Charged with Money Laundering (PC § 186.10) in California? Here’s What You Need to Know.

Money laundering charges can be a game-changer. Suddenly, your financial transactions are viewed through a criminal lens, and you’re facing potential prison time, staggering fines, and long-term damage to your professional and personal reputation.

If you’ve been accused of money laundering under California Penal Code § 186.10, you’re likely under investigation for a broader criminal operation—or being used as a scapegoat in one. Either way, the prosecutors will treat it seriously. At The Nieves Law Firm, we know how to push back with smart, strategic defense.

Here’s what you need to know if you or someone close to you is being investigated or charged.

Money Laundering Under California Penal Code § 186.10

California Penal Code § 186.10 makes it a crime to:

“Conduct or attempt to conduct a transaction—or multiple transactions within a seven-day period totaling over $5,000, or within a 30-day period totaling over $25,000—through a financial institution, with the intent to promote or facilitate criminal activity, or knowing that the money is derived from criminal activity.”

That’s a mouthful, but here’s the key takeaway: You don’t have to physically handle dirty money to be charged. If you knowingly move or process money tied to criminal conduct, or if you handle funds in a way that helps conceal illegal profits, you could be accused of laundering.

Examples of Money Laundering

• Depositing structured cash payments to avoid detection or federal reporting rules
• Transferring funds through multiple accounts or across borders to “clean” them
• Using criminal proceeds to purchase property, assets, or cover legitimate expenses
• Accepting payment for legal services with funds allegedly tied to a crime, with intent to conceal the source
• Layering transactions (multiple small deposits or withdrawals) to disguise origin

It’s important to note: prosecutors don’t have to prove that you committed the underlying crime. They just have to show that you knew the money came from criminal conduct—or that you used the transactions to facilitate criminal activity.

Penalties for Money Laundering in California

Money laundering is a wobbler offense—meaning it can be charged as a misdemeanor or a felony, depending on the circumstances.

Misdemeanor Penalties

• Up to 1 year in county jail
• Fine of up to $250,000 or twice the value of the laundered funds, whichever is greater
• Possible probation and asset forfeiture

Felony Penalties

• 16 months, 2 years, or 3 years in jail under Penal Code § 1170(h)
• Fines of up to $250,000 or twice the value of the funds involved
• For repeat offenders, fines may increase to $500,000 or five times the amount laundered
• Mandatory restitution and possible federal charges

Enhanced Penalties for Large Transactions

If the alleged laundering involves larger sums, the court may add additional years in prison:

• $50,000 – $149,999: +1 year
• $150,000 – $999,999: +2 years
• $1 million – $2.5 million: +3 years
• Over $2.5 million: +4 years

To apply these enhancements, the prosecutor must either:

1. Allege the dollar amount in the charging documents, and
2. Secure an admission from the defendant or prove it beyond a reasonable doubt at trial.

These enhancements are consecutive—they’re added to your sentence, not included within it.

Each Transaction Can Count as a Separate Crime

California Penal Code § 186.10(b) treats each qualifying transaction or group of transactions as a separate, punishable offense.

For example:

• One $10,000 deposit may equal one count.
• Two $3,000 deposits made within a 7-day period could equal another count.
• Multiple small transfers over 30 days totaling $25,000 could lead to yet another count.

That means a single investigation can easily result in multiple charges—each carrying its own potential sentence and fine.

What Must the Prosecutor Prove?

To convict you of money laundering, the prosecution must prove the following elements:

1. You conducted or attempted to conduct one or more financial transactions;
2. The transactions totaled more than $5,000 in 7 days or more than $25,000 in 30 days;
3. The transaction(s) involved monetary instruments (cash, checks, electronic transfers, etc.);
4. You either:
   • Intended to promote or facilitate criminal activity; or
   • Knew the funds came from criminal activity, directly or indirectly.

In cases involving an attorney accepting legal fees, prosecutors must also prove the attorney took the payment with intent to disguise the source of funds or the nature of the crime.

Legal Defenses to Money Laundering Charges

At The Nieves Law Firm, we don’t assume guilt—and we don’t let the prosecution cut corners. Here are some common defenses we may explore based on the facts of your case:

1. Lack of Knowledge

You must knowingly participate in laundering. If you were unaware that the funds were tied to illegal activity—or you believed them to be from a legitimate source—this could negate key elements of the charge.

2. No Criminal Intent

You may have moved money or accepted payment without any intent to promote or further criminal conduct. Simply handling or transferring money isn’t enough.

3. Insufficient Evidence

Many money laundering charges stem from circumstantial evidence, guesswork, or broad financial investigations. We can challenge:

• The origin of the funds
• The structure and purpose of the transaction
• The documentation trail
• The prosecution’s interpretation of your role

4. Violation of Constitutional Rights

If law enforcement obtained financial records or communications without a warrant or violated your rights during questioning, we can seek to suppress evidence.

5. Entrapment or Government Overreach

If you were induced or pressured into participating in suspicious transactions by law enforcement or a confidential informant, that may support an entrapment defense.

Why These Cases Need Experienced Defense

Money laundering investigations often involve:

• Multiple agencies (local, state, federal)
• Wire transfers, cryptocurrency, shell companies, or offshore accounts
• Financial data spanning months or years
• Parallel investigations into drug trafficking, fraud, tax evasion, or organized crime

You need a defense team that knows how to analyze financial evidence, challenge legal assumptions, and negotiate effectively. At The Nieves Law Firm, we’ve handled high-stakes white-collar and financial crime cases with diligence, discretion, and results.

Accused of Money Laundering? Get a Law Firm That Fights for Your Future.

Whether you’re being investigated, charged, or already arrested, don’t wait. Money laundering charges move fast—and can quickly expand into federal court or trigger asset seizures. The sooner we act, the stronger your defense.

Contact The Nieves Law Firm or request a consultation online. Let’s review your case, protect your rights, and build a strategy to fight back.