Bill Text: NY S04921 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to clarifying the definitions of "illegal money transmission" and "money laundering"; relates to penalties for unlicensed money transmitters; relates to timeliness of prosecutions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-29 - REFERRED TO BANKS [S04921 Detail]

Download: New_York-2019-S04921-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4921
                               2019-2020 Regular Sessions
                    IN SENATE
                                     March 29, 2019
                                       ___________
        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed 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:
     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  who  knowingly  makes  any false statement, misrepresentation or
    13  false certification in any  application,  financial  statement,  account
    14  record,  customer receipt, report or other document filed or required to
    15  be maintained or filed under this article, or who  knowingly  makes  any
    16  false entry or omits a material entry in any such document or refuses to
    17  permit  any  lawful investigation by the superintendent, shall be guilty
    18  of a class E felony.
    19    b. Any licensee or agent who:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10285-01-9

        S. 4921                             2
     1    (1) receives money for transmitting or  transmits  the  same,  knowing
     2  such  money  to be the proceeds of or derived from any criminal conduct;
     3  or
     4    (2) sells or issues New York instruments or New York traveler's checks
     5  as  those  terms  are defined by section six hundred fifty-three of this
     6  chapter, knowing such instruments or checks to  be  purchased  with  the
     7  proceeds  of  or derived from any criminal conduct, shall be guilty of a
     8  class E felony.
     9    § 2. Paragraph a and subparagraphs 1, 2 and 4 of paragraph b of subdi-
    10  vision 2 of section 650 of the banking law, as amended by chapter 543 of
    11  the laws of 1990, are amended to read as follows:
    12    a. Any person who either (1) engages  in  the  business  of  receiving
    13  money  for  transmission or transmitting the same or (2) sells or issues
    14  New York instruments or New York traveler's checks as  those  terms  are
    15  defined  by  section  six hundred fifty-three of this chapter, without a
    16  license therefor obtained from the superintendent or without having been
    17  designated or appointed as an agent of a licensee as  provided  in  this
    18  article, shall be guilty of a [Class A misdemeanor] class D felony.
    19    (1)  knowingly receives or agrees to receive for transmission from one
    20  or more [individuals] persons a total of ten thousand dollars or more in
    21  a single transaction, a total of twenty-five thousand  dollars  or  more
    22  during  a period of thirty days or less, or a total of two hundred fifty
    23  thousand dollars or more during a period of one year or less; or
    24    (2) knowingly sells or issues New York instruments or New York travel-
    25  er's checks to one or more [individuals] persons totaling  ten  thousand
    26  dollars or more in a single transaction, a total of twenty-five thousand
    27  dollars  or  more  during a period of thirty days or less, or a total of
    28  two hundred fifty thousand dollars or more during a period of  one  year
    29  or less; or
    30    (4) knowingly sells or issues New York instruments or New York travel-
    31  er's  checks  as  those  terms are defined by section six hundred fifty-
    32  three of  this  chapter,  knowing  such  instruments  or  checks  to  be
    33  purchased  with  the  proceeds  of or derived from any criminal conduct;
    34  shall be guilty of a class [E] C felony.
    35    § 3. Subdivision 5 of section 470.00 of the penal law, as  amended  by
    36  chapter 489 of the laws of 2000, is amended to read as follows:
    37    5.  "Specified  criminal  conduct" means criminal conduct committed in
    38  this state constituting a criminal act, as  the  term  criminal  act  is
    39  defined  in  section 460.10 of this [chapter] title, or constituting the
    40  crime of enterprise corruption, as defined in  section  460.20  of  this
    41  [chapter]  title,  or  constituting  violations  of sections six hundred
    42  seventy-two and six hundred seventy-three of the banking law, or conduct
    43  committed in any other jurisdiction which is or would be specified crim-
    44  inal conduct if committed in this state.
    45    § 4. Subdivision 3 of section 30.10 of the criminal procedure  law  is
    46  amended by adding a new paragraph (h) to read as follows:
    47    (h)  A prosecution for any crime defined under article twelve-D, thir-
    48  teen-B or thirteen-D of the banking law, or under  article  one  hundred
    49  fifty-five,  one  hundred seventy, one hundred seventy-five, one hundred
    50  seventy-six, one hundred eighty, one hundred  eighty-five,  one  hundred
    51  eighty-seven,  one hundred ninety, two hundred, two hundred ten, or four
    52  hundred seventy of the penal law insofar as it relates  to  persons  and
    53  entities  that  are  licensed,  registered, or incorporated or otherwise
    54  formed pursuant to the banking law, or  persons  in  their  capacity  as
    55  directors,  officers, managers, or employees or persons or entities that
    56  control, as such term is defined in section one hundred forty-three-b of

        S. 4921                             3
     1  the banking law with respect to banking institutions, any  such  persons
     2  or  entities that are licensed, registered, or incorporated or otherwise
     3  formed pursuant to the banking law, may be commenced  within  ten  years
     4  after the commission thereof.
     5    §  5.  This act shall take effect immediately; provided, however, that
     6  the provisions of section four of this act shall only  apply  to  crimes
     7  committed after such effective date.
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