NY Penal Law § 470.22: Money laundering in support of terrorism in the third degree

In order to hide proceeds from criminal activity such as drug dealing or gambling, criminals sometimes take steps to convert money received from criminal conduct into money that appears to be from legitimate sources. This is called money laundering. In some cases, money laundering is done in order to hide to the fact that the source of the money was from an act of terrorism or that the money is being funneled to help support terrorism. There are 4 offenses in the New York criminal code related to money laundering and terrorism: money laundering in support of terrorism in the first, second, third and fourth degrees. Under New York Penal Law § 470.22 you could be prosecuted for money laundering in support of terrorism in the third degree if you:

1. Know that the property involved in one or more financial transactions is the proceeds of an act of terrorism or a monetary instrument given, received or intended to be used to support of terrorism, and you conduct one or more such financial transaction with intent to promote the carrying on of such criminal conduct, avoid tax laws, or to conceal the nature, the location, the source, the ownership or the control of the proceeds of an act of terrorism or avoid any transaction reporting requirement imposed by law and the total value of the property involved in such financial transaction or transactions is more than $5000; or

2. Know that the property involved in one or more financial transactions is the proceeds of an act of terrorism or a monetary instrument given, received or intended to be used to support of terrorism, and you transports, transmits, or transfers monetary instruments from New York with intent to promote the carrying on that criminal conduct; or knowing that such transportation, transmittal or transfer is designed in whole or in part to conceal or disguise the nature, the location, the source, the ownership or the control of either the proceeds of an act of terrorism or avoid any transaction reporting requirement imposed by law and the total value of such monetary instrument or instruments is more than $5000; or

3. Conducts one or more financial transactions involving property that is the proceeds of an act of terrorism or a monetary instrument given, received or intended to be used to support terrorism with intent to promote the carrying on that criminal conduct or conceal or disguise the nature, the location, the source, the ownership or the control of property or a monetary instrument given, or avoid any transaction reporting requirement imposed by law and the total value of such monetary instrument or instruments is more than $5000.

Sonya's boyfriend, Todd, told her that he is an investment banker. To Sonya it appears as if he does quite well, as he frequently gives her extravagant gifts. While Todd is a businessman, he is also involved with terrorist activities and receives money from his "customers" as payment for acts of terrorism. Todd uses this money to buy Sonya expensive gifts. Unless Sonya knew about Todd's activities, she could not be prosecuted for money laundering in support of terrorism as the crime requires knowledge or intent.

1. Money laundering in the first degree: New York Penal Code § 470.20

Oftentimes the person or institution doing the money laundering is not aware that the money was obtain from criminal activity. For example, if a person involved in criminal activity uses proceeds from that criminal activity to purchase expensive gifts for his girlfriend, the girlfriend could not be convicted of money laundering if she had no idea that the money used to purchase the gift was associated with acts of terrorism.

Money laundering in the third degree is a class D felony. If you are convicted of this crime your sentence may include up to 7 years in prison and 5 years of probation. In addition, New York Penal Law § 470.25 states that you can also be required to pay a fine of up to two times the amount of money involved in the money laundering scheme.

A person is guilty of money laundering in support of terrorism in the third 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 § 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 § 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 (B) engage in conduct constituting a felony as set forth in section eighteen hundred three, eighteen hundred four, eighteen hundred five, or eighteen hundred six 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 either the proceeds of an act of terrorism as defined in subdivision one of § 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 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 § 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 § 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: (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 § 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 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 § 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 (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 § 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 five thousand dollars.

If you are being investigated for money laundering in support of terrorism in the third degree or any other money laundering offense, it is crucial that you have experienced representation as early in your case as possible. The staff at the Law Offices of Stephen Bilkis & Associates has years of experience successfully defending clients in New York criminal courts who have been charged with money laundering, conspiracy, criminal facilitation, enterprise corruption, and other serious crimes. Contact us at 800.696.9529 to schedule a free, no obligation consultation regarding your case. We serve those accused of larceny in the following locations: the Bronx, Brooklyn, Long Island, Manhattan, Nassau County, Queens, Staten Island, Suffolk County and Westchester County.