Article 470: Money Laundering

In New York law, Article 470 refers to money laundering. If you have been charged with such an offense, you should contact a criminal defense attorney immediately.

The complete law is as follows:

NY PENAL LAW § 470.00

Definitions.

The following definitions are applicable to this article.

1. “Monetary instrument” means coin and currency of the United States or of any other country; personal checks; bank checks; traveler`s checks; money orders; and investment securities and negotiable instruments, in bearer form or otherwise, in such form that title thereto passes on delivery, except that “monetary instrument” shall not include payments to attorneys for legal services.

2. “Conducts” includes initiating, concluding or participating in initiating or concluding a transaction.

3. “Transaction” includes a payment, purchase, sale, loan, pledge, gift, transfer, or delivery, and with respect to a financial institution includes 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 “transaction” shall not include payments to attorneys for legal services.

4. “Criminal conduct” means conduct which is a crime under the laws of this state or conduct committed in any other jurisdiction which is or would be a crime under the laws of this state.

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, or constituting the crime of enterprise corruption, as defined in section 460.20 of this chapter, or conduct committed in any other jurisdiction which is or would be specified criminal conduct if committed in this state.

6. “Financial institution” means :

(a) an insured bank, as defined in section 3 (b) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(h);

(b) a commercial bank or trust company;

(d) an agency or branch of a foreign bank in the United States;

(e) a credit union;

(f) a thrift institution;

(g) a broker or dealer registered with the Securities and Exchange Commission under the Securities and Exchange Act of 1934, U.S.C. 78a et seq.;

(h) a broker or dealer in securities or commodities;

(i) an investment banker or investment company;

(j) a currency exchange;

(k) an issuer, redeemer, or cashier of travelers` checks, checks, money orders, or similar instruments;

(l) an operator of a credit card system;

(m) an insurance company;

(n) a dealer in precious metals, stones, or jewels;

(o) a pawnbroker;

(p) a loan or finance company;

(q) a travel agency;

(r) a person licensed to engage in the business of receiving money for transmission or transmitting the same by whatever means, or any other person engaged in such business as an agent of a licensee or engaged in such business without a license;

(s) a telegraph company;

(t) a business engaged in vehicle sales, including automobile, airplane and boat sales;

(u) persons involved in real estate closings and settlements;

(v) the United States Postal Service;

(w) an agency of the United States government or of a state or local government carrying out a duty or power of a business described in this subdivision;

(x) a casino, gambling casino, or gaming establishment with an annual gaming revenue of more than a million dollars which:

(i) is licensed as a casino, gambling casino or gaming establishment under the laws of any state or any political subdivision of any state; or

(ii) is an Indian gaming operation conducted under or pursuant to the Indian Gaming Regulatory Act other than an operation which is limited to class 1 gaming as defined in subdivision six of section four of such act; or

(y) any business or agency engaged in any activity which the superintendent of banks or the United States Secretary of the Treasury determines, by regulation, to be an activity which is similar to, related to, or a substitute for activity which any business as described in this subdivision is authorized to engage.

7. “Financial transaction” means a transaction involving:

(a) the movement of funds by wire or other means; or

(b) one or more monetary instruments; or

(d) the use of a financial institution.

8. “Represented” means any representation made by a law enforcement officer, or by another person at the direction of, or with the approval of, such law enforcement officer.

9. “Law enforcement officer” means any public servant, federal or state, who is authorized to conduct an investigation, prosecute or make an arrest for a criminal offense.

10. For the purpose of this article, each of the five counties in the city of New York shall be considered as a separate county.

NY PENAL LAW § 470.03

Money laundering: aggregation of value; other matters.

1. For purposes of subdivisions one and three of sections 470.05, 470.10, and 470.15 and for purposes of subdivisions one and two of section 470.20, of this article, financial transactions may be considered together and the value of the property involved may be aggregated, provided that the transactions are all part of a single “criminal transaction” as defined in subdivision two of section 40.10 of the criminal procedure law.

2. For purposes of subdivision two of sections 470.05, 470.10 and 470.15 of this article, separate occasions involving the transport, transmittal or transfer of monetary instruments may be considered together and the value of the monetary instruments involved may be aggregated, provided that the occasions are all part of a single “criminal transaction” as defined in subdivision two of section 40.10 of the criminal procedure law.

