Every year, billions of dollars flow through Texas’s economy, making it an attractive target for sophisticated financial crimes. When law enforcement suspects that money from criminal activities is being concealed or transferred through legitimate-looking transactions, they may charge individuals with money laundering – a serious offense that can result in years of imprisonment and substantial fines.

In this article, you’ll learn about Texas’s money laundering laws, including how they’re defined in the state penal code and what activities constitute money laundering.

How Texas Law Defines Money Laundering

Basically, money laundering occurs when someone handles funds that they know are related to criminal activities. Chapter 34 of the Texas Penal Code states that a person commits money laundering when they knowingly:

• Acquire, maintain, conceal, possess, transfer, or transport proceeds of criminal activity
• Conduct, supervise, or facilitate transactions involving proceeds of criminal activity
• Invest, expend, or receive (or offer to do so) proceeds of criminal activity or funds believed to be proceeds of criminal activity
• Finance or invest (or intend to do so) funds believed to further criminal activity

Importantly, the law specifies that prosecutors don’t need to prove knowledge of the specific criminal activity that generated the proceeds. Additionally, if a law enforcement officer represents that funds are criminal proceeds, a person is presumed to believe this, regardless of whether they know the individual is an officer.

What Constitutes Money Laundering in Texas?

Money laundering charges can arise from various financial activities that involve proceeds from criminal conduct. The Texas Penal Code outlines several specific behaviors that constitute money laundering when performed knowingly.

Handling Criminal Proceeds

A person commits money laundering if they acquire, maintain interest in, conceal, possess, transfer, or transport proceeds from criminal activity. This can include something as simple as holding money for someone else, knowing it came from illegal activities.

Transaction-Related Activities

The law also prohibits conducting, supervising, or facilitating transactions involving criminal proceeds. This might involve helping to move money between accounts or converting it into different forms of currency.

Investment and Receipt of Proceeds

Investing or receiving proceeds from criminal activity falls under money laundering laws. Importantly, even offering to invest or receive such proceeds can constitute a violation, regardless of whether the transaction is completed.

Financing Criminal Activity

Using funds to further criminal activity, or intending to do so, also qualifies as money laundering under Texas law. This applies even if a person only believes the funds are intended for criminal purposes.

Criminal Penalties for Money Laundering

Money laundering charges in Texas carry serious consequences, with penalties that increase based on the amount of money involved. The state legislature has established a tiered system of felony classifications to ensure that punishments are proportional to the scale of the illegal activity.

• State Jail Felony: Applies to cases involving $2,500 to $30,000, punishable by 180 days to 2 years in state jail and a fine of up to $10,000
• Third-Degree Felony: Cases involving $30,000 to $150,000 can result in 2 to 10 years in prison and a fine of up to $10,000
• Second-Degree Felony: When the amount is $150,000 to $300,000, penalties increase to 2 to 20 years in prison and a fine of up to $10,000
• First-Degree Felony: The most serious category, involving amounts of $300,000 or more, carries 5 to 99 years in prison and a fine of up to $10,000

Financial Institution Protections

The Texas Penal Code includes specific provisions to protect financial institutions that may unknowingly handle proceeds of criminal activity. Banks and their agents are shielded from civil liability when they act in good faith, even if they later discover they handled funds involved in criminal activity.

This protection extends to transactions with both account holders and insurers, ensuring that financial institutions can operate without fear of legal repercussions for inadvertently processing suspicious transactions.

Contact Norris Legal Group for Conspiracy Defense

If you’re facing conspiracy charges in Tarrant County, working with experienced Fort Worth federal crimes attorney can be crucial for protecting your rights and achieving the best possible outcome. The criminal defense team at Norris Legal Group has extensive experience handling conspiracy cases and stays current with Texas law.

Contact Norris Legal Group today for a free consultation to discuss your case and explore your legal options. Our attorneys will evaluate your situation and help you understand the best path forward under Texas law.