Understanding Arizona Money Laundering: ARS 13-2317
Facing money laundering charges in Arizona can be overwhelming. The legal system can feel complex and intimidating. Lawyer Listed provides clear information on the specifics of the charge and the potential penalties, helping you navigate each step of the process.
This guide provides an in-depth examination of the Arizona money laundering statute, offering detailed explanations of key legal terminology, sentencing frameworks, and the broader implications of the charges.
Remember, this information is for educational purposes only and is not a substitute for legal advice from an experienced Arizona white collar crimes attorney. If you are charged with ARS money laundering, let Lawyer Listed match you with your ideal white collar crimes lawyer as soon as possible.
What Is Money Laundering in Arizona?
Money laundering is the process of concealing the true source of illegally obtained money. The purpose is to make “dirty” money appear “clean,” so it can be used without drawing attention from law enforcement or financial institutions.
Think of it this way: if someone profits from crimes such as drug trafficking or fraud, they cannot simply walk into a bank and deposit large sums of cash without raising suspicion. Instead, they use money laundering to hide where the money came from. This makes the money look legitimate and lets it enter the regular financial system, where it can be spent or invested without detection.
Key Concepts of Money Laundering
General Terms
- Intentionally / With intent to: Acting with the objective of causing a specific result or engaging in particular conduct. In plain terms, you meant to do it.
- Knowingly: You are aware of your actions or the circumstances that make up the offense. It does not require that you know your conduct is illegal; you just need to be conscious of what you are doing or the situation you are in.
Money Laundering Terms
- Transaction: A purchase, sale, trade, loan, pledge, investment, gift, transfer, transmission, delivery, deposit, withdrawal, payment, transfer between accounts, exchange of currency, extension of credit, purchase or sale of any financial instrument or any other acquisition or disposition of property by whatever means.
- Transmitting money: The transmission of money by any means, including transmissions within this country or to or from locations abroad by payment instrument, wire, fax, internet or any other electronic transfer, courier or otherwise.
- Money transmitter: A person or business that qualifies as a bank, financial agency, or financial institution under federal law. This generally means anyone who moves money, issues payment instruments, or handles funds for others.
- Forged Instrument: A written instrument that has been falsely made, completed or altered.
- Racketeering: Any act, whether preparatory or completed, that involves terrorism or is committed for financial gain through crimes such as homicide, robbery, kidnapping, theft, fraud, bribery, drug trafficking, weapons trafficking, human trafficking, or other organized criminal activity.
The Three Degrees of Arizona Money Laundering
Under Arizona law, money laundering is classified into three degrees. The level of the charge depends on the specific conduct, whether you were directing the scheme or just participating, and whether it was tied to other serious crimes.
First-Degree Money Laundering:
First-degree money laundering is the most serious form of money laundering under Arizona law. You can be charged with this offense if you knowingly:
- Initiate, organize, or plan a money laundering operation
- Finance a money laundering scheme
- Direct, manage, or supervise money laundering activities
- Engage in the business of money laundering
In short, first-degree charges target the people “running the show”— the organizers, planners, and managers who design the system, make the key decisions, and oversee how illegal money is disguised.
This charge also applies in especially grave circumstances. If conduct that would normally qualify as second-degree money laundering is carried out in the course of or for the purpose of facilitating terrorism or murder, it is elevated to first-degree money laundering.
Second-Degree Money Laundering:
There are several ways you can be charged with second-degree money laundering. These include:
Acquiring or Maintaining an Interest in Illegal Proceeds
Acquiring or maintaining an interest in illegal proceeds involves obtaining or keeping control of money or property that came from racketeering activities. You must have known, or had reasonable grounds to suspect, that the money came from illegal sources. For example, if you knowingly bought a business using money from drug trafficking proceeds.
Facilitating Racketeering Operations
Facilitating racketeering operations involves providing money, property, or other resources to another person with the knowledge that they will be used to support or carry out racketeering activities. Your actions must be aimed at assisting the operation of criminal enterprises. For example, if you knowingly lease a warehouse to someone for the purpose of storing illegal goods, you could be charged with facilitating racketeering.
Concealing or Disguising the Source of Illegal Money
Concealing or disguising illegal money involves conducting a financial transaction with the knowledge that the funds are the proceeds of a crime and doing so with the intent to hide or misrepresent their origin, location, ownership, or control. Common methods include transferring money through multiple bank accounts, routing it through shell companies, or commingling unlawful proceeds with legitimate business income.
Making False Statements or Misrepresentations
Making false statements or misrepresentations involves knowingly providing false or misleading information in official documents, financial records, or applications connected to money laundering. This provision applies when a person intentionally conceals the truth or fabricates details to disguise the source or nature of illicit funds. Examples include falsifying loan applications to hide the origin of money or submitting inaccurate information to banks about business operations.
