0001|                            HOUSE BILL 174
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                          R. DAVID PEDERSON
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO CRIMINAL LAW; ENACTING THE MONEY LAUNDERING ACT;
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0012|     PROVIDING CRIMINAL AND CIVIL PENALTIES; AMENDING AND ENACTING
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0013|     SECTIONS OF THE NMSA 1978.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  A new section of the Criminal Code is enacted
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0017|     to read:
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0018|          "[<u>NEW MATERIAL</u>]  SHORT TITLE.--Sections 1 through 5 of
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0019|     this act may be cited as the "Money Laundering Act"."
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0020|          Section 2.  A new section of the Criminal Code is enacted
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0021|     to read:
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0022|          "[<u>NEW MATERIAL</u>]  DEFINITIONS.--As used in the Money
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0023|     Laundering Act:
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0024|               A.  "financial institution" means:
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0025|                    (1)  a bank, credit union, trust company or
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0001|     thrift institution or an agency or branch thereof;
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0002|                    (2)  a broker or dealer in securities or
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0003|     commodities;
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0004|                    (3)  an investment banker;
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0005|                    (4)  an investment company;
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0006|                    (5)  an issuer, redeemer or cashier of
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0007|     traveler's checks, checks, money orders or similar instruments;
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0008|                    (6)  an operator of a credit card system;
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0009|                    (7)  an insurance company;
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0010|                    (8)  a dealer in precious metals, stones or
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0011|     jewels;
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0012|                    (9)  a pawnbroker;
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0013|                    (10)  a loan or finance company;
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0014|                    (11)  a travel agency;
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0015|                    (12)  a licensed sender of money;
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0016|                    (13)  a telegraph company;
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0017|                    (14)  a business engaged in vehicle sales,
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0018|     including automobile, airplane and boat sales;
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0019|                    (15)  a currency exchange;
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0020|                    (16)  a person involved in real estate closings
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0021|     and settlements; or
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0022|                    (17)  an agency or authority of a state or
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0023|     local government carrying out a duty or power of a business
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0024|     described in this subsection;
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0025|               B.  "financial transaction" means a purchase, sale,
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0001|     loan, pledge, gift, transfer, delivery or other disposition of
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0002|     any monetary instrument or the movement of funds by wire or
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0003|     other means;
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0004|               C.  "monetary instrument" means coin or currency of
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0005|     the United States or any other country, traveler's checks,
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0006|     personal checks, bank checks, money orders, investment
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0007|     securities in bearer form or in such other form that title
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0008|     passes upon delivery of the security and negotiable instruments
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0009|     in bearer form or in such other form that title passes upon
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0010|     delivery of the instrument;
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0011|               D.  "person" means any individual, corporation,
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0012|     partnership, trust or estate, joint stock company, association,
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0013|     syndicate, joint venture, unincorporated organization or group
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0014|     or other entity;
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0015|               E.  "proceeds" means property that is acquired,
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0016|     delivered, produced or realized, whether directly or
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0017|     indirectly, by an act or omission;
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0018|               F.  "property" means anything of value, including
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0019|     real, personal, tangible or intangible property; and 
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0020|               G.  "specified unlawful activity" means any act or
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0021|     omission, including any initiatory, preparatory or completed
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0022|     offense or omission, committed for financial gain that is
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0023|     punishable as a felony under the laws of New Mexico or, if the
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0024|     act occurred outside New Mexico, would be punishable as a
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0025|     felony under the laws of the state in which it occurred and
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0001|     under the laws of New Mexico."
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0002|          Section 3.  A new section of the Criminal Code is enacted
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0003|     to read:
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0004|          "[<u>NEW MATERIAL</u>]  REPORTS FILED WITH THE DEPARTMENT OF
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0005|     PUBLIC SAFETY--CRIMINAL PENALTIES.--
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0006|               A.  Any financial institution in New Mexico that is
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0007|     required to file a report regarding a financial transaction
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0008|     under the provisions of the federal Currency and Foreign
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0009|     Transactions Reporting Act and the regulations promulgated
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0010|     pursuant to that act shall file a duplicate of that report with
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0011|     the department of public safety; provided, a financial
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0012|     institution that makes a timely filing with an appropriate
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0013|     federal agency shall be deemed to have satisfied the reporting
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0014|     requirements of this subsection. 
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0015|               B.  Any person engaged in a trade or business in New
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0016|     Mexico who, in the course of the trade or business, receives
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0017|     more than ten thousand dollars ($10,000) in cash in one
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0018|     financial transaction or two or more related financial
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0019|     transactions, and is required to file a report under the
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0020|     provisions of 26 U.S.C. Section 6050I and regulations
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0021|     promulgated pursuant to that section, shall file a duplicate of
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0022|     that report with the department of public safety; provided, a
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0023|     person who makes a timely filing with an appropriate federal
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0024|     agency shall be deemed to have satisfied the reporting
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0025|     requirements of this subsection. 
