Could the New FinCEN Regulations Trigger Illinois Money Laundering Charges?

 Posted on July 12, 2024 in Financial Crimes

The Financial Crimes Enforcement Network (FinCEN) issued a rule titled Anti-Money Laundering Regulations for Residential Real Estate Transfers in February 2024. Shortly after, the Illinois Attorney General joined 24 other state attorneys general to file a letter in support of the FinCEN proposed regulations. The initiative is meant to limit the ability of bad actors to use residential real estate transactions to "launder" ill-gotten money.  Under the new law, those who handle real estate closings and settlements must keep records and submit reports of cash transactions. Criminal defense attorneys have some concerns about the new requirements, which include: 

• Federal, state, and local law enforcement would be granted more access regarding any "suspicious" real estate transactions.

• Businesses—including attorneys—who perform real estate closings or settlements for non-financed sales would be required to collect and report information to FinCEN.

• The initiative would aid law enforcement in identifying suspicious real estate transactions.

On the surface, these proposed laws regarding real estate transactions sound relatively innocuous. Those who pay cash for real estate transactions—with absolutely no nefarious purpose—could be targeted by law enforcement and even charged with money laundering.

If you think you are being targeted by federal or state law enforcement because you made a cash real estate purchase, you need immediate legal assistance from a Rolling Meadows criminal defense attorney. Perhaps you are entirely innocent of the money laundering charges, or perhaps you could potentially have some exposure related to the charges. Either way, a skilled Cook County lawyer can ensure you get the best defense possible.  

What Is Money Laundering?

Illinois laws regarding money laundering are found in Section 29B-1. Money laundering involves disguising financial assets so that the illegal activity produced is undetectable. For example, a drug dealer who brings in large amounts of cash may buy a restaurant to run the cash through so it appears "legitimate." In the state of Illinois, money laundering is always a felony offense.

Penalties can include significant fines up to $25,000 and prison sentences between two and 15 years. More severe punishment is given for greater amounts of money. The government can also seize your property in forfeiture to "make up" for the amount of cash they estimate is laundered. Since money laundering often involves complex financial maneuvers, it can be difficult to link a person or organization to the underlying crime. Prosecutors often rely on circumstantial evidence like regular deposits or transfers of large amounts of cash.

What Are Some Defenses for Money Laundering Charges?

If you are facing money laundering charges, your specific defense will depend on the facts and circumstances surrounding your charges. Some of the more common defenses to charges of money laundering include:

• There was nothing illegal about the source of the funds

• The defendant has no knowledge that the money came from illegal activities

• The money was not concealed because it was legally earned

The government usually employs a forensic accountant to attempt to show a specific amount of money was laundered. This often includes many assumptions rather than facts. Your attorney will work to show that these assumptions are flawed and that the government has no real facts or evidence.

Contact a DuPage County, IL Criminal Defense Attorney for a Free Consultation

Whether you are charged with money laundering under the new FinCEN laws, or because the government believes your source of cash is suspect for another reason, the penalties for this crime are severe. You need a Wheaton, IL criminal defense attorney with a significant level of experience in this type of crime. A knowledgeable criminal defense attorney knows exactly how to find the flaws in the prosecution’s case.

Since money laundering contains many assumptions on the part of the prosecution, you need an attorney who understands the best way to disprove these assumptions. An attorney from Komie and Associates has successfully defended those charged with money laundering and other criminal offenses for more than four decades. With experience in state, federal, and international trials, you will receive the defense you deserve when you call Komie and Associates at 312-263-2800.