Money Laundering: An Overview of 18 U.S.C. 1956 and Related Federal Criminal Law

^Pr^ep^ar^{ed f}^o^r^M^e^m^b^ers^an^d^Com^mⁱ^t^t^ees^of^C^ong^r^e^ss

This a summary of the elements of federal criminal money laundering statutes and sanctions
imposed for their violation. The most prominent is 18 U.S.C. 1956. Section 1956 outlaws four
kinds of money laundering – promotional, concealment, smurfing, and tax evasion laundering,
associated specified unlawful activities (designated federal, state and foreign underlying or
predicate offenses) – committed or attempted under one or more of three jurisdictional conditions
– i. e., laundering involving certain financial transactions, laundering involving international
transfers, and stings. Its companion, 18 U.S.C. 1957, prohibits depositing or spending more than
$10,000 of the proceeds from a section 1956 predicate offense. Violations of section 1956 are
punishable by imprisonment for not more than 20 years; section 1957 carries a maximum penalty
of imprisonment for 10 years. Property involved in either case is subject to confiscation.
Misconduct which implicates sections 1956 and 1957 may implicated other federal criminal
statutes as well. Federal racketeer influenced and corrupt organization (RICO) provisions outlaw
acquiring or conducting the affairs of an enterprise (whose activities affect interstate or foreign
commerce) through the patterned commission of a series of underlying federal or state crimes.
RICO violations are also 20 year felonies. Every RICO predicate offense, including each “federal
crime of terrorism,” is automatically a section 1956 money laundering predicate offense. The
Travel Act, 18 U.S.C. 1952, punishes interstate or foreign travel or the use of interstate or foreign
facilities conducted with the intent to distribute the proceeds of a more modest list of predicate
offenses or to promote or carry on such offenses when an overt act is committed in furtherance of
that intent. Such misconduct is punishable by imprisonment for not more than five years. Other
federal statutes proscribe, with varying sanctions, bulk cash smuggling, layering bank deposits to
avoid reporting requirements, failure to comply with federal anti-money laundering provisions, or
conducting an unlicensed money transmission business (sometimes known as a hawala).
The Supreme Court has recently held that the proscription in section 1956 against attempted
international transportation of tainted proceeds for the purpose of concealing the ownership,
source, nature of ultimate location is limited to instances where concealment is a purpose rather
than an attribute of the transportation (simple smuggling is not proscribed as such), United States
v. Cuellar, 128 S.Ct. 1994 (2008). In a second case, the Court indicated that for purposes of
section 1956 the “proceeds” of a predicate offense refers to gross receipts rather than profits
realized from the offense, unless the nature of the predicate offense and the penalty it carries
renders such a result “perverse,” United States v. Santos, 128 S.Ct. 2020 (2008).
The text of the statutes discussed, citations of state money laundering and money transmission
statutes, a list of section 1956 federal predicate offenses and there accompanying maximum terms
of imprisonment, and a bibliography are appended. This report appears in abridged form, without
footnotes, full citations, or appendices, as CRS Report RS22401, Money Laundering: An
Abridged Overview of 18 U.S.C. 1956 and Related Federal Criminal Law, by Charles Doyle.

Introduc tion ..................................................................................................................................... 1
18 U.S.C. 1956..........................................................................................................................2
Promotion............................................................................................................................ 3
Concealment .....................................................................................................................10
Evading Reporting Requirements (Smurfing)..................................................................15
Tax Evasion.......................................................................................................................17
Conspiracy, Attempt, Aiding and Abetting.......................................................................18
Consequences ................................................................................................................... .19
Ve nue ................................................................................................................................ 22
18 U.S.C. 1957........................................................................................................................22
Elements............................................................................................................................ 22
Attempt, Conspiracy, Aiding and Abetting.......................................................................25
Consequences ................................................................................................................... .26
18 U.S.C. 1952: Travel Act.....................................................................................................27
Distribution, Facilitation and Violence.............................................................................29
Tr avel ................................................................................................................................ 30
Unlawful Activity.............................................................................................................30
Conspiracy, Aiding and Abetting......................................................................................31
Sancti ons ...................................................................................................................... ..... 31
31 U.S.C. 5322: Reporting Requirements...............................................................................32
31 U.S.C. 5324: Anti-Structuring............................................................................................34
31 U.S.C. 5332: Bulk Cash Smuggling...................................................................................36
18 U.S.C. 1960: Money Transmitters......................................................................................38
Racketeer Influenced and Corrupt Organizations (RICO)......................................................39
Sancti ons ...................................................................................................................... ..... 41
18 U.S.C. 1956. Laundering of monetary instruments.....................................................53
18 U.S.C. 1957. Engaging in monetary transactions in property derived from
specified unlawful activity.............................................................................................59
Travel Act: 18 U.S.C. 1952. Interstate and foreign travel or transportation in aid
of racketeering enterprises.............................................................................................60
31 U.S.C. 5322: Reporting Requirements.........................................................................61
31 U.S.C. 5324. Structuring transactions to evade reporting requirement
prohibited ....................................................................................................................... 61
31 U.S.C. 5332. Bulk cash smuggling..............................................................................62
1960. Prohibition of unlicensed money transmitting businesses......................................63
RICO: 18 U.S.C. 1962. Prohibited activities....................................................................64
18 U.S.C. 1961. Definitions..............................................................................................65
18 U.S.C. 1963. Criminal penalties..................................................................................67
18 U.S.C. 1964. Civil remedies........................................................................................71
Bibliogr aphy .................................................................................................................................. 72
CRS Reports............................................................................................................................72
ALR Fed..................................................................................................................................73
Books, Articles, and Notes......................................................................................................73

Appendix A. Specified Unlawful Activities (Predicate Federal Offenses): (18 U.S.C.
1956, 1957) (Maximum Terms of Imprisonment Noted)...........................................................43
Appendix B. State Money Laundering Laws: Citations................................................................51
Appendix C. State Money Transmission Laws: Citations.............................................................52
Appendix D. Selected Federal Money Laundering Laws: Text.....................................................53
Author Contact Information..........................................................................................................74

Money laundering is commonly understood as the process of cleansing the taint from the ¹
proceeds of crime. In federal criminal law, however, it is more. In the principal federal criminal
money laundering statutes, 18 U.S.C. 1956 and 1957, and to varying degrees in several other
federal criminal statutes, money laundering involves the flow of resources to and from several ²
hundred other federal, state and foreign crimes. It consists of:
- engaging in a financial transaction involving the proceeds of certain crimes in order to conceal ³
the nature, source, or ownership of proceeds they produced;
- engaging in a financial transaction involving the proceeds of certain crimes in order to promote ⁴
further offenses;
- transporting funds generated by certain criminal activities into, out of, or through the United
States in order to promote further criminal activities, or to conceal nature, source, or ownership of ⁵
the criminal proceeds, or to evade reporting requirements;
- engaging in a financial transaction involving criminal proceeds in order to evade taxes on the ⁶
income produced by the illicit activity;
- structuring financial transactions in order to evade reporting requirements;⁷
- spending more than $10,000 of the proceeds of certain criminal activities;⁸
- traveling in interstate or foreign commerce in order to distribute the proceeds of certain criminal ⁹
activities;
- transmitting the proceeds of criminal activity in the course of a money transmitting business;¹⁰

¹^Mo^ne^y^la^unde^ring^is^“^t^he^a^c^t^of^t^r^aⁿ^s^f^e^rring^ille^g^a^ll^y^obtaⁱ^ne^{d m}^oney^throug^h^le^g^itim^a^t^e^pe^rs^ons^or^a^c^c^ounts^s^o^tha^t
ⁱ^t^s^o^rⁱ^gⁱⁿ^al^s^o^u^r^{ce can}^no^t^b^e^t^r^aced^,^”^B^LA^C^K^’^S^L^AW^D^I^C^T^I^ONA^R^Y¹⁰^{27 (}⁸^th^ed^.²⁰⁰⁴⁾^.
²^A^f^e^w^{years an}^d^several^a^m^en^d^m^en^t^s^ago^,^on^{e co}^mm^en^t^a^t^o^{r est}ⁱ^m^a^t^ed^t^h^eⁿ^u^m^b^e^{r o}^f^sectⁱ^oⁿ¹⁹⁵⁶^p^r^edⁱ^cat^{e o}^f^f^eⁿ^s^es
^a^t^“²⁵⁰^{or s}^o^,”^Ca^s^s^e^lla^,^The^F^o^r^f^e^itur^e^{of Pr}^ope^r^t^y^Iⁿ^v^o^lv^e^dⁱⁿ^M^o^ne^y^Lau^nde^rⁱ^{ng O}^f^fe^ns^e^s^{, 7 B}^U^FFA^LO^C^RI^MI^N^A^L
^LA^W^R^E^V^I^EW^583,⁶¹^{2 (}²⁰⁰^3-²⁰⁰⁴⁾^.^T^h^e^e^s^tim^a^t^e^a^ppe^a^r^s^ex^c^e^p^tiona^lly^c^ons^e^r^v^a^tive^.^Ea^c^h^of^the⁵⁰^s^t^a^t^e^s^outla^w^s⁽¹⁾
^m^u^rd^{er, (2}^{) k}ⁱ^dⁿ^a^p^pⁱⁿ^g^{, (3}^{) g}^a^m^b^lin^g^,⁽⁴⁾^arsoⁿ^,⁽⁵^{) r}^o^b^b^ery^,⁽⁶^{) b}^r^ib^ery^,⁽⁷^{) ex}^to^rtioⁿ^,⁽⁸⁾^d^ealin^gⁱⁿ^o^b^s^cen^{e m}^a^terial,
^a^{nd (}⁹⁾^dr^ug^de^a^ling^.^A^f^e^lony^vⁱ^ola^tio^{n of}^aⁿ^y^one^of^the^s^e^is^a^s^e^c^tion¹⁹⁵⁶^pr^e^d^ic^a^t^e^of^f^e^ns^e^,¹⁸^U^.^S.C^.
¹⁹⁵⁶⁽^c⁾⁽⁷⁾⁽^A⁾^,¹⁹⁶¹⁽¹⁾⁽^A⁾^.^Ea^c^h^of^the^c^l^os^e^to²⁰^{0 c}^o^un^tr^ie^s^of^th^e^w^o^r^l^{d out}^la^w^m^aⁿ^yⁱ^f^{not m}^o^s^t^the^s^a^m^e^t^y^pe^s^of
^mⁱ^sc^onduc^{t (}^m^ur^de^r^,^kⁱ^dna^p^p^ing^,^r^o^b^b^e^r^y^a^{nd the}^lik^e⁾^a^{nd w}^h^eⁿ^t^h^ey^{do the}^s^e^to^{o a}^r^e^s^e^c^tion¹⁹⁵⁶^p^r^e^d^ic^a^t^e^of^f^e^ns^e^s
^if^the^y^inv^o^lv^e^a^fⁱ^na^nc^ia^{l tra}ⁿ^sa^c^t^ion^{in t}^h^e^U.S^.,^{18 U.}^S.C^.¹⁹⁵⁶⁽^c⁾⁽⁷⁾⁽^B⁾^.^B^u^{t h}^o^w^e^v^e^r^da^unting^the^a^b^s^o^lute^num^be^r
^o^f^sectⁱ^oⁿ¹⁹⁵⁶^p^r^e^dⁱ^cat^{e o}^f^fen^s^e^s^ma^y^b^e^,^t^h^{e rep}^o^r^t^e^d^{cases su}^gg^est^t^h^at^{a h}^a^nd^f^u^l^o^f^p^r^edⁱ^cat^{e o}^f^f^eⁿ^s^{es (l}ⁱ^k^e^m^aⁱ^l
^f^r^a^{ud, w}ⁱ^r^e^f^r^a^{ud, a}^nd^dr^ug^de^a^lin^g⁾^a^c^c^{ount f}^o^r^the^v^a^s^t^m^a^jorⁱ^t^y^of^s^e^c^tion¹⁹⁵⁶^pr^os^e^c^u^ti^ons^.
³¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(B)(ii).
⁴¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(A^)(i).
⁵¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(2^).
⁶¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(A^)(ii).
⁷¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(B)(ii);³¹^U.S.C.⁵³²⁴^.
⁸¹⁸^U^.^S^.^C^.¹⁹⁵⁷^.
⁹¹⁸^U^.^S.C.¹⁹⁵²^(a)(1^).

- transmitting funds to promote criminal activity in the course of a money transmitting business;¹¹
- smuggling unreported cash across a U.S. border,¹² or
- failing to comply with the Treasury Department’s anti-money laundering provisions.¹³
Money laundering in some forms is severely punished, sometimes more severely than the
underlying crime, such as fraud, with which it is associated. The penalties frequently include not
only long prison terms, but the confiscation of the property laundered, involved in the laundering,
or traceable to the laundering. This is an overview of the elements and other legal attributes and
consequences of a violation of section 1956 and 1957, as well as related federal criminal statutes.
Section 1956 outlaws four kinds of laundering – promotional, concealment, smurfing, and tax
evasion – committed or attempted under one or more of three jurisdictional conditions – i.e.,
laundering involving certain financial transactions, laundering involving international transfers, ¹⁴
and stings. More precisely, section 1956(a)(1) outlaws financial transactions involving the
proceeds of other certain crimes – predicate offenses referred to as “specified unlawful activities”
(sometimes referred to as SUA – committed or attempted: (1) with the intent to promote further
predicate offenses, (2) with the intent to evade taxation, (3) knowing the transaction is designed
to launder the proceeds, or (4) knowing the transaction is designed to avoid anti-laundering
reporting requirements.
Section 1956(a)(2) outlaws the international transportation or transmission (or attempted
transportation or transmission) of funds (1) with the intent to promote a predicate offense, (2)
knowing that the purpose is to conceal laundering of the funds and knowing that the funds are the
proceeds of a predicate offense, or (3) knowing that the purpose is to avoid reporting
requirements and knowing that the funds are the proceeds of a predicate offense.
Section 1956(a)(3) is a sting section that covers undercover investigations. It outlaws financial
transactions (or attempted transactions) that the defendant believes involve the proceeds of a
predicate offense and that are intended to (1) promote a predicate offense, (2) conceal the source
or ownership of the proceeds, or (3) avoid reporting requirements.

^(...c^on^tin^ue^d)
¹⁰¹⁸^U^.^S^.^C^.¹⁹⁶⁰^.
¹¹¹⁸^U^.^S^.^C^.¹⁹⁶⁰^.
¹²³¹^U^.^S^.^C^.⁵³³²^.
¹³^{31 U}^.^S.C^.⁵³²²^{. Fe}^de^r^a^{l la}^w^f^e^a^t^ur^e^s^a^wⁱ^de^a^r^r^a^y^o^f^a^d^mⁱ^nis^t^r^a^tive^,^r^e^g^u^la^tor^y^a^{nd dipl}^om^a^tic^aⁿ^ti-^m^oney
^la^unde^rⁱ^ng^pr^ov^is^ions^t^h^a^t^a^r^e^be^y^ond^the^s^c^o^p^e^of^this^r^e^por^t^.^T^h^e^y^a^r^e^dis^c^us^s^e^{d in}^v^a^rⁱ^ous^a^s^pe^c^t^sⁱⁿ^C^R^S^R^e^p^o^r^t
^R^L³³⁰²^0,^Te^r^r^o^rⁱ^s^t^Fin^ancⁱ^ng:^U^.^{S. A}^g^eⁿ^c^y^Eff^o^r^t^s^aⁿ^d^Iⁿ^te^r^-^Ageⁿ^c^y^C^oor^di^nati^oⁿ^{, by}^Ma^{rtin A}^.^W^e^is^s^e^t^a^l^{. a}^{nd CRS}
^R^e^por^{t R}^S²¹⁵⁴^7,^Fin^ancⁱ^a^{l Inst}^it^utio^{n C}^u^stome^r^Ideⁿ^t^ific^ati^oⁿ^Pro^g^{rams M}^aⁿ^date^d^by^t^h^e^USA^PAT^{RIOT Ac}^t^{, by}^M.
^Ma^ur^e^eⁿ^M^u^r^p^hy^.
¹⁴^A^s^a^m^a^tte^r^of^c^onv^eⁿ^ie^nc^e^,^this^r^e^por^{t r}^e^f^e^r^s^{to s}^ubs^e^c^tio^ns⁽^{18 U}^.^S.C^.¹⁹⁵⁶⁽^a⁾⁾^,^pa^r^a^g^r^a^phs⁽^18U^.S^.C^{. 1}⁹⁵⁶⁽^a⁾⁽¹⁾⁾^,
^s^ubpa^r^a^g^r^a^phs⁽^{18 U}^.^S.C^.¹⁹⁵⁶⁽^a⁾⁽¹⁾⁽^A⁾⁾^,^c^l^a^u^s^e^s⁽^{18 U}^.^S.C^.¹⁹⁵⁶⁽^a⁾⁽¹⁾⁽^A⁾⁽ⁱ⁾⁾^,^a^{nd s}^u^bc^la^us^e^s^a^s^s^e^c^tions^.

Of the three promotional offenses, only the section 1956(a)(1)(A)(i) financial transaction offense
requires use of the proceeds of a predicate offense to promote a predicate offense, the others
require only a purpose to promote a predicate offense regardless of the source of the proceeds.
Section 1956(a)(1)(A)(i) applies to anyone who:
1. knowing
A. that the property involved in a financial transaction,
B. represents the proceeds of some form of unlawful activity,
2. A. conducts or
B. attempts to conduct
such a financial transaction
3. which in fact involves the proceeds of specified unlawful activity

4. with the intent to promote the carrying on of specified unlawful activity.¹⁵

The “financial transaction” element of the section 1956(a)(1)(A)(i) promotional offense has two
obvious components. It must be a transaction and it must be financial. Both components are
defined by statute. Qualifying transactions may take virtually any shape that involves the ¹⁶
disposition of something constituting the proceeds of an underlying crime, including disposition ¹⁷
as informal has handing cash over to someone else. The “financial” component supplies the
jurisdiction foundation for a section 1956(a)(1)(A)(ii) crime and each of the other crimes in
section 1956(a)(1). Qualifying transactions must either involve the movement of funds in a
manner that affects interstate or foreign commerce or involve a financial institution engaged in, or ¹⁸
whose activities affect, interstate or foreign commerce. In either case, the effect on interstate or ¹⁹
foreign commerce need be no more than de minimis to satisfy the jurisdictional requirement.

¹⁵¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(A^)(i);^Uⁿ^it^e^d^St^ate^s^v^.^Pa^nne^ll^,⁴⁰^{9 F}^.³^d²⁴⁰^,²⁴^{3 (}⁵^th^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^{d St}^at^e^s^v^.^W^h^ite^{, 4}⁹²
^F^.^3d³⁸^0,³⁹^{7 (}⁶^th^Cⁱ^r^.²⁰⁰⁷⁾^;^Uⁿⁱ^t^ed^S^t^a^t^{es v.}^Si^ng^h^,⁵^{18 F.3}^d²³^{6, 246}⁽⁴^th^Cⁱ^r^.²⁰⁰⁸⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^H^uds^pe^t^h^{, 52}⁵^th
^F^.^3d⁶⁶^7,⁶⁷^{7 (}⁸^Cⁱ^r^.²⁰⁰⁸⁾^.
¹⁶^“^T^he^te^r^m^‘tra^nsa^c^{tion’ inc}^l^ude^s^a^purc^h^a^s^e^,^sa^le^{, loa}ⁿ^,^ple^d^g^e^{, g}ⁱ^f^t^{, tra}ⁿ^sf^e^r^{, de}^liv^e^r^y^,^{or ot}^he^{r dis}^p^o^s^ition^,^aⁿ^d^w^ith
^r^e^s^p^e^c^t^{to a}^fⁱ^na^nc^ia^{l ins}^tⁱ^t^uti^oⁿⁱⁿ^c^l^ude^s^a^de^p^o^s^{it, w}^ith^dr^a^w^a^l^{, tr}^aⁿ^s^f^e^r^be^t^w^ee^{n a}^c^c^ounts^,^e^x^c^h^aⁿ^g^e^of^c^u^r^r^e^ncy^,^loaⁿ^,
^e^x^te^ns^{ion of}^c^r^e^d^it,^pur^c^h^a^s^e^or^s^a^le^of^aⁿ^y^s^t^oc^k^,^bon^{d, c}^e^r^tif^ic^a^t^e^of^de^pos^it,^or^ot^he^r^m^one^ta^r^y^ins^t^r^u^m^e^{nt, us}^e^of^a
^sa^fe^de^posit^box^,^{or a}ⁿ^y^othe^{r pa}^y^m^eⁿ^{t, tra}ⁿ^sf^e^r^{, or de}^liv^e^r^y^b^y^{, throug}^h,^{or t}^o^a^fⁱ^na^nc^ia^{l i}ⁿ^stitu^tio^n,^by^w^h^a^t^e^v^e^r
^mean^{s e}^f^f^ect^ed^,^”¹⁸^U.^S^.^C.¹⁹⁵⁶⁽^c⁾⁽³^).
¹⁷^Uⁿ^ite^d^St^ate^s^v^.^G^o^u^g^h^,¹⁵^{2 F}^.³^d¹¹⁷²^,¹¹⁷³⁽⁹^th^Cⁱ^r^.¹⁹⁹⁸⁾^;^Unⁱ^t^ed^S^t^a^t^{es v.}^Ga^rci^a^A^b^rego^{, 14}^{1 F.}^{3d 14}^{2, 16}⁰⁽⁵^th
^Cⁱ^r^.¹⁹⁹⁸⁾^;^Uⁿ^ite^{d State}^s^v^.^Roy^,³⁷⁵^F.^3d²¹^,^23-^{4 (}¹^st^Cir^.²⁰⁰⁴⁾⁽^e^x^c^h^aⁿ^g^e^be^t^w^e^eⁿ^indivⁱ^dua^ls^of^$10⁰^{bills f}^o^r
^c^u^rre^nc^y^o^f^s^m^a^lle^{r de}^nom^ina^tion^s^{to f}^a^c^ilita^te^drug^tra^f^fⁱ^c^k^ing⁾^.
¹⁸^“T^h^e^t^e^r^m^‘^fⁱⁿ^an^ci^al^t^r^an^sactⁱ^oⁿ^’^mean^{s (}^A^{) a t}^r^an^sactⁱ^oⁿ^w^hⁱ^c^hⁱⁿ^an^y^wa^y^o^r^d^e^{gree a}^f^f^ect^{s i}ⁿ^t^e^rst^a^t^e^o^r^f^o^rei^gⁿ
^c^o^m^m^e^r^c^e⁽ⁱ⁾^inv^o^lv^ing^the^m^o^v^e^m^e^{nt of}^f^unds^by^wⁱ^r^e^or^othe^r^m^e^aⁿ^s^or⁽ⁱⁱ⁾^inv^o^lv^ing^one^or^m^o^r^e^m^one^ta^r^y
^instrum^e^{nts, or (i}^{ii) i}ⁿ^v^o^lv^ing^the^traⁿ^sf^e^r^of^title^{to a}ⁿ^y^re^a^l^prope^rt^y^,^v^e^hic^l^e^,^v^e^ss^e^l^{, or a}ⁱ^rc^ra^f^t^{, or (}^B^{) a}^traⁿ^sa^c^tion
⁽^c^onti^nue^d.^..)

The knowledge element is likewise the subject of a specific definition which allows a conviction
without the necessity of proving that the defendant know the exact particulars of the underlying
offense or even its nature; it is enough that he knows that the property flows from some sort of ²⁰
criminal activity and that the property in fact constitutes the proceeds of a predicate offense. The
knowledge element cannot be negated by turning a blind eye to reality. Here and throughout
section 1956, knowledge may be inferred from facts indicating that criminal activity is ²¹
particularly likely.
For purposes of financial transaction promotional offenses and the other offenses within section

1956 for that matter, “‘conducts’ includes initiating, concluding, or participating in initiating, or ²²

concluding a transaction.” The “proceeds” may be tangible or intangible (e.g., cash or debt), ²³
things of value or things with no intrinsic value (e.g., checks written on depleted accounts).
All but two of the ten section 1956 crimes are related in one or another to the commission or
purported commission of at least one of a list of predicate offenses, “specified unlawful ²⁴
activities.” In the case of the financial institution promotional offense, one of these predicate ²⁵
offenses must be the source of the proceeds used to promote a predicate offense. The predicate

^(...c^on^tin^ue^d)
^inv^o^lv^ing^the^use^of^a^fⁱ^na^nc^ia^{l in}^stituti^{on w}^h^ic^{h is}^eⁿ^g^a^g^e^d^in,^{or t}^h^e^a^c^tiv^itie^{s of}^w^h^ic^{h a}^f^f^e^c^t^{, inte}^rsta^te^{or f}^o^re^igⁿ
^co^{mmerce i}ⁿ^an^y^wa^y^o^r^d^e^gree,^”¹⁸^U^.^S^.^C.¹⁹⁵⁶^(c)(4^).
¹⁹^Uⁿ^ite^d^St^ate^s^v^.^Able^s^,¹⁶^{7 F.3}^d¹⁰²^{1, 10}²⁹⁽⁶^th^Cⁱ^r^.¹⁹⁹⁹⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^O^w^eⁿ^s^,¹⁶^{7 F}^.³^d⁷³⁹^,⁷⁵⁵⁽¹^st^Cir^.
¹⁹⁹⁹⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Bo^llin^{, 2}⁶⁴^F.^3d³^91,⁴^{08 (}⁴^th^Cⁱ^r^.²⁰⁰¹⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^Gotti^{, 4}⁵⁹^F.^3d²⁹^{6, 3}³⁶⁽²^{d C}ⁱ^r^.^th
²⁰⁰⁶⁾^{; e}^.^g^.^,^Uⁿ^ite^d^St^ate^s^v^.^H^u^ds^pe^th^,⁵²^{5 F}^.³^d⁶⁶⁷^,⁶^80-⁸¹⁽⁸^{Cir. 2}⁰⁰⁸^{) (tra}^nsa^c^tio^{ns i}ⁿ^v^o^lv^e^d^c^h^e^c^k^s^w^r^itte^{n on}
^out^of^s^t^a^t^e^ba^nk^s⁾^.
²⁰^“T^h^e^t^e^r^m^‘kn^o^wⁱⁿ^{g t}^h^at^t^h^{e p}^r^op^ert^yⁱⁿ^vo^l^v^edⁱⁿ^{a f}ⁱⁿ^aⁿ^cⁱ^a^l^t^r^an^s^actⁱ^oⁿ^rep^r^esen^t^s^t^h^{e p}^r^o^ceed^{s o}^f^so^m^e^f^o^r^m^o^f
^uⁿ^l^aw^f^u^l^actⁱ^vⁱ^t^y^’^mean^{s t}^h^at^t^h^e^p^e^rsoⁿ^kn^ew^t^h^{e p}^r^o^p^e^rt^yⁱⁿ^vo^l^v^edⁱⁿ^t^h^{e t}^r^aⁿ^sactⁱ^oⁿ^re^p^r^esen^t^e^d^p^r^o^ceed^{s f}^r^o^m^so^me
^f^o^r^m^{, thoug}^hⁿ^o^{t ne}^c^e^s^s^a^r^ily^w^h^{ich f}^o^r^m^{, of}^a^c^tⁱ^v^it^y^tha^t^c^ons^tit^ute^s^a^f^e^lony^unde^r^Sta^t^e^,^Fe^de^r^a^l,^or^f^o^r^e^ig^{n law}^,
^r^e^g^a^r^d^le^s^s^of^w^h^e^t^he^r^or^no^{t s}^u^c^h^a^c^tiv^it^y^is^s^p^e^cⁱ^fⁱ^e^d^{in pa}^r^a^g^r^a^{ph (}⁷⁾^,^”¹⁸^U^.^S^.^C^.¹⁹⁵⁶⁽^c⁾⁽¹⁾^;^Unⁱ^t^e^{d S}^t^at^{es v.}^F^l^o^r^es^,^st
⁴⁵⁴^F.^3d¹^49,¹⁵^{5 (}³^d^Cⁱ^r^.²⁰⁰⁶⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Riv^e^r^a-^Ro^dr^ig^ue^z^{, 31}^{8 F}^.³^d²⁶⁸^,²^71-⁷²⁽¹^Cir.²⁰⁰³^);^Unⁱ^t^ed^th
^State^s^v^.^Hⁱ^l^l^,¹⁶^{7 F.}^3d¹⁰⁵⁵^,¹⁰⁶⁵^-⁶^{8 (}⁶^Cⁱ^r^.¹⁹⁹⁹⁾^.
²¹^Uⁿ^ite^d^St^ate^s^v^.^Flor^e^z^,³⁶^{8 F}^.³^d¹⁰^42,¹⁰⁴⁴⁽⁸^th^Cⁱ^r^.²⁰⁰⁴⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^N^e^k^t^al^ov^,⁴⁶^{1 F}^.³^d³⁰⁹^,³¹^4-¹⁵⁽²^d^Cⁱ^r^.
²⁰⁰⁶⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Fl^or^e^s^{, 45}^{4 F.}^3d¹^49,¹^{55 (}³^d^Cⁱ^r^.²⁰⁰⁶⁾^;^c^f^{., Unite}^{d S}^t^ate^s^v^.^Aⁿ^tzo^u^la^tos^,⁹⁶^{2 F.}^2d⁷^20,⁷²⁵^th
⁽⁷^{Cir. 1}⁹⁹²^{) (“}^{It is w}^e^{ll se}^ttle^{d t}^h^a^t^w^ilf^{ul blin}^dne^{ss or c}^ons^cⁱ^o^u^s^a^v^oida^nc^e^{is the}^le^g^a^{l e}^quiv^a^le^nt^t^o^k^now^le^dg^e^.^{. .}
^.W^e^the^r^e^f^ore^e^x^a^m^ine^the^c^onstit^utio^na^lity^of^se^c^{tion 19}^56(a⁾⁽¹^)(B^{) a}^s^a^pplie^d^{to a}^m^e^rc^ha^{nt w}^{ho a}^c^t^ua^lly^kⁿ^e^w^tha^t
^h^e^w^a^{s d}^ealⁱⁿ^g^wⁱ^t^h^d^r^u^g^d^eal^{ers an}^d^t^h^ei^{r m}^oⁿ^e^y^,^o^r^d^e^lⁱ^b^erat^el^y^t^u^rn^ed^a^b^lⁱⁿ^d^ey^{e regard}ⁱⁿ^{g t}^hⁱ^s^fact^.^.^.^.^W^e
^c^onc^lu^de^tha^t^Aⁿ^tz^ou^la^tos^’^rⁱ^g^h^t^t^o^li^be^r^t^y^unde^r^the^Fif^t^{h A}^m^e^ndm^eⁿ^{t w}^a^s^{not v}ⁱ^ola^t^e^d^”⁾^.
²²¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(2^).^Uⁿ^ite^d^St^a^t^e^s^v^.^Gotti^,⁴⁵⁹^F^.^3d²⁹^6,³³^{5 (2d}^Ci^r.²⁰⁰⁶^)(m^{ere recei}^p^t^o^f^f^unds^c^ons^tit^ute^s
^“^c^onduc^t^a^fⁱ^na^nc^ia^{l tra}ⁿ^s^a^c^tion”⁾^.^{In s}^p^ite^of^the^bre^a^d^th^of^the^de^fⁱ^nitio^{n, a}ⁿⁱ^ndivⁱ^d^u^a^l^m^u^s^t^beⁱⁿ^c^ontr^o^{l a}^t^s^o^m^e^th
^poi^{nt a}ⁿ^{d i}ⁿ^s^o^m^e^s^e^ns^e^of^the^pr^ope^r^t^y^inv^o^lv^e^d^{in t}^h^e^tr^aⁿ^s^a^c^tioⁿ^,^Uⁿ^ite^d^St^ate^s^v^.^H^u^be^r^{, 4}⁰⁴^F.³^d¹⁰⁴⁷^,¹⁰^{60 (}⁸
^{Cir. 2}⁰⁰⁵^)(a^de^f^e^nda^nt^doe^{s n}^o^{t c}^ond^uc^{t f}ⁱ^na^nc^ia^{l tra}ⁿ^sf^e^r^{s be}^tw^e^e^{n th}^ird^pa^rtie^{s w}^h^ic^{h he}^doe^{s n}^o^{t i}ⁿ^itia^te^aⁿ^{d in}
^w^h^ic^{h he}^doe^s^not^pa^r^tic^ipa^t^e⁾^.
²³^Uⁿ^ite^d^St^ate^s^v^.^Ak^int^oⁿ^bⁱ^,¹⁵^{9 F}^.^{3d 40}^{1, 40}³⁽⁹^th^Ci^r.¹⁹⁹⁸^).^T^h^er^{e i}^s^so^m^e^dⁱ^sp^u^t^{e o}^v^{er w}^h^et^h^e^{r t}^h^{e t}^e^rmⁱⁿ^cl^u^d^e^s
^r^e^v^e^nue^s^,^or^oⁿ^ly^pr^of^its^{, or}^s^o^m^e^thingⁱⁿ^be^tw^e^eⁿ^,^Uⁿ^ite^d^St^ate^s^v^.^G^r^as^s^o^,³⁸¹^F.^3d^{, 1}⁶⁰^,¹^66-⁶⁹⁽³^{d C}ⁱ^r^.
²⁰⁰⁴⁾⁽^c^iti^ng^c^a^s^e^s^r^e^f^l^e^c^ting^c^onf^lic^ting^vⁱ^e^w^s⁾^.^A^s^dis^c^us^s^e^{d be}^lo^w^,^the^Supr^e^m^e^C^our^{t a}^d^dr^e^s^s^e^{d t}^h^e^que^s^tⁱ^oⁿⁱⁿ
^Uⁿ^ite^{d State}^s^v^.^Sa^nt^os^,¹²^{8 S}^.^Ct^.²⁰²⁰⁽²⁰⁰⁸^).^F^o^u^r^o^f^t^h^{e j}^u^stⁱ^{ces co}ⁿ^c^l^u^d^e^d^t^h^at^t^h^e^t^e^rm^p^r^o^ceed^{s referred}^t^o^p^r^o^fⁱ^t^s^;
^f^o^u^r^o^t^h^e^{rs t}^h^atⁱ^t^ref^e^rred^t^o^gro^{ss recei}^p^t^s;^an^d^t^h^{e n}ⁱⁿ^t^h^,^Ju^stⁱ^{ce S}^t^even^s,^t^h^atⁱ^t^ref^e^rred^t^o^gro^{ss recei}^p^t^{s excep}^tⁱⁿ
^thos^eⁱⁿ^s^t^aⁿ^c^e^s^w^h^e^r^e^s^u^c^h^a^c^ons^tr^uc^tio^{n w}^ould^be^t^o^o^pe^r^v^e^r^s^e^to^s^upp^or^{t a}^be^lie^f^tha^t^C^ong^r^e^s^s^int^e^nde^{d s}^u^c^h^a
^readⁱⁿ^g.^Id^.^at²⁰³⁴^n.⁷^.
²⁴^Con^duc^ti^ng^{or a}^tte^m^p^ting^to^c^oⁿ^duc^{t a}ⁿ^inte^rⁿ^a^tio^na^{l tra}ⁿ^sf^e^r^{to a}^v^{oid s}^t^a^t^e^or^f^e^de^r^a^{l r}^e^por^tⁱ^ng^r^e^q^u^ir^e^m^eⁿ^ts^m^u^s^t
ⁱⁿ^vo^l^v^{e t}^h^{e p}^r^o^ceed^{s o}^f^so^m^e^cri^m^{e b}^u^t^t^h^{e o}^f^f^eⁿ^s^{e n}^eedⁿ^o^t^b^e^a^m^oⁿ^e^y^l^a^unde^rⁱ^ng^pr^e^d^ic^a^t^e^s^p^e^cⁱ^fⁱ^e^d^unla^w^f^u^l
^activ^it^y^,¹⁸^U.S.C^.¹⁹⁵⁶^(a)(2^)(B)(^ii).
²⁵¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(A^)(i).

offenses come in three varieties: state crimes, foreign crimes, and federal crimes. The list of state ²⁶
crimes is relatively short and consists of any state crime that is a RICO predicate offense, that is,
“any act or threat involving murder, kidnapping, gambling, arson, robbery, bribery, extortion,
dealing in obscene matter, or dealing in a controlled substance or listed chemical (as defined in
section 102 of the Controlled Substances Act), which is chargeable under state law and ²⁷
punishable by imprisonment for more than one year.”
The list of foreign crimes recognized as section 1956 predicate offenses is very much the same –
violations of the laws of another country involving murder, kidnapping, bribery, drug trafficking
and the like – but it only applies in cases involving a financial transaction occurring in whole or ²⁸
in part in this country.
The list of federal predicate offenses is considerably longer if for no other reason than it is both ²⁹
specific and generic. For instance, instead of listing “kidnapping in violation of federal law,” it
lists several of the federal statutes that outlaw kidnapping – interstate kidnapping, kidnapping a ³⁰
Member of Congress, kidnapping the President, and so forth. On the other hand, it also lists ³¹
“any act or activity constituting an offense involving a federal health care offense.” Moreover, it
encompasses not only the RICO state predicate offenses but also the RICO federal predicate ³²
offenses. The inventory of RICO predicates contains a substantial number of specifically
identified federal crimes and any of the federal crimes of terrorism cataloged in 18 U.S.C. ³³

2333b(g)(5)(B).

At one time, some courts believed that the “promotion” element of the promotional offense could
be satisfied by proof that the defendant used the proceeds to continue a pattern of criminal ³⁴³⁵
activity or to enhance the prospect of future criminal activity. Thus, a physician was said to

²⁶¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^)(A^).
²⁷¹⁸^U^.^S.C.¹⁹⁶¹⁽¹^)(A^).
²⁸^“[^T^]^h^e^t^e^rm^‘sp^eci^fⁱ^ed^uⁿ^l^aw^f^u^l^actⁱ^vⁱ^t^y^’^m^e^an^{s .}^.^.^(B)^wⁱ^t^h^resp^ect^t^o^{a f}ⁱⁿ^aⁿ^cⁱ^a^l^t^r^an^sactⁱ^oⁿ^o^ccu^rriⁿ^gⁱⁿ^w^h^o^l^e^o^r
^{in pa}^r^tⁱⁿ^the^Uⁿ^ite^{d S}^t^a^t^e^s^{, a}ⁿ^of^f^e^ns^e^a^g^aⁱ^ns^{t a}^f^o^r^e^ig^{n na}^{tion i}ⁿ^v^o^l^vⁱ^ng^{– (}ⁱ⁾^t^h^e^m^a^nuf^a^c^t^ur^e^,ⁱ^m^por^ta^tion,^s^a^le^{, or}
^dis^t^rⁱ^b^u^ti^on^of^a^c^ontr^o^lle^{d s}^ubs^ta^nc^e⁽^a^s^s^u^c^h^te^r^m^is^de^fⁱ^ne^{d f}^o^r^th^e^pur^p^o^s^e^s^of^the^C^o^ntr^o^lle^d^Su^bs^ta^nc^e^s^A^c^t)^{; (}ⁱⁱ⁾
^m^u^r^d^e^r^{, k}ⁱ^dna^ppi^ng^{, r}^o^bbe^r^y^{, e}^x^tor^tio^n,^de^s^t^r^u^c^tⁱ^on^of^pr^o^p^e^r^ty^b^y^m^e^aⁿ^s^of^e^x^plos^iv^e^or^fⁱ^r^e^{, or}^a^c^r^im^e^o^f^vⁱ^oleⁿ^c^e⁽^a^s
^de^fⁱ^ne^{d in se}^c^tioⁿ^{16); (}^{iii) f}^r^a^ud,^{or a}ⁿ^y^sc^he^m^e^{or a}^tte^m^p^{t to}^de^f^r^a^ud,^by^{or a}^g^aⁱ^{nst a}^f^o^re^ig^{n ba}^nk^(a^{s de}^fⁱ^ne^{d in}
^pa^r^a^g^r^a^{ph 7}^of^s^e^c^{tion 1(}^b)^of^the^Iⁿ^te^rⁿ^a^tio^na^{l B}^a^nk^ing^A^c^{t of}¹⁹⁷⁸⁾⁾^;⁽ⁱ^v⁾^br^ibe^r^y^of^a^public^of^fⁱ^cⁱ^a^l^{, or}^t^h^e
^mⁱ^sa^ppr^opr^ia^tio^{n, t}^h^e^f^{t, or}^e^m^be^zz^lem^e^{nt of}^public^f^uⁿ^d^s^by^or^f^o^r^the^be^ne^f^{it of}^a^pu^blic^of^fⁱ^cⁱ^a^{l; (}^v⁾^s^m^ugg^ling^or
^e^x^p^o^r^{t c}^oⁿ^t^ro^{l v}ⁱ^o^l^a^tioⁿ^sⁱⁿ^v^o^l^vⁱⁿ^g^–^{(I) a}ⁿⁱ^t^e^m^c^oⁿ^t^ro^lle^d^oⁿ^th^e^Un^ite^d^S^t^a^t^e^s^Muⁿ^itioⁿ^s^Lⁱ^{st e}^s^ta^b^lish^e^d^uⁿ^d^e^r
^sectioⁿ³⁸^o^f^th^{e A}^r^m^s^Ex^p^o^r^{t Co}ⁿ^t^ro^l^A^c^{t (2}²^U.S.C^.²⁷⁷⁸^);^o^r^(II)^an^item^coⁿ^t^ro^lle^d^uⁿ^d^e^{r reg}^u^lati^oⁿ^s^uⁿ^d^e^{r th}^e
^Ex^por^{t A}^d^mⁱ^nis^t^r^a^{tion R}^e^g^u^la^ti^oⁿ^s⁽¹^{5 C}^.^F^.^R^.^P^a^r^t^s⁷³^0-⁷⁷⁴⁾^;^or⁽^vⁱ⁾^aⁿ^of^f^e^ns^e^w^{ith r}^e^s^p^e^c^t^{to w}^h^ic^{h the}^Uⁿ^ite^d
^Sta^t^e^s^w^{ould be}^obl^ig^a^t^e^d^by^a^m^u^ltila^te^ra^{l tre}^a^t^y^,^e^ithe^r^{to e}^x^tra^d^it^e^the^a^lle^g^e^{d of}^f^e^nde^{r or to su}^bm^{it the}^c^a^s^e^f^o^r
^pr^os^e^c^u^ti^on,^if^the^of^f^e^nde^r^w^e^r^e^f^{ound w}^ithiⁿ^the^te^r^r^itor^y^of^the^Uⁿ^ite^{d S}^t^a^t^e^s^,”^{18 U}^.^S.C^.¹⁹⁵⁶⁽^c⁾⁽⁷⁾⁽^B⁾^;^Unⁱ^t^ed
^S^t^a^t^{es v.}^Oⁿ^{e 19}⁹⁷^E³⁵^F^o^rd^V^aⁿ^{, 50}^F.^Su^pp.^2d⁷^89,⁽^N^.D^.I^ll.¹⁹⁹⁹⁾⁽^“^of^f^e^ns^e^a^g^aⁱ^ns^{t a}^f^o^r^eⁱ^g^{n na}^ti^on”^m^e^aⁿ^s^aⁿ^th
^of^f^e^ns^e^{in v}ⁱ^ola^tioⁿ^of^the^la^w^s^of^a^f^o^r^e^ig^{n na}^tion)^,^cf^.^,^Uⁿ^ite^d^St^at^e^s^v^.^M^aglut^a^,⁴¹^{8 F}^.³^d¹¹⁶⁶^,¹¹^{73 (}¹¹^Cⁱ^r^.²⁰⁰⁵⁾^.
²⁹^T^h^e^lis^{t of}^f^e^de^r^a^l^m^oney^la^unde^rⁱ^ng^pr^e^d^ic^a^t^e^of^f^e^ns^e^s^is^a^ppe^nde^d.
³⁰^{18 U}^.^S.C^.¹⁹⁵⁶⁽^c⁾⁽⁷⁾⁽^D⁾⁽^“^the^te^r^m^‘^s^pe^cⁱ^fⁱ^e^d^unla^w^f^u^{l a}^c^tiv^it^y^’^m^e^aⁿ^s^{. . . a}ⁿ^of^f^e^ns^e^unde^r^s^e^c^tion³⁵¹^[^o^f^f^e^ns^e^s
^a^g^aⁱ^ns^{t Mem}^b^e^r^s^of^C^ong^r^e^s^s^]^{. .}^.¹²⁰¹^[ⁱ^nte^r^s^t^a^t^e^kⁱ^dⁿ^a^ppi^ng^]^.^.^{. 1}⁷⁵¹^[^o^f^f^e^ns^e^s^ag^aⁱ^ns^{t the}^P^r^e^s^ideⁿ^t^]^{. .}^.”⁾^.^A^lis^{t of}
^t^h^{e f}^e^d^e^ral^p^r^edⁱ^cat^{e o}^f^fen^s^{es i}^s^a^p^p^e^nd^ed^.
³¹¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^)(F).
³²¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^)(A^).
³³¹⁸^U^.^S^.^C^.¹⁹⁶¹⁽¹⁾^.
³⁴^Uⁿ^ite^d^St^ate^s^v^.^M^a^s^t^eⁿ^,¹⁷^{0 F}^.³^d⁷^90,⁷^97-⁹⁸⁽⁷^th^Cⁱ^r^.¹⁹⁹⁹⁾⁽^p^a^y^m^e^nts^{to e}^a^r^ly^vⁱ^c^tⁱ^m^s^of^a^p^y^r^a^mⁱ^{d s}^c^he^m^e^ke^pt
^the^s^c^he^m^e^a^lⁱ^v^e^a^{nd e}ⁿ^a^b^le^d^the^de^f^e^nda^{nt to e}ⁿ^sⁿ^a^r^e^s^ubs^e^q^ue^nt^vⁱ^c^tⁱ^m^s⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^M^ile^s^,³^{60 F.3}^d⁴⁷^{2, 478}^th
⁽⁵^{Cir. 2}⁰⁰⁴^)(a^ddi^ng^the^obse^r^v^a^tion^tha^t^w^h^eⁿ^aⁿ^eⁿ^te^rprise^{is a}^s^a^w^hole^ille^g^itim^a^t^e^e^v^eⁿ^othe^rw^ise^ordina^ry^a^nd
⁽^c^onti^nue^d.^..)

violate section 1956(a)(1)(A)(i), when he engaged in an ongoing pattern of defrauding Medicare,
and deposited the Medicare payments in a bank account from which he pays the operating
expenses of his clinic thereby providing the necessary environment for further fraudulent ³⁶
claims. Yet the courts experienced some difficulty distinguishing between furthering an existing
offense on one hand and facilitating a future offense on the other. Some required that the ³⁷
promotional proceeds flow from a completed crime or completed phase of an on-going crime; ³⁸
others insisted that the promotional proceeds consist only of the profits of past offenses. The
Supreme Court first visited the issue in United States v. Santos, 128 S.Ct. 2020 (2008), but the
results of its initial examination suggests that the Court may have to revisit the issue after
Congress and the lower courts have had an opportunity to reflect upon its concerns.
Santos involved a long running numbers operation.³⁹ Santos used some of the money collected
from the gambling operation to pay his collectors and to pay off winners. He was convicted of ⁴⁰
running an illegal gambling business. He was also convicted of engaging in promotional money ⁴¹
laundering when he paid winners and his employees from the gambling receipts. The lower
courts throw out the money laundering conviction because there was no evidence whether the ⁴²
proceeds used were anything more than gross receipts.
The Court granted certiorari, but had difficulty reaching consensus on the issue. Four justices
agreed that “proceeds” means “profits;” four concluded that it means “gross receipts.” The ninth
justice sided with the four “gross receipt” justices for purposes of the result, but suggested that
sometimes proceeds means profits and sometimes it means gross receipts.

^(...c^on^tin^ue^d)
^la^w^f^{ul e}^x^pe^nditur^e^s^m^a^y^s^uppor^t^a^pr^om^otion^m^one^y^la^unde^rⁱ^ng^c^h^a^r^g^e⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^Por^t^all^a^{, 4}^{96 F.3}^d^23,²⁹⁽¹^st^th
^Cⁱ^r^.²⁰⁰⁷⁾^;^Uⁿ^ite^d^State^s^v^.^H^uds^pe^th^,⁵²⁵^F.^3d⁶⁶^7,⁶⁷^{9 (}⁸^Cⁱ^r^.²⁰⁰⁸⁾^.
³⁵^Uⁿ^ite^d^St^ate^s^v^.^Pe^te^r^s^oⁿ^,²^{44 F.}^{3d 38}^{5, 39}²⁽⁵^th^Cir.²⁰⁰¹^)(“^W^h^eⁿ^a^b^u^sine^{ss a}^s^a^w^hole^{is ille}^g^iti^m^a^te^{, e}^v^eⁿ
^indivⁱ^d^u^a^l^e^x^pe^nd^itur^e^s^t^h^a^t^a^r^eⁿ^o^{t i}ⁿ^tr^insⁱ^c^a^lly^unla^w^f^u^{l c}^aⁿ^s^upp^or^{t a}^pr^om^oting^m^oney^la^unde^rⁱⁿ^g^c^h^a^r^g^e^”⁾^;^Unite^d^st
^State^s^v^.^I^a^c^a^boⁿⁱ^,³⁶^{3 F.}^3d^1,⁶^n.9⁽¹^Cⁱ^r^.²⁰⁰⁴⁾⁽^“^T^h^e^pa^y^m^eⁿ^{t of}^s^a^la^rⁱ^e^s^of^em^plo^y^ee^s^is^a^c^o^m^m^{on e}^x^am^ple^of^th
^prom^otion^w^{ithin t}^h^e^m^e^aⁿ^ing^of^the^sta^t^ute^”⁾^;^Unⁱ^t^ed^S^t^a^t^{es v.}^Ki^ng^,¹⁶^{9 F}^.³^d¹⁰³⁵^,¹⁰⁴⁰⁽⁶^{Cir. 1}⁹⁹⁹^)(d^r^u^g^d^ealer’s
^pa^y^m^eⁿ^{t f}^o^r^pa^s^t^s^h^ipm^e^nts^pr^e^s^e^r^v^e^{d the}^de^f^e^nda^nt’^s^o^p^p^o^r^t^unity^{to a}^c^quir^e^a^dditi^ona^l^s^hⁱ^p^m^e^nts⁾^.
³⁶^Unⁱ^t^e^d^S^t^a^t^{es v.}^L^a^wren^ce^{, 40}⁵^F^.^{3d 88}^{8, 90}¹⁽¹⁰^th^Cⁱ^r^.²⁰⁰⁵⁾^.
³⁷^Uⁿ^ite^d^St^ate^s^v^.^Si^ng^h^,⁵¹^{8 F}^.³^d²³⁶^{, 2}⁴⁷⁽⁴^th^Cⁱ^r^.²⁰⁰⁸⁾⁽^“^Iⁿ^a^m^one^y^la^unde^rⁱ^ng^of^f^e^ns^e^,^the^pr^ope^r^t^y^inv^o^lv^e^dⁱⁿ
^t^h^{e t}^r^an^sactⁱ^oⁿ^m^u^st^rep^r^esen^t^t^h^e^p^r^o^ceed^{s o}^f^an^al^read^y^co^m^p^l^e^t^e^d^o^f^f^eⁿ^s^e,^o^r^{a co}^m^p^et^ed^p^h^a^{se o}^f^an^on^-goⁱⁿ^g
^of^f^e^ns^e^”⁾^.
³⁸^Uⁿ^ite^d^St^ate^s^v^.^Scⁱ^a^la^bb^a^{, 28}²^F^.^{3d 47}^{5, 47}⁸⁽⁷^th^Cⁱ^r^.²⁰⁰²⁾^.
³⁹¹²^{8 S}^.^C^t^{. a}^t²⁰²³^.
⁴⁰^I.e^{., 1}⁸^U.^S.C.¹⁹⁵⁵^(“^(a^{) W}^hoe^v^e^{r c}^ond^uc^{ts, f}ⁱ^na^nc^e^s^{, m}^a^na^ge^{s, s}^upe^rv^ise^s^{, dire}^c^t^{s, or}^ow^{ns a}^{ll or}^pa^{rt of}^aⁿ^ille^g^a^l
^g^a^m^b^ling^bus^ine^s^s^s^h^a^l^l^be^fⁱ^ne^d^unde^r^this^title^or^im^pris^one^d^no^t^m^o^re^thaⁿ^fⁱ^v^e^y^e^a^r^s^,^{or bot}^{h. (}^b⁾^A^s^us^e^d^{in this}
^se^c^{tion –}^{(1) ‘}^ille^g^a^{l g}^a^m^b^ling^bu^sine^{ss’ m}^e^aⁿ^{s a}^g^a^m^b^ling^busin^e^s^{s w}^h^ic^{h – (i) is a}^vⁱ^ola^tio^{n of}^the^l^a^w^o^f^a^Sta^t^e^or
^polit^ic^a^l^s^u^b^d^iv^is^io^{n in}^w^h^ic^{h it is}^c^ond^uc^te^{d; (}ⁱⁱ⁾ⁱⁿ^v^o^lv^e^s^fⁱ^v^e^or^m^o^r^e^pe^r^s^ons^w^{ho c}^oⁿ^duc^{t, f}ⁱ^naⁿ^c^e^,^m^a^na^g^e^,
^s^upe^r^v^is^e^,^dir^e^c^t^{, or}^ow^{n a}^ll^or^pa^r^t^of^s^u^c^h^b^u^sⁱ^ne^s^s^;^aⁿ^{d (}ⁱⁱⁱ⁾^ha^s^b^e^eⁿ^or^r^e^m^a^ins^{in s}^ubs^ta^ntia^lly^c^ontin^uo^us^o^p^e^r^a^tioⁿ
^f^o^r^a^pe^rⁱ^od^{in e}^x^c^e^s^s^of^thir^ty^da^y^s^or^ha^s^a^g^r^os^s^r^e^v^e^nue^of^$2,⁰⁰^{0 in}^aⁿ^y^sⁱ^ng^le^day^”⁾^.
⁴¹¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(A^)(i).
⁴²^Sa^ntos^’^s^c^o^nv^ic^tio^{n a}ⁿ^{d t}^hos^e^of^his^c^o^h^o^r^t^s^ha^d^be^eⁿ^a^f^fⁱ^r^m^e^d^on^dir^e^c^t^a^ppe^a^l^,^Uⁿ^ite^d^St^ate^s^v^.^Fe^bus^,²¹⁸^F.^3d⁷⁸⁴
⁽⁷^th^Cⁱ^r^.²⁰⁰⁰⁾^.^Oⁿ^c^o^lla^te^r^a^{l r}^e^vⁱ^e^w^{, the}^dis^t^rⁱ^c^t^c^our^t^aⁿ^d^a^ppe^lla^t^e^pa^ne^{l f}^oun^{d t}^h^e^m^s^e^l^v^e^s^c^ons^tr^aⁱ^ne^{d by}^the^th
^inte^rv^eⁿ^ing^de^cⁱ^sioⁿⁱⁿ^Unⁱ^t^ed^St^a^t^{es v.}^S^cⁱ^a^l^a^b^b^a^,²⁸^{2 F.}^3d⁴^{75 (}⁷^Cⁱ^r^.²⁰⁰²⁾^w^h^ic^{h de}^fⁱ^ne^d^pr^oc^e^e^d^s^a^s^pr^of^its^th
^rat^h^{er t}^h^an^gro^{ss recei}^p^t^s,^Uⁿ^ite^{d State}^s^v^.^Sa^ntos^,⁴^{61 F.}^{3d 88}⁶⁽⁷^Cⁱ^r^.²⁰⁰⁶⁾^.

