S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7529
                                   I N  S E N A T E
                                     May 15, 2014
                                      ___________
       Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
         printed to be committed to the Committee on Codes
       AN ACT to amend the penal  law,  in  relation  to  establishing  certain
         offenses relating to structuring and money laundering
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 470.00 of the penal law is amended by adding  three
    2  new subdivisions 11, 12 and 13 to read as follows:
    3    11.  "STRUCTURES"  FOR  PURPOSES OF SECTIONS 470.30 AND 470.31 OF THIS
    4  ARTICLE, A PERSON STRUCTURES A TRANSACTION  WHEN,  WITH  THE  INTENT  TO
    5  EVADE  ANY REPORTING REQUIREMENT UNDER THE NEW YORK STATE BANKING LAW OR
    6  31 U.S.C. SS 5311 THROUGH 5326, OR ANY REGULATION PRESCRIBED THEREUNDER,
    7  HE OR SHE CONDUCTS OR ATTEMPTS TO CONDUCT ONE  OR  MORE  RELATED  TRANS-
    8  ACTIONS  IN  CURRENCY,  IN ANY AMOUNT, WITH ONE OR MORE FINANCIAL INSTI-
    9  TUTIONS, ON ONE OR MORE DAYS. STRUCTURING INCLUDES, BUT IS  NOT  LIMITED
   10  TO, THE BREAKING DOWN OF A SINGLE SUM OF CURRENCY EXCEEDING TEN THOUSAND
   11  DOLLARS  INTO  SMALLER  SUMS,  INCLUDING  SUMS  AT OR BELOW TEN THOUSAND
   12  DOLLARS, OR THE CONDUCT OF A TRANSACTION, OR SERIES OF  CURRENCY  TRANS-
   13  ACTIONS,  INCLUDING  TRANSACTIONS  AT OR BELOW TEN THOUSAND DOLLARS. THE
   14  TRANSACTION OR TRANSACTIONS NEED NOT  EXCEED  THE  TEN  THOUSAND  DOLLAR
   15  REPORTING THRESHOLD AT ANY SINGLE FINANCIAL INSTITUTION OR ON ANY SINGLE
   16  DAY IN ORDER TO CONSTITUTE STRUCTURING.
   17    12.  "MONETARY  TRANSACTION"  MEANS  A  DEPOSIT,  WITHDRAWAL, TRANSFER
   18  BETWEEN ACCOUNTS, EXCHANGE  OF  CURRENCY,  LOAN,  EXTENSION  OF  CREDIT,
   19  PURCHASE  OR  SALE  OF ANY STOCK, BOND, CERTIFICATE OF DEPOSIT, OR OTHER
   20  MONETARY INSTRUMENT, USE OF A SAFE DEPOSIT BOX, OR  ANY  OTHER  PAYMENT,
   21  TRANSFER,  OR  DELIVERY  BY,  THROUGH, OR TO A FINANCIAL INSTITUTION, BY
   22  WHATEVER MEANS EFFECTED, EXCEPT THAT "MONETARY  TRANSACTION"  SHALL  NOT
   23  INCLUDE  ANY  TRANSACTION  INVOLVING BONA FIDE PAYMENTS TO ATTORNEYS FOR
   24  LEGAL SERVICES.
   25    13. "PROPERTY DERIVED FROM SPECIFIED CRIMINAL CONDUCT" MEANS ANY PROP-
   26  ERTY CONSTITUTING, OR  DERIVED  FROM,  PROCEEDS  OF  SPECIFIED  CRIMINAL
   27  CONDUCT, AND NEED NOT EXCLUSIVELY CONSTITUTE OR BE DERIVED FROM PROCEEDS
   28  OF SPECIFIED CRIMINAL CONDUCT.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15163-01-4
       S. 7529                             2
    1    S  2.  The  penal  law  is amended by adding four new sections 470.30,
    2  470.31, 470.32 and 470.33 to read as follows:
    3  S 470.30 STRUCTURING IN THE SECOND DEGREE.
    4    A  PERSON IS GUILTY OF STRUCTURING IN THE SECOND DEGREE WHEN, WITH THE
    5  INTENT TO EVADE ANY REPORTING REQUIREMENT UNDER THE NEW YORK STATE BANK-
    6  ING LAW OR 31 U.S.C. SS 5311 THROUGH 5326, OR ANY REGULATION  PRESCRIBED
    7  THEREUNDER, HE OR SHE STRUCTURES ONE OR MORE TRANSACTIONS.
    8    STRUCTURING IN THE SECOND DEGREE IS A CLASS E FELONY.
    9  S 470.31 STRUCTURING IN THE FIRST DEGREE.
   10    A  PERSON  IS GUILTY OF STRUCTURING IN THE FIRST DEGREE WHEN HE OR SHE
   11  COMMITS THE CRIME OF STRUCTURING IN  THE  SECOND  DEGREE  AND:  (1)  THE
   12  CONDUCT IS COMMITTED WITH AN INTENT TO COMMIT ANOTHER CRIME OR TO AID OR
   13  CONCEAL  THE  COMMISSION OF ANOTHER CRIME; OR (2) THE AGGREGATE VALUE OF
   14  THE CURRENCY REPORTED OR THE CURRENCY THAT  SHOULD  HAVE  BEEN  REPORTED
   15  EXCEEDS ONE HUNDRED THOUSAND DOLLARS IN ANY TWELVE-MONTH PERIOD.
   16    STRUCTURING IN THE FIRST DEGREE IS A CLASS D FELONY.
   17  S 470.32 CRIMINAL MONETARY TRANSACTION IN THE SECOND DEGREE.
   18    A  PERSON  IS GUILTY OF ENGAGING IN A CRIMINAL MONETARY TRANSACTION IN
   19  THE SECOND DEGREE WHEN HE OR SHE KNOWINGLY ENGAGES OR ATTEMPTS TO ENGAGE
   20  IN A MONETARY TRANSACTION IN PROPERTY DERIVED FROM CRIMINAL CONDUCT WITH
   21  A VALUE GREATER THAN TWENTY THOUSAND DOLLARS AND THE PROPERTY IS DERIVED
   22  FROM SPECIFIED CRIMINAL CONDUCT.
   23    CRIMINAL MONETARY TRANSACTION IN THE SECOND DEGREE IS A CLASS E  FELO-
   24  NY.
   25  S 470.33 CRIMINAL MONETARY TRANSACTION IN THE FIRST DEGREE.
   26    A  PERSON  IS GUILTY OF ENGAGING IN A CRIMINAL MONETARY TRANSACTION IN
   27  THE FIRST DEGREE WHEN HE OR SHE KNOWINGLY ENGAGES OR ATTEMPTS TO  ENGAGE
   28  IN A MONETARY TRANSACTION IN PROPERTY DERIVED FROM CRIMINAL CONDUCT WITH
   29  A  VALUE GREATER THAN SIXTY THOUSAND DOLLARS AND THE PROPERTY IS DERIVED
   30  FROM SPECIFIED CRIMINAL CONDUCT.
   31    CRIMINAL MONETARY TRANSACTION IN THE FIRST DEGREE IS A CLASS D FELONY.
   32    S 3. Subdivision 3 of section 470.03 of the penal law, as  amended  by
   33  section  17  of  part  A of chapter 1 of the laws of 2004, is amended to
   34  read as follows:
   35    3. FOR PURPOSES OF SECTIONS 470.32 AND 470.33 OF THIS  ARTICLE,  MONE-
   36  TARY  TRANSACTIONS MAY BE CONSIDERED TOGETHER AND THE VALUE OF THE PROP-
   37  ERTY DERIVED FROM SPECIFIED CRIMINAL CONDUCT MAY BE AGGREGATED, PROVIDED
   38  THAT THE MONETARY TRANSACTIONS ARE ALL PART OF A SINGLE "CRIMINAL TRANS-
   39  ACTION" AS DEFINED IN SUBDIVISION TWO OF SECTION 40.10 OF  THE  CRIMINAL
   40  PROCEDURE LAW.
   41    4.  Nothing  in  sections  470.05,  470.21, 470.22, 470.23 and 470.24;
   42  paragraph (b) of subdivision one, paragraph (b) of subdivision  two  and
   43  paragraph  (b)  of subdivision three of section 470.10; paragraph (b) of
   44  subdivision one, paragraph (b) of subdivision two and paragraph  (b)  of
   45  subdivision  three  of section 470.15; [or] paragraph (b) of subdivision
   46  one and paragraph (b) of subdivision two of section 470.20;  OR  SECTION
   47  470.32  OR  SECTION  470.33  of  this  article shall make it unlawful to
   48  return funds held in escrow:
   49    (a) as a portion of a purchase price for real property pursuant  to  a
   50  contract of sale; or
   51    (b)  to  satisfy the tax or other lawful obligations arising out of an
   52  administrative or judicial proceeding concerning the person who provided
   53  the escrow funds.
   54    S 4. Section 470.25 of the penal law, as amended by chapter 489 of the
   55  laws of 2000, is amended to read as follows:
   56  S 470.25 Money laundering AND CRIMINAL MONETARY TRANSACTIONS; fines.
       S. 7529                             3
    1    1. Any person convicted of a  violation  of  section  470.05,  470.10,
    2  470.15,  or 470.20 of this article may be sentenced to pay a fine not in
    3  excess of two times the value of the monetary instruments which are  the
    4  proceeds of specified criminal activity. When a fine is imposed pursuant
    5  to  this  subdivision, the court shall make a finding as to the value of
    6  such monetary instrument or instruments. If the record does not  contain
    7  sufficient  evidence  to  support such a finding the court may conduct a
    8  hearing upon the issue. In imposing a fine, the court shall consider the
    9  seriousness of the conduct, whether the amount of the fine is dispropor-
   10  tionate to the conduct in which he engaged, its impact  on  victims,  as
   11  well  as  the  economic circumstances of the convicted person, including
   12  the effect of the imposition of such a fine upon his immediate family.
   13    2. ANY PERSON CONVICTED OF A VIOLATION OF SECTION 470.32 OR 470.33  OF
   14  THIS  ARTICLE  MAY BE SENTENCED TO PAY A FINE NOT IN EXCESS OF TWO TIMES
   15  THE VALUE OF THE MONETARY TRANSACTION WHICH IS THE PROCEEDS OF SPECIFIED
   16  CRIMINAL CONDUCT. WHEN A FINE IS IMPOSED PURSUANT TO  THIS  SUBDIVISION,
   17  THE  COURT  SHALL MAKE A FINDING AS TO THE VALUE OF SUCH MONETARY TRANS-
   18  ACTION. IF THE RECORD DOES NOT CONTAIN SUFFICIENT  EVIDENCE  TO  SUPPORT
   19  SUCH A FINDING THE COURT MAY CONDUCT A HEARING UPON THE ISSUE. IN IMPOS-
   20  ING  A  FINE,  THE  COURT SHALL CONSIDER THE SERIOUSNESS OF THE CONDUCT,
   21  WHETHER THE AMOUNT OF THE FINE IS DISPROPORTIONATE  TO  THE  CONDUCT  IN
   22  WHICH HE ENGAGED, ITS IMPACT ON VICTIMS, AS WELL AS THE ECONOMIC CIRCUM-
   23  STANCES  OF THE CONVICTED PERSON, INCLUDING THE EFFECT OF THE IMPOSITION
   24  OF SUCH A FINE UPON HIS IMMEDIATE FAMILY.
   25    3. The imposition of a  fine  pursuant  to  subdivision  one  of  this
   26  section or paragraph b of subdivision one of section 80.00 of this chap-
   27  ter,  shall  preclude  the  imposition of any other order or judgment of
   28  forfeiture or fine based upon the same criminal conduct.
