The Holding
18 U.S.C. § 1956 prohibits financial transactions involving proceeds derived from specified unlawful activities with the intent to promote or conceal those activities or to avoid reporting requirements.
Procedural History
None provided in source - this is a federal statute, not a case.
Statutory Text
Whoever, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity— (A) (i) with the intent to promote the carrying on of specified unlawful activity; or (ii) with intent to engage in conduct constituting a violation of section 7201 or 7206 of the Internal Revenue Code of 1986; or (B) knowing that the transaction is designed in whole or in part— (i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity; or (ii) to avoid a transaction reporting requirement under State or Federal law, shall be sentenced to a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater, or imprisonment for not more than twenty years, or both.
Reasoning
The statutory text lays out the elements of the crime: (1) financial transactions involving proceeds from specified unlawful activities; and (2) intent to promote such activity, avoid penalties, conceal the funds' nature/location/source/control, or avoid reporting requirements. The severity of punishment tracks twice the criminal value of the transaction.
Practical Significance
In Oklahoma federal criminal defense cases involving money laundering, this statute provides the key substantive offense to prove - moving proceeds from specified crimes with unlawful intent. Defenses and sentencing factors would also be critical issues in such cases.
Specified Unlawful Activities
The statutory text specifies that the prohibited transactions must involve proceeds from "specified" unlawful activities. These include bribery, extortion, fraud, kidnapping, murder, robbery, racketeering, drug offenses (as defined in section 924(c) of this title), and prostitution. Source: https://www.law.cornell.edu/uscode/text/18/1956 — Cornell LII
Intent Elements
The statute requires proof that the defendant knew the property involved represented proceeds from some form of unlawful activity, and acted with specific intents - to promote furthering or facilitating specified unlawful activity; to engage in conduct constituting a violation of I.R.C. §§ 7201 or 7206; or to conceal or disguise the nature/location/source/control of the funds or avoid reporting requirements. Source: https://www.law.cornell.edu/uscode/text/18/1956 — Cornell LII
Punishment Provisions
Jurors must find twice the monetary value at stake, or a $500K fine and 20 years' imprisonment if they convict under this statute. The court may impose both fines and custody. Source: https://www.law.cornell.edu/uscode/text/18/1956 — Cornell LII
Specified Unlawful Activities
The statutory text specifies that the prohibited transactions must involve proceeds from "specified" unlawful activities. These include bribery, extortion, fraud, kidnapping, murder, robbery, racketeering, drug offenses (as defined in section 924(c) of this title), and prostitution. Source: https://www.law.cornell.edu/uscode/text/18/1956 — Cornell LII
Intent Elements
The statute requires proof that the defendant knew the property involved represented proceeds from some form of unlawful activity, and acted with specific intents - to promote furthering or facilitating specified unlawful activity; to engage in conduct constituting a violation of I.R.C. §§ 7201 or 7206; or to conceal or disguise the nature/location/source/control of the funds or avoid reporting requirements. Source: https://www.law.cornell.edu/uscode/text/18/1956 — Cornell LII
Punishment Provisions
Jurors must find twice the monetary value at stake, or a $500K fine and 20 years' imprisonment if they convict under this statute. The court may impose both fines and custody. Source: https://www.law.cornell.edu/uscode/text/18/1956 — Cornell LII
Research Note
This digest is general research material, not legal advice.