3. Nothing in section 470.05; 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 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

(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.

NY PENAL LAW § 470.05

Money laundering in the fourth degree.

A person is guilty of money laundering in the fourth degree when:

1. Knowing that the property involved in one or more financial transactions represents the proceeds of criminal conduct:

(a) he or she conducts one or more such financial transactions which in fact involve the proceeds of specified criminal conduct:

(i) With intent to:

(A) promote the carrying on of criminal conduct; or

(B) engage in conduct constituting a felony as set forth in section eighteen hundred two, eighteen hundred three, eighteen hundred four, eighteen hundred five, eighteen hundred seven or eighteen hundred eight of the tax law; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(b) The total value of the property involved in such financial transaction or transactions exceeds five thousand dollars; or

2. Knowing that one or more monetary instruments represents the proceeds of criminal conduct:

(a) he or she transports, transmits, or transfers on one or more occasions, monetary instruments which in fact represent the proceeds of specified criminal conduct:

(i) With intent to promote the carrying on of criminal conduct; or

(ii) Knowing that such transportation, transmittal, or transfer is designed in whole or in part to:

(A) conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(b) The total value of such monetary instrument or instruments exceeds ten thousand dollars; or

3. He or she conducts one or more financial transactions:

(a) involving property represented to be the proceeds of specified criminal conduct, or represented to be property used to conduct or facilitate specified criminal conduct, with intent to:

(i) promote the carrying on of specified criminal conduct; or

(ii) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or

(iii) avoid any transaction reporting requirement imposed by law; and

(b) the total value of the property involved in such financial transaction or transactions exceeds ten thousand dollars.

Money laundering in the fourth degree is a class E felony.

NY PENAL LAW § 470.10

Money laundering in the third degree.

A person is guilty of money laundering in the third degree when:

1. Knowing that the property involved in one or more financial transactions represents:

(a) the proceeds of the criminal sale of a controlled substance, he or she conducts one or more such financial transactions which in fact involve the proceeds of the criminal sale of a controlled substance:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of the property involved in such financial transaction or transactions exceeds ten thousand dollars; or

(b) the proceeds of criminal conduct, he or she conducts one or more such financial transactions which in fact involve the proceeds of specified criminal conduct:

(i) With intent to:

(A) promote the carrying on of criminal conduct; or

(ii) knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of the property involved in such financial transaction or transactions exceeds fifty thousand dollars; or

2. Knowing that one or more monetary instruments represent:

(a) the proceeds of the criminal sale of a controlled substance, he or she transports, transmits, or transfers or attempts to transport, transmit or transfer, on one or more occasions, monetary instruments which in fact represent the proceeds of the criminal sale of a controlled substance from a place in any county in this state to or through a place outside that county or to a place in any county in this state from or through a place outside that county:

(i) With intent to promote the carrying on of specified criminal conduct; or

(ii) Knowing that such transportation, transmittal or transfer is designed in whole or in part to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of such monetary instrument or instruments exceeds ten thousand dollars; or

(b) the proceeds of criminal conduct, he or she transports, transmits, or transfers or attempts to transport, transmit or transfer, on one or more occasions monetary instruments which in fact represent the proceeds of specified criminal conduct from a place in any county in this state to or through a place outside that county or to a place in any county in this state from or through a place outside that county:

(i) With intent to promote the carrying on of criminal conduct; or

(ii) Knowing that such transportation, transmittal or transfer is designed in whole or in part to:

(A) conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of such monetary instrument or instruments exceeds fifty thousand dollars; or

3. He or she conducts one or more financial transactions involving property represented to be:

(a) the proceeds of the criminal sale of a controlled substance, or represented to be property used to conduct or facilitate the criminal sale of a controlled substance:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(B) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or

(ii) The total value of the property involved in such financial transaction or transactions exceeds ten thousand dollars; or

(b) the proceeds of specified criminal conduct, or represented to be property used to conduct or facilitate specified criminal conduct:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(B) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or

(ii) The total value of the property involved in such financial transaction or transactions exceeds fifty thousand dollars.

Money laundering in the third degree is a class D felony.

