The act of moving money around into a specific business in order to conceal the actual source of your money is called money laundering. In most cases, money laundering is done to hide money because it is generated through illegal means. Once the money is laundered, it is used freely without worrying about the government and IRS investigating you for fraud. Money laundering is a very serious offense, and the U.S. government takes it very seriously. The punishment for a defendant found guilty of money laundering is severe and could change your life forever.
Money laundering may be defined in more than one way, and it depends on the amount of money that has been laundered. Those who launder small amounts of money often channel it towards other bank accounts making sure they are accepted by the banks. However, it is impossible to use this method to launder large amounts of money. For that, large offshore shell companies are created, and profits are generated by using false receipts. Once the money is generated, it is transferred back to different checking accounts.
The IRS and other law enforcement agencies often follow the money trail in order to figure out where the illegal money is coming from. They look for loopholes in the trail, which could lead them to the source of the money. The government has passed several laws to make money laundering a federal crime. Money made through certain criminal activities cannot be used in any financial transactions.
If you have been accused of money laundering, it is important to discuss your case with an experienced defense attorney. The attorney will assess your case and try to prove that you were innocent.