Money Transmitting: An Increase in Prosecutions and Seizures of Funds
Federal and state authorities have a diverse arsenal of criminal statutes at their disposal to indict financial operations and seize assets via forfeiture proceedings if they prove wrongdoing. But proof of criminal activity in such cases almost always involves a precise assessment of financial records and sequences of events. Such is the case with 18 U.S.C. § 1960(a), which makes it a crime to knowingly conduct, control, manage, supervise, direct or own all or part of a money transmitting business without a proper license. And such is the case with Florida Statute § 560.125, which makes it a crime to engage in a money services business without a license.
Transmission of funds is particularly popular within immigrant communities, as individuals who work hard in the U.S. need a convenient means to send money home to family members. Likewise, businesses with foreign suppliers need a dependable way to responsibly remit payments. Many businesses provide such services in the heart of immigrant communities, including bodegas, travel agencies and other locations. But federal and state laws have imposed licensing requirements in an effort to protect unwary consumers and monitor the flow of cash.
Prosecutors often try to come down heavily on businesses that they suspect of illegal money transfer activity, but a full review of the circumstances of every alleged offense is crucial. For instance, a business may be accused of illegal activity and threats of forfeiture even though it fails to meet the statutory definition of a money transmitting business. One precise requirement under the federal law is that receipt of funds from the customer must precede the transfer of funds to the destination. Also, the transfer of funds into the U.S. is not regulated under section 1960. And, under both federal and Florida law, if the money transmittal is incidental to the business, licensure is not required.
These are just three examples of legitimate defenses that can help an individual or a business defeat charges while avoiding a protracted court battle, seizure of business assets and possible incarceration. When a party finds itself under investigation, the first step is to consult with a criminal defense attorney and assemble a defense strategy.
Fighting Unfounded Charges of Financial Crimes With Legal Experience
Financial crimes for individuals and companies come in many forms, from money laundering, money transmittal and wire fraud to import/export crimes and violations of the Foreign Corrupt Practices Act (FCPA). In every case, full disclosure of your concerns to an experienced criminal defense lawyer can provide helpful information and dispel the cloud of what may seem like the government's presumption of guilt.
With protection from a law firm that knows the law, understands how to evaluate complex financial records and has extensive experience in cases involving allegations of money crimes, an accused person or business can take steps to avoid a costly shutdown of a profitable service. State and federal financial crimes statutes are complex for a reason: forfeiture is a severe legal measure that strikes at the heart of free enterprise. For that reason, an aggressive response based on a sound legal strategy is crucial.