NY PENAL LAW § 470.15

Money laundering in the second degree.

A person is guilty of money laundering in the second degree when:

1. Knowing that the property involved in one or more financial transactions represents:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of the property involved in such financial transaction or transactions exceeds fifty thousand dollars; or

(b) the proceeds of specified criminal conduct, he or she conducts one or more such financial transactions which in fact involve the proceeds of specified criminal conduct:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of the property involved in such financial transaction or transactions exceeds one hundred thousand dollars; or

2. Knowing that one or more monetary instruments represent:

(i) With intent to promote the carrying on of specified criminal conduct; or

(ii) Knowing that such transportation, transmittal or transfer is designed in whole or in part to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of such monetary instrument or instruments exceeds fifty thousand dollars; or

(b) the proceeds of specified criminal conduct, he or she transports, transmits, or transfers or attempts to transport, transmit or transfer, on one or more occasions, monetary instruments which in fact represent the proceeds of specified criminal conduct from a place in any county in this state to or through a place outside that county or to a place in any county in this state from or through a place outside that county:

(i) With intent to promote the carrying on of specified criminal conduct; or

(ii) Knowing that such transportation, transmittal or transfer is designed in whole or in part to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of such monetary instrument or instruments exceeds one hundred thousand dollars; or

3. He or she conducts one or more financial transactions involving property represented to be:

(a) the proceeds of the criminal sale of a controlled substance, or represented to be property used to conduct or facilitate the criminal sale of a controlled substance:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(B) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or

(ii) The total represented value of the property involved in such financial transaction or transactions exceeds fifty thousand dollars; or

(b) the proceeds of specified criminal conduct, or represented to be property used to conduct or facilitate specified criminal conduct:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct;

(B) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or

(ii) The total represented value of the property involved in such financial transaction or transactions exceeds one hundred thousand dollars.

Money laundering in the second degree is a class C felony.

NY PENAL LAW § 470.20

Money laundering in the first degree.

A person is guilty of money laundering in the first degree when:

1. Knowing that the property involved in one or more financial transactions represents:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of the property involved in such financial transaction or transactions exceeds five hundred thousand dollars; or

(b) the proceeds of a class A, B or C felony, or of a crime in any other jurisdiction that is or would be a class A, B or C felony under the laws of this state, he or she conducts one or more such financial transactions which in fact involve the proceeds of any such felony:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of specified criminal conduct; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of the property involved in such financial transaction or transactions exceeds one million dollars.

2. He or she conducts one or more financial transactions involving property represented to be:

(a) the proceeds of the criminal sale of a controlled substance, or represented to be property used to conduct or facilitate the criminal sale of a controlled substance:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(B) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or

(ii) The total represented value of the property involved in such financial transaction or transactions exceeds five hundred thousand dollars; or

(b) the proceeds of a class A, B or C felony or of a crime in any other jurisdiction that is or would be a class A, B or C felony under the laws of this state, or represented to be property used to conduct or facilitate such crimes:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(B) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be the proceeds of specified criminal conduct; or

(ii) The total represented value of the property involved in such financial transaction or transactions exceeds one million dollars.

Money laundering in the first degree is a class B felony.

NY PENAL LAW § 470.21

Money laundering in support of terrorism in the fourth degree.

A person is guilty of money laundering in support of terrorism in the fourth degree when:

1. Knowing that the property involved in one or more financial transactions represents either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part:

(a) he or she conducts one or more such financial transactions which in fact involve either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part:

(i) With intent to:

(A) promote the carrying on of criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part; or

(B) avoid any transaction reporting requirement imposed by law; and

(b) the total value of the property involved in such financial transaction or transactions exceeds one thousand dollars; or

2. Knowing that one or more monetary instruments represents either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part:

(a) he or she transports, transmits, or transfers on one or more occasions, monetary instruments which in fact represent either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part:

(i) With intent to promote the carrying on of criminal conduct; or

(ii) Knowing that such transportation, transmittal, or transfer is designed in whole or in part to:

(A) conceal or disguise the nature, the location, the source, the ownership, or the control of either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part; or

(B) avoid any transaction reporting requirement imposed by law; and

(b) the total value of such monetary instrument or instruments exceeds two thousand dollars; or

3. He or she conducts one or more financial transactions:

(a) involving property represented to be either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part, with intent to:

(i) promote the carrying on of specified criminal conduct; or

(ii) conceal or disguise the nature, the location, the source, the ownership or the control of property believed to be either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part; or

(iii) avoid any transaction reporting requirement imposed by law; and

(b) the total value of the property involved in such financial transaction or transactions exceeds two thousand dollars.