Justice Scalia, in the plurality opinion for the Court, noted that the Congress did not explicitly ⁴³
define “proceeds” as the term is used in the money laundering statute.
In such cases words are thought to have their ordinary meaning. In common parlance, proceeds ⁴⁴
can mean either profits or gross receipts. When the words of a criminal statute can be read in
either of two ways, the rule of lenity requires them to be construed in the manner most favorable ⁴⁵
to the accused. Recourse to the rule avoids the so-called merger problem:
Since few lotteries, if any, will not pay their winners, the statute criminalizing illegal lotteries, 18
U.S.C. 1955, would “merge” with the money laundering statute. Congress evidently decided that
lottery operators ordinarily deserve up to 5 years of imprisonment, §1955(a), but as a result of
merger they would face an additional 20 years [under the money laundering statute], §1956(a)(1).
. . . The merger problem is not limited to lottery operators. . . . Generally speaking, any specified
unlawful activity, an episode of which includes transactions which are not elements of the offense
and in which the participant passes receipts on to someone else, would merge with money ⁴⁶
laundering. There are more than 250 predicate offenses for the money-laundering statute.
Justice Stevens concurred in the result, not the rationale, of the plurality opinion.⁴⁷ He agreed
with the dissent at least to the extent that “the legislative history of §1956 makes it clear that
Congress intended the term ‘proceeds’ to include gross revenues from the sale of contraband and ⁴⁸
the operation of organized crime syndicates involved in such sales.” Yet he found the results of
inevitable merger too extraordinary to believe Congress intended them in other instances:
The revenue generated by a gambling business that is used to pay the essential expenses of
operating that business is not “proceeds” within the meaning of the money laundering statute. As
the plurality notes, there is “no explanation for why Congress would have wanted a transaction
that is a normal part of a crime it had duly considered and appropriately punished elsewhere in
the Criminal Code, to radically increase the sentence for that crime.”. . . Congress could not have ⁴⁹
intended the perverse result that would obtain in this case under Justice Alito’s opinion. . . .
Consequently, he would presume (and the case should probably be read to mean) that Congress
intended the word “proceeds” to mean “gross receipts,” except in those cases, like Santos, where ⁵⁰
the results would be too “perverse” to support such a presumption.
The proscription of the international promotional offense in section 1956(a)(2)(A) applies to
anyone who:

⁴³¹²^{8 S}^.^C^t^{. a}^t²⁰²⁴^.
⁴⁴^Id^.
⁴⁵^Id^.^a^t²⁰²⁵^.
⁴⁶^Id^.^a^t²⁰^26-²⁷^.
⁴⁷^Id^.^a^t²⁰³¹⁽^S^te^v^e^ns^{, J}^.^c^o^nc^ur^rⁱⁿ^g^{in the}^j^udg^m^e^nt)^.
⁴⁸^Id^.^a^t²⁰³²^(e^m^pha^sizⁱ^ng^tha^t^he^c^ouldⁿ^o^{t “}^a^g^re^e^w^{ith the}^plur^a^lⁱ^t^y^tha^t^the^rule^of^le^nity^m^u^{st a}^pply^{to the}^de^fⁱ^nitioⁿ
^o^f^‘p^ro^ceed^{s’ f}^o^{r th}^{ese ty}^p^e^{s o}^f^uⁿ^l^awf^u^{l activ}^ities”).
⁴⁹^Id^.^a^t²⁰³³⁽^q^uotiⁿ^g^the^plur^a^l^ity^opi^nioⁿ^a^t²⁰²⁷⁾^.
⁵⁰^Id^.^a^t²⁰³⁴^n.^{7. T}^h^e^a^p^pe^nde^{d lis}^{t of}^f^e^de^r^a^l^m^oney^pr^e^d^ic^a^t^e^of^f^e^ns^e^s^note^s^the^m^a^xⁱ^m^u^m^te^r^m^ofⁱ^m^pr^is^onm^eⁿ^{t tha}^t
^ma^y^b^eⁱ^m^p^o^s^ed^f^o^{r each}^o^f^t^h^{e pred}ⁱ^cat^es.

1. A. transports, transmits, or transfers, or
B. attempts to transport, transmit, or transfer
2. a monetary instrument or funds
3. A. from a place in the U.S. to or through a place outside the U.S. or
B. to a place in the U.S. from or through a place outside the U.S.

4. with the intent to promote the carrying on of specified unlawful activity.⁵¹

“Monetary instruments” are defined broadly by statute to include cash, checks, securities and the ⁵²
like. Since section 1952(a)(2)(A) proscribes both transportation and attempted transportation,
prosecution may be had even though no funds were in fact transported internationally as long as ⁵³
the government proves a substantial step towards international transportation. The section does
not demand that the transported funds flow from a predicate offense or from any other unlawful
source; all that is required is that the offender intends to use them to promote a predicate ⁵⁴
offense. Where the international promotional offense shares common elements with other
section 1956 offenses, they have the same meaning in throughout. Thus, similar “intent to
promote” elements impose the same requirements of proof upon the government regardless of
whether the offense charged is a section 1956(a)(1)(A)(i) financial institution promotional offense ⁵⁵
or a section 1956(a)(2)(A) international promotional offense. The statutory list of state, federal
and foreign predicate offenses (specified unlawful activities) applies to a section 1956(a)(2)(A) ⁵⁶
offense as it does for all but one of the section 1956 offenses.
The final promotional money laundering offense, section 1956(a)(3) (A), is a variation of the
financial transaction offense, created to cover situations in which law enforcement officials acting
undercover have duped the offender into believing the agent is using the proceeds from a criminal ⁵⁷
source to promote a predicate offense when in fact he is not. The offense occurs when an
offender:

⁵¹¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(2^)(A^);^Uⁿ^ite^d^State^s^v^.^C^aplⁱⁿ^ge^r^{, 3}³⁹^F.3^d²²⁶^,²³^{2 (}⁴^th^Cⁱ^r^.²⁰⁰³⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^Narv^iz-
^Gu^erra^,¹^{48 F.3}^d⁵³^{0, 53}⁹⁽⁵^th^Cⁱ^r^.¹⁹⁹⁸⁾^.
⁵²^“[^T^]^h^e^t^e^rm^‘^m^oⁿ^e^t^a^r^yⁱⁿ^st^ru^m^eⁿ^t^{s’ m}^e^an^{s (i}^{) co}ⁱⁿ^o^r^cu^rreⁿ^c^y^o^f^t^h^{e Un}ⁱ^t^e^{d S}^t^at^{es o}^r^o^f^an^y^o^t^h^e^{r co}^uⁿ^t^r^y^,^t^r^avel^er^s'
^c^h^e^c^k^{s, pe}^rsona^{l c}^h^e^c^k^{s, ba}^nk^c^h^e^c^k^{s, a}^{nd m}^one^y^orde^{rs, or (ii)}ⁱⁿ^v^e^st^m^e^{nt s}^e^c^u^ritie^{s or ne}^g^o^tia^ble^instrum^e^{nts, in}
^be^a^r^e^r^f^o^r^m^{or othe}^rw^ise^{in suc}^h^f^o^rm^tha^t^title^the^r^e^t^{o pa}^sse^{s up}^on^de^liv^e^r^y^,^”^{18 U.S.C}^.¹⁹⁵⁶^(c^)(5).
⁵³^Uⁿ^ite^d^St^ate^s^v^.^G^a^r^c^ia^Abr^e^g^o^,¹⁴¹^F.^3d¹^42,¹⁶²^n.8⁽⁵^th^Cⁱ^r^.¹⁹⁹⁸⁾^.
⁵⁴¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(2^)(A^).
⁵⁵^Uⁿ^ite^d^St^ate^s^v^.^C^a^plin^ge^r^,³³⁹^F^.^3d²²^6,²³^{3 (}⁴^th^Cⁱ^r^.²⁰⁰³⁾^.
⁵⁶^Se^c^tion¹⁹⁵⁶⁽^a⁾⁽²⁾⁽^B⁾⁽ⁱⁱ⁾⁽ⁱ^nte^r^na^tiona^l^tr^aⁿ^s^f^e^r^s^{to a}^v^{oid s}^t^a^t^e^or^f^e^de^r^a^{l r}^e^por^ti^ng^r^e^quir^e^m^e^nts⁾^ha^s^{no s}^p^e^cⁱ^fⁱ^e^d
^unla^w^f^u^{l a}^c^tiv^it^y^e^l^e^m^eⁿ^t.
⁵⁷^“^T^his^am^e^ndm^eⁿ^{t to t}^h^e^m^one^y^l^a^unde^rⁱ^ng^s^t^a^t^ute^,^{18 U}^.^S.C^.¹⁹⁵⁶^{, w}^ould^pe^r^m^{it unde}^r^c^ov^e^r^la^w^eⁿ^f^o^r^c^em^eⁿ^t
^of^fⁱ^c^e^r^s^{to pos}^e^a^s^dr^ug^tr^a^f^fⁱ^c^k^e^r^s^{in or}^de^r^t^o^o^b^taⁱⁿ^e^v^ideⁿ^c^e^ne^c^e^s^s^a^r^y^{to c}^onv^ic^{t m}^oney^la^unde^r^e^r^s^{. T}^h^e^pr^e^s^eⁿ^t
^st^at^u^t^{e d}^o^e^sⁿ^o^t^p^r^o^vⁱ^d^{e f}^o^{r su}^ch^o^p^e^ratⁱ^oⁿ^s^b^ecau^{se i}^t^p^e^rmⁱ^t^s^{a co}ⁿ^vⁱ^c^tⁱ^oⁿ^oⁿ^l^y^w^h^{ere t}^h^{e l}^a^unde^r^e^{d m}^one^y^‘ⁱ^{n f}^a^c^t
ⁱⁿ^vo^l^v^{es t}^h^{e p}^r^o^ceed^{s o}^f^sp^eci^fⁱ^ed^uⁿ^l^aw^f^u^l^actⁱ^vⁱ^t^y^.^’”^{134 C}^ONG^.R^EC^{. 27,}⁴²^{0 (}¹⁹⁸⁸⁾⁽^D^e^p^a^r^tm^eⁿ^{t of}^J^u^s^tic^e^s^e^c^tion-^by^-
^se^c^{tion a}ⁿ^a^l^y^s^{is inse}^rte^d^by^the^bi^{ll’s spo}ⁿ^sors).

1. with the intent to promote the carrying on of specific unlawful activity
2. A. conducts or
B. attempts to conduct
3. a financial transaction
4. involving property represented to be
A. the proceeds of specific unlawful activity or
B. property used to conduct or facilitate specified unlawful activity.⁵⁸
The generous statutory definition of “financial transactions,” which embodies a “sale. . . .
transfer, delivery, or other disposition” involving a monetary instrument or the use of a financial ⁵⁹
institution, applies with equal force here and throughout section 1956. The “representations”
alluded to are confined to those “made by a law enforcement officer or by another person at the
direction of, or with the approval of, a federal official authorized to investigate or prosecution ⁶⁰
violations of this section.” In sting prosecutions under other 1956 sections, the courts have held
that the representation need not be explicit; it is enough that a reasonable person would infer from ⁶¹
the circumstances that funds to be laundered were the proceeds of a predicate offense. The same ⁶²
construction should hold true for representations under the financial transaction sting. By
definition, the qualifying state, federal and foreign predicate offenses are the same for section ⁶³

1956(a)(3)(C)’s promotional offense stings as for the other section 1956 offenses.

Prosecution of section 1956(a)(3) sting offenses might seem to invite entrapment defense claims.
As a general rule, “[w]here the government has induced an individual to break the law and the
defense of entrapment is at issue . . . the prosecution must prove beyond reasonable doubt that the
defendant was predisposed to commit the criminal act prior to first being approached by ⁶⁴
government agents.” Evidence of a defendant’s predisposition may include “(1) the character or
reputation of the defendant; (2) whether the government made the initial suggestion of criminal
activity; (3) whether the defendant engaged in the activity for profit; (4) whether the defendant

⁵⁸¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(3^)(A^{). T}^h^{e term}ⁱⁿ^o^l^o^g^y^u^s^edⁱⁿ^th^{e s}^e^c^tio^{n pe}^r^m^{its a}ⁿ^a^lte^rna^tiv^e^c^onstruc^tion^o^f^the^f^ourth
^e^l^em^eⁿ^{t. T}^h^e^phr^a^s^eⁱⁿ^que^s^tio^{n r}^e^a^d^s^“^c^onduc^ts^or^a^tte^m^p^ts^c^ond^u^c^{t a}^fⁱ^na^nc^ia^{l tr}^aⁿ^s^a^c^{tion i}ⁿ^v^o^lvⁱⁿ^g^pr^ope^r^t^y
^rep^r^esen^t^e^d^t^o^b^e^t^h^{e p}^r^o^ceed^{s o}^f^sp^eci^fⁱ^ed^uⁿ^l^awf^u^l^actⁱ^vⁱ^t^y^,^o^r^pro^p^e^r^ty^use^d^t^o^c^o^nd^uc^{t or f}^a^c^ilit^ate^spe^c^ifie^d
^unl^awful^ac^tiv^ity^,”^{18 U}^.^S.C^.¹⁹⁵⁶⁽^a⁾⁽³⁾⁽^e^m^pha^sⁱ^s^a^dde^d)^{. I}^t^is^p^o^s^s^ib^le^to^re^a^d^the^portⁱ^oⁿⁱⁿ^ita^lic^s^a^s^re^fe^rring^to
^pr^o^p^e^r^ty^rep^r^e^s^en^ted^to^be^pr^ope^r^t^y^us^e^d^{to c}^oⁿ^duc^{t a}^pr^e^d^ic^a^t^e^of^f^e^ns^e^or^a^lte^rⁿ^a^tiv^e^l^y^a^s^r^e^f^e^r^rⁱ^ng^{to pr}^ope^r^t^y^tha^tⁱⁿ
^fac^t^c^ons^t^itute^s^pr^o^p^e^r^ty^us^e^d^{to c}^ond^uc^{t a}^pr^e^d^ic^a^t^e^of^f^e^ns^e^.^T^h^e^fⁱ^r^s^{t c}^ons^tr^uc^ti^on^s^e^e^m^s^{to m}^o^r^e^c^ons^is^te^{nt w}^{ith t}^h^e
^pur^pose^f^o^{r a}^ddi^ng^the^se^c^tio^{n, W}^illia^m^s^&^W^h^itne^y^{, F}^ED^ER^A^L^M^ON^E^Y^L^AUNDE^R^I^NG^:^C^RI^M^E^S^A^ND^F^ORF^E^I^T^UR^E^196-⁹⁷
⁽¹⁹⁹⁹^aⁿ^{d 20}^{04 Su}^pp.)^.
⁵⁹¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(3^),(⁴^).
⁶⁰¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(3^).
⁶¹^Uⁿ^ite^d^St^ate^s^v^.^St^ar^k^e^{, 6}²^F.^3d¹³⁷^4,¹³⁸²⁽¹¹^th^Cⁱ^r^.¹⁹⁹⁵⁾^;^Uni^t^ed^S^t^a^t^{es v.}^Wyd^e^rmyer^{, 51 F.}^3d³¹⁹^{, 3}²⁷^-²⁸⁽²^d
^Cⁱ^r^.¹⁹⁹⁵⁾^;^Uⁿ^ite^d^State^s^v^.^K^a^u^f^m^aⁿ^,⁹⁸^{5 F}^.²^d⁸⁸⁴^,⁸^92-⁹³⁽⁷^th^Cⁱ^r^.¹⁹⁹³⁾^.
⁶²^Uⁿ^ite^d^St^ate^s^v^.^Por^t^all^a^,⁴⁹^{6 F.}^3d^23,²⁸^-²^{9 (}⁵^th^Cⁱ^r^.²⁰⁰⁷⁾^.
⁶³¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^).
⁶⁴^J^a^c^obs^oⁿ^v^.^Uⁿ^ite^d^St^ate^s^{, 5}⁰³^U^.^S.⁵⁴^0,⁵⁴^8-⁴⁹⁽¹⁹⁹²⁾^.

showed any reluctance; and (5) the nature of the government’s inducement.”⁶⁵ The defense, ⁶⁶
however, does not appear to have enjoyed a great deal of success in section 1953(a)(3) cases.
Like promotional money laundering, concealment money laundering comes in three varieties;
concealment associated with a financial transaction, concealment associated with interstate or
foreign transportation or transmission, and concealment associated with a sting.
Concealment in violation of section 1956(a)(1)(B) (i) occurs when anyone:
1. knowing
A. that the property involved in a financial transaction
B. represents the proceeds of some form of unlawful activity,
2. A. conducts or
B. attempts to conduct
such a financial transaction
3. which in fact involves the proceeds of specified unlawful activity
4. knowing that the transaction is designed in whole or in part
to conceal or disguise the nature, location, the source, the ownership, or the control of the proceed ⁶⁷
of specified unlawful activity.
The concealment offense shares several common elements with the other offenses in section

1956. The definitions of “financial transaction” found in section 1956(c)(3),(4)(“sale. . . . transfer,

delivery, or other disposition” involving a monetary instrument or a financial institution) governs.
One court, for example, has held that the defendant’s removal of cash from the home of a drug
trafficking confederate constituted a financial transaction for purposes of concealment money ⁶⁸
laundering under section 1956(a)(1)(B)(i). The accused must be shown to have known that the

⁶⁵^E.g^.,^Unⁱ^t^ed^S^t^a^t^{es v.}^G^u^ro^l^l^a^,³³^{3 F.}^3d⁹^44,⁹^{55 (}⁹^th^Cⁱ^r^.²⁰⁰³⁾^.
⁶⁶^E^x^a^m^p^l^{es o}^f^uⁿ^s^u^ccessf^u^l^cl^ai^m^s^ap^p^{ear i}ⁿ^Unite^d^St^ate^s^v^.^Ogle^,³²⁸^F.^3d¹^82,¹⁸^{5 (}⁵^th^Cⁱ^r^.²⁰⁰³⁾^;^Uⁿ^ite^{d St}^ate^s^v^.
^Bala^{, 2}³⁶^F.^3d⁸⁷^{, 9}³^-⁴⁽²^{d C}ⁱ^r^.²⁰⁰⁰⁾^;^Uⁿⁱ^t^e^d^State^s^v^.^Sprⁱ^ggs^,¹⁰²^F.^3d¹²⁴⁵^,¹²⁶^0-²⁶^{2 (}^D^.C^{. C}ⁱ^r^.¹⁹⁹⁶⁾^.
⁶⁷¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(B)(I);^Uⁿⁱ^t^ed^S^t^a^t^{es v.}^A^d^ef^e^hⁱⁿ^tⁱ^,⁵¹^{0 F}^.³^d³¹⁹^,³²^{2 (}^D^.^C^.^Cⁱ^r^.²⁰⁰⁸⁾^;^Uⁿⁱ^t^e^{d S}^t^at^{es v.}^Da^vi^s^,
⁴³⁰^F.^3d³^45,³⁵^{9 (}⁶^th^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^St^ate^s^v^.^M^agl^uta^,⁴¹^{8 F}^.³^d¹¹⁶⁶^,¹¹⁷³^n.²⁽¹¹^th^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^St^ate^s^v^.^st^th
^Cornie^r-Ortiz^{, 3}⁶¹^F.^3d²⁹^{, 3}⁷⁽¹^Cⁱ^r^.²⁰⁰⁴⁾^;^Unⁱ^t^ed^S^t^a^t^es^v.^F^r^an^k^,³^{54 F.3}^d⁹¹^{0, 91}⁹⁽⁸^Cⁱ^r^.²⁰⁰⁴⁾⁽^“^T^h^e^m^oney^-
^la^unde^rⁱ^ng^s^t^a^t^ute^r^e^q^u^ir^e^d^t^h^e^goverⁿ^m^eⁿ^t^t^o^p^r^o^v^{e t}^h^at^each^o^f^t^h^{e d}^e^f^eⁿ^d^aⁿ^t^{s co}^nd^u^c^t^e^d^o^r^at^t^e^m^p^t^e^d^t^o^co^nd^u^c^t^a
^fⁱⁿ^aⁿ^cⁱ^a^l^t^r^an^sactⁱ^oⁿ^,^kno^wⁱⁿ^g^t^h^at^t^h^e^p^r^op^ert^yⁱⁿ^vo^l^v^edⁱⁿ^t^h^{e t}^r^ansactⁱ^oⁿ^rep^r^esen^t^e^d^t^h^{e pro}^ceed^s^o^f^uⁿ^l^awf^u^l
^actⁱ^vⁱ^t^y^,^an^d^kn^o^wⁱⁿ^{g t}^h^{e t}^r^an^sactⁱ^oⁿ^w^a^{s d}^e^si^gn^ed^t^o^coⁿ^ceal^o^r^dⁱ^sguⁱ^{se t}^h^{e n}^a^t^u^re,^l^o^catⁱ^oⁿ^,^s^o^u^r^ce^,^o^wⁿ^e^rshⁱ^p^,^o^r
^coⁿ^t^rol^o^f^t^h^e^p^r^o^ceed^{s o}^f^t^h^e^uⁿ^l^awf^u^l^actⁱ^vⁱ^t^y”).
⁶⁸^Uⁿ^ite^d^St^ate^s^v^.^Els^o^,⁴²^{2 F}^.³^d¹³⁰⁵^,¹³⁰⁹ⁿ^.^{7 (}¹¹^th^Cⁱ^r^.²⁰⁰⁵⁾^.

property involved in the financial transaction constituted the proceeds of the predicate offense,⁶⁹ ⁷⁰
but there is no requirement that the money launderer also have committed the predicate offense.
The courts have made it clear that conviction for the concealment offense requires proof of ⁷¹
something more than the elements of the predicate offense, and proof of something more than ⁷²
simply spending the proceedings of a predicate offense. A financial transaction that offers
neither the accused nor the property involved any apparent enhanced secrecy protection cannot be ⁷³
said to satisfy the intention to conceal element of the offense. The fact the defendant made no
effort to conceal his identity is no defense, however, when the transactions were intended to ⁷⁴
conceal the nature, location or origin of the property involved. As a general matter, “[e]vidence
that may be considered when determining whether a transaction was designed to conceal
includes: [deceptive] statements by a defendant probative of intent to conceal; unusual secrecy
surrounding the transactions; structuring the transaction to avoid attention; depositing illegal
profits in the bank account of a legitimate business; highly irregular features of the transaction;
using third parties to conceal the real owner; a series of unusual financial moves cumulating in ⁷⁵
the transaction; and expert testimony on practices of criminals.”
The international concealment offense of section 1956(a)(2)(B)(i) penalizes anyone who:
1. A. transports, transmits, or transfers, or
B. attempts to transport, transmit, or transfer
2. a monetary instrument or funds
3. A. from a place in the U.S. to or through a place outside the U.S. or

⁶⁹^Uⁿ^ite^d^St^ate^s^v^.^M^e^din^a^,⁴⁸^{5 F.}³^d¹²⁹¹^,¹³^{00 (}¹¹^th^Cⁱ^r^.²⁰⁰⁷⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^G^a^llar^d^o^{, 49}⁷^F^.^3d⁷²⁷^,⁷³^{7 (}⁷^th^Cir.
²⁰⁰⁷⁾^.
⁷⁰^Uⁿ^ite^d^St^ate^s^v^.^M^agl^uta^{, 4}¹⁸^F.^3d¹¹^66,¹¹⁷⁴⁽¹¹^th^Cⁱ^r^.²⁰⁰⁵⁾⁽^“^T^h^e^g^o^v^e^rⁿ^m^e^{nt did n}^o^t^ha^v^e^{to pr}^ov^e^,^how^e^v^e^r^,
^tha^t^Ma^g^l^uta^c^o^m^m^itte^{d the}^f^e^lony^drug^off^e^ns^e^s^.^A^s^f^a^{r as}^the^m^one^y^la^unde^ring^s^t^a^t^ute^is^c^o^nc^e^r^ne^{d, la}^u^nde^ri^ng
^so^m^e^oⁿ^e^{else’s illeg}^a^{l p}^r^o^ceed^{s is}^ju^{st as b}^a^d^{as lau}ⁿ^d^e^rin^g^y^o^u^r^o^wⁿ^–^th^{ere is}ⁿ^o^h^e^lp^-t^h^y^-n^eig^hbor^e^x^c^e^p^tion^to
^§¹⁹⁵⁶^(a)(1^{)(B) (i)”).}
⁷¹^Uⁿ^ite^d^St^ate^s^v^.^Aw^a^d^a^{, 4}²⁵^F.^3d⁵²^2,⁵²^{4 (}⁸^th^Cⁱ^r^.²⁰⁰⁵⁾⁽^“^T^h^a^t^un^de^r^l^yⁱ^ng^[^s^pe^cⁱ^fⁱ^e^d^unla^w^f^u^{l a}^c^tivity^]^m^u^s^t^be
^s^e^pa^r^a^te^f^r^o^m^the^a^c^t^ua^{l la}^unde^rⁱⁿ^g^;^c^a^s^e^s^w^h^e^r^e^the^a^lle^ga^tions^of^m^oney^la^unde^rⁱ^ng^a^r^e^ba^s^e^{d o}ⁿ^t^h^e^s^a^m^e^tr^aⁿ^s^a^c^tion^th
^c^h^a^r^g^e^{d in the}^pr^e^d^ic^a^t^e^a^c^t^the^r^e^b^y^r^a^is^e^double^je^o^p^a^r^dy^c^onc^e^r^ns^”⁾^;^Uⁿ^ite^{d State}^s^v^.^Se^w^a^r^d^,²⁷²^F^.^3d⁸³^1,⁸³^{6 (}⁷^th
^Cⁱ^r^.²⁰⁰¹⁾^;^Uⁿ^ite^{d State}^s^v^.^Butle^r^,²¹¹^F.^3d⁸²^6,⁸³^{0 (}⁴^Cir.²⁰⁰⁰^).
⁷²^Unⁱ^t^e^d^S^t^a^t^{es v.}^A^d^ef^ehiⁿ^tⁱ^,⁵¹⁰^F^.^3d³¹^9,³²^{2 (}^D^.^C^.^Cⁱ^r^.²⁰⁰⁸⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^S^h^e^par^d^{, 39}⁶^F.^3d¹¹¹^{6, 11}²⁰⁽¹⁰^th
^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^{d State}^s^v^.^Ste^p^h^e^ns^on^,¹⁸³^F.3^d¹¹^0,¹²^{1 (}²^{d C}ⁱ^r^.¹⁹⁹⁹⁾^.
⁷³^Unⁱ^t^e^d^S^t^a^t^{es v.}^B^l^an^ken^shⁱ^p^,³⁸^{2 F.}^3d¹¹¹⁰^,¹¹²^8-¹³^{1 (}¹¹^th^Cⁱ^r^.²⁰⁰⁴⁾^{; c}^f^.,^Unⁱ^t^ed^S^t^a^t^{es v.}^A^d^ef^e^hⁱⁿ^tⁱ^,⁵¹^{0 F}^.³^d
³¹⁹^{, 3}²³^-²⁴^(D^{.C. Cir}^.²⁰⁰⁸^).
⁷⁴^Uⁿ^ite^d^St^ate^s^v^.^Te^r^k^le^{, 3}²⁹^F.3^d¹¹^08,¹¹¹³^-¹¹⁴⁽⁹^th^Cⁱ^r^.²⁰⁰³⁾^.
⁷⁵^Uⁿ^ite^d^St^ate^s^v^.^M^agl^uta^{, 4}¹⁸^F.^3d¹¹^66,¹¹⁷⁶⁽¹¹^th^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^Burⁿ^s^,¹⁶^{2 F}^.³^d⁸⁴⁰^,⁸⁴^8-⁴⁹⁽⁵^th
^Cⁱ^r^.¹⁹⁹⁸⁾^;^Uⁿ^ite^{d S}^t^ate^s^v^.^G^a^r^c^ia-^E^m^a^nue^l^,¹⁴^F.^3d¹⁴⁶⁹^{, 1}⁴⁷⁵^-⁴^{76 (}¹⁰^th^Cⁱ^r^.¹⁹⁹⁴⁾^;^{see a}^l^so^,^Unⁱ^t^ed^S^t^a^t^{es v.}
^A^d^ef^ehⁱⁿ^tⁱ^,⁵¹⁰^F^.³^d³¹⁹^,³²³^(D.^C^{. Cir.}²⁰⁰⁸^)(listⁱⁿ^g^{cases illu}^stra^tin^g^v^a^rio^u^s^d^ecep^tiv^{e d}^e^vⁱ^ces);^Uⁿ^ite^{d State}^s^v^.^th
^She^p^a^r^d^,³⁹⁶^F.3^d¹¹^16,¹¹²²⁽¹⁰^Ci^r.²⁰⁰⁵^)(“Usiⁿ^{g t}^hⁱ^r^d^p^a^rtⁱ^e^s^t^o^con^ceal^t^h^{e real}^o^wⁿ^e^{r su}^pp^o^r^t^s^t^h^{e i}ⁿ^f^e^ren^{ce o}^f^th
^anⁱⁿ^t^e^nt^t^o^dⁱ^sguⁱ^se^o^r^con^cealⁱ^l^l^egal^f^unds^”⁾^;^Unⁱ^t^e^d^St^a^t^{es v.}^B^o^l^d^en^,³²^{5 F.}^3d⁴^71,⁴^{90 (}⁴^Ci^r.²⁰⁰³^)(“t^h^{e creat}ⁱ^oⁿ
^an^d^u^s^e^o^f^sh^am^b^u^sⁱⁿ^{esses i}^s^hⁱ^gh^l^y^rel^e^v^aⁿ^t^t^o^t^h^{e p}^r^o^o^f^o^f^coⁿ^ceal^men^t^m^oⁿ^e^y^l^a^unde^rⁱ^ng^”⁾^.

B. to a place in the U.S. from or through a place outside the U.S.
4. knowing they came from some form of unlawful activity, and
5. knowing the transportation, transmission or transfer is designed to conceal or disguise
A. the nature,
B. location,
C. source,
D. ownership, or
E. control of

6. the proceeds of a specified unlawful activity.⁷⁶

The standard definitions and construction apply to several of the elements of section

1956(a)(2)(B)’s international concealment offense. It is the deceptive laundering of the proceeds ⁷⁷

of state, federal, and foreign predicate offenses that the section proscribes, but only when the ⁷⁸
proceeds come in the form of “a monetary instrument or funds.” There is no consensus over
whether the international money laundering proscriptions of section 1956(a)(2)(B) reach
international transactions that are part a series of related transactions when the deceptive or
evasive transfer in the series is committed entirely either before or after the international ⁷⁹
transfer.
The Supreme Court, however, has made it clear that the concealment proscribed refers to the ⁸⁰
purpose for the transportation not its method. The Court in Cuellar held that evidence that the

⁷⁶¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(2^)(B)(i);^Uⁿⁱ^t^ed^S^t^a^t^{es v.}^Bⁱ^egaⁿ^o^w^ski^,³¹^{3 F}^.^3d²⁶⁴^,²⁷⁹⁽⁵^th^Cⁱ^r^.²⁰⁰²⁾^.
⁷⁷¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^).
⁷⁸¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(2^)(B).
⁷⁹^Co^mp^a^r^e^,^Uⁿ^ite^d^St^ate^s^v^.^K^r^am^e^r^{, 73}^F.3^d¹⁰^67,¹⁰⁷²⁽¹¹^th^Cir.¹⁹⁹^6)(“^the^jury^{. . . f}^o^uⁿ^d^tha^t^G^ilbe^r^{t inte}^nde^d^to
^f^u^rthe^{r the}^la^u^nde^ri^ng^s^c^he^m^e^by^c^a^u^sⁱ^ng^the^traⁿ^s^f^e^r^of^$9.5^m^illio^{n f}^r^om^S^w^itz^e^r^la^{nd to L}^u^x^e^m^bourg^.^T^h^e^jury^,
^how^e^v^e^r^{, a}^l^s^o^f^{ound t}^h^a^t^G^ilbe^r^t^did^no^{t c}^a^u^s^e^the^tr^aⁿ^s^f^e^r^of^this^s^a^m^e^m^oney^f^o^r^m^the^Uⁿ^ite^{d Sta}^t^e^s^{to Sw}^itz^e^r^la^{nd. .}^.
^the^s^t^a^t^ute^doe^sⁿ^o^{t m}^a^k^e^m^oney^l^a^unde^rⁱ^ng^a^c^onti^nui^ng^of^f^e^ns^e^.^{. . T}^h^e^jur^y^f^{ound tha}^t^G^ilbe^r^{t w}^a^s^inv^o^lv^e^dⁱⁿ^oⁿ^ly
^oⁿ^e^t^r^an^sactⁱ^oⁿ^and^t^h^{e t}^r^an^sactⁱ^oⁿ^w^a^{s t}^o^t^a^l^l^y^o^u^t^si^d^e^t^hⁱ^s^c^o^un^t^r^y^.^Becau^{se t}^hⁱ^s^t^r^an^sactⁱ^o^{n i}^s^sep^a^rat^e^f^r^o^m^t^h^{e o}ⁿ^e
^o^rⁱ^gⁱⁿ^atⁱⁿ^{g i}ⁿ^t^h^{e Un}ⁱ^t^e^{d S}^t^at^{es a}ⁿ^d^b^ecau^{se m}^oⁿ^e^y^l^a^unde^rⁱ^ng^isⁿ^o^{t a}^c^o^ntin^ui^ng^of^f^e^ns^e^,^G^ilbe^r^t’^s^c^onv^ic^tion^c^aⁿⁿ^o^t
^be^up^he^ld”⁾^;^w^ith^,^Uⁿ^ite^{d S}^t^ate^s^v^.^H^a^r^rⁱ^s^,⁷⁹^U.^S^.²²³^,²³¹^(2d^Ci^r^.¹⁹⁹⁶^)(“Harri^{s argu}^{es t}^h^at^each^tⁱ^{me t}^h^at^f^unds
^w^e^r^e^sen^t^t^o^S^wⁱ^t^zerl^aⁿ^d^,^t^w^o^t^r^aⁿ^sf^{ers t}^o^o^k^p^l^{ace –}^on^{e f}^r^o^m^Ne^{w Yo}^{rk t}^o^C^oⁿⁿ^ectⁱ^c^u^t^and^t^h^{e o}^t^h^e^{r f}^o^r^m^C^onne^c^tic^ut
^{o Sw}^itz^e^r^la^{nd. H}^a^r^rⁱ^s^m^a^inta^ins^t^h^a^t^{it w}^a^s^the^tr^aⁿ^s^f^e^r^s^of^f^unds^f^r^om^{. . . N}^e^w^Y^o^r^k^{to . .}^{. C}^o^nne^c^tⁱ^c^{ut tha}^t^w^e^r^e
^d^e^si^gn^ed^t^o^coⁿ^ceal^t^h^eⁿ^a^t^u^{re .}^.^.^o^f^t^h^{e f}^unds^.^{. .}^aⁿ^dⁿ^o^{t t}^h^e^tr^aⁿ^s^f^e^r^s^f^r^o^m^C^onne^c^tic^{ut t}^o^Sw^itz^e^r^la^{nd. T}^h^e^r^e^f^or^e^,
^Harri^{s argu}^{es t}^h^at^h^e^sh^ou^l^d^no^t^{have b}^een^coⁿ^vⁱ^c^t^e^d^o^f^vi^o^l^atⁱⁿ^{g §1}⁹⁵⁶⁽^a)(2⁾^.^W^e^dⁱ^{sagree b}^ecau^se^w^e^d^oⁿ^o^tⁱⁿ^t^e^rpret
^the^m^o^v^e^m^e^nts^of^f^unds^f^r^om^New^Y^o^r^k^{to C}^oⁿⁿ^e^c^tic^{ut a}ⁿ^{d t}^h^eⁿ^f^r^om^C^onne^c^tic^{ut t}^o^Sw^itz^e^r^la^{nd a}^s^tw^{o s}^e^pa^r^a^te
^even^t^s^.^W^hⁱ^l^e^t^h^{e sch}^e^m^e^{was i}^m^p^l^em^en^t^e^dⁱⁿ^t^w^o^st^ages,^each^st^a^g^e^w^a^{s an}ⁱⁿ^t^e^gral^p^a^rt^o^f^siⁿ^g^l^e^pl^an^t^o^t^r^an^sf^er
^f^unds^‘^f^r^o^m^a^pl^{ace i}ⁿ^t^h^{e Un}ⁱ^t^e^d^S^t^at^{e t}^o^o^r^t^h^rou^g^h^{a p}^l^{ace ou}^t^sⁱ^d^{e t}^h^{e Un}ⁱ^t^e^{d S}^t^at^es’”);^Uⁿ^ite^{d St}^a^t^e^s^v^.^Dⁱ^ne^r^o
^Exp^r^ess,^In^c.^{, 3}¹³^F.^3d⁸^03,⁸^{07 (}^{2d C}ⁱ^r^.²⁰⁰²⁾⁽^“^a^c^our^s^e^of^c^ond^u^c^{t tha}^t^be^gⁱ^ns^w^{ith a}^s^u^m^of^m^one^y^loc^a^t^e^d^{in one}
^c^ountry^a^{nd e}ⁿ^ds^w^{ith a}^re^la^te^{d s}^u^m^of^m^oney^loc^a^t^e^d^{in a}ⁿ^othe^r^m^a^y^c^ons^titute^a^‘tra^ns^f^e^{r’ f}^o^{r pur}^pos^e^s^of
^§¹⁹⁵⁶^(a)(2^).^T^hⁱ^sⁱ^s^t^r^u^e^w^h^et^h^e^r^o^r^no^t^t^h^{e p}^a^rtⁱ^c^u^l^{ar t}^r^an^sactⁱ^oⁿ^vehⁱ^cl^{e f}^o^{r effect}ⁱⁿ^{g t}^h^{e t}^r^an^sf^{er i}^s^co^m^p^ri^sed^o^f^a
^sⁱ^ng^le^s^t^e^p^or^a^s^e^rⁱ^e^s^{, a}ⁿ^{d w}^h^e^t^he^r^or^not^the^f^uⁿ^d^s^m^o^v^e^dir^e^c^t^l^y^be^tw^e^eⁿ^aⁿ^a^c^c^ount^{in t}^h^e^Uⁿⁱ^t^e^d^Sta^t^e^s^a^nd^one
^ab^ro^ad^”).
⁸⁰^Uⁿ^ite^d^St^ate^s^v^.^C^u^e^l^l^a^r^,¹²^{8 S}^.^C^t^.¹⁹⁹⁴⁽²⁰⁰⁸⁾^.

defendant attempted to smuggle cash out of the United States was insufficient to support a
prosecution for violation of section 1956(a)(2)(B)(i), absent evidence of a design to conceal the ⁸¹
ownership, source, nature or ultimate location of the funds. It made it equally clear, however,
that violations are not limited to those instances where the government can establish that the ⁸²
transportation was intended to create the appearance of legitimate wealth.
A drafting quirk casts something of a cloud over the first knowledge element of the section

1956(a)(2)(B) international transfer offenses (“knowing that the . . . funds involved in the . . . ⁸³

transfer represent the proceeds of some form of unlawful activity”). The statute provides a
specific definition for a similar but slightly different phrase in the financial transaction offenses.
The comparable element in the financial transaction offenses of section 1956(a)(1) refers to ⁸⁴
property in a financial transaction rather than funds transferred. The property phrase (“knowing
that the property in a financial transaction. . .”) is specifically defined so that the defendant need
not know that “unlawful activity” which generates the laundered proceeds constitutes a money
laundering predicate offense, i.e., a “specified unlawful activity;” it is enough that he knows that ⁸⁵
it is a state, federal or foreign felony. At least one court has held that the same definition applies ⁸⁶
to section 1956(a)(2)(B) international offenses notwithstanding the differences in terminology.
The sting concealment offense in section 1956(a)(3)(B) is much like the promotional sting
offense and occurs when an offender:
1. with the intent to conceal or disguise
A. the nature,
B. location,
C. source,
D. ownership, or
E. control of
2. property believed to be the proceeds of a specified unlawful activity
3. A. conducts or

⁸¹^Id^.^a^t²⁰⁰⁶^.
⁸²^Id^.^A^t¹⁹⁹⁸^(no^tⁱⁿ^{g t}^h^at^several^“Co^u^r^t^s^o^f^A^p^p^eal^{s h}^a^{ve co}ⁿ^sⁱ^d^ered^t^hⁱ^s^req^uⁱ^r^em^en^t^{as rel}^e^van^t^o^r^evenⁿ^ecessar^yⁱⁿ
^the^c^onte^x^t^of^{18 U}^.^S^.^C^.¹⁹⁵⁶⁽^a⁾⁹¹⁾⁽^B⁾⁽ⁱ⁾^”⁾^.
⁸³¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(2^)(B)(em^p^h^a^{sis ad}^d^e^d^)).
⁸⁴^“[^K^]^no^wⁱⁿ^g^t^h^at^t^h^e^pr^o^p^e^r^tyⁱⁿ^v^o^l^v^edⁱⁿ^{a f}ⁱⁿ^aⁿ^cⁱ^a^l^t^r^an^sactⁱ^o^{n rep}^r^esen^t^t^h^e^p^r^o^ceed^{s o}^f^so^m^e^f^o^r^m^o^f^uⁿ^l^awf^u^l
^activ^it^y^,^{” 1}⁸^U.S.C.¹⁹⁵⁶^(a)(1^)(e^m^p^h^a^{sis ad}^d^e^d^)).
⁸⁵^“[^T^]^h^e^t^e^rm^‘kn^o^wⁱⁿ^{g t}^h^at^t^h^{e p}^r^o^p^e^rt^yⁱⁿ^vo^l^v^edⁱⁿ^{a f}ⁱⁿ^aⁿ^cⁱ^a^l^t^r^aⁿ^sactⁱ^oⁿ^rep^r^esen^t^s^t^h^{e p}^r^o^ceed^{s o}^f^so^m^e^f^o^r^m^o^f
^uⁿ^l^aw^f^u^l^actⁱ^vⁱ^t^y^’^mean^{s t}^h^at^t^h^e^p^e^rsoⁿ^kn^ew^t^h^{e p}^r^o^p^e^rt^yⁱⁿ^vo^l^v^edⁱⁿ^t^h^{e t}^r^aⁿ^sactⁱ^oⁿ^re^p^r^esen^t^e^d^p^r^o^ceed^{s f}^r^o^m^so^me
^f^o^r^m^{, thoug}^hⁿ^o^{t ne}^c^e^s^s^a^r^ily^w^h^{ich f}^o^r^m^{, of}^a^c^tⁱ^v^it^y^tha^t^c^ons^tit^ute^s^a^f^e^lony^unde^r^Sta^t^e^,^Fe^de^r^a^l,^or^f^o^r^e^ig^{n law}^,
^r^e^g^a^r^d^le^s^s^of^w^h^e^t^he^r^or^no^{t s}^u^c^h^a^c^tiv^it^y^is^s^p^e^cⁱ^fⁱ^e^d^{in pa}^r^a^g^r^a^{ph (}⁷⁾^,^”¹⁸^U^.^S^.^C^.¹⁹⁵⁶⁽^c⁾⁽¹⁾^.
⁸⁶^Uⁿ^ite^d^St^ate^s^v^.^C^a^r^r^{, 25 F.}^{3d 11}^{94, 12}⁰⁴⁽³^d^Cⁱ^r^.¹⁹⁹⁴⁾^.

B. attempts to conduct
3. a financial transaction
4. involving property represented to be
A. the proceeds of specific unlawful activity or
B. property used to conduct or facilitate specified unlawful activity.⁸⁷
For purposes of the concealment element of section 1956(a)(3)(B), exchanging small bills for
larger ones may evidence an intent to conceal the location of the proceeds of a predicate offense ⁸⁸
since a large bill is more easily concealed than the small bills representing an equal amount.
Other indicia of an intent to conceal include (1) “unusual secrecy surrounding the transaction,”
(2) “structuring the transactions to avoid attention,” (3) “depositing illegal funds with a legitimate
enterprise,” (4) “highly irregular features of the transaction,” (5) “using third parties to conceal ⁸⁹
the real owner of the funds,” and (6) “unusual financial moves.”
The sting proscriptions are found on a belief rather than knowledge that the proceeds involved ⁹⁰
have been tainted by their involvement in a predicate offense. Nevertheless, a defendant is still
not free to turn a blind eye to the fact that the proceeds are represented to have a predicate offense ⁹¹
taint.
The “financial transaction” element of the offense demands either transaction that affects
interstate or foreign commerce or a transaction involving the use of a financial institution engaged ⁹²
in or whose activities affect interstate or foreign commerce. To satisfy the “financial institution”
prong of the “financial transaction” element of the offense, the government need only establish
that the transaction involved “the use of a financial institution” with an interstate or foreign ⁹³
commerce nexus not that the institution was itself an integral or essential part of the transaction.
To satisfy the “transaction” prong, the government need only establish a de minimis effect on ⁹⁴
interstate commerce.
The representational element does not require undercover agents to have told the defendant in so
many words that the transaction involves the proceeds of a predicate offense; it is enough that
they “made the defendant aware of circumstances from which a reasonable person would infer ⁹⁵
that the property was [the proceeds of a predicate offense].”

⁸⁷¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(3^)(B).
⁸⁸^Uⁿ^ite^d^St^ate^s^v^.^Far^e^s^e^,²⁴^{8 F}^.³^d¹⁰⁵⁶^,¹⁰⁶⁰⁽¹¹^th^Cⁱ^r^.²⁰⁰¹⁾^.
⁸⁹^Uⁿ^ite^d^St^ate^s^v^.^W^o^lny^,¹³³^F.3^d⁷⁵^8,⁷⁶^0-⁶¹⁽¹⁰^th^Cⁱ^r^.¹⁹⁹⁸⁾^.
⁹⁰^Uⁿ^ite^d^St^ate^s^v^.^N^e^k^t^alov^,⁴⁶¹^F.^3d³⁰^9,³¹^{4 (}²^{d C}ⁱ^r^.²⁰⁰⁶⁾^.
⁹¹^Id^{. a}^t³¹^4-¹⁶^.
⁹²¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(4^).
⁹³^Uⁿ^ite^d^St^ate^s^v^.^O^liv^e^r^os^{, 2}⁷⁵^F.^3d¹²^99,¹³⁰³^-³⁰⁴⁽¹¹^th^Cir.²⁰⁰¹^).
⁹⁴^Uⁿ^ite^d^St^ate^s^v^.^Le^s^lie^{, 1}⁰³^F.^3d¹⁰⁹^3,¹¹⁰⁰⁽²^{d C}ⁱ^r^.¹⁹⁹⁷⁾^.
⁹⁵^Uⁿ^ite^d^St^ate^s^v^.^St^ar^k^e^{, 6}²^F.^3d¹³⁷^4,¹³⁸²⁽¹¹^th^Cⁱ^r^.¹⁹⁹⁵⁾^;^Uni^t^ed^S^t^a^t^{es v.}^Wyd^e^rmyer^{, 51 F.}^3d³¹⁹^{, 3}²⁷^-²⁸⁽²^d
^Cⁱ^r^.¹⁹⁹⁵⁾^;^Uⁿ^ite^d^State^s^v^.^K^a^u^f^m^aⁿ^,⁹⁸^{5 F}^.²^d⁸⁸⁴^,⁸^92-⁹³⁽⁷^th^Cⁱ^r^.¹⁹⁹³⁾^.

Early anti-money laundering efforts sought to enlist the assistance of financial institutions. They ⁹⁶
were to report large cash transactions to the government. To avoid disclosure of their activities,
money launderers sent forth an army of subordinates who scurried from bank to bank where they
engaged in layered or structured transactions so that no single transaction exceeded the threshold ⁹⁷
amount of the financial institution’s reporting requirements. There are three anti-structure
section 1956 offenses (sometimes referred to as “smurfing”): one involving financial institutions, ⁹⁸
one involving international transactions, and one involving stings. The volume of case law,
however, suggests that structuring prosecutions are more often brought under 31 U.S.C. 5324
discussed infra.
The most common of the structuring offenses is that which involves a financial transaction,
section 1956(a)(1)(B)(ii), which forbids:
1. knowing
A. that the property involved in a financial transaction,
B. represents the proceeds of some form of unlawful activity,
2. A. conducts or
B. attempts to conduct
such a financial transaction
3. which in fact involves the proceeds of specified unlawful activity

4. with the intent to avoid a state or federal transaction reporting requirement.⁹⁹

Implicit in the intent element is the obligation of the government to establish that the defendant ¹⁰⁰
knew of the reporting requirements. The structuring offense described in 31 U.S.C. 5324

⁹⁶^P^.^L^.^91-⁵⁰^8,⁸⁴^Sta^t^.¹¹²²⁽¹⁹⁷⁰⁾^{, 3}¹^U^.^S.C^.¹⁰⁵¹^-¹¹²^{2 (}¹⁹^{70 e}^d^.⁾^.
⁹⁷^W^e^lling^,^Sm^ur^fs^{, M}^o^ne^y^La^un^de^rⁱ^ng,^a^nd^the^Fe^de^r^a^{l C}^r^imⁱⁿ^{al L}^a^w^:^The^C^r^im^e^of^Str^u^c^t^urⁱⁿ^{g Tr}^an^s^a^c^tions^{, 41}
^F^LO^R^I^D^A^L^AW^R^EV^I^E^W^287,²⁸^{8 (}¹⁹⁸⁹⁾⁽^“^[^T^]^h^e^g^o^v^e^rⁿ^m^e^nt’^s^opeⁿⁱ^ng^s^a^lv^{o a}^g^aⁱ^ns^{t la}^unde^rⁱ^ng^[^w^a^s^]^a^s^t^a^t^ute^r^e^qu^ir^ing
^fⁱ^na^nc^ia^{l ins}^titutⁱ^oⁿ^s^to^re^por^{t c}^a^s^{h tra}ⁿ^s^a^c^tio^ns^ov^e^r^$^10,⁰⁰^{0 t}^o^t^h^e^g^o^v^e^rnm^e^{nt. T}^o^s^k^{irt this}^la^w^,^la^unde^re^rs^be^g^a^{n to}
^c^ond^uc^{t m}^u^ltiple^c^a^s^{h tra}ⁿ^sa^c^tioⁿ^s^{just be}^l^o^w^the^$1^0,⁰⁰^{0 re}^p^o^rtiⁿ^g^thre^shol^{d. T}^h^e^a^r^m^y^o^f^pe^rsons^w^{ho sc}^urrie^d^f^r^om
^b^aⁿ^k^to^b^aⁿ^k^to^acco^m^p^lish^th^ese^tran^sactioⁿ^s^b^ecam^{e k}ⁿ^o^wⁿ^{as ‘s}^m^u^r^f^{s’ b}^ecau^{se, lik}^{e th}^{eir little b}^l^u^e^carto^oⁿ
^na^m^e^s^a^ke^s^,^they^w^e^r^e^pa^nde^mⁱ^c”)^.
⁹⁸¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(B)(ii),¹⁹⁵⁶^(a)(2^)(B)(ii),^an^d¹⁹⁵⁶^(a)(3^)(C)^resp^ectiv^el^y^.
⁹⁹¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(B)(ii);^Unⁱ^t^ed^S^t^a^t^{es v.}^B^o^wm^aⁿ^,²^{35 F.3}^d¹¹^{13, 11}¹⁷⁽⁸^th^Cⁱ^r^.²⁰⁰⁰⁾^;^Unite^{d S}^t^ate^s^v^.^M^o^rale^s^,
¹⁰⁸^F^.³^d¹²¹³^,¹²²¹⁽¹⁰^th^Cⁱ^r^.¹⁹⁹⁷⁾^.
¹⁰⁰^Uⁿ^ite^d^St^ate^s^v^.^Bow^m^an^,²³⁵^F.^{3d a}^t¹¹¹⁸^.

requires the government to show that the accused knew that his layering of transactions was ¹⁰¹¹⁰²
unlawful, section 1956(a)(1)(B)(ii) does not.
The statutory definitions apply equally to the elements of the section 1956(a)(1)(B)(ii) structuring
offense. The phrase “knowing that the property involved in a financial transaction represents the
proceeds of some form of unlawful activity” means that the offender must know that the proceeds
are derived from some violation of state, federal or foreign law, but need not know they come ¹⁰³¹⁰⁴
from a predicate offense. “Conducts” includes the initiation or participation in a transaction.
The required “financial transaction” is any disposition that either affects interstate or foreign
commerce or involves either a financial institution engaged in, or whose activities affect, ¹⁰⁵
interstate or foreign commerce. The “specified unlawful activities” must in fact have produced
the proceeds involved in the transaction are the same state, federal and foreign predicate offenses ¹⁰⁶
that trigger liability for other offenses in section 1956.
The international smurfing offense of section 1956(a)(2)(B)(ii) is unusual in that it does not
require the presence of proceeds of a specified unlawful activity. It penalizes anyone who:
1. A. transports, transmits, or transfers, or
B. attempts to transport, transmit, or transfer
2. a monetary instrument or funds
3. A. from a place in the U.S. to or through a place outside the U.S. or
B. to a place in the U.S. from or through a place outside the U.S.
4. knowing they represent the proceeds from some form of unlawful activity, and

5. knowing the transportation, transmission or transfer is designed to avoid a state or federal ¹⁰⁷

transaction reporting requirement.
The unlawful activity that generates the proceeds that are the subject of the offense apparently is ¹⁰⁸
any felonious violation of state, federal or foreign law and need not be a predicate offense.

