Tax Evasion and Money Laundering (Venue)

Criminal prosecution for money laundering offenses under 18 USC 1956, 1957 may be brought:

1) In any district in which the financial or monetary transaction is conducted;

2) In any district where a prosecution for the underlying Specified Unlawful Activity (“SUA”) could be brought, if the defendant participated in the transfer of the proceeds of the SUA, from that district to the district where the financial or monetary transaction is conducted (See 18 USC 1956 (i)(1).

Under 18 USC 1956 (i) (2), a prosecution for an attempt or conspiracy offense may be brought in the district where venue would be for the completed offense or in any other district where an act in furtherance of the attempt or conspiracy took place.

Under 18 USC 1956 (i) (3), a transfer of funds from one place to another, by wire or any other means, shall constitute a single, continuing transaction. Any person who conducts any portion of the transaction may be charged in any district in which the transfers take place.

For money laundering crimes the following definitions apply:

1) Under 18 USC 1956 (c) (9) the term “proceeds” means any property derived from or obtained or retained directly or indirectly through some form of unlawful activity including the gross receipts of such activity;

2) Under 18 USC 1956 (c) (1), “knowing that the property involved in a financial transaction represents the proceeds of some form of illegal activity”. In this case, the person knew that the property involved in the transaction represented proceeds from an activity that constitutes a felony under federal, state or foreign law, which includes tax evasion and related tax crimes (regardless of whether or not such activity is specified in 18 USC 1956 (c) (7).


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