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0001|               C.  A financial institution, a person engaged in a
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0002|     trade or business or any officer, employee or agent thereof who
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0003|     files or keeps a record pursuant to the provisions of this
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0004|     section or who communicates or discloses information or records
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0005|     pursuant to the provisions of this section shall not be liable
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0006|     to its customer or to any person for any loss or damage caused
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0007|     in whole or in part by the making, filing or governmental use
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0008|     of the report or any information contained in the report.
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0009|               D.  Any person who releases information received
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0010|     pursuant to the provisions of this section, except in the
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0011|     proper discharge of his official duties, is guilty of a
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0012|     misdemeanor.
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0013|               E.  Any person who knowingly:
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0014|                    (1)  fails to file a report required pursuant
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0015|     to the provisions of this section is subject to a fine of not
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0016|     more than ten percent of the value of the financial transaction
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0017|     required to be reported or twenty-five thousand dollars
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0018|     ($25,000), whichever is greater; or
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0019|                    (2)  provides any false or inaccurate
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0020|     information or knowingly conceals any material fact in
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0021|     connection with the financial transaction that is required in
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0022|     the report pursuant to Subsections A and B of this section is
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0023|     guilty of a fourth degree felony.
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0024|               F.  Notwithstanding any other provision of law, any
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0025|     violation of this section constitutes a separate, punishable
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0001|     offense for each transaction or exemption.
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0002|               G.  Any report, record, information, analysis or
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0003|     request obtained by the department of public safety or any
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0004|     agency pursuant to the provisions of this section is not a
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0005|     public record as defined in Section 14-3-2 NMSA 1978 and is not
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0006|     subject to disclosure pursuant to the provisions of Section
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0007|     14-2-1 NMSA 1978.
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0008|               H.  Any financial institution or person required to
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0009|     file a report pursuant to the provisions of Subsection A or B
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0010|     of this section shall, at the request of the department of
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0011|     public safety, provide the department with access to a copy of
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0012|     the report during the period of time that the financial
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0013|     institution or person is required to maintain the report."
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0014|          Section 4.  A new section of the Criminal Code is enacted
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0015|     to read:
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0016|          "[<u>NEW MATERIAL</u>]  PROHIBITED ACTIVITY--CRIMINAL
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0017|     PENALTIES--CIVIL PENALTIES.--
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0018|               A.  It is unlawful for any person who knows that the
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0019|     property involved in a financial transaction is, or was
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0020|     represented to be, the proceeds of a specified unlawful
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0021|     activity:
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0022|                    (1)  to conduct, structure, engage in or
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0023|     participate in a financial transaction that involves the
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0024|     property, knowing that the financial transaction is designed in
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0025|     whole or in part to conceal or disguise the nature, location,
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0001|     source, ownership or control of the property or to avoid a
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0002|     transaction reporting requirement under state or federal law;
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0003|                    (2)  to conduct, structure, engage in or
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0004|     participate in a financial transaction that involves the
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0005|     property for the purpose of committing or furthering the
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0006|     commission of any other specified unlawful activity;
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0007|                    (3)  to transport a monetary instrument with
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0008|     the intent to further a specified unlawful activity, knowing
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0009|     that the transport is designed, in whole or in part, to conceal
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0010|     or disguise the nature, location, source, ownership or control
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0011|     of the monetary instrument or to avoid a transaction reporting
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0012|     requirement under state or federal law; or
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0013|                    (4)  to make the property available to another
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0014|     person by means of a financial transaction or by transporting
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0015|     the property, when he knows that the property is intended for
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0016|     use by the other person to commit or further the commission of
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0017|     a specified unlawful activity.
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0018|               B.  A person who violates any provision of
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0019|     Subsection A of this section is guilty of a:
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0020|                    (1)  second degree felony if the illegal
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0021|     financial transaction involves more than one hundred thousand
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0022|     dollars ($100,000);
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0023|                    (2)  third degree felony if the illegal
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0024|     financial transaction involves over ten thousand dollars
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0025|     ($10,000) but not more than one hundred thousand dollars
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0001|     ($100,000);
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0002|                    (3)  fourth degree felony if the illegal
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0003|     financial transaction involves over one thousand dollars
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0004|     ($1,000) but not more than ten thousand dollars ($10,000); or
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0005|                    (4)  misdemeanor if the illegal financial
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0006|     transaction involves one thousand dollars ($1,000) or less.
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0007|               C.  A person who violates any provision of
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0008|     Subsection A of this section is subject to a civil penalty of
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0009|     three times the value of the monetary instrument involved in
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0010|     the transaction, in addition to any criminal penalty.
