Money Laundering Tax Fraud
International Tax Whistleblower Representation
Money laundering is typically performed to hide the true source of money, particularly when it is earned from illegal activities. By laundering the money, it gains the appearance of coming from a legitimate source.
Two of the most common methods used to launder money involve:
- Moving the money out of the United States and then bringing it back in a clean form, often disguised as loan proceeds
- Channeling or co-mingling the money through a variety of business activities to give the appearance that the money was earned from a legal source
Criminal Repercussions of Money Laundering
The Money Laundering Control Act (1986) makes it a felony to engage in a financial transaction with the intent to further a criminal endeavor or to conceal the proceeds of illegal activities. This law also addresses actions committed by third parties. Under the Money Laundering Control Act, it is illegal to knowingly engage in or attempt to engage in a financial transaction of $10,000 or more with property associated with criminal activity. Third parties may face criminal charges for depositing, transferring, or withdrawing these funds.
The civil tax penalties for money laundering are similar to those associated with other forms of tax fraud, and under the tax whistleblower program, informants may receive 15% to 30% of all recovered taxes, penalties, and interest associated with a money laundering scheme.
There are also specific criminal statutes that apply to money laundering cases, and individuals who are convicted may face incarceration as well as fines and penalties. The IRS will not pay a reward, however, on monies collected as part of a criminal fine.
The Kenney & McCafferty Difference
The tax whistleblower attorneys at Kenney & McCafferty can help you maximize your tax reward if you possess knowledge of a money laundering scheme resulting in large scale underpayment of taxes. Our firm represents accountants, money managers, and individuals working in finance departments who have documented proof of these schemes, and we will provide you with sound legal guidance to ensure your rights are protected.
If you have participated in any way in the scheme being reported, you should seek legal advice to assess any whistleblower risks to ensure that you will not face any civil or criminal exposure for your conduct. Kenney & McCafferty possesses the experience necessary both to evaluate potential civil or criminal liability and to take the steps necessary to secure the additional protections that will minimize your whistleblower risks.
If you have knowledge of money laundering tax fraud totaling $2 million or more, please contact our tax whistleblower attorneys today. Kenney & McCafferty will consult with you about your case, without obligation. All communications with Kenney & McCafferty attorneys regarding your case are confidential and protected by attorney-client privilege.