¹⁰¹^Ratzl^a^{f v}^.^Uⁿ^ite^d^Sta^t^e^s^{, 5}^{10 U}^.^S^.¹³^5,¹³^{7 (}¹⁹⁹⁴⁾^.
¹⁰²^Uⁿ^ite^d^St^ate^s^v^.^S^ant^os^{, 20 F.3}^d²⁸⁰^,²⁸³^n.²⁽⁷^th^Cⁱ^r^.¹⁹⁹⁴⁾^.
¹⁰³¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(1⁾
¹⁰⁴¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(2^).
¹⁰⁵¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(3^),(⁴^).
¹⁰⁶¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^).
¹⁰⁷¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(2^)(B)(ii);^Unⁱ^t^ed^S^t^a^t^{es v.}^Mo^ra^l^e^s^,¹⁰^{8 F}^.³^d¹²^13,¹²²¹⁽¹⁰^th^Cⁱ^r^.¹⁹⁹⁷⁾^.
¹⁰⁸¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(1^);^Uⁿ^ite^d^St^a^t^e^s^v^.^Ortiz^{, 73}^{8 F}^.^Su^pp^{. 1}³⁹⁴^,¹³^{99 (}^S^.D^.Fla^.¹⁹⁹⁰⁾⁽^“^T^h^is^de^fⁱ^niti^on^[¹⁸^U^.^S.C^.
¹⁹⁵⁶⁽^c)(1⁾^]^su^ggest^{s t}^h^at^t^h^{e st}^at^ut^{e i}^s^ap^p^lⁱ^cab^l^e^t^o^t^h^{e t}^r^an^s^p^o^r^t^a^tⁱ^oⁿ^o^f^t^h^{e p}^r^o^ceed^{s o}^f^an^y^f^e^l^oⁿⁱ^ou^{s act}ⁱ^vⁱ^t^y^w^h^ere
^t^h^{e d}^e^f^eⁿ^d^aⁿ^t^h^a^{s kn}^o^w^l^e^d^g^{e t}^h^at^t^h^{e p}^r^o^ceed^{s are d}^e^ri^ved^f^r^o^m^f^e^l^oⁿⁱ^o^u^s^actⁱ^vⁱ^t^y^”).

The sting structuring provision has a predicate offense element:
1. with the intent to avoid a state of federal transaction reporting requirement
2. A. conducts or
B. attempts to conduct
3. a financial transaction
4. involving property represented to be
A. the proceeds of specific unlawful activity or
B. property used to conduct or facilitate specified unlawful activity.¹⁰⁹
The representation element may be satisfied by “hints” from undercover officers that the property
involved in the transaction comes from a predicate offense; the officers need not have said so in ¹¹⁰
so many words.
The tax evasion money laundering offense must be tethered to a financial transaction, 18 U.S.C.

1956(a)(1)(A)(ii); there is no international or undercover counterpart.

Money laundering for tax evasion purposes occurs whenever a person:
1. knowing
A. that the property involved in a financial transaction,
B. represents the proceeds of some form of unlawful activity,
2. A. conducts or
B. attempts to conduct
such a financial transaction

¹⁰⁹¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(3^)(C);^Uⁿ^ite^d^State^s^v^.^N^e^ls^oⁿ^,⁶⁶^F.^3d¹⁰³⁶^{, 1}⁰⁴⁰⁽⁹^th^Cⁱ^r^.¹⁹⁹⁵⁾⁽^“^T^o^pr^ov^e^a^vⁱ^ola^tio^{n of}^th^is
^s^e^c^{tion, t}^h^e^g^o^v^e^rⁿ^m^e^nt^m^u^s^t^pr^o^v^e⁽¹⁾^tha^t^t^h^e^de^f^e^nda^{nt c}^o^nd^uc^te^{d or}^a^tte^m^p^te^{d to c}^o^nd^uc^{t a}^fⁱ^naⁿ^c^ia^{l tr}^aⁿ^s^a^c^{tion, (}²⁾
^w^{ith the}^inte^{nt t}^o^a^v^{oid a}^tr^aⁿ^s^a^c^{tion r}^e^p^o^r^tⁱⁿ^g^r^e^quir^e^m^e^nt,^an^{d (3}⁾^t^h^at^t^h^e^p^r^op^ert^yⁱⁿ^vo^l^v^edⁱⁿ^t^h^{e t}^r^an^sactⁱ^oⁿ^w^a^s
^rep^r^esen^t^e^d^b^y^{a l}^a^w^en^f^o^rce^m^en^t^o^f^fⁱ^c^e^{r t}^o^b^e^t^h^{e p}^r^o^ceed^{s o}^f^sp^eci^fⁱ^ed^uⁿ^l^aw^f^u^l^actⁱ^vⁱ^t^y”);^Uⁿ^ite^d^State^s^v^.^Br^e^q^ue^,^th
⁹⁶⁴^F.^2d³^81,³⁸^6-^{87 (}⁵^{Cir. 1}⁹^92).
¹¹⁰^Uⁿ^ite^d^St^ate^s^v^.^N^e^ls^on^,⁶⁶^F^.^3d^at¹⁰⁴¹^(ci^tⁱⁿ^{g o}^t^h^e^{r rep}^r^esen^t^a^tⁱ^on^{cases t}^o^t^h^{e sam}^e^e^f^f^ect^).

3. which in fact involves the proceeds of specified unlawful activity

4. with the intent to engage in conduct in violation of 26 U.S.C. 7201 (attempt to evade or defeat ¹¹¹

tax) or 7206 (tax fraud or false tax statements).
A tax evasion, laundering prosecution requires the government to show that the defendant acted
intentionally rather than inadvertently, but not that the defendant knew that his conduct violated ¹¹²
the tax laws.
Each of the ten criminal proscriptions found in section 1956 outlaws both the completed offense ¹¹³
and the attempt to commit it. Attempt adds an additional feature to the underlying offense, the
government must establish that the defendant’s action constituted a “substantial step” towards the ¹¹⁴
commission of a completed offense.
Conspiracy to commit a federal crime is a separate federal offense punishable by imprisonment
for not more than five years, 18 U.S.C. 371. In addition, section 1956(h) declares that, “[a]ny
person who conspires to commit any offense defined in this section or section 1957 shall be
subject to the same penalties as those prescribed for the offense the commission of which was the ¹¹⁵
object of the conspiracy.” Although a casual reading might indicate that section 1956(h) simply
changes the penalty for a section 371 conspiracy to violate section 1956 to match the other ¹¹⁶
penalties for violation section 1956, section 1956(h) in fact creates a separate crime. The
distinction matters because violation of section 371 is not complete until one of the conspirators ¹¹⁷
commits an overt act in furtherance of the scheme; section 1956(h) has no such overt act ¹¹⁸
requirement. Conspiracy to violate section 1956 carries with it the prospect of liability for any ¹¹⁹
foreseeable offenses committed by coconspirators in furtherance of the scheme.

¹¹¹¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(A^)(ii);^Uⁿ^it^e^d^St^ate^s^v^.^Z^aⁿ^ghi^,¹^{89 F.3}^d^71,⁷⁷⁽¹^st^Cⁱ^r^.¹⁹⁹⁹⁾^.
¹¹²^Id^.^a^t^77-^8.
¹¹³^“^W^hoe^v^e^r^,^c^onduc^ts^or^a^tte^m^p^ts^{to c}^o^nd^uc^{t s}^u^c^h^a^fⁱ^na^nc^ia^{l tr}^aⁿ^s^a^c^tion^{. .}^.”¹⁸^U^.^S.C^.¹⁹⁵⁶⁽^a⁾⁽¹⁾^;^“^W^hoe^v^e^r^{. .}
^.tra^ns^f^e^rs^{or a}^tte^m^p^ts^{to .}^{. .}^traⁿ^s^f^e^r^a^m^one^ta^r^y^ins^t^rum^e^{nt . .}^.”¹⁸^U^.^S.C.¹⁹^56(a⁾⁽²⁾^;^“^W^hoe^v^e^{r . . .}^c^ond^uc^ts^or
^a^tte^m^p^{ts to c}^o^nd^uc^{t a}^fⁱ^na^nc^ia^{l tra}ⁿ^sa^c^{tion i}ⁿ^v^o^lv^ing^pr^o^p^e^r^ty^re^pre^s^eⁿ^te^{d to}^be^.^{. .”}^{18 U}^.^S.C.¹⁹⁵⁶⁽^a^)(3).
¹¹⁴^Uⁿ^ite^d^St^ate^s^v^.^C^h^oy^,³⁰^{9 F}^.³^d⁶⁰²^,⁶⁰^{5 (}⁹^th^Cⁱ^r^.²⁰⁰²⁾⁽^a^tte^m^p^{t t}^o^c^o^m^m^{it pr}^om^otiona^{l m}^one^y^la^unde^rⁱ^ngⁱⁿ
^vⁱ^ola^tion^of^s^e^c^tion¹⁹⁵⁶⁽^a⁾⁽¹⁾⁽^A⁾⁽ⁱ⁾⁾^;^Unⁱ^t^e^{d S}^t^a^t^{es v.}^B^a^rn^es^,²³⁰^F.3^d³¹¹^,³^14-¹⁵⁽⁷^th^Cir.²⁰^00)(a^tte^m^p^{t to c}^o^m^m^it
^coⁿ^ceal^men^t^m^oⁿ^e^y^l^a^unde^rⁱ^ng^w^{ith a}ⁿ^u^nde^r^c^ov^e^r^of^fⁱ^c^e^r^{in v}ⁱ^ola^tion^of^s^e^c^{tion 1}⁹⁵⁶⁽^a⁾⁽³⁾⁽^B⁾⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^th
^Nelsoⁿ^{, 66 F.3}^d¹⁰^36,¹⁰⁴²^-⁴⁴⁽⁹^Cⁱ^r^.¹⁹⁹⁵⁾⁽^a^tte^m^p^{t to c}^o^m^m^{it av}^oiding^r^e^p^o^r^tⁱⁿ^g^r^e^quir^e^m^e^nts^w^{ith a}ⁿ^u^nde^r^c^ov^e^r
^of^fⁱ^c^e^r^{in v}ⁱ^ola^tio^{n of}^s^e^c^tion¹⁹⁵⁶⁽^a⁾⁽³⁾⁽^C⁾⁾^.
¹¹⁵^“^T^{o pr}^ov^e^a^c^ons^pi^r^a^cy^{to la}^un^de^r^m^oney^,^the^g^o^v^e^rⁿ^m^e^{nt m}^u^s^t^de^m^ons^tr^a^t^e^tha^t^the^de^f^e^nda^{nt w}^a^s^k^now^ing^l^y
^inv^o^lv^e^d^w^{ith tw}^{o or}^m^o^r^e^pe^o^p^le^f^o^r^the^p^u^r^p^os^e^of^m^oney^la^unde^rⁱ^ng^a^nd^tha^t^t^h^e^kⁿ^e^w^the^pr^o^{ceeds u}^s^ed^t^o^f^u^rt^h^e^r^th
^the^sc^he^m^e^we^re^de^riv^e^{d f}^r^o^m^aⁿ^ille^g^a^{l a}^c^tiv^it^y^,^”^Uⁿ^ite^{d State}^s^v^.^Turⁿ^e^r^,⁴⁰^{0 F.}^3d⁴^91,⁴^{96 (}⁷^Cⁱ^r^.²⁰⁰⁵⁾^;^Unⁱ^t^ed^th
^S^t^a^t^{es v.}^Greenⁱ^d^g^e^,⁴⁹^{5 F.}^3d⁸⁵^,¹⁰⁰⁽⁴^Cⁱ^r^.²⁰⁰⁷⁾^.
¹¹⁶^W^h^itfie^ld^v^.^Unite^{d St}^ate^s^{, 54}³^U^.^{S. 20}^{9, 21}^4-¹⁸⁽²⁰⁰⁵⁾^.
¹¹⁷^“^I^f^t^w^{o or}^m^o^r^e^pe^r^s^ons^c^o^ns^pir^e^e^ithe^r^to^c^o^m^m^{it a}ⁿ^y^of^f^e^ns^e^ag^ains^{t t}^h^e^Uⁿ^ite^d^Sta^t^e^s^{, or}^to^de^f^r^a^{ud t}^h^e^Uⁿⁱ^t^e^d
^S^t^at^es,^o^r^an^y^agen^c^y^t^h^ereo^fⁱⁿ^aⁿ^y^m^aⁿⁿ^e^{r o}^r^f^o^{r an}^y^p^u^r^p^o^s^e,^an^{d o}ⁿ^e^or^m^o^r^e^{of s}^u^c^h^pe^r^s^ons^d^o^any^ac^t^{to e}^f^fe^c^t
^t^h^{e ob}^j^ect^o^f^t^h^{e con}^s^pⁱ^r^a^cy^{, each}^sh^{all b}^e^fⁱⁿ^e^d^uⁿ^d^e^{r th}^is^title^o^rⁱ^m^p^r^isoⁿ^e^dⁿ^o^{t m}^o^{re th}^an^fⁱ^v^e^y^e^a^r^{s, o}^r^b^o^t^h^.^.^{. .”}¹⁸
^U^.^S.C^.³⁷^{1 (}^e^m^pha^sⁱ^s^a^dde^d)^.
¹¹⁸^W^h^itfie^ld^v^.^Unite^{d St}^ate^s^,⁵⁴^{3 U}^.^{S. a}^t²¹^{9 (}²⁰⁰⁵⁾^.
¹¹⁹^Unite^d^Sa^te^{s v}^.^Ale^rre^{, 43}^{0 F}^.³^d⁶⁸¹^{, 6}⁹⁵⁽⁴^th^Cⁱ^r^.²⁰⁰⁵⁾^;^Unite^{d S}^t^ate^s^v^.^M^o^re^lan^d^{, 50}^{9 F.3}^d¹²⁰¹^,¹²^{17 (}⁹^th^Cir.
²⁰⁰⁷⁾^.

The confluence of the language of section 1956(h) and that of the substantive offenses in section
1956 each of which contain an attempt component raises the interesting possibility of a
prosecution of conspiracy to attempt a violation of one of the substantive offenses. Although the
case law is sparse, the courts appear to have acknowledged that “conspiracy to attempt” may ¹²⁰
constitute an indictable offense both as a general matter and in the case of section 1956. The
cases, however, do not discuss the offense’s precise elements. Attempt ordinarily requires proof of
a substantial step towards the completion of the underlying offense; conspiracy to attempt
whether in the absence of an overt act requirement or not presumably requires something less.
As a general matter, anyone who commands, counsels, or aids and abets the commission of a ¹²¹
federal crime by another is equally culpable and equally punishable. “In order to aid and abet
another to commit a crime it is necessary that a defendant in some sort associated himself with
the venture, that he participated in it as in something that he wishes to bring about, that he seek by ¹²²
his action to make it succeed.”
Prison terms, fines, civil penalties, and confiscation may follow as a consequence of conviction of
a money laundering offense.
Any violation of section 1956 is punishable by imprisonment for not more than 20 years.¹²³ The
first sentencing guidelines reflected the fact that section 1956 was a 20 year felony and the
anticipation that the section would apply primarily in cases in which drug trafficking and ¹²⁴
organized crime offenses were the predicate offenses. Thereafter the Sentence Commission
became concerned about the application of the initial guidelines in cases involving less severely ¹²⁵¹²⁶
punished predicate offenses such a mail fraud. Subsequent amendments to the guidelines and ¹²⁷
penalty increases in some of the predicate offenses address that concern. Under the sentencing

¹²⁰^Uⁿ^ite^d^St^ate^s^v^.^M^o^w^a^d^,⁶⁴^{1 F.}²^d¹⁰⁶⁷^,¹⁰^74-⁷⁵⁽²^{d Cir.}¹⁹^81)(c^onspira^c^y^{to a}^tte^m^p^{t to e}^x^{port a}^fⁱ^re^a^r^m^ille^g^a^ll^y
^{in v}ⁱ^ola^tⁱ^on^of¹⁸^U^.^S.C^.³^{71 a}^nd^{22 U}^.^S.C^.²⁷⁷⁸⁾^;^Uⁿ^ite^{d S}^t^ate^s^v^.^C^l^ay^{, 4}⁹⁵^F.^2d⁷⁰^0,⁷¹^{0 (}⁷^th^Cir.¹⁹⁷⁴^)(coⁿ^sp^iracy
^{to a}^tte^m^p^{t to}^bur^g^l^a^r^iz^e^a^f^e^de^r^a^ll^y^ins^u^r^e^{d ba}^nkⁱⁿ^vⁱ^ola^tioⁿ^of¹⁸^U^.^S.C^.³⁷^{1 a}ⁿ^{d 2}¹¹³⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^Sie^r^r^a^-
^Ga^rcia^,⁷⁶⁰^F.^Su^pp.²^52,²^{58 (}^E^.^D^.N^.Y^{. 19}⁹¹⁾⁽^c^ons^pir^a^c^y^{to a}^tte^m^p^t^m^oney^la^unde^rⁱ^ngⁱⁿ^vⁱ^ola^tⁱ^o^{n of}¹⁸^U^.^S.C^.³⁷¹
^an^d¹⁹⁵⁶⁾^.
¹²¹¹⁸^U^.^S^.^C.²^{(“(a) W}^h^o^e^{ver co}^mmⁱ^t^s^an^o^f^f^eⁿ^s^{e a}^g^aiⁿ^s^t^t^h^{e Un}ⁱ^t^e^{d S}^t^at^{es o}^r^ai^d^s^,^ab^et^s,^couⁿ^s^el^s,^c^o^mman^d^s^,
^ind^u^c^e^s^{or pr}^oc^ure^s^{its c}^o^m^mⁱ^ssioⁿ^{, is}^pu^nisha^b^le^a^s^a^princⁱ^pa^{l. (}^b⁾^W^hoe^v^e^r^w^illf^ull^y^c^a^u^se^{s a}ⁿ^a^c^t^t^o^be^do^ne^w^h^ic^h
^if^dir^e^c^t^l^y^pe^r^f^or^m^e^{d b}^y^him^or^a^not^he^r^w^ould^be^aⁿ^of^f^e^ns^e^a^g^aⁱⁿ^s^{t the}^Uⁿ^ite^{d Sta}^t^e^s^{, is}^pu^nis^h^a^b^le^a^s^a^pr^incⁱ^pa^l”⁾^.
¹²²^Nye^&^Ni^ss^en^v.^Unⁱ^t^e^d^S^t^at^es^{, 3}^{36 U}^.^S.⁶¹^3,⁶¹^{9 (}¹⁹⁴⁹⁾^;^se^e^als^o^{, Unite}^d^St^ate^s^v^.^Griffiⁿ^,³²^{4 F.}³^d³^30,³^{57 (}⁵^th
^Cⁱ^r^.²⁰⁰³⁾^.
¹²³¹⁸^U^.^S^.^C^.¹⁹⁵⁶⁽^a⁾^.
¹²⁴^U^.^S.S.G^.^§²^S¹^.1,¹⁸^U^.^S^.^C^.^A^.^A^pp.⁽¹⁹⁹⁶⁾^{. T}^h^e^s^e^nteⁿ^cⁱ^ng^g^uⁱ^d^e^l^ine^s^w^e^r^e^or^ig^ina^l^l^y^c^ons^ide^r^e^d^bⁱ^ndi^ng^{, 1}⁸
^U^.^S.C^.³⁵⁵³⁽^b)⁽¹⁾^,^b^u^t^now^only^g^u^ide^the^c^o^ur^t’^s^s^e^nteⁿ^cⁱ^ng^dis^c^r^e^tion,^Unⁱ^t^e^{d S}^t^a^t^{es v.}^B^o^o^ker^{, 5}⁴³^U^.^S.²^20,²^58-⁵⁹
⁽²⁰⁰⁵⁾^.
¹²⁵^Uⁿ^ite^d^Sta^t^e^s^Se^nteⁿ^cⁱ^ng^C^o^m^mⁱ^s^sⁱ^on,^Re^por^t^{to t}^h^e^C^o^ngr^e^s^s^:^Se^nteⁿ^cⁱⁿ^g^P^o^lic^y^for^M^o^ne^y^La^un^d^e^rⁱ^{ng O}^ffe^ns^e^s^,
^Iⁿ^c^l^udⁱⁿ^{g C}^o^m^m^e^nts^on^D^e^par^tm^eⁿ^{t of}^J^u^s^tic^e^Re^por^t⁽^S^e^p^te^m^b^e^r¹⁸¹⁹⁹⁷⁾^{, a}^v^a^ila^ble^on^J^u^ly^{9, 2}⁰⁰⁸^a^t
^h^ttp^:^//www^.^u^ssc.^g^o^v^/^r_^con^g^ress/LA^UNDER.^P^D^F^.
¹²⁶^U.S.S.G^.^§²^S¹^.1,¹⁸^U.S^.^C.A^.^App.⁽²⁰⁰^{7 &}²⁰⁰⁸^S^u^p^p^{.); a}^l^s^o^a^v^a^ila^ble^on^July^{9, 2}⁰⁰⁸^a^t^http^://w^ww^.ussc^.^g^ov^/
²⁰⁰^7g^ui^de^/^g^l2007.^pdf^(pa^r^a^lle^{l c}ⁱ^ta^tions^t^o^t^h^e^g^u^ide^lⁱⁿ^e^s^om^itte^{d h}^e^re^af^te^r).
¹²⁷^Ma^{il f}^r^a^{ud o}ⁿ^c^e^a^fⁱ^v^e^y^e^a^r^f^e^lony^{, 18 U}^.^S.C^.¹³⁴¹⁽²⁰⁰^{0 e}^d^.)^{, is}ⁿ^o^w^punis^h^a^b^le^by^im^pr^is^onm^eⁿ^{t f}^o^rⁿ^o^{t m}^o^r^e^thaⁿ
⁽^c^onti^nue^d.^..)

guidelines, many offenders will be ineligible for a sentence of probation even a part of a split ¹²⁸
sentence. Where probation is available and imposed, the term must be not less than 1 nor more ¹²⁹
than five years. If imprisoned, offenders may also be subject a term of supervised released of ¹³⁰
up to three years to be served upon their release from prison.
Violations of section 1956(a)(1) and (a)(2), the financial institution and interstate or foreign
transmission offenses, are punishable by a fine of no more than the greater of $500,000 or twice ¹³¹
the value of the property involved in the offense. Sting violations are punishable by a fine of
not more than the greater of $250,000 ($500,000 for an organization) or twice of amount involved ¹³²
in the offense. Violators of any provisions of section 1956 are subject to a civil penalty of no ¹³³
more than the greater of $10,000 or the value of the property involved in the offense.
Forfeiture is the confiscation of property to the government as a consequence of the property’s ¹³⁴
proximity to some form of criminal activity. The government’s claim to the property can be
secured by default or through judicial proceedings conducted either civilly and ordinarily in rem ¹³⁵
(against the property itself) or as part of the criminal proceedings against the property owner.
The proceeds of a confiscation are generally shared among the law enforcement agencies that ¹³⁶
participate in the investigation and prosecution of the forfeiture.
Section 1956 provides a vehicle for civil or criminal confiscation in two very distinct ways. First,
the “proceeds” of any section 1956 predicate offense (and any property traceable to such

^(...c^on^tin^ue^d)
^{20 y}^e^a^r^s^,^{18 U}^.^S.C^.¹³⁴¹^.
¹²⁸^O^f^f^e^nde^r^s^c^onv^ic^te^{d of}^aⁿ^of^f^e^nse^c^a^r^r^y^ing^a^m^a^xⁱ^m^u^m^pe^na^lty^o^f^{25 y}^e^a^r^s^or^m^o^r^e^a^r^e^ine^lig^ible^f^o^r^pr^o^b^a^tioⁿ^by
^s^t^a^t^ute^,¹⁸^U^.^S^.^C^.³⁵⁶¹⁽^a⁾⁽¹⁾^,³⁵⁸¹⁽^b⁾^.^U^nde^r^the^g^uⁱ^d^e^line^s^e^v^eⁿ^a^fⁱ^r^s^{t ti}^m^e^of^f^e^nde^r^w^hos^e^of^f^e^ns^e^le^v^e^{l is}^m^o^r^e^thaⁿ
^{10 is}^ine^lig^ible^f^o^r^pro^b^a^tio^{n a}ⁿ^d^a^fⁱ^rst^ti^m^e^off^e^nde^r^w^hose^of^fe^nse^le^v^e^{l is 9 or}¹⁰^{is o}ⁿ^ly^e^lig^ible^a^s^pa^{rt of}^a^split
^s^e^nteⁿ^c^e^tha^t^pr^ov^ide^s^f^o^r^s^o^m^e^pe^rⁱ^od^of^c^onf^ine^m^eⁿ^{t, U}^.^S.S^.^G^.^§5B^1.^{1, Se}^nteⁿ^cⁱ^ng^T^a^ble^.^O^f^f^e^nde^r^s^w^{ith a}^c^rⁱ^m^ina^l
^r^e^c^o^r^d^aⁿ^d^aⁿ^of^f^e^ns^e^le^v^e^{l of}^{6 or}^m^o^r^e^a^r^e^only^e^lig^ible^f^o^r^pr^o^b^a^{tion a}^s^pa^r^t^of^a^s^p^lit^s^e^nteⁿ^c^e^aⁿ^d^only^{to a}^lim^ite^d
^e^x^te^{nt ba}^s^e^{d up}^on^theⁱ^r^of^f^e^ns^e^lev^e^{l (}^l^e^v^e^l^{9 a}^{nd be}^l^o^w^only⁾^a^{nd c}^r^im^ina^l^r^e^c^o^r^d^{. T}^h^e^m^oney^la^unde^rⁱ^ng^s^e^nteⁿ^cⁱ^ng
^guⁱ^d^elⁱⁿ^{e cal}^l^s^f^o^{r a b}^a^{se o}^f^f^eⁿ^s^e^l^e^vel^eq^u^a^l^t^o^t^h^at^o^f^t^h^e^p^r^edⁱ^cat^e^o^f^fen^s^{e i}^f^as^cert^aⁱⁿ^ab^l^e^o^r^o^t^h^e^rwi^s^{e a b}^a^{se o}^f^f^eⁿ^s^e
^le^v^e^{l of}^{8; the}^ba^s^e^of^f^e^ns^e^le^ve^{l is}^inc^r^e^a^s^e^d^by^{2 le}^v^e^ls^f^o^r^a^vⁱ^ola^tion^of^s^e^c^{tion 1}⁹⁵⁶^aⁿ^{d a}ⁿ^ot^he^r²^le^v^e^lsⁱ^f^of^f^e^ns^e
^inv^o^lv^e^d^s^o^phis^tic^a^t^e^d^la^un^de^rⁱ^ng^{, U}^.^S.S^.^G^.^§2S^1.1^.^M^o^s^t^fⁱ^v^e^y^e^a^r^f^e^lonie^s^c^a^r^r^y^a^ba^s^e^of^f^e^ns^e^le^v^e^{l of}^{8 or}^m^o^r^e^,
^e^.^g^{., U}^.^S.S.G^.^§²^b⁵^.3⁽^b^a^s^e^of^f^e^nse^le^v^e^{l of}⁸⁾⁽^c^rⁱ^mⁱ^na^{l c}^opy^rⁱ^g^h^{t inf}^r^ing^e^m^e^nt)^,^§2H³^.^{1 (}^b^a^s^e^of^f^eⁿ^s^e^le^v^e^{l of}⁹⁾
^(wⁱ^r^et^ap^pⁱⁿ^g^).^M^aⁿ^y^sectⁱ^oⁿ¹⁹⁵⁶^p^r^edⁱ^cat^{e o}^f^f^eⁿ^s^{es c}^a^rr^y^a^m^a^xi^mu^m^p^eⁿ^a^l^t^y^o^f^at^l^east^fⁱ^ve^years,^e.^g.^,¹⁸^U^.^S^.^C.
¹³⁴^{3 (}^w^ir^e^f^r^a^{ud: 20}^y^e^a^r^s⁾^{, 641}⁽^t^he^f^t^of^m^o^r^e^thaⁿ^$¹⁰⁰⁰^{in f}^e^de^r^a^{l pr}^o^p^e^r^ty^{: 10 y}^e^a^r^s⁾^{; 201}⁽^b^rⁱ^be^r^y^o^f^f^e^de^r^a^l
^o^f^fⁱ^ci^al^s:¹⁵^y^ears).
¹²⁹¹⁸^U^.^S.C.³⁵⁶¹^(c)(1^).
¹³⁰¹⁸^U^.^S^.^C^.³⁵⁸³^.
¹³¹¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^{), (a)(}²⁾^.
¹³²¹⁸^U^.^S^.^C^.¹⁹⁵⁶⁽^a⁾⁽³⁾^,³⁵⁷¹^,³⁵⁸¹^.
¹³³^{18 U}^.^S.C^.¹⁹⁵⁶⁽^b⁾⁽¹⁾^.
¹³⁴^Se^e^ge^ne^r^a^lly^,^C^R^S^R^e^p^o^r^t^97-¹³^9,^Cri^m^{e an}^d^F^o^rf^ei^t^u^re^,^b^y^Ch^arl^e^{s Do}^y^l^e.
¹³⁵^E.g^{., 2}¹^U.^S.C.⁸⁸^1,⁸⁵^{3 (re}^la^tin^g^{to the}^cⁱ^v^{il a}ⁿ^{d c}^r^im^ina^l^c^onf^isc^a^tion^of^c^e^r^ta^{in pro}^p^e^r^ty^a^ssocⁱ^a^t^e^d^w^{ith v}ⁱ^ola^tio^ns
^of^the^Con^t^rolle^{d S}^ubsta^nc^e^s^A^c^t)^.
¹³⁶^{18 U}^.^S.C^.⁹⁸¹⁽^e⁾^,⁹⁸²⁽^b)^{; 2}¹^U^.^S^.^C^.⁸⁸¹⁽^e⁾^,⁸⁵³⁽ⁱ⁾⁽⁴⁾^;^{19 U}^.^S.C^.¹^616a^.

proceeds) are subject to confiscation without the necessity of any actual violation of section ¹³⁷
1956. This permits the confiscation of property derived from crimes that might form the basis
for a money laundering offense without having to prove that a money laundering offense
occurred. Second, property “involved” in a section 1956 money laundering offense (or property ¹³⁸
traceable to such involved property) may be confiscated. Involved property obviously includes
more than the proceeds of the predicate offense since the proceeds are separately forfeitable
already. In theory, it might include both sides of a transaction, the proceeds from the predicate
offense and the cashier’s check, real estate, jewelry, or sports car purchased with the proceeds in a
laundering transaction. In practice, however, involved property has been construed to mean
untainted property joined with the proceeds of a predicate offense as part of the laundering ¹³⁹
transaction. Property acquired in exchange for the proceeds or for the proceeds and other
involved property is forfeitable as traceable property, but the government may confiscate the ¹⁴⁰
property on either side of the transaction but not the property on both sides.
The Eighth Amendment prohibits excessive fines. Fines are excessive if they are grossly ¹⁴¹
disproportionate to the gravity of the offender’s misconduct. While the excessive fines clause
may impose limits upon the permissible extent of the confiscation for failure to comply with anti-¹⁴²
money laundering reporting statutes, forfeitures under section 1956 are not ordinarily ¹⁴³
considered excessive because of the gravity of the offense and its predicate offenses.

¹³⁷^“^T^he^f^o^llowⁱ^ng^pr^ope^r^t^y^is^s^ubje^c^t^{to f}^o^r^f^e^itur^e^{to t}^h^e^Uⁿ^ite^d^Sta^t^e^s^{. . . (}^C⁾^Aⁿ^y^pr^ope^r^t^y^,^r^e^a^l^or^pe^r^s^ona^{l w}^h^ic^h
^coⁿ^s^titu^{tes o}^r^is^d^e^riv^e^d^f^r^o^m^p^r^o^ceed^{s traceab}^{le to}^{. . .}^an^y^o^f^f^eⁿ^s^e^coⁿ^s^tit^u^tⁱⁿ^g^‘sp^ecifⁱ^ed^uⁿ^l^aw^f^u^l^activ^it^y^’^(as
^de^fⁱ^ne^{d in se}^c^tioⁿ¹⁹^56(c⁾⁽⁷⁾^of^t^h^is^title^),^{or c}^onspⁱ^ra^c^y^{to c}^o^m^m^it^suc^h^aⁿ^of^f^e^nse^,^”^{18 U.S.C.}⁹⁸¹⁽^a^)(1)(C).
^“^I^f^a^f^o^r^f^e^itur^e^of^pr^ope^r^t^y^is^a^u^th^or^iz^e^dⁱⁿ^c^oⁿⁿ^e^c^tio^{n w}^{ith a}^vⁱ^ola^t^ion^of^aⁿ^A^c^{t of}^C^ong^r^e^s^s^,^a^{nd a}ⁿ^y^pe^r^s^{on is}
^c^h^a^r^g^e^{d in a}ⁿⁱⁿ^dⁱ^c^t^m^e^{nt or}^inf^o^r^m^a^{tion w}^{ith s}^u^c^h^vⁱ^ola^tioⁿ^butⁿ^o^s^p^e^cⁱ^fⁱ^c^s^t^a^t^utor^y^pr^ov^is^{ion is}^m^a^de^f^o^r^c^r^im^ina^l
^f^o^r^f^eⁱ^t^u^r^e^u^p^oⁿ^c^oⁿ^vⁱ^c^tⁱ^oⁿ^,^th^{e gover}ⁿ^m^eⁿ^t^ma^yⁱⁿ^cl^u^d^e^t^h^{e f}^o^r^f^ei^t^u^r^eⁱⁿ^t^h^{e in}^dⁱ^ct^m^eⁿ^t^o^rⁱⁿ^f^o^r^m^atⁱ^oⁿ^{. .}^{. an}^{d up}^on
^c^onv^ic^tion^,^t^h^e^c^our^t^s^h^a^ll^or^de^r^t^h^e^f^o^r^f^e^itur^e^of^the^pr^ope^r^t^y^{. . .}^.”^{28 U}^.^S.C^.²⁴⁶¹⁽^c⁾^.
¹³⁸^“^T^he^f^o^llowⁱ^ng^pr^ope^r^t^y^is^s^ubje^c^t^{to f}^o^r^f^e^itur^e^{to t}^h^e^Uⁿ^ite^d^Sta^t^e^s^{: (}^A⁾^Aⁿ^y^pr^ope^r^t^y^,^r^e^a^l^or^pe^r^s^oⁿ^a^l^{, i}ⁿ^v^o^lv^e^dⁱⁿ
^a^traⁿ^sa^c^tion^{or a}^tte^m^p^te^{d tra}ⁿ^sa^c^tionⁱⁿ^vⁱ^ola^tioⁿ^of^se^c^{tion 1}⁹⁵⁶^{. .}^{. of}^this^title^o^r^aⁿ^y^prope^rty^tra^c^e^a^b^le^{to suc}^h
^p^r^op^ert^y^w^hⁱ^c^h^coⁿ^s^tⁱ^t^u^t^{es o}^rⁱ^s^deri^ved^f^r^o^m^p^r^o^ceed^{s t}^r^aceab^l^e^t^o^.^.^.^aⁿ^y^o^f^f^eⁿ^s^e,^{” 1}⁸^U.^S^.^C.⁹⁸¹⁽^a)(1^)(A^).
^“^T^he^c^our^{t, in}^im^pos^ing^s^e^nteⁿ^c^e^{on a}^pe^r^s^{on c}^onv^ic^te^d^of^aⁿ^of^f^eⁿ^s^e^{in v}ⁱ^ola^tⁱ^on^of^s^e^c^{tion 1}⁹⁵⁶^.^{. .}^of^this^tit^le^{, s}^h^a^ll
^or^de^r^t^h^a^t^the^pe^r^s^on^f^o^r^f^e^{it to the}^Uⁿ^ite^d^Sta^t^e^s^aⁿ^y^pr^ope^r^t^y^,^r^e^a^l^or^pe^r^s^oⁿ^a^lⁱⁿ^v^o^lv^e^dⁱⁿ^s^u^c^h^of^f^e^ns^e^,^or^aⁿ^y^pr^o^p^e^r^ty
^t^r^aceab^l^e^t^o^su^ch^p^r^op^ert^y^,^”¹⁸^U.^S^.^C.⁹⁸^2(a)(1^).
¹³⁹^Uⁿ^ite^d^St^ate^s^v^.^H^ube^r^,⁴⁰⁴^F.3^d¹⁰^47,¹⁰⁵⁸⁽⁸^th^Cⁱ^r^.²⁰⁰⁵⁾^;^Unⁱ^t^ed^S^t^a^t^{es v.}^B^a^ker^,²²⁷^F.^3d⁹⁵^5,⁹⁷⁰⁽⁷^th^Cir.
²⁰⁰⁰⁾^;^Uⁿⁱ^t^e^{d S}^t^a^t^{es v.}^T^eⁿ^cer^{, 1}^{07 F.3}^d¹¹^20,¹¹³⁴⁽⁵^th^Ci^r.¹⁹⁹⁷^{) T}^h^{e t}^e^r^m^al^soⁱⁿ^cl^ud^{es “an}^y^co^mmi^ssi^oⁿ^s^o^r^f^ees
^pa^{id t}^o^t^h^e^la^un^de^re^{r, a}ⁿ^{d a}ⁿ^y^pro^p^e^r^ty^use^d^{to f}^a^c^ilita^te^the^la^un^de^ring^of^f^e^nse^,^”^Unite^{d State}^s^v^.^B^o^rⁿ^fie^ld^,¹⁴⁵^F.3^d^th
¹¹²^{3, 11}³⁵⁽¹⁰^Cⁱ^r^.¹⁹⁹⁸⁾^.
¹⁴⁰^Cassella,^T^h^{e F}^o^rf^ei^t^u^{re o}^f^P^r^o^p^ert^y^In^vo^l^vedⁱⁿ^Moⁿ^{ey L}^a^un^d^e^riⁿ^g^Of^f^eⁿ^s^es^{, 7 B}^U^FFA^LO^C^RI^MI^N^A^L^L^AW^R^EV^IE^W
⁵⁸³^{, 6}²⁷⁽²⁰⁰^3-²⁰⁰⁴⁾⁽^t^he^“^g^ov^e^r^nm^eⁿ^t^m^a^y^g^e^{t a}^m^oney^judg^m^e^nt^f^o^r^the^a^m^{ount i}ⁿ^v^o^lv^e^dⁱⁿ^the^c^o^nv^e^r^sⁱ^{on of}
^[^t^aiⁿ^t^ed]^p^r^o^ceed^{s t}^o^coⁿ^s^u^m^{er go}^o^d^s^,^o^rⁱ^t^m^a^y^f^o^r^f^ei^t^t^h^{e co}ⁿ^v^ert^e^d^p^r^o^p^e^rt^yⁱ^t^s^el^f^,^b^u^tⁱ^t^cann^o^t^f^o^rfei^t^b^o^t^h^”^),^c^iti^ng^,^th
^Uⁿ^ite^d^State^s^v^.^H^a^w^l^e^y^,¹⁴^{8 F}^.^3d⁹²⁰^,⁹²⁸⁽⁸^Cⁱ^r^.¹⁹⁹⁸⁾^.
¹⁴¹^Uⁿ^ite^d^St^ate^s^v^.^Baj^a^k^a^jⁱ^aⁿ^,⁵²⁴^U.^S^.³²^1,³³^{4 (}¹⁹⁹⁸⁾^.
¹⁴²^Baj^a^k^a^ji^an^f^o^uⁿ^d^aⁿ^a^tte^m^p^te^{d f}^o^r^f^e^itur^e^{, ba}^s^e^{d o}ⁿ^aⁿ^tⁱ^-^m^oney^la^unde^rⁱ^ng^r^e^por^ting^s^t^a^t^ute^,^e^x^c^e^s^siv^e^,^Id^.
¹⁴³^E.g^.,^Uⁿⁱ^t^e^d^State^s^v^.^Mⁱ^s^l^a-^Ald^a^r^ond^o^,⁴⁷^{8 F}^.³^d⁵²^,⁷²⁽¹^st^Cir.²⁰⁰⁷^);^Unⁱ^t^ed^S^t^a^t^es^v.^P^u^ch^e^{, 35}⁰^F.3^d¹¹^37,¹¹⁵⁴
⁽¹¹^th^Cⁱ^r^.²⁰⁰³⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Bolliⁿ^,²⁶^{4 F.}^3d³^91,⁴^17-^{19 (}⁴^th^Cⁱ^r^.²⁰⁰¹⁾^;^Uⁿ^ite^d^State^s^v^.^W^y^ly^{, 1}⁹³^F.^3d²⁸^9,³⁰³^th
⁽⁵^Cⁱ^r^.¹⁹⁹⁹⁾^.

The Constitution guarantees the accused the right to trial in the state in which the crime charged ¹⁴⁴
was committed and before a jury from the state and district in which the crime was committed. ¹⁴⁵
In United States v. Cabrales, the defendant was tried in Missouri for laundering, in Florida, the
proceeds of a Missouri drug dealing ring. The Supreme Court has held the Constitution precludes
trial of a money laundering charge in the district in which the predicate offense occurred unless
they occurred in the same district or perhaps unless the launderer was a coconspirator in the
commission of the predicate offense or participated in the transfer of the laundered property from
the place where the predicate offense occurred (e.g., Missouri) to the place where the laundering ¹⁴⁶
occurred (e.g., Florida). The section 1956 money laundering venue provision was amended ¹⁴⁷
following the Court’s decision.
Unless there is some element of promotion, concealment or evasion, section 1956 does not make ¹⁴⁸
simply spending or depositing tainted money a crime. Section 1957 does. It outlaws otherwise ¹⁴⁹
innocent transactions contaminated by the origin of the property involved in the transaction.
Using most of the same definitions as section 1956, the elements of 1957 cover anyone who:

1. A. in the United States,

B. in the special maritime or territorial jurisdiction of the United States,
or

¹⁴⁴^U.S.Coⁿ^s^{t. A}^r^t.III,^§²^,^cl.3^;^Am^eⁿ^d^.^V^I^.
¹⁴⁵^Uⁿ^ite^d^Sta^t^e^s^v^.^C^a^br^a^l^e^s^{, 5}^{24 U}^.^{S.1 (}¹⁹⁹⁸⁾^.
¹⁴⁶^Uⁿ^ite^d^St^ate^s^v^.^C^a^br^ale^s^,⁵²^{4 U}^.^{S. a}^t^3-^4.
¹⁴⁷^{18 U}^S.C^.¹⁹⁵⁶⁽ⁱ⁾⁽^“⁽¹⁾^Ex^c^e^p^{t a}^s^pr^ov^ide^dⁱⁿ^pa^r^a^g^r^a^{ph (}²⁾^,^a^pr^os^e^c^u^{tion f}^o^r^aⁿ^of^f^e^ns^e^unde^r^th^is^s^e^c^{tion o}^r
^s^e^c^{tion 1}⁹⁵⁷^m^a^y^be^br^oug^htⁱⁿ^–⁽^A⁾^aⁿ^y^dis^t^rⁱ^c^t^{in w}^h^ic^{h t}^h^e^fⁱ^na^nc^ia^{l or}^m^one^ta^r^y^tr^aⁿ^s^a^c^{tion is}^c^o^nduc^te^{d; or}⁽^B⁾
^aⁿ^y^dis^t^rⁱ^c^t^w^h^e^r^e^a^pr^os^e^c^u^{tion f}^o^r^the^un^de^r^l^yⁱ^ng^s^p^e^cⁱ^fⁱ^e^d^unla^w^f^u^{l a}^c^tiv^it^y^c^{ould be}^br^o^u^g^h^t,^if^th^e^de^f^e^nda^nt
^p^a^rtⁱ^cⁱ^p^at^edⁱⁿ^t^h^{e t}^r^an^sf^{er o}^f^t^h^{e p}^r^o^ceed^{s o}^f^t^h^{e sp}^eci^fⁱ^ed^un^l^a^wf^u^l^actⁱ^vⁱ^t^y^f^r^o^m^t^h^at^dⁱ^st^ri^ct^t^o^t^h^e^dⁱ^st^ri^ct^w^h^{ere t}^h^e
^fⁱ^na^nc^ia^{l or}^m^one^ta^r^y^tr^aⁿ^s^a^c^tion^is^c^ond^uc^te^d.⁽²⁾^A^pr^os^e^c^u^ti^on^f^o^r^aⁿ^a^tte^m^p^{t or}^c^ons^pir^a^c^y^of^f^eⁿ^s^e^unde^r^t^h^is
^s^e^c^{tion or}^s^e^c^tion¹⁹⁵⁷^m^a^y^be^br^oug^ht^{in t}^h^e^dⁱ^s^t^rⁱ^c^t^w^h^e^r^e^v^e^nue^w^{ould lie}^f^o^r^the^c^o^m^p^le^te^{d of}^f^eⁿ^s^e^unde^r^pa^r^a^g^r^a^ph
⁽¹^),^o^rⁱⁿ^an^y^o^t^h^e^{r d}ⁱ^st^rⁱ^ct^w^h^{ere an}^actⁱⁿ^f^u^rt^h^e^ran^{ce o}^f^t^h^{e at}^t^e^m^p^t^o^r^coⁿ^s^pⁱ^racy^t^o^o^k^p^l^ace”).
¹⁴⁸^Se^c^tion^“¹⁹⁵⁷^is^of^te^{n c}^a^lle^{d t}^h^e^‘^m^oney^s^p^e^nding^s^t^a^t^ute^.^’^I^t^’^s^p^u^r^pos^e^is^t^o^m^a^ke^the^c^r^im^ina^l^’^s^m^one^y^w^o^r^t^hle^s^s^,
^by^m^a^kⁱ^ng^{it a}^f^e^lon^y^f^o^{r him}^{to spe}^nd^it,^{or f}^o^{r a}ⁿ^y^one^e^l^se^{to ta}^k^e^{it, if}^he^k^now^{s of}^{its ille}^g^a^{l sourc}^e^,^”^Ca^sse^lla^,^the
^F^o^rf^ei^t^u^{re of}^P^r^op^ert^y^In^vo^l^{ved i}ⁿ^Moⁿ^{ey L}^a^un^d^e^ri^ng^Of^f^eⁿ^s^es^{, 7 B}^U^FFA^LO^C^RI^MI^N^A^L^L^AW^R^EV^I^E^W⁵⁸³^{, 6}¹⁴⁽²⁰⁰^3-
²⁰⁰⁴⁾^.
¹⁴⁹^Uⁿ^ite^d^St^ate^s^v^.^Rut^gar^d^,¹¹^{6 F}^.³^d¹²⁷⁰^,¹²^{91 (}⁹^th^Ci^r.¹⁹⁹⁷^)(“T^h^{e d}^e^scri^p^tⁱ^oⁿ^o^f^t^h^{e cri}^m^{e [}^u^nd^{er sect}ⁱ^oⁿ¹⁹^57]
^doe^{s n}^o^{t spe}^a^k^to^the^a^tte^m^p^{t to c}^l^e^aⁿ^se^dirty^m^one^y^b^y^putti^ng^{it i}ⁿ^a^c^l^e^aⁿ^f^o^r^m^a^{nd so}^disg^uising^it^.^T^h^{is sta}^t^ute^st
^ap^p^lⁱ^e^{s t}^o^t^h^{e m}^o^st^op^en^,^a^b^o^v^e-bo^ard^t^r^an^sactⁱ^oⁿ^”^);^Uⁿ^ite^{d State}^s^v^.^G^abr^ie^le^{, 63 F.3}^d^61,⁶⁵⁽¹^Cⁱ^r^.¹⁹⁹⁵⁾⁽^“^T^h^e^c^r^ux
^of^the^a^r^g^u^m^e^{nt is}^tha^t^s^e^c^tioⁿ¹⁹^{57 is}^a^r^a^t^h^e^rⁿ^o^v^e^{l s}^t^a^t^ute^,ⁱⁿ^t^h^a^t^{it c}^r^im^ina^liz^e^s^c^onduc^t^by^a^pe^r^s^on^onc^e^r^e^m^o^v^e^d
^f^r^o^m^tha^t^of^the^pe^r^s^oⁿ^w^{ho g}^e^ne^r^a^te^{d the}^c^r^im^ina^lly^de^rⁱ^v^e^{d pr}^ope^r^t^y^.^T^hus^{, he}^a^r^g^u^e^s^{, the}^pr^os^c^rⁱ^b^e^d^c^oⁿ^duc^t^isⁿ^o^t
^lik^e^l^y^{to a}^ppe^a^r^uⁿ^la^w^f^{ul to a}ⁿ^or^dina^r^y^c^itiz^eⁿ^{. . .}^Se^c^tion¹⁹⁵⁷^is^{but a}^not^he^rⁱⁿ^a^s^ubs^ta^ntia^{l li}^ne^of^f^e^de^r^a^{l c}^rⁱ^m^ina^l
^s^t^a^t^ute^s^w^hos^e^only^men^s^rea^r^e^quir^e^m^e^{nt is}^k^now^le^dg^e^of^the^pr^io^r^c^r^im^ina^l^c^onduc^t^tha^t^taⁱⁿ^te^{d t}^h^e^pr^o^p^e^r^ty^inv^o^lv^e^d
^{in t}^h^e^pr^osc^r^ibe^d^a^c^tiv^ity^”⁾^.

C. outside the United States if the defendant is an American,
2. knowingly
3. A. engages or
B. attempts to engage in
4. a monetary transaction

5. [in or affecting U.S. interstate or foreign commerce]

6. in criminally derived property that
A. is of a greater value than $10,000 and
B. is derived from specified unlawful activity.¹⁵⁰
The courts often supply an abbreviated statement of the crime’s elements: “To sustain a
conviction under §1957, the government must prove that the defendant (1) engaged or attempted
to engage, (2) in a monetary transaction, (3) in criminally derived property, (4) knowing that the
property is derived from unlawful activity, and (5) the property is, in fact, derived from specified ¹⁵¹
unlawful activity.” These short-hand lists of elements usually make no reference to the
circumstances under which the section reaches misconduct committed outside the United States.
This may not be surprising given the legal and practical limitations upon prosecution of an
overseas violation of section 1957.

