By Graham Norris

A single wire transfer can transform someone from a business owner into a felony defendant facing decades in prison. Under Texas law, money laundering charges don’t require elaborate schemes or criminal masterminds—they can emerge from financial decisions that seemed perfectly reasonable at the time. Whether you’re handling transactions for a legitimate business or managing personal finances, knowing how Texas defines and prosecutes money laundering could mean the difference between freedom and a first-degree felony conviction.

Texas takes an aggressive approach to money laundering prosecution, casting a wider net than many people realize. The state’s laws under Penal Code Chapter 34 criminalize a broad range of financial activities, and prosecutors don’t need to prove you knew about any underlying criminal activity to secure a conviction.

What Constitutes Money Laundering Under Texas Law

Texas law defines money laundering more broadly than most people expect, focusing on your actions with funds rather than your knowledge of their criminal origins. Under Penal Code Chapter 34, you can face charges even if you had no idea the money came from illegal activity. The law recognizes that financial crimes often involve multiple layers of transactions, and it aims to capture anyone who plays a role in moving or concealing criminal proceeds.

The state criminalizes six main categories of conduct:

• Acquiring or maintaining an interest in criminal proceeds – Simply holding or having ownership in money from criminal activity
• Concealing or possessing proceeds from criminal activity – Hiding or keeping criminal funds, even temporarily
• Transferring or transporting illegal funds – Moving money through any means, including electronic transfers
• Conducting or facilitating transactions involving criminal proceeds – Helping process or complete financial transactions
• Investing or receiving funds from criminal activity – Using criminal money for investments or accepting it as payment
• Financing operations you believe are connected to criminal activity – Funding activities you suspect may be illegal

The law creates a presumption that you believe funds are criminal proceeds if a peace officer tells you they are, regardless of whether the officer identifies themselves as law enforcement. This means undercover operations can easily establish the mental state required for prosecution. Texas prosecutors can also aggregate multiple related transactions to reach higher penalty thresholds, turning several smaller financial moves into a major felony case.

Common Scenarios That Lead to Money Laundering Charges in Texas

Money laundering charges often emerge from situations where people believe they’re conducting normal business or personal transactions. Texas prosecutors cast a wide net, and seemingly innocent financial activities can trigger investigations that spiral into serious felony cases.

Business Operations Gone Wrong

Cash-intensive businesses face particular scrutiny under Texas money laundering laws. Restaurant owners, retail operators, and service providers who make frequent cash deposits may find themselves accused of “structuring” transactions to avoid reporting requirements. Even legitimate business practices like separating personal and business expenses can appear suspicious to investigators if funds flow between accounts in ways that seem designed to obscure their origins. Businesses that accept payments from clients without thoroughly vetting the source of funds may unknowingly process criminal proceeds.

Real Estate and Investment Activities

Property transactions frequently trigger money laundering investigations, especially when buyers use cash, involve multiple entities, or purchase properties significantly above or below market value. Real estate professionals, title companies, and investors can face charges for facilitating transactions where the funding sources weren’t properly documented or verified. Investment activities that involve moving large sums between accounts, particularly international transfers, often attract law enforcement attention even when conducted for legitimate tax planning or asset protection purposes.

According to the Texas Observer, from 2015 to 2020 alone, more than $2.3 billion was laundered through U.S. real estate by corrupt officials and criminal organizations, with Texas serving as a significant haven for money laundering activities.

Professional Services and Third-Party Assistance

Lawyers, accountants, financial advisors, and business consultants regularly handle client funds in ways that can trigger money laundering charges. Professionals who accept large cash payments, help clients establish complex business structures, or facilitate transactions without adequate due diligence may find themselves charged alongside their clients. Even family members and friends who help with financial transactions—such as making deposits, wire transfers, or purchases on someone else’s behalf—can face prosecution if those funds later prove to have criminal origins.

Penalties and Sentencing Guidelines for Money Laundering in Texas

Texas structures money laundering penalties based on the total value of funds involved, with prosecutors able to combine all related transactions to reach the highest possible charges. The law treats connected financial activities as a single scheme, meaning that multiple smaller transactions can quickly add up to serious felony territory.

