What is the difference between money laundering and other financial crimes?

Money laundering and other financial crimes are both considered white collar crimes and are punishable by law in California. The main difference between money laundering and other financial crimes is the purpose of the crime, and the methods used to commit it. Money laundering is a crime where someone, usually a criminal or businessperson, attempts to disguise the illegal origin of their funds. This may involve moving large amounts of money, through multiple complex financial transactions, in order to make it seem as though they were gained through legitimate means. Other financial crimes, such as embezzlement, fraud, and insider trading, involve a person or entity illegally obtaining funds in a much more direct manner. They may involve misappropriating funds, committing fraud, or taking advantage of privileged information. In California, money laundering is punishable by up to 4 years in prison and/or a fine of up to $250,000, according to Penal Code Section 186.10. Other financial crimes are punishable by the same prison sentences, with fines ranging from $10,000 to over $1,000,000.

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What is the difference between money laundering and other financial crimes?

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