Federal criminal charges for Operating an Illegal Money Transmitting Business, 18 USC Section 1960.

Running an illegal money transfer business in the United States is typically prosecuted under 18 U.S. Code § 1960, which covers “Prohibition of unlicensed money transmitting businesses.” Here’s a breakdown of the key elements and possible penalties:

Elements of the Offense (18 U.S.C. § 1960)

To secure a conviction under this statute, the government must prove one or more of the following:

1. Unlicensed Operation:
   • The defendant knowingly operated a money transmitting business without a state license where one is required.
   • The business affected interstate or foreign commerce.
3. Failure to Register with FinCEN:
   • The business failed to register with the Financial Crimes Enforcement Network (FinCEN) as required under federal law.
5. Operation Involving Criminal Activity:
   • The business knowingly conducted money transmitting operations involving funds derived from criminal activity or intended to promote unlawful activity.
   • Alternatively, it knowingly tried to conceal the nature, source, or ownership of the funds.

Penalties

A violation of 18 U.S.C. § 1960 can result in:

• Criminal Penalties:
  • Up to 5 years in prison
  • Fines: Up to $250,000 (for individuals) or $500,000 (for organizations)
  • Asset forfeiture: Any property involved in the offense or traceable to it can be seized.
• Aggravating Factors (may increase penalties):
  • If linked to other federal crimes such as:
    • Money laundering (18 U.S.C. § 1956 or § 1957)
    • Drug trafficking
    • Terrorist financing
• Civil Penalties (in some cases):
  • Civil fines from FinCEN or other regulatory bodies may also apply for failing to comply with Bank Secrecy Act (BSA) requirements.

Conclusion

An accusation of a violation of 18 U.S.C. § 1960 can be very serious and carries significant potential penalties. If you believe that you are being investigated for a violation of this statute, you should immediately seek the assistance of an experienced federal criminal defense attorney. Matthew Galluzzo is a former Manhattan prosecutor who has successfully defended individuals facing possible criminal charges for this offense. He has particular experience representing foreign nationals accused of transmitting money to foreign countries. If you or a loved one are facing such an investigation by federal agents, you should strongly consider contacting Mr. Galluzzo to discuss his legal services.