¹⁵⁰^{“(a) W}^h^o^e^ver,ⁱⁿ^an^y^o^f^t^h^{e ci}^rc^u^m^st^an^ces^set^f^o^rt^hⁱⁿ^su^b^s^ectⁱ^oⁿ^(d^),^kn^o^wⁱⁿ^gl^y^en^ga^{ges o}^r^at^t^e^m^p^t^s^t^o^en^{gage i}ⁿ^a
^m^one^ta^r^y^tr^aⁿ^s^a^c^{tion in}^c^r^im^ina^lly^de^rⁱ^v^e^{d pr}^ope^r^t^y^tha^t^is^of^a^v^a^l^u^e^g^r^e^a^t^e^r^thaⁿ^$1^0,0^{00 a}^{nd is}^de^rⁱ^v^e^{d f}^r^o^m^s^p^e^cⁱ^fⁱ^e^d
^unla^w^f^u^{l a}^c^tiv^it^y^,^s^h^a^{ll be}^pu^nis^h^e^d^a^s^pr^ov^ide^dⁱⁿ^s^u^bs^e^c^{tion (}^b⁾^.
^{* *}^*
^“⁽^d)^T^h^e^cⁱ^r^c^um^s^t^aⁿ^ce^s^r^e^f^e^r^r^e^{d to in}^s^ubs^e^c^tⁱ^{on (}^a⁾^a^r^e^–⁽¹⁾^tha^t^t^h^e^of^f^e^ns^e^unde^r^this^s^e^c^tio^{n ta}^k^e^s^pl^{ace i}ⁿ^t^h^e
^Uⁿ^ite^{d S}^t^a^t^e^s^{or i}ⁿ^t^h^e^s^p^e^cⁱ^a^l^m^a^ritim^e^a^{nd te}^rritoria^l^j^u^ris^d^ic^ti^on^of^the^Uⁿ^ite^d^Sta^t^e^s^{; or}^{(2) t}^h^a^t^t^h^e^off^e^ns^e^unde^{r t}^h^is
^sectⁱ^oⁿ^t^a^{kes p}^l^{ace o}^u^t^si^d^e^t^h^{e Uni}^t^e^d^S^t^at^{es and}^su^{ch sp}^eci^al^j^u^ri^s^dⁱ^c^tⁱ^oⁿ^,^bu^t^t^h^{e d}^e^f^eⁿ^d^aⁿ^tⁱ^s^{a U}ⁿⁱ^t^ed^S^t^at^{es p}^e^rson
^(a^{s de}^fⁱ^ne^{d in se}^c^tio^{n 3}⁰⁷⁷^of^{this title}^,^but^e^x^c^l^uding^t^h^e^c^l^a^{ss de}^sc^ribe^{d i}ⁿ^pa^ra^g^r^a^{ph (2)(D)}^of^suc^h^se^c^tion).
^{* *}^*
^“(f⁾^A^s^u^s^edⁱⁿ^t^hⁱ^s^sectⁱ^o^n–⁽¹⁾^t^h^{e t}^e^rm^‘^m^oⁿ^e^t^a^r^y^t^r^an^sa^ctⁱ^oⁿ^’^m^e^an^{s t}^h^{e d}^e^p^o^sⁱ^t^,^wⁱ^t^h^d^r^aw^al^,^t^r^an^sf^er,^o^r^exch^an^ge,
^{in or}^a^f^f^e^c^ting^inte^r^s^ta^te^or^f^o^r^e^{ign c}^o^m^m^e^r^ce^{, of}^f^unds^or^a^m^one^t^a^r^y^ins^t^r^u^m^e^{nt (}^a^s^de^fⁱ^ne^{d in s}^e^c^tion¹⁹⁵⁶⁽^c⁾⁽⁵⁾^of
^{this tit}^le^{) by}^{, thro}^ug^h,^{or t}^o^a^fⁱ^na^nc^ia^{l instit}^uti^on^(a^{s de}^fⁱ^ne^{d in}^se^c^tion¹⁹⁵⁶^of^this^title^{), i}ⁿ^c^l^u^dⁱⁿ^g^aⁿ^y^traⁿ^sa^c^{tion th}^at
^w^{ould be}^a^fⁱ^na^nc^ia^{l tra}ⁿ^sa^c^tioⁿ^u^nde^{r se}^c^tio^{n 1}⁹⁵⁶^(c^)(4)(B)^of^this^title^,^but^suc^h^te^rm^doe^{s n}^o^{t i}ⁿ^c^l^u^d^e^aⁿ^y^traⁿ^sa^c^tion
ⁿ^ecessar^y^t^o^p^r^{eserve a p}^e^rsoⁿ^’^{s ri}^gh^t^t^o^re^p^r^esen^t^a^tⁱ^oⁿ^{as gu}^aran^t^eed^b^y^t^h^{e si}^xt^h^am^en^d^m^en^t^t^o^t^h^e^Coⁿ^s^tⁱ^t^u^tⁱ^oⁿ^;⁽²⁾
^th^{e term}^‘cri^mⁱⁿ^a^ll^y^d^e^riv^e^d^p^r^o^p^ert^y^’^m^ean^{s an}^y^p^r^o^p^e^rty^coⁿ^s^titu^tin^g^,^o^r^d^e^riv^e^d^f^r^o^m^{, p}^r^o^ceed^{s o}^b^tain^ed^f^r^o^m^a
^cri^mⁱⁿ^al^o^f^f^eⁿ^s^e;^an^d⁽³^{) t}^h^e^t^e^{rm ‘sp}^eci^fⁱ^ed^uⁿ^l^aw^f^u^l^actⁱ^vⁱ^t^y’^ha^{s the}^m^e^aⁿ^ing^gⁱ^ve^{n tha}^t^te^rm^{in se}^c^tion¹⁹⁵⁶^of^this
^title^,”¹⁸^U.S.C^.¹⁹⁵⁷^(a^),(d)^,^(f^).
¹⁵¹^Uⁿ^ite^d^St^ate^s^v^.^D^a^z^e^y^,⁴^{03 F.3}^d¹¹⁴^{7, 11}⁶³⁽¹⁰^th^Cⁱ^r^.²⁰⁰⁵⁾^S^{ee a}^l^so^,^Unⁱ^t^e^d^St^a^t^{es v.}^C^a^ru^cci^,³⁶⁴^F^.^3d³³^9,³⁴³
⁽¹^st^Cⁱ^r^.²⁰⁰⁴⁾⁽^“^T^o^e^s^ta^blis^h^a^vⁱ^o^l^a^tion^of^{18 U}^.^S.C^.¹⁹⁵⁷^{, t}^h^e^g^o^v^e^rⁿ^m^e^nt^m^u^s^t^pr^ov^e^tha^t⁽¹⁾^t^h^e^d^e^f^e^nda^{nt e}ⁿ^g^a^g^e^d
^or^a^tte^m^p^te^{d to e}ⁿ^g^a^g^e^{in a}^m^one^ta^r^y^tr^aⁿ^s^a^c^{tion w}^{ith a}^v^a^lue^of^m^o^r^e^thaⁿ^$^10,⁰⁰^{0; (}²⁾^t^h^e^de^f^e^nda^{nt k}ⁿ^e^w^tha^t^the
^p^r^op^ert^yⁱⁿ^vo^l^v^edⁱⁿ^t^h^e^t^r^an^sactⁱ^oⁿ^h^a^d^b^een^d^e^ri^ved^f^o^rm^so^{me fo}^rm^o^f^cri^mⁱⁿ^al^actⁱ^vⁱ^t^y^;^an^d⁽³^{) t}^h^{e p}^r^op^ert^y
^inv^o^lv^e^dⁱⁿ^the^traⁿ^sa^c^{tion w}^a^{s a}^c^tua^lly^de^riv^e^{d f}^r^o^m^spe^cⁱ^fⁱ^e^d^unla^w^f^u^{l a}^c^tiv^it^y^”^);^Uⁿ^ite^{d State}^s^v^.^F^u^c^h^s^{, 46}⁷^F.^3d^th^th
⁸⁸⁹^,⁹⁰^{7 (}⁵^Cⁱ^r^.²⁰⁰⁶⁾^;^Unite^{d S}^t^ate^s^v^.^W^h^ite^,⁴⁹²^F.^3d³⁸^0,³⁹⁷⁽⁶^Cⁱ^r^.²⁰⁰⁷⁾^;^Unⁱ^t^ed^S^t^a^t^{es v.}^G^r^eenⁱ^d^g^e^{, 49}⁷
^F^.^3d⁸⁵^,¹⁰⁰⁽³^d^Cⁱ^r^.²⁰⁰⁷⁾^.

At the heart of any section 1957 offense lies a monetary transaction. A monetary transaction for ¹⁵²
purposes of section 1957 is a financial transaction as understood under section 1956 or any
other deposit or transfer of cash or check or the like, in or affecting interstate or foreign ¹⁵³
commerce and involving a financial institution. Numbered among the qualifying financial
institutions are banks and credit unions, but also car dealerships, jewelers, casinos, stockbrokers, ¹⁵⁴
travel agents, and pawnbrokers to mention a few. The government’s jurisdictional burden is
comparable to the one it must bear for section 1956 (a transaction in or affecting interstate or ¹⁵⁵
foreign commerce) and demands evidence of only a slight impact on commerce.

¹⁵²^“(4⁾^[^T^]^h^{e t}^e^rm^‘^fⁱⁿ^an^ci^al^t^r^an^sac^tⁱ^oⁿ^’^m^ean^{s (}^A⁾^{a t}^r^an^sactⁱ^oⁿ^w^hⁱ^c^hⁱⁿ^an^y^wa^{y o}^r^d^e^gree^a^f^f^ect^sⁱⁿ^t^e^rst^a^t^e^o^r^f^o^rei^gⁿ
^c^o^m^m^e^r^c^e⁽ⁱ⁾^inv^o^lv^ing^the^m^o^v^e^m^e^{nt of}^f^unds^by^wⁱ^r^e^or^othe^r^m^e^aⁿ^s^or⁽ⁱⁱ⁾^inv^o^l^vⁱ^ng^one^or^m^o^r^e^m^one^ta^r^y^ins^t^r^u^m^eⁿ^t^s^,
^{or (iii) i}ⁿ^v^o^lv^ing^the^traⁿ^sf^e^r^of^title^{to a}ⁿ^y^re^a^l^prope^rty^,^v^e^hic^l^e^,^ve^s^s^e^l^{, or a}ⁱ^rc^ra^f^t^{, or (B) a}^traⁿ^sa^c^tⁱ^oⁿⁱⁿ^v^o^l^vⁱⁿ^g^t^h^e^us^e^of
^a^fⁱ^na^nc^ia^{l instituti}^{on w}^h^ic^{h is e}ⁿ^g^a^ge^{d in, or}^the^a^c^tiv^itie^{s of}^w^h^ic^{h a}^f^f^e^c^t^{, inte}^rsta^te^{or f}^o^re^ig^{n c}^o^m^m^e^rc^e^{in a}ⁿ^y^w^a^y^or
^d^e^g^r^{ee, 1}⁸^U.S.C^.¹⁹⁵⁶^(c)(4^).
^“⁽³⁾^[^T^]^h^e^te^r^m^‘^t^r^a^ns^a^c^tion’ⁱⁿ^c^l^ude^s^a^p^u^r^c^ha^s^e^{, s}^a^le^{, loa}ⁿ^{, p}^l^e^d^g^e^{, g}ⁱ^f^t^{, tr}^aⁿ^s^f^e^r^{, de}^liv^e^r^y^,^or^ot^he^r^dis^posⁱ^tio^{n, a}ⁿ^d
^w^{ith r}^e^s^p^e^c^t^{to a}^fⁱ^na^nc^ia^{l ins}^tit^uti^{on i}ⁿ^c^l^u^d^e^s^a^de^p^o^s^{it, w}^ithdr^a^w^a^l^{, tr}^aⁿ^s^f^e^r^be^tw^ee^{n a}^c^c^ounts^,^e^x^c^h^aⁿ^g^e^of^c^u^r^r^e^ncy^,
^loaⁿ^{, e}^x^te^ns^ioⁿ^of^c^r^e^d^{it, p}^u^r^c^ha^s^e^or^s^a^le^of^aⁿ^y^s^t^oc^k^,^bond,^c^e^r^tif^ic^a^t^e^of^de^pos^it,^or^othe^r^m^one^ta^r^y^ins^t^r^u^m^e^{nt, us}^e
^of^a^sa^f^e^de^{posit b}^o^x^,^or^aⁿ^y^othe^{r pa}^y^m^eⁿ^{t, tra}ⁿ^sf^e^r^{, or de}^liv^e^r^y^b^y^,^thro^ug^h,^{or t}^o^a^fⁱ^na^nc^ia^{l i}ⁿ^stitu^ti^on,^by^w^h^a^t^e^v^e^r
^mean^{s e}^f^f^ect^ed^,^”¹⁸^U.^S^.^C.¹⁹⁵⁶⁽^c⁾⁽³^).
¹⁵³^“⁽^f⁾^A^s^use^d^{in th}^{is se}^c^tion^{– (}¹^{) t}^h^e^te^rm^‘^m^one^ta^r^y^t^r^an^sactⁱ^oⁿ^’^mean^{s t}^h^{e d}^e^po^si^t^,^wⁱ^t^h^d^r^aw^al^,^t^r^an^sf^er,^o^r
^e^x^c^h^aⁿ^g^e^{, in or}^a^f^f^e^c^ting^inte^r^s^ta^te^or^f^o^r^e^ig^{n c}^o^m^m^e^r^c^e^,^of^f^unds^o^r^a^m^one^ta^r^y^ins^t^r^u^m^e^{nt (}^a^s^de^fⁱⁿ^e^{d in s}^e^c^tioⁿ
¹⁹⁵^6(c⁾⁽⁵⁾^of^{this t}^itle^{) by}^{, thro}^ug^{h, o}^r^to^a^fⁱ^na^nc^ia^{l instit}^uti^oⁿ^(a^{s de}^fⁱ^ne^{d in se}^c^tioⁿ¹⁹⁵⁶^of^{this tit}^l^e^{), inc}^l^u^d^ing^aⁿ^y
^traⁿ^sa^c^{tion t}^h^a^t^w^ould^be^a^fⁱ^na^nc^ia^{l tr}^aⁿ^sa^c^tion^un^de^{r se}^c^tion¹⁹⁵⁶⁽^c^{)(4)(B) of}^th^{is t}^itle^,^{but s}^u^c^h^te^r^m^doe^{s not i}ⁿ^c^l^u^d^e
^an^y^t^r^an^sactⁱ^oⁿⁿ^ecessar^y^t^o^p^r^{eserve a p}^e^rsoⁿ^’^{s ri}^gh^t^t^o^rep^r^esen^t^a^tⁱ^oⁿ^{as gu}^aran^t^eed^b^y^t^h^{e si}^xt^h^amen^d^m^en^t^t^o^t^h^e
^C^ons^tit^uti^on,”¹⁸^U^.^S.C^.¹⁹⁵⁷⁽^f⁾⁽¹⁾^.
¹⁵⁴^“^[^T^]^he^te^rm^‘f^inaⁿ^cⁱ^a^l^institu^tioⁿ^’^inc^l^u^d^e^s^–^(A^{) a}ⁿ^y^fⁱ^na^nc^ia^{l inst}^ituti^on,^a^s^de^fⁱ^ne^{d i}ⁿ^se^c^tioⁿ⁵³¹²^(a^{)(2) of}^title³¹^,
^Uⁿ^ite^{d Sta}^t^e^s^C^ode^{, or}^t^h^e^r^e^g^u^la^tions^pr^om^ulg^a^te^{d the}^r^e^unde^r^;^aⁿ^{d (}^B⁾^aⁿ^y^f^o^r^eⁱ^g^{n ba}^nk^{, a}^s^defⁱ^ne^{d in s}^e^c^tion^{1 of}^the
^Iⁿ^te^rⁿ^a^tio^na^{l B}^a^nk^ing^A^c^{t of}¹⁹⁷^{8 (}¹^{2 U}^.^S^.^C^.³¹⁰¹⁾^,”¹⁸^U^.^S.C^.¹⁹⁵⁶⁽^c⁾⁽⁶⁾^.
^“^‘^[^F^]ⁱ^na^nc^ia^{l i}ⁿ^stitu^tio^{n’ m}^e^aⁿ^{s – (A}^{) a}ⁿ^insure^d^ba^nk^(a^{s de}^fⁱ^ne^{d i}ⁿ^se^c^tion³⁽^{h) of}^the^Fe^de^ra^{l De}^p^o^{sit Ins}^u^ra^nc^e^A^c^t
⁽¹²^U.^S.C.¹⁸¹³⁽^h^{))); (B)}^{a co}^{mmercial b}^aⁿ^k^o^r^tru^s^{t c}^o^m^p^an^y^;⁽^C^{) a p}^r^iv^{ate b}^aⁿ^k^{er; (D) an}^ag^en^cy^o^r^b^r^an^ch^o^f^a
^f^o^re^ig^{n ba}^nk^{in t}^h^e^Unite^d^Sta^t^e^s^;^{(E) a}ⁿ^y^c^r^e^d^{it uni}^on;^{(F) a}^t^h^ri^f^tⁱⁿ^stitutⁱ^oⁿ^{; (G}^{) a}^brok^e^r^or^de^a^l^e^r^re^gⁱ^ste^r^e^d^w^{ith the}
^Se^c^u^ritie^{s a}^nd^Ex^c^h^aⁿ^g^e^Com^m^is^sion^un^de^{r the}^Se^c^u^ritie^{s Ex}^c^h^aⁿ^g^e^Ac^{t of}¹⁹³^{4 (1}^{5 U.}^S.C.^78a^e^t^s^e^{q.); (H) a}^br^ok^e^r
^o^r^d^e^a^l^e^rⁱⁿ^se^c^u^ritie^{s o}^r^c^o^m^m^o^d^itie^{s; (I) a}ⁿⁱⁿ^v^e^stm^eⁿ^t^b^aⁿ^k^e^r^o^rⁱⁿ^v^e^st^m^eⁿ^t^c^o^m^p^aⁿ^y^;^{(J) a}^c^u^rreⁿ^c^y^e^x^c^h^aⁿ^g^e^{; (K)}
^anⁱ^ssu^er,^red^eem^er,^o^r^cashⁱ^{er o}^f^t^r^avel^{ers’ ch}^ec^ks,^ch^eck^s,^m^oney^or^de^r^s^,^or^sⁱ^m^ila^r^ins^t^r^u^m^e^nts^;⁽^L⁾^aⁿ^o^p^e^r^a^t^or^of^a
^credⁱ^t^card^sy^st^e^m^;^(M^{) an}ⁱⁿ^su^raⁿ^{ce co}^m^p^an^y^;^{(N) a d}^eal^{er i}ⁿ^p^r^ecⁱ^o^u^s^m^e^t^a^l^s^,^st^oⁿ^e^s,^o^r^j^e^w^e^l^s^;^(O)^{a p}^a^wⁿ^b^r^o^k^er;⁽^P⁾
^{a l}^o^an^o^r^fⁱⁿ^aⁿ^{ce co}^m^p^an^y^;^{(Q) a t}^r^avel^ag^en^c^y^;^{(R) a l}ⁱ^cen^sed^sen^d^{er o}^f^m^oⁿ^e^y^o^r^an^y^o^t^h^e^{r p}^e^rson^w^h^o^en^gages^{as a}
^bus^ine^s^sⁱⁿ^t^h^e^tr^aⁿ^s^m^is^sⁱ^{on of}^f^unds^{, i}ⁿ^c^l^u^d^ing^aⁿ^y^pe^r^s^{on w}^h^o^eⁿ^g^a^ge^s^a^s^a^bus^ine^s^s^{in a}ⁿ^inf^o^r^m^a^l^m^oney^tr^aⁿ^s^f^e^r
^s^y^ste^m^{or a}ⁿ^y^ne^tw^ork^of^pe^ople^w^{ho e}ⁿ^g^a^g^e^a^s^a^busine^{ss in}^f^a^c^ilita^ting^the^traⁿ^sf^e^r^of^m^one^y^dom^e^s^tic^a^l^l^y^or
ⁱⁿ^tern^ati^oⁿ^a^lly^o^u^t^sid^e^o^f^th^{e conven}^tioⁿ^a^{l f}ⁱⁿ^aⁿ^c^{ial i}ⁿ^s^titution^s^syste^m^{; (S}⁾^{a telegrap}^h^co^m^p^an^y^;⁽^T^{) a b}^u^sⁱⁿ^ess
^en^gagedⁱⁿ^vehⁱ^cl^{e sal}^e^s,ⁱⁿ^cl^u^dⁱ^{ng au}^t^o^m^o^bⁱ^l^e^,^ai^rp^l^aⁿ^e^,^an^{d bo}^at^s^a^l^e^s;^{(U) p}^e^rsoⁿ^sⁱⁿ^vo^l^v^edⁱⁿ^real^est^a^t^e^cl^o^sⁱⁿ^gs
^a^{nd se}^ttle^m^e^{nts; (V}^{) t}^h^e^Unite^{d St}^a^t^e^s^P^o^sta^l^Se^rv^ic^e^;^(W^{) a}ⁿ^a^g^eⁿ^c^y^o^f^the^Unite^d^Sta^t^e^s^G^o^v^e^rn^m^eⁿ^t^or^of^a^Sta^t^e^or
^loc^a^l^g^o^v^e^rⁿ^m^e^{nt c}^a^r^r^y^ing^{out a}^d^u^ty^or^pow^e^r^of^a^bus^ine^s^s^de^s^c^rⁱ^be^{d i}ⁿ^t^h^is^pa^r^a^g^r^a^{ph; (}^X⁾^a^c^a^sⁱⁿ^{o, g}^a^m^b^ling^c^a^s^ino,
^or^g^a^mⁱ^ng^e^s^t^a^blis^hm^eⁿ^{t w}^{ith a}ⁿ^a^nnua^{l g}^a^mⁱ^ng^r^e^v^e^nue^of^m^o^r^e^thaⁿ^$¹^,⁰⁰⁰^,0⁰⁰^w^h^ic^{h – (}ⁱ⁾^is^lic^eⁿ^s^e^{d a}^s^a^c^a^s^ino,
^g^a^m^b^ling^c^a^s^{ino, or}^g^a^mⁱ^ng^e^s^ta^blis^hm^eⁿ^{t unde}^r^the^la^w^s^of^aⁿ^y^Sta^t^e^{or a}ⁿ^y^politic^a^l^s^u^bdivⁱ^sⁱ^on^of^aⁿ^y^Sta^t^e^;^{or (ii) is}
^aⁿ^Iⁿ^dⁱ^aⁿ^g^a^mⁱ^ng^ope^r^a^{tion c}^oⁿ^d^u^c^t^e^d^u^nde^r^or^pur^s^u^aⁿ^{t t}^o^t^h^e^Iⁿ^dⁱ^aⁿ^G^a^mⁱ^ng^R^e^g^u^la^tor^y^A^c^{t othe}^r^thaⁿ^aⁿ^o^p^e^r^a^tion
^w^h^ic^{h is}^lim^ite^{d to c}^l^a^s^s^I^g^a^mⁱ^ng⁽^a^s^de^fⁱ^ne^{d in s}^e^c^tioⁿ⁴⁽⁶⁾^of^s^u^c^h^A^c^t)^{; (}^Y⁾^aⁿ^y^bus^ine^s^s^or^a^g^eⁿ^c^y^w^h^ic^{h e}ⁿ^g^a^ge^sⁱⁿ
^aⁿ^y^a^c^tiv^it^y^w^h^ic^{h the}^Se^c^r^e^t^a^r^y^o^f^the^T^r^e^a^sur^y^de^te^r^m^ine^s^{, by}^re^gula^tio^{n, t}^o^be^aⁿ^a^c^tiv^ity^w^h^ic^{h is sim}^ila^{r to, re}^la^te^d
^to,^{or a}^su^bstitu^te^f^o^{r a}ⁿ^y^a^c^tiv^it^y^{in w}^h^ic^{h a}ⁿ^y^busine^{ss de}^sc^ri^be^dⁱⁿ^th^{is pa}^ra^g^r^a^{ph is a}^u^th^oriz^e^d^t^o^eⁿ^g^a^g^e^{; or (Z) a}ⁿ^y
^othe^r^busⁱⁿ^e^s^s^de^sⁱ^gⁿ^a^t^e^d^by^the^Se^c^r^e^t^a^r^y^w^hos^e^c^a^s^{h tr}^aⁿ^s^a^c^tions^ha^v^e^a^hig^h^de^g^r^e^e^of^us^e^f^ulne^s^s^{in c}^r^im^ina^l^{, ta}^x^,^or
^re^g^u^la^tory^m^a^tte^rs,”^{31 U}^.^S.C^.⁵³¹²⁽^a⁾⁽²⁾^.
¹⁵⁵^Uⁿ^ite^d^St^ate^s^v^.^Be^nj^am^ine^,²⁵²^F^.^3d^1,^{9 (}¹^st^Cⁱ^r^.²⁰⁰¹⁾⁽^“^Se^c^tion¹⁹⁵⁷⁽^f⁾^only^r^e^quir^e^s^t^h^a^t^the^tr^aⁿ^s^a^c^tions^ha^v^e^a
^d^e^mⁱⁿⁱ^mⁱ^{s e}^ffect^oⁿ^co^mm^erc^e”)^;^Unite^d^St^ate^s^v^.^Ab^le^s^,¹^{67 F.3}^d¹⁰²^{1, 10}^30-³¹⁽⁶^th^Cⁱ^r^.¹⁹⁹⁹⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^th
^Ar^am^ony^,⁸⁸^F.^3d¹³⁶⁹^,¹³^{86 (}⁴^Cⁱ^r^.¹⁹⁹⁵⁾^.

The government must prove that the defendant knew the property in the transaction was the ¹⁵⁶
product of criminal activity, but it need not show that he knew it was the product of a ¹⁵⁷
“specified unlawful activity.” Section 1957(f)(2) describes “criminally derived property” as
“any property constituting or derived from, proceeds obtained form a criminal offense.” Of
course, the property must in fact be derived from a specified unlawful activity (predicate ¹⁵⁸
offense), and section 1957 uses the definition of specified unlawful activities from section ¹⁵⁹

1956.

Section 1957 contains an attorney’s fee exception of uncertain breadth. It excludes from the
“monetary transaction” element of the offense “any transaction necessary to preserve a person’s ¹⁶⁰
right to representation as guaranteed by the sixth amendment to the Constitution.” At least one
court has held that the exception was insufficient to protect a defendant whose withdrawal of
tainted funds appeared driven by factors other than a desire to compensate her attorney to whom ¹⁶¹
the funds where eventually paid. Whatever it reach, the exception is limited to prosecutions
under section 1957 and is no defense to a charge of promotional, concealment, or evasive money ¹⁶²
laundering under section 1956.
Section 1957 proscribes attempts to violate its provisions.¹⁶³ As a general rule, attempt requires
proof of the mens rea necessary for commission of the underlying offense and the commission of ¹⁶⁴
a substantial step towards its completion. The general rules apply with respect to attempts to

¹⁵⁶¹⁸^U^.^S^.^C^.¹⁹⁵⁷⁽^a⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^G^a^ll^ar^do^{, 4}⁹⁷^F.^3d⁷²^7,⁷³^{7 (}⁷^th^Cⁱ^r^.²⁰⁰⁷⁾^.
¹⁵⁷^“^I^{n a}^pr^os^e^c^u^tio^{n f}^o^r^aⁿ^of^f^e^ns^e^unde^r^this^s^e^c^tio^n,^the^G^o^v^e^rⁿ^m^e^{nt is}^not^r^e^quir^e^{d t}^o^pr^ov^e^the^de^f^e^nda^{nt k}ⁿ^e^w^tha^t
^the^of^f^e^ns^e^f^r^o^m^w^h^ic^{h the}^c^r^im^ina^lly^de^rⁱ^ve^{d pr}^o^p^e^r^ty^w^a^s^de^rⁱ^ve^{d w}^a^s^s^p^e^cⁱ^fⁱ^e^d^unla^w^f^u^{l a}^c^tiv^it^y^,^{” 18 U}^.^S.C^.^st
¹⁹⁵⁷⁽^c⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^Flor^e^s^,⁴⁵⁴^F.^3d¹^49,¹⁵^{5 (}³^d^Cⁱ^r^.²⁰⁰⁶⁾^;^Unⁱ^t^e^d^S^t^a^t^{es v.}^Ca^ru^cci^,³⁶⁴^F.3^d³^39,³^{43 (}¹^Cir.^th
²⁰⁰⁴⁾^;^Uⁿ^ite^d^St^ate^s^v^.^For^e^m^aⁿ^,³²³^F.^3d⁴^98,⁵⁰^{6 (}⁶^Cⁱ^r^.²⁰⁰³⁾^.^N^o^r^ne^e^d^the^de^f^e^nda^{nt be}^c^h^a^r^g^e^{d w}^{ith or}^th
^c^onv^ic^te^{d of}^the^pr^e^d^ic^a^t^e^of^f^e^ns^e,^Unⁱ^t^e^{d S}^t^a^t^{es v.}^Ch^erry^,³³^{0 F}^.^3d⁶⁵⁸^,⁶⁶⁷⁽⁴^Cⁱ^r^.²⁰⁰³⁾^;^Uⁿⁱ^t^e^{d S}^t^at^{es v.}^Rⁱ^cha^r^d^,^st
²³⁴^F.^3d⁷^63,⁷⁶^{8 (}¹^Cⁱ^r^.²⁰⁰⁰⁾^.^Mor^e^ov^e^r^{, “}^[^k^]^now^le^dg^e^m^a^y^be^de^m^ons^tr^a^t^e^d^by^s^how^ing^tha^t^the^de^f^e^nda^{nt e}^ithe^r
^ha^{d a}^c^t^ua^{l k}ⁿ^o^w^l^e^d^g^e^or^de^libe^r^a^t^e^l^y^c^l^os^e^d^his^e^y^e^s^{to w}^h^a^t^othe^r^w^is^e^w^{ould ha}^v^e^be^eⁿ^o^b^vⁱ^ous^to^him^c^onc^e^r^ning^the
^f^a^ctⁱⁿ^qu^estⁱ^oⁿ^,^”^Uⁿ^ite^{d S}^t^ate^s^v^.^Flor^e^s^{, 4}⁵⁴^F.^{3d a}^t¹^55.
¹⁵⁸¹⁸^U^.^S^.^C^.¹⁹⁵⁷⁽^a⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^Dⁱ^am^oⁿ^d^{, 3}⁷⁸^F.^3d⁷²^0,⁷²^{8 (}⁷^th^Cⁱ^r^.²⁰⁰⁴⁾⁽^“^Iⁿ^or^de^r^t^o^fⁱ^{nd D}ⁱ^am^{ond g}^u^il^ty^of
^t^hⁱ^s^o^f^f^eⁿ^s^{e [}^u^nd^{er sect}ⁱ^o^{n 19}^57]^,^t^h^{e go}^vern^m^eⁿ^tⁿ^eed^ed^t^o^p^r^o^v^{e t}^h^at^sh^e^d^e^ri^ved^p^r^op^ert^y^f^r^o^m^{a s}^p^eci^fⁱ^ed^uⁿ^l^awf^u^l
^a^c^tiv^it^y^a^{nd tha}^t^she^eⁿ^g^a^g^e^{d in a}^m^one^ta^r^y^traⁿ^sa^c^tion”^).
¹⁵⁹¹⁸^U^.^S.C.¹⁹⁵⁷^(f⁾⁽³^).
¹⁶⁰¹⁸^U^.^S.C.¹⁹⁵⁷^(f⁾⁽¹^).
¹⁶¹^Uⁿ^ite^d^St^ate^s^v^.^H^o^o^g^eⁿ^bo^om^,²^{09 F.3}^d⁶⁶^{5, 669}⁽⁷^th^Ci^r.²⁰⁰⁰^)(“^Co^rrect^l^y^re^ad^,^t^h^{e st}^at^ut^{e o}^f^f^e^{rs a}^d^e^f^eⁿ^s^e^w^h^ere
^a^de^f^e^nda^{nt e}ⁿ^g^a^g^e^s^{in a}^tr^aⁿ^s^a^c^tion^un^de^r^l^yⁱ^ng^a^m^oney^la^unde^rⁱⁿ^g^c^h^a^r^g^e^w^{ith the}^pr^e^s^eⁿ^{t i}ⁿ^te^nt^o^f^ex^e^r^cⁱ^sⁱ^ng^Six^t^h
^A^m^e^ndm^eⁿ^{t r}ⁱ^g^h^ts^{. T}^h^is^a^llow^s^a^de^f^e^nda^{nt to}^pr^e^s^e^r^v^e^he^{r rig}^h^{ts witho}^u^t^un^de^rm^ining^the^pr^os^e^c^u^tio^{n of}^th^os^e^the
^st^at^u^t^{e seeks t}^o^p^uⁿⁱ^sh^.^Sⁱⁿ^{ce Hoo}^g^en^b^o^o^m^dⁱ^d^no^t^cl^{ear h}^e^{r accoun}^t^s^t^o^p^a^y^h^e^{r at}^t^o^rn^ey^–^t^h^{e evi}^d^en^{ce i}^s^t^h^at^sh^e
^en^gagedⁱⁿ^t^h^{e t}^r^an^sactⁱ^oⁿ^t^o^p^r^ev^en^t^t^h^e^F^B^{I f}^r^o^m^sei^zⁱⁿ^{g t}^h^e^m^oⁿ^e^y^–^sh^{e can}ⁿ^o^t^squ^{eeze w}ⁱ^t^hⁱⁿ^t^h^{e sl}ⁱ^m^Sⁱ^xt^h
^Am^e^ndm^eⁿ^{t e}^x^c^e^p^{tion t}^o^t^h^e^sta^t^ute^’^{s broa}^{d de}^fⁱ^niti^on^of^w^h^a^t^c^onstitute^{s a}^m^one^ta^r^y^traⁿ^sa^c^tion”^);^{see a}^l^so^,^Unⁱ^t^ed^th
^State^s^v^.^M^ille^r^{, 78}^F.^{3d 50}^{7, 51}¹^-¹²⁽¹¹^Cir.¹⁹⁹⁶^)(rev^e^rsin^g^an^d^reman^dⁱⁿ^g^f^o^{r f}^u^rth^e^{r f}^actu^a^{l d}^e^ter^mⁱⁿ^atioⁿ^s^t^h^e
^l^o^w^e^{r co}^u^r^t^’^{s d}^o^wⁿ^w^ard^sen^t^en^ciⁿ^g^d^e^p^a^rt^u^r^e^o^f^an^at^t^o^rⁿ^ey^w^h^o^had^accep^t^e^d^{a cri}^m^e-t^aⁱⁿ^t^e^d^f^e^e^f^o^{r p}^a^st^servi^ces
^w^h^e^r^e^the^de^pa^r^t^ur^e^ha^d^be^eⁿ^ba^s^e^{d up}^on^the^l^o^w^e^r^c^our^t’^s^fⁱ^ndi^ng^tha^t^the^a^t^t^o^rⁿ^e^y^a^c^quir^e^{d h}ⁱ^s^kⁿ^o^w^le^dge⁽^t^ha^{t the}
^f^e^e^w^a^s^c^rⁱ^m^ina^l^l^y^de^rⁱ^v^e^d)^only^a^s^a^c^ons^e^que^nc^e^of^his^r^e^pr^e^s^eⁿ^ta^tion)^.
¹⁶²^Uⁿ^ite^d^St^ate^s^v^.^Els^o^,⁴²^{2 F}^.³^d¹³⁰⁵^,¹³⁰⁹⁽¹¹^th^Cⁱ^r^.²⁰⁰⁵⁾^.
¹⁶³^{18 U}^.^S.C.¹⁹⁵⁷^(a^)(“^W^hoe^v^e^{r . . .}^eⁿ^g^a^g^e^s^{or a}^tte^m^p^ts^{to e}ⁿ^g^a^g^e^{. .}^.”^).
¹⁶⁴^E.g^.,^Br^ax^t^oⁿ^v^.^Uⁿ^ite^{d St}^ate^s^,⁵⁰^{0 U}^.^S.³^44,³^{49 (}¹⁹⁹¹⁾^.

commit the offenses under section 1956¹⁶⁵ and there is every reason to believe they apply to
attempts to commit a violation of section 1957.
Section 1956(h) outlaws conspiracy to violate section 1957, a crime which requires no proof of an ¹⁶⁶
overt act in furtherance of the conspiracy. In addition to the conspiracy offense, conspirators
are liable for the foreseeable offenses committed by coconspirators in furtherance of the ¹⁶⁷
scheme. Those who aid or abet the money laundering of another are likewise liable as though ¹⁶⁸
they had committed the offense themselves.
Violation of section 1957 and conspiracy to violate section 1957 are each punishable by
imprisonment for not more than 10 years. Under the sentencing guidelines, many offenders will ¹⁶⁹
be ineligible for a sentence of probation even as part of a split sentence. Where probation is ¹⁷⁰
available and imposed, the term must be not less than 1 nor more than five years. If
imprisoned, offenders may also be subject to a term of supervised release of up to three years to ¹⁷¹
be served upon their release from prison.
Violation of section 1957 and conspiracy to violate section 1957 are each punishable by a fine of
not more than the greater of $250,000 ($500,000 for an organization) or twice the amount

¹⁶⁵^E.g^.,^Uⁿⁱ^t^e^d^State^s^v^.^C^hoy^,³⁰⁹^F^.^3d⁶⁰^2,⁶⁰^{5 (}⁹^th^Cⁱ^r^.²⁰⁰²⁾^;^Uⁿⁱ^t^ed^S^t^a^t^{es v.}^B^a^rn^es^,²³^{0 F}^.³^d³¹¹^,³¹^{4 (}⁷^th^Cir.
²⁰⁰⁰⁾^.
¹⁶⁶^W^h^itfie^ld^v^.^Unite^{d St}^ate^s^{, 54}³^U^.^{S. 20}^{9, 21}¹⁽²⁰⁰⁵⁾^.
¹⁶⁷^Uⁿ^ite^d^St^ate^s^v^.^Silv^e^s^trⁱ^,⁴⁰^{9 F}^.³^d¹³¹¹^,¹³^35-³³^{6 (}¹¹^th^Cⁱ^r^.²⁰⁰⁵⁾^.
¹⁶⁸^{18 U}^.^S.C^.^2;^Uⁿ^ite^d^St^ate^s^v^.^D^a^di^,²³^{5 F.}^3d⁹^45,⁹^{51 (}⁵^th^Cⁱ^r^.²⁰⁰⁰⁾⁽ⁱ^nte^r^na^{l c}^ita^ti^ons^a^nd^qu^ota^tio^{n m}^a^r^k^s
^om^itte^d)(“^Da^{di a}^l^{so disp}^ute^s^t^h^e^suf^fⁱ^cⁱ^eⁿ^c^y^of^the^e^v^ideⁿ^c^e^{to sup}^p^o^{rt t}^h^e^aⁱ^di^ng^a^{nd a}^b^e^t^ting^c^h^a^r^g^e^{s. T}^o^c^onv^ic^t
^unde^r¹⁸^U^.^S.C^.¹⁹⁵⁷^{, t}^h^e^g^o^v^e^rⁿ^m^e^{nt m}^u^s^t^pr^ov^e^tha^t^t^h^e^de^f^e^nda^{nt k}^now^ing^l^y^eⁿ^g^a^g^e^{d or}^a^tte^m^p^t^e^{d to e}ⁿ^g^a^g^e^{in a}
^m^one^ta^r^y^tr^aⁿ^s^a^c^{tion in c}^r^im^ina^lly^de^rⁱ^ve^{d pr}^o^p^e^r^ty^tha^t^is^of^a^v^a^l^u^e^g^r^e^a^t^e^r^thaⁿ^$^10,⁰⁰^{0 a}ⁿ^{d is}^de^rⁱ^v^e^{d f}^r^o^m^s^p^e^cⁱ^fⁱ^e^d
^unla^w^f^u^{l a}^c^tiv^it^y^.^T^o^pr^ov^e^tha^t^a^de^f^e^nda^{nt a}ⁱ^de^{d a}^{nd a}^b^e^tte^{d t}^h^e^c^o^m^m^is^sⁱ^{on of}^a^c^rⁱ^m^ina^l^of^f^e^ns^e^,^the^g^o^v^e^rⁿ^m^e^nt
^m^u^st^sh^o^w^t^h^at^t^h^{e d}^e^f^eⁿ^d^aⁿ^tⁱⁿ^t^eⁿ^tⁱ^oⁿ^a^l^l^y^asso^ci^at^ed^wⁱ^t^h^,^an^{d p}^a^r^tⁱ^cⁱ^p^at^edⁱⁿ^,^t^h^{e cri}^mⁱⁿ^al^ven^t^u^r^{e an}^d^act^ed^t^o^m^a^k^e
^t^h^{e ven}^t^u^r^{e su}^cceed^”).
¹⁶⁹^O^f^f^e^nde^r^s^c^onv^ic^te^{d of}^aⁿ^of^f^e^nse^c^a^r^r^y^ing^a^m^a^xⁱ^m^u^m^pe^na^lty^o^f^{25 y}^e^a^r^s^or^m^o^r^e^a^r^e^ine^lig^ible^f^o^r^pr^o^b^a^tioⁿ^by
^s^t^a^t^ute^,¹⁸^U^.^S^.^C^.³⁵⁶¹⁽^a⁾⁽¹⁾^,³⁵⁸¹⁽^b⁾^.^U^nde^r^the^g^uⁱ^d^e^line^s^e^v^eⁿ^a^fⁱ^r^s^{t ti}^m^e^of^f^e^nde^r^w^hos^e^of^f^e^ns^e^le^v^e^{l is}^m^o^r^e^thaⁿ
^{10 is}^ine^lig^ible^f^o^r^pro^b^a^tio^{n a}ⁿ^d^a^fⁱ^rst^ti^m^e^off^e^nde^r^w^hose^of^fe^nse^le^v^e^{l is 9 or}¹⁰^{is o}ⁿ^ly^e^lig^ible^a^s^pa^{rt of}^a^split
^s^e^nteⁿ^c^e^,^U^.^S.S.G^.^§⁵^B¹^.¹^,^Se^nteⁿ^cⁱ^ng^T^a^ble^.^T^h^e^m^oney^la^unde^rⁱ^ng^s^e^nteⁿ^cⁱ^ng^g^u^ide^lⁱⁿ^e^c^a^lls^f^o^r^a^ba^s^e^of^f^e^ns^e^le^v^e^l
^e^qua^{l to}^tha^t^of^the^pr^e^d^ic^a^t^e^of^f^e^ns^e^if^a^s^c^e^r^ta^ina^b^le^or^othe^r^w^is^e^a^ba^s^e^of^f^e^ns^e^le^v^e^{l of}^{8; the}^ba^s^e^of^f^e^ns^e^le^v^e^{l is}
^inc^r^e^a^s^e^d^by^{1 le}^v^e^{l f}^o^r^a^vⁱ^ola^{tion of}^s^e^c^tion¹⁹⁵⁷^a^{nd a}^not^he^r²^le^v^e^ls^if^o^f^f^e^ns^e^inv^o^lv^e^d^s^oph^is^tic^a^t^e^d^la^un^de^rⁱ^ng^,
^U^.^S.S.G^.^§2^S1^.1.^Mos^t^fⁱ^v^e^y^e^a^r^f^e^lonie^s^c^a^r^r^y^a^ba^s^e^o^f^f^e^ns^e^le^v^e^l^of^{8 or}^m^o^r^e^{, e}^.^g^{., U}^.^S.^S.G^.^§2^b5^.³⁽^b^a^s^e^of^f^e^ns^e
^le^v^e^{l of}⁸⁾⁽^c^rⁱ^mⁱ^na^{l c}^opy^rⁱ^g^h^{t inf}^r^ing^e^m^e^nt)^,^§2H^3.^{1 (}^b^a^s^e^of^f^e^ns^{e le}^v^e^{l of}⁹⁾⁽^w^ir^e^t^a^pping⁾^.^Ma^ny^s^e^c^{tion 1}⁹⁵⁶
^pr^e^d^ic^a^t^e^of^f^e^ns^e^s^c^a^r^r^y^a^m^a^xⁱ^m^u^m^pe^na^lty^o^f^a^t^le^a^s^{t f}ⁱ^v^e^y^e^a^r^s^,^e^.^g^{., 18 U}^.^S.C^.¹³⁴³⁽^w^ir^e^f^r^a^{ud: 20 y}^e^a^r^s⁾^{, 641}
⁽^t^he^f^t^of^m^o^r^e^thaⁿ^$¹⁰⁰⁰^{in f}^e^de^r^a^{l pr}^o^p^e^r^ty^{: 10 y}^e^a^r^s⁾^{; 201}⁽^b^rⁱ^be^r^y^o^f^f^e^de^r^a^{l of}^fⁱ^cⁱ^a^l^s^:^{15 y}^e^a^r^s⁾^.
¹⁷⁰¹⁸^U^.^S.C.³⁵⁶¹^(c)(1^).
¹⁷¹¹⁸^U^.^S^.^C^.³⁵⁸³^.

involved in the transaction.¹⁷² Violators of section 1957 are subject to a civil penalty of no more ¹⁷³
than the greater of $10,000 or the value of the property involved in the offense.
Any property involved in a violation of section 1957 or traceable to property involved in a
violation of section 1957 is subject to confiscation under either civil or criminal procedures, and ¹⁷⁴
the applicable law is essentially the same as in the case of section 1956.
The money laundering provisions of sections 1956 and 1957 punish transactions involving
promotion, concealment, evasion, spending and depositing. The Travel Act, 18 U.S.C. 1952,
punishes interstate or foreign travel (or use of the facilities of interstate or foreign commerce)
conducted with the intent to distribute the proceeds of a more modest list of predicate offenses or
to promote or carry on such offenses when there is overt act in furtherance of that intent. The ¹⁷⁵
Travel Act is a section 1956 and 1957 predicate offense (specified unlawful activity); section ¹⁷⁶
1956 and 1957 are Travel Act predicate offenses (unlawful activity); and although the money
laundering predicate offense list is more extensive, several of the Travel Act predicate offenses ¹⁷⁷
are also money laundering predicates. The Travel Act essentially condemns three crimes, each
with an interstate element: the distribution of the proceeds of a predicate offense, the promotion
of a predicate offense, or the commission of a violent crime in aid of a predicate offense. The first
two variants bear some resemblance to the concealment and promotion offenses of section 1956
and somewhat more remotely to the deposit/spending proscriptions of section 1957. The violent
crime component of the Travel Act is only coincidentally related to money laundering and
consequently will be mentioned only in passing.
The Travel Act’s elements cover anyone who:
1. A. travels in interstate or foreign commerce, or
B. uses any facility in interstate or foreign commerce, or
C. uses the mail
2. with intent

¹⁷²¹⁸^U^.^S^.^C^.¹⁹⁵⁷⁽^b⁾^,¹⁹⁵⁶⁽^h⁾^,³⁵⁷¹^,³⁵⁵⁹^.
¹⁷³^{18 U}^.^S.C^.¹⁹⁵⁶⁽^b⁾⁽¹⁾^.
¹⁷⁴¹⁸^U^.^S.C.⁹⁸¹⁽^a)(1^)(A^{), 9}⁸²⁽^a)(¹^)(A^).
¹⁷⁵¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^)(A^{), 1}⁹⁵⁷⁽^f⁾⁽³^),¹⁹⁶¹⁽¹^)(B);^Uni^t^e^d^State^s^v^.^Griffith^,⁸⁵^F.^3d²⁸^{4 F}^.³^d²⁸⁴^,²⁸⁷⁽⁷^th^Cir.
¹⁹⁹⁶⁾^.
¹⁷⁶^{18 U}^.^S.C^.¹⁹⁵²⁽^b⁾⁽³⁾^.
¹⁷⁷^B^r^ibe^r^y^,^a^r^s^{on, e}^x^tor^tio^{n, g}^a^m^b^ling^a^nd^dr^ug^of^f^e^ns^e^s^a^r^e^T^r^av^e^l^A^c^{t as}^w^e^{ll a}^s^m^oney^la^unde^rⁱ^ng^pr^e^d^ic^a^t^e^s^{, 18}
^U^.^S.C^.¹⁹⁵²⁽^b)^,¹⁹⁵⁶⁽^c⁾⁽⁷⁾⁽^A⁾^,¹⁹⁶¹⁽¹⁾⁽^A⁾^.^P^r^os^ti^tuti^on⁽^u^nle^s^s^{it i}ⁿ^v^o^lv^e^s^inte^r^s^ta^te^or^f^o^r^e^ig^{n tr}^a^v^e^l⁾^,^vⁱ^ola^tⁱ^on^of
^liqu^o^{r ta}^x^la^w^s^{, a}^{nd c}^u^rre^nc^y^traⁿ^s^a^c^{tion in}^title³¹^of^the^U^.^S^.^Co^d^e^a^r^e^T^r^av^e^l^A^c^{t but n}^o^{t m}^one^y^launde^ri^ng
^pr^e^d^ic^a^t^e^s^{; a}^hos^t^of^f^e^de^r^a^{l a}^{nd f}^o^r^e^ig^{n c}^r^im^e^s^a^r^e^m^oney^la^unde^rⁱ^ng^butⁿ^o^{t T}^r^a^v^e^l^A^c^{t pr}^e^d^ic^a^t^e^s^{, 18 U}^.^S.C^.¹⁹⁵²⁽^b)^,
¹⁹⁵⁶⁽^c)(7^)(A^{), 1}⁹⁵⁷^(f⁾⁽³^{), 1}⁹⁶¹⁽¹^),²³³²^b⁽^b⁾⁽⁵^)(B).

A. to distribute the proceeds of an unlawful activity, i.e.,
i. any business enterprise involving unlawful activities gambling, moonshining, drug
dealing, or prostitution; or
ii. extortion, bribery or arson; or
iii. any act which is indictable as money laundering; or
B. commit an act of violence to further an unlawful activity; or
C. to otherwise
i. promote,
ii. manage,
iii. establish,
iv. carry on, or
v. facilitate the promotion, management, establishment, or carrying on, of any unlawful
activity; and
3. thereafter
A. distributes or attempts to distribute such proceeds, or
B. commits or attempts to commit such act of violence, or
C. promotes, manages, establishes, carries on, or facilitates the promotion, management, ¹⁷⁸
establishment, or carrying on such unlawful activities or attempts to do so.

¹⁷⁸^T^h^e^A^c^{t in its e}ⁿ^tire^t^y^re^a^d^{s: “}⁽^a⁾^W^hoe^v^e^{r tra}^v^e^l^{s in inte}^rs^ta^te^{or f}^o^re^ig^{n c}^o^m^m^e^rc^e^{or use}^s^the^m^a^{il or a}ⁿ^y^f^a^c^ilit^yⁱⁿ
^inte^r^s^ta^te^or^f^o^r^e^ig^{n c}^o^m^m^e^r^c^e^,^wⁱ^{th inte}^{nt to}^{– (}¹⁾^dis^t^rⁱ^bute^the^pr^oc^e^e^d^s^of^aⁿ^y^unlaw^f^u^l^a^c^tⁱ^vⁱ^t^y^;^o^r⁽²⁾^c^o^m^mⁱ^t^aⁿ^y^c^r^im^e
^of^vⁱ^oleⁿ^c^e^{to f}^u^rthe^{r a}ⁿ^y^unla^w^f^u^{l a}^c^tiv^it^y^;^{or (3) othe}^rw^is^e^prom^ote^,^m^a^na^g^e^{, e}^s^ta^{blish, c}^a^r^r^y^{on, or f}^a^c^ilita^te^the
^pr^om^otion^,^m^a^nag^e^m^e^{nt, e}^s^ta^blis^hm^eⁿ^{t, or}^c^a^r^r^y^ing^{on, of}^aⁿ^y^unla^w^f^u^l^a^c^tiv^it^y^,^a^{nd the}^r^e^a^f^t^e^{r pe}^r^f^orm^s^{or a}^tte^m^p^{ts to}
^pe^r^f^or^m^–⁽^A⁾^aⁿ^a^c^t^de^s^c^rⁱ^be^{d i}ⁿ^p^a^r^a^g^r^a^{ph (}¹⁾^or⁽³⁾^s^h^a^ll^be^fⁱ^ne^d^u^nde^r^t^h^is^ti^tle^{, im}^pr^is^one^{d n}^o^{t m}^o^r^e^thaⁿ^fⁱ^v^e^y^e^a^r^s^,^or
^bot^{h; o}^r^{(B) a}ⁿ^a^c^t^de^sc^ribe^{d i}ⁿ^pa^r^a^g^r^a^{ph (2) sha}^ll^be^fⁱ^ne^d^u^nde^{r t}^hⁱ^s^title^{, im}^prisone^{d f}^o^r^not^m^o^re^thaⁿ²⁰^y^e^a^r^{s, or both}^,
^a^{nd if}^de^a^t^{h r}^e^s^u^l^t^s^s^h^a^ll^be^im^pr^is^one^{d f}^o^r^aⁿ^y^te^r^m^o^f^y^e^a^r^s^or^f^o^r^lif^e^.
^“⁽^{b) A}^s^use^d^{in this se}^c^tio^{n (i) “}^uⁿ^l^a^w^f^u^{l a}^c^tiv^it^y^”^m^e^aⁿ^s⁽¹^{) an}^y^b^u^sⁱⁿ^{ess en}^terp^{rise in}^v^o^lv^ing^g^a^m^b^ling^,^liq^uor^{on w}^h^ic^h
^the^Fe^de^r^a^{l e}^x^cⁱ^s^e^ta^x^ha^s^{not be}^eⁿ^pa^id^{, na}^r^c^otic^s^or^c^ontr^o^lle^d^s^u^b^s^ta^nc^e^s⁽^a^s^defⁱ^ne^{d in s}^e^c^tion¹⁰²⁽⁶⁾^of^the^C^oⁿ^t^r^o^lle^d
^Subs^ta^nc^e^s^A^c^t)^{, or}^pr^os^tit^utioⁿ^of^f^e^ns^e^s^{in v}ⁱ^ola^tion^of^the^la^w^s^of^t^h^e^Sta^t^e^{in w}^h^ic^{h t}^h^e^y^a^r^e^c^o^m^m^it^te^{d or}^of^the^Uⁿ^ite^d
^Sta^t^e^s^{, (2) e}^x^tortio^{n, br}^ibe^r^y^,^{or a}^r^{son in v}ⁱ^o^l^a^tio^{n of}^the^la^w^s^o^f^the^Sta^t^e^{in w}^h^ic^{h c}^o^m^m^itte^{d or of}^the^Unite^{d Sta}^t^e^s^,^o^r⁽³⁾
^an^y^act^w^h^ich^{is in}^dⁱ^ctab^le^uⁿ^d^e^{r su}^b^c^h^a^{pter II o}^f^ch^ap^{ter 5}³^o^f^{title 3}¹^,^Uⁿ^ited^S^t^{ates Co}^d^e^,^o^r^uⁿ^d^e^{r sectio}ⁿ¹⁹⁵⁶^o^r¹⁹⁵⁷
^of^{this title}^a^{nd (ii) t}^h^e^te^rm^“^S^ta^te^”^inc^l^ude^{s a}^Sta^t^e^of^the^Unite^{d Sta}^t^e^s^{, the}^Distric^t^of^Colum^b^ia^{, a}^{nd a}ⁿ^y^c^o^m^m^oⁿ^w^e^a^l^t^h^,
^t^e^rri^t^o^ry^,^o^r^po^ssessi^oⁿ^o^f^t^h^{e U}ⁿⁱ^t^ed^S^t^at^es.
^“⁽^c⁾^Iⁿ^v^e^s^tig^a^tions^of^vⁱ^ola^tions^u^nde^r^t^h^is^s^e^c^tion^inv^o^lvⁱⁿ^g^liq^uor^s^h^a^{ll be}^c^o^nd^uc^te^d^un^de^r^the^s^u^pe^r^v^is^{ion of}^the
^A^ttorne^y^G^e^ne^ra^l,”^{18 U.S.C}^.¹⁹⁵²^.

