13-2317 - Money laundering; classification; definitions

13-2317. Money laundering; classification; definitions

A. A person is guilty of money laundering in the first degree if the person does any of the following:

1. Knowingly initiates, organizes, plans, finances, directs, manages, supervises or is in the business of money laundering in violation of subsection B of this section.

2. Violates subsection B of this section in the course of or for the purpose of facilitating terrorism or murder.

B. A person is guilty of money laundering in the second degree if the person does any of the following:

1. Acquires or maintains an interest in, transacts, transfers, transports, receives or conceals the existence or nature of racketeering proceeds knowing or having reason to know that they are the proceeds of an offense.

2. Makes property available to another by transaction, transportation or otherwise knowing that it is intended to be used to facilitate racketeering.

3. Conducts a transaction knowing or having reason to know that the property involved is the proceeds of an offense and with the intent to conceal or disguise the nature, location, source, ownership or control of the property or the intent to facilitate racketeering.

4. Intentionally or knowingly makes a false statement, misrepresentation or false certification or makes a false entry or omits a material entry in any application, financial statement, account record, customer receipt, report or other document that is filed or required to be maintained or filed under title 6, chapter 12.

5. Intentionally or knowingly evades or attempts to evade any reporting requirement under sections 6-1220 and 6-1242, whether by structuring transactions as described in 31 Code of Federal Regulations chapter X, by causing any financial institution, money transmitter, trade or business to fail to file the report, by failing to file a required report or record or by any other means.

6. Intentionally or knowingly provides any false information or fails to disclose information that causes any licensee, authorized delegate, money transmitter, trade or business to either:

(a) Fail to file any report or record that is required under sections 6-1220 and 6-1242.

(b) File such a report or record that contains a material omission or misstatement of fact.

7. Intentionally or knowingly falsifies, conceals, covers up or misrepresents or attempts to falsify, conceal, cover up or misrepresent the identity of any person in connection with any transaction with a financial institution or money transmitter.

8. In connection with a transaction with a financial institution or money transmitter, intentionally or knowingly makes, uses, offers or presents or attempts to make, use, offer or present, whether accepted or not, a forged instrument, a falsely altered or completed written instrument or a written instrument that contains any materially false personal identifying information.

9. If the person is a money transmitter, a person engaged in a trade or business or any employee of a money transmitter or a person engaged in a trade or business, intentionally or knowingly accepts false personal identifying information from any person or otherwise knowingly incorporates false personal identifying information into any report or record that is required by sections 6-1220 and 6-1242.

10. Intentionally conducts, controls, manages, supervises, directs or owns all or part of a money transmitting business for which a license is required by title 6, chapter 12 unless the business is licensed pursuant to title 6, chapter 12 and complies with the money transmitting business registration requirements under 31 United States Code section 5330.

C. A person is guilty of money laundering in the third degree if the person intentionally or knowingly does any of the following:

1. In the course of any transaction transmitting money, confers or agrees to confer anything of value on a money transmitter or any employee of a money transmitter that is intended to influence or reward any person for failing to comply with any requirement under title 6, chapter 12.

2. Engages in the business of receiving money for transmission or transmitting money, as an employee or otherwise, and receives anything of value on an agreement or understanding that it is intended to influence or benefit the person for failing to comply with any requirement under title 6, chapter 12.

D. In addition to any other criminal or civil remedy, if a person violates subsection A or B of this section as part of a pattern of violations that involve a total of $100,000 or more in any twelve-month period, the person is subject to forfeiture of substitute assets in an amount that is three times the amount that was involved in the pattern, including conduct that occurred before and after the twelve-month period.

E. Money laundering in the third degree is a class 6 felony. Money laundering in the second degree is a class 3 felony. Money laundering in the first degree is a class 2 felony.

F. The exception that is established by 31 United States Code section 5331(c)(1) does not apply to persons who are engaged in the money accumulation business.

G. For the purposes of this section:

1. The following terms have the same meanings prescribed in section 6-1241:

(a) "Authorized delegate".

(b) "Licensee".

(d) "Trade or business".

2. The following terms have the same meanings prescribed in section 13-2001:

(a) "Falsely alters a written instrument".

(b) "Falsely completes a written instrument".

(d) "Forged instrument".

(e) "Personal identifying information".

(f) "Written instrument".

3. The following terms have the same meanings prescribed in section 13-2301:

(a) "Financial institution".

(b) "Financial instrument".

(c) "Racketeering", except that for the purposes of civil remedies sought by the attorney general, racketeering includes any act, regardless of whether the act would be chargeable or indictable under the laws of this state or whether the act is charged or indicted, that is committed for financial gain, punishable by imprisonment for more than one year under the laws of the United States and described in section 274(a)(1)(A)(i), (ii) or (iii) or (a)(2) of the immigration and nationality act (8 United States Code section 1324(a)(1)(A)(i), (ii) or (iii) or (a)(2)) if persons acting in concert in the conduct acquire a total of more than $5,000 through the conduct in a one-month period. For the purpose of forfeiture of property other than real property, the conduct must involve more than three aliens in a one-month period. For the purpose of forfeiture of real property, the conduct must involve more than fifteen aliens in a one-month period.

4. The following terms have the same meaning prescribed in section 13-2314:

(a) "Acquire".

(b) "Proceeds".

H. For the purposes of this section:

1. "Money accumulation business":

(a) Means obtaining money from a money transmitter as part of any activity that is conducted for financial gain if the money that is obtained by all persons acting in concert in the activity, in amounts of $1,000 or more, totals over $50,000 in the preceding twelve-month period.

(b) Does not include a person who is subject to the reporting requirements under 31 United States Code section 5313.

2. "Offense" has the same meaning prescribed in section 13-105 and includes conduct for which a sentence to a term of incarceration is provided by any law of the United States.

3. "Transaction" means a purchase, sale, trade, loan, pledge, investment, gift, transfer, transmission, delivery, deposit, withdrawal, payment, transfer between accounts, exchange of currency, extension of credit, purchase or sale of any financial instrument or any other acquisition or disposition of property by whatever means.

4. "Transmitting money" means the transmission of money by any means, including transmissions within this country or to or from locations abroad by payment instrument, wire, fax, internet or any other electronic transfer, courier or otherwise.