State Jail Felony ($2,500 – $30,000)

At the lowest level, money laundering involving $2,500 to $30,000 qualifies as a state jail felony. This carries a potential sentence of six months to two years in state jail and fines up to $10,000. While this might seem like the “minor” end of money laundering charges, a felony conviction creates lasting consequences for employment, professional licenses, and personal reputation.

Third-Degree Felony ($30,000 – $150,000)

When the amount reaches $30,000 to $150,000, charges escalate to a third-degree felony. This level carries two to 10 years in prison and fines up to $10,000. At this stage, the financial and personal stakes become life-altering, particularly for professionals whose careers depend on maintaining clean criminal records.

Second-Degree Felony ($150,000 – $300,000)

Money laundering involving $150,000 to $300,000 becomes a second-degree felony, punishable by two to 20 years in prison and fines up to $10,000. These cases often involve complex financial arrangements and typically result in aggressive prosecution by both state and federal authorities.

First-Degree Felony ($300,000+)

The most serious money laundering charges apply when $300,000 or more is involved. First-degree felony convictions carry five to 99 years or life in prison, plus fines up to $10,000. These cases represent the state’s most aggressive prosecutions and often involve extensive investigations by multiple law enforcement agencies.

Recent Texas cases demonstrate the severity of these prosecutions. In 2025, federal authorities charged 29 individuals in Houston-area money laundering operations, with potential penalties including up to 20 years in federal prison for money laundering offenses alone.

Transaction Aggregation

Texas law allows prosecutors to combine all related financial activities into a single case, dramatically increasing potential penalties. A series of $10,000 transactions that might individually seem minor can be aggregated into a first-degree felony case worth hundreds of thousands of dollars. This aggregation rule means that patterns of financial behavior over time can result in far more serious charges than any single transaction would warrant.

Defenses and Legal Strategies for Money Laundering Charges

Money laundering prosecutions often hinge on proving that defendants knew or believed funds came from criminal activity, creating opportunities for experienced defense attorneys to challenge the state’s case. The complexity of financial transactions and the subjective nature of knowledge and intent provide multiple avenues for defense.

Texas law provides specific statutory defenses that can completely defeat money laundering charges. The law protects actions taken to facilitate lawful seizure, forfeiture, or other legitimate law enforcement purposes. This defense recognizes that sometimes cooperating with authorities requires handling funds that might otherwise appear suspicious.

Licensed attorneys receive special protection under Texas law for bona fide legal fees, provided they didn’t have actual knowledge that the funds came from criminal activity. This defense acknowledges the importance of the attorney-client relationship and protects lawyers who accept payment without investigating their clients’ financial sources.

Challenging the connection between funds and criminal activity often forms the cornerstone of money laundering defense. Prosecutors must prove not only that money came from illegal sources, but also that defendants knew or believed this to be true. Legitimate business transactions, inherited funds, loans, and other lawful financial activities can appear suspicious without proper context and explanation.

Early intervention by experienced defense counsel becomes critical given the severe penalties involved. Money laundering investigations often span months or years, involving extensive financial record analysis and complex legal theories. The aggregation of transactions means that seemingly minor financial decisions can evolve into major felony cases without proper legal guidance.

Protect Your Future from Money Laundering Charges

Money laundering charges don’t just threaten your freedom—they can destroy your reputation, career, and financial stability for decades to come. The complexity of Texas financial crime laws means that even well-intentioned business decisions can be twisted into serious felony charges, especially when prosecutors aggregate multiple transactions to maximize penalties.

Norris Legal Group brings over 3,600 cases of experience to your defense, with a proven track record of more than 400 dismissals and 60 client no-bills. Founded on the principles of Dignity, Trust, and Fight, the firm combines prosecutorial insight with philosophical depth to craft compelling defenses that resonate with judges and juries. Don’t let money laundering charges define your future—contact Norris Legal Group today for a confidential consultation and take the first step toward reclaiming control of your life.