Evading Reporting Requirements
Evading reporting requirements involves deliberate attempts to avoid the financial reporting obligations imposed on banks and other institutions. This often involves breaking up large cash transactions into smaller amounts to stay below the thresholds that trigger mandatory reports to the government—a tactic commonly known as “structuring.”
Falsifying Identities
Falsifying identities involves intentionally misrepresenting or concealing the true identity of a person in connection with a money laundering transaction. This includes actions such as using false identification documents, creating fictitious business owners, or obscuring the actual beneficiaries of financial dealings. The key is to hide who is really behind the transaction to conceal the source or control of illegal funds.
Using Forged Instruments
Using forged instruments involves employing false or altered documents in connection with a money laundering scheme. Examples include creating fake invoices or receipts for goods or services that never existed, submitting falsified loan applications to disguise criminal proceeds as legitimate funds, or using counterfeit checks and contracts to move illegal money through financial institutions.
Third-Degree Money Laundering:
Third-degree money laundering involves bribing a money transmitter or being bribed as a money transmitter.
Bribing a Money Transmitter
This charge involves intentionally offering anything of value to a money transmitter business or its employee to get them to ignore legal requirements. An example is paying extra money to a Western Union employee to process your transaction without filing the required reports.
Receiving a Bribe as a Money Transmitter
Receiving a bribe as a money transmitter involves accepting money, gifts, or anything of value in exchange for disregarding or violating legal reporting and compliance requirements. This provision emphasizes that employees of financial institutions who compromise their duties play a direct role in facilitating money laundering. An example is a bank employee agreeing to ignore suspicious transactions or process transfers without filing the required reports in exchange for payment.
Arizona Statute of Limitations for Money Laundering
The statute of limitations is the deadline for prosecutors to file criminal charges after an alleged offense. As a felony offense, prosecutors have up to seven years from the date of the alleged offense to bring money laundering charges.
Sentencing for Money Laundering
The penalties for money laundering in Arizona are substantial and can have long-lasting effects. Sentences vary based on your criminal history and the circumstances surrounding the crime. Understanding these consequences helps you make informed decisions about your defense.
The following table provides an overview of the potential sentence for each degree of money laundering:
| Offense | Charge | Prison | Probation (max) |
|---|---|---|---|
| Money laundering: 1st degree | Class 2 felony | 3 – 12.5 years | 7 years |
| Money laundering: 2nd degree | Class 3 felony | 2 – 8.75 years | 5 years |
| Money laundering: 3rd degree | Class 6 felony | 4 months – 2 years | 3 years |
Frequently Asked Questions (FAQs)
Don’t worry if this seems overwhelming; Lawyer Listed has already done the work for you and is ready to match you with an elite lawyer tailored to your needs and your case.
Key Takeaways:
- Definition: Arizona’s money laundering statute, found at ARS 13-2317, defines money laundering as the act of disguising or concealing the origins of illegally obtained money. The goal of money laundering is to make “dirty” money from crimes appear to be “clean” and legitimate. Laundering the money allows criminals to use it without detection. These laws apply to a wide range of activities, from simple concealment to running sophisticated criminal enterprises.
- Money Laundering charges: Arizona law categorizes money laundering Arizona offenses into three distinct degrees:
- First-degree money laundering is the most serious. It applies to people who organize, plan, finance, manage, or run money laundering operations. It also applies when money laundering supports terrorism or murder.
- Second-degree money laundering covers most money laundering activities, including hiding the source of illegal money, facilitating racketeering, making false statements, evading reporting requirements, and using forged documents.
- Third-degree money laundering is the least serious and specifically addresses bribing or being bribed as a money transmitter.
- Sentencing:
- First-degree money laundering is classified as a Class 2 felony with a potential prison sentence ranging from 3 to 12.5 years and/or up to 7 years of probation.
- Second-degree money laundering is classified as a Class 3 felony with a potential prison sentence ranging from 2 to 8.75 years and/or up to 5 years of probation.
- Third-degree money laundering is classified as a Class 6 felony with a potential prison sentence ranging from 4 months to 2 years and/or up to 3 years of probation.
- Statute of limitations: The statute of limitations for money laundering is seven years from the date of the offense.
Next Steps:
Money laundering is a serious criminal allegation with consequences that can affect the rest of your life. Outcomes depend on many factors. Lawyer Listed meets you where you are and helps you understand the law and your rights.
If you’re facing Arizona money laundering charges, engaging a skilled white collar crimes attorney is important to protect your rights and manage the process. Don’t try navigating the legal system alone; match with your ideal lawyer at LawyerListed.com and get an experienced criminal defense attorney on your side right away.