeds $5,000 within a single 7-day period.
Intent to Conceal Source
Finally, prosecutors must prove the defendant intended to promote criminal activity or knew the money came from crime. This intent element is key–the defendant has to know the money is dirty and be trying to conceal where it came from.
If the defendant accidentally deposited money from criminal activity but didn’t realize it, they wouldn’t have the required intent for money laundering.
Penalties for California Money Laundering
Money laundering under Penal Code 186.10 PC is a “wobbler,” which means prosecutors can charge it as either a misdemeanor or felony, depending on the circumstances. Potential penalties include:
- Misdemeanor: Up to 1 year in county jail and/or a fine up to $5,000
- Felony: 2, 3, or 4 years in California state prison and/or a fine up to $250,000
Factors that influence whether someone gets a misdemeanor or felony include the amount of money laundered and their criminal history. Laundering larger sums or having a prior record makes a felony more likely.
Legal Defenses to Money Laundering Charges
Fighting money laundering charges involves attacking one or more elements of the crime. Here are some common defenses:
No Criminal Source of Funds
If the money came from a legitimate source, there is no money laundering. For example, if you deposit cash savings from your job, that is not illegal even if the amount exceeds $5,000.
No Knowledge of Criminal Source
Recall that prosecutors must prove you knew the money was from criminal activity. If you unknowingly deposited funds from crime, you would lack the required intent.
Transactions Don’t Reach Minimum Amount
The total transactions must exceed $5,000 in 7 days or $25,000 in 30 days. If your transactions fall below these thresholds, it does not qualify as money laundering.
Entrapment
This defense claims law enforcement tricked or coerced you into committing money laundering. For example, if an undercover officer pressured you into depositing money by making threats, you may have an entrapment defense.
Money laundering often happens alongside other financial crimes, such as:
- Tax Evasion – Not reporting income to avoid paying taxes
- Structuring – Depositing money in small amounts to evade reporting requirements
- Embezzlement – Stealing money from an employer
A skilled criminal defense lawyer can advise you on defending against any charges that may arise in a financial crime case.
Get Legal Help Fighting Money Laundering Charges
Money laundering charges should not be taken lightly given the potential penalties. An experienced California criminal defense attorney can help build the strongest defense to these allegations.
They can evaluate the evidence, advise you on available defenses, and represent you in working toward the most favorable resolution. Don’t leave your fate to chance–get legal help fighting money laundering charges today.