Voluntary Disclosure Can Provide Immunity from Prosecution
The accusation of money laundering should not be underestimated, as severe financial penalties or prison sentences can be imposed. A timely and complete voluntary disclosure can help avoid punishment.
In cases of money laundering, offenders face fines or imprisonment of up to five years. In particularly severe cases, prison sentences of up to ten years can be imposed. This demonstrates the importance of responding to suspicions of money laundering. A voluntary disclosure regarding money laundering may offer a way to avoid punishment or at least mitigate the severity of the penalty, according to the legal firm MTR Legal Rechtsanwälte, which also advises on economic criminal law.
The Money Laundering Act is intended to strengthen the fight against money laundering. This has led to increased due diligence obligations for banks, insurance companies, and other businesses. Consequently, there has been an increase in suspicious activity reports related to money laundering. Those affected should act quickly to clarify the suspicion, as further severe sanctions, such as account freezes, may follow.
Elements of Money Laundering
The elements of the offense of money laundering are regulated in Section 261 of the German Criminal Code (StGB). Money laundering occurs when illegally obtained funds are introduced into the legal financial system. Offenders face fines and imprisonment ranging from three months to five years. In particularly severe cases, however, prison sentences of up to ten years may be imposed. A particularly severe case is generally assumed when the offender acts commercially or has joined a criminal organization.
If the offender acted merely negligently, a lower penalty may be applied. Even in such cases, however, imprisonment of up to two years alongside fines is possible. This shows how crucial an effective defense is in cases of money laundering allegations. Measures may also include voluntary disclosure.
Immunity from Prosecution Through Voluntary Disclosure
Under Section 261, paragraph 8 of the StGB, those who voluntarily report the offense to the relevant authorities can be immune from prosecution. However, for a voluntary disclosure to be effective, the money laundering must not have been fully or partially discovered. If authorities already have suspicions or have begun investigations, it may be too late for an effective voluntary disclosure.
Additionally, the voluntary disclosure must be complete to provide immunity from prosecution. This means it must disclose all relevant information related to the money laundering offense to the authorities and present it plausibly. Inaccuracies or minor errors can render the voluntary disclosure ineffective. Therefore, it is advisable to involve experienced legal professionals specializing in economic criminal law when making a voluntary disclosure. They are familiar with the pitfalls of voluntary disclosure and know exactly what information it must contain to have an immunity effect. Even if complete immunity is not possible, the voluntary disclosure can still have a mitigating effect on the penalty.
Developing an Effective Defense Strategy
The offense of money laundering must be proven against the accused. This means that the authorities must be able to demonstrate that the money or asset in question originates from a criminal offense and that the accused was aware of this. Moreover, it is necessary to show that the accused deliberately attempted to conceal the origin of the money and hinder the investigation. If the authorities have already begun an investigation, a voluntary disclosure will no longer provide immunity. Instead, it could play into the hands of the investigators, giving them access to valuable information. Nevertheless, in such cases, a voluntary disclosure can have a similar effect to a confession, potentially mitigating the penalty. It is important to carefully assess the situation with experienced legal professionals and then build a defense strategy.
Whether to choose voluntary disclosure or another defense strategy should be discussed in confidence with competent and experienced legal professionals, who can advise on which approach is most promising.
MTR Legal Rechtsanwälte advises on defense strategies in cases of suspected money laundering and other topics related to economic criminal law.
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