California Penal Code §186.10 — Money Laundering
PC §186.10 is California's state money laundering statute. It punishes anyone who conducts, or attempts to conduct, one or more monetary transactions through a financial institution with (1) an aggregate value of more than $5,000 within a 7-day period, or more than $25,000 within a 30-day period, and (2) with the intent to promote criminal activity, or with knowledge that the funds derive from criminal activity. The offense is a felony punishable by 16 months, 2, or 3 years in state prison, plus consecutive value-based enhancements ranging from 1 additional year (for transactions over $50,000) to 4 additional years (for transactions over $2.5 million).
Reviewed by Daniel S. Rubin, CA Bar 302093 · Los Angeles Criminal Defense Attorney · Money Laundering Cases in All LA County Courts
01 — Quick Facts
PC §186.10 — Money Laundering at a Glance
| Fact | Detail |
|---|---|
| Full Name | California Penal Code §186.10 — Money Laundering |
| Code Type | Penal Code (PC) |
| Classification | Felony |
| Base Penalty | 16 months, 2, or 3 years state prison |
| Threshold | >$5,000/7 days or >$25,000/30 days |
| Value Enhancements | +1 to +4 years based on transaction total |
| Federal Parallel | 18 U.S.C. §1956 / §1957 — often co-charged |
| Moral Turpitude | Yes — CIMT / crime of dishonesty |
| Strike | No |
| Probation | Available in the court's discretion |
| Free Consultation | (213) 723-2337 — 24/7 |
01 — What Is PC §186.10?
What Is California Penal Code §186.10?
PC §186.10 Reads:
"Any person who conducts or attempts to conduct a transaction or more than one transaction within a seven-day period involving a monetary instrument or instruments of a total value exceeding five thousand dollars ($5,000), or a total value exceeding twenty-five thousand dollars ($25,000) within a 30-day period, through one or more financial institutions (1) with the specific intent to promote, manage, establish, carry on, or facilitate the promotion of any criminal activity, or (2) knowing that the monetary instrument represents the proceeds of, or is derived directly or indirectly from the proceeds of, criminal activity, is guilty of the crime of money laundering."
— California Penal Code §186.10(a)
PC §186.10 criminalizes the movement of criminally-derived or crime-promoting funds through banks, credit unions, casinos, money-transmitters, and other 'financial institutions' as defined in Financial Code §5061 and PC §186.9. The statute applies to structured deposits, wire transfers, cashier's-check swaps, currency conversion, prepaid card loading, and similar transactions. It does not require conviction on the underlying 'specified unlawful activity' — knowledge or promoting intent is enough.
Two Alternative Mental States
§186.10 offers the People two alternative theories: (1) 'promoting intent' — specific intent to promote, manage, establish, or facilitate criminal activity; or (2) 'knowledge' — knowing the funds derive from criminal activity. Promoting intent is broader — the underlying crime need not have been committed yet.
PC §186.10 — State ML
$5K/7 days or $25K/30 days aggregate. 16 mo / 2 / 3 yr triad + enhancements.
18 U.S.C. §1956 — Federal ML
No numerical threshold. Up to 20 years per count. Frequently co-charged.
Why §186.10 Matters Beyond the Base Sentence
PC §186.10 stacks consecutive value-based enhancements (§186.10(c)) on top of the base triad, and it is almost always filed alongside the underlying offense (drug trafficking, fraud, embezzlement). It is also a CIMT / crime of dishonesty carrying deportation and inadmissibility consequences for non-citizens, and it triggers civil asset-forfeiture proceedings under PC §186.11.
Official Sources
02 — Elements of the Crime
Elements the Prosecution Must Prove Under PC §186.10
To convict under PC §186.10, the prosecution must prove each element beyond a reasonable doubt.
Monetary Transaction Through a Financial Institution
A deposit, withdrawal, transfer, exchange, or similar transaction through a bank, credit union, casino, money-transmitter, or other 'financial institution' as defined in Fin. Code §5061 / PC §186.9.
Aggregate Value Threshold
More than $5,000 within any 7-day period, or more than $25,000 within any 30-day period. Aggregation across accounts and instruments is permitted.
Intent to Promote OR Knowledge
Either (a) specific intent to promote or facilitate criminal activity, or (b) knowledge that the funds derive from criminal activity.
Nexus to Criminal Activity
Under the knowledge prong, the funds must in fact derive from criminal activity; under the promoting prong, the activity intended to be promoted must qualify.
