United States v. Santos (2005)

United States v. Santos (2005) was a Supreme Court case that addressed whether illegal proceeds from drug trafficking taxes qualify as "money" under federal money-laundering laws. The Court ruled they do not, because Congress only intended to cover criminally obtained money, not proceeds from illegal activity that were later taxed. This case clarified that proceeds from illegal activity, once taxed, are not subject to money laundering statutes, emphasizing the importance of the source of the funds over their current form.