The courts often abbreviate their statement of the elements to encompass only whichever of the
three versions is at issue:
^Distrⁱ^b^u^tioⁿ^—^T^h^e^es^s^eⁿ^tⁱ^a^l^el^e^m^ent^s^o^f^a^vⁱ^ol^atⁱ^oⁿ^uⁿ^d^{er s}^e^c^tⁱ^oⁿ^{1952(a) are:}^“⁽^{1) t}^r^av^elⁱⁿ
ⁱⁿ^ters^{tate or f}^o^rei^gⁿ^co^mm^{erce; (2) w}ⁱ^th^t^h^{e s}^p^eci^fⁱ^{c i}ⁿ^teⁿ^t^t^o^dis^t^ribu^{te th}^{e proceeds}^of^an
^uⁿ^l^a^w^fu^{l acti}^v^it^y^;^aⁿ^{d (3) k}ⁿ^o^wⁱ^ng^an^d^w^ill^fu^{l co}^m^mⁱ^s^sⁱ^oⁿ^of^an^{act i}ⁿ^fu^rt^h^e^ran^{ce of}^t^h^at¹⁷⁹
ⁱⁿ^teⁿ^t^.”
^Fa^cilita^tioⁿ^—^“^T^h^{e g}^o^v^e^rⁿ^m^eⁿ^t^m^u^{st p}^r^o^v^{e (}¹⁾ⁱⁿ^ter^s^{tate tr}^av^{el o}^r^u^s^{e o}^f^anⁱⁿ^ter^s^ta^te
^f^acilit^y^;⁽²⁾^wⁱ^t^h^t^h^{e in}^ten^t^to^{. . . p}^r^o^m^o^t^{e . . . an}^uⁿ^la^w^f^u^l^activ^it^y^aⁿ^d⁽³⁾^f^o^llo^w^e^d^b^y¹⁸⁰
^perf^orm^aⁿ^{ce or at}^t^e^m^p^t^e^{d perform}^aⁿ^{ce of}^act^sⁱⁿ^f^u^rt^h^e^ran^c^e^of^t^h^{e un}^l^a^w^f^ul^actⁱ^vⁱ^t^y^.^”
^{Violence—“}^T^o^pr^ov^{e a v}ⁱ^olation^of^th^{e T}^r^av^{el A}^c^{t, th}^{e g}^o^v^e^rⁿ^m^eⁿ^t^w^a^s^r^e^q^uⁱ^r^e^d^t^o^e^s^t^a^b^lⁱ^s^h
^th^at^A^j^aj^{: (}¹⁾^u^s^ed^{a f}^acilit^y^o^fⁱⁿ^ter^s^{tate o}^r^f^o^r^eⁱ^gⁿ^co^m^m^er^{ce; (}²⁾^wⁱ^thⁱⁿ^teⁿ^t^to^co^m^m^{it a}ⁿ^y
^uⁿ^l^a^w^f^u^{l acti}^v^it^y⁽ⁱⁿ^c^l^u^dⁱⁿ^g^a^r^soⁿ^.^{. .)}^{; an}^d⁽³⁾^th^er^eaf^ter^p^e^r^f^o^r^m^e^d^an^ad^d^itioⁿ^a^{l act to}¹⁸¹
^f^u^r^t^h^e^r^th^e^uⁿ^la^w^f^u^l^act^ivⁱ^t^y^.
The accused need not have been guilty of the unlawful activities that generated the distributed ¹⁸²
proceeds. “Distribution” in section 1952(a)(1) “carries a connotation of distribution of illegal
proceeds to persons in organized crime conspiracies. Certainly the person receiving them must be
entitled to them for reasons other than normal and otherwise lawful purchase and sale of goods at ¹⁸³
market prices.” Distribution, however, does include distribution to “pay off” criminal ¹⁸⁴
associates, as well as the interstate transfer of criminal proceeds to a confederate for the ¹⁸⁵
purchase of controlling interest in a bank in order to facilitate subsequent laundering. Actual
distribution is not necessary for conviction; the offense simply involves interstate commerce; an
intent to distribute; and a subsequent attempt to distribute, some action – perhaps incomplete or ¹⁸⁶
unsuccessful – in furtherance of the intent to distribute.
The dimensions of the facilitation offense are comparable. In addition to interstate travel or the
use of interstate facilities with the requisite intent, it requires the performance or attempted

¹⁷⁹^Uⁿ^ite^d^St^ate^s^v^.^Hⁱⁿ^o^jos^a^{, 95}⁸^F.^{2d 62}^{4, 62}⁹⁽⁵^th^Cⁱ^r^.¹⁹⁹²⁾^.
¹⁸⁰^Uⁿ^ite^d^St^ate^s^v^.^Nⁱ^s^h^niaⁿ^idz^e^,³⁴^{2 F.}^3d^6,¹⁵⁽¹^st^Cⁱ^r^.²⁰⁰³⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^W^e^lc^h^,³²^{7 F.}^3d¹⁰⁸¹^,¹⁰⁹^{0 (}¹⁰^th^Cir.
²⁰⁰³⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Burⁿ^s^,²⁹^{8 F.}^3d⁵^23,⁵^{37 (}⁶^th^Cⁱ^r^.²⁰⁰²⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^Xioⁿ^g^,²⁶^{2 F}^.³^d⁶⁷²^,⁶⁷^{6 (}⁷^th^Cir.^th^th
²⁰⁰¹⁾^;^Uⁿⁱ^t^e^{d S}^t^a^t^{es v.}^Ja^mes^,²¹⁰^F^.³^d¹³⁴²^,¹³⁴⁵⁽¹¹^Cⁱ^r^.²⁰⁰⁰⁾^;^Uⁿ^ite^d^St^ate^s^v^.^B^ank^s^t^oⁿ^,¹⁸²^F^.^3d²⁹^6,³¹^{5 (}⁵
^Cⁱ^r^.¹⁹⁹⁹⁾^.
¹⁸¹^Uⁿ^ite^d^St^ate^s^v^.^S^a^lam^e^h^{, 1}⁵²^F.^3d^88,¹^{52 (}²^d^Cⁱ^r^.¹⁹⁹⁸⁾^;^{see a}^l^s^o^,^Unⁱ^t^ed^S^t^a^t^es^v.^A^l^-A^ri^an^{, 30}^{8 F.Su}^pp^.2^d¹³²²^,
¹³⁵^{3 (}^M^.D^Fla^.²⁰⁰⁴⁾^.
¹⁸²^Uⁿ^ite^d^St^ate^s^v^.^C^o^r^o^na^,⁸⁸^{5 F}^.^2d⁷⁶⁶^,⁷⁷³⁽¹¹^th^Cⁱ^r^.¹⁹⁸⁹⁾^.
¹⁸³^Uⁿ^ite^d^St^ate^s^v^.^Li^ghtf^o^o^t^{, 50}⁶^F.^{2d 23}^{8, 24}²⁽^D^.C^.^Cⁱ^r^.¹⁹⁷⁴⁾^;^Unⁱ^t^ed^S^t^a^t^{es v.}^Col^e^,⁷^{04 F.}^{2d 55}^{4, 558}⁽¹¹^th^Cir.
¹⁹⁸³⁾^.
¹⁸⁴^Uⁿ^ite^d^St^ate^s^v^.^Li^gn^ar^ol^o^{, 77}⁰^F^.^{2d 97}^{1, 98}⁰⁽¹¹^th^Cⁱ^r^.¹⁹⁸⁵⁾^.
¹⁸⁵^Uⁿ^ite^d^St^ate^s^v^.^C^o^r^o^na^{, 8}⁸⁵^F.²^d^a^t⁷⁷⁴⁽^“^R^a^y^C^o^r^ona^he^lpe^d^Fe^rⁿ^a^nde^z^b^u^y^c^ontr^o^lli^ngⁱⁿ^te^r^e^s^tⁱⁿ^a^ba^nk^u^nde^r
^e^x^trem^e^l^y^dis^hone^s^t^cⁱ^rc^um^s^t^aⁿ^c^e^s^w^{ith la}^unde^re^d^dr^ug^m^oney^.^Suc^h^a^purc^h^a^s^e^is^{in re}^a^lity^pa^{rt of}^the^la^un^de^ring
^p^r^o^cess.^F^o^r^hⁱ^{s r}^o^l^eⁱⁿ^t^h^{e p}^u^r^c^h^{ase an}^dⁱⁿ^runⁿⁱⁿ^g^t^h^e^b^aⁿ^k^f^o^{r F}^e^rn^an^d^ez,^Ray^recei^ved^{a p}^e^rcen^t^a^g^e^o^wⁿ^e^rshⁱ^p
^w^ithout^pa^yⁱ^ng^aⁿ^y^of^the^pur^c^h^a^s^e^pr^ic^e^.^Iⁿ^e^s^s^e^nc^e^,^Fe^rⁿ^aⁿ^de^z^b^o^u^g^h^{t t}^h^e^ba^nk^w^{ith dr}^ug^pr^o^ceed^{s an}^d^{gave a p}^o^r^tⁱ^oⁿ
^of^{it to R}^a^y^.^{. . . A}^lth^oug^{h R}^a^y^C^o^r^ona^w^a^s^the^r^e^cⁱ^pieⁿ^t,^heⁿ^one^t^h^e^l^e^s^s^w^a^s^r^e^s^pons^ible^u^nde^r^{18 U}^.^S.C^.²^a^s^prⁱⁿ^cⁱ^pa^l
ⁱⁿ^t^h^{e d}ⁱ^st^ri^b^u^tⁱ^oⁿ^o^f^t^h^e^p^r^o^ceed^s^”^).
¹⁸⁶^Uⁿ^ite^d^St^ate^s^v^.^W^e^lc^h^,³^{27 F.}^{3d 108}^{1, 10}⁹¹⁽¹⁰^th^Cⁱ^r^.²⁰⁰³⁾^;^Uni^t^ed^S^t^a^t^{es v.}^Joⁿ^e^s^,⁹⁰^{9 F}^.²^d⁵³³^,⁵³⁹^(D^{.C. Cir}^.
¹⁹⁹⁰⁾^.

performance of some subsequent overt act in furtherance of the intent to “promote, manage,
establish, carry on, or facilitate the promotion, management, establishment or carrying on” a ¹⁸⁷
predicate offense such as a business enterprise involving drug dealing. Since the statute
condemns attempt and promotion rather than commission of a predicate act, the overt act need not ¹⁸⁸
constitute a completed predicate offense.
Common to each of the three offenses is the jurisdictional element: interstate or foreign travel or
the use of the mail or some other facility of interstate or foreign travel. When the act’s
jurisdictional element involves mail or facilities in interstate or foreign commerce, rather than ¹⁸⁹¹⁹⁰
interstate travel, evidence that a telephone was used, or an ATM, or the facilitates of an ¹⁹¹¹⁹²
interstate banking chain will do. The government is not required to show that the defendant
used the facilities himself or that the use was critical to the success of the criminal venture. It is ¹⁹³
enough that he caused them to be used and that their employment was useful for his ¹⁹⁴
purposes.
Predicate offenses (unlawful activity) are likewise common to the Travel Act’s proceeds
distribution, violence in furtherance, and promotional offenses. The Travel Act’s predicate
offenses come in three stripes – money laundering offenses; extortion-bribery-arson offenses; and
offenses of gambling, prostitution, drug dealing, and bootlegging “businesses.” The money

¹⁸⁷^Uⁿ^ite^d^St^ate^s^v^.^Burⁿ^s^,²⁹^{8 F}^.³^d⁵²³^,⁵³^{8 (}⁶^th^Cⁱ^r^.²⁰⁰²⁾⁽^“^B^y^a^s^s^o^cⁱ^a^ting^w^{ith G}^r^ee^{n in K}^e^nt^uc^ky^and^by^r^e^m^a^ining
ⁱⁿ^t^h^{e car t}^h^at^G^r^eenⁱⁿ^t^e^nd^ed^t^o^{use t}^o^l^{eave t}^h^{e scen}^{e o}^f^t^h^{e d}^r^u^g^s^a^l^e^at^t^h^{e New}^p^o^r^t^b^a^r^[^f^o^l^l^o^wⁱⁿ^g^t^h^ei^{r t}^rⁱ^p^f^r^o^m
^Ohⁱ^o^]^,^Jo^rdoⁿ^p^l^aced^hⁱ^m^s^el^fⁱⁿ^t^h^{e p}^o^sⁱ^tⁱ^oⁿ^t^o⁽¹⁾^recei^{ve i}^m^m^e^dⁱ^at^{e p}^a^ymen^t^f^r^o^m^G^r^een^a^f^t^e^{r t}^h^{e sal}^eⁱⁿ^Ken^t^u^c^ky^,
^{(2) pr}^ov^ide^surv^e^illa^nc^e^su^pp^ort,^a^{nd (3)}^p^h^y^s^ic^a^l^l^y^aⁱ^{d G}^r^e^eⁿ^shou^{ld a}ⁿ^y^da^ng^e^r^a^r^ise^.^T^{hus, Jord}^on^a^c^t^e^d^{, w}^h^ileⁱⁿ^th
^K^e^ntuc^ky^{, in f}^u^r^t^he^r^a^nc^e^of^theⁱⁿ^te^nde^d^unla^w^f^u^{l a}^c^t^the^r^e^”⁾^;^Unⁱ^t^ed^S^t^a^t^{es v.}^Ha^rri^s^,⁹⁰^{3 F.}^2d⁷^70,⁷⁷^{3 (}¹⁰^Cir.
¹⁹⁹^0)(“^the^ille^g^a^{l a}^c^tiv^it^y^c^h^a^r^g^e^{d w}^a^{s posse}^{ssion of}^m^a^rijuaⁿ^a^wⁱ^{th i}ⁿ^te^nt^to^distri^bute^.^De^f^e^nda^{nt t}^r^a^v^e^l^e^d^into
^O^k^la^hom^a^f^r^o^m^Ma^r^y^la^{nd, Vir}^gⁱⁿ^ia^{, a}^{nd T}^e^nne^s^s^e^e^.^H^e^pe^r^f^or^m^e^{d v}^a^rⁱ^ous^ov^e^r^{t a}^c^t^s^{in f}^u^r^t^he^r^a^nc^e^o^f^the^c^rⁱ^m^e
^c^h^a^r^g^e^{d a}^f^t^e^{r a}^rrivⁱ^ng^{in Ok}^la^ho^m^a^{, inc}^l^ud^ing^p^o^sse^ssing^a^nd^traⁿ^sporti^ng^a^qua^ntity^of^m^a^rijuaⁿ^a^w^{ith the}^inte^{nt t}^o
^distrib^u^te^it”^).
¹⁸⁸^Uⁿ^ite^d^St^ate^s^v^.^W^e^lc^h^,³^{27 F.}^{3d 108}^{1, 10}⁹²⁽¹⁰^th^Ci^r.²⁰⁰³^{) (“an}ⁱⁿ^dⁱ^vi^du^al^m^a^y^vi^o^l^at^{e t}^h^{e T}^r^a^v^el^A^c^t^si^m^p^l^y^b^y
^at^t^e^m^p^tⁱⁿ^{g t}^o^p^e^rf^o^r^m^{a sp}^eci^fⁱ^ed^‘uⁿ^l^aw^f^u^l^act^{’ so}^l^ong^a^s^tha^tⁱⁿ^di^vⁱ^dua^{l ha}^{s t}^h^e^re^qu^isite^inte^nt”⁾^;^Uⁿ^ite^{d State}^s^v^.^th
^Burns^,²⁹^{8 F}^.³^d⁵²³^,⁵^37-³⁸⁽⁶^{Cir. 2}⁰⁰²⁾⁽ⁱⁿ^t^e^r^na^{l c}^ita^tio^{ns a}ⁿ^{d q}^uota^tⁱ^{on m}^a^rk^{s om}^itte^d)(“^the^Zoli^c^o^ffe^r^c^our^{t m}^a^de
^c^l^e^a^r^tha^t^{its h}^o^ld^ing^sh^oul^{d n}^o^t^b^e^inte^rpre^te^d^{to sa}^y^tha^t^the^g^o^v^e^rnm^e^nt^m^u^st^prov^e^tha^t^the^de^f^e^nda^{nt c}^o^m^m^itte^{d a}ⁿ
^ille^g^a^{l a}^c^t^a^f^te^{r the}^tra^v^e^l^{, but}^onl^y^tha^t^a^plaⁱ^{n re}^a^d^ing^of^the^sta^t^ut^e^show^{s tha}^t^{it m}^u^{st prov}^e^som^e^c^ond^uc^{t a}^f^te^{r the}
^tra^v^e^l^{in f}^u^rthe^ra^nc^e^of^the^uⁿ^la^wf^{ul a}^c^tiv^it^y^”^).
¹⁸⁹^Uⁿ^ite^d^St^ate^s^v^.^Nⁱ^s^h^niaⁿ^idz^e^,³⁴^{2 F.}^3d^6,¹⁵⁽¹^st^Cⁱ^r^.²⁰⁰³⁾^;^Uⁿⁱ^t^e^d^S^t^a^t^{es v.}^B^a^ker^,²²⁷^F.^3d⁹⁵^5,⁹⁶²⁽⁷^th^Cir.
²⁰⁰⁰⁾^;^Uⁿⁱ^t^e^{d S}^t^a^t^{es v.}^Jen^kiⁿ^s^{, 9}^{43 F.2}^d¹⁶^{7, 172}⁽²^d^Cⁱ^r^.¹⁹⁹¹⁾^;^Uⁿ^ite^d^State^s^v^.^G^r^ah^am^{, 8}⁵⁶^F.²^d⁷^56,⁷^60-^{61 &}^th
^{n.1 (}⁶^Cⁱ^r^.¹⁹⁸⁸⁾^.
¹⁹⁰^Unⁱ^t^e^d^S^t^a^t^{es v.}^B^a^ker^{, 82 F.3}^d²^{73, 27}⁵⁽⁸^th^Cⁱ^r^.¹⁹⁹⁶⁾^.
¹⁹¹^Uⁿ^ite^d^St^ate^s^v^.^Ro^ge^r^s^{, 3}⁸⁷^F.3^d⁹^25,⁹^{35 (}⁷^th^Cⁱ^r^.²⁰⁰⁴⁾^;^Uⁿⁱ^t^e^{d S}^t^at^{es v.}^A^u^erba^ch^,⁹¹^{3 F}^.²^d⁴⁰⁷^,⁴¹^{0 (}⁷^th^Cir.
¹⁹⁹⁰⁾^.
¹⁹²^Of^c^ourse^{, inte}^rsta^te^tra^v^e^l^a^{nd i}ⁿ^te^rsta^te^shipm^e^{nt w}^{ill do a}^s^w^e^ll^Uⁿ^ite^{d State}^s^v^.^Xioⁿ^g^,²⁶²^F.^3d⁶⁷²^{, 6}⁷⁶⁽⁷^th^Cir.
²⁰⁰¹⁾^;^cf^.^,^E^r^l^e^nb^au^gh^v.^Uⁿⁱ^t^e^d^S^t^a^t^es^,⁴⁰^{9 U}^.^S^.²³⁹^,⁽¹⁹⁷²⁾^.
¹⁹³^Unⁱ^t^e^d^S^t^a^t^{es v.}^B^a^ker^{, 82 F.3}^d^a^t²⁷^5;^Uⁿⁱ^t^e^d^S^t^a^t^{es v.}^A^u^erba^ch^,⁹¹³^F.^2d^a^t⁴^10.
¹⁹⁴^Unⁱ^t^e^d^S^t^a^t^{es v.}^B^a^ker^{, 82 F.3}^d^a^t²⁷^5-⁷⁶^;^Uⁿ^ite^d^St^ate^s^v^.^M^c^N^e^al^{, 77}^F.^3d⁹^38,⁹⁴^{4 (}⁷^th^Cⁱ^r^.¹⁹⁹⁶⁾^;^Uⁿ^ite^{d St}^ate^s
^v^.^H^ouli^h^aⁿ^,⁹²^F.^3d¹²⁷¹^{, 1}²⁹²⁽¹^st^Cⁱ^r^.¹⁹⁹⁶⁾^.

laundering predicate offenses include sections 1956 and 1957 as well as the currency transaction ¹⁹⁵
reporting offenses.
The second class of Travel Act predicate offenses consists simply of the crimes of extortion,
bribery or arson committed in violation of state or federal law, 18U.S.C. 1952(b)(2). The terms
“extortion,” “bribery,” and “arson” as they appear in the Travel Act are generic; they mean what
they were commonly understood to mean when the Travel Act was enacted, even if the common
law definition is more restrictive or if the state law which proscribes them uses a different ¹⁹⁶
name.
The final class of Travel Act predicates is more restrictive. It encompasses gambling, prostitution,
drug dealing and certain forms of tax evasion only when committed in conjunction with a ¹⁹⁷
“business enterprise.” A criminal business enterprise, as understood in the Travel Act,
“contemplates a continuous course of business – one that already exists at the time of the overt
act or is intended thereafter. Evidence of an isolated criminal act, or even sporadic acts, will not ¹⁹⁸
suffice,” and it must be shown to be involved in an unlawful activity outlawed by a specifically ¹⁹⁹
identified state or federal statute.
Attempt is not a separate Travel Act offense, but accomplice and coconspirator liability, discussed ²⁰⁰
earlier, apply with equal force to the Travel Act.
The distribution and facilitation offenses of the Travel Act, 18 U.S.C. 1952(a)(1) and 18 U.S.C. ²⁰¹
1952(a)(3), are punishable by imprisonment for not more than five years; the crime of violence

¹⁹⁵^{18 U}^.^S.C.¹⁹⁵²^(b)(^3)(“^aⁿ^y^a^c^t^whic^{h is i}ⁿ^dⁱ^c^t^a^b^le^u^nde^{r s}^ubc^ha^pte^r^{II of}^c^h^a^p^te^{r 5}³^of^title³¹^{, Uni}^t^e^d^Sta^t^e^s^Co^de^,
^{or u}^nde^{r se}^c^tioⁿ¹⁹⁵⁶^or¹⁹^{57 of}^this^title^”⁾^;^Uⁿⁱ^t^e^d^S^t^at^{es v.}^Jen^ki^ns^,⁹⁴³^F.^2d¹⁶^7,¹⁷^{3 (}²^d^Cⁱ^r^.¹⁹⁹¹⁾^;^Uⁿ^tⁱ^e^d^State^s
^v.^A^l^-A^ri^an^,³⁰^{8 F.}^Su^pp^.2^{d 1}³²²^,¹³⁵^{3 (}^M^.D^.Fla^.²⁰⁰⁴⁾^.
¹⁹⁶^Uⁿ^ite^d^St^ate^s^v^.^N^a^r^d^e^l^l^o^,³⁹^{3 U}^.^{S. 2}⁸⁶^,²^94-⁹⁶⁽¹⁹⁶⁹⁾^;^Pe^r^rⁱⁿ^v^.^Uⁿ^ite^{d State}^s^,⁴⁴^{4 U}^.^S.^37,⁴⁹⁽¹⁹⁷⁹⁾^;^Sc^he^idle^r
^v.^NOW^{, 53}^{7 U}^.^S.³^93,⁴^09-^{10 (}²⁰⁰³⁾^.
¹⁹⁷^{18 U}^.^S.C^.¹⁹⁵²⁽^b⁾⁽¹⁾^;^Un^ite^d^Sta^t^e^s^v^.^Daile^y^{, 2}⁴^F.^3d¹³²³^,¹³²⁸⁽¹¹^th^Cⁱ^r^.¹⁹⁹⁴⁾⁽^“^C^o^ng^r^e^s^s^c^hos^e^{to a}^tta^c^k
^or^g^a^niz^e^d^c^r^im^e^thr^oug^{h s}^e^le^c^tiv^e^l^y^defⁱ^ning^the^te^r^m^‘^unla^w^f^u^{l a}^c^tiv^it^y^.^’^C^ong^r^e^s^s^m^a^de^c^e^r^ta^{in of}^f^e^ns^e^s^{in a}^r^e^a^s
^ty^pic^a^l^l^y^a^ssocⁱ^a^t^e^d^w^{ith org}^a^niz^e^d^c^r^im^e^,^i.e^{., g}^a^m^b^ling^,^liq^uor^{, na}^rc^otic^{s, a}ⁿ^d^pr^ostitutⁱ^oⁿ^{, ‘}^unla^w^f^u^{l a}^c^tiv^itie^{s’ only}^if
^en^g^a^g^e^dⁱⁿ^b^y^{a ‘b}^u^sⁱⁿ^{ess en}^terp^ri^se’”).
¹⁹⁸^Uⁿ^ite^d^St^ate^s^v^.^Ro^be^r^s^oⁿ^{6 F}^.³^d¹⁰^88,¹⁰⁹⁴⁽⁵^th^Cⁱ^r^.¹⁹⁹³⁾^;^{see a}^l^so^,^Unⁱ^t^e^d^St^a^t^{es v.}^Ja^mes^{, 21}⁰^F^.^{3d 13}^42,¹³⁴⁵
⁽¹¹^th^Cⁱ^r^.²⁰⁰⁰⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Sage^t^{, 9}⁹¹^F.^2d⁷⁰^2,⁷¹^{2 (}¹¹^th^Cⁱ^r^.¹⁹⁹³⁾⁽^“^I^f^the^de^f^e^nda^{nt e}ⁿ^g^a^g^e^s^{in a}^c^o^ntin^uo^us
^c^our^s^e^of^c^o^c^aⁱ^ne^dis^t^rⁱ^but^io^{n r}^a^t^h^e^r^thaⁿ^a^s^por^a^d^ic^or^c^a^s^ua^{l c}^our^s^e^of^c^onduc^t,^theⁿ^the^s^t^a^t^utor^y^r^e^quir^e^m^e^{nt of}^a
^busine^{ss e}ⁿ^te^r^p^rise^inv^o^lvⁱⁿ^g^na^rc^otic^{s is sa}^tisfⁱ^e^d^”⁾^;^Uⁿ^ite^{d State}^s^v^.^I^e^nnac^o^,⁸⁹^{3 F.}^2d³^94,³^{98 (}^D^.^C^{. C}ⁱ^r^.¹⁹⁹⁰⁾^.
¹⁹⁹^Unite^d^St^ate^s^v^.^Griffin^,⁸⁵^F.^3d²⁸⁴^,²⁸^7-⁸⁸⁽⁷^th^Cⁱ^r^.¹⁹⁹⁶⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^C^a^m^p^io^ne^,⁹⁴^{2 F.}^2d⁴^29,⁴³^3-^{36 (}⁷^th
^Cⁱ^r^.¹⁹⁹¹⁾^;^Uⁿ^ite^d^State^s^v^.^J^one^s^{, 90}⁹^F.2^d⁵³^{3, 5}³⁶^-³⁹⁽^D^.C^.C^ir^.¹⁹⁹⁰⁾^.
²⁰⁰^Uⁿ^ite^d^St^ate^s^v^.^C^h^il^dr^e^s^s^{, 5}⁸^F.^{3d a}^t⁷²^{1 (}^D^.C^.C^ir^.¹⁹⁹⁵⁾⁽^c^iti^ng^t^h^e^Pⁱⁿ^kert^oⁿ^pr^incⁱ^p^l^e^of^c^o^c^ons^pⁱ^ra^{tor lia}^b^ility^);
^{see a}^l^so^,^Unⁱ^t^ed^S^t^a^t^es^v.^A^u^erba^ch^,⁹¹^{3 F}^.²^d^at⁴¹⁰⁽⁷^th^{Cir. 1}⁹⁹⁰⁾^(c^oc^onspira^t^o^{r lia}^bility^);^Uⁿ^ite^d^S^t^ate^s^v^.^Ro^ge^r^s^,^th
³⁸⁷^F.^3d⁹^25,⁹³^{5 (}⁷^Cⁱ^r^.²⁰⁰⁴⁾⁽^“^T^o^m^e^e^t^its^bur^deⁿ^on^the^a^lle^g^e^{d v}ⁱ^ola^tⁱ^ons^of^{18 U}^.^S.C^.^{2 a}ⁿ^{d 1}⁹⁵²^{, t}^h^e
^g^o^v^e^rⁿ^m^e^{nt ha}^{d t}^o^s^h^ow^tha^t^Mr^.^O^w^e^ns^k^now^ing^l^y^aⁱ^de^{d a}^{nd a}^b^e^t^t^e^{d a}^not^he^r^pe^r^s^oⁿ^sⁱⁿ^te^r^s^ta^te^tr^a^v^e^l^w^{ith the}^inte^nt
^of^pr^om^oting^the^[^d^r^u^g^tr^a^f^fⁱ^ck^ing]^of^f^e^ns^e”⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^Le^e^,³⁵⁹^F.^3d¹^94,²⁰^{9 (}³^d^Cⁱ^r^.²⁰⁰⁴⁾⁽^a^iding^aⁿ^d^th
^a^b^e^tting⁾^;^Uⁿ^ite^{d S}^t^ate^s^v^.^Sto^t^t^{, 2}^{45 F.3}^d⁸⁹^{0, 909}⁽⁷^Cⁱ^r^.²⁰⁰¹⁾⁽^a^iding^aⁿ^{d a}^b^e^tti^ng⁾^;^Uⁿ^ite^{d S}^t^ate^s^v^.^Par^d^ue^{, 98}³^th^th
^F^.^2d⁹⁴^3,⁹⁴⁵^-⁴⁶⁽⁸^Cⁱ^r^.¹⁹⁹³⁾⁽^a^iding^aⁿ^{d a}^b^e^tti^ng⁾^;^Uⁿ^ite^{d S}^t^ate^s^v^.^Dⁱ^s^c^hne^r^,⁹⁷^{4 F}^.²^d¹⁵⁰²^,¹⁵²¹⁽⁹^Cir.
¹⁹⁹²⁾⁽^a^id^ing^aⁿ^{d a}^b^e^tti^ng⁾^.

in furtherance offense is punishable by imprisonment for not more than 20 years.²⁰² Offenders of
any of the three offenses are subject to a fine of the greater of not more than $250,000 ($500,000 ²⁰³
for organizations) or twice the gain or loss associated with the offense. The offense level for a
section 1952 offense is the greater of 6 or the offense level for the predicate offense (most of ²⁰⁴
which are higher than 6). Under the sentencing guidelines, first time offenders are eligible for ²⁰⁵
probation up to offense level 8. If imprisoned, offenders may also be subject to a term of
supervised release of up to three years to be served upon their release from prison, 18 U.S.C.

3583. Property associated with a violation of section 1952 is not subject to confiscation solely by ²⁰⁶

virtue of that fact, although the property may be confiscated by operation of the laws governing
section 1952 predicate offense. For example, interstate travel conducted with the intent to
distribute drug trafficking proceeds involving an act in furtherance of that intent is a violation of
section 1952. The proceeds are not subject to forfeiture as a consequence, but they are subject to ²⁰⁷
confiscation by operation of the forfeiture provisions of the Controlled Substances Act.
Section 5322 penalizes willful violation of several monetary transaction reporting requirements ²⁰⁸
found in Subtitle 53-II of title 31 of the United States Code and elsewhere. The section’s
coverage extends to violations of:
^-^{31 U}^.^S^.^C^.^5313—^fⁱⁿ^aⁿ^cⁱ^a^lⁱⁿ^s^tⁱ^t^u^tⁱ^oⁿ^report^s^of^cas^h^t^r^aⁿ^s^actⁱ^oⁿ^sⁱⁿ^v^o^l^vⁱⁿ^g^$10,00^{0 or}
^m^o^{re (31 C}^.^F^.^R^.^§103.22^);
^-^{31 U}^.^S^.^C^.^5314—^re^port^s^by^pers^on^sⁱⁿ^t^h^{e U}^.^S^.^of^f^o^rei^gⁿ^fiⁿ^aⁿ^cⁱ^a^l^ag^en^cy^t^r^aⁿ^s^a^c^tⁱ^oⁿ^s⁽³¹
^C^.^F^.^R^.^§103.24^);
^-^{31 U}^.^S^.^C^.^5316—^re^port^s^by^any^pers^on^t^a^kⁱ^ng^$10,000ⁱⁿ^cas^h^ou^t^of^t^h^{e U}^.^S^.^{or bri}ⁿ^gⁱ^tⁱⁿ^;
^-^{31 U}^.^S^.^C^.^5318—^s^u^s^pⁱ^cⁱ^ous^t^r^an^s^actⁱ^oⁿ^report^s^b^y^fiⁿ^aⁿ^cⁱ^a^lⁱⁿ^s^tⁱ^t^u^tⁱ^oⁿ^s^;
^-^{31 U}^.^S^.^C^.^5318A^—^s^peci^al^meas^u^r^es^{record k}^eepiⁿ^g^an^{d re}^port^s^by^fⁱⁿ^aⁿ^cⁱ^a^lⁱⁿ^s^tⁱ^t^u^tⁱ^ons
^r^e^l^a^tⁱⁿ^{g t}^o^fo^r^eⁱ^g^{n c}^o^uⁿ^t^e^r^—^m^o^ne^y^l^a^und^e^rⁱ^{ng c}^o^nc^e^r^ns;
^-^{31 U}^.^S^.^C^.^5325—^rep^o^rt^s^by^fⁱⁿ^aⁿ^cⁱ^a^lⁱⁿ^s^tⁱ^t^u^tⁱ^onsⁱ^s^s^uⁱⁿ^g^c^a^s^hⁱ^e^r^’^s^c^h^ecksⁱⁿ^a^m^oun^t^s^of
^$300^{0 or}^m^o^{re (31 C}^.^F^.^R^.^§10^3.29);

^(...c^on^tin^ue^d)
²⁰¹¹⁸^U^.^S.C.¹⁹⁵²^(a)(A⁾
²⁰²¹⁸^U^.^S.C.¹⁹⁵²^(a)(B).
²⁰³^{18 U}^.^S.C^.³⁵⁷¹^,³⁵^59.
²⁰⁴^U^.^S.S.G^.^§²^E1^.2.^T^h^e^of^f^e^ns^e^leve^{l f}^o^r^m^oney^la^unde^rⁱ^ng^is^{8 (}^a^t^a^mⁱⁿⁱ^m^u^m⁾^{, U}^.^S.S.G^.^§2^S1.¹^;^br^ib^e^r^y^is^10,
^U.S.S.G^.^§2C^1.^{1; c}^o^m^m^e^r^cⁱ^a^l^g^a^m^b^ling^{is 12, U}^.^S.S^.^G^.^§2E^3.1;^pr^ostitutⁱ^oⁿ^is^{14 (a}^{t a}^mⁱ^nim^u^m⁾^{, U}^.^S.S.G^.^§²^G¹^.1.
²⁰⁵^U.^S^.^S^.^G^.^§5^B1^.¹^,^S^eⁿ^t^en^ciⁿ^g^T^a^b^l^e.^S^o^m^e^o^f^f^eⁿ^d^e^rs^wⁱ^t^h^{a cri}^mⁱⁿ^al^reco^rd^and^{a rel}^a^tⁱ^v^{e l}^o^w^o^f^f^eⁿ^s^{e l}^e^vel^(l^ev^el⁹
^{or low}^e^{r) m}^a^y^be^e^lig^ible^f^o^{r a}^{split se}^nteⁿ^c^e^tha^t^inv^o^lv^e^s^a^mⁱ^x^of^pro^b^a^tio^{n a}ⁿ^d^the^se^rv^ic^e^of^som^e^pe^rio^d^of
^coⁿ^fⁱⁿ^emen^t^,^id^.
²⁰⁶^{18 U}^.^S.C^.¹⁹⁵²^,⁹⁸^1,⁹⁸^2.
²⁰⁷^{21 U}^.^S.C^.⁸^53,⁸^81.
²⁰⁸^T^h^e^te^x^t^of^{31 U}^.^S.C^.⁵³²²^is^a^p^pe^nde^d^.

^-^{31 U}^.^S^.^C^.^5326—^cas^h^t^r^ans^a^ctⁱ^oⁿ^report^s^by^fⁱⁿ^aⁿ^cⁱ^a^lⁱⁿ^s^tⁱ^t^u^tⁱ^ons^an^d/^{or v}^a^ri^ous^t^r^ades^or
^bu^sⁱⁿ^e^s^s^e^s^pu^rsu^aⁿ^t^t^o^T^r^eas^u^r^y^D^e^part^m^eⁿ^t^g^e^o^g^raphⁱ^cal^orders^{(31 C}^.^F^.^R^.^§1^03.2⁶^);
^-^{31 U}^.^S^.^C^.^5331—^rep^o^rt^s^of^t^r^ades^an^{d bu}^sⁱⁿ^e^s^s^e^s^ot^h^e^{r t}^h^aⁿ^fⁱⁿ^aⁿ^cⁱ^a^lⁱⁿ^s^tⁱ^t^u^tⁱ^oⁿ^s^of^ca^s^h
^t^r^an^s^actⁱ^oⁿ^sⁱⁿ^v^o^l^vⁱⁿ^g^$10,00^{0 or m}^o^{re (31 C}^.^F^.^R^.^§10^3.3⁰⁾^;
^-^{12 U}^.^S^.^C^.¹⁸²⁹^b—^recor^d^k^eepiⁿ^g^requⁱ^r^e^m^en^t^s^of^f^e^deral^l^yⁱⁿ^s^u^r^e^d^d^e^p^o^sⁱ^t^o^r^yⁱⁿ^s^tⁱ^t^u^tⁱ^oⁿ^s^;
^-^{12 U}^.^S^.^C^.^1953—^recor^d^k^eepⁱⁿ^g^b^y^unⁱⁿ^su^{red ban}^k^s^{or s}ⁱ^mi^l^a^{r i}ⁿ^s^tⁱ^t^u^tⁱ^oⁿ^s^.
Section 5322 does not cover violations of section 5315 (relating to foreign currency transaction
reports) which are subject to the civil penalty provisions of 31 U.S.C. 5321 or of section 5324
(relating to structuring financial transactions) which carries its own criminal penalties.
Simple violations of section 5322 are punishable by imprisonment for not more than five years, a ²⁰⁹
fine of not more the $250,000, or both. Violations committed during the commission of another
federal crime or as part of a pattern of illegal activity involving more than $100,000 over the
course of a year are punishable by imprisonment for not more than 10 years; a fine of not more
than $500,000 (not more than $1 million for a special measures violation (31 U.S.C. 5318A) or a
violation involving a breach of due diligence with respect to private banking for foreign ²¹⁰
customers or foreign shell banks (31 U.S.C. 5318(i), (j)); or both.
In order to establish “willful” violation of section 5322, the government must prove that the ²¹¹
accused knew that his breach of the statute was unlawful.
Section 5322 is a Travel Act predicate offense. It is also RICO predicate offense,²¹² consequently ²¹³
a section 1956 or 1957 money laundering predicate offense. Property associated with violations ²¹⁴
of two of the sections within its coverage is subject to confiscation. Under section 5317(c)
property becomes forfeitable when it is involved in, or traceable to, a violation of 31 U.S.C. 5313
(reports relating to cash transactions involving $10,000 or more) or of 31 U.S.C. 5316 (reports
relating to taking $10,000 or more out of the U.S. or to bring it into the U.S.). The confiscation, ²¹⁵
however, may be subject to a constitutional excessive fine limitation. In United States v. ²¹⁶
Bajakajian, the Supreme Court held that the confiscation of $357,144 for a violation of 31
U.S.C. 5322 occasioned by a failure to comply with the reporting requirements of 31 U.S.C. 5316
would constitute an unconstitutionally excessive fine—in the absence of evidence that the money
was derived from, or destined to facilitate, some other criminal activity. In later cases involving
the failure to report transported cash, the courts have occasionally ordered confiscation of less ²¹⁷
than all of the unreported cash if the total was substantial and the cash was otherwise untainted.

²⁰⁹³¹^U^.^S^.^C^.⁵³²²⁽^a⁾^.
²¹⁰³¹^U^.^S.C.⁵³²²^(b^),^(d^).
²¹¹^Ratzl^a^{f v}^.^Uⁿ^ite^d^Sta^t^e^s^{, 5}^{10 U}^.^S^.¹³^5,¹³^{7 (}¹⁹⁹⁴⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^Tat^o^y^aⁿ^,⁴⁷^{4 F.}^3d¹¹⁷⁴^,¹¹^{77 (}⁹^th^Cⁱ^r^.²⁰⁰⁷⁾^.
²¹²^{18 U}^.^S.C^.¹⁹⁵²⁽^b⁾⁽³⁾^,¹⁹⁶¹⁽¹⁾⁽^E⁾^.
²¹³¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^)(A^{), 1}⁹⁵⁷⁽^f⁾⁽³^).
²¹⁴³¹^U^.^S^.^C^.⁵³¹⁷⁽^c⁾^.
²¹⁵^Uⁿ^ite^d^St^ate^s^v^.^Baj^a^k^a^jⁱ^aⁿ^,⁵²⁴^U.^S^.³²^1,³²^{4 (}¹⁹⁹⁸⁾^.
²¹⁶⁵²⁴^U.^S.³²^1,³²^{4 (}¹⁹⁹⁸⁾^.
²¹⁷^Uⁿ^ite^d^St^ate^s^v^.^$¹⁰⁰^,3⁴⁸^.0⁰^,³⁵^{4 F.}^3d¹¹¹⁰^,¹¹²^3-¹²^{4 (}⁹^th^Cⁱ^r^.²⁰⁰³⁾⁽^a^f^f^ir^mⁱ^ng^the^c^onf^is^c^a^{tion of}^$1^0,0⁰⁰^of^the
^$10^0,³⁴^{8 or}^ig^ina^lly^s^e^iz^e^d⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^Be^r^a^s^,¹⁸³^F.^3d²²^,²⁸⁽¹^st^Cⁱ^r^.¹⁹⁹⁹⁾⁽^o^v^e^r^t^ur^ning^a^s^aⁿ^e^x^c^e^s^sⁱ^ve^fⁱ^ne^the
^f^o^rfeitu^{re o}^r^d^e^{r f}^o^{r $}¹³⁸^,⁷⁹⁴ⁱⁿ^uⁿ^rep^o^r^te^d^cash⁾^;^Uⁿ^ite^d^State^s^v^.^Oⁿ^e^H^uⁿ^d^r^e^{d a}ⁿ^d^Tw^eⁿ^ty^T^h^o^u^s^a^{nd E}ⁱ^g^h^{t H}^u^ndr^e^d
⁽^c^onti^nue^d.^..)

In most instances, however, Bajakajian appears to pose little obstacle to complete or near ²¹⁸
complete forfeiture.
When Congress established the general anti-structuring provisions of section 1956 in 1986,²¹⁹ it ²²⁰
also created a more specific anti-structuring offense, 31 U.S.C. 5324. Prior to that time, it was a ²²¹
crime for a financial institution to fail to report a cash transaction involving more than $10,000.
Yet there was no explicit prohibition against an individual breaking a transaction into several
smaller transactions in order to avoid triggering the bank’s reporting requirement, although such ²²²
structuring could sometimes be prosecuted as a conspiracy to defraud the federal government.
From the beginning, section 5324 condemned causing the failure to file a required report, causing
the submission of a false report, structuring transactions to evade a reporting requirement, or ²²³
attempting to do so. Its growth over the years has been the product primarily of protecting a
wider range of reporting systems than was originally the case. Its proscriptions are now divided
into three sections according to the type of reporting or record keeping involved: one is devoted
to transactions involving banks, credit unions, car dealerships, jewelers, casinos, and the other ²²⁴
twenty-seven entities classified as financial institutions; another to cash transactions of $10,00

^(...c^on^tin^ue^d)
^and^Fifty^Six^Dol^l^ars^,³⁹^{4 F}^.^Su^pp^.2d⁶⁸^7,⁶⁹^2-⁹⁶⁽^D^.^V^.I^{. 2}⁰⁰⁵⁾⁽^h^ol^ding^t^h^a^t^c^onf^is^c^a^tion^of^m^o^r^e^thaⁿ^$⁷⁵⁰⁰^of^the
^unr^e^p^or^te^d^$1²⁰^,8^{56 w}^oul^{d c}^o^ns^t^itute^aⁿ^e^x^c^e^s^sⁱ^v^e^fⁱ^ne⁾^;^Uⁿ^ite^d^St^ate^s^v^.^$²⁹³^,3¹⁶^,³⁴^{9 F}^.^Su^pp^.2^d⁶³⁸^,⁶⁵^{0 (}^E^.^D^.^N^.^Y^.
²⁰⁰⁴⁾⁽^o^r^d^e^r^ing^t^h^e^c^o^nf^is^c^a^{tion o}^f^$48,⁰⁰^{0 of}^the^$4^90,⁰⁰⁰^of^unr^e^por^te^d^c^a^s^{h s}^e^iz^e^d⁾^.
²¹⁸^Uⁿ^ite^d^St^ate^s^v^.^$²⁹³^,3¹⁶^{, 3}⁴⁹^F.^Sup^p^.^{2d a}^t⁶⁴^8-⁴⁹⁽^lis^tⁱ^ng¹⁶⁸^ins^t^aⁿ^c^e^s^w^h^e^r^e^unr^e^por^te^{d c}^a^s^{h w}^a^s^f^o^r^f^e^ite^{d a}^nd
ⁿ^o^tⁱⁿ^{g t}^h^atⁱⁿ^{a vast}^m^a^j^o^ri^t^y^o^f^c^a^{ses at}^l^east⁹⁰^%^o^f^t^h^{e cash}^w^a^s^coⁿ^fⁱ^s^cat^ed^).
²¹⁹¹⁸^U^.^S.C.¹⁹⁵⁶^(a)(1^)(B)(ii),^(a)(²^{)(B)(ii), (a)(}³^)(C),^dⁱ^scu^ssed^supra^{, o}^u^tla^w^c^e^r^ta^{in f}ⁱ^na^nc^ia^{l tra}ⁿ^sa^c^{tions a}ⁿ^d
^inte^rⁿ^a^tⁱ^ona^{l m}^one^ta^r^y^tr^aⁿ^sf^e^r^s^de^sⁱ^gⁿ^e^d^{to a}^v^oid^s^t^a^t^e^or^f^e^de^r^a^{l r}^e^por^ti^ng^r^e^quir^e^m^e^nts^.
²²⁰^Both^s^e^c^tions^w^e^re^eⁿ^a^c^t^e^d^a^s^pa^{rt of}^Sub^title^I-H^(t^he^M^one^y^La^unde^ring^C^ontr^o^{l A}^c^{t of}¹⁹⁸⁶⁾^of^the^Aⁿ^ti-D^r^ug
^A^bus^e^A^c^{t of}¹⁹⁸⁶^{, ht}^tp:/^/w^w^w^.cong^r^e^s^s^.^g^o^v^/^c^g^i-^lis^/bdque^r^y^/R^?^d099:FL^D⁰⁰²^:@¹⁽⁹⁹⁺⁵⁷⁰⁾^,¹⁰^{0 Sta}^t^{. 3}²⁰⁷^-¹^8,³²^07-
^{22 (}¹⁹⁸⁶⁾^.
²²¹^{31 U}^.^S.C^.⁵³²²^,⁵³^{13 (}¹⁹⁸²^e^d^.)^.
²²²^Uⁿ^ite^d^St^ate^s^v^.^Wⁱ^nfie^l^d^,⁹⁹⁷^F.^2d¹⁰^76,¹⁰⁸²^-⁸^{3 (}⁴^th^{Cir. 1}⁹⁹³^);^Uⁿ^ite^d^State^s^v^.^N^e^r^s^e^sⁱ^an^{, 8}²⁴^F.^2d¹²^94,¹³¹³
⁽^{2d C}ⁱ^r^.¹⁹⁸⁷⁾^.^T^h^e^f^e^de^r^a^{l c}^ons^pi^r^a^cy^s^t^a^t^ute^outla^w^s^tw^{o t}^y^pe^s^of^c^ons^pir^a^c^y^{– c}^ons^pir^a^c^y^{to v}ⁱ^ola^t^e^a^nothe^r^f^e^de^r^a^l
^cri^mⁱⁿ^al^l^a^w^an^d^coⁿ^s^pⁱ^racy^t^o^d^e^f^r^au^d^t^h^{e Un}ⁱ^t^e^{d S}^t^at^es.^C^oⁿ^s^pⁱ^rac^y^t^o^d^e^f^r^au^d^t^h^{e U}ⁿⁱ^t^e^d^S^t^at^{es i}^s^t^h^{e agree}^m^en^t^t^o
^ta^k^e^s^o^m^e^a^c^{tion, w}^h^ic^{h m}ⁱ^g^h^{t othe}^r^w^is^e^be^law^f^{ul, tha}^tⁱⁿ^te^r^f^e^r^e^s^w^{ith or}^o^b^s^t^r^u^c^t^s^s^o^m^e^g^o^v^e^rⁿ^m^e^nta^l^f^unc^tioⁿ^by
^tric^k^e^r^y^{or de}^c^e^it,^Ha^mmersch^m^id^{t v.}^United^S^t^ates^{, 2}^{65 U}^.^S.¹⁸^2,¹⁸⁸⁽¹⁹²⁴⁾^.
²²³^T^h^{e sect}ⁱ^oⁿ^o^rⁱ^gⁱⁿ^al^l^y^st^at^ed^,^“N^o^p^e^rson^sh^al^l^,^f^o^{r t}^h^e^p^u^r^p^o^s^e^o^f^evadⁱⁿ^{g t}^h^{e rep}^o^r^tⁱⁿ^g^req^uⁱ^r^em^en^t^s^o^f^sectⁱ^oⁿ
⁵³¹³⁽^a)^[^r^epo^r^tⁱⁿ^g^cert^aⁱⁿ^cash^t^r^an^sactⁱ^oⁿ^s^]^wⁱ^t^h^resp^ect^t^o^su^ch^t^r^an^sactⁱ^oⁿ^{– (1}⁾^cau^{se o}^r^at^t^e^m^p^t^t^o^cau^{se a d}^o^m^estⁱ^c
^fⁱ^na^nc^ia^{l institut}ⁱ^oⁿ^t^o^f^a^{il to f}^ile^a^re^{port re}^q^u^ire^d^un^de^{r se}^c^tion⁵³^13(a⁾^{; (}²^{) c}^a^u^se^{or a}^tte^m^p^{t to}^c^a^u^se^a^dom^e^s^tic
^fⁱ^na^nc^ia^{l institut}ⁱ^oⁿ^t^o^f^ile^a^re^por^{t re}^quire^{d u}^nde^{r se}^c^tioⁿ⁵³^13(a⁾^t^h^a^t^c^ontaⁱ^{ns a}^m^a^te^ria^l^om^is^{sion o}^r^mⁱ^ssta^t^e^m^eⁿ^{t of}
^f^a^c^{t; or}⁽³⁾^s^t^r^u^c^t^ur^e^or^a^s^sⁱ^s^tⁱⁿ^s^t^r^u^c^t^urⁱⁿ^g^,^or^a^tte^m^p^{t to}^s^t^r^u^c^t^ur^e^or^a^s^sⁱ^s^t^{in s}^t^r^u^c^t^urⁱⁿ^g^,^aⁿ^y^tr^aⁿ^s^a^c^{tion w}^ith^one^or
^m^o^re^dom^e^s^tic^fⁱ^na^nc^ia^{l instituti}^oⁿ^s,”³¹^U.S.C^.⁵³²⁴⁽¹⁹^{88 e}^d^{.). T}^h^e^c^r^im^ina^l^pe^na^ltie^{s f}^o^{r w}^illf^{ul viola}^tioⁿ^of^se^c^tion
⁵³²^{4 w}^e^r^e^theⁿ^f^oun^{d i}ⁿ^s^e^c^tio^{n 5}³²²^{, 1}⁸^U^.^S.C^.⁵³²²⁽¹⁹⁸^{8 e}^d^.)^.
²²⁴^“^N^{o pe}^r^s^on^s^h^a^{ll, f}^o^r^t^h^e^p^u^r^p^os^e^of^e^v^a^d^ing^the^r^e^por^ti^ng^r^e^quir^e^m^e^nts^of^s^e^c^{tion 5}³¹³⁽^a⁾^[^c^a^s^{h tr}^aⁿ^s^a^c^tions^inv^o^l^vⁱ^ng
^$10^,0⁰⁰^or^m^o^r^e^]^or⁵³²⁵^[ⁱ^s^s^uⁱⁿ^g^c^a^s^hie^r^s^’^c^h^e^c^k^s^of^$3,000^or^m^o^r^e^]^or^aⁿ^y^r^e^g^u^la^{tion pr}^e^s^c^r^ibe^d^un^de^r^aⁿ^y^s^u^c^h^s^e^c^tⁱ^oⁿ^,
^the^r^e^por^tⁱ^ng^or^r^e^c^o^r^d^k^e^e^p^ing^r^e^quir^e^m^e^nts^im^pos^e^d^by^aⁿ^y^or^der^is^s^u^e^d^u^nde^r^s^e^c^tio^{n 5}³²⁶^[^g^e^o^g^r^a^phic^aⁿ^ti-^m^one^y
^la^unde^rⁱ^ng^r^e^quir^e^m^e^nts^]^{, or}^t^h^e^r^e^c^o^r^d^k^e^e^p^ing^r^e^quir^e^m^e^ntsⁱ^m^pos^e^d^by^aⁿ^y^r^e^g^u^la^{tion pr}^e^s^c^r^ibe^d^un^de^r^s^e^c^{tion 2}¹^o^f^t^h^e
^F^e^d^e^r^a^l^Dep^o^sⁱ^t^Iⁿ^su^r^aⁿ^{ce A}^c^t^[¹^{2 U.}^S^.^C^.¹⁸²⁹^b⁽^r^eco^r^d^keepⁱⁿ^g^by^f^e^de^r^a^ll^y^ins^u^r^e^d^de^p^o^s^itor^y^ins^tit^utio^ns⁾^]^or^s^e^c^tioⁿ¹²³
^of^P^ubl^ic^L^a^w^91-⁵⁰^{8 [}^{12 U}^.^S.C^.¹⁹⁵^{3 (}^r^e^c^o^r^d^k^e^e^p^ing^b^y^unins^ur^e^d^ins^tit^uti^ons⁾^]^{– (}¹⁾^c^a^u^s^e^or^a^ttem^p^{t to c}^a^u^s^e^a
^dom^e^s^tic^fⁱ^na^nc^ia^{l institutio}^{n to f}^a^{il to f}^ile^a^r^e^{port re}^quire^d^u^nde^r^se^c^{tion 53}^13(a⁾^{or 53}²⁵^{or a}ⁿ^y^re^g^u^la^{tion pre}^s^c^r^ibe^d
⁽^c^onti^nue^d.^..)

