A conspiracy to commit money laundering sentence under 18 U.S.C. § 1956(h) can reach 20 years in federal prison, plus a fine of up to $500,000 or twice the value of the funds involved, whichever is greater.1Office of the Law Revision Counsel. 18 US Code 1956 – Laundering of Monetary Instruments That is the ceiling. What a judge actually imposes depends on the United States Sentencing Guidelines, which produce an advisory range built from the dollar amount laundered, the underlying crime the money came from, the defendant’s role, and the defendant’s prior record. Two people convicted of the same statute can walk out with very different sentences.
The Statutory Maximums
Section 1956(h) ties the conspiracy penalty to the completed offense the conspirators were aiming at. If the target was a § 1956(a) violation, each count carries up to 20 years in prison and a fine of up to $500,000 or twice the value of the property involved.2Office of the Law Revision Counsel. 18 USC 1956 – Laundering of Monetary Instruments Multiple counts can stack.
When the target offense is instead 18 U.S.C. § 1957, which covers knowingly dealing in criminally derived property above $10,000, the maximum drops to 10 years with a fine up to $250,000 or twice the value of the property.3Office of the Law Revision Counsel. 18 USC 1957 – Engaging in Monetary Transactions in Property Derived from Unlawful Activity Prosecutors often charge both § 1956 and § 1957 counts in the same indictment, giving the jury alternative paths to conviction and the court a choice of ceilings.
Most defendants are sentenced well below the statutory maximum. The number that matters in nearly every case is the guideline range.
How the Guidelines Set the Range
The money laundering guideline sits at USSG § 2S1.1. The base offense level depends on whether you were part of the crime that generated the money or whether you only helped move it.4United States Sentencing Commission. 2024 Guidelines Manual – Chapter Two Offense Conduct
If You Committed the Underlying Crime
If you are accountable for the offense that produced the dirty money, your base offense level is the offense level of that predicate crime. For something like drug trafficking, that number can land in the mid-30s on its own. The laundering count then adds exposure on top of what the predicate already carries.
If You Only Laundered Someone Else’s Money
Third-party launderers start at a base offense level of 8, and the court adds levels tied to the total value of the funds through the loss table at USSG § 2B1.1. That table begins at $6,500 and scales upward through dozens of thresholds, with higher dollar amounts producing steeper increases. A conspiracy involving $50,000 produces a much lower level than one involving several hundred thousand, and multi-million-dollar schemes climb higher still.
The Sentencing Table
Once the total offense level is finalized, it is paired with the defendant’s Criminal History Category (I through VI) on the Sentencing Table to produce a range in months.5United States Sentencing Commission. Annotated 2025 Chapter 5 An offense level of 15 with Criminal History Category III, for example, produces a range of 24 to 30 months. The judge must calculate and consider this range, but under 18 U.S.C. § 3553(a) can sentence above or below it based on the seriousness of the offense, deterrence, public safety, and the need to avoid unwarranted disparities.6Office of the Law Revision Counsel. 18 US Code 3553 – Imposition of a Sentence
What Pushes the Sentence Up
Several enhancements can stack on top of the base offense level, and more than one usually applies.
Serious Underlying Criminal Activity
For third-party launderers, a 6-level enhancement applies if you knew or believed the funds came from, or were intended to promote, especially serious crimes: drug manufacturing or trafficking, crimes of violence, firearms or explosives offenses, national security offenses, terrorism, or sexual exploitation of a minor.4United States Sentencing Commission. 2024 Guidelines Manual – Chapter Two Offense Conduct Six levels is a large jump that can add years to the recommended term.
The Conviction Bump and Sophisticated Laundering
Under § 2S1.1(b)(2), the court applies whichever of the following produces the greatest increase: 1 level for a § 1957 conviction, 2 levels for a § 1956 conviction, or 4 levels if the defendant was in the business of laundering funds (available only on the third-party track). A § 1956 conviction also carries an additional 2-level increase if the offense involved sophisticated laundering, such as fictitious entities, shell corporations, multiple layers of transactions, or offshore accounts.7United States Sentencing Commission. Amendment 634 – Laundering of Monetary Instruments
Leadership Role
Defendants who organized, led, managed, or supervised others receive an upward adjustment under the role rules:8United States Sentencing Commission. Primer on Aggravating and Mitigating Role Adjustments
- 4 levels for organizing or leading a criminal activity involving five or more participants or one that was otherwise extensive.