04 — Penalties
Penalties for PC §186.10 Money Laundering in California
PC §186.10 penalties combine a base triad with value-based enhancements.
| Charge | Code | Prison Term | Probation | Strike |
|---|---|---|---|---|
| §186.10 Base Offense | PC §186.10(a) | 16 months, 2, or 3 years state prison | Discretionary | No |
| Value >$50K enhancement | PC §186.10(c)(1)(A) | + 1 year consecutive | As to base only | No |
| Value >$150K enhancement | PC §186.10(c)(1)(B) | + 2 years consecutive | As to base only | No |
| Value >$1M enhancement | PC §186.10(c)(1)(C) | + 3 years consecutive | As to base only | No |
| Value >$2.5M enhancement | PC §186.10(c)(1)(D) | + 4 years consecutive | As to base only | No |
| Alternative Fine | PC §186.10(a) | Fine up to $250,000 or 2x value laundered, whichever is greater | N/A | N/A |
Related Enhancements
Aggregate White-Collar Enhancement
PC §186.11
Losses over $100,000 with a pattern of related felonies add 2, 3, or 5 years, plus asset forfeiture.
Federal Parallel — 18 U.S.C. §1956/§1957
18 U.S.C. §1956 / §1957
Federal money laundering — up to 20 years per §1956 count, 10 years per §1957 count. Frequently co-charged in interstate cases.
Criminal Profiteering — PC §186.2
PC §186.2
'Pattern' of designated felonies triggers forfeiture and additional penalties under the Criminal Profiteering Act.
Underlying Offense
PC §182 / §487 / HS §11351
The predicate offense is almost always filed concurrently — theft, fraud, drug trafficking, or conspiracy.
Beyond the Sentence
- State prison exposure up to 7 years (base + max enhancement)
- Asset forfeiture under PC §186.11 / §186.2 (all traceable proceeds)
- Concurrent federal exposure — 20 years per §1956 count
- CIMT / dishonesty conviction — deportability and inadmissibility
- Professional-license revocation for CPAs, attorneys, real estate licensees, financial advisors
- Bank account closure and Currency Transaction Report (CTR) flagging bank-wide
Sentencing References
05 — Defense Strategies
How Rubin Law Defends PC §186.10 Money Laundering Charges
Rubin Law, P.C. attacks §186.10 through source-of-funds analysis and knowledge-element defense.
Clean Source of Funds
Reconstruct the source of every transaction — payroll, business revenue, gifts, loans, inheritance. Clean-source proof breaks the criminal-nexus element.
PC §186.10(a)
No Knowledge of Criminal Source
The knowledge prong requires actual knowledge or 'willful blindness.' Business context, ordinary-course transactions, and reliance on counsel/CPA defeat knowledge.
CALCRIM 2999
No Promoting Intent
The promoting prong requires specific intent to facilitate future criminal activity. Absent evidence of a plan or purpose, the prong fails.
PC §186.10(a)(1)
Not a 'Financial Institution' Transaction
Peer-to-peer cash transfers, personal loans, and non-institution transactions fall outside §186.10.
Fin. Code §5061 / PC §186.9
Aggregation Challenge
Rebut the 7/30-day aggregate — properly separated, business transactions may not exceed the threshold in any statutory window.
PC §186.10(a)
Franks / Suppression of Bank Records
Attack bank-records subpoenas, SAR/CTR filings, and evidence obtained without proper authority.
PC §1538.5 / Franks v. Delaware (1978)
Selective Amnesty / Cooperation Agreement
In multi-defendant cases, cooperation agreements with the DA or US Attorney can eliminate §186.10 exposure entirely.
PC §1170.7 / §1385
Constitutional Sources
07 — Court Process
How PC §186.10 Money Laundering Cases Move Through Los Angeles Courts
PC §186.10 cases proceed through the following stages.
- 1
Step 1 — Investigation
Cases originate from SAR/CTR bank filings, IRS-CI referrals, DEA/HSI joint task-force work, and civil litigation. Grand-jury subpoenas for bank records are common. Do not give voluntary statements without counsel.
- 2
Step 2 — Filing & Arraignment
Felony filings begin in the criminal courthouse. Bail is set based on aggregate value laundered and flight risk. Parallel federal filings are common — federal charging typically pauses the state prosecution.
- 3
Step 3 — Discovery & Forensic Accounting
Bank records, wire logs, corporate books, and tax filings drive the case. Rubin Law engages forensic accountants and CPAs early to trace source of funds.
- 4
Step 4 — Preliminary Hearing
The People must show probable cause on each element — including value threshold and mental state. Defense often litigates aggregation and knowledge at prelim.
