What Are the Possible Consequences for Money Laundering in Texas?

 Posted on July 29, 2025 in Money Laundering

Money laundering is a serious offense in Texas and at the federal level. Law enforcement agencies aggressively investigate and prosecute these crimes due to their connection with drug trafficking, fraud, and other illegal enterprises. The penalties can be severe, and even a conviction on state charges can lead to a long prison sentence and hefty fines. If you are under investigation or facing charges, speak to a Dallas, TX money laundering defense lawyer as soon as possible.

What Is Money Laundering Under Texas Law?

According to Texas Penal Code § 34.02, a person commits money laundering when they knowingly engage in financial transactions involving proceeds from criminal activity. This could include actions like transferring, spending, investing, or concealing money that was not legally acquired.

To get a conviction, prosecutors must prove that you knew the money came from criminal conduct. This intent requirement is important. Simply handling or depositing large sums of cash is not enough unless there is evidence that you had knowledge of the illegal source. The potential penalties depend on the amount involved. For example, money laundering charges for under $30,000 could result in up to two years in prison. However, if the amount is valued over $300,000, you can be charged with a first-degree felony that could result in a life sentence, depending on the circumstances. In all cases, fines can be significant, and prosecutors may also pursue asset forfeiture.

When Is Money Laundering a Federal Crime?

Money laundering may become a federal case if it involves interstate or international transactions, financial institutions, or federal crimes, such as drug trafficking, fraud, or terrorism. Under 18 U.S. Code § 1956, federal prosecutors must prove that you conducted financial transactions with criminal proceeds and intended to promote illegal activity or conceal the source of it. Another law, 18 U.S. Code § 1957, makes it illegal to spend or deposit more than $10,000 in funds derived from specific criminal activity. Unlike §1956, this law focuses on the value of the transaction rather than the intent to conceal.

Federal penalties are steep. A conviction may result in up to 20 years in prison and fines of up to $500,000 or twice the amount of the laundered funds, whichever is greater.

What Do You Do if You Are Under Investigation for Money Laundering in Texas?

If you believe you are under investigation, do not speak to law enforcement without a lawyer present. Statements made during questioning can be used against you, even if you believe you did nothing wrong. An experienced defense attorney can help you review financial records, challenge the evidence against you, and identify holes in the prosecution’s case. They will negotiate on your behalf and help you build a strong defense to fight to reduce or dismiss the charges. 

Call Our Dallas, TX Money Laundering Defense Attorney for a Free Consultation

Attorney Arnold Spencer brings valuable insight from his time as an Assistant U.S. Attorney in the Eastern District of Texas, where he prosecuted more than 100 federal cases, including high-profile financial crimes. Attorney M. Andrew Stover adds over 34 years of criminal law experience and handled numerous federal money laundering cases during his time with the U.S. Department of Justice. Our backgrounds as federal prosecutors give us a deep understanding of how these cases are built. More importantly, we learned how to take them apart. Contact the Dallas, TX money laundering defense lawyers at Spencer & Associates by calling 214-385-8500 for a free consultation. We try to avoid litigation whenever possible, but we will fight in court when necessary.