Money laundering charges are serious criminal allegations that involve disguising the origins of illegally obtained money. In Maryland, as in federal law, prosecutors aggressively pursue these offenses due to their connection with other crimes like drug trafficking, fraud, and organized crime. If you’re facing money laundering charges—or simply want to understand how the law works—this blog will break down what the crime entails, how it’s prosecuted, and what potential defenses may be available.
What Is Money Laundering?
Money laundering is the process of taking money acquired through criminal means and making it appear as though it came from a legitimate source. This is typically done in three stages:
- Placement – Introducing “dirty money” into the financial system (e.g., depositing cash into a bank account).
- Layering – Concealing the source of the funds through complex transactions (e.g., wire transfers between multiple shell companies).
- Integration – Reintroducing the laundered money into the economy as seemingly legitimate funds (e.g., investing in real estate or businesses).
In Maryland, money laundering is prosecuted under both state and federal statutes. State charges may be filed under Maryland’s criminal code, while federal prosecutors often bring charges under laws like the Bank Secrecy Act (BSA) or 18 U.S.C. § 1956, which criminalizes laundering of monetary instruments.
Examples of Money Laundering
Money laundering doesn’t always involve stacks of cash and offshore accounts. Here are some common examples that can lead to charges:
- A drug dealer funneling proceeds through a fake landscaping business
- A business owner structuring cash deposits to avoid federal reporting requirements (called “smurfing”)
- A corrupt public official using a third party to purchase luxury goods with illicit funds
- A person investing in real estate with money obtained through wire fraud
In Southern Maryland, where federal and state law enforcement agencies often work in joint task forces, even small-scale operations can trigger serious investigations.
Penalties for Money Laundering in Maryland
The consequences of a money laundering conviction can be severe and long-lasting. In Maryland, the penalties depend on the nature of the underlying criminal activity and whether the case is prosecuted under state or federal law.
State Penalties (Maryland Law)
While Maryland does not have a general “money laundering” statute, prosecutors frequently use Maryland Criminal Law § 5-623, which targets financial transactions involving proceeds from drug-related crimes. This statute makes it a felony to knowingly conduct or attempt to conduct a financial transaction involving the proceeds of controlled dangerous substance (CDS) offenses with the intent to:
- Conceal or disguise the source, ownership, or control of the funds; or
- Promote further unlawful drug activity.
Penalties under § 5-623 include:
- Up to 5 years in prison
- A fine of up to $100,000
- Felony conviction on your record
In addition to these penalties, defendants may also face charges related to conspiracy, possession with intent to distribute, or participation in a criminal enterprise, depending on the scope of the alleged conduct.
Federal Penalties
In many cases, especially those involving larger sums of money or multi-jurisdictional operations, money laundering is prosecuted under federal law. The most commonly used statutes are:
- 18 U.S.C. § 1956 – Laundering of monetary instruments
- 18 U.S.C. § 1957 – Engaging in monetary transactions in criminally derived property
Federal penalties may include:
- Up to 20 years in prison
- A fine of up to $500,000 or twice the value of the laundered property, whichever is greater
- Asset forfeiture, including seizure of bank accounts, homes, vehicles, or business assets
- Additional charges for related offenses, such as conspiracy, wire fraud, or tax evasion
Because federal sentencing guidelines often take into account the total amount laundered and whether the offense was part of an ongoing criminal scheme, the exposure can be significantly higher than under state law.dd related charges, such as conspiracy, wire fraud, or tax evasion, significantly increasing exposure.
How Prosecutors Prove Money Laundering
To secure a conviction, prosecutors must prove:
- The defendant conducted or attempted to conduct a financial transaction;
- The property involved came from “specified unlawful activity” (e.g., drug sales, fraud);
- The defendant knew the money was from criminal activity;
- The transaction was done with the intent to promote the unlawful activity, conceal its source, or evade taxes.
Prosecutors may rely on paper trails, financial audits, witness testimony, and digital evidence to make their case.
Defending Against Money Laundering Charges
If you’re charged with money laundering in Maryland, you still have rights—and options. A skilled criminal defense lawyer may pursue one or more of the following defenses:
- Lack of Knowledge – Arguing the defendant didn’t know the money came from illegal activity
- No Predicate Crime – Showing there was no underlying illegal activity to “launder” proceeds from
- Entrapment – If law enforcement induced the defendant to commit an act they otherwise would not have
- Insufficient Evidence – Challenging the government’s proof of intent or financial transactions
Every case is different, and the right strategy depends on the specific facts.
Why You Need a Criminal Defense Attorney
Money laundering charges are often part of larger investigations, and the government brings substantial resources to the table. If you’re facing these charges in Charles, Prince George’s, Calvert, or St. Mary’s Counties, you need an experienced criminal defense lawyer who understands both state and federal law.
At Southern Maryland Criminal Defense, we’ve helped clients fight back against complex financial crimes. Our approach is aggressive, strategic, and always focused on protecting your rights and future.
Accused of Money Laundering in Maryland? Get Legal Help Today.
If you’ve been charged with money laundering or are under investigation, time is critical. Call Southern Maryland Criminal Defense today for a confidential consultation with a skilled criminal defense attorney. We serve clients throughout Southern Maryland—including Prince George’s, Charles, Calvert, and St. Mary’s Counties—and we’re ready to stand by your side.