   29    S 5. Paragraph (a) of subdivision 1 of section  460.10  of  the  penal
   30  law,  as  amended  by section 16 of subpart A of part H of chapter 55 of
   31  the laws of 2014, is amended to read as follows:
   32    (a) Any of the felonies set forth in this  chapter:  sections  120.05,
   33  120.10 and 120.11 relating to assault; sections 121.12 and 121.13 relat-
   34  ing  to  strangulation;  sections 125.10 to 125.27 relating to homicide;
   35  sections 130.25, 130.30 and 130.35 relating to rape; sections 135.20 and
   36  135.25 relating to kidnapping; section 135.35 relating  to  labor  traf-
   37  ficking;  section  135.65  relating to coercion; sections 140.20, 140.25
   38  and 140.30 relating to burglary;  sections  145.05,  145.10  and  145.12
   39  relating  to  criminal  mischief;  article one hundred fifty relating to
   40  arson; sections 155.30, 155.35, 155.40  and  155.42  relating  to  grand
   41  larceny;  sections  177.10, 177.15, 177.20 and 177.25 relating to health
   42  care fraud; article one hundred  sixty  relating  to  robbery;  sections
   43  165.45,  165.50,  165.52  and  165.54 relating to criminal possession of
   44  stolen property; sections 165.72 and 165.73 relating to trademark  coun-
   45  terfeiting;  sections 170.10, 170.15, 170.25, 170.30, 170.40, 170.65 and
   46  170.70 relating to forgery; sections 175.10, 175.25, 175.35, 175.40  and
   47  210.40 relating to false statements; sections 176.15, 176.20, 176.25 and
   48  176.30  relating to insurance fraud; sections 178.20 and 178.25 relating
   49  to criminal diversion of  prescription  medications  and  prescriptions;
   50  sections 180.03, 180.08, 180.15, 180.25, 180.40, 180.45, 200.00, 200.03,
   51  200.04,  200.10, 200.11, 200.12, 200.20, 200.22, 200.25, 200.27, 200.56,
   52  215.00, 215.05 and 215.19 RELATING TO BRIBERY; sections 187.10,  187.15,
   53  187.20  and  187.25  relating  to  residential  mortgage fraud, sections
   54  190.40 and 190.42 relating to criminal usury; section 190.65 relating to
   55  schemes to defraud; any felony defined in article four  hundred  ninety-
   56  six;  sections  205.60  and  205.65  relating  to hindering prosecution;
       S. 7529                             4
    1  sections 210.10, 210.15, and 215.51 relating to  perjury  and  contempt;
    2  section  215.40  relating  to tampering with physical evidence; sections
    3  220.06, 220.09, 220.16, 220.18, 220.21, 220.31, 220.34, 220.39,  220.41,
    4  220.43,  220.46,  220.55,  220.60  and  220.77  relating  to  controlled
    5  substances; sections 225.10 and 225.20 relating  to  gambling;  sections
    6  230.25,  230.30,  and 230.32 relating to promoting prostitution; section
    7  230.34 relating to sex trafficking; sections 235.06, 235.07, 235.21  and
    8  235.22  relating  to  obscenity;  sections 263.10 and 263.15 relating to
    9  promoting a sexual performance by  a  child;  sections  265.02,  265.03,
   10  265.04,  265.11,  265.12,  265.13  and  the provisions of section 265.10
   11  which constitute a felony relating to firearms and other dangerous weap-
   12  ons; sections 265.14 and 265.16 relating to criminal sale of a  firearm;
   13  section  275.10,  275.20,  275.30,  or  275.40  relating to unauthorized
   14  recordings; and sections 470.05, 470.10, 470.15 and 470.20  relating  to
   15  money  laundering;  SECTIONS  470.30 AND 470.31 RELATING TO STRUCTURING;
   16  AND SECTIONS 470.32 AND 470.33  RELATING  TO  CRIMINAL  MONETARY  TRANS-
   17  ACTIONS; or
   18    S 6. This act shall take effect on the first of November next succeed-
   19  ing the date upon which this act shall have become a law.