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

                                 5642--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              March 3, 2015
                               ___________

Introduced  by M. of A. QUART -- Multi-Sponsored by -- M. of A. SIMON --
  read once and referred to the Committee on Codes -- recommitted to the
  Committee on Codes in accordance with  Assembly  Rule  3,  sec.  2  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

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:

  Section 1. Section 470.00 of the penal law is amended by adding  three
new subdivisions 11, 12 and 13 to read as follows:
  11.  "STRUCTURES"  FOR  PURPOSES OF SECTIONS 470.30 AND 470.31 OF THIS
ARTICLE, A PERSON STRUCTURES A TRANSACTION  WHEN,  WITH  THE  INTENT  TO
EVADE  ANY REPORTING REQUIREMENT UNDER THE NEW YORK STATE BANKING LAW OR
31 U.S.C. SS 5311 THROUGH 5326, OR ANY REGULATION PRESCRIBED THEREUNDER,
HE OR SHE CONDUCTS OR ATTEMPTS TO CONDUCT ONE  OR  MORE  RELATED  TRANS-
ACTIONS  IN  CURRENCY,  IN ANY AMOUNT, WITH ONE OR MORE FINANCIAL INSTI-
TUTIONS, ON ONE OR MORE DAYS. STRUCTURING INCLUDES, BUT IS  NOT  LIMITED
TO, THE BREAKING DOWN OF A SINGLE SUM OF CURRENCY EXCEEDING TEN THOUSAND
DOLLARS  INTO  SMALLER  SUMS,  INCLUDING  SUMS  AT OR BELOW TEN THOUSAND
DOLLARS, OR THE CONDUCT OF A TRANSACTION, OR SERIES OF  CURRENCY  TRANS-
ACTIONS,  INCLUDING  TRANSACTIONS  AT OR BELOW TEN THOUSAND DOLLARS. THE
TRANSACTION OR TRANSACTIONS NEED NOT  EXCEED  THE  TEN  THOUSAND  DOLLAR
REPORTING THRESHOLD AT ANY SINGLE FINANCIAL INSTITUTION OR ON ANY SINGLE
DAY IN ORDER TO CONSTITUTE STRUCTURING.
  12.  "MONETARY  TRANSACTION"  MEANS  A  DEPOSIT,  WITHDRAWAL, TRANSFER
BETWEEN ACCOUNTS, EXCHANGE  OF  CURRENCY,  LOAN,  EXTENSION  OF  CREDIT,
PURCHASE  OR  SALE  OF ANY STOCK, BOND, CERTIFICATE OF DEPOSIT, OR OTHER
MONETARY INSTRUMENT, USE OF A SAFE DEPOSIT BOX, OR  ANY  OTHER  PAYMENT,
TRANSFER,  OR  DELIVERY  BY,  THROUGH, OR TO A FINANCIAL INSTITUTION, BY
WHATEVER MEANS EFFECTED, EXCEPT THAT "MONETARY  TRANSACTION"  SHALL  NOT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01867-04-6
              

