Establishes certain offenses relating to structuring, money laundering and defrauding the government

Section 2 of this bill amends the penal law by adding four new sections 470.30, 470.31, 470.32 and 470.33. Section 470.30 creates the crime of "Structuring in the second degree". Section 470.31 creates the crime of "Structuring in the first degree". Section 470.32 creates the crime of "Criminal monetary transaction in the second degree". Section 470.33 creates the crime of "Criminal monetary transaction in the first degree".

Section 3 of this bill amends subdivision 3 of section 470.03 of the penal law, as amended by section 17 part A of chapter 1 of the laws of 2004, by specifying that monetary transactions may be considered together and the value of the property derived from specified criminal conduct may be aggregated, provided that the monetary transactions are all part of a single "criminal transaction" as defined in subdivision 2 of section 40.10 of the criminal procedure law.

Section 4 of this bill amends section 470.25 of the penal law, as amended by chapter 489 of the laws of 2000, by adding language concerning fines for any person convicted of a violation of section 470.32 or 470.33 of this article.

Section 5 of this bill amends paragraph (a) of subdivision 1 of section 460.10 of the penal law, as amended by chapter 368 of the laws of 2015, by adding references to the new sections created in section 2 of this bill.

Section 6 of this bill amends section 195.20 of the penal law, as amended by chapter 1 of the laws of 2010, by adding "in the fourth degree" to the crime of "Defrauding the government".

Section 7 of this bill amends the penal law by adding three new sections 195.22, 195.25, and 195.27. Section 195.22 creates the crime of "Defrauding the government in the third degree". Section 195.25 creates the crime of "Defrauding the government in the second degree". Section 195.27 creates the crime of "Defrauding the government in the first degree".

Section 8 of this bill amends section 1807 of the tax law, as amended by section 5 of subpart A of part S of chapter 57 of the laws of 2010 by removing the language "within one year".

Section 9 of this bill amends subsection (e) of section 697 of the tax law by adding a new paragraph (3-b).

Section 10 of this bill amends paragraph (c) of subdivision 2 of section 20.40 of the criminal procedure law by removing "and was performed with intent that it would, or with knowledge that it was likely to, have such particular effect therein" and adding "or on a city of which such county is a part, whether or not such conduct also had effects on other counties or on the state as a whole; provided that, if such conduct had or was likely to have such particular effect upon the state as a whole, then there shall be proper jurisdiction in the county of Albany in addition to any counties particularly affected".

Section 11 of this bill states that this act shall take effect on the first of November next succeeding the date on which it shall have become law.

Justification

Criminal law in New York State has not undergone a comprehensive revision since the Bartlett Commission drafted the "new" Penal Law in 1965. While the Commission's revision was considered the most significant legislation achieved in the evolution of a twentieth century criminal code, the provisions on white-collar crime, were relatively rudimentary. New York did not have the benefit of the experience gained during the last five decades combating fraud and corruption.

With the 21st century, development of commerce and technology has taken us from an industrial world where large corporations were beginning to exploit computer technology to a technological one where everyone, including criminals, have access to electronic marvels.

These changes in technology have brought an evolution of crimes and factual scenarios never contemplated by the Commission, such as transnational cybercrime rings, the rise in value of intellectual property and the corresponding activities of thieves, billion-dollar securities fraud schemes, computer hacking, and increasingly sophisticated corruption schemes. New breeds of white-collar criminals have victimized individuals, businesses, and government entities alike-costing New York State taxpayers dearly.

This continuing problem led to the creation of the New York State White Collar Crime Task Force in October 2012 by Cyrus R. Vance, Jr. The Task Force focused its attention to the issues that affect the entire panoply of white-collar crime, such as tax and money laundering.

As recommended by the Task Force, this bill would criminalize the structuring of cash transactions to avoid reporting requirements; amend the tax law to permit aggregation of tax loss across multiple years in prosecutions for criminal tax fraud; allow access to tax returns in non-tax cases with a showing of necessity and court approval; amend the "particular" effect jurisdiction to allow for prosecution in any county of New York City of schemes to defeat City taxes, and in Albany County for schemes to defeat state taxes; and amend the crime of Defrauding the Government to cover schemes that defraud government agencies of government revenue and gradate the statute to treat more serious schemes more seriously.

Legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first of November next succeeding the date on which it shall have become law.