Money laundering charges in Minnesota attract public attention because they involve large sums of money and complex financial transactions. While the term “money laundering” might bring to mind international crime syndicates, prosecutions in the Twin Cities can involve everything from local business dealings and investments to real estate transactions. The most important thing someone accused can do is hire an experienced white-collar crime defense lawyer as soon as they know they’re under investigation.
What Is Money Laundering Under Minnesota Law?
Minnesota’s money laundering statute prohibits knowingly or attempting to conduct a financial transaction involving proceeds from unlawful activity. Someone commits this felony if they:
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Conduct a transaction involving a monetary instrument or instruments valued over $5,000; and
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Know (or have reason to know) that the monetary instrument represents proceeds of a felony under Minnesota law or an equivalent out-of-state felony.
“Monetary instruments” are defined broadly. They include:
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U.S. or foreign currency
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Bank checks
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Cashier’s checks
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Money orders
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Securities
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Bullion
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Certain precious gemstones (diamonds, emeralds, rubies, sapphires)
The statute does not criminalize every financial transaction—only those involving these defined instruments that were derived from felony proceeds.
Proving the Source of Funds
One of the primary challenges for prosecutors is demonstrating that the funds in question originated from a felony. Evidence often comes from:
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Bank statements and transfers or investment account records
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Business documents showing suspicious financial activity
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Communications suggesting the accused was aware of the funds’ illicit source
Minnesota courts require a clear connection between the monetary instruments and criminal activity. General suspicion or unrelated illegal activity is insufficient. Cases often hinge on carefully tracing the funds, with forensic accountants and financial experts assisting both sides.
Knowledge of the Funds
A necessary component of money laundering in Minnesota is that the defendant had knowledge or reason to know that the monetary instrument was tied to felony proceeds. Prosecutors don’t have to show intent to hide the funds, but they must show that the person understood the funds’ illegal origin. Evidence of knowledge often includes:
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Complex or unusual financial structuring
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Using shell companies or offshore accounts
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Attempts to bypass standard reporting or scrutiny
Transactions that are legitimate or innocently structured generally don’t meet the standard for conviction. The focus is on what the person knew, not just how a transaction turned out.
Conducting a Transaction with a Monetary Instrument
A “transaction” can include any conduct involving monetary instruments exceeding $5,000. For example:
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Depositing or withdrawing currency
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Transferring securities or investment instruments
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Using monetary instruments to purchase assets
Complex financial arrangements can complicate things, especially when the defendant mixes legitimate and illicit funds. Forensic accounting and expert testimony help establish which exact funds were illegal.
Common Defense Approaches
Defense strategies in money laundering cases vary, and the right defense depends on the specific facts of the case. Defense lawyers typically attack one or more elements of the crime to show that prosecutors don’t have enough evidence to convict. Common approaches include:
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Challenging whether the monetary instruments and felony proceeds were connected
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Demonstrating lack of knowledge or reason to know the funds were illicit
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Arguing that any transactions were legitimate business activity
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Challenging whether financial records or expert testimony are reliable
The prosecution’s case can depend on minute details and tracing funds through multiple transactions. That’s why money laundering defenses frequently involve detailed forensic analysis of financial records and a careful review of the accused’s transactional histories.
Discuss Your Case with a Knowledgeable White-Collar Crime Defense Attorney in Minneapolis
Mauzy Law Office, P.A.’s experience in Minnesota courts allows us to navigate complex financial evidence while protecting our clients’ interests and reputations. Contact us today to learn how our Minneapolis criminal defense lawyers can help you.