A. 5642--A                          2

INCLUDE  ANY  TRANSACTION  INVOLVING BONA FIDE PAYMENTS TO ATTORNEYS FOR
LEGAL SERVICES.
  13. "PROPERTY DERIVED FROM SPECIFIED CRIMINAL CONDUCT" MEANS ANY PROP-
ERTY  CONSTITUTING,  OR  DERIVED  FROM,  PROCEEDS  OF SPECIFIED CRIMINAL
CONDUCT, AND NEED NOT EXCLUSIVELY CONSTITUTE OR BE DERIVED FROM PROCEEDS
OF SPECIFIED CRIMINAL CONDUCT.
  S 2. The penal law is amended by  adding  four  new  sections  470.30,
470.31, 470.32 and 470.33 to read as follows:
S 470.30 STRUCTURING IN THE SECOND DEGREE.
  A  PERSON IS GUILTY OF STRUCTURING IN THE SECOND DEGREE WHEN, WITH THE
INTENT TO EVADE ANY REPORTING REQUIREMENT UNDER THE NEW YORK STATE BANK-
ING LAW OR 31 U.S.C. SS 5311 THROUGH 5326, OR ANY REGULATION  PRESCRIBED
THEREUNDER, HE OR SHE STRUCTURES ONE OR MORE TRANSACTIONS.
  STRUCTURING IN THE SECOND DEGREE IS A CLASS E FELONY.
S 470.31 STRUCTURING IN THE FIRST DEGREE.
  A  PERSON  IS GUILTY OF STRUCTURING IN THE FIRST DEGREE WHEN HE OR SHE
COMMITS THE CRIME OF STRUCTURING IN  THE  SECOND  DEGREE  AND:  (1)  THE
CONDUCT IS COMMITTED WITH AN INTENT TO COMMIT ANOTHER CRIME OR TO AID OR
CONCEAL  THE  COMMISSION OF ANOTHER CRIME; OR (2) THE AGGREGATE VALUE OF
THE CURRENCY REPORTED OR THE CURRENCY THAT  SHOULD  HAVE  BEEN  REPORTED
EXCEEDS ONE HUNDRED THOUSAND DOLLARS IN ANY TWELVE-MONTH PERIOD.
  STRUCTURING IN THE FIRST DEGREE IS A CLASS D FELONY.
S 470.32 CRIMINAL MONETARY TRANSACTION IN THE SECOND DEGREE.
  A  PERSON  IS GUILTY OF ENGAGING IN A CRIMINAL MONETARY TRANSACTION IN
THE SECOND DEGREE WHEN HE OR SHE KNOWINGLY ENGAGES OR ATTEMPTS TO ENGAGE
IN A MONETARY TRANSACTION IN PROPERTY DERIVED FROM CRIMINAL CONDUCT WITH
A VALUE GREATER THAN TWENTY THOUSAND DOLLARS AND THE PROPERTY IS DERIVED
FROM SPECIFIED CRIMINAL CONDUCT.
  CRIMINAL MONETARY TRANSACTION IN THE SECOND DEGREE IS A CLASS E  FELO-
NY.
S 470.33 CRIMINAL MONETARY TRANSACTION IN THE FIRST DEGREE.
  A  PERSON  IS GUILTY OF ENGAGING IN A CRIMINAL MONETARY TRANSACTION IN
THE FIRST DEGREE WHEN HE OR SHE KNOWINGLY ENGAGES OR ATTEMPTS TO  ENGAGE
IN A MONETARY TRANSACTION IN PROPERTY DERIVED FROM CRIMINAL CONDUCT WITH
A  VALUE GREATER THAN SIXTY THOUSAND DOLLARS AND THE PROPERTY IS DERIVED
FROM SPECIFIED CRIMINAL CONDUCT.
  CRIMINAL MONETARY TRANSACTION IN THE FIRST DEGREE IS A CLASS D FELONY.
  S 3. Subdivision 3 of section 470.03 of the penal law, as  amended  by
section  17  of  part  A of chapter 1 of the laws of 2004, is amended to
read as follows:
  3. FOR PURPOSES OF SECTIONS 470.32 AND 470.33 OF THIS  ARTICLE,  MONE-
TARY  TRANSACTIONS MAY BE CONSIDERED TOGETHER AND THE VALUE OF THE PROP-
ERTY DERIVED FROM SPECIFIED CRIMINAL CONDUCT MAY BE AGGREGATED, PROVIDED
THAT THE MONETARY TRANSACTIONS ARE ALL PART OF A SINGLE "CRIMINAL TRANS-
ACTION" AS DEFINED IN SUBDIVISION TWO OF SECTION 40.10 OF  THE  CRIMINAL
PROCEDURE LAW.
  4.  Nothing  in  sections  470.05,  470.21, 470.22, 470.23 and 470.24;
paragraph (b) of subdivision one, paragraph (b) of subdivision  two  and
paragraph  (b)  of subdivision three of section 470.10; paragraph (b) of
subdivision one, paragraph (b) of subdivision two and paragraph  (b)  of
subdivision  three  of section 470.15; [or] paragraph (b) of subdivision
one and paragraph (b) of subdivision two of section 470.20;  OR  SECTION
470.32  OR  SECTION  470.33  of  this  article shall make it unlawful to
return funds held in escrow:
  (a) as a portion of a purchase price for real property pursuant  to  a
contract of sale; or

