S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8531

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              July 13, 2011
                               ___________

Introduced by M. of A. CRESPO -- read once and referred to the Committee
  on Banks

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:

  Section 1. Subdivision 1 of section 650 of the banking law, as amended
by chapter 201 of the laws of 1969, is amended to read as follows:
  1.  [Any  person  who violates or participates in the violation of any
provisions of this article, or who knowingly makes any incorrect  state-
ment  of  a  material  fact in any application, report or statement made
pursuant to this article, or who knowingly omits to state  any  material
fact  necessary  to  give  the  superintendent  any information lawfully
required by him or refuses to permit any  lawful  investigation  by  the
superintendent  shall  be  guilty of a misdemeanor and, upon conviction,
shall be fined not more than five hundred dollars or imprisoned for  not
more  than  six  months  or both, in the discretion of the court]A.  ANY
PERSON WHO KNOWINGLY MAKES ANY  FALSE  STATEMENT,  MISREPRESENTATION  OR
FALSE  CERTIFICATION  IN  ANY  APPLICATION, FINANCIAL STATEMENT, ACCOUNT
RECORD, CUSTOMER RECEIPT, REPORT OR OTHER DOCUMENT FILED OR REQUIRED  TO
BE  MAINTAINED  OR  FILED UNDER THIS ARTICLE, OR WHO KNOWINGLY MAKES ANY
FALSE ENTRY OR OMITS A MATERIAL ENTRY IN ANY SUCH DOCUMENT OR REFUSES TO
PERMIT ANY LAWFUL INVESTIGATION BY THE SUPERINTENDENT, SHALL  BE  GUILTY
OF A CLASS E FELONY.
  B. ANY LICENSEE OR AGENT WHO:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02212-01-1

A. 8531                             2
              

  (1)  RECEIVES  MONEY  FOR  TRANSMITTING OR TRANSMITS THE SAME, KNOWING
SUCH MONEY TO BE THE PROCEEDS OF OR DERIVED FROM ANY  CRIMINAL  CONDUCT;
OR
  (2) SELLS OR ISSUES NEW YORK INSTRUMENTS OR NEW YORK TRAVELER'S CHECKS
AS  THOSE  TERMS  ARE DEFINED BY SECTION SIX HUNDRED FIFTY-THREE OF THIS
CHAPTER, KNOWING SUCH INSTRUMENTS OR CHECKS TO  BE  PURCHASED  WITH  THE
PROCEEDS  OF  OR DERIVED FROM ANY CRIMINAL CONDUCT, SHALL BE GUILTY OF A
CLASS E FELONY.
  S 2. Paragraph a and subparagraphs 1, 2 and 4 of paragraph b of subdi-
vision 2 of section 650 of the banking law, as amended by chapter 543 of
the laws of 1990, are amended to read as follows:
  a. Any person who either (1) engages  in  the  business  of  receiving
money  for  transmission or transmitting the same or (2) sells or issues
New York instruments or New York traveler's checks as  those  terms  are
defined  by  section  six hundred fifty-three of this chapter, without a
license therefor obtained from the superintendent OR WITHOUT HAVING BEEN
DESIGNATED OR APPOINTED AS AN AGENT OF A LICENSEE as  provided  in  this
article, shall be guilty of a [Class A misdemeanor] CLASS D FELONY.
  (1)  knowingly receives or agrees to receive for transmission from one
or more [individuals] PERSONS a total of ten thousand dollars or more in
a single transaction, a total of twenty-five thousand  dollars  or  more
during  a period of thirty days or less, or a total of two hundred fifty
thousand dollars or more during a period of one year or less; or
  (2) knowingly sells or issues New York instruments or New York travel-
er's checks to one or more [individuals] PERSONS totaling  ten  thousand
dollars or more in a single transaction, a total of twenty-five thousand
dollars  or  more  during a period of thirty days or less, or a total of
two hundred fifty thousand dollars or more during a period of  one  year
or less; or
  (4) knowingly sells or issues New York instruments or New York travel-
er's  checks  as  those  terms are defined by section six hundred fifty-
three of  this  chapter,  knowing  such  instruments  or  checks  to  be
purchased  with  the  proceeds  of or derived from any criminal conduct;
shall be guilty of a class [E] C felony.
  S 3. Subdivision 5 of section 470.00 of the penal law, as  amended  by
chapter 489 of the laws of 2000, is amended to read as follows:
  5.  "Specified  criminal  conduct" means criminal conduct committed in
this state constituting a criminal act, as  the  term  criminal  act  is
defined  in  section 460.10 of this [chapter] TITLE, or constituting the
crime of enterprise corruption, as defined in  section  460.20  of  this
[chapter]  TITLE,  OR  CONSTITUTING  VIOLATIONS  OF SECTIONS SIX HUNDRED
SEVENTY-TWO AND SIX HUNDRED SEVENTY-THREE OF THE BANKING LAW, or conduct
committed in any other jurisdiction which is or would be specified crim-
inal conduct if committed in this state.
  S 4. Subdivision 3 of section 30.10 of the criminal procedure  law  is
amended by adding a new paragraph (h) to read as follows:
  (H)  A PROSECUTION FOR ANY CRIME DEFINED UNDER ARTICLE TWELVE-D, THIR-
TEEN-B OR THIRTEEN-D OF THE BANKING LAW, OR UNDER  ARTICLE  ONE  HUNDRED
FIFTY-FIVE,  ONE  HUNDRED SEVENTY, ONE HUNDRED SEVENTY-FIVE, ONE HUNDRED
SEVENTY-SIX, ONE HUNDRED EIGHTY, ONE HUNDRED  EIGHTY-FIVE,  ONE  HUNDRED
EIGHTY-SEVEN,  ONE HUNDRED NINETY, TWO HUNDRED, TWO HUNDRED TEN, OR FOUR
HUNDRED SEVENTY OF THE PENAL LAW INSOFAR AS IT RELATES  TO  PERSONS  AND
ENTITIES  THAT  ARE  LICENSED,  REGISTERED, OR INCORPORATED OR OTHERWISE
FORMED PURSUANT TO THE BANKING LAW, OR  PERSONS  IN  THEIR  CAPACITY  AS
DIRECTORS,  OFFICERS, MANAGERS, OR EMPLOYEES OR PERSONS OR ENTITIES THAT
CONTROL, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED FORTY-THREE-B OF

A. 8531                             3

THE BANKING LAW WITH RESPECT TO BANKING INSTITUTIONS, ANY  SUCH  PERSONS
OR  ENTITIES THAT ARE LICENSED, REGISTERED, OR INCORPORATED OR OTHERWISE
FORMED PURSUANT TO THE BANKING LAW, MAY BE COMMENCED  WITHIN  TEN  YEARS
AFTER THE COMMISSION THEREOF.
  S  5.  This act shall take effect immediately; provided, however, that
the provisions of section four of this act shall only  apply  to  crimes
committed after such effective date.