NY Penal Law § 470.20: Money Laundering in the First Degree

What is Money Laundering?

In order to hide proceeds from criminal activity such as drug dealing, gambling, fraud or theft, those involved in such criminal activity sometimes take steps to make it appear as if the money was obtained through legal activities. This is called money laundering. Money laundering is regularly used not only by those involved in drug trafficking, illegal gambling, and prostitution, but elected officials have even been known to be involved in money laundering in an effort to hide the true source of campaign funds.

Money Laundering Offenses in New York

There are 8 different money laundering crimes in New York. Money laundering in the first degree is one of the 2 most serious money laundering offenses in the New York criminal code. Under New York Penal Law § 470.20 you could be prosecuted for money laundering in the first degree if you:

• Are aware that a financial transaction represents the proceeds of criminal conduct and you:
  • Carry out at least one financial transaction with intent to carry on the criminal activity or with intent to violate federal tax legislation,
  • Carry out at least one financial transaction with the awareness that it was designed to hide the nature, location or control of the criminal activity
  • Carry out at least one financial transaction that is designed to avoid necessary transaction reporting and the amount of the transaction or transactions is greater than $500,000
• Perform at least one financial transaction that:
  • Involves property that is the proceeds of criminal activity or property that was used to carry out or facilitate criminal activity with intent to promote that activity,
  • Conceal the nature, location or control of the activity or
  • Avoid transaction reporting and the transaction or transactions is greater than $1,000,000.