Money Laundering and Arizona Law: Understanding ARS 13-2317 and Criminal Defense Options

Money laundering is the practice of “cleaning” illicit funds by making it appear as if they have come from legitimate sources. It often involves moving money through multiple financial institutions, transferring it across various accounts, or using it in a series of transactions to obscure its illegal origin.

The process may involve a financial institution or money transmitter, such as a bank or credit union, where money can be deposited, transferred, or withdrawn in ways that make it hard for authorities to trace.

Common Money Laundering Methods

1. Structuring: Breaking down large amounts of money into smaller deposits to avoid triggering transaction reports.
2. Layering: Conducting multiple transactions across different accounts and institutions.
3. Integration: Reintroducing the “cleaned” money into the economy, where it can appear legitimate.

Arizona takes money laundering seriously and has a specific statute, ARS 13-2317, which defines and prohibits money laundering activities.

According to this statute, a person can be charged with money laundering if they intentionally or knowingly conduct a transaction with the intent to conceal or disguise the nature of racketeering proceeds or if they fail to comply with specific reporting requirements under Title 6, Chapter 12 of the Arizona statutes.

Additionally, Arizona law criminalizes the actions of any employee of a money transmitter or financial institution who knowingly or intentionally engages in transactions that facilitate the transfer of illegal funds.

Under ARS 13-2317, money laundering is classified into three degrees, each with distinct requirements and potential penalties. These degrees are designed to capture varying levels of involvement and intent in money laundering activities.

First-degree money laundering is considered the most severe and carries significant penalties. According to ARS 13-2317, an individual may be found guilty of first-degree money laundering if they intentionally or knowingly engage in any transaction with the intent to conceal or disguise the nature of funds obtained from racketeering activities, such as terrorism or murder.

For a charge of first-degree money laundering, the prosecution must prove that the accused knowingly facilitated the transaction with the goal of obscuring the origins of illegally obtained funds.

In Arizona, first-degree money laundering is classified as a Class 2 felony, which is punishable by years in prison, steep fines, and other penalties, depending on the value of the transaction and the individual’s criminal history.

Individuals charged under this degree often face serious consequences, as the law views this level of money laundering as particularly harmful to the public.

Second-degree money laundering applies when an individual engages in transactions that facilitate the transfer of illegally-obtained money between multiple points without direct involvement in the original criminal activity.

Second-degree money laundering often includes cases where someone acts as an intermediary, assisting in the transfer or transmitting money through financial institutions to aid in hiding the illicit origins of funds.

According to ARS 13-2317, second-degree money laundering is a Class 3 felony, which, while still severe, typically carries a lower penalty than first-degree charges.

However, those charged with second-degree money laundering may still face prison time, fines, and other penalties if convicted.

In some cases, the penalties can escalate based on the amount involved, particularly if it exceeds a certain threshold.

Defending against money laundering charges requires an experienced criminal defense attorney familiar with Arizona’s money laundering statutes, especially ARS 13-2317. Here are some possible defense strategies:

1. Lack of Intent: Arizona law requires that money laundering be done intentionally or knowingly. If the defense can establish that the accused did not know the funds were illegally obtained, they may have grounds for a dismissal or reduction in charges.

2. Entrapment: In some cases, law enforcement or informants may induce an individual to participate in money laundering. Entrapment occurs when a person is pressured into committing a crime they otherwise would not have engaged in, potentially leading to dismissal.

3. Insufficient Evidence: Money laundering cases rely heavily on financial records and transactions. A lack of concrete evidence linking the accused directly to the crime can be a valid defense, as the burden of proof lies with the prosecution.

4. Mistaken Identity: Financial transactions often involve multiple people and accounts. It’s possible that a person may be wrongfully accused due to misidentification or confusion in tracking the flow of funds.

5. Failure to Prove Racketeering Proceeds: A significant aspect of ARS 13-2317 is proving that the funds were derived from racketeering activities. If the prosecution cannot clearly link the funds to illegal activities, the defense may seek to have the charges reduced or dismissed.

At Guardian Law, led by Attorney Christian Lueders, we take pride in providing a solid defense for individuals accused of serious crimes, including sex crimes. Christian’s extensive experience as a former prosecutor gives him unique insight into how the state will build its case, allowing him to craft a well-rounded defense strategy.

We understand the severe and complex offense these charges represent under Arizona law and will work tirelessly to defend your case. If you or a loved one is facing criminal charges in Arizona, contact us immediately to discuss your defense options.