The 2.73.2 Money Laundering “Sting” Concealing Purported Proceeds of Illegal Activity / 18 U.S.C. Sec. 1956(a)(3)(B) is a federal law that prohibits individuals from engaging in a “sting” operation to hide the proceeds of illegal activity. A “sting” is defined as any transaction or series of transactions designed to disguise the source or nature of the proceeds of an illegal activity. This law applies to any attempt to launder money, whether it is through an individual, corporation, or other entity. The types of money laundering “stings” prohibited by this law include, but are not limited to: concealing the source of money obtained from illegal activities; using funds derived from illegal activities to purchase goods or services; attempting to disguise the true ownership of assets obtained through illegal activities; or transferring money from the proceeds of illegal activities to a third party. This law also prohibits individuals from using third parties to conceal the true ownership of assets from the proceeds of illegal activities. Penalties for violating this law depend on the amount of money involved in the transaction. Individuals who commit money laundering “sting” concealment of illegal activity can face up to 20 years in prison and a fine of up to $500,000 or twice the amount of money involved in the transaction, whichever is greater.