- 3 levels for managing or supervising such an activity without organizing or leading it.
- 2 levels for organizing, leading, managing, or supervising a smaller-scale activity.
Obstruction of Justice
A 2-level increase applies if the defendant obstructed or tried to obstruct the investigation, prosecution, or sentencing. Shredding records after learning of an investigation, destroying documents, and perjury are the standard examples.9United States Sentencing Commission. USSG 3C1.1 – Obstructing or Impeding the Administration of Justice This enhancement is applied more often than defendants expect.
What Can Bring the Sentence Down
A defendant who genuinely accepts responsibility, typically by pleading guilty early enough to spare the government the cost of trial preparation, receives a 2-level reduction. If the offense level before the reduction is 16 or higher and the government files a motion confirming timely notice of a guilty plea, a third level comes off, for a total of 3 levels.10United States Sentencing Commission. Amendment 775 Going to trial and losing almost always forfeits this reduction.
A defendant who played only a minimal or minor part in the conspiracy, such as a courier who moved cash without understanding the full scope, may receive a downward role adjustment of 2 to 4 levels.
Fines, Forfeiture, and Restitution
The money side of the sentence can be heavier than the fine itself. Under 18 U.S.C. § 982, the court must order forfeiture of any property involved in the money laundering offense and any property traceable to it.11Office of the Law Revision Counsel. 18 US Code 982 – Criminal Forfeiture Forfeiture is mandatory, not discretionary. If prosecutors trace a bank account, a home, a vehicle, or a business back to the laundered funds, the judge must order it seized. If the original property has been spent, transferred, or hidden, the government can reach substitute assets.
The statutory fine of up to $500,000 or twice the value of the property is imposed on top of forfeiture, so a defendant can lose both the tainted assets and additional legitimate money. When identifiable victims suffered direct financial loss from the underlying crime, the court may also order restitution.
Supervised Release and Special Assessment
A § 1956 conviction is a Class C felony, which authorizes a term of supervised release of up to 3 years after the prison sentence ends.12Office of the Law Revision Counsel. 18 US Code 3583 – Inclusion of a Term of Supervised Release After Imprisonment Conditions can include regular contact with a probation officer, travel restrictions, financial monitoring, drug testing, and employment requirements. Violations can return a defendant to prison.
A mandatory special assessment of $100 per count applies to every federal felony conviction for an individual defendant, and $400 per count for organizational defendants.13Office of the Law Revision Counsel. 18 US Code 3013 – Special Assessment on Convicted Persons It is non-waivable.
Consequences That Outlast the Sentence
A federal money laundering conviction follows a defendant well after release.
Professional Licensing
Anyone in the financial industry faces immediate fallout. Under FINRA’s rules, every felony conviction triggers a statutory disqualification that bars the person from associating with any FINRA member firm in any capacity for 10 years from the date of conviction, with return afterward requiring a formal eligibility proceeding.14FINRA. General Information on Statutory Disqualification and FINRA Eligibility Proceedings Banking, accounting, law, and real estate licensing boards each have their own disqualification rules.
Immigration
For non-citizens, the immigration consequence can outweigh the prison term. Federal law classifies money laundering as an aggravated felony when the amount of funds exceeds $100,000.15U.S. Department of Justice. Criminal Resource Manual 1934 – Appendix D Grounds for Judicial Deportation An aggravated felony makes a non-citizen deportable, bars most forms of relief from removal, and permanently prevents future admission.
Firearms, Benefits, and Employment
A federal felony conviction also removes the right to possess firearms, disqualifies the defendant from certain government benefits, and makes employment difficult, particularly at financial institutions. The conviction remains on the record permanently; there is no federal expungement process for felony convictions of this kind.