- 5
Step 5 — Motion Practice
PC §995 (dismiss), §1538.5 (suppress bank records), Serna (speedy trial), Pitchess (officer credibility on financial-crime unit testimony).
- 6
Step 6 — Resolution
Outcomes range from dismissal after clean-source proof, to non-CIMT plea alternatives, to §186.11 forfeiture-focused resolutions that avoid custody. Restitution is nearly always a condition.
Los Angeles Courts That Handle PC §186.10 Money Laundering Cases
PC §186.10 cases are filed in the felony courthouse for the county of arrest.
Clara Shortridge Foltz Criminal Justice Center
Central LA — largest felony calendar and specialized white-collar courtrooms.
Van Nuys Courthouse East
San Fernando Valley financial-crimes filings.
Long Beach Courthouse
South Bay filings.
Pomona Courthouse South
Eastern LA County filings.
Airport Courthouse
West LA / LAX area filings.
Reviewed by Your Attorney
Daniel S. Rubin — Los Angeles Money Laundering Defense Attorney
Daniel S. Rubin has defended clients charged with money laundering and related offenses in Los Angeles County courts — including Clara Shortridge Foltz, Van Nuys, Compton, and Pomona. He understands that these cases are won in the details: the suppression hearing that eliminates key evidence, the preliminary hearing cross-examination that exposes a weak witness, the penalty phase argument that keeps a client out of the worst outcome.
This page was written and reviewed by Daniel A. Rubin, Los Angeles criminal defense attorney, CA State Bar 302093, with 10+ years of experience defending clients charged under PC §186.10 in Los Angeles County. Last reviewed: July 2026.
CA Bar 302093 | Whittier Law School | Rising Star — Super Lawyers 2019–2023 | Money Laundering Cases Throughout LA County
09 — FAQs
PC §186.10 Money Laundering Questions — Los Angeles
What is PC §186.10?
PC §186.10 is California's state money-laundering statute. It punishes conducting monetary transactions through a financial institution above statutory thresholds ($5,000 in 7 days or $25,000 in 30 days) with either the intent to promote criminal activity or knowledge that the funds derive from criminal activity. Base penalty is 16 months, 2, or 3 years state prison plus consecutive value-based enhancements.
What are the value-based enhancements?
PC §186.10(c) adds consecutive terms based on the aggregate value laundered: +1 year for over $50,000, +2 years for over $150,000, +3 years for over $1,000,000, and +4 years for over $2,500,000. Maximum §186.10 exposure is 7 years (3-year high + 4-year enhancement).
Is PC §186.10 a strike?
No. §186.10 is not a serious or violent felony under PC §667.5(c) or §1192.7(c). It is not a strike. It is, however, a CIMT and a crime of dishonesty with immigration consequences.
Can §186.10 be resolved without prison?
Yes — probation is discretionary. Where clean-source proof is strong or the case is resolvable via forfeiture and restitution, non-custodial dispositions are achievable. Rubin Law focuses on early forensic-accounting engagement and disgorgement negotiation to eliminate custody.
How does §186.10 differ from federal money laundering?
Federal money laundering under 18 U.S.C. §1956 has no numerical threshold, applies to any transaction with the requisite mental state, and carries up to 20 years per count. §1957 covers transactions over $10,000 involving criminal proceeds. State and federal filings are often parallel; federal prosecution typically preempts state.
Does §186.10 apply to cryptocurrency?
Yes — cryptocurrency exchanges and wallet providers registered as money-transmitters are 'financial institutions' under Fin. Code §5061 for §186.10 purposes. Peer-to-peer crypto transfers may fall outside, but exchange-mediated transactions above threshold trigger §186.10 like any other financial-institution transaction.
What triggers asset forfeiture?
PC §186.10 filings almost always trigger companion forfeiture proceedings under PC §186.11 (aggravated white-collar) and PC §186.2 (criminal profiteering). All traceable proceeds — accounts, real property, vehicles, luxury goods — are subject to forfeiture. Rubin Law defends both the criminal and civil forfeiture proceedings.
Is §186.10 deportable?
Yes. §186.10 is a CIMT and a crime of dishonesty — deportable under 8 U.S.C. §1227(a)(2)(A)(i). Where the value laundered supports it, §186.10 can also qualify as an aggravated felony under §1101(a)(43)(D). Where a plea is unavoidable, Rubin Law structures dispositions to avoid or minimize immigration prejudice.
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Charged With Money Laundering Under PC §186.10?
Value enhancements can push exposure to 7 years plus forfeiture. Rubin Law, P.C. runs the forensic-accounting defense state-wide and coordinates with federal counsel.