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0011|               D.  Nothing contained in the Money Laundering Act
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0012|     precludes any civil or criminal remedies provided by the
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0013|     Racketeering Act or the Controlled Substances Act or by any
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0014|     other New Mexico law.  Those remedies are in addition to and
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0015|     not in lieu of remedies provided in the Money Laundering Act."
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0016|          Section 5.  A new section of the Criminal Code is enacted
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0017|     to read:
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0018|          "[<u>NEW MATERIAL</u>]  ATTORNEY FEES--EXCEPTION.--No provision
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0019|     of the Money Laundering Act shall apply to a financial
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0020|     transaction involving the bona fide fees an attorney accepts
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0021|     for representing a client in a criminal investigation or any
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0022|     proceeding arising from a criminal investigation."
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0023|          Section 6.  Section 30-42-3 NMSA 1978 (being Laws 1980,
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0024|     Chapter 40, Section 3, as amended) is amended to read:
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0025|          "30-42-3.  DEFINITIONS.--As used in the Racketeering Act:
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0001|               A.  "racketeering" means any act <s>[which]</s> <u>that</u> is
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0002|     chargeable or indictable under the laws of New Mexico and
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0003|     punishable by imprisonment for more than one year, involving
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0004|     any of the following cited offenses:
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0005|                    (1)  murder, as provided in Section 30-2-1 NMSA
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0006|     1978;
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0007|                    (2)  robbery, as provided in Section 30-16-2
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0008|     NMSA 1978;
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0009|                    (3)  kidnapping, as provided in Section 30-4-1
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0010|     NMSA 1978;
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0011|                    (4)  forgery, as provided in Section 30-16-10
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0012|     NMSA 1978;
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0013|                    (5)  larceny, as provided in Section 30-16-1
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0014|     NMSA 1978;
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0015|                    (6)  fraud, as provided in Section 30-16-6 NMSA
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0016|     1978;
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0017|                    (7)  embezzlement, as provided in Section
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0018|     30-16-8 NMSA 1978;
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0019|                    (8)  receiving stolen property, as provided in
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0020|     Section 30-16-11 NMSA 1978;
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0021|                    (9)  bribery, as provided in Sections 30-24-1
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0022|     through 30-24-3 NMSA 1978;
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0023|                    (10)  gambling, as provided in Sections 30-19-
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0024|     3, 30-19-13 and 30-19-15 NMSA 1978;
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0025|                    (11)  illegal kickbacks, as provided in
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0001|     Sections 30-41-1 and 30-41-2 NMSA 1978;
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0002|                    (12)  extortion, as provided in Section 30-16-9
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0003|     NMSA 1978;
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0004|                    (13)  trafficking in controlled substances, as
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0005|     provided in Section 30-31-20 NMSA 1978;
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0006|                    (14)  arson and aggravated arson, as provided
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0007|     in Subsection A of Section 30-17-5 and Section 30-17-6 NMSA
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0008|     1978;
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0009|                    (15)  promoting prostitution, as provided in
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0010|     Section 30-9-4 NMSA 1978;
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0011|                    (16)  criminal solicitation, as provided in
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0012|     Section 30-28-3 NMSA 1978;
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0013|                    (17)  fraudulent securities practices, as
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0014|     provided in the New Mexico Securities Act of 1986;
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0015|                    (18)  loan sharking, as provided in Sections 
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0016|     30-43-1 through 30-43-5 NMSA 1978; <s>[and]</s>
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0017|                    (19)  distribution of controlled substances or
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0018|     controlled substance analogues as provided for in Sections
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0019|     30-31-21 and 30-31-22 NMSA 1978; <u>and
</u>    |
<u></u>0020| <u>                   </u>(20)  a violation of the Money Laundering Act;
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0021|               B.  "person" <s>[includes]</s> <u>means</u> any individual or
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0022|     entity capable of holding a legal or beneficial interest in
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0023|     property;
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0024|               C.  "enterprise" means any sole proprietorship,
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0025|     partnership, corporation, business, labor union, association or
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0001|     other legal entity or any group of individuals associated in
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0002|     fact although not a legal entity and includes illicit as well
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0003|     as licit entities; and
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0004|               D.  "pattern of racketeering activity" means
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0005|     engaging in at least two incidents of racketeering with the
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0006|     intent of accomplishing any of the prohibited activities set
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0007|     forth in Subsections A through D of Section 30-42-4 NMSA 1978;
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0008|     provided at least one of <s>[such]</s> <u>the</u> incidents occurred
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0009|     after the effective date of the Racketeering Act and the last
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0010|     <s>[of which]</s> <u>incident</u> occurred within five years after the
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0011|     commission of a prior incident of racketeering."