or more involving nonfinancial institutions;²²⁵“(3) structure or assist in structuring, or attempt to
structure or assist in structuring, any transaction with 1 or more nonfinancial trades or
businesses,” 31 U.S.C. 5324(b). and a third to bring $10,000 or more in cash into the country or ²²⁶
taking it out of the country. But the prohibitions remain the same. No person may cause the
failure to submit a required report, or cause the submission of a false report, or structure their ²²⁷
transactions to evade a reporting requirement, or attempt to do so. Violations are punishable by
imprisonment for not more than five years (not more than 10 years if committed in conjunction
with another federal offense or if committed as part of a pattern of activity involving $100,000 or
more) and a fine of not more than $250,000 (not more than $500,000 for organizations), with the
fine maximum doubled if the offense is committed in conjunction with another federal crime or ²²⁸
as part of a pattern of activity involving $100,000.
For some time, section 5324 simply housed prohibitions and Congress relied upon section 5322
to provide the criminal sanctions for violations of the section 5324 prohibitions as well as for the
other prohibitions in subchapter 53 II of title 31 of the U.S. Code. Then as now, section 5322 ²²⁹
condemned only willful violations. Congress removed section 5324 from the coverage of

^(...c^on^tin^ue^d)
^unde^r^aⁿ^y^s^u^c^h^s^e^c^{tion, t}^o^f^ile^a^r^e^por^t^or^{to m}^a^inta^{in a}^r^e^c^o^r^d^r^e^qu^ir^e^d^by^aⁿ^or^de^r^is^s^u^e^d^un^de^r^s^e^c^tⁱ^oⁿ⁵³²⁶^,^o^r^t^o^m^aⁱⁿ^t^aⁱⁿ
^a^r^e^c^o^r^d^r^e^quir^e^d^pur^s^u^aⁿ^{t to a}ⁿ^y^r^e^g^u^la^{tion pr}^e^s^c^r^ibe^d^un^de^r^s^e^c^tion^{21 of}^the^Fe^d^e^r^a^l^D^e^p^o^sⁱ^t^Iⁿ^s^u^r^aⁿ^c^e^A^c^t^o^r^s^e^c^tⁱ^oⁿ¹²³
^of^Public^L^a^w^91-⁵⁰^8;
^“⁽^{2) c}^a^u^se^{or a}^tte^m^p^{t to c}^a^u^se^a^d^o^m^e^s^tic^fⁱ^na^nc^ia^{l instit}^uti^on^to^f^ile^a^r^e^por^{t r}^e^q^u^ir^e^d^un^de^r^s^e^c^tio^{n 5}³¹³⁽^a⁾^or⁵³²⁵^or^aⁿ^y
^r^e^g^u^la^{tion pr}^e^s^c^r^ibe^d^u^nde^r^aⁿ^y^suc^h^s^e^c^{tion, to f}^ile^a^r^e^por^{t or}^{to m}^a^inta^{in a}^r^e^c^o^r^d^r^e^quir^e^{d by}^aⁿ^y^or^de^r^is^s^u^e^d^un^de^r
^s^e^c^{tion 53}^{26, or}^t^o^m^a^inta^{in a}^r^e^cor^d^r^e^quir^e^{d pur}^s^u^aⁿ^{t to a}ⁿ^y^r^e^g^u^la^{tion pr}^e^s^c^r^ibe^d^u^nde^r^s^e^c^{tion 5}³^{26, or}^{to m}^a^inta^{in a}
^r^e^c^o^r^d^r^e^quir^e^{d p}^u^r^s^ua^{nt t}^o^aⁿ^y^r^e^g^u^la^{tion pr}^e^s^c^r^ibe^d^u^nde^r^s^e^c^tion^{21 of}^the^Fe^de^r^a^{l D}^e^pos^{it I}ⁿ^s^u^r^a^nc^e^A^c^{t or}^s^e^c^{tion 123}
^of^Public^L^a^w^91-⁵⁰^{8, t}^h^a^t^c^o^ntaⁱ^ns^a^m^a^te^rⁱ^a^l^o^m^is^sⁱ^{on or}^mⁱ^s^s^t^a^t^em^eⁿ^{t of}^f^a^c^{t; or}
^“⁽³⁾^s^t^r^u^c^t^ur^e^or^a^s^sⁱ^s^tⁱⁿ^s^t^r^u^c^t^urⁱⁿ^g^,^or^a^tte^m^p^{t to s}^t^r^u^c^t^ur^e^or^a^s^sⁱ^s^t^{in s}^t^r^u^c^t^urⁱⁿ^g^,^aⁿ^y^tr^aⁿ^s^a^c^{tion w}^ith^one^or^m^o^r^e
^dom^e^s^tic^fⁱ^na^nc^ia^{l instit}^uti^ons,”³¹^U.S.C^.⁵³²⁴^(a^).
²²⁵^“⁽^b)^N^o^pe^r^s^{on s}^h^a^l^l^,^f^o^r^the^pur^p^o^s^e^of^ev^a^d^ing^the^r^e^por^{t r}^e^qu^ir^e^m^eⁿ^ts^of^s^e^c^{tion 53}³¹^[^c^a^s^{h tr}^aⁿ^s^a^c^tions^inv^o^lv^ing
^$10^,0⁰⁰^or^m^o^r^e^]^or^aⁿ^y^r^e^g^u^la^tio^{n pr}^e^s^c^r^ibe^d^u^nde^r^s^u^c^h^s^e^c^tio^{n –}⁽¹⁾^c^a^u^s^e^or^a^tte^m^p^{t to c}^a^u^s^e^{a nonf}^inaⁿ^cⁱ^a^l^tr^a^d^e^or
^bus^ine^s^s^t^o^f^a^{il to f}^ile^a^r^e^por^t^r^e^q^u^ir^e^d^un^de^r^s^e^c^tion⁵³³¹^or^aⁿ^y^r^e^g^u^la^tion^pr^e^s^c^r^ibe^d^un^de^r^s^u^c^h^s^e^c^tion;
^“⁽²⁾^c^a^u^s^e^or^a^ttem^p^{t to c}^a^u^s^e^a^nonf^inaⁿ^cⁱ^a^l^tr^a^d^e^or^busⁱⁿ^e^s^s^{to f}^ile^a^r^e^por^{t r}^e^quir^e^d^un^de^r^s^e^c^{tion 5}³^{31 or}^aⁿ^y^r^e^g^u^la^tion
^pr^e^s^c^r^ibe^d^u^nde^r^s^u^c^h^s^e^c^tio^{n t}^h^a^t^c^ontaⁱ^ns^a^m^a^te^rⁱ^a^l^o^m^is^sⁱ^{on or}^mⁱ^ss^ta^tem^e^{nt of}^f^a^c^{t; or}²²⁶
^“^N^{o pe}^r^s^{on s}^h^a^{ll, f}^o^r^t^h^e^pur^pos^e^of^e^v^a^d^ing^the^r^e^por^ti^ng^r^e^quir^e^m^e^nts^of^s^e^c^{tion 53}¹⁶^[ⁱ^m^p^o^r^tⁱⁿ^g^o^r^e^x^p^o^r^tⁱⁿ^g^$¹⁰^,⁰⁰⁰
^or^m^o^r^e^{in ca}^s^h^]^{– (}¹⁾^f^a^{il to}^f^ile^{a r}^e^por^{t r}^e^quir^e^{d by}^se^c^{tion 531}^{6, or}^c^a^u^s^e^or^a^ttem^p^{t to ca}^us^e^{a pe}^r^s^{on to f}^a^{il to}^f^ile^s^u^ch^a
^r^e^por^t;
^“⁽²⁾^f^ile^or^c^a^u^s^e^or^a^ttem^p^{t to c}^a^u^s^e^{a pe}^r^s^{on to f}^ile^{a r}^e^por^{t r}^e^quir^e^{d un}^de^r^s^e^c^{tion 53}^{16 tha}^t^c^oⁿ^t^aⁱ^ns^a^m^a^te^rⁱ^a^l^o^m^is^sⁱ^on
^or^mⁱ^s^s^t^a^t^em^eⁿ^{t of}^f^a^c^{t; or}
^“⁽³⁾^s^t^r^u^c^t^ur^e^or^a^s^sⁱ^s^tⁱⁿ^s^t^r^u^c^t^urⁱⁿ^g^,^or^a^tte^m^p^{t to s}^t^r^u^c^t^ur^e^or^a^s^sⁱ^s^t^{in s}^t^r^u^c^t^urⁱⁿ^g^,^aⁿ^y^im^por^ta^tion^o^r^e^x^por^ta^tio^{n of}
^m^one^ta^r^y^ins^t^r^u^m^e^nts^,^”^{31 U}^.^S.C^.⁵³²⁴⁽^c⁾^.
²²⁷³¹^U^.^S.C.⁵³²⁴^(a)-(c).
²²⁸³¹^U^.^S^.^C^.⁵³²⁴⁽^d⁾^.
²²⁹^Se^c^{tion 5}³²²ⁿ^o^w^re^a^d^{s, “}⁽^a⁾^A^pe^{rson w}^illf^ull^y^vⁱ^ola^ting^this^subc^h^a^pte^r^{or a}^re^g^u^la^{tion p}^r^e^s^c^rⁱ^b^e^d^o^r^o^r^d^e^rⁱ^s^s^u^e^d^uⁿ^d^e^r
^{this subc}^ha^pte^r^(e^x^c^e^p^{t se}^c^ti^{on 53}^{15 or}⁵³²⁴^of^{this title}^{or a}^re^g^u^la^ti^{on pr}^e^s^c^r^ibe^d^un^de^r^se^c^{tion 53}^{15 or}⁵³²⁴⁾^,^o^r^w^illf^ully
^vⁱ^ola^ting^a^r^e^g^u^la^tion^pr^e^s^c^r^ibe^d^unde^r^s^e^c^tioⁿ²¹^of^the^Fe^de^r^a^{l D}^e^pos^{it I}ⁿ^s^u^r^a^nc^e^A^c^{t or}^s^e^c^{tion 1}²³^of^P^u^blic^L^a^w^91-
⁵⁰⁸^{, s}^h^a^l^l^be^fⁱ^ne^d^not^m^o^r^e^thaⁿ^$25^0,⁰⁰^0,^or^im^pr^is^one^{d f}^o^rⁿ^o^t^m^o^r^e^thaⁿ^fⁱ^v^e^y^e^a^r^s^,^or^bot^h.
^“⁽^{b) A}^pe^{rson w}^illf^ull^y^vⁱ^ola^ting^{this subc}^ha^pte^r^{or a}^re^g^u^la^tio^{n pre}^s^c^r^ibe^d^{or orde}^r^issue^d^un^de^{r th}^{is subc}^ha^pte^r^(e^x^c^e^p^t
^se^c^{tion 5}³¹⁵^or⁵³²⁴^of^th^{is title}^o^r^a^re^g^u^la^tio^{n pre}^s^c^r^ibe^d^un^de^{r se}^c^tion⁵³¹⁵^or⁵³^24),^or^w^illf^ull^y^vⁱ^ola^ting^a^re^g^u^la^ti^on
^pr^e^s^c^r^ibe^d^u^nde^r^s^e^c^tion²¹^of^th^e^Fe^de^r^a^{l D}^e^pos^{it I}ⁿ^s^u^r^a^nc^e^A^c^{t or}^s^e^c^tion¹²^{3 of}^Publ^ic^L^a^w^91-⁵⁰⁸^{, w}^h^ile^vⁱ^ola^ting
^a^nothe^r^la^w^of^the^Unite^d^Sta^t^e^s^o^r^a^s^pa^rt^of^a^pa^tte^rn^of^aⁿ^y^ille^g^a^l^a^c^tiv^it^y^inv^o^lv^ing^m^o^re^thaⁿ^$¹⁰⁰^,⁰⁰^{0 i}ⁿ^a^12-m^ont^h
^pe^rⁱ^od^{, s}^h^a^ll^be^fⁱ^ne^d^{not m}^o^r^e^th^aⁿ^$5⁰⁰^,0^00,^im^pr^is^one^{d f}^o^r^not^m^o^r^e^thaⁿ^{10 y}^e^a^r^s^,^or^bo^th.
⁽^c^onti^nue^d.^..)

section 5322 and provided criminal penalties within section 5324 in 1994²³⁰ after the Supreme
Court held that “willful” violation required a showing that the defendant knew that his structuring ²³¹
actions were unlawful. Thus for a prosecution under section 5324, it is no longer necessary to
prove that the accused knew that his conduct was criminal; it is enough to show that he knew of ²³²
the reporting requirement and acted with an intent to avoid compliance or accurate compliance.
Property involved in or traceable to a violation of section 5324 is subject to confiscation under
both criminal and civil forfeiture procedures, but it may be subject to an constitutionally based ²³³
excessive fine limitation.
After the Supreme Court held in Bajakajian that the excessive fines clause of the Eighth
Amendment precluded confiscation of $300,000 of unreported, but otherwise untainted, cash,
Congress enacted the bulk cash smuggling provisions of 31 U.S.C. 5332. The section outlaws
carrying or attempting to transport more than $10,000 in unreported, “concealed” cash across a ²³⁴
U.S. border with the intent to evade 31 U.S.C. 5316 reporting requirements. The section has
been used to prosecute those who attempted to bring unreported cash into the United States as ²³⁵
those who attempted to smuggle cash out of the country. The fact that the money was neither
derived from nor intended for criminal purposes may be relevant for Eighth Amendment ²³⁶
purposes, but it is no defense to the underlying offense. The proscribed methods of ²³⁷
concealment seems to envelope any method short of public display. The offense carries a prison

^(...c^on^tin^ue^d)
^“⁽^c⁾^{For a}^vⁱ^ola^tion^of^se^c^{tion 531}^8(a⁾⁽²⁾^of^this^title^or^a^re^g^u^la^{tion pre}^s^c^rⁱ^b^e^d^uⁿ^d^e^r^s^e^c^tⁱ^oⁿ⁵³¹⁸⁽^a⁾⁽²⁾^,^a^s^e^p^a^r^a^t^e^vⁱ^o^l^a^t^ion
^o^ccu^{rs f}^o^{r each}^d^a^y^t^h^{e vi}^o^l^atⁱ^oⁿ^coⁿ^tⁱⁿ^u^e^{s an}^d^at^each^o^f^fⁱ^ce,^b^r^an^ch^,^o^r^p^l^{ace o}^f^b^u^sⁱⁿ^{ess at}^w^hⁱ^c^h^{a vi}^o^l^atⁱ^oⁿ^o^ccu^{rs o}^r
^c^onti^nue^s^.
^“⁽^{d) A}^fⁱ^na^nc^ia^{l instituti}^on^{or a}^g^eⁿ^c^y^tha^t^vⁱ^ola^t^e^s^aⁿ^y^prov^is^ion^of^subse^c^tion⁽ⁱ⁾^{or (j)}^of^se^c^{tion 5}³¹⁸^{, o}^r^aⁿ^y^spe^cⁱ^a^l
^m^e^a^s^ur^e^sⁱ^m^pos^e^d^un^de^r^s^e^c^tion⁵³¹^8A^{, or}^aⁿ^y^r^e^g^u^la^tion^pr^e^s^c^r^ib^e^d^un^de^r^s^u^bs^e^c^tion⁽ⁱ⁾^or⁽^j⁾^of^s^e^c^tion⁵³¹⁸^or
^s^e^c^{tion 5}³¹⁸^A^,^s^h^a^{ll be}^fⁱ^ne^{d i}ⁿ^aⁿ^a^m^{ount e}^q^ua^{l to}ⁿ^o^{t le}^s^s^t^h^aⁿ²^tim^es^the^a^m^{ount of}^the^tr^aⁿ^s^a^c^tio^{n, b}^u^t^no^{t m}^o^r^e
^thaⁿ^$1,⁰^00,⁰⁰^0.”
²³⁰^P^.^L.¹⁰³^-³²^5,¹⁰^{8 S}^t^at^{. 22}⁵³⁽¹⁹⁹⁴⁾^{, 31}^U.^S^.^C^.⁵³²⁴⁽^c⁾⁽²⁰⁰⁰^ed^.⁾^{, n}^o^w³¹^U.^S^.^C^.⁵³²⁴⁽^d⁾^.
²³¹^Ratzl^a^{f v}^.^Uⁿ^ite^d^Sta^t^e^s^{, 5}^{10 U}^.^S^.¹³^5,¹³^{7 (}¹⁹⁹⁴⁾^.
²³²^Uⁿ^ite^d^St^ate^s^v^.^Va^{n Al}^leⁿ^{, 52}⁴^F^.^{3d 81}^{4, 82}⁰⁽⁷^th^Cⁱ^r^.²⁰⁰⁸⁾^;^Uni^t^ed^S^t^a^t^{es v.}^Ma^cP^h^e^rsoⁿ^,⁴²^{4 F}^.^3d¹⁸³^,¹⁸⁹⁽²^d
^Cⁱ^r^.²⁰⁰⁵⁾⁽^f^or^c^onv^ic^tio^{n f}^o^r^a^vⁱ^ola^tio^{n of}³¹^U^.^S^.^C^.⁵³²⁴⁽^a⁾^{: “}⁽¹⁾^the^de^f^e^nda^{nt m}^u^s^t^{, i}ⁿ^f^a^c^t^{, ha}^v^e^eⁿ^g^a^g^e^{d in a}^c^t^s^of
^s^t^r^u^c^t^urⁱⁿ^g^;⁽²⁾^he^m^u^s^t^ha^v^e^don^e^s^o^w^{ith k}^now^le^dg^e^tha^t^th^e^fⁱ^na^nc^ia^{l instit}^uti^{ons i}ⁿ^v^o^lv^e^d^w^e^re^le^g^a^ll^y^oblig^a^t^e^d^to
^r^e^por^{t c}^u^r^r^e^nc^y^tr^aⁿ^s^a^c^tions^{in e}^x^c^e^s^s^of^$10,0^00;^aⁿ^d⁽³⁾^he^m^u^s^t^ha^v^e^a^c^t^e^d^w^{ith the}^inte^nt^to^e^v^a^d^e^this^r^e^p^o^r^ting^th
^r^e^quir^e^m^e^nt”⁾^;^Uⁿ^ite^{d S}^t^ate^s^v^.^B^r^ingie^r^,⁴⁰^{5 F.}^3d³^10,³^14-^{15 (}⁵^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Boy^d^,¹⁸^{0 F.3}^d⁹⁶^7,^th
⁹⁸¹⁽⁸^Cⁱ^r^.¹⁹⁹⁹⁾⁽^s^up^ply^a^c^a^sⁱⁿ^{o w}^{ith f}^a^ls^e^ideⁿ^tif^ic^a^{tion w}^{ith th}^e^k^now^le^dg^e^tha^t^the^mⁱ^sⁱ^nf^or^m^a^tⁱ^{on w}^oul^d^be
ⁱⁿ^cl^ud^edⁱⁿ^t^h^{e casi}ⁿ^o^’^{s cu}^rren^c^y^t^r^an^sactⁱ^oⁿ^repo^rt^c^oⁿ^s^tⁱ^t^u^t^{es a mat}^e^ri^al^mⁱ^s^s^t^a^t^e^men^tⁱⁿ^vi^ol^atⁱ^oⁿ^of^se^ctⁱ^oⁿ
⁵³²⁴⁽^a⁾⁽²⁾⁾^.
²³³^Unⁱ^t^e^d^S^t^a^t^{es v.}^E^l^f^g^eeh^,⁵¹^{5 F.}³^d¹^00,¹^{39 (}²^d^Cⁱ^r^.²⁰⁰⁸⁾^.
²³⁴^“W^h^o^e^ver,^wⁱ^t^h^t^h^{e i}ⁿ^t^eⁿ^t^t^o^evad^{e a cu}^rren^c^y^rep^o^r^tⁱⁿ^{g req}^uⁱ^r^em^eⁿ^t^un^d^e^{r sect}ⁱ^oⁿ⁵³¹⁶^,^kn^o^wⁱⁿ^gl^{y co}ⁿ^ceal^{s m}^o^re
^thaⁿ^$1^0,0⁰⁰^{in c}^u^r^r^e^nc^y^or^othe^r^m^one^ta^r^y^ins^t^r^u^m^e^nts^{on the}^pe^r^s^on^of^s^u^c^hⁱⁿ^divⁱ^d^u^a^l^orⁱⁿ^aⁿ^y^c^onv^ey^aⁿ^c^e^,^a^r^tic^le
^of^lug^g^a^ge^,^m^e^r^c^ha^ndis^e^{, or}^othe^r^c^ontaⁱ^ne^r^,^aⁿ^d^tr^aⁿ^s^p^or^ts^or^tr^aⁿ^s^f^e^r^s^or^a^ttem^p^ts^{to tr}^aⁿ^s^p^or^t^or^tr^aⁿ^s^f^e^r^s^u^c^h
^cu^rren^c^y^o^r^m^oⁿ^e^t^a^r^yⁱⁿ^st^ru^m^eⁿ^t^{s f}^r^o^m^{a p}^l^{ace w}ⁱ^t^hⁱⁿ^t^h^{e Un}ⁱ^t^ed^S^t^at^{es t}^o^{a p}^l^{ace ou}^t^sⁱ^d^e^o^f^t^h^{e Un}ⁱ^t^ed^S^t^at^es,^o^r^f^r^o^m
^{a p}^l^{ace o}^u^t^si^d^e^th^{e U}ⁿ^ited^{States t}^o^{a p}^l^{ace w}^ithⁱⁿ^t^h^{e Un}ⁱ^t^ed^States^{, sh}^all^b^e^g^u^ilty^o^f^{a cu}^rren^c^y^s^m^u^g^g^lin^g^o^f^f^eⁿ^s^e
^a^{nd s}^u^bje^c^t^to^p^unis^h^m^e^{nt pur}^s^u^aⁿ^{t t}^o^s^u^bs^e^c^{tion (}^b⁾^,^”^{31 U}^.^S.C^.⁵³³²⁽^a⁾^.
²³⁵^E.g^.,^Unⁱ^t^ed^S^t^a^t^es^v.^E^l^y^{, 4}⁶⁸^F.^3d³⁹^9,⁴⁰^{0 (}⁶^th^Cⁱ^r^.²⁰⁰⁶⁾^.
²³⁶^Uⁿ^ite^d^St^ate^s^v^.^Ta^toy^aⁿ^,⁴⁷^{4 F}^.³^d¹¹⁷⁴^,¹¹^79-¹⁷^{9 (}⁹^th^{Cir. 2}⁰⁰⁷^).

term of not more than five years, but also calls for confiscation of the cash and related property in ²³⁸
lieu of a fine. The section was apparently enacted to overcome the consequences of ²³⁹²⁴⁰
Bajakajian. There may be some question whether the effort will succeed.

^(...c^on^tin^ue^d)
²³⁷^“F^o^r^p^u^r^p^o^s^{es o}^f^t^hⁱ^s^sectⁱ^oⁿ^,^t^h^e^coⁿ^ceal^m^eⁿ^t^o^f^cu^rren^c^y^oⁿ^t^h^e^persoⁿ^o^f^an^yⁱⁿ^dⁱ^vi^d^u^a^lⁱⁿ^cl^u^d^e^{s c}^oⁿ^ceal^m^eⁿ^tⁱⁿ
^aⁿ^y^a^r^tic^le^o^f^c^l^othing^w^o^rⁿ^by^the^indivⁱ^d^u^a^l^orⁱⁿ^aⁿ^y^lug^g^a^ge^{, ba}^c^k^pa^c^k^{, or}^othe^r^c^o^ntaⁱ^ne^r^w^o^rⁿ^o^r^c^a^r^rⁱ^e^d^by^s^u^c^h
^indivⁱ^d^u^a^l^,”^{31 U}^.^S.C^.⁵³³²⁽^b)^{. I}ⁿ^f^a^c^t^{, the}^D^e^c^e^m^b^e^r²⁰⁰^{5 M}^one^y^L^a^unde^rⁱ^ng^T^h^r^e^a^t^A^s^s^e^s^s^m^e^{nt W}^o^r^k^ing^G^r^oup
^r^e^por^t^note^d^tha^t^the^la^r^g^e^s^{t bu}^lk^c^a^s^{h sm}^ug^g^ling^s^e^iz^ur^e^s^{, both i}ⁿ^t^e^r^m^s^of^num^be^r^s^of^se^iz^ur^e^s^a^nd^am^{ount s}^e^iz^e^d^,
ⁱⁿ^vo^l^v^{e cash}^t^h^atⁱ^s^“un^c^on^ceal^ed^,^”^U^.^{S. M}^o^ne^y^Lau^nde^rⁱ^ng^Thr^e^at^As^s^e^s^s^m^eⁿ^t^{, 39 (}⁵⁶¹^se^iz^ure^s^($²^{43 m}^illio^{n) of}
^uⁿ^c^on^ceal^ed^cash^versu^s^t^h^{e n}^e^xt^hⁱ^gh^est^cat^ego^r^y⁽^{515 s}^e^iz^ur^e^s⁽^$^83.⁸⁾^f^r^om^lug^g^a^g^e⁾⁾^,^a^v^a^ila^ble^oⁿ^J^u^ne¹⁸^{, 2}⁰⁰⁸^a^t
^http:^//www^.ustre^a^s^.g^ov^/^o^f^fⁱ^c^e^s/^eⁿ^f^o^rc^e^m^eⁿ^t/pdf^/m^lta^.pdf^.
²³⁸^“^I^{n a}^dditio^{n, the}^c^our^{t, in im}^posⁱⁿ^g^s^e^nteⁿ^c^e^unde^{r pa}^ra^g^r^a^{ph (1), s}^h^a^{ll orde}^{r tha}^t^the^de^f^e^nda^{nt f}^o^rfe^{it to the}^Uⁿ^ite^d
^Sta^t^e^s^{, a}ⁿ^y^pr^ope^r^t^y^,^r^e^a^l^or^pe^r^s^ona^{l, inv}^o^lv^e^d^{in t}^h^e^of^f^e^ns^e^,^a^{nd a}ⁿ^y^pr^ope^r^t^y^tr^a^c^e^a^b^le^{to s}^u^c^h^pr^ope^r^t^y^.^T^h^e^s^e^iz^ur^e^,
^r^e^s^t^r^a^{int, a}^{nd f}^o^r^f^e^itur^e^of^pr^ope^r^t^y^unde^r^this^s^e^c^tio^{n s}^h^a^{ll be}^g^o^v^e^rⁿ^e^d^by^s^e^c^{tion 41}^{3 of}^the^C^ontr^o^ll^e^d^Subs^ta^nc^e^s^A^c^t^.^I^f
^the^pr^ope^r^t^y^s^ubje^c^t^t^o^f^o^r^f^e^itur^e^u^nde^r^pa^r^a^g^r^a^{ph (}²⁾^is^una^v^a^ila^ble^,^a^{nd t}^h^e^de^f^e^nda^nt^ha^sⁱⁿ^s^u^f^fⁱ^cⁱ^eⁿ^{t s}^ubs^tit^ute^pr^ope^r^t^y
^tha^t^m^a^y^be^f^o^r^f^e^ite^{d pur}^s^u^aⁿ^t^{to s}^e^c^tion⁴¹³⁽^p)^of^the^C^o^ntr^o^lle^d^S^ubs^ta^nc^e^s^A^c^{t, the}^c^our^t^s^h^a^{ll e}ⁿ^te^r^a^pe^r^s^ona^l^m^oney
^judg^m^e^{nt a}^g^aⁱ^ns^{t the}^de^f^e^nda^{nt f}^o^r^the^a^m^{ount t}^h^a^t^w^ould^be^s^u^bje^c^{t to f}^o^r^f^e^itur^e^.
^“^Aⁿ^y^pr^ope^r^t^y^inv^o^lv^e^d^{in a}^vⁱ^ola^tion^of^s^ubs^e^c^tio^{n (}^a⁾^,^or^a^c^o^ns^pi^r^a^cy^{to c}^o^m^m^{it s}^u^c^h^vⁱ^ola^tion^,^aⁿ^{d a}ⁿ^y^pr^ope^r^t^y
^t^r^aceab^l^e^t^o^su^ch^vi^ol^atⁱ^oⁿ^o^r^co^nspⁱ^rac^y^,^ma^y^b^e^sei^zed^an^d^f^o^rf^ei^t^e^d^t^o^t^h^{e Un}ⁱ^t^ed^S^t^at^es.^T^h^{e sei}^z^u^r^{e an}^d^f^o^rf^ei^t^u^re
^s^h^a^{ll be}^g^o^v^e^rⁿ^e^d^by^the^pr^oc^e^d^ur^e^s^g^o^v^e^rⁿ^ing^cⁱ^v^{il f}^o^r^f^e^itur^e^s^{in m}^one^y^la^unde^rⁱ^ng^c^a^s^e^s^pur^s^u^aⁿ^{t t}^o^s^e^c^tion
⁹⁸¹^(a^)(1)(A^{) of}^title¹⁸^{, Unite}^{d St}^a^t^e^s^Code^{. F}^o^{r p}^u^rp^ose^s^of^{this su}^bse^c^{tion a}ⁿ^{d s}^ubse^c^tioⁿ^(b)^,^aⁿ^y^c^u^rre^nc^y^{or othe}^r
^m^oⁿ^e^t^a^r^yⁱⁿ^st^ru^m^eⁿ^t^t^h^atⁱ^s^coⁿ^c^e^a^l^e^d^o^rⁱⁿ^t^e^nd^ed^t^o^b^e^c^oⁿ^ceal^edⁱⁿ^vi^o^l^atⁱ^oⁿ^o^f^su^b^s^ectⁱ^o^{n (a) o}^r^a^coⁿ^s^pⁱ^racy^t^o
^co^mmⁱ^t^su^ch^vi^o^l^atⁱ^oⁿ^,^an^y^artⁱ^c^l^e^,^coⁿ^t^aiⁿ^e^r,^o^r^coⁿ^v^ey^an^{ce u}^s^ed^,^{or i}ⁿ^t^e^nd^ed^t^o^b^e^u^s^ed^,^t^o^coⁿ^ceal^o^r^t^r^an^spo^r^t^t^h^e
^c^u^rre^nc^y^{or othe}^{r m}^one^ta^ry^instrum^e^{nt, a}^{nd a}ⁿ^y^othe^{r pr}^ope^rty^use^d^{, o}^rⁱⁿ^te^nde^d^to^be^use^d^{, t}^o^f^a^c^ilita^te^the^of^f^e^nse^,
^sh^a^{ll b}^e^c^oⁿ^s^id^e^r^e^d^p^r^o^p^e^r^tyⁱⁿ^v^o^lv^e^dⁱⁿ^t^h^e^o^f^f^eⁿ^s^e^,^”³¹^U.S.C.⁵³³²⁽^b⁾⁽²^)-(c^)(c^a^p^ti^oⁿ^s^o^m^itte^d⁾^.
²³⁹^H^.^R^e^p.N^o^.¹^07-²⁵^{0, a}^t^{37 (}²⁰⁰¹⁾⁽^“^[^I^]ⁿ^r^e^s^p^oⁿ^s^e^{to t}^h^e^B^a^jak^a^jiaⁿ^de^cⁱ^sⁱ^on,^the^D^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^pr^op^os^e^d
^m^a^kⁱ^ng^the^a^c^t^of^bulk^c^a^s^{h sm}^ugg^ling^itse^l^f^a^c^rⁱ^m^ina^l^off^e^nse^,^a^{nd to}^a^u^t^horiz^e^t^h^e^im^positio^{n of}^th^e^f^u^{ll ra}^ng^e^of^cⁱ^v^il
^an^d^cri^mⁱⁿ^al^san^c^tⁱ^oⁿ^s^w^h^en^t^h^{e off}^eⁿ^s^{e i}^s^dⁱ^sco^v^ered^.^Becau^{se t}^h^{e act}^o^f^coⁿ^cealⁱⁿ^{g cu}^rren^c^y^f^o^{r t}^h^{e p}^u^r^p^o^s^e^o^f
^s^m^ug^g^ling^{it out}^of^the^Uni^t^e^d^Sta^t^e^s^{is inhe}^re^nt^ly^m^o^re^se^ri^{ous tha}ⁿ^sim^p^ly^f^a^iling^{to f}^ile^a^Custom^s^re^{port, str}^ong^aⁿ^d
^meanⁱⁿ^gf^u^l^san^c^tⁱ^oⁿ^s^,^su^c^h^{as co}^nfⁱ^s^c^a^tⁱ^oⁿ^o^f^t^h^{e sm}^u^ggl^ed^cu^rren^c^y^,^ar^{e l}ⁱ^k^el^y^t^o^wⁱ^t^h^st^an^d^Eⁱ^gh^t^h^Amen^d^m^en^t
^ch^al^l^eⁿ^g^{es t}^o^t^h^eⁿ^e^w^st^at^u^t^e”);^se^{e a}^l^so^,^Uⁿⁱ^t^e^{d S}^t^a^t^{es v.}^$2⁹³^,3¹⁶^,³⁴^{9 F}^.^Su^pp^.2^{d a}^t⁶⁴³^;^C^a^s^s^e^lla^,^Bulk^Cas^h
^Sm^ug^gli^ng^an^{d t}^h^e^G^l^o^bal^iz^ati^on^{of C}^r^im^e^:^O^v^e^r^c^o^mⁱ^{ng C}^ons^tit^uti^ona^{l C}^h^alleⁿ^g^e^s^to^For^f^eⁱ^t^u^r^e^Uⁿ^de^r³¹^U^.^S.C^.
⁵³³²^{, 22}^B^ER^K^E^LEY^J^O^U^R^NA^L^OF^I^NT^E^R^N^A^T^I^ON^AL^L^AW^{98, 10}^{6 (}²⁰⁰⁴⁾⁽^“^Iⁿ²⁰^01,^C^ong^r^e^s^s^e^x^pr^e^s^s^e^{d its}^dis^p^le^a^s^ur^e
^w^{ith the}^Baj^a^k^a^ji^an^de^cⁱ^sⁱ^oⁿ^aⁿ^d^c^r^e^a^t^e^d^a^ne^w^‘^bulk^c^a^s^{h sm}^ug^g^lⁱⁿ^g^’^of^f^e^ns^e^,^{31 U}^.^S.C^.⁵³³²^{, t}^h^a^t^is^de^sⁱ^gⁿ^e^d^t^o
^pe^r^m^it^f^o^r^f^e^itur^e^of^one^hu^ndr^e^d^pe^r^c^eⁿ^{t of}^the^s^m^ug^g^l^e^d^c^u^r^r^e^ncy^{in m}^o^s^t^cⁱ^r^c^um^s^t^aⁿ^c^e^s^,^w^h^e^t^he^r^or^not^the
^go^vern^m^eⁿ^t^can^est^a^b^lⁱ^s^h^{a n}^e^xu^s^b^e^t^w^een^t^h^{e sm}^u^g^g^l^e^d^m^oⁿ^e^y^an^d^an^ot^h^e^{r cri}^mⁱⁿ^al^o^f^f^eⁿ^s^e.^Eⁿ^act^ed^{as p}^a^rt^o^f^t^h^e
^pos^t-Se^p^t^e^m^be^{r 11 e}^f^f^o^{rt to a}^ddre^s^s^te^rroris^t^fⁱ^na^nc^ing^s^p^e^cⁱ^fⁱ^c^a^l^l^y^,^a^{nd i}ⁿ^te^nti^ona^{l m}^one^y^la^unde^ring^g^e^ne^ra^ll^y^,^{in T}^itle
^{II o}^f^t^h^{e US}^A^P^A^T^R^IO^T^A^c^t^,^t^h^{e n}^e^w^l^a^w^reco^gnⁱ^{zes t}^h^e^c^eⁿ^tra^l^role^tha^t^b^u^lk^c^a^s^{h sm}^ug^g^ling^pla^y^s^{in t}^h^e
^g^l^oba^liz^a^tion^of^c^r^im^e^”^).
²⁴⁰^Uⁿ^ite^d^St^ate^s^v^.^Ely^,⁴⁶^{8 F.}^3d³⁹⁹^{, 4}⁰²^n.^{2 (}⁶^th^Cⁱ^r^.²⁰⁰⁶⁾⁽^“^T^h^is^s^t^a^t^ute^inc^l^ude^{d a}^f^o^r^f^e^itur^e^pr^ov^is^{ion t}^h^a^t^w^a^s^a
^pr^e^c^u^r^s^or^of^the^pr^e^s^eⁿ^{t v}^e^r^s^ion^o^f^{31 U}^.^S.C^.⁵³³²^{. T}^h^e^s^t^a^t^ut^or^y^lang^ua^g^e^w^a^s^m^odifⁱ^e^d^a^s^pa^r^t^of^th^e^U^S^A^P^A^T^R^I^O^T
^A^c^{t in 200}^1,^by^m^o^vⁱ^ng^the^f^o^r^f^eⁱ^tur^e^pr^ov^is^ions^f^r^om^{18 U}^.^S^.^C^.⁹⁸^{2 (}^t^he^s^t^a^t^ute^a^u^t^hor^izⁱⁿ^g^the^f^o^r^f^eitur^eⁱⁿ
^Bajak^a^jiaⁿ^”⁾^to³¹^U^.^S^.^C^.⁵³^{32 (}^t^he^s^t^a^t^ute^a^u^t^hor^izⁱⁿ^g^Ely^’^s^f^o^r^f^eⁱ^tur^e⁾^.^T^h^e^g^o^v^e^rⁿ^m^e^{nt a}^d^v^a^nc^e^s^t^h^is^m^odifⁱ^c^a^{tion a}^s
^{a b}^a^{sis f}^o^{r u}^s^to^fⁱ^nd^B^a^jak^a^jiaⁿⁱⁿ^a^ppl^ic^a^b^le^{. How}^e^v^e^{r, the}^f^o^rfe^iture^la^ng^ua^g^e^of^the^tw^{o prov}^isioⁿ^s^{is v}ⁱ^rtua^lly
^ideⁿ^tic^a^l^{, a}ⁿ^{d e}^v^eⁿ^if^C^ong^r^e^s^s^c^o^{uld c}ⁱ^r^c^um^ve^{nt the}^Eig^h^t^h^A^m^e^ndm^eⁿ^t’^s^lim^ita^tions^on^e^x^c^e^s^sⁱ^ve^fⁱ^ne^s^by^m^odif^y^ing
^a^sta^t^ute^,^w^h^ic^{h w}^{ould m}^a^k^e^little^se^nse^,^c^u^tting^aⁿ^d^pa^sting^a^pr^ov^ision^of^the^Unite^d^Sta^t^e^s^Co^de^f^r^om^one^c^h^a^p^te^{r to}^st
^an^o^t^h^e^{r cann}^o^t^b^e^vi^ew^ed^{as a}^m^e^anⁱⁿ^gf^u^l^ch^an^ge”);^b^u^t^see,^Uⁿ^ite^{d St}^ate^s^v^.^J^o^s^e^,⁴⁹⁹^F.^3d¹⁰^5,¹¹⁰^-¹¹⁽¹^Cir.
²⁰⁰⁷⁾⁽^“^C^o^ng^r^e^s^s^,^{in e}ⁿ^a^c^ting^s^e^c^t^ion⁵³³²^{, r}^e^s^p^o^nde^{d t}^o^Ba^jak^a^jⁱ^aⁿⁱⁿ^a^w^a^y^tha^t^{it be}^lie^v^e^{d w}^ould,^{in m}^o^st
^cⁱ^rc^um^st^aⁿ^c^e^s^{, c}^onstituti^ona^lly^pe^rm^{it the}^f^u^{ll f}^o^rfe^iture^of^c^u^rre^nc^y^not^re^por^te^{d t}^o^a^u^t^hori^tie^{s a}^s^re^q^u^ire^d^by^se^c^tion
⁵³¹^{6 .}^{. .}^Se^c^tio^{n 5}³³²^m^a^k^e^c^l^ea^r^tha^t^C^o^ng^r^e^s^s^ha^s^now^pr^o^hⁱ^b^ite^d^w^h^a^t^{it c}^a^lls^‘^bulk^c^a^s^{h s}^m^ug^g^ling^,^’^a^{nd t}^h^a^t^it
^c^ons^ide^r^s^t^h^is^to^be^a^v^e^r^y^s^e^rⁱ^ous^of^f^e^ns^e^.^C^ong^r^e^s^s^ha^s^thus^tip^pe^{d the}^f^o^r^f^e^itur^e^e^qua^ti^on^{in f}^a^v^o^r^of^the^pr^os^e^c^u^ti^on
ⁱⁿ^bu^l^k^cash^sm^u^gglⁱⁿ^{g cas}^es.^Bajak^a^ji^anⁱ^t^sel^f^st^at^ed^t^h^at^‘j^ud^gm^eⁿ^t^s^ab^ou^t^t^h^{e app}^r^op^ri^at^{e pu}ⁿⁱ^s^h^men^t^f^o^{r an}^o^f^f^eⁿ^s^e
^b^e^l^oⁿ^gⁱⁿ^t^h^{e f}ⁱ^rstⁱⁿ^st^an^{ce t}^o^t^h^{e l}^e^gi^sl^at^u^r^e’”).

Section 1960 reflects the concern that unlicensed money transmitters, sometimes referred to as ²⁴¹
hawalas, may “have funneled extensive amounts to money to terrorist groups abroad.” The
designation as the transmitters as “unlicensed” is something of misnomer, since the statute applies ²⁴²
to both licensed and unlicensed money transmitting businesses. It outlaws the transmission of
money known to be derived from or intended to finance criminal activity even if the transmitter is ²⁴³
duly licensed. It also proscribes money transmission businesses which either (A) fail to comply
with any state law requirements for such businesses; or (B) have failed to comply with federal ²⁴⁴
regulatory requirements for such businesses. In all three instances, money transmitting is ²⁴⁵
defined broadly by way of a nonexclusive list of examples.
Initial judicial construction is has been somewhat divided. The courts agree that the government
must establish that the defendant operated a money transmission business, that the business
affected interstate commerce, and that the business was unlicensed or unregistered (unless the ²⁴⁶
charge is the transmission of tainted funds). The statute itself declares that in a prosecution
under the state-license branch of the statute the government need not show that the defendant was ²⁴⁷
aware any state licensing requirement. It must prove, however, that he knew the business was ²⁴⁸
unlicensed. In the prosecution under the federal-regulation branch of the statute, the ²⁴⁹
government need not show that the defendant knew of federal regulatory requirements, but it ²⁵⁰
must show that the defendant knew that he was operating a transmitting business.
Violations of section 1960 face imprisonment for not more than five years and/or a fine of not ²⁵¹
more than $250,000 (not more than $500,000 for organizations).

²⁴¹^Uⁿ^ite^d^Sta^t^e^s^D^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^Re^{port fr}^{om the}^Fie^l^d:^The^U^S^{A PA}^{TRIOT Ac}^t^{at W}^o^rk^,¹⁰⁽²⁰⁰⁴⁾^,^a^v^a^ila^ble
^{on J}^u^ly^{17, 2}⁰⁰⁸^a^t^htt^p^://w^ww^.li^f^e^a^ndlibe^r^ty^.g^ov^{/ doc}^s/07¹³⁰⁴^_re^port^_^f^r^om^_the^_f^ile^d.pdf^.
²⁴²^“^W^hoe^v^e^r^k^now^ing^l^y^c^onduc^ts^,^c^ontr^o^ls^{, m}^a^na^g^e^s^,^s^upe^r^v^is^e^s^{, dir}^e^c^t^s^,^or^ow^ns^a^ll^or^pa^r^t^of^aⁿ^uⁿ^lic^eⁿ^s^e^{d m}^oney
^tran^sm^ittin^g^b^u^sⁱⁿ^{ess, sh}^all^b^e^fⁱⁿ^e^dⁱⁿ^acco^r^d^an^{ce w}^ith^th^{is ti}^tle^o^r^im^p^r^isoⁿ^e^dⁿ^o^{t m}^o^{re th}^an^fⁱ^v^e^y^e^{ars, o}^r^b^o^th^{,” 1}⁸
^U^.^S.C^.¹⁹⁶⁰⁽^a⁾^.
²⁴³^“^‘^[^U^]ⁿ^lic^eⁿ^se^{d m}^one^y^traⁿ^s^m^itti^ng^busiⁿ^e^{ss’ m}^e^aⁿ^{s a}^m^one^y^traⁿ^s^m^itting^busine^{ss w}^h^ic^{h a}^f^f^e^c^t^{s inte}^rsta^te^or
^f^o^r^e^ig^{n c}^o^m^m^e^r^c^e^{in a}ⁿ^y^m^a^nne^r^or^de^g^r^e^e^a^nd^{– .}^{. . (}^C⁾^ot^he^r^w^is^{e inv}^o^lv^e^s^the^tr^aⁿ^s^por^ta^ti^on^or^tr^aⁿ^s^m^is^sⁱ^{on of}^f^unds
^tha^t^a^r^e^k^now^{n to}^the^de^f^e^nda^{nt t}^o^ha^v^e^be^eⁿ^de^rⁱ^v^e^{d f}^r^om^a^c^rⁱ^mⁱⁿ^a^l^of^f^e^ns^e^or^a^r^e^inte^nde^d^to^be^u^s^e^d^to^pr^om^ote^or
^s^upp^or^t^unla^w^f^u^{l a}^c^tiv^it^y^,^”^{18 U}^.^S.C^.¹⁹⁶⁰⁽^b⁾⁽¹⁾⁽^C⁾^.
²⁴⁴^“^‘^[^U^]ⁿ^lic^eⁿ^se^{d m}^one^y^traⁿ^s^m^itti^ng^busiⁿ^e^{ss’ m}^e^aⁿ^{s a}^m^one^y^traⁿ^s^m^itting^busine^{ss w}^h^ic^{h a}^f^f^e^c^t^{s inte}^rsta^te^or
^f^o^re^ig^{n c}^o^m^m^e^rc^e^{in a}ⁿ^y^m^a^nne^{r or de}^g^r^e^e^a^nd^{– (A}^{) is ope}^ra^te^{d w}^itho^u^{t a}ⁿ^a^ppr^opr^ia^te^m^one^y^traⁿ^sm^itting^lic^eⁿ^seⁱⁿ
^a^Sta^t^e^w^h^e^r^e^s^u^c^h^ope^r^a^tio^{n is}^p^unis^h^a^b^le^a^s^a^mⁱ^s^d^em^ea^nor^or^a^f^e^lony^unde^r^S^t^a^t^e^la^w^,^w^h^e^t^he^r^or^not^the^de^f^e^nda^nt
^kⁿ^e^w^tha^t^the^ope^r^a^tio^{n w}^a^s^r^e^qui^r^e^{d to}^be^lic^eⁿ^s^e^d^or^t^h^a^t^t^h^e^ope^r^a^{tion w}^a^{s so pu}^nisha^b^le^{; (B) f}^a^{ils to c}^o^m^p^ly^w^ith
^the^m^oney^traⁿ^s^m^itting^bus^ine^s^s^r^e^gⁱ^s^t^ra^{tion re}^qu^ire^m^eⁿ^ts^unde^{r s}^e^c^tion⁵³³⁰^of^title³¹^{, U}ⁿ^ite^d^Sta^t^e^s^Code^{, or}
^r^e^g^u^la^tions^pr^e^s^c^r^ibe^d^u^nde^r^s^u^c^h^s^e^c^tion;^or⁽^C⁾^.^{. .}^.,”^{18 U}^.^S.C^.¹⁹⁶⁰⁽^b)⁽¹⁾^.
²⁴⁵^“^‘^[^M^]one^y^traⁿ^s^m^itting^’^”^inc^l^ude^s^traⁿ^s^f^e^rring^f^unds^on^be^ha^lf^of^the^pu^blic^by^aⁿ^y^a^{nd a}^{ll m}^e^aⁿ^s^inc^l^udi^ng^butⁿ^o^t
^lim^ite^{d to tra}ⁿ^sf^e^r^{s w}^{ithin this c}^o^untry^o^r^t^o^l^o^catⁱ^oⁿ^s^ab^r^o^ad^b^y^wⁱ^re,^ch^eck,^d^r^af^t^,^facsi^mⁱ^l^e^,^o^r^co^u^rⁱ^e^{r” 1}⁸^U.^S^.^C.
¹⁹⁶⁰⁽^b)⁽²⁾^.
²⁴⁶^Unⁱ^t^e^d^S^t^a^t^{es v.}^E^l^f^g^eeh^,⁵¹^{5 F.}³^d¹^00,¹^{33 (}²^d^Cⁱ^r^.²⁰⁰⁸⁾^;^Unite^d^Sta^t^e^s^v^.^Tale^bne^j^a^d^,⁴⁶⁰^F.3^d⁵⁶^{3, 5}⁶⁸⁽⁴^th^Cir.
²⁰⁰⁶⁾^.
²⁴⁷¹⁸^U^.^S.C.¹⁹⁶⁰^(b⁾⁽¹^)(A^).
²⁴⁸^Unⁱ^t^e^d^S^t^a^t^{es v.}^E^l^f^g^eeh^,⁵¹^{5 F.}³^d¹^00,¹^{33 (}²^d^Cⁱ^r^.²⁰⁰⁸⁾^.
²⁴⁹^Uⁿ^ite^d^St^ate^s^v^.^Ta^le^bne^j^a^d^{, 46}⁰^F^.^3d⁵⁶^3,⁵⁶^{8 (}⁴^th^Cⁱ^r^.²⁰⁰⁶⁾^.
²⁵⁰^Uⁿ^ite^d^St^ate^s^v^.^U^d^dⁱⁿ^,³^{65 F.S}^u^pp.^{2d 82}^{5, 82}^8-³⁰⁽^E^.D^.Mic^h^.²⁰⁰⁵⁾^.
²⁵¹¹⁸^U^.^S^.^C^.¹⁹⁶⁰⁽^a⁾^,³⁵⁷¹^,³⁵⁵³^.

