Money Laundering Charges under Section 261 StGB - What Those Affected Need to Know Now

Money Laundering Charges under Section 261 StGB - What Matters Now

A money laundering allegation hits those affected with full force and without warning. Accounts are frozen, assets are seized, premises are searched. Suddenly it is not just criminal proceedings that are at stake, but economic existence.

This article explains what money laundering under Section 261 StGB means, what sentences and economic consequences threaten, how such an allegation arises in practice, and what a defense can look like. It is aimed at business owners, self-employed persons, managing directors and private individuals who need to know what matters now.

"In money laundering cases, the key question is often whether the predicate offense has actually been proven. Those who explain themselves hastily give away the most important line of defense."

• →Tom Beisel, Attorney

Attorney Tom Beisel defends clients in money laundering proceedings nationwide - from the first search through to the main hearing.

What Is Money Laundering under Section 261 StGB?

Money laundering occurs when assets derived from an unlawful predicate offense are concealed, exchanged, transferred, used or disguised as to their origin. Assets that can be affected include cash, real estate, cryptocurrencies and luxury goods.

Since the 2021 reform, the so-called all-crimes approach applies. This means that in principle any criminal offense can constitute a predicate offense - no longer only a limited catalogue of serious offenses. This has considerably expanded the scope of the money laundering provision.

Not only intentional money laundering is punishable. Reckless money laundering is also a criminal offense - meaning the case where someone fails to recognize the illegal origin of assets out of gross carelessness, even though it should have been obvious.

Sentences and Economic Consequences

The sentencing range is considerable and extends far depending on the circumstances:

• →intentional money laundering: imprisonment of up to five years or a fine
• →particularly serious case, for example organized or commercial activity: imprisonment of six months to ten years
• →reckless money laundering: imprisonment of up to two years or a fine

Often at least as serious are the economic consequences that can arise even at the investigation stage. These include forfeiture of assets under Sections 73 ff. StGB, account freezes, asset seizure orders and - depending on the profession - professional or trade law consequences. Significant reputational damage must also be expected.

Forfeiture and asset seizure in particular often hit those affected harder than the actual sentence, because they take effect early and immediately restrict economic freedom of action.

How a Money Laundering Allegation Arises

In practice, suspicious transaction reports are frequently the starting point. Banks and other entities subject to the Anti-Money Laundering Act are legally required to report suspicious transactions to the Financial Intelligence Unit (FIU). Criminal investigations develop from such reports.

Typical triggers include real estate purchases with unexplained sources of funds, larger cash transactions, suspicious cryptocurrency transactions, and so-called money mule constellations where those affected make their account available for third-party payment flows through purported side jobs. Connections to sanctions lists can also trigger investigations.

In many cases those affected are not the actual masterminds but become caught up in suspicion as a link in a chain - for example as account holders, purchasers or intermediaries.

What to Do Immediately When Facing an Allegation

In the initial phase, a great deal is often decided. Calm and structured action is important:

• →make no statement on the matter without legal counsel
• →give no spontaneous explanations about the origin of assets to investigators
• →do not hand over passwords or access credentials hastily
• →secure any evidence of the legal origin of the assets
• →apply early through a defense lawyer for access to the case file

The Central Defense Approach: The Predicate Offense

The defining feature of money laundering is that it requires an unlawful predicate offense. The assets must derive from a specific criminal act. This is frequently where the most important defense approach lies.

In practice the predicate offense is often not clearly established. The question then arises whether the derivation from an unlawful act can actually be proven, or whether only a general suspicion exists. It must equally be examined whether the subjective elements are met - whether actual intent or at least recklessness was present.

Further points of attack are the lawfulness and proportionality of the search, account freeze and asset seizure, as well as the question of whether credible proof of the legal origin of the assets can be provided. Thorough documentation of a legitimate source of funds can significantly undermine the allegation.

Money Laundering and Cryptocurrencies

Cryptocurrencies play a growing role in money laundering proceedings. Transactions via wallets, exchanges and partly anonymized structures quickly give rise to suspicion, even where the economic background is entirely legal.

Here it is important to secure transaction histories, exchange data and wallet movements completely and present them in a comprehensible way. Technically sound reconstruction is often decisive in making the legal origin plausible and correcting overstated assumptions by the investigating authorities.

Defense in Money Laundering Proceedings

An effective defense starts early and combines the criminal law and economic dimensions. After access to the file, the key questions are whether the predicate offense is proven, whether the subjective elements are established, and whether the asset-securing measures are lawful.

Possible goals depending on the case include discontinuation of proceedings, lifting or reduction of account freeze and asset seizure, defense against forfeiture, and avoidance of a public main hearing. Throughout, the aim is to protect the economic freedom of action and reputation of those affected.

Frequently Asked Questions

What does the all-crimes approach mean?

Since 2021, in principle any criminal offense can be a predicate offense for money laundering, no longer only a catalogue of serious offenses. This has considerably expanded the scope of Section 261 StGB.

Can I be criminally liable without intent?

Yes. Reckless money laundering is also punishable. Those who fail to recognize the illegal origin out of gross carelessness, even though it should have been obvious, can be criminally liable.

My account has been frozen - what can I do?

Account freezes and asset seizures can be challenged. It must be examined whether the measure is lawful and proportionate and whether credible proof of the legal origin of the assets can be provided.

What is the most important first step?

Make no statement on the matter, give no spontaneous explanation of the origin of the funds, and apply early through a defense lawyer for access to the case file. A meaningful defense can only be built on the basis of the file.

Are you facing money laundering charges under Section 261 StGB, has your account been frozen or an asset seizure order been made? The earlier the defense begins, the better assets and economic freedom of action can be protected. I defend in money laundering proceedings discreetly and nationwide. Get in touch directly.