Money laundering in support of terrorism in the fourth degree is a class E felony.

NY PENAL LAW § 470.22

Money laundering in support of terrorism in the third degree.

A person is guilty of money laundering in support of terrorism in the third degree when:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(B) avoid any transaction reporting requirement imposed by law; and

(b) the total value of the property involved in such financial transaction or transactions exceeds five thousand dollars; or

2. Knowing that one or more monetary instruments represent either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part:

(a) he or she transports, transmits, or transfers or attempts to transport, transmit or transfer, on one or more occasions, monetary instruments which in fact represent either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part from a place in any county in this state to or through a place outside that county or to a place in any county in this state from or through a place outside that county:

(i) With intent to promote the carrying on of specified criminal conduct; or

(ii) Knowing that such transportation, transmittal or transfer is designed in whole or in part to:

(B) avoid any transaction reporting requirement imposed by law; and

(b) The total value of such monetary instrument or instruments exceeds five thousand dollars; or

3. He or she conducts one or more financial transactions involving property represented to be either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part:

(a) With intent to:

(i) promote the carrying on of specified criminal conduct; or

(iii) avoid any transaction reporting requirement imposed by law; and

(b) The total value of the property involved in such financial transaction or transactions exceeds five thousand dollars.

Money laundering in support of terrorism in the third degree is a class D felony.

NY PENAL LAW § 470.23

Money laundering in support of terrorism in the second degree.

A person is guilty of money laundering in support of terrorism in the second degree when:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(B) avoid any transaction reporting requirement imposed by law; and

(b) the total value of the property involved in such financial transaction or transactions exceeds twenty-five thousand dollars; or

(i) With intent to promote the carrying on of specified criminal conduct; or

(ii) Knowing that such transportation, transmittal or transfer is designed in whole or in part to:

(B) avoid any transaction reporting requirement imposed by law; and

(b) the total value of such monetary instrument or instruments exceeds twenty-five thousand dollars; or

(a) With intent to:

(i) promote the carrying on of specified criminal conduct; or

(iii) avoid any transaction reporting requirement imposed by law; and

(b) The total value of the property involved in such financial transaction or transactions exceeds twenty-five thousand dollars.

Money laundering in support of terrorism in the second degree is a class C felony.

NY PENAL LAW § 470.24

Money laundering in support of terrorism in the first degree.

A person is guilty of money laundering in support of terrorism in the first degree when:

(a) he or she conducts one or more financial transactions which in fact involve either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part:

(i) With intent to:

(A) promote the carrying on of specified criminal conduct; or

(ii) Knowing that the transaction or transactions in whole or in part are designed to:

(A) conceal or disguise the nature, the location, the source, the ownership or the control of the proceeds of either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part; or

(B) avoid any transaction reporting requirement imposed by law; and

(iii) The total value of the property involved in such financial transaction or transactions exceeds seventy-five thousand dollars.

2. He or she conducts one or more financial transactions involving property represented to be either the proceeds of an act of terrorism as defined in subdivision one of section 490.05 of this part, or a monetary instrument given, received or intended to be used to support a violation of article four hundred ninety of this part:

(a) With intent to:

(i) promote the carrying on of specified criminal conduct; or

(iii) avoid any transaction reporting requirement imposed by law; and

(b) The total represented value of the property involved in such financial transaction or transactions exceeds one hundred twenty-five thousand dollars.

Money laundering in support of terrorism in the first degree is a class B felony.

NY PENAL LAW § 470.25

Money laundering; 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 disproportionate 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. The imposition of a fine pursuant to subdivision one of this section or paragraph b of subdivision one of section 80.00 of this chapter, shall preclude the imposition of any other order or judgment of forfeiture or fine based upon the same criminal conduct.

Article 470: Money Laundering