S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    598
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 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:
 
   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. §§ 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
 INCLUDE  ANY  TRANSACTION  INVOLVING BONA FIDE PAYMENTS TO ATTORNEYS FOR
 LEGAL SERVICES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01134-01-9

 S. 598                              2
 
   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.
   §  2.  The  penal  law  is amended by adding four new sections 470.30,
 470.31, 470.32 and 470.33 to read as follows:
 § 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. §§ 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.
 § 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.
 § 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.
 § 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.
   §  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

 S. 598                              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.
   § 4. Section 470.25 of the penal law, as amended by chapter 489 of the
 laws of 2000, is amended to read as follows:
 § 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.
   §  5.  Paragraph  (a)  of subdivision 1 of section 460.10 of the penal
 law, as amended by chapter 189 of the laws of 2018, 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,

 S. 598                              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; 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; section 230.34-a relating to sex traffick-
 ing of a child; 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 weapons; 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 TRANSACTIONS; or
   § 6. This act shall take effect on the first of November next succeed-
 ing the date upon which it shall have become a law.