Texas cleans up money laundering.

• Position: Comprehensive legislation to crack down on laundering illegal drug money adopted - On First Reading

Texas last year joined 27 other states with similar laws when it adopted comprehensive legislation to crack down on laundering illegal drug money.

It is estimated that $150 billion annually from illegal drug sales across the nation is converted through accountants, bankers and lawyers to seemingly legitimate assets that can be spent without raising questions about the exact source of the funds. Federal law and many state statutes require reports on transactions involving more than $10,000, and money launderers must find ways to circumvent these requirements.

The Texas law is one of the toughest when it comes to prison time, according to sponsor Representative Henry Cuellar. A person convicted of laundering from $3,000 to $20,000, a third degree felony, can serve from two to 10 years in jail. Laundering $20,000 to $100,000 in drug money is a second degree felony punishable by a sentence of from two to 20 years. Conviction of laundering sums of $100,000 or more could result in a first degree felony conviction with a sentence of from five to 99 years to life in prison.

The legislation criminalizes receipt...