Amd S650, Bank L; amd S470.00, Pen L; amd S30.10, CP L
Relates to clarifying the definitions of "illegal money transmission" and "money laundering"; relates to penalties for unlicensed money transmitters; relates to timeliness of prosecutions.
STATE OF NEW YORK
________________________________________________________________________
258--A
2009-2010 Regular Sessions
IN ASSEMBLY(Prefiled)
January 7, 2009
___________
Introduced by M. of A. PERALTA, ESPAILLAT, HOOPER, FINCH -- Multi-Spon-
sored by -- M. of A. ALFANO, BARRA, PHEFFER, ROBINSON -- read once
and referred to the Committee on Banks -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the banking law, in relation to clarifying the defi-
nition of illegal money transmission and increasing the penalties for
certain activities by licensed and unlicensed money transmitters; to
amend the penal law, in relation to the definition of money launder-
ing; and to amend the criminal procedure law, in relation to timeli-
ness of prosecutions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 650 of the banking law, as amended
2 by chapter 201 of the laws of 1969, is amended to read as follows:
3 1. [Any person who violates or participates in the violation of any
4 provisions of this article, or who knowingly makes any incorrect state-
5 ment of a material fact in any application, report or statement made
6 pursuant to this article, or who knowingly omits to state any material
7 fact necessary to give the superintendent any information lawfully
8 required by him or refuses to permit any lawful investigation by the
9 superintendent shall be guilty of a misdemeanor and, upon conviction,
10 shall be fined not more than five hundred dollars or imprisoned for not
11 more than six months or both, in the discretion of the court]a. Any
12 person, whether a licensee, agent or any other person, who knowingly
13 makes any false statement, misrepresentation or false certification in
14 any application, financial statement, account record, customer receipt,
15 report or other document filed or required to be maintained or filed
16 under this article, or who knowingly makes any false entry or omits a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00086-02-9
A. 258--A 2
1 material entry in any such document, shall be guilty of a class E felo-
2 ny.
3 b. Any licensee or agent who:
4 (1) receives money for transmitting or transmits the same, knowing
5 such money to be the proceeds of or derived from any criminal conduct;
6 or
7 (2) sells or issues New York instruments or New York traveler's checks
8 as those terms are defined by section six hundred fifty-three of this
9 chapter, knowing such instruments or checks to be purchased with the
10 proceeds of or derived from any criminal conduct, shall be guilty of a
11 class E felony.
12 § 2. Paragraph a and subparagraphs 1, 2 and 4 of paragraph b of subdi-
13 vision 2 of section 650 of the banking law, as amended by chapter 543 of
14 the laws of 1990, are amended to read as follows:
15 a. Any person who either (1) engages in the business of receiving
16 money for transmission or transmitting the same or (2) sells or issues
17 New York instruments or New York traveler's checks as those terms are
18 defined by section six hundred fifty-three of this chapter, without a
19 license therefor obtained from the superintendent or without having been
20 designated or appointed as an agent as provided in this article, shall
21 be guilty of a [Class A misdemeanor] class D felony.
22 (1) knowingly receives or agrees to receive for transmission from one
23 or more [individuals] persons a total of ten thousand dollars or more in
24 a single transaction, a total of twenty-five thousand dollars or more
25 during a period of thirty days or less, or a total of two hundred fifty
26 thousand dollars or more during a period of one year or less; or
27 (2) knowingly sells or issues New York instruments or New York travel-
28 er's checks to one or more [individuals] persons totaling ten thousand
29 dollars or more in a single transaction, a total of twenty-five thousand
30 dollars or more during a period of thirty days or less, or a total of
31 two hundred fifty thousand dollars or more during a period of one year
32 or less; or
33 (4) knowingly sells or issues New York instruments or New York travel-
34 er's checks as those terms are defined by section six hundred fifty-
35 three of this chapter, knowing such instruments or checks to be
36 purchased with the proceeds of or derived from any criminal conduct;
37 shall be guilty of a class [E] C felony.
38 § 3. Subdivision 5 of section 470.00 of the penal law, as amended by
39 chapter 489 of the laws of 2000, is amended to read as follows:
40 5. "Specified criminal conduct" means criminal conduct committed in
41 this state constituting a criminal act, as the term criminal act is
42 defined in section 460.10 of this chapter, or constituting the crime of
43 enterprise corruption, as defined in section 460.20 of this chapter,
44 constituting violations of sections six hundred seventy-two and six
45 hundred seventy-three of the banking law, or conduct committed in any
46 other jurisdiction which is or would be specified criminal conduct if
47 committed in this state.
48 § 4. Subdivision 3 of section 30.10 of the criminal procedure law is
49 amended by adding a new paragraph (h) to read as follows:
50 (h) A prosecution for any crime defined under article twelve-D, thir-
51 teen-B or thirteen-D of the banking law, or under article one hundred
52 fifty-five, one hundred seventy, one hundred seventy-five, one hundred
53 seventy-six, one hundred eighty, one hundred eighty-five, one hundred
54 eighty-seven, one hundred ninety, two hundred, two hundred ten, or four
55 hundred seventy of the penal law insofar as it relates to persons and
56 entities that are licensed, registered, or incorporated or otherwise
A. 258--A 3
1 formed pursuant to the banking law, or persons in their capacity as
2 directors, officers, managers, or employees or persons or entities that
3 control, as such term is defined in section one hundred forty-three-b of
4 the banking law with respect to banking institutions, any such persons
5 or entities that are licensed, registered, or incorporated or otherwise
6 formed pursuant to the banking law, may be commenced within ten years
7 after the commission thereof.
8 § 5. This act shall take effect immediately; provided, however, that
9 the provisions of section four of this act shall only apply to crimes
10 committed after such effective date.