A. 5642--A                          3

  (b)  to  satisfy the tax or other lawful obligations arising out of an
administrative or judicial proceeding concerning the person who provided
the escrow funds.
  S 4. Section 470.25 of the penal law, as amended by chapter 489 of the
laws of 2000, is amended to read as follows:
S 470.25 Money laundering AND CRIMINAL MONETARY TRANSACTIONS; fines.
  1.  Any  person  convicted  of  a violation of section 470.05, 470.10,
470.15, or 470.20 of this article may be sentenced to pay a fine not  in
excess  of two times the value of the monetary instruments which are the
proceeds of specified criminal activity. When a fine is imposed pursuant
to this subdivision, the court shall make a finding as to the  value  of
such  monetary instrument or instruments. If the record does not contain
sufficient evidence to support such a finding the court  may  conduct  a
hearing upon the issue. In imposing a fine, the court shall consider the
seriousness of the conduct, whether the amount of the fine is dispropor-
tionate  to  the  conduct in which he engaged, its impact on victims, as
well as the economic circumstances of the  convicted  person,  including
the effect of the imposition of such a fine upon his immediate family.
  2.  ANY PERSON CONVICTED OF A VIOLATION OF SECTION 470.32 OR 470.33 OF
THIS ARTICLE MAY BE SENTENCED TO PAY A FINE NOT IN EXCESS OF  TWO  TIMES
THE VALUE OF THE MONETARY TRANSACTION WHICH IS THE PROCEEDS OF SPECIFIED
CRIMINAL  CONDUCT.  WHEN A FINE IS IMPOSED PURSUANT TO THIS SUBDIVISION,
THE COURT SHALL MAKE A FINDING AS TO THE VALUE OF SUCH  MONETARY  TRANS-
ACTION.  IF  THE  RECORD DOES NOT CONTAIN SUFFICIENT EVIDENCE TO SUPPORT
SUCH A FINDING THE COURT MAY CONDUCT A HEARING UPON THE ISSUE. IN IMPOS-
ING A FINE, THE COURT SHALL CONSIDER THE  SERIOUSNESS  OF  THE  CONDUCT,
WHETHER  THE  AMOUNT  OF  THE FINE IS DISPROPORTIONATE TO THE CONDUCT IN
WHICH HE ENGAGED, ITS IMPACT ON VICTIMS, AS WELL AS THE ECONOMIC CIRCUM-
STANCES OF THE CONVICTED PERSON, INCLUDING THE EFFECT OF THE  IMPOSITION
OF SUCH A FINE UPON HIS IMMEDIATE FAMILY.
  3.  The  imposition  of  a  fine  pursuant  to subdivision one of this
section or paragraph b of subdivision one of section 80.00 of this chap-
ter, shall preclude the imposition of any other  order  or  judgment  of
forfeiture or fine based upon the same criminal conduct.
  S  5.  Paragraph  (a)  of subdivision 1 of section 460.10 of the penal
law, as amended by chapter 368 of the laws of 2015, is amended  to  read
as follows:
  (a)  Any  of  the felonies set forth in this chapter: sections 120.05,
120.10 and 120.11 relating to assault; sections 121.12 and 121.13 relat-
ing to strangulation; sections 125.10 to 125.27  relating  to  homicide;
sections 130.25, 130.30 and 130.35 relating to rape; sections 135.20 and
135.25  relating  to  kidnapping; sections 135.35 and 135.37 relating to
labor trafficking; section 135.65 relating to coercion; sections 140.20,
140.25 and 140.30 relating to  burglary;  sections  145.05,  145.10  and
145.12 relating to criminal mischief; article one hundred fifty relating
to  arson;  sections 155.30, 155.35, 155.40 and 155.42 relating to grand
larceny; sections 177.10, 177.15, 177.20 and 177.25 relating  to  health
care  fraud;  article  one  hundred  sixty relating to robbery; sections
165.45, 165.50, 165.52 and 165.54 relating  to  criminal  possession  of
stolen  property; sections 165.72 and 165.73 relating to trademark coun-
terfeiting; sections 170.10, 170.15, 170.25, 170.30, 170.40, 170.65  and
170.70  relating to forgery; sections 175.10, 175.25, 175.35, 175.40 and
210.40 relating to false statements; sections 176.15, 176.20, 176.25 and
176.30 relating to insurance fraud; sections 178.20 and 178.25  relating
to  criminal  diversion  of  prescription medications and prescriptions;
sections 180.03, 180.08, 180.15, 180.25, 180.40, 180.45, 200.00, 200.03,

A. 5642--A                          4

200.04, 200.10, 200.11, 200.12, 200.20, 200.22, 200.25, 200.27,  200.56,
215.00,  215.05 and 215.19 RELATING TO BRIBERY; sections 187.10, 187.15,
187.20 and 187.25  relating  to  residential  mortgage  fraud,  sections
190.40 and 190.42 relating to criminal usury; section 190.65 relating to
schemes  to  defraud; any felony defined in article four hundred ninety-
six; sections 205.60  and  205.65  relating  to  hindering  prosecution;
sections  210.10,  210.15,  and 215.51 relating to perjury and contempt;
section 215.40 relating to tampering with  physical  evidence;  sections
220.06,  220.09, 220.16, 220.18, 220.21, 220.31, 220.34, 220.39, 220.41,
220.43, 220.46, 220.55, 220.60, 220.65 and 220.77 relating to controlled
substances; sections 225.10 and 225.20 relating  to  gambling;  sections
230.25,  230.30,  and 230.32 relating to promoting prostitution; section
230.34 relating to sex trafficking; sections 235.06, 235.07, 235.21  and
235.22  relating  to  obscenity;  sections 263.10 and 263.15 relating to
promoting a sexual performance by  a  child;  sections  265.02,  265.03,
265.04,  265.11,  265.12,  265.13  and  the provisions of section 265.10
which constitute a felony relating to firearms and other dangerous weap-
ons; sections 265.14 and 265.16 relating to criminal sale of a  firearm;
section  275.10,  275.20,  275.30,  or  275.40  relating to unauthorized
recordings; and sections 470.05, 470.10, 470.15 and 470.20  relating  to
money  laundering;  SECTIONS  470.30 AND 470.31 RELATING TO STRUCTURING;
AND SECTIONS 470.32 AND 470.33  RELATING  TO  CRIMINAL  MONETARY  TRANS-
ACTIONS; or
  S 6. This act shall take effect on the first of November next succeed-
ing  the  date upon which it shall have become a law; provided, however,
that if chapter 368 of the laws of 2015 shall have not taken  effect  on
or  before  such date then section five of this act shall take effect on
the same date and in the same manner as such chapter of the laws of 2015
takes effect.