The offence of money laundering consists of concealing the fraudulent origin of funds derived from a felony or misdemeanour so that they appear to come from legitimate sources.

Such conduct is provided for under Articles 324-1 et seq. of the French Criminal Code.

1. The prerequisites for money laundering

Money laundering is a consequential offence, meaning that, as with handling stolen goods, a predicate offence must first have been committed. This predicate offence may be a felony or misdemeanour (drug trafficking, arms trafficking, tax fraud, corruption, extortion, etc.).

2. Conduct that may constitute money laundering

Money laundering may consist of two types of conduct:

(1) Facilitating, by any means, the false justification of the origin of the property or income of the perpetrator of a felony or misdemeanour;

(2) Assisting in an operation involving the investment, concealment or conversion of the direct or indirect proceeds of a felony or misdemeanour (particularly in the case of professionals such as bankers).

There are numerous methods used in practice to launder money: these may include issuing false invoices, creating shell companies, using offshore accounts, investing funds in sports betting, etc.

Money laundering generally takes place in three stages:

• The placement stage, which consists of introducing funds of fraudulent origin into the legitimate financial system;
• The layering or conversion stage, which consists of carrying out multiple investments/transactions within the legitimate financial system in order to distance the funds from their illegal source;
• The integration stage, which consists of reintroducing these funds into the economy.

3. The perpetrator’s knowledge of the fraudulent origin of the funds

The perpetrator must be aware of the fraudulent origin of the funds, meaning that they know either (i) that the person whose resources they falsely claim to be legitimate has committed a felony or misdemeanour from which that person derived a benefit, or (ii) that the money-laundering transaction involves the direct or indirect proceeds of a felony or misdemeanour.

Penalties

Money laundering is punishable by 5 years’ imprisonment and a fine of €375,000.

Attempted money laundering is also punishable.

Aggravating Circumstances

Where money laundering is committed habitually, by using the facilities provided by the exercise of a professional activity, or as part of an organised criminal group, the penalties are increased to 10 years’ imprisonment and a fine of €750,000 (and the fine may be increased to up to half the value of the laundered funds).

Your Criminal Defense with Maître Lois Pamela LESOT

Are you a victim or accused in a money laundering case?
Consult a lawyer: Maître Lois Pamela LESOT – 06.52.02.54.42 – lesot@loispamelalesot.com

The firm regularly assists and represents both victims and persons accused in money laundering cases, as well as in relation to all types of criminal offences, including corruption or handling stolen goods.

If you wish to file a criminal complaint regarding money laundering, you can consult this article.
If you are accused of money laundering, you can prepare for police custody by consulting this article and for a voluntary interview by consulting this article.

Article date: 4 June 2024 | By Lois Pamela LESOT