As noted earlier, all RICO predicate offenses are by definition money laundering predicate ²⁵²
offenses under sections 1956 and 1957. The crimes that suggest the possibility of a RICO
offense also suggest the possibility of money laundering. In some money laundering cases, there
is no separate RICO violation. The RICO contribution is limited to its shared predicate offenses ²⁵³
list. In a number of other cases, however, either money laundering is one of several predicate ²⁵⁴
offenses of a larger RICO enterprise or the RICO enterprise is devoted primarily to money ²⁵⁵
laundering.
RICO makes it a federal crime for any person to:
1. conduct or participate, directly or indirectly, in the conduct of
2. the affairs of an enterprise
3. engaged in or the activities of which affect, interstate or foreign commerce
4. A. through the collection of an unlawful debt, or
B. through a pattern of racketeering activity (predicate offenses).²⁵⁶
“To establish the elements of a substantive RICO offense, the government must prove (1) that an
enterprise existed; (2) that the enterprise affected interstate or foreign commerce; (3) that the
defendant associated with the enterprise; (4) that the defendant participated, directly or indirectly,
in the conduct of the affairs of the enterprise; and (5) that the defendant participated in the
enterprise through a pattern of racketeering activity by committing at least two racketeering
(predicate) acts. To establish the charge of conspiracy to violate the RICO statute, the government
must prove, in addition to elements one, two and three described immediately above, that the
defendant objectively manifested an agreement to participate . . . in the affairs of the ²⁵⁷
enterprise.” This statement of the elements addresses the more common RICO prosecution

²⁵²¹⁸^U^.^S.C.¹⁹⁵⁶^(c)(7^)(A^{), 1}⁹⁵⁷⁽^f⁾⁽³^).
²⁵³^Ma^{il f}^r^a^{ud a}ⁿ^{d w}ⁱ^r^e^f^r^a^{ud, 18 U}^.^S.C^.¹³⁴¹^,¹³⁴³^{, a}^r^e^R^I^C^O^pr^e^d^ic^a^t^e^s^{, 18 U}^.^S^.^C^.¹⁹⁶¹⁽¹⁾⁽^B⁾^,^but^a^r^e^not
^indivⁱ^d^u^a^lly^lis^te^{d a}^s^m^oney^la^unde^r^pr^e^d^ic^a^t^e^s^u^nde^r^s^e^c^tio^ns¹⁹⁵⁶^aⁿ^d¹⁹⁵⁷^,¹⁹⁵⁶⁽^c⁾⁽⁷⁾⁽^B⁾^.^N^e^v^e^r^t^he^le^s^s^a^s^R^I^C^O
^pr^e^d^ic^a^t^e^s^the^y^a^r^e^b^y^de^fⁱ^nition^m^oney^la^unde^rⁱ^ng^pr^e^d^ic^a^t^e^s^aⁿ^d^pe^r^m^{it pr}^os^e^c^u^tio^{n u}^nde^r^s^e^c^tio^ns¹⁹^{56 a}^nd¹⁹⁵⁷^th
^tha^t^w^ouldⁿ^o^{t o}^t^he^r^w^is^e^be^pos^sⁱ^ble^,^{see e.}^g^.^,^Unⁱ^t^e^{d S}^t^a^t^{es v.}^F^r^eemaⁿ^,⁴³⁴^F.^3d³⁶^9,³⁷^{4 (}⁵^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^th^st
^S^t^a^t^{es v.}^Ja^mi^es^oⁿ^,⁴²^{7 F.3}^d³⁹^4,³⁹⁹⁽⁶^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^Eps^t^eⁱⁿ^,⁴^{26 F.3}^d⁴³^{1, 43}⁶⁽¹^Cⁱ^r^.²⁰⁰⁵⁾^;^Un^ite^d^th
^State^s^v^.^B^o^s^c^arⁱⁿ^o^,⁴³^{7 F}^.³^d⁶³⁴^,⁶³^{6 (}⁷^{Cir. 2}⁰⁰⁶^{) (“}^Se^c^tioⁿ¹⁹^{56 m}^a^k^e^{s it a}^c^rⁱ^m^e^{to e}ⁿ^g^a^ge^{in f}ⁱ^na^nc^ia^l
^t^r^an^sactⁱ^oⁿ^s^wⁱ^t^h^t^h^{e p}^r^o^ceed^{s o}^f^‘sp^eci^fⁱ^ed^uⁿ^l^awf^u^l^actⁱ^vⁱ^t^y^.^{’ T}^h^a^t^p^h^r^ase,^a^d^e^fⁱⁿ^e^d^t^e^rm^,ⁱⁿ^cl^u^d^e^s^‘an^y^a^c^t^o^r^actⁱ^vⁱ^t^y
^c^onstitu^ting^aⁿ^of^f^e^nse^liste^{d in s}^e^c^{tion 19}⁶¹⁽^{1) of}^this^title^’”^).
²⁵⁴^E.g^.,^Uⁿⁱ^t^e^d^State^s^v^.^G^h^ilar^duc^cⁱ^,⁴^{80 F.3}^d⁵⁴^{2, 54}⁵⁽⁷^th^Cir.²⁰⁰⁷^);^Unⁱ^t^ed^S^t^a^t^{es v.}^G^o^t^tⁱ^,⁴⁵⁹^F.3^d²^96,³^{01 (}²^d
^Cⁱ^r^.²⁰⁰⁶⁾^;^Uⁿ^ite^{d State}^s^v^.^Shw^a^y^de^r^{, 31}^{2 F.}^3d¹¹⁰⁹^,¹¹^{13 (}⁹^th^Cⁱ^r^.²⁰⁰²⁾^;^Unⁱ^t^ed^S^t^a^t^es^v.^E^d^wa^r^d^s^,³⁰³^F.^3d⁶⁰^6,^th^th
⁶¹²⁽⁵^Cⁱ^r^.²⁰⁰²⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^D^e^LaM^a^ta^,²⁶⁶^F.3^d¹²^75,¹²⁷⁸⁽¹¹^Cⁱ^r^.²⁰⁰¹⁾^.
²⁵⁵^Uⁿ^ite^d^St^ate^s^v^.^Ros^s^e^,³²^{0 F.}^3d¹⁷⁰^{, 1}⁷³⁽²^{d C}ⁱ^r^.²⁰⁰³⁾^;^Uⁿ^ite^d^S^t^ate^s^v^.^Far^e^s^e^,²⁴^{8 F.}^3d¹⁰⁵⁶^,¹⁰⁵⁸⁽¹¹^th^Cir.
²⁰⁰¹⁾^.
²⁵⁶^O^t^he^r^s^u^bs^e^c^tions^of^{18 U}^.^S.C^.¹⁹⁶²^o^u^tla^w^a^c^quir^e^or^m^a^intaⁱⁿⁱⁿ^g^c^ontr^o^l^of^a^c^o^m^m^e^r^c^ia^{l e}ⁿ^te^r^p^rⁱ^s^e^thr^o^ug^h
^c^o^lle^c^tion^of^aⁿ^uⁿ^la^w^f^{ul de}^bt^or^pa^tte^rⁿ^of^r^a^c^k^e^t^e^e^r^ing^a^{nd pr}^os^c^r^ibe^c^ons^pir^a^c^y^{to c}^o^m^m^{it a}^R^I^C^O^of^f^e^ns^e^,^{18 U}^.^S.C^.
¹⁹⁶²⁽^a⁾^,(^b)^,(^d)^.
²⁵⁷^Uⁿ^ite^d^St^ate^s^v^.^D^a^r^d^eⁿ^,⁷⁰^F^.^{3d 1}⁵⁰⁷^,¹⁵¹⁸⁽⁸^th^Cⁱ^r^.¹⁹⁹⁵⁾^;^{see a}^l^so^,^Uⁿ^ite^{d S}^t^ate^s^v^.^P^a^rⁱ^s^e^{, 1}⁵⁹^F.^3d⁷⁹^0,⁷⁹^{4 (}³^d
^Cⁱ^r^.¹⁹⁹⁸⁾^;^C^o^fac^r^e^d^it,^S.^{A. v}^.^Wⁱ^nds^or^Plum^bin^g^S^u^p^p^ly^C^o^{., I}ⁿ^c^.^,¹⁸⁷^F.^3d²^29,²⁴^{2 (}²^d^Cⁱ^r^.¹⁹⁹⁹⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^th^th
^Smith^,⁴¹³^F.3^d¹²^53,¹²⁶⁶⁽¹⁰^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^State^s^v^.^O^l^s^oⁿ^{, 45}⁰^F.3^d⁶⁵^{5, 6}⁶³^-⁶⁴⁽⁷^Cir.²⁰⁰⁶^);^Unⁱ^t^ed
⁽^c^onti^nue^d.^..)

involving a pattern of racketeering activity (i.e., predicate offenses), but the government is under
no obligation to prove pattern if the underlying misconduct is “the collection of an unlawful ²⁵⁸
debt.”
The “person” who commits a RICO offense need not be a human being, but may be “any ²⁵⁹
individual or entity capable of holding a legal or beneficial interest in property.” The
“enterprise” element is defined with comparable breath, embracing “any individual, partnership,
corporation, association, or other legal entity, and any union or group of individuals associated in ²⁶⁰
fact although not a legal entity.” In spite of their sweeping scope, the elements are distinct and
a single defendant may not be simultaneously charged as both the “person” and the “enterprise” ²⁶¹
under 18 U.S.C. 1962(c). Subject to this limitation, however, a RICO enterprise may be formal
or informal, legal or illegal. In order for a group associated in fact to constitute a RICO enterprise,
it must be characterized by “an ongoing organization . . . and . . . evidence that [its] various ²⁶²
associates function as a continuing unit.”
The interstate commerce element of the RICO offense may be established either by evidence that
the enterprise has conducted its affairs in interstate commerce or foreign commerce or has ²⁶³
engaged in activities that affect interstate commerce or foreign commerce.
The “pattern of racketeering activity” element demands the commission of at least two predicate ²⁶⁴
offenses, which must be of sufficient relationship and continuity to be described as a ²⁶⁵
“pattern.” Related crimes, for pattern purposes, are marked by “the same or similar purposes,

^(...c^on^tin^ue^d)
^S^t^a^t^{es v.}^N^a^sci^m^en^t^o^,⁴⁹¹^F.3^d²⁵^{, 31}⁽¹^st^Cⁱ^r^.²⁰⁰⁷⁾^.
²⁵⁸^Unⁱ^t^e^d^S^t^a^t^{es v.}^T^o^cco^,²⁰^{0 F}^.³^d⁴⁰¹^,⁴²^{6 (}⁶^th^Cir.²⁰⁰⁰⁾⁽ⁱ^nd^ic^tm^eⁿ^{t ba}^se^d^on^the^c^o^lle^c^tion^of^ille^g^a^{l g}^a^m^b^ling
^p^r^o^ceed^s).^A^l^t^h^ou^gh^t^h^{e “co}^l^l^ectⁱ^oⁿ^o^f^uⁿ^l^aw^f^u^l^d^e^b^t^{s” m}^a^{y cl}^earl^yⁱⁿ^cl^ud^{e l}^o^aⁿ^sh^arkiⁿ^g⁽¹⁸^U.^S^.^C.⁸⁹¹^-89⁶^rel^a^tⁱⁿ^g
^t^o^ext^o^rtⁱ^oⁿ^a^t^e^credⁱ^t^t^r^an^sactⁱ^oⁿ^s^),^t^h^{e col}^l^ectⁱ^o^{n o}^f^an^un^l^a^w^f^u^l^d^e^b^tⁿ^{eed no}^tⁱⁿ^vo^l^v^{e t}^h^{e vi}^o^l^en^ce^{or t}^h^{e t}^h^reat^o^f
^vi^o^l^en^{ce req}^uⁱ^{red o}^f^ext^o^rtⁱ^oⁿ^a^t^e^credⁱ^t^t^r^an^sactⁱ^oⁿ^s^.
²⁵⁹¹⁸^U^.^S^.^C^.¹⁹⁶¹⁽³⁾^.
²⁶⁰¹⁸^U^.^S^.^C^.¹⁹⁶¹⁽⁴⁾^.
²⁶¹^W^haleⁿ^v^.^Wⁱ^nc^he^s^t^e^r^Pr^od^uc^tio^{n C}^o^.^,³¹⁹^F.^3d²²^5,²²^{9 (}⁵^th^Cⁱ^r^.²⁰⁰³⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Fa^irc^h^ild^{, 1}⁸⁹^F.^3d⁷⁶^9,
⁷⁷⁷⁽⁸^th^Cⁱ^r^.¹⁹⁹⁹⁾^;^An^ati^{an v}^.^C^o^utts^B^ank⁽^S^w^itz^e^r^lan^d⁾^L^t^d.^,¹⁹³^F^.^3d⁸⁵^,⁸⁸^-⁹⁽²^d^Cⁱ^r^.¹⁹⁹⁹⁾^;^Ce^d^r^{ic Ku}^shⁿ^e^r
^Pr^om^oti^ons^,^Ltd^.^v^.^Kⁱ^ng^,⁵^{33 U}^.^{S. 1}⁵⁸^,¹⁶¹⁽²⁰⁰¹⁾⁽^h^oldi^ng^{, h}^o^w^e^v^e^r^,^tha^t^the^“^p^e^r^s^o^n”^aⁿ^{d the}ⁱⁿ^di^vⁱ^dua^{l thr}^oug^h
^w^h^o^m^{a co}^rp^o^r^at^{e en}^t^e^rp^rⁱ^{ses act}^{s m}^a^{y b}^e^t^h^{e same an}^dⁿ^eedⁿ^o^t^b^e^dⁱ^stⁱⁿ^ct^).
²⁶²^Uⁿ^ite^d^St^ate^s^v^.^M^o^r^a^le^s^,¹⁸^{5 F.}^3d^74,⁸⁰⁽²^{d C}ⁱ^r^.¹⁹⁹⁹⁾^,^qu^otiⁿ^g^,^Uⁿ^ite^d^St^ate^s^v^.^Tur^k^e^tte^,⁴⁵²^U.S^.⁵⁷^6,⁵⁸³
⁽¹⁹⁸¹⁾^;^{see al}^so^,^Uⁿ^ite^{d St}^ate^s^v^.^Nasc^imeⁿ^to^,⁴⁹^{1 F}^.³^d²⁵^,^32-^{3 (}¹^st^Cⁱ^r^.²⁰⁰⁷⁾^;^Uⁿⁱ^t^e^d^State^s^v^.^Ste^w^ar^t^{, 4}⁸⁵^F.^3d⁶⁶^6,^th
⁶⁷²^-7³⁽²^d^Cir.²⁰⁰⁷^);^Uⁿ^ite^d^Sta^t^e^s^v^.^Sm^ith^{, 4}¹³^F.^3d¹²⁵³^{, 1}²⁶⁶^-²⁶^{7 (}¹⁰^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^Le^e^{, 37}^{4 F.}^3d^th^th
⁶³⁷^,⁶⁴^{7 (}⁸^Cⁱ^r^.²⁰⁰⁴⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Tor^r^e^s^,¹⁹^{1 F.}^2d⁷^99,⁸^05-^{6 (}⁷^Cir.¹⁹⁹⁹^)(“A^{RICO en}^terp^{rise is an}^oⁿ^g^oⁱⁿ^g
^st^ru^ct^u^r^{e o}^f^p^e^rson^{s asso}^ci^at^ed^t^h^r^o^u^g^h^tⁱ^m^e^,^j^oⁱⁿ^edⁱⁿ^p^u^r^p^o^s^e,^{and o}^r^ganⁱ^zedⁱⁿ^{a m}^aⁿⁿ^e^{r a}^m^en^ab^l^e^t^o^hi^erarchⁱ^cal^o^r
^c^ons^eⁿ^s^u^a^l^de^cⁱ^sⁱ^on-^m^a^kⁱ^ng^{. . .}^T^h^e^c^ontin^uity^of^aⁿ^inf^o^r^m^a^l^eⁿ^t^e^r^p^rⁱ^s^e^a^{nd t}^h^e^dif^f^e^r^e^ntia^{tion a}^m^ong^r^o^le^s^c^aⁿ
^p^r^o^vⁱ^d^{e t}^h^{e req}^uⁱ^sⁱ^t^e^st^ru^ct^u^r^{e t}^o^p^r^o^v^{e t}^h^{e el}^em^en^t^s^o^f^t^h^{e en}^t^e^rp^ri^se”);^Uⁿ^ite^{d St}^ate^s^v^.^U^r^b^aⁿ^{, 40}⁴^F^.^3d⁷⁵^4,⁷⁷^{0 (}³^d
^Cⁱ^r^.²⁰⁰⁵⁾⁽^“^Iⁿ^or^de^r^t^o^pr^ov^e^the^r^e^quis^ite^‘^e^nte^r^pr^is^e^,^’^w^e^r^e^quir^e^pr^o^o^f^“⁽¹⁾^tha^t^t^h^e^eⁿ^te^r^p^rⁱ^s^e^is^aⁿ^ong^oi^ng
^or^g^a^niz^a^{tion w}^{ith s}^o^m^e^s^o^r^t^of^f^r^am^ew^or^k^f^o^r^m^a^kⁱ^ng^or^c^a^r^r^y^ing^{out de}^cⁱ^sⁱ^oⁿ^s^;⁽²⁾^t^h^a^t^the^v^a^rⁱ^o^u^s^a^s^s^o^cⁱ^a^t^e^s^f^unc^tion
^a^s^a^c^ontin^uing^unit^;^aⁿ^{d (}³⁾^tha^t^t^h^e^eⁿ^te^r^p^rⁱ^s^e^be^s^e^pa^r^a^te^aⁿ^{d a}^p^a^r^{t f}^r^om^the^pa^tte^{rn of}^a^c^tiv^it^y^{in whic}^{h it}^eⁿ^g^a^g^e^s”^).
²⁶³^Uⁿ^ite^d^St^ate^s^v^.^Ro^be^r^t^s^oⁿ^{, 5}¹⁴^U^.^{S. 6}⁶⁹^,⁶⁷¹⁽¹⁹⁹⁵⁾^;^pr^o^o^f^of^e^v^eⁿ^a^de^mⁱ^nimⁱ^s^ef^f^e^c^t^{on i}ⁿ^te^r^s^ta^te^c^o^m^m^e^r^c^e^is
^s^u^f^f^ic^ie^{nt w}^h^e^r^e^the^eⁿ^te^r^p^rⁱ^s^e^is^eⁿ^g^a^g^e^{d in e}^c^onom^ic^a^c^tiv^it^y^,^Unite^{d St}^ate^s^v^.^N^a^sc^imeⁿ^to^{, 49}¹^F^.³^d²⁵^{, 37-}^{45 (}¹^st^th
^Cⁱ^r^.²⁰⁰⁷⁾^;^Uⁿ^ite^d^State^s^v^.^G^a^r^dⁱⁿ^e^r^,⁴⁶³^F^.^{d 34}⁴⁵^,⁴⁴⁸⁽⁶^Cir.²⁰⁰⁶^);^Unⁱ^t^ed^S^t^a^t^es^v.^S^mⁱ^t^h^,⁴¹³^F^.^3d¹²⁵³^,¹²⁷⁴^-^th^th
²⁷⁵⁽¹⁰^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^Sta^t^e^s^v^.^Rodrⁱ^gue^z^,³⁶⁰^F.^3d⁹⁴^9,⁹⁵^{5 (}⁹^Cⁱ^r^.²⁰⁰⁴⁾^;^Uⁿ^ite^{d Sta}^t^e^s^v^.^G^r^ay^{, 13}^{7 F}^.³^d^th
⁷⁶⁵^,⁷⁷^{3 (}⁴^Cⁱ^r^.¹⁹⁹⁸⁾^.
²⁶⁴¹⁸^U^.^S^.^C^.¹⁹⁶¹⁽⁵⁾^;^Cl^a^r^{k v.}^Tⁱ^{me Wa}^rn^{er Ca}^b^l^e^,⁵²³^F3^{d 1}¹¹⁰^,¹¹^{16 (}⁹^th^Cⁱ^r^.²⁰⁰⁸⁾^.
²⁶⁵^“^A^pa^tte^{rn is}^not^f^o^rm^e^d^b^y^s^pora^d^ic^a^c^tiv^it^y^.^{. . .}^[^A^]^pe^r^s^oⁿ^c^aⁿⁿ^o^{t be}^s^ubje^c^t^e^d^{to t}^h^e^s^a^nc^tio^ns^[^o^f^R^I^C^O^]^sⁱ^m^p^l^y
⁽^c^onti^nue^d.^..)

results, participants, victims, or methods of commission, or otherwise are interrelated by ²⁶⁶
distinguishing characteristics and are not isolated events.”
The “continuity” of predicate offenses may be shown in two ways, either by proof of the regular
occurrence related misconduct over a period of time in the past (closed ended) or by evidence of
circumstances suggesting that if not stopped by authorities they would have continued in the ²⁶⁷
future (open ended).
The courts have been reluctant to find the continuity required for a RICO pattern for closed ended
enterprises (those with no threat of future predicate offenses) unless the enterprise’s activities ²⁶⁸
spanned a fairly long period of time. Open ended continuity (found where there is a threat of
future predicate offenses) is nowhere near as time sensitive and is often found where the
predicates consist of murder, drug dealing or other law-ignoring crimes or is part of the ²⁶⁹
enterprise’s regular way of doing business.
RICO violations are punishable by imprisonment for not more than 20 years (not more than life ²⁷⁰
imprisonment if any of the applicable predicate offenses carries a life sentence). Offenders also

^(...c^on^tin^ue^d)
^f^o^{r c}^o^m^m^itting^tw^{o w}ⁱ^de^l^y^se^pa^ra^te^a^{nd is}^ola^t^e^d^c^r^im^ina^l^of^f^e^nse^s^{. Inste}^a^d^{, t}^h^e^te^rm^‘pa^tte^{rn’ itse}^l^f^re^quire^{s the}
^s^how^ing^of^a^r^e^la^tions^hi^{p be}^tw^e^eⁿ^the^pr^e^d^ic^a^t^e^s^aⁿ^d^of^the^t^h^r^e^a^t^of^c^ontin^uing^a^c^tiv^ity^{. I}^t^is^this^f^a^c^t^or^of^c^ontiⁿ^u^ity
^plus^r^e^la^tio^ns^hi^p^w^hⁱ^c^h^co^m^bⁱⁿ^{es t}^o^p^r^od^u^{ce a p}^a^t^t^e^rⁿ^,^”^H^.^J^{., I}ⁿ^c^.^v^.^Northwe^s^te^rn^Be^{ll Te}^le^p^h^oⁿ^e^Co^.^{, 4}^{92 U}^.^S.²²^9,^st
²³⁹⁽¹⁹⁸⁹⁾⁽^e^m^pha^sⁱ^s^of^the^C^our^t⁾^;^Unⁱ^t^e^{d S}^t^a^t^{es v.}^Ci^an^ci^{, 37}⁸^F^.³^d⁷¹^{, 88 (}¹^Cⁱ^r^.²⁰⁰⁴⁾^;^Unⁱ^t^ed^S^t^a^t^{es v.}^Del^g^ad^o^,^th^th
⁴⁰¹^F.^3d²^90,²⁹^{8 (}⁵^Cⁱ^r^.²⁰⁰⁵⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Sm^it^h^{, 41}⁴^F^.³^d¹²⁵^{3, 12}⁶⁹⁽¹⁰^Cⁱ^r^.²⁰⁰⁵⁾^;^Uni^t^ed^S^t^a^t^{es v.}^th
^Da^id^on^e^,⁴⁷^{1 F.}^3d³^71,³^74-^{76 (}^{2d C}ⁱ^r^.²⁰⁰⁶⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Br^ow^ne^,⁵⁰^{5 F.}^3d¹²²⁹^,¹²^57-²⁵^{8 (}¹¹^Cⁱ^r^.²⁰⁰⁷⁾^.
^P^rⁱ^o^r^c^o^nv^ic^tio^{n of}^a^pr^e^d^ic^a^t^e^of^f^e^ns^e^,^how^e^v^e^r^{, is}^{not r}^e^q^u^ir^e^d^or^e^v^eⁿ^us^ua^l,^B^anc^O^k^lah^o^m^a^M^o^r^t^gage^C^o^r^p^.^v^.^th
^Capit^a^{l T}^itle^Co^.^,¹⁹^{4 F.}^3d¹⁰⁸⁹^,¹¹⁰^{2 (}¹⁰^Cⁱ^r^.¹⁹⁹⁹⁾^;^c^f^.,^Se^dim^a^{, S.P}^.^R.L^.^v^.^Im^r^e^x^Co.,^Inc^.^,⁴⁷³^U^.^{S. 4}⁷⁹^,⁴^88-⁹³
⁽¹⁹⁸⁵⁾⁽^a^pr^iv^a^t^e^c^a^u^s^e^of^a^c^{tion u}^nde^r^R^I^C^O^doe^sⁿ^o^{t r}^e^q^u^ir^e^t^h^e^p^r^ior^c^o^nv^ic^tion^of^a^de^f^e^nda^nt)^.
²⁶⁶^H^.^J^{., Inc}^.^v^.^Nor^t^hwe^s^te^rⁿ^Be^{ll T}^e^le^pho^ne^Co.,⁴^{92 U}^.^{S. a}^t²⁴^0,^qu^oting^{18 U}^.^S.C^.³⁵⁷⁵⁽^e⁾^;^Unite^d^S^t^ate^s^v^.^Ke^ltne^r^,
¹⁴⁷^F³^.d⁶^62,⁶⁶^{9 (}⁸^th^Cⁱ^r^.¹⁹⁹⁸⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Tor^r^e^s^,¹⁹^{1 F.}^3d⁷⁹^9,⁸⁰^{6 (}⁷^th^Cⁱ^r^.¹⁹⁹⁹⁾^;^Uⁿⁱ^t^e^d^State^s^v^.^D^a^id^one^,^th
⁴⁷¹^F.^3d³^71,³⁷^4-^{74 (}²^d^Cⁱ^r^.²⁰⁰⁶⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Br^ow^ne^{, 5}⁰⁵^F.3^d¹²^29,¹²⁵⁷^-²^{58 (}¹¹^Cir.²⁰⁰⁷^).
²⁶⁷^H.J^.,Inc^{. v}^.^N^o^rthwe^s^te^rn^Be^{ll Te}^l.Co.^,⁴^{92 U}^.^S.²²^9,²⁴^{1 (}¹⁹⁸⁸⁾⁽^“^c^onti^nuity^“ⁱ^s^bot^{h a}^c^l^os^e^d^-^a^nd^ope^n-^eⁿ^de^d
^c^onc^e^p^{t, r}^e^f^e^r^rⁱ^ng^e^ithe^r^to^a^c^l^os^e^d^e^nd^pe^rⁱ^o^d^of^r^e^pe^a^t^e^d^c^ond^uc^t^,^or^t^o^pa^s^t^c^oⁿ^duc^t^tha^t^by^its^na^tur^e^pr^o^j^e^c^t^s^int^o
^the^f^u^ture^w^{ith a}^thre^a^t^of^re^pe^tition”^);^Sp^ool^v^.^W^o^r^l^{d C}^h^il^{d I}ⁿ^te^rⁿ^{. Ad}^opti^oⁿ^Ageⁿ^c^y^{, 5}²⁰^F.3^d¹⁷^8,¹⁸^{3 (}^{2d C}ⁱ^r^.^th
²⁰⁰⁸⁾^;^Uⁿ^ite^d^St^ate^s^v^.^Br^ow^ne^{, 5}⁰⁵^F.3^d¹²^29,¹²⁵⁹⁽¹¹^Cⁱ^r^.²⁰⁰⁷⁾^;^Jenⁿⁱⁿ^g^s^v.^A^u^t^o^Met^e^{r P}^r^o^duct^s^,^In^c.^{, 49}⁵^F.^3d^th
⁴⁶⁶^,⁴⁷^{4 (}⁷^Cⁱ^r^.²⁰⁰⁷⁾^.
²⁶⁸^Sp^ool^v^.^W^o^r^l^d^C^h^il^{d I}ⁿ^te^rⁿ^.^Ado^p^tio^{n A}^g^eⁿ^c^y^{, 5}²⁰^F.^{3d a}^t¹⁸^{4 (}^“^w^e^hav^e^ne^v^e^r^he^{ld a}^pe^rⁱ^o^d^of^le^s^s^thaⁿ^tw^{o y}^e^a^r^s
^{to c}^o^nstitu^te^a^substaⁿ^tia^{l pe}^ri^od^of^tim^e^”^suff^ic^ie^{nt to c}^onstit^ute^a^c^l^ose^d^e^nde^{d RICO pa}^tte^rⁿ^);^Pri^m^ary^Care^th
^In^vest^o^rs,^S^even^v.^P^H^P^Hea^l^t^h^c^a^{re Co}^rp^.^,⁹⁸^{6 F}^.²^d¹²⁰⁸^,¹²¹⁵⁽⁸^Cⁱ^r^.¹⁹⁹³⁾⁽^h^ol^ding^p^r^e^d^ic^a^t^e^of^f^e^ns^e^s^ov^e^r^10-¹¹
^m^onths^ins^u^f^fⁱ^cⁱ^eⁿ^{t a}^{nd c}^iti^ng^c^a^s^e^s^fⁱ^nding^s^e^v^e^r^a^l^y^e^a^r^s^s^u^f^fⁱ^c^ie^{nt but}^s^e^v^e^r^a^{l pe}^rⁱ^ods^of^le^s^s^thaⁿ^a^y^e^a^r^ins^u^f^f^ic^ie^nt)^;^th
^Uⁿ^ite^{d State}^s^v^.^Br^ow^ne^,⁵⁰⁵^F.3^d¹²²⁹^,¹²^{63 (}¹¹^Cⁱ^r^.²⁰⁰⁷⁾⁽^h^ol^ding^pr^e^d^ic^a^t^e^of^f^e^ns^es^ov^e^r^a^fⁱ^ve^y^e^a^r^pe^rⁱ^od
^s^u^f^f^ic^ie^{nt to s}^h^ow^a^c^l^os^e^d^e^nde^d^R^I^C^O^pa^tte^rⁿ⁾^.
²⁶⁹^Uⁿ^ite^d^St^ate^s^v^.^Tor^r^e^s^,¹⁹^{1 F.}^3d⁷⁹^9,⁸⁰^{8 (}⁷^th^Cⁱ^r^.¹⁹⁹⁹⁾⁽^“^A^s^othe^r^c^our^ts^of^a^ppe^a^l^s^ha^v^e^note^d^{, i}ⁿ^c^a^s^e^s^w^h^e^r^e^the
^a^c^t^s^of^the^de^f^e^nda^{nt or}^t^h^e^eⁿ^te^r^p^rⁱ^s^e^w^e^r^e^inhe^r^e^ntly^unla^w^f^u^{l, s}^u^c^h^a^s^m^u^r^d^e^r^or^o^b^s^t^r^u^c^tⁱ^oⁿ^of^jus^tⁱ^c^e^,^a^{nd w}^h^e^r^eⁱⁿ
^pur^s^uⁱ^t^ofⁱⁿ^he^r^e^ntly^unla^w^f^u^{l g}^o^a^l^s^,^s^u^c^h^a^s^na^r^c^otic^s^tr^a^f^fⁱ^c^k^ing^o^r^e^m^be^zz^lem^e^{nt, the}^c^o^ur^ts^g^e^ne^r^a^lly^hav^e
^c^onc^lu^de^{d t}^h^a^t^the^r^e^quis^ite^thr^e^a^t^of^c^onti^nuity^w^a^s^a^d^e^qua^te^ly^e^s^t^a^blishe^d^by^the^na^ture^of^the^a^c^tiv^ity^{, e}^v^eⁿ^thoug^h
^the^pe^rⁱ^{od s}^p^a^nne^d^by^the^r^a^c^k^e^t^ee^rⁱ^ng^a^c^tiv^it^y^w^a^s^s^hor^t”⁾^.^O^p^eⁿ^e^nde^{d c}^ontiⁿ^u^ity^m^a^y^a^l^s^o^be^f^oun^{d w}^h^e^r^e^the
^e^v^ideⁿ^c^e^sug^g^e^{sts tha}^t^only^theⁱⁿ^te^rv^eⁿ^tion^of^la^w^eⁿ^f^o^rc^e^m^eⁿ^{t a}^u^t^horitie^{s c}^l^ose^d^d^o^wⁿ^the^eⁿ^te^r^p^ris^e^,^Uⁿ^ite^{d Sta}^t^e^s^v^.
^Ric^har^ds^on^,¹^{67 F.3}^d⁶²^{1, 62}^6-²⁷⁽^D^.C^.C^ir^.¹⁹⁹⁹⁾^;^Ja^ckson^v.^B^e^l^l^so^u^t^{h T}^e^l^eco^mmuⁿⁱ^ca^tⁱ^oⁿ^s^{, 37}²^F^.^{3d 12}⁵⁰^,¹²⁶⁷^th^st
⁽¹¹^Cⁱ^r^.²⁰⁰⁴⁾^;^Uⁿ^ite^d^St^ate^s^v^.^C^onn^olly^{, 34}^{1 F.3}^d^{16, 30}⁽¹^Cⁱ^r^.²⁰⁰³⁾^.
²⁷⁰¹⁸^U^.^S^.^C^.¹⁹⁶³⁽^a⁾^.

face fines of up to $250,000 (up to $500,000 for organizations) as well as the confiscation of any ²⁷¹
property associated with the offense. They may also be liable to their victims for triple ²⁷²²⁷³
damages, and subject to the equitable remedies, at least the behest of the government.
The RICO conspiracy and accomplice branches of the statute are notable for at least two reasons.
RICO conspiracies are outlawed in a subsection of section 1962, 18 U.S.C. 1962(d), that imposes
no overt act requirement. The crime is complete upon the agreement to commit a RICO ²⁷⁴
offense. Second, at least in some circuits, RICO accomplices are not subject to RICO tort ²⁷⁵
liability.

²⁷¹¹⁸^U^.^S.C.¹⁹⁶³^{(a), (b}⁾^.
²⁷²¹⁸^U^.^S^.^C^.¹⁹⁶⁴⁽^c⁾^.
²⁷³¹⁸^U^.^S^.^C^.¹⁹⁶⁴⁽^a⁾^.
²⁷⁴^Salⁱⁿ^as^v^.^Uⁿ^ite^{d S}^t^ate^s^,⁵²^{2 U}^.^S^.⁵²^{, 6}³⁽¹⁹⁹⁷⁾^;^Uⁿ^ite^{d St}^ate^s^v^.^S^m^ith^,⁴¹^{3 F.}^3d¹²⁵³^,¹²^{65 (}¹⁰^th^Cⁱ^r^.²⁰⁰⁵⁾^;
^Uⁿ^ite^{d State}^s^v^.^Br^ow^ne^,⁵⁰⁵^F.3^d¹²²⁹^,¹²^63-²⁶^{4 (}¹¹^th^Cⁱ^r^.²⁰⁰⁷⁾^.
²⁷⁵^Rol^o^v^.^City^Iⁿ^v^e^s^ting^Co.^Li^qui^d^a^tin^{g Tr}^ust^,¹⁵^{5 F.}^3d⁶^44,⁶^56-⁶⁸⁽³^d^Cⁱ^r^.¹⁹⁹⁸⁾^;^Ju^b^e^lⁱ^r^{er v.}^Ma^st^erCa^rd
^Iⁿ^te^r^nat^io^nal,^Iⁿ^c^.^,⁶⁸^F^.^S^u^p^p^.¹⁰⁴⁹^,¹⁰⁵³^-5^{4 (D.}^Wⁱ^s^.¹⁹⁹⁹^{) (d}ⁱ^s^mⁱ^ssiⁿ^g^{RICO cl}^ai^m^agaiⁿ^s^t^credⁱ^t^card^co^m^p^an^y^,
^ba^nk^a^{nd I}ⁿ^te^rⁿ^e^t^c^a^sⁱⁿ^o^{on t}^h^e^g^r^oun^ds^{, a}^m^ong^ot^he^r^s^{, tha}^t^the^r^e^is^{no R}^I^C^O^cⁱ^v^{il lia}^bili^ty^f^o^r^thos^e^w^{ho a}ⁱ^{d a}ⁿ^d^a^b^e^t^a
^R^I^C^O^vⁱ^ola^tion)^;^{In re Ma}^sterCa^rd^In^terna^tⁱ^o^na^l^Iⁿ^c^{., I}ⁿ^te^rne^t^Ga^mblin^{g Li}^tig^atioⁿ^{, 13}²^F^.^S^u^p^p^.2^{d 468}^,⁴⁹³^-⁹⁵^th
^(E.D^.L^a^.²⁰⁰^1)(s^a^m^e⁾^,^aff’d^,³¹³^F^.^3d²⁵⁷⁽⁵^Cⁱ^r^.²⁰⁰²⁾^;^b^u^t^see,^A^m^eri^c^aⁿ^A^u^t^o^mo^tⁱ^{ve A}^ccesso^ri^e^s^,^In^c.^v.^Fⁱ^sh^man^,
⁹⁹¹^F.^Su^pp.⁹^87,⁹^{93 (}^N^.D^.I^ll.¹⁹⁹⁸⁾⁽^“^to^be^he^{ld l}ⁱ^a^b^le^a^s^aⁿ^aⁱ^de^r^a^{nd a}^b^e^t^t^o^r^,^a^pe^r^s^{on m}^u^s^tⁱⁿ^s^o^m^e^s^o^r^t^a^s^s^o^cⁱ^a^t^e
^him^s^e^l^f^w^{ith the}^v^e^nture^,^pa^rtic^ip^a^t^e^{in it a}^s^som^e^thing^he^wⁱ^s^h^e^s^{to br}ⁱⁿ^g^a^b^o^u^t,^a^{nd s}^e^e^k^by^his^a^c^tion^{to m}^a^k^e^it
^su^cceed^”)(n^o^tin^g^t^h^{at th}^e^Sev^eⁿ^t^h^Circu^it^h^a^{s y}^e^{t to}^“co^mmen^t^oⁿ^t^h^{e p}^o^ssi^b^ility^o^f^aidⁱⁿ^g^an^d^ab^ettiⁿ^g^liab^ilityⁱⁿ^civ^il
^{RICO actio}ⁿ^s^”);^Sim^{on v}^.^W^e^av^e^r^{, 32}⁷^F.S^u^p^p^.2^d²⁵^8,²⁶^{2 (}^S^.D^.N^.^Y^{. 20}⁰⁴⁾⁽^“^Iⁿ^or^de^r^to^pr^ope^r^l^y^a^lle^g^e^a^c^l^aⁱ^m^f^o^r
^aⁱ^ding^aⁿ^d^a^b^e^tti^ng^[^a^R^I^C^O^vⁱ^ola^tion^]^{, pla}ⁱ^ntif^f^s^m^u^s^t^s^how^{. . .”}⁾^.

-7 U.S.C. 2024 (Food Stamp Act of 1977 felony (violation involving a quantity of coupons
having a value of not less than $5,000)) (various from 1 to 20 years);
-8 U.S.C. 1324 (bringing in and harboring certain aliens (committed for the purpose of financial ²⁷⁶
gain)) ( various from 5 years to life);*
-8 U.S.C. 1327 (aiding or assisting certain aliens to enter the United States (committed for the
purpose of financial gain)) (10 years);*
-8 U.S.C. 1328 (importation of alien for immoral purpose (committed for the purpose of financial
gain)) (10 years);*
-15 U.S.C. 77a et seq. (fraud in the sale of securities) (5 years);*
-15 U.S.C. 78ff (Foreign Corrupt Practices Act felony) (various from 5 to 20 years);
-18 U.S.C. 32 (destruction of aircraft) (20 years);²⁷⁷
-18 U.S.C. 37 (violence at international airports) (20 years);
-18 U.S.C. 81 (arson within special maritime and territorial jurisdiction) (25 years);** ²⁷⁸
-18 U.S.C. 115 (influencing, impeding, or retaliating against a Federal official by threatening or
injuring a family member) (various from 1 to 30 years);
-18 U.S.C. 152 (concealment of assets; false oaths and claims; bribery) (5 years);
-18 U.S.C. 175-178 (biological weapons) (various from 5 years to life);*
-18 U.S.C. 175c (variola virus) (various from 25 years to life);
-18 U.S.C. 201 (bribery) (various from 2 to 15 years);*
-18 U.S.C. 215 (commissions or gifts for procuring loans) (various 1 to 30 years);
-18 U.S.C. 224 (sports bribery) (5 years);*

²⁷⁶^*^{RICO p}^r^edⁱ^cat^{e o}^f^f^eⁿ^s^e.
²⁷⁷^H^e^r^e^a^{nd in}^s^e^v^e^r^a^{l othe}^r^ins^t^aⁿ^c^e^s^,^the^de^a^t^h^pe^na^lty^is^aⁿ^a^lte^rⁿ^a^t^iv^e^s^a^nc^{tion w}^h^eⁿ^c^o^m^m^is^sⁱ^{on of}^the^of^f^e^ns^e
^re^{sults in a}^de^a^t^h.
²⁷⁸^*^*^A^f^e^de^r^a^{l c}^rⁱ^m^e^o^f^te^r^r^o^rⁱ^s^m^tha^t^a^s^s^u^c^h^c^ons^ti^tute^s^a^R^I^C^O^pr^e^d^ic^a^t^e^a^{nd t}^h^e^r^e^f^or^e^a^m^one^y^la^unde^rⁱ^ng^pr^e^d^ic^a^t^e
^a^{nd t}^h^a^t^isⁿ^o^t^ot^he^r^w^is^e^lis^te^{d on}^e^ithe^r^R^I^C^O^or^m^oney^la^unde^rⁱⁿ^g^pr^e^d^ic^a^t^e^lis^ts^{; c}^r^im^e^s^w^h^ic^{h a}^r^{e bot}^{h m}^one^y
^la^unde^rⁱ^ng^pr^e^d^ic^a^t^e^s^aⁿ^d^f^e^de^r^a^{l c}^r^im^e^s^of^te^r^r^o^rⁱ^sm^or^R^I^C^O^of^f^e^ns^e^s^e^.^g^{., 18}^U^.^S.C^.³²⁽^d^e^s^tr^uc^tio^{n of}^aⁱ^r^c^r^a^f^t⁾^a^r^e
^{not ide}ⁿ^tⁱ^fⁱ^e^d^w^ith^*^*^.

-18 U.S.C. 229-229F (chemical weapons) (life);*
-18 U.S.C. 287 (federal health care offense relating to a benefit program) (5 years);
-18 U.S.C. 351 (violence against Members of Congress or Cabinet officers) (various from 1 year
to life);
-18 U.S.C. 371 (conspiracy to commit a federal health care offense) (5 years);~²⁷⁹
-18 U.S.C. 471, 472, and 473 (counterfeiting) (20 years);*
-18 U.S.C. 500-503 (certain counterfeiting offenses) (5 years);
-18 U.S.C. 541 (goods falsely classified) (2 years);
-18 U.S.C. 542 (entry of goods by means of false statements) (2 years);
-18 U.S.C. 544 (smuggling goods from the United States) (2 years);
-18 U.S.C. 545 (smuggling goods into the United States) (20 years);
-18 U.S.C. 549 (removing goods from Customs custody) (10 years);
-18 U.S.C. 641 (public money, property, or records) (various from 1 to 10 years);
-18 U.S.C. 656 (theft, embezzlement, or misapplication by bank officer or employee) (various
from 1 to 30 years);
-18 U.S.C. 657 (lending, credit, and insurance institutions) (various from 1 to 30 years);
-18 U.S.C. 658 (property mortgaged or pledged to farm credit agencies) (various from 1 to 5
years);
-18 U.S.C. 659 (felonious theft from interstate shipment) (various from 3 to 10 years);*
-18 U.S.C. 664 (embezzlement from pension and welfare funds) (various from 1 to 10 years);
-18 U.S.C. 666 (theft or bribery concerning programs receiving Federal funds) (10 years);
-18 U.S.C. 669 (federal health care offense) (various from 1 to 10 years);~
-18 U.S.C. 793, 794, 798 (espionage) (various from 1 year to life);
-18 U.S.C. 831 (prohibited transactions involving nuclear materials) (various from 10 years to
life);

²⁷⁹^{~ “}^A^c^t^{or a}^c^tiv^it^y^c^onstituti^ng^aⁿ^of^fe^nse^inv^o^lv^ing^a^f^e^de^ra^{l he}^a^{lth c}^a^r^e^of^fe^nse^”^{not ot}^he^rw^ise^liste^{d a}^s^a^m^one^y
^la^unde^rⁱ^ng^pr^e^d^ic^a^t^e^of^f^e^ns^e^,¹⁸^U^.^S.C^.¹⁹⁵⁶⁽^c⁾⁽⁷⁾⁽^F)^.

-18 U.S.C. 832 (participation in foreign nuclear weapons programs) (various from 20 years to
life);**
-18 U.S.C. 842(m), (n) (plastic explosives) (10 years);**
-18 U.S.C. 844(f), (i) (destruction by explosives or fire of Government property or property
affecting interstate or foreign commerce) (various from 20 years to life);
-18 U.S.C. 875 (interstate communications) (various from 2 to 20 years);
-18 U.S.C. 891-894 (extortionate credit transactions) (20 years);*
-18 U.S.C. 922(1) (unlawful importation of firearms) (5 years);
-18 U.S.C. 924(n) (firearms trafficking) (10 years);
-18 U.S.C. 930(c) (killing or attempted killing during an attack on a Federal facility with a
dangerous weapon) (various from 7 years to life);**
-18 U.S.C. 956 (conspiracy to kill, kidnap, maim, or injure certain property in a foreign country)
(various from 35 years to life);
-18 U.S.C. 1001 (false statement relating federal health care) (5 years); ~
-18 U.S.C. 1005 (fraudulent bank entries) (30 years);
-18 U.S.C. 1006 (fraudulent Federal credit institution entries) (30 years);
-18 U.S.C. 1007 (fraudulent Federal Deposit Insurance transactions) (30 years);
-18 U.S.C. 1014 (fraudulent loan or credit applications) (30 years);
-18 U.S.C. 1028 (fraud and related activity in connection with identification documents) (various
from 1 to 30 years);*
-18 U.S.C. 1029 (fraud and related activity in connection with access devices) (various from 10 to

20 years);*

-18 U.S.C. 1030 (computer fraud and abuse) (various from 1 to 20 years);
-18 U.S.C. 1032 (concealment of assets from conservator, receiver, or liquidating agent of
financial institution) (5 years);
-18 U.S.C. 1035 (false statements relating to federal health care) (5 years); ~
-18 U.S.C. 1084 (transmission of gambling information) (2 years);*
-18 U.S.C. 1111 (murder) (life);
-18 U.S.C. 1114 (killing a United States employee or officer) (various from 8 years to life);

-18 U.S.C. 1116 (killing a foreign official, official guest, or internationally protected person)
(various from 7 years to life);
-18 U.S.C. 1201 (kidnapping) (life);
-18 U.S.C. 1203 (hostage taking) (life);
-18 U.S.C. 1341 (mail fraud) (various from 20 to 30 years);*
-18 U.S.C. 1343 ( wire fraud) (various from 20 to 30 years);*
-18 U.S.C. 1344 (financial institution fraud) (30 years);*
-18 U.S.C. 1347 (federal health care fraud) (various from 20 years to life);
-18 U.S.C. 1361 (willful injury of Government property) (various from 1 to 10 years);
-18 U.S.C. 1362 (destruction of communication lines, stations, or systems) (10 years);**
-18 U.S.C. 1363 (destruction of property within the special maritime and territorial jurisdiction)
(various from 5 to 20 years);
-18 U.S.C. 1366(a)(destruction of an energy facility) (20 years );**
-18 U.S.C. 1425 (procurement of citizenship or nationalization unlawfully) (various from 10 to 25
years);*
-18 U.S.C. 1426 (reproduction of naturalization or citizenship papers) (various from 10 to 25
years);*
-18 U.S.C. 1427 (sale of naturalization or citizenship papers) (various from 10 to 25 years);*
-18 U.S.C. 1461-1465 (obscene matter) (various from 2 to 10 years);*
-18 U.S.C. 1503 (obstruction of justice) (various from 8 years to life);*
-18 U.S.C. 1510 (relating to obstruction of criminal investigations) (5 years);*
-18 U.S.C. 1511 (obstruction of State or local law enforcement) (5 years);*
-18 U.S.C. 1512 (tampering with a witness, victim, or an informant) (various from 3 years to
life);*
-18 U.S.C. 1513 (retaliating against a witness, victim, or an informant) (various from 8 years to
life);*
-18 U.S.C. 1518 (obstructing a federal health care investigation) (5 years); ~
-18 U.S.C. 1542 (false statement in application and use of passport) (various from 10 to 25
years);*

-18 U.S.C. 1543 (forgery or false use of passport) (various from 10 to 25 years);*
-18 U.S.C. 1544 (misuse of passport) (various from 10 to 25 years);*
-18 U.S.C. 1546 (fraud and misuse of visas, permits, and other documents) (various from 10 to 25
years);*
-18 U.S.C. 1581-1592 (peonage, slavery, and trafficking in persons) (various from 2 years to
life);*
-18 U.S.C. 1708 (theft from the mail) (5 years);
-18 U.S.C. 1751 (violence against the President) (various from 1 year to life);
-18 U.S.C. 1951 (interference with commerce, robbery, or extortion) (20 years);*
-18 U.S.C. 1952 (racketeering (Travel Act)) (various from 5 years to life);*
-18 U.S.C. 1953 (interstate transportation of wagering paraphernalia) (5 years);*
-18 U.S.C. 1954 (unlawful welfare fund payments) (3 years);*
-18 U.S.C. 1955 (illegal gambling businesses) (5 years);*
-18 U.S.C. 1956 (laundering of monetary instruments) (20 years);*
-18 U.S.C. 1957 (engaging in monetary transactions in property derived from specified unlawful
activity) (10 years);*
-18 U.S.C. 1958 (use of interstate commerce facilities in the commission of murder-for-hire)
(various from 10 years to life);*
-18 U.S.C. 1960 (money transmitters) (5 years);*
-18 U.S.C. 1992 (attacks and other acts of violence against mass transportation systems) (various
from 20 years to life);**
-18 U.S.C. 2113, 2114 (bank and postal robbery and theft) (various from 1 year to life);
-18 U.S.C. 2155 (destruction of national defense materials, premises, or utilities) (various from 20
years to life);**
-18 U.S.C. 2156 (national defense material, premises, or utilities) (10 years);**
-18 U.S.C. 2251, 2251A, 2252, and 2260 (sexual exploitation of children) (various from 10 years
to life);*
-18 U.S.C. 2280 (violence against maritime navigation) (various from 20 years to life);
-18 U.S.C. 2281 (violence against maritime fixed platforms) (various from 20 years to life);

-18 U.S.C. 2312, 2313 (interstate transportation of stolen motor vehicles) (10 years);*
-18 U.S.C. 2314, 2315 (interstate transportation of stolen property) (10 years)
-18 U.S.C. 2318 (trafficking in counterfeit labels for phonorecords, computer programs or
computer program documentation or packaging and copies of motion pictures or other
audiovisual works) (5 years);*
-18 U.S.C. 2319 (criminal infringement of a copyright) (various from 1 to 5 years);*
-18 U.S.C. 2319A (relating to unauthorized fixation of and trafficking in sound recordings and
music videos of live musical performances) (various from 5 to 10 years);*
-18 U.S.C. 2320 (trafficking in goods or services bearing counterfeit marks) (various from 10 to

20 years);*

-18 U.S.C. 2321 (trafficking in certain motor vehicles or motor vehicle parts) (10 years);*
-18 U.S.C. 2332 (terrorist acts abroad against United States nationals) (various from 3 years to
life);
-18 U.S.C. 2332a (use of weapons of mass destruction) (life);
-18 U.S.C. 2332b (international terrorist acts transcending national boundaries) (various from 10
years to life);
-18 U.S.C. 2332f (bombing of public places and facilities) (life);**
-18 U.S.C. 2332g (missile systems designed to destroy aircraft) (life);
-18 U.S.C. 2332h (radiological dispersal devices) (life);
-18 U.S.C. 2339 (harboring terrorists) (10 years);**
-18 U.S.C. 2339A, 2339B (providing material support to terrorists) (various from 15 years to
life);
-18 U.S.C. 2339C (financing of terrorism) (various from 10 to 20 years);**
-18 U.S.C. 2339D (foreign military training) (10 years)**
-18 U.S.C. 2340A (torture) (various from 20 years to life);
-18 U.S.C. 2341-2346 (trafficking in contraband cigarettes) (various from 3 to 5 years);*
-18 U.S.C. 2421-24 (white slave traffic) (various from 10 years to life);*
-19 U.S.C. 1590 (aviation smuggling) (various from 5 to 20 years);

-21 U.S.C. 841 et seq. (felonious manufacture, importation, receiving, concealment, buying,
selling, or otherwise dealing in a controlled substance or listed chemical) (various from 1 year to
life);*
-21 U.S.C. 863 (drug paraphernalia) (3 years);
-21 U.S.C. 960A (narc-terrorism) (various from 2 years to life);**
-22 U.S.C. 2778(c)(Arms Export Control Act) (10 years);
-22 U.S.C. 611 et seq. (Foreign Agents Registration Act of 1938 felony) (various from 1 to 5
years);
-29 U.S.C. 186 (dealing with restrictions on payments and loans to labor organizations) (various
from 1 to 5 years);*
-29 U.S.C. 501(c) (embezzlement from union funds) (5 years);*
-33 U.S.C. 1251 et seq. (Federal Water Pollution Control Act felony) (various from 1 to 15 years);
-33 U.S.C. 1401 et seq. (Ocean Dumping Act felony) (5 years);
-33 U.S.C. 1901 et seq. (Act to Prevent Pollution from Ships felony) (6 years);
-42 U.S.C. 300f et seq. (Safe Drinking Water Act felony) (various from 3 to 20 years);
-42 U.S.C. 1490s(a)(1)(Housing Act of 1949 (equity skimming)) (5 years);
-42 U.S.C. 2122 (atomic weapons) (life);
-42 U.S.C. 2284 (sabotage of nuclear facilities or fuel) (various from 20 years to life);**
-42 U.S.C. 6901 et seq. (Resources Conservation and Recovery Act felony) (various from 2 to 15
years);
-49 U.S.C. 46502 of title 49 (air piracy) (life);
-49 U.S.C. 46504 (second sentence) (relating to assault on a flight crew with a dangerous
weapon) (various from 20 years to life);**
-49 U.S.C. 46505(b)(3),(c) (explosive or incendiary devices, or endangerment of human life by
means of weapons, on aircraft) (various from 10 to 20 years);**
-49 U.S.C. 46506 (if homicide or attempted homicide is involved) (application of certain criminal
laws to acts on aircraft) (various from 7 years to life);**
-49 U.S.C. 60123 ( b) (destruction of interstate gas or hazardous liquid pipeline facility) (various
from 5 years to life);**
-50 U.S.C. 1705 (International Emergency Economic Powers Act) (20 years);

-50 U.S.C. App. 16 (Trading with the Enemy Act) (10 years).

