New Jersey Section 2C:21-27.4 – Payment schedule.

Understanding New Jersey’s Payment Schedule Law for Anti-Money Laundering Penalties

New Jersey’s payment schedule law for anti-money laundering penalties is an important statute that lawyers need to be familiar with. Found in Section 2C:21-27.4 of New Jersey’s criminal code, this law gives courts flexibility in allowing defendants to pay large anti-money laundering penalties over time.

Overview of Anti-Money Laundering Laws

New Jersey’s anti-money laundering laws are intended to combat complex financial crimes like money laundering, illegal investments, and illicit financial transactions. The state’s money laundering statute makes it a crime to engage in financial transactions involving property connected to criminal activity.

Violators can face stiff penalties under Section 2C:21-27, including fines up to $500,000 for first-degree crimes. The law also allows an “anti-money laundering profiteering penalty” equal to 10 times the value of the property involved. As you can imagine, these penalties can be extremely high.

The Payment Schedule Provision

This is where Section 2C:21-27.4 comes in. It states:

“The court may, for good cause shown, and subject to the provisions of this section, grant permission for the payment of an anti-money laundering profiteering penalty on an installment plan.”

This gives judges discretion to allow penalty payments over time if the defendant shows good cause. The provision balances the goals of punishment and deterrence with practical realities. Many defendants simply don’t have the assets to pay massive penalties all at once.

Determining a Reasonable Payment Schedule

There are several factors courts consider when setting a payment schedule under this law:

• The total penalty amount – Obviously the total size of the penalty will impact the payment term needed. A higher penalty will require a longer schedule.
• The defendant’s financial resources – The court will look at the defendant’s assets, income, expenses, and ability to pay in determining a reasonable schedule. Defendants with fewer resources will get longer terms.
• Proportionality – The schedule should be proportional to the crime. More serious offenses may get tighter schedules than minor ones.
• Past payment history – If the defendant has failed to make required payments in other cases, the court may be less inclined to grant a lenient schedule.
• Other sentencing factors – Payment schedules don’t happen in a vacuum. The court will look at things like the need for deterrence and whether the defendant has accepted responsibility when shaping the schedule.

Courts have significant leeway in setting schedules under Section 2C:21-27.4. There are no hard-and-fast rules on maximum lengths. Some factors like the penalty amount and defendant’s resources are open to interpretation.

Potential Defense Arguments for Lenient Payment Terms

Defense attorneys have several arguments to advocate for lenient payment schedules under this law:

• Limited assets – If the defendant has few current assets or income sources, the defense can argue a longer term is needed to pay the penalty without undue hardship. Documents like tax returns and financial statements can help show limited resources.
• Age and illness – A defendant’s advanced age or poor health can justify a longer schedule if it impacts their earning ability. Medical records can help corroborate health issues.
• Dependents – Defendants with dependent spouses, children, or elderly parents may argue for longer terms to continue providing support. Testimony from family members can humanize the defendant’s situation.
• First offense – No prior criminal history can show the current offense was an aberration that doesn’t require an overly punitive schedule for deterrence. The defense can present character evidence to bolster this.
• Cooperation and acceptance – If the defendant cooperates, accepts responsibility, and shows remorse, the defense can argue this merits a more lenient schedule as a reward.
• Collateral consequences – The defense can point out collateral consequences like loss of professional licenses that reduce the defendant’s income sources and justify a longer schedule.

Key Takeaways

New Jersey’s payment schedule law for anti-money laundering penalties gives judges broad discretion to allow installment payments when defendants show good cause. Defense lawyers have many arguments to advocate for favorable payment terms based on the defendant’s financial situation. This law provides an important avenue for defendants to mitigate the potentially devastating financial impact of stiff anti-money laundering penalties.