The term money laundering refers to the introduction of illegally earned money (or assets in general) into the legal financial and economic cycle. Usually, this illegally acquired money is either the result of illegal activities (e.g. drug trafficking, arms trafficking, human trafficking) or is intended to finance illegal activities.
Money laundering is assumed in the following cases:
- Establishment of pyramid schemes and transfer of money from depositors to various banks and charitable organizations in different countries
- Legalization of stolen motor vehicles with the aim of transferring them to other countries
- Deposit of amounts of money so that the impression arises that it concerns lawful income of the co-owner
- Legalization of illegal income through deposit into bank accounts and their investment in shares and real estate
- Embezzlement of amounts by bank employees or an agent and their transfer to bank accounts abroad, or to bank accounts of other persons, so that the course of the money transfer is disguised
General penalty range: Imprisonment of 5-10 years and a fine of 20,000-1,000,000 Euro; if the perpetrator had a special professional duty of care, the imprisonment is 5-20 years and a fine of 30,000 – 1,500,000 Euro; for repeat offenders, a penalty range of 10-20 years and a fine of 50,000 – 2,000,000 Euro is provided.
It should be noted that already in the first phase of the criminal proceedings, an account freeze, the opening of a safe deposit box (the opening of joint safe deposit boxes is also permitted) as well as the sale of the accused’s real estate can be ordered.