^Arizona:^{Ariz.Rev.Stat.Ann. §13-231}⁷^Montana:^{Mont.Code Ann. §45-}^6-34¹
^Arkansas:^{Ark.Code Ann. §§5-4}^2-20^{1 to 5-4}^2-2⁰⁵^Nebraska:^{Neb. Rev. Stat. §28-205}
^California:^{Cal. Penal Code §§1}^{86.9, 1}^86.1⁰^{New Jersey:}^N.J.Stat^{.Ann. §§2C:}^21-2^{3 to 2C:2}^1-29
^Colora^do:^Colo.Rev.^{Stat.Ann. §}^18-1^8-40⁸^{New Mex}^ico:^{N.Mex.Stat.Ann. §§30-51-1}^{to 30-5}^1-5
^Connecticut:^Conn.Ge^{n.Stat.Ann. §53a-}²⁷^{5 to 53a-}²⁸²^{New York: N.Y.}^{Penal Law §§4}^70.0^{0 to 47}^0.2⁵
^Delaware:^{Del. C}^{ode Ann. tit. 11, §150}³^{North Car}^olina:^{N.C.Gen.Stat. §§75D-1 to 75D-1}⁴
^Florida^{: Fla.Stat}^{.Ann.§§896.101}^t^o^896.1⁰⁷^{North Dakota:}^{N.D.Cent.Code}^§19-03.^{1-23, 1}^2.1-
^08-0⁴

^Georgia^{: G}^A^.C^ODE^§§7-1-91^{0 to}^7-1-9¹⁶^Ohio^{: O}^HIO^R^EV^.C^ODE^A^NN^.^{§§ 1}^315.^{55, 2}⁹⁰^9.29,
^Hawaii^{: H}^AWAII^R^EV^.S^TAT^.^{§§708A-1 to 70}^8A-3²⁹²^3.3^{1, 29}^23.3²
^Idaho^{: I}^DAHO^C^ODE^§18-⁸²⁰¹^Oklahoma^{: O}^KLA^.S^TAT^.A^NN^.^tit^.^{63 §2-5}^03.^{1, tit.21}^§200¹
^Illinois^{: I}^LL^.C^OM^P^.L^AW^S^A^NN^.^ch.⁷²⁰^§5/2^9B-1^Oregon^:^O^RE^.R^EV^.S^TAT^.^§^§164.17^{0 to 16}^4.17⁴
^Indiana^{: I}^ND^.C^ODE^A^NN^.^§^§35-45^-15-1^TO^35-^45-1^5-5^{Pennsylvania:}¹⁸^P^A^.^C^ONS^.^S^TA^T^.^A^NN^.^§5111
^Iowa^{: I}^OWA^C^ODE^A^NN^.^§§706B.^{1 to 70}^6B.3^{Rhode Island}^{: R.I.G}^EN^.L^AWS^§11-9.1-15
^Kansas:^K^AN^.^S^TA^T^.^A^NN^.^§65-4142^{South Car}^olina^{: S.C.}^C^ODE^A^NN^{. §44-53-47}⁵
^Louisiana^{: L}^A^.R^EV^.S^TAT^.A^NN^.^§§1^4:23^{0, 14:1}⁰⁴¹

^Maryland:^{Md. Code Ann. §5-62}³^Tennesse^{: T}^EN^N^.C^ODE^A^NN^{. §§3}^9-14-6^02,^39-1^4-9⁰¹
^Michigan^{: Mich.Comp.Laws An}ⁿ^.^{§§750.411j to 7}^50.4¹¹^p^{to 39-1}^4-90⁹
^Mississippi:^Miss.^{Code Ann. §97-23-10}¹^Texas^{: T}^EX^.P^EN^AL^C^ODE^A^NN^.^§§^34.0^{1 to 34.}⁰³
^Missouri^{: Mo.Ann.Stat. §574.105}^Utah^{: U}^TAH^C^ODE^A^NN^{. §}^§76-10^-190^{1 to 7}^6-10-¹⁹⁰⁸
^Virginia^{: V}^A^.^C^ODE^A^NN^.^§§18.2-^246.^{1 to 18.}^2-24^6.5
^Washington^{: W}^ASH^.R^EV^.C^ODE^A^NN^{. §§9A.83.010 to}
^9A.83.0⁴

^Alabama:^{Ala. Code §§5-22-1 to 5-22-8}^{New Hampshire:}^{N.H. Rev.Sta}^{t.Ann. §§399-G:1 to}³⁹^9-
^Alaska:^{Alaska Stat. §}^§06.55.10¹^{to 06.55.9}⁹⁵^G:22
^Arizona:^{Ariz.Rev.Stat.Ann. §§6-}¹²⁰^{1 to 6-}¹²¹⁹^{New Jersey:}^N.J.Stat^{.Ann. §§17:15C-1 to}^17:1^5C-27
^Arkansas:^{Ark. Code Ann. §§23}^-55-10^{1 to 2}^3-5^5-^{New York:}^{New York Banking}^{Law §§640 to}⁶⁵^2-b
¹⁰⁰⁵^{North Car}^olina:^{N.C.Gen.Stat. §§53-208.1}^{to 20}^8.30
^California:^{Cal. Fin. Code §}^§180^{0 to 18}²⁷^{North Dakota:}^{N.D.Cent.Code}^§§13-09-0^{1 to 1}^3-09-²⁴
^Colora^do:^Colo.Rev.^{Stat.Ann. 12-52-1}⁰¹^{to 12-}^52-^Ohio:^{Ohio Rev.Code Ann. §§1315.0}^{1 to 13}^15.^{18, 1}³¹^{5.51 to}
¹¹⁷¹³¹^5.5⁴
^Florida:^Fla.Stat^{.Ann.§§560.101}^t^o^560.4^08,⁶⁵^5.50^Oklahoma:^{Okla.Stat.Ann. tit. 6 §§1511 to}¹⁵¹⁵
^Idaho:^Ida^{ho Code §§26-290}^{1 to 26-2}⁹²⁸^Oregon:^O^{re.Rev.Stat. §}^§717.20^{0 to 71}^7.90⁵
^Illinois:^Ill^{.Comp.Laws Ann. ch.2}^{05 §§65}^{7/1 to}^Pennsylvania^:Pa.^{Stat.Ann. tit.7}^{§§6101 to}⁶¹¹⁸
^657/¹⁰⁵
^Indiana:^{Ind.Code Ann. §§28-8-}⁴^{-1 to 28-8-}^4-61
^Iowa^{: I}^OWA^C^ODE^A^NN^{. §§533C.201}^{to 53}^3C.90⁴^Tennesse^{: T}^EN^N^.C^ODE^A^NN^{. §§4}^5-7-²⁰^{1 to 4}^5-7-2²⁶
^Kentucky:^K^Y^.R^EV^.S^TAT^.A^NN^.^§§^286.^11.0⁰¹^TO^Texas^{: T}^EX^.F^IN^.C^ODE^A^NN^.^§§151.00^{1 to 15}^1.8⁰¹
^286.^11.0⁶⁷^Vermont^{: V}^T^.S^TA^T^.A^NN^.^tit^{.8 §§}²⁵⁰^{1 to 2}⁵⁵⁵
^Maine^{: M}^E^.R^EV^.S^TAT^.A^NN^.^tit^{. 32}^{§§6101 to}⁶¹⁶²^Virginia^{: V}^A^.^C^ODE^A^NN^{. §§6.1-}³^{70 to 6.}^1-37^8.4
^Maryland^{: Md.Fin.Inst. Code §§1}^2-40^{1 to 1}^2-43¹^Washington^{: W}^ASH^.R^EV^.C^ODE^A^NN^{. §§19.230.00}^{5 to}
^{Massachusetts}^{: M}^ASS^.^G^EN^.L^AW^S^A^NN^{. ch.169 §§1}^19.2^30.9⁰⁵
^{to 16}^{West Virginia}^{: W.V}^A^.C^ODE^A^NN^.^§^{§32A-2-1 to 3}^2A-2-2⁸
^Michigan:^M^ICH^.^C^OMP^.^L^AW^S^§^§^487.¹⁰⁰¹^TO^Wyoming^{: W}^YO^.S^TAT^.^§40-22-1^{01 to 4}^0-2^2-12⁹
^487.¹⁰⁴⁷
^Nevada:^N^EV^.R^EV^.S^TAT^§^§671.01⁰^TO^671.1⁹⁰

(a)(1) 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.
For purposes of this paragraph, a financial transaction shall be considered to be one involving the
proceeds of specified unlawful activity if it is part of a set of parallel or dependent transactions,
any one of which involves the proceeds of specified unlawful activity, and all of which are part of
a single plan or arrangement.
(2) Whoever transports, transmits, or transfers, or attempts to transport, transmit, or transfer a
monetary instrument or funds from a place in the United States to or through a place outside the
United States or to a place in the United States from or through a place outside the United States–
(A) with the intent to promote the carrying on of specified unlawful activity; or
(B) knowing that the monetary instrument or funds involved in the transportation, transmission,
or transfer represent the proceeds of some form of unlawful activity and knowing that such
transportation, transmission, or transfer 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 monetary
instrument or funds involved in the transportation, transmission, or transfer whichever is greater,
or imprisonment for not more than twenty years, or both. For the purpose of the offense described
in subparagraph (B), the defendant's knowledge may be established by proof that a law
enforcement officer represented the matter specified in subparagraph (B) as true, and the

defendant's subsequent statements or actions indicate that the defendant believed such
representations to be true.
(3) Whoever, with the intent–
(A) to promote the carrying on of specified unlawful activity;
(B) to conceal or disguise the nature, location, source, ownership, or control of property believed
to be the proceeds of specified unlawful activity; or
(C) to avoid a transaction reporting requirement under State or Federal law,
conducts or attempts to conduct a financial transaction involving property represented to be the
proceeds of specified unlawful activity, or property used to conduct or facilitate specified
unlawful activity, shall be fined under this title or imprisoned for not more than 20 years, or both.
For purposes of this paragraph and paragraph (2), the term “represented” means any
representation made by a law enforcement officer or by another person at the direction of, or with
the approval of, a Federal official authorized to investigate or prosecute violations of this section.
(b) Penalties.–
(1) In general.– Whoever conducts or attempts to conduct a transaction described in subsection
(a)(1) or (a)(3), or section 1957, or a transportation, transmission, or transfer described in
subsection (a)(2), is liable to the United States for a civil penalty of not more than the greater of–
(A) the value of the property, funds, or monetary instruments involved in the transaction; or
(B) $10,000.
(2) Jurisdiction over foreign persons.– For purposes of adjudicating an action filed or enforcing a
penalty ordered under this section, the district courts shall have jurisdiction over any foreign
person, including any financial institution authorized under the laws of a foreign country, against
whom the action is brought, if service of process upon the foreign person is made under the
Federal Rules of Civil Procedure or the laws of the country in which the foreign person is found,
and–
(A) the foreign person commits an offense under subsection (a) involving a financial transaction
that occurs in whole or in part in the United States;
(B) the foreign person converts, to his or her own use, property in which the United States has an
ownership interest by virtue of the entry of an order of forfeiture by a court of the United States;
or
(C) the foreign person is a financial institution that maintains a bank account at a financial
institution in the United States.
(3) Court authority over assets.– A court may issue a pretrial restraining order or take any other
action necessary to ensure that any bank account or other property held by the defendant in the
United States is available to satisfy a judgment under this section.
(4) Federal receiver.–

(A) In general.– A court may appoint a Federal Receiver, in accordance with subparagraph(B) of
this paragraph, to collect, marshal, and take custody, control, and possession of all assets of the
defendant, wherever located, to satisfy a civil judgment under this subsection, a forfeiture
judgment under section 981 or 982, or a criminal sentence under section 1957 or subsection (a) of
this section, including an order of restitution to any victim of a specified unlawful activity.
(B) Appointment and authority.–A Federal Receiver described in subparagraph (A)–
(i) may be appointed upon application of a Federal prosecutor or a Federal or State regulator, by
the court having jurisdiction over the defendant in the case;
(ii) shall be an officer of the court, and the powers of the Federal Receiver shall include the
powers set out in section 754 of title 28, United States Code; and
(iii) shall have standing equivalent to that of a Federal prosecutor for the purpose of submitting
requests to obtain information regarding the assets of the defendant–
(I) from the Financial Crimes Enforcement Network of the Department of the Treasury; or
(II) from a foreign country pursuant to a mutual legal assistance treaty, multilateral agreement, or
other arrangement for international law enforcement assistance, provided that such requests are in
accordance with the policies and procedures of the Attorney General.
(c) As used in this section–
(1) the term “knowing that the property involved in a financial transaction represents the proceeds
of some form of unlawful activity” means that the person knew the property involved in the
transaction represented proceeds from some form, though not necessarily which form, of activity
that constitutes a felony under State, Federal, or foreign law, regardless of whether or not such
activity is specified in paragraph (7);
(2) the term “conducts” includes initiating, concluding, or participating in initiating, or
concluding a transaction;
(3) the term “transaction” includes a purchase, sale, loan, pledge, gift, transfer, delivery, or other
disposition, and with respect to a financial institution includes a deposit, withdrawal, transfer
between accounts, exchange of currency, loan, extension of credit, purchase or sale of any stock,
bond, certificate of deposit, or other monetary instrument, use of a safe deposit box, or any other
payment, transfer, or delivery by, through, or to a financial institution, by whatever means
effected;
(4) the term “financial transaction” means (A) a transaction which in any way or degree affects
interstate or foreign commerce (i) involving the movement of funds by wire or other means or (ii)
involving one or more monetary instruments, or (iii) involving the transfer of title to any real
property, vehicle, vessel, or aircraft, or (B) a transaction involving the use of a financial
institution which is engaged in, or the activities of which affect, interstate or foreign commerce in
any way or degree;
(5) the term “monetary instruments” means (i) coin or currency of the United States or of any
other country, travelers' checks, personal checks, bank checks, and money orders, or (ii)

investment securities or negotiable instruments, in bearer form or otherwise in such form that title
thereto passes upon delivery;
(6) the term “financial institution” includes–
(A) any financial institution, as defined in section 5312(a)(2) of title 31, United States Code, or
the regulations promulgated thereunder; and
(B) any foreign bank, as defined in section 1 of the International Banking Act of 1978 (12 U.S.C.

3101);

(7) the term “specified unlawful activity” means–
(A) any act or activity constituting an offense listed in section 1961(1) of this title except an act
which is indictable under subchapter II of chapter 53 of title 31;
(B) with respect to a financial transaction occurring in whole or in part in the United States, an
offense against a foreign nation involving–
(i) the manufacture, importation, sale, or distribution of a controlled substance (as such term is
defined for the purposes of the Controlled Substances Act);
(ii) murder, kidnapping, robbery, extortion, destruction of property by means of explosive or fire,
or a crime of violence (as defined in section 16);
(iii) fraud, or any scheme or attempt to defraud, by or against a foreign bank (as defined in
paragraph 7 of section 1(b) of the International Banking Act of 1978));
(iv) bribery of a public official, or the misappropriation, theft, or embezzlement of public funds
by or for the benefit of a public official;
(v) smuggling or export control violations involving–
(I) an item controlled on the United States Munitions List established under section 38 of the
Arms Export Control Act (22 U.S.C. 2778); or
(II) an item controlled under regulations under the Export Administration Regulations (15 C.F.R.
Parts 730-774);
(vi) an offense with respect to which the United States would be obligated by a multilateral treaty,
either to extradite the alleged offender or to submit the case for prosecution, if the offender were
found within the territory of the United States; or
(vii) trafficking in persons, selling or buying children, sexual exploitation of children, or
transporting, recruiting or harboring a person, including a child, for commercial sex acts;
(C) any act or acts constituting a continuing criminal enterprise, as that term is defined in section

408 of the Controlled Substances Act (21 U.S.C. 848);

(D) an offense under section 32 (relating to the destruction of aircraft), section 37 (relating to
violence at international airports), section 115 (relating to influencing, impeding, or retaliating

against a Federal official by threatening or injuring a family member), section 152 (relating to
concealment of assets; false oaths and claims; bribery), section 215 (relating to commissions or
gifts for procuring loans), section 351 (relating to congressional or Cabinet officer assassination),
any of sections 500 through 503 (relating to certain counterfeiting offenses), section 513 (relating
to securities of States and private entities), section 541 (relating to goods falsely classified),
section 542 (relating to entry of goods by means of false statements), section 545 (relating to
smuggling goods into the United States), section 549 (relating to removing goods from Customs
custody), section 544 (relating to smuggling goods from the United States), section 641 (relating
to public money, property, or records), section 656 (relating to theft, embezzlement, or
misapplication by bank officer or employee), section 657 (relating to lending, credit, and
insurance institutions), section 658 (relating to property mortgaged or pledged to farm credit
agencies), section 666 (relating to theft or bribery concerning programs receiving Federal funds),
section 793, 794, or 798 (relating to espionage), section 831 (relating to prohibited transactions
involving nuclear materials), section 844(f) or (i) (relating to destruction by explosives or fire of
Government property or property affecting interstate or foreign commerce), section 875 (relating
to interstate communications), section 922(1) (relating to the unlawful importation of firearms),
section 924(n) (relating to firearms trafficking), section 956 (relating to conspiracy to kill, kidnap,
maim, or injure certain property in a foreign country), section 1005 (relating to fraudulent bank
entries), 1006 (relating to fraudulent Federal credit institution entries), 1007 (relating to
fraudulent Federal Deposit Insurance transactions), 1014 (relating to fraudulent loan or credit
applications), section 1030 (relating to computer fraud and abuse), 1032 (relating to concealment
of assets from conservator, receiver, or liquidating agent of financial institution), section 1111
(relating to murder), section 1114 (relating to murder of United States law enforcement officials),
section 1116 (relating to murder of foreign officials, official guests, or internationally protected
persons), section 1201 (relating to kidnapping), section 1203 (relating to hostage taking), section
1361 (relating to willful injury of Government property), section 1363 (relating to destruction of
property within the special maritime and territorial jurisdiction), section 1708 (theft from the
mail), section 1751 (relating to Presidential assassination), section 2113 or 2114 (relating to bank
and postal robbery and theft), section 2280 (relating to violence against maritime navigation),
section 2281 (relating to violence against maritime fixed platforms), section 2319 (relating to
copyright infringement), section 2320 (relating to trafficking in counterfeit goods and services),
section 2332 (relating to terrorist acts abroad against United States nationals), section 2332a
(relating to use of weapons of mass destruction), section 2332b (relating to international terrorist
acts transcending national boundaries), section 2339A or 2339B (relating to providing material
support to terrorists), section 2339C (relating to financing of terrorism), or section 2339D
(relating to receiving military-type training from a foreign terrorist organization) of this title,
section 46502 of title 49, United States Code, a felony violation of the Chemical Diversion and
Trafficking Act of 1988 (relating to precursor and essential chemicals), section 590 of the Tariff
Act of 1930 (19 U.S.C. 1590) (relating to aviation smuggling), section 422 of the Controlled
Substances Act (relating to transportation of drug paraphernalia), section 38(c) (relating to
criminal violations) of the Arms Export Control Act, section 11 (relating to violations) of the
Export Administration Act of 1979, section 206 (relating to penalties) of the International
Emergency Economic Powers Act, section 16 (relating to offenses and punishment) of the
Trading with the Enemy Act, any felony violation of section 15 of the Food Stamp Act of 1977 [7
U.S.C.A. 2024] (relating to food stamp fraud) involving a quantity of coupons having a value of
not less than $5,000, any violation of section 543(a)(1) of the Housing Act of 1949 [42 U.S.C.
1490s(a)(1)] (relating to equity skimming), any felony violation of the Foreign Agents
Registration Act of 1938, or any felony violation of the Foreign Corrupt Practices Act;

(E) a felony violation of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), the
Ocean Dumping Act (33 U.S.C. 1401 et seq.), the Act to Prevent Pollution from Ships (33 U.S.C.
1901 et seq.), the Safe Drinking Water Act (42 U.S.C. 300f et seq.), or the Resources
Conservation and Recovery Act (42 U.S.C. 6901 et seq.); or
(F) any act or activity constituting an offense involving a Federal health care offense;
(8) the term “State” includes a State of the United States, the District of Columbia, and any
commonwealth, territory, or possession of the United States.
(d) Nothing in this section shall supersede any provision of Federal, State, or other law imposing
criminal penalties or affording civil remedies in addition to those provided for in this section.
(e) Violations of this section may be investigated by such components of the Department of
Justice as the Attorney General may direct, and by such components of the Department of the
Treasury as the Secretary of the Treasury may direct, as appropriate, and, with respect to offenses
over which the Department of Homeland Security has jurisdiction, by such components of the
Department of Homeland Security as the Secretary of Homeland Security may direct, and, with
respect to offenses over which the United States Postal Service has jurisdiction, by the Postal
Service. Such authority of the Secretary of the Treasury, the Secretary of Homeland Security, and
the Postal Service shall be exercised in accordance with an agreement which shall be entered into
by the Secretary of the Treasury, the Secretary of Homeland Security, the Postal Service, and the
Attorney General. Violations of this section involving offenses described in paragraph (c)(7)(E)
may be investigated by such components of the Department of Justice as the Attorney General
may direct, and the National Enforcement Investigations Center of the Environmental Protection
Agency.
(f) There is extraterritorial jurisdiction over the conduct prohibited by this section if–
(1) the conduct is by a United States citizen or, in the case of a non-United States citizen, the
conduct occurs in part in the United States; and
(2) the transaction or series of related transactions involves funds or monetary instruments of a
value exceeding $10,000.
(g) Notice of conviction of financial institutions.–If any financial institution or any officer,
director, or employee of any financial institution has been found guilty of an offense under this
section, section 1957 or 1960 of this title, or section 5322 or 5324 of title 31, the Attorney
General shall
provide written notice of such fact to the appropriate regulatory agency for the financial
institution.
(h) Any person who conspires to commit any offense defined in this section or section 1957 shall
be subject to the same penalties as those prescribed for the offense the commission of which was
the object of the conspiracy.
(i) Venue.–(1) Except as provided in paragraph (2), a prosecution for an offense under this section
or section 1957 may be brought in–
(A) any district in which the financial or monetary transaction is conducted; or

(B) any district where a prosecution for the underlying specified unlawful activity could be
brought, if the defendant participated in the transfer of the proceeds of the specified unlawful
activity from that district to the district where the financial or monetary transaction is conducted.
(2) A prosecution for an attempt or conspiracy offense under this section or section 1957 may be
brought in the district where venue would lie for the completed offense under paragraph (1), or in
any other district where an act in furtherance of the attempt or conspiracy took place.
(3) For purposes of this section, a transfer of funds from 1 place to another, by wire or any other
means, shall constitute a single, continuing transaction. Any person who conducts (as that term is
defined in subsection (c)(2)) any portion of the transaction may be charged in any district in
which the transaction takes place.
(a) Whoever, in any of the circumstances set forth in subsection (d), knowingly engages or
attempts to engage in a monetary transaction in criminally derived property that is of a value
greater than $10,000 and is derived from specified unlawful activity, shall be punished as
provided in subsection (b).
(b)(1) Except as provided in paragraph (2), the punishment for an offense under this section is a
fine under title 18, United States Code, or imprisonment for not more than ten years or both.
(2) The court may impose an alternate fine to that imposable under paragraph (1) of not more
than twice the amount of the criminally derived property involved in the transaction.
(c) In a prosecution for an offense under this section, the Government is not required to prove the
defendant knew that the offense from which the criminally derived property was derived was
specified unlawful activity.
(d) The circumstances referred to in subsection (a) are –
(1) that the offense under this section takes place in the United States or in the special maritime
and territorial jurisdiction of the United States; or
(2) that the offense under this section takes place outside the United States and such special
jurisdiction, but the defendant is a United States person (as defined in section 3077 of this title,
but excluding the class described in paragraph (2)(D) of such section).
(e) Violations of this section may be investigated by such components of the Department of
Justice as the Attorney General may direct, and by such components of the Department of the
Treasury as the Secretary of the Treasury may direct, as appropriate, and, with respect to offenses
over which the Department of Homeland Security has jurisdiction, by such components of the
Department of Homeland Security as the Secretary of Homeland Security may direct, and, with
respect to offenses over which the United States Postal Service has jurisdiction, by the Postal
Service. Such authority of the Secretary of the Treasury, the Secretary of Homeland Security, and
the Postal Service shall be exercised in accordance with an agreement which shall be entered into
by the Secretary of the Treasury, the Secretary of Homeland Security, the Postal Service, and the
Attorney General.

(f) As used in this section–
(1) the term “monetary transaction” means the deposit, withdrawal, transfer, or exchange, in or
affecting interstate or foreign commerce, of funds or a monetary instrument (as defined in section
1956(c)(5) of this title) by, through, or to a financial institution (as defined in section 1956 of this
title), including any transaction that would be a financial transaction under section 1956(c)(4)(B)
of this title, but such term does not include any transaction necessary to preserve a person’s right
to representation as guaranteed by the sixth amendment to the Constitution;
(2) the term “criminally derived property” means any property constituting, or derived from,
proceeds obtained from a criminal offense; and
(3) the term “specified unlawful activity” has the meaning given that term in section 1956 of this
title.
(a) Whoever travels in interstate or foreign commerce or uses the mail or any facility in interstate
or foreign commerce, with intent to–
(1) distribute the proceeds of any unlawful activity; or
(2) commit any crime of violence to further any unlawful activity; or
(3) otherwise promote, manage, establish, carry on, or facilitate the promotion, management,
establishment, or carrying on, of any unlawful activity,
and thereafter performs or attempts to perform–
(A) an act described in paragraph (1) or (3) shall be fined under this title, imprisoned not more
than five years, or both; or
(B) an act described in paragraph (2) shall be fined under this title, imprisoned for not more than

20 years, or both, and if death results shall be imprisoned for any term of years or for life.

(b) As used in this section (i) “unlawful activity” means (1) any business enterprise involving
gambling, liquor on which the Federal excise tax has not been paid, narcotics or controlled
substances (as defined in section 102(6) of the Controlled Substances Act), or prostitution
offenses in violation of the laws of the State in which they are committed or of the United States,
(2) extortion, bribery, or arson in violation of the laws of the State in which committed or of the
United States, or (3) any act which is indictable under subchapter II of chapter 53 of title 31,
United States Code, or under section 1956 or 1957 of this title and (ii) the term “State” includes a
State of the United States, the District of Columbia, and any commonwealth, territory, or
possession of the United States.
(c) Investigations of violations under this section involving liquor shall be conducted under the
supervision of the Attorney General.

(a) A person willfully violating this subchapter or a regulation prescribed or order issued under
this subchapter (except section 5315 or 5324 of this title or a regulation prescribed under section
5315 or 5324), or willfully violating a regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-508, shall be fined not more than
$250,000, or imprisoned for not more than five years, or both.
(b) A person willfully violating this subchapter or a regulation prescribed or order issued under
this subchapter (except section 5315 or 5324 of this title or a regulation prescribed under section
5315 or 5324), or willfully violating a regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-508, while violating another law of the
United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-
month period, shall be fined not more than $500,000, imprisoned for not more than 10 years, or
both.
(c) For a violation of section 5318(a)(2) of this title or a regulation prescribed under section

5318(a)(2), a separate violation occurs for each day the violation continues and at each office,

branch, or place of business at which a violation occurs or continues.
(d) A financial institution or agency that violates any provision of subsection (i) or (j) of section
5318, or any special measures imposed under section 5318A, or any regulation prescribed under
subsection (i) or (j) of section 5318 or section 5318A, shall be fined in an amount equal to not
less than 2 times the amount of the transaction, but not more than $1, 000,000.
(a) Domestic coin and currency transactions involving financial institutions.–No person shall, for
the purpose of evading the reporting requirements of section 5313(a) or 5325 or any regulation
prescribed under any such section, the reporting or recordkeeping requirements imposed by any
order issued under section 5326, or the recordkeeping requirements imposed by any regulation
prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law

91-508–

(1) cause or attempt to cause a domestic financial institution to fail to file a report required under
section 5313(a) or 5325 or any regulation prescribed under any such section, to file a report or to
maintain a record required by an order issued under section 5326, or to maintain a record required
pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance Act or
section 123 of Public Law 91-508;
(2) cause or attempt to cause a domestic financial institution to file a report required under section
5313(a) or 5325 or any regulation prescribed under any such section, to file a report or to
maintain a record required by any order issued under section 5326, or to maintain a record
required pursuant to any regulation prescribed under section 5326, or to maintain a record
required pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508, that contains a material omission or misstatement of
fact; or

(3) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction
with one or more domestic financial institutions.
(b) Domestic coin and currency transactions involving nonfinancial trades or businesses.–No
person shall, for the purpose of evading the report requirements of section 5331 or any regulation
prescribed under such section—
(1) cause or attempt to cause a nonfinancial trade or business to fail to file a report required under
section 5331 or any regulation prescribed under such section;
(2) cause or attempt to cause a nonfinancial trade or business to file a report required under
section 5331 or any regulation prescribed under such section that contains a material omission or
misstatement of fact; or
(3) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction
with 1 or more nonfinancial trades or businesses.
(c) International monetary instrument transactions.–No person shall, for the purpose of evading
the reporting requirements of section 5316 –
(1) fail to file a report required by section 5316, or cause or attempt to cause a person to fail to
file such a report;
(2) file or cause or attempt to cause a person to file a report required under section 5316 that
contains a material omission or misstatement of fact; or
(3) structure or assist in structuring, or attempt to structure or assist in structuring, any
importation or exportation of monetary instruments.
(d) Criminal penalty.–
(1) In general.– Whoever violates this section shall be fined in accordance with title 18, United
States Code, imprisoned for not more than five years, or both.
(2) Enhanced penalty for aggravated cases.– Whoever violates this section while violating
another law of the United States or as part of a pattern of any illegal activity involving more than
$100,000 in a 12-month period shall be fined twice the amount provided in subsection (b)(3) or
(c)(3) (as the case may be) of section 3571 of title 18, United States Code, imprisoned for not
more than 10 years, or both.
(a) Criminal offense.–
(1) In general.–Whoever, with the intent to evade a currency reporting requirement under section
5316, knowingly conceals more than $10,000 in currency or other monetary instruments on the
person of such individual or in any conveyance, article of luggage, merchandise, or other
container, and transports or transfers or attempts to transport or transfer such currency or
monetary instruments from a place within the United States to a place outside of the United

States, or from a place outside the United States to a place within the United States, shall be guilty
of a currency smuggling offense and subject to punishment pursuant to subsection (b).
(2) Concealment on person.–For purposes of this section, the concealment of currency on the
person of any individual includes concealment in any article of clothing worn by the individual or
in any luggage, backpack, or other container worn or carried by such individual.
(b) Penalty.–
(1) Term of imprisonment.–A person convicted of a currency smuggling offense under subsection
(a), or a conspiracy to commit such offense, shall be imprisoned for not more than five years.
(2) Forfeiture.–In addition, the court, in imposing sentence under paragraph (1), shall order that
the defendant forfeit to the United States, any property, real or personal, involved in the offense,
and any property traceable to such property.
(3) Procedure.–The seizure, restraint, and forfeiture of property under this section shall be
governed by section 413 of the Controlled Substances Act.
(4) Personal money judgment.–If the property subject to forfeiture under paragraph (2) is
unavailable, and the defendant has insufficient substitute property that may be forfeited pursuant
to section 413(p) of the Controlled Substances Act, the court shall enter a personal money
judgment against the defendant for the amount that would be subject to forfeiture.
(c) Civil forfeiture.–
(1) In general.–Any property involved in a violation of subsection (a), or a conspiracy to commit
such violation, and any property traceable to such violation or conspiracy, may be seized and
forfeited to the United States.
(2) Procedure.–The seizure and forfeiture shall be governed by the procedures governing civil
forfeitures in money laundering cases pursuant to section 981(a)(1)(A) of title 18, United States
Code.
(3) Treatment of certain property as involved in the offense.–For purposes of this subsection and
subsection (b), any currency or other monetary instrument that is concealed or intended to be
concealed in violation of subsection (a) or a conspiracy to commit such violation, any article,
container, or conveyance used, or intended to be used, to conceal or transport the currency or
other monetary instrument, and any other property used, or intended to be used, to facilitate the
offense, shall be considered property involved in the offense.
(a) Whoever knowingly conducts, controls, manages, supervises, directs, or owns all or part of an
unlicensed money transmitting business, shall be fined in accordance with this title or imprisoned
not more than 5 years, or both.
(b) As used in this section –

(1) the term “unlicensed money transmitting business” means a money transmitting business
which affects interstate or foreign commerce in any manner or degree and –
(A) is operated without an appropriate money transmitting license in a State where such operation
is punishable as a misdemeanor or a felony under State law, whether or not the defendant knew
that the operation was required to be licensed or that the operation was so punishable;
(B) fails to comply with the money transmitting business registration requirements under section
5330 of title 31, United States Code, or regulations prescribed under such section; or
(C) otherwise involves the transportation or transmission of funds that are known to the defendant
to have been derived from a criminal offense or are intended to be used to promote or support
unlawful activity;
(2) the term “money transmitting” includes transferring funds on behalf of the public by any and
all means including but not limited to transfers within this country or to locations abroad by wire,
check, draft, facsimile, or courier; and
(3) the term “State” means any State of the United States, the District of Columbia, the Northern
Mariana Islands, and any commonwealth, territory, or possession of the United States.
(a) It shall be unlawful for any person who has received any income derived, directly or
indirectly, from a pattern of racketeering activity or through collection of an unlawful debt in
which such person has participated as a principal within the meaning of section 2, title 18, United
States Code, to use or invest, directly or indirectly, any part of such income, or the proceeds of
such income, in acquisition of any interest in, or the establishment or operation of, any enterprise
which is engaged in, or the activities of which affect, interstate or foreign commerce. A purchase
of securities on the open market for purposes of investment, and without the intention of
controlling or participating in the control of the issuer, or of assisting another to do so, shall not
be unlawful under this subsection if the securities of the issuer held by the purchaser, the
members of his immediate family, and his or their accomplices in any pattern or racketeering
activity or the collection of an unlawful debt after such purchase do not amount in the aggregate
to one percent of the outstanding securities of any one class, and do not confer, either in law or in
fact, the power to elect one or more directors of the issuer.
(b) It shall be unlawful for any person through a pattern of racketeering activity or through
collection of an unlawful debt to acquire or maintain, directly or indirectly, any interest in or
control of any enterprise which is engaged in, or the activities of which affect, interstate or
foreign commerce.
(c) It shall be unlawful for any person employed by or associated with any enterprise engaged in,
or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly
or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity
or collection of unlawful debt.
(d) It shall be unlawful for any person to conspire to violate any of the provisions of subsection
(a), (b), or (c) of this section.

As used in this chapter–
(1) “racketeering activity” means (A) any act or threat involving murder, kidnapping, gambling,
arson, robbery, bribery, extortion, dealing in obscene matter, or dealing in a controlled substance
or listed chemical (as defined in section 102 of the Controlled Substances Act), which is
chargeable under State law and punishable by imprisonment for more than one year; (B) any act
which is indictable under any of the following provisions of title 18, United States Code: Section
201 (relating to bribery), section 224 (relating to sports bribery), sections 471, 472, and 473
(relating to counterfeiting), section 659 (relating to theft from interstate shipment) if the act
indictable under section 659 is felonious, section 664 (relating to embezzlement from pension and
welfare funds), sections 891-894 (relating to extortionate credit transactions), section 1028
(relating to fraud and related activity in connection with identification documents), section 1029
(relating to fraud and related activity in connection with access devices), section 1084 (relating to
the transmission of gambling information), section 1341 (relating to mail fraud), section 1343
(relating to wire fraud), section 1344 (relating to financial institution fraud), section 1425
(relating to the procurement of citizenship or nationalization unlawfully), section 1426 (relating
to the reproduction of naturalization or citizenship papers), section 1427 (relating to the sale of
naturalization or citizenship papers), sections 1461-1465 (relating to obscene matter), section
1503 (relating to obstruction of justice), section 1510 (relating to obstruction of criminal
investigations), section 1511 (relating to the obstruction of State or local law enforcement),
section 1512 (relating to tampering with a witness, victim, or an informant), section 1513
(relating to retaliating against a witness, victim, or an informant), section 1542 (relating to false
statement in application and use of passport), section 1543 (relating to forgery or false use of
passport), section 1544 (relating to misuse of passport), section 1546 (relating to fraud and misuse
of visas, permits, and other documents), sections 1581-1592 (relating to peonage, slavery, and
trafficking in persons), section 1951 (relating to interference with commerce, robbery, or
extortion), section 1952 (relating to racketeering), section 1953 (relating to interstate
transportation of wagering paraphernalia), section 1954 (relating to unlawful welfare fund
payments), section 1955 (relating to the prohibition of illegal gambling businesses), section 1956
(relating to the laundering of monetary instruments), section 1957 (relating to engaging in
monetary transactions in property derived from specified unlawful activity), section 1958
(relating to use of interstate commerce facilities in the commission of murder-for-hire), section
1960 (relating to illegal money transmitters), sections 2251, 2251A, 2252, and 2260 (relating to
sexual exploitation of children), sections 2312 and 2313 (relating to interstate transportation of
stolen motor vehicles), sections 2314 and 2315 (relating to interstate transportation of stolen
property), section 2318 (relating to trafficking in counterfeit labels for phonorecords, computer
programs or computer program documentation or packaging and copies of motion pictures or
other audiovisual works), section 2319 (relating to criminal infringement of a copyright), section
2319A (relating to unauthorized fixation of and trafficking in sound recordings and music videos
of live musical performances), section 2320 (relating to trafficking in goods or services bearing
counterfeit marks), section 2321 (relating to trafficking in certain motor vehicles or motor vehicle
parts), sections 2341-2346 (relating to trafficking in contraband cigarettes), sections 2421-24
(relating to white slave traffic), (C) any act which is indictable under title 29, United States Code,
section 186 (dealing with restrictions on payments and loans to labor organizations) or section
501(c) (relating to embezzlement from union funds), (D) any offense involving fraud connected
with a case under title 11 (except a case under section 157 of this title), fraud in the sale of
securities, or the felonious manufacture, importation, receiving, concealment, buying, selling, or
otherwise dealing in a controlled substance or listed chemical (as defined in section 102 of the

Controlled Substances Act), punishable under any law of the United States, (E) any act which is
indictable under the Currency and Foreign Transactions Reporting Act, (F) any act which is
indictable under the Immigration and Nationality Act, section 274 (relating to bringing in and
harboring certain aliens), section 277 (relating to aiding or assisting certain aliens to enter the
United States), or section 278 (relating to importation of alien for immoral purpose) if the act
indictable under such section of such Act was committed for the purpose of financial gain, or (G)
any act that is indictable under any provision listed in section 2332b(g)(5)(B) [federal crimes of
terrorism];
(2) “State” means any State of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, any territory or possession of the United States, any political subdivision, or any
department, agency, or instrumentality thereof;
(3) “person” includes any individual or entity capable of holding a legal or beneficial interest in
property;
(4) “enterprise” includes any individual, partnership, corporation, association, or other legal
entity, and any union or group of individuals associated in fact although not a legal entity;
(5) “pattern of racketeering activity” requires at least two acts of racketeering activity, one of
which occurred after the effective date of this chapter and the last of which occurred within ten
years (excluding any period of imprisonment) after the commission of a prior act of racketeering
activity;
(6) “unlawful debt” means a debt (A) incurred or contracted in gambling activity which was in
violation of the law of the United States, a State or political subdivision thereof, or which is
unenforceable under State or Federal law in whole or in part as to principal or interest because of
the laws relating to usury, and (B) which was incurred in connection with the business of
gambling in violation of the law of the United States, a State or political subdivision thereof, or
the business of lending money or a thing of value at a rate usurious under State or Federal law,
where the usurious rate is at least twice the enforceable rate;
(7) “racketeering investigator” means any attorney or investigator so designated by the Attorney
General and charged with the duty of enforcing or carrying into effect this chapter;
(8) “racketeering investigation” means any inquiry conducted by any racketeering investigator for
the purpose of ascertaining whether any person has been involved in any violation of this chapter
or of any final order, judgment, or decree of any court of the United States, duly entered in any
case or proceeding arising under this chapter;
(9) “documentary material” includes any book, paper, document, record, recording, or other
material; and
(10) “Attorney General” includes the Attorney General of the United States, the Deputy Attorney
General of the United States, the Associate Attorney General of the United States, any Assistant
Attorney General of the United States, or any employee of the Department of Justice or any
employee of any department or agency of the United States so designated by the Attorney
General to carry out the powers conferred on the Attorney General by this chapter. Any
department or agency so designated may use in investigations authorized by this chapter either

the investigative provisions of this chapter or the investigative power of such department or
agency otherwise conferred by law.
(a) Whoever violates any provision of section 1962 of this chapter shall be fined under this title or
imprisoned not more than 20 years (or for life if the violation is based on a racketeering activity
for which the maximum penalty includes life imprisonment), or both, and shall forfeit to the
United States, irrespective of any provision of State law –
(1) any interest the person has acquired or maintained in violation of section 1962;
(2) any –
(A) interest in;
(B) security of;
(C) claim against; or
(D) property or contractual right of any kind affording a source of influence over;
any enterprise which the person has established, operated, controlled, conducted, or participated
in the conduct of, in violation of section 1962; and
(3) any property constituting, or derived from, any proceeds which the person obtained, directly
or indirectly, from racketeering activity or unlawful debt collection in violation of section 1962.
The court, in imposing sentence on such person shall order, in addition to any other sentence
imposed pursuant to this section, that the person forfeit to the United States all property described
in this subsection. In lieu of a fine otherwise authorized by this section, a defendant who derives
profits or other proceeds from an offense may be fined not more than twice the gross profits or
other proceeds.
(b) Property subject to criminal forfeiture under this section includes—
(1) real property, including things growing on, affixed to, and found in land; and
(2) tangible and intangible personal property, including rights, privileges, interests, claims, and
securities.
(c) All right, title, and interest in property described in subsection (a) vests in the United States
upon the commission of the act giving rise to forfeiture under this section. Any such property that
is subsequently transferred to a person other than the defendant may be the subject of a special
verdict of forfeiture and thereafter shall be ordered forfeited to the United States, unless the
transferee establishes in a hearing pursuant to subsection (l) that he is a bona fide purchaser for
value of such property who at the time of purchase was reasonably without cause to believe that
the property was subject to forfeiture under this section.

(d)(1) Upon application of the United States, the court may enter a restraining order or injunction,
require the execution of a satisfactory performance bond, or take any other action to preserve the
availability of property described in subsection (a) for forfeiture under this section—
(A) upon the filing of an indictment or information charging a violation of section 1962 of this
chapter and alleging that the property with respect to which the order is sought would, in the
event of conviction, be subject to forfeiture under this section; or
(B) prior to the filing of such an indictment or information, if, after notice to persons appearing to
have an interest in the property and opportunity for a hearing, the court determines that—
(i) there is a substantial probability that the United States will prevail on the issue of forfeiture
and that failure to enter the order will result in the property being destroyed, removed from the
jurisdiction of the court, or otherwise made unavailable for forfeiture; and
(ii) the need to preserve the availability of the property through the entry of the requested order
outweighs the hardship on any party against whom the order is to be entered:
Provided, however, That an order entered pursuant to subparagraph (B) shall be effective for not
more than ninety days, unless extended by the court for good cause shown or unless an
indictment or information described in subparagraph (A) has been filed.
(2) A temporary restraining order under this subsection may be entered upon application of the
United States without notice or opportunity for a hearing when an information or indictment has
not yet been filed with respect to the property, if the United States demonstrates that there is
probable cause to believe that the property with respect to which the order is sought would, in the
event of conviction, be subject to forfeiture under this section and that provision of notice will
jeopardize the availability of the property for forfeiture. Such a temporary order shall expire not
more than ten days after the date on which it is entered, unless extended for good cause shown or
unless the party against whom it is entered consents to an extension for a longer period. A hearing
requested concerning an order entered under this paragraph shall be held at the earliest possible
time, and prior to the expiration of the temporary order.
(3) The court may receive and consider, at a hearing held pursuant to this subsection, evidence
and information that would be inadmissible under the Federal Rules of Evidence.
(e) Upon conviction of a person under this section, the court shall enter a judgment of forfeiture
of the property to the United States and shall also authorize the Attorney General to seize all
property ordered forfeited upon such terms and conditions as the court shall deem proper.
Following the entry of an order declaring the property forfeited, the court may, upon application
of the United States, enter such appropriate restraining orders or injunctions, require the
execution of satisfactory performance bonds, appoint receivers, conservators, appraisers,
accountants, or trustees, or take any other action to protect the interest of the United States in the
property ordered forfeited. Any income accruing to, or derived from, an enterprise or an interest
in an enterprise which has been ordered forfeited under this section may be used to offset
ordinary and necessary expenses to the enterprise which are required by law, or which are
necessary to protect the interests of the United States or third parties.
(f) Following the seizure of property ordered forfeited under this section, the Attorney General
shall direct the disposition of the property by sale or any other commercially feasible means,

making due provision for the rights of any innocent persons. Any property right or interest not
exercisable by, or transferable for value to, the United States shall expire and shall not revert to
the defendant, nor shall the defendant or any person acting in concert with or on behalf of the
defendant be eligible to purchase forfeited property at any sale held by the United States. Upon
application of a person, other than the defendant or a person acting in concert with or on behalf of
the defendant, the court may restrain or stay the sale or disposition of the property pending the
conclusion of any appeal of the criminal case giving rise to the forfeiture, if the applicant
demonstrates that proceeding with the sale or disposition of the property will result in irreparable
injury, harm or loss to him. Notwithstanding 31 U.S.C. 3302(b), the proceeds of any sale or other
disposition of property forfeited under this section and any moneys forfeited shall be used to pay
all proper expenses for the forfeiture and the sale, including expenses of seizure, maintenance and
custody of the property pending its disposition, advertising and court costs. The Attorney General
shall deposit in the Treasury any amounts of such proceeds or moneys remaining after the
payment of such expenses.
(g) With respect to property ordered forfeited under this section, the Attorney General is
authorized to—
(1) grant petitions for mitigation or remission of forfeiture, restore forfeited property to victims of
a violation of this chapter, or take any other action to protect the rights of innocent persons which
is in the interest of justice and which is not inconsistent with the provisions of this chapter;
(2) compromise claims arising under this section;
(3) award compensation to persons providing information resulting in a forfeiture under this
section;
(4) direct the disposition by the United States of all property ordered forfeited under this section
by public sale or any other commercially feasible means, making due provision for the rights of
innocent persons; and
(5) take appropriate measures necessary to safeguard and maintain property ordered forfeited
under this section pending its disposition.
(h) The Attorney General may promulgate regulations with respect to—
(1) making reasonable efforts to provide notice to persons who may have an interest in property
ordered forfeited under this section;
(2) granting petitions for remission or mitigation of forfeiture;
(3) the restitution of property to victims of an offense petitioning for remission or mitigation of
forfeiture under this chapter;
(4) the disposition by the United States of forfeited property by public sale or other commercially
feasible means;
(5) the maintenance and safekeeping of any property forfeited under this section pending its
disposition; and
(6) the compromise of claims arising under this chapter.

Pending the promulgation of such regulations, all provisions of law relating to the disposition of
property, or the proceeds from the sale thereof, or the remission or mitigation of forfeitures for
violation of the customs laws, and the compromise of claims and the award of compensation to
informers in respect of such forfeitures shall apply to forfeitures incurred, or alleged to have been
incurred, under the provisions of this section, insofar as applicable and not inconsistent with the
provisions hereof. Such duties as are imposed upon the Customs Service or any person with
respect to the disposition of property under the customs law shall be performed under this chapter
by the Attorney General.
(i) Except as provided in subsection (l), no party claiming an interest in property subject to
forfeiture under this section may–
(1) intervene in a trial or appeal of a criminal case involving the forfeiture of such property under
this section; or
(2) commence an action at law or equity against the United States concerning the validity of his
alleged interest in the property subsequent to the filing of an indictment or information alleging
that the property is subject to forfeiture under this section.
(j) The district courts of the United States shall have jurisdiction to enter orders as provided in
this section without regard to the location of any property which may be subject to forfeiture
under this section or which has been ordered forfeited under this section.
(k) In order to facilitate the identification or location of property declared forfeited and to
facilitate the disposition of petitions for remission or mitigation of forfeiture, after the entry of an
order declaring property forfeited to the United States the court may, upon application of the
United States, order that the testimony of any witness relating to the property forfeited be taken
by deposition and that any designated book, paper, document, record, recording, or other material
not privileged be produced at the same time and place, in the same manner as provided for the
taking of depositions under Rule 15 of the Federal Rules of Criminal Procedure.
(l)(1) Following the entry of an order of forfeiture under this section, the United States shall
publish notice of the order and of its intent to dispose of the property in such manner as the
Attorney General may direct. The Government may also, to the extent practicable, provide direct
written notice to any person known to have alleged an interest in the property that is the subject of
the order of forfeiture as a substitute for published notice as to those persons so notified.
(2) Any person, other than the defendant, asserting a legal interest in property which has been
ordered forfeited to the United States pursuant to this section may, within thirty days of the final
publication of notice or his receipt of notice under paragraph (1), whichever is earlier, petition the
court for a hearing to adjudicate the validity of his alleged interest in the property. The hearing
shall be held before the court alone, without a jury.
(3) The petition shall be signed by the petitioner under penalty of perjury and shall set forth the
nature and extent of the petitioner's right, title, or interest in the property, the time and
circumstances of the petitioner's acquisition of the right, title, or interest in the property, any
additional facts supporting the petitioner's claim, and the relief sought.
(4) The hearing on the petition shall, to the extent practicable and consistent with the interests of
justice, be held within thirty days of the filing of the petition. The court may consolidate the

hearing on the petition with a hearing on any other petition filed by a person other than the
defendant under this subsection.
(5) At the hearing, the petitioner may testify and present evidence and witnesses on his own
behalf, and cross-examine witnesses who appear at the hearing. The United States may present
evidence and witnesses in rebuttal and in defense of its claim to the property and cross-examine
witnesses who appear at the hearing. In addition to testimony and evidence presented at the
hearing, the court shall consider the relevant portions of the record of the criminal case which
resulted in the order of forfeiture.
(6) If, after the hearing, the court determines that the petitioner has established by a
preponderance of the evidence that –
(A) the petitioner has a legal right, title, or interest in the property, and such right, title, or interest
renders the order of forfeiture invalid in whole or in part because the right, title, or interest was
vested in the petitioner rather than the defendant or was superior to any right, title, or interest of
the defendant at the time of the commission of the acts which gave rise to the forfeiture of the
property under this section; or
(B) the petitioner is a bona fide purchaser for value of the right, title, or interest in the property
and was at the time of purchase reasonably without cause to believe that the property was subject
to forfeiture under this section;
the court shall amend the order of forfeiture in accordance with its determination.
(7) Following the court's disposition of all petitions filed under this subsection, or if no such
petitions are filed following the expiration of the period provided in paragraph (2) for the filing of
such petitions, the United States shall have clear title to property that is the subject of the order of
forfeiture and may warrant good title to any subsequent purchaser or transferee.
(m) If any of the property described in subsection (a), as a result of any act or omission of the
defendant—
(1) cannot be located upon the exercise of due diligence;
(2) has been transferred or sold to, or deposited with, a third party;
(3) has been placed beyond the jurisdiction of the court;
(4) has been substantially diminished in value; or
(5) has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the defendant up to the value of any
property described in paragraphs (1) through (5).
(a) The district courts of the United States shall have jurisdiction to prevent and restrain violations
of section 1962 of this chapter by issuing appropriate orders, including, but not limited to:

ordering any person to divest himself of any interest, direct or indirect, in any enterprise;
imposing reasonable restrictions on the future activities or investments of any person, including,
but not limited to, prohibiting any person from engaging in the same type of endeavor as the
enterprise engaged in, the activities of which affect interstate or foreign commerce; or ordering
dissolution or reorganization of any enterprise, making due provision for the rights of innocent
persons.
(b) The Attorney General may institute proceedings under this section. Pending final
determination thereof, the court may at any time enter such restraining orders or prohibitions, or
take such other actions, including the acceptance of satisfactory performance bonds, as it shall
deem proper.
(c) Any person injured in his business or property by reason of a violation of section 1962 of this
chapter may sue therefore in any appropriate United States district court and shall recover
threefold the damages he sustains and the cost of the suit, including a reasonable attorney's fee,
except that no person may rely upon any conduct that would have been actionable as fraud in the
purchase or sale of securities to establish a violation of section 1962. The exception contained in
the preceding sentence does not apply to an action against any person that is criminally convicted
in connection with the fraud, in which case the statute of limitations shall start to run on the date
on which the conviction becomes final.
(d) A final judgment or decree rendered in favor of the United States in any criminal proceeding
brought by the United States under this chapter shall stop the defendant from denying the
essential allegations of the criminal offense in any subsequent civil proceeding brought by the
United States.

CRS Report RS22896, United States v. Santos: “Proceeds” in Federal Criminal Money
Laundering Statute, 18 U.S.C. Section 1956, Means “Profits,” Not “Gross Receipts”, by M.
Maureen Murphy.
CRS Report 97-139, Crime and Forfeiture, by Charles Doyle.
CRS Report RS22005, Crime and Forfeiture: In Short, by Charles Doyle.
CRS Report 96-950, RICO: A Brief Sketch, by Charles Doyle.
CRS Report RS20376, RICO: An Abridged Sketch, by Charles Doyle.
CRS Report RL33020, Terrorist Financing: U.S. Agency Efforts and Inter-Agency Coordination,
by Martin A. Weiss et al.
CRS Report RS21547, Financial Institution Customer Identification Programs Mandated by the
USA PATRIOT Act, by M. Maureen Murphy.

Construction and Application of United States Sentencing Guideline §2S1.1 (USSG §2S1/1)
Pertaining to Sentencing for Money Laundering, 130 ALRF^ED 323
Criminalization, Validity, Construction, and Application of 18 USC §1956, Which Criminalizes
Money Laundering, 121 ALRF^ED525
What Is Considered Property “Involved in” Money Laundering Offense, and Thus Subject to
Civil or Criminal Forfeiture, for Purposes of Money Laundering Control Act (18 USCA
§981((a)(1)(A) and 982(a)(1)), 135 ALRF^ED 367
When Does Forfeiture of Currency, Bank Account, Cash Equivalent Violate Excessive Fines
Clause of Eight Amendment, 164 ALRF^ED 591
When Does Forfeiture of Real Property Violate Excessive Fines Clause of Eight Amendment –
Post Austin Cases, 168 ALRF^ED 375
Venue for Currency Reporting Offense Under Currency and Foreign Transactions Report Act
(CFTRA)(31 USCA §5311 et seq.), 113ALRF^ED 639
Airing the Dirty Laundry: The Application of the United States Sentencing Guidelines to White
Collar Money Laundering Offenses, 49 A^MERICA^NU^NI^VE^R^S^I^T^YL^AWR^EV^IEW 289 (1999-2000)
Cassella, The Forfeiture of Property Involved in Money Laundering Offenses, 7 B^UF^F^A^L^O
C^RIM^I^NALL^AWR^EV^IEW 583 (2003-2004)
The Obstacles to Regulating the Hawala: A Cultural Norm or a Terrorist Hotbed?, 27 F^ORDHA^M
I^NT^E^R^N^A^T^I^ONA^LL^AWJ^OURNAL 2007 (2004)
Tacking on Money Laundering Charges to White Collar Crimes: What Did Congress Intend, and
What Are the Courts Doing, 17 G^EORG^I^AS^TA^T^EU^NIV^E^RS^IT^YL^AWR^EV^IEW 531 (2000-2001)
Twentieth-Third Survey of White Collar Crime: Money Laundering, 42 A^MERICA^NC^RIM^I^NAL
L^AWR^EV^IEW 741 (2008)
Twentieth-Third Survey of White Collar Crime: Racketeer Influenced and Corrupt Organizations,

42 A^MERICA^NC^RIMIN^A^LL^AWR^EV^IEW 871 (2008)

United States Money Laundering Threat Assessment Working Group, U.S.M^ON^EYL^AU^N^D^E^R^I^N^G
T^HREA^TA^SSESSM^EN^T (December 2005)
Welling, Smurfs, Money Laundering, and the Federal Criminal Law: The Crime of Structuring
Transactions, 41 F^LO^R^I^D^AL^AWR^EV^IEW 287 (1989)
Williams & Whitney, F^EDE^R^ALM^ONEYL^A^UNDERIN^G:C^RIM^E^S^A^NDF^ORF^E^IT^URE (1999 & 2004
Supp.)

^C^h^arle^s^Do^y^l^e
^Senⁱ^o^r^Sp^{ecialist i}ⁿ^Am^er^icaⁿ^P^u^b^{lic L}^a^w
^cdoy^l^e^@^c^rs^.l^oc.g^o^v^{, 7-}⁶⁹⁶⁸
^T^o^{dd G}^a^rv^ey