Texas money laundering — Penal Code § 34.02
Texas money laundering is a criminal offense under Penal Code § 34.02. Base conduct is classified as a state jail felony; enhancements and aggravators can move the punishment range higher. Below: the controlling statute text, the full punishment range, common defense theories, and what to do if you have been charged in Collin, Dallas, Denton, or Tarrant County.
Classification: State jail felony to first-degree felony (value-tiered)
Punishment range: State jail felony (180 days–2 years + $10,000) $2,500–$30,000; third-degree (2–10 + $10,000) $30,000–$150,000; second-degree (2–20 + $10,000) $150,000–$300,000; first-degree (5–99 + $10,000) $300,000+
The controlling statute
Texas Penal Code § 34.02 punishes knowingly acquiring, transferring, concealing, or investing the proceeds of criminal activity. Liability does not require conviction for the underlying crime — the State must only prove the funds derive from criminal activity. Penalty tiers track the value of funds laundered, and the offense pairs powerfully with seizure authority under Code of Criminal Procedure Chapter 59, allowing the State to forfeit any property traceable to the laundered proceeds.
Classification & punishment range
| Element | Detail |
|---|---|
| Statute | Texas § 34.02 |
| Cluster | Theft & Property |
| Classification | State jail felony to first-degree felony (value-tiered) |
| Range | State jail felony (180 days–2 years + $10,000) $2,500–$30,000; third-degree (2–10 + $10,000) $30,000–$150,000; second-degree (2–20 + $10,000) $150,000–$300,000; first-degree (5–99 + $10,000) $300,000+ |
| Last reviewed | 2026-05-15 |
Elements the State must prove
To convict on a Texas § 34.02 charge, the State must prove every element beyond a reasonable doubt:
- Defendant knowingly acquired, possessed, transferred, transported, concealed, or invested funds
- That were proceeds of criminal activity
- Intent to promote criminal activity, conceal proceeds, or avoid reporting requirements
- Value of funds meets the charged tier
Defense strategies
L and L Law Group, PLLC develops the following defense strategies on every Money Laundering case:
- Lack of knowledge that funds derived from criminal activity — § 34.02(a) requires actual knowledge
- Funds derived from lawful sources — bank records, business income, gifts negate the proceeds element
- Insufficient nexus to the alleged underlying offense — speculative tracing fails proof
- Affirmative defense for licensed money-transmission businesses under § 34.02(d)
- Suppression of bank records obtained without statutory authority or proper subpoena process
- Statute of limitations under Article 12.01 — generally five years for laundering offenses
Enhancements & collateral consequences
When the underlying offense is itself a first-degree felony or the proceeds relate to controlled-substance trafficking, federal exposure under 18 U.S.C. § 1956 (mandatory minimum sentencing) becomes likely. Forfeiture under Chapter 59 of the Code of Criminal Procedure can reach all property traceable to the proceeds, including untainted commingled funds. Charging under § 34.02 does not require a prior conviction for the predicate offense.
Key Legal Terms
- Proceeds of Criminal Activity (§ 34.01(4))
- Funds derived directly or indirectly from the commission of any offense classified as a felony, or any qualifying out-of-state crime.
- Structuring Intent (§ 34.02(a)(4))
- Conducting transactions to evade currency-transaction reporting requirements; satisfies § 34.02 even without intent to conceal.
- Chapter 59 Forfeiture
- Code of Criminal Procedure provision allowing civil seizure of contraband and proceeds of criminal activity; runs in rem against the property itself.
Frequently Asked Questions
Can I be charged with money laundering if I didn't commit the underlying crime?
What is the difference between Texas and federal money laundering?
Is structuring deposits a Texas crime?
Will my house be seized?
Can I get a money laundering case dismissed?
References & Authoritative Sources
About the Authors
Reggie London
Co-Founding Partner · Texas Bar No. 24043514
Reggie London co-founded L and L Law Group with a focus on federal criminal defense, complex felony defense, and TEA/SBEC matters. Licensed in Texas, admitted to TXND and TXED.
Njeri London
Co-Founding Partner · Texas Bar No. 24043266
Njeri London co-founded L and L Law Group with a focus on DWI defense, family violence cases, and juvenile defense. Licensed in Texas, admitted to TXND and TXED.
Charged with Money Laundering? Talk to L and L Law Group.
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