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0012|          Section 7.  SEVERABILITY.--If any part or application of
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0013|     the Money Laundering Act is held invalid, the remainder or its
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0014|     application to other situations or persons shall not be
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0015|     affected.
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0016|          Section 8.  EFFECTIVE DATE.--The effective date of the
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0017|     provisions of this act is July 1, 1997.
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0018|                                  
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0019|     
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0020|                                                          State of New Mexico
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0021|                      House of Representatives
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0022|   
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0023|                      FORTY-THIRD LEGISLATURE
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0024|                        FIRST SESSION, 1997
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0025|   
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0001|   
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0002|                                                February 7, 1997
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0003|   
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0004|   
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0005|   Mr. Speaker:
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0006|   
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0007|        Your JUDICIARY COMMITTEE, to whom has been referred
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0008|   
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0009|                        HOUSE BILL 174
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0010|   
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0011|   has had it under consideration and reports same with
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0012|   recommendation that it DO PASS, amended as follows:
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0013|   
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0014|        1.  On page 5, line 13, after "report" insert "with the
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0015|   department of public safety".
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0016|   
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0017|        2.  On page 5, lines 16 and 17, strike "twenty-five thousand
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0018|   dollars ($25,000)" and insert in lieu thereof "five thousand
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0019|   dollars ($5,000)".
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0020|   
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0021|        3.  On page 5, lines 20 and 21, strike "connection with the
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0022|   financial transaction that is required in the report" and insert
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0023|   in lieu thereof "a report required".
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0024|   
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0025|        4.  On page 7, line 6, strike "a monetary instrument" and
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0001|   insert in lieu thereof "the property".
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0002|   
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0003|        5.  On page 8, line 8, strike "monetary instrument" and
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0004|   insert in lieu thereof "property".,
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0005|   
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0006|   and thence referred to the APPROPRIATIONS AND FINANCE
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0007|   COMMITTEE.
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0008|   
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0009|                                 Respectfully submitted,
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0010|   
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0011|   
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0012|   
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0013|                                 <u>                                
</u>    |
<u></u>0014| <u>  
</u>    |
<u></u>0015| <u>                                </u>                             Thomas P. Foy, Chairman
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0016|   
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0017|   
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0018|   Adopted <u>                    </u>     Not Adopted <u>                    
</u>    |
<u></u>0019| <u>   </u>
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0020|             (Chief Clerk)                       (Chief Clerk)
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0021|   
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0022|                        Date <u>            </u>
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0023|   
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0024|   The roll call vote was<u> 7 </u> For<u> 0 </u> Against
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0025|   Yes:      7
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0001|             Excused:  Alwin, King, Larranaga, Luna, Rios, Sanchez
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0002|             Absent:   None
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0003|   
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0004|   
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0005|   .115919.1
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0006|   G:\BILLTEXT\BILLW_97\H0174                       State of New Mexico
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0007|                      House of Representatives
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0008|   
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0009|                      FORTY-THIRD LEGISLATURE
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0010|                        FIRST SESSION, 1997
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0011|   
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0012|   
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0013|                                               February 25, 1997
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0014|   
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0015|   
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0016|   Mr. Speaker:
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0017|   
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0018|        Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0019|   whom has been referred
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0020|   
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0021|                  HOUSE BILL 174, as amended
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0022|                               
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0023|   has had it under consideration and reports same with
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0024|   recommendation that it DO PASS.
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0025|   
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0001|                                 Respectfully submitted,
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0002|   
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0003|   
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0004|   
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0005|                                 <u>                                
</u>    |
<u></u>0006| <u>  
</u>    |
<u></u>0007| <u>                                </u>                             Max Coll, Chairman
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0008|   
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0009|   
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0010|   Adopted <u>                    </u>     Not Adopted <u>                    
</u>    |
<u></u>0011| <u>   </u>
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0012|             (Chief Clerk)                       (Chief Clerk)
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0013|   
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0014|                        Date <u>            </u>
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0015|   
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0016|   The roll call vote was <u> 11 </u> For <u> 0 </u> Against
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0017|   Yes:      11
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0018|             Excused:  Buffett, Heaton, Picraux, Salazar, Townsend, Watchman
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0019|             Absent:   None
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0020|   
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0021|   
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0022|   G:\BILLTEXT\BILLW_97\H0174                        FORTY-THIRD LEGISLATURE
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0023|                              FIRST SESSION
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0024|   
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0025|   
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0001|                                                    February 28, 1997
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0002|   
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0003|   
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0004|   HOUSE FLOOR AMENDMENT number ___1___ to HOUSE BILL 174, as amended
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0005|   
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0006|   Amendment sponsored by Representative R. David Pederson
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0007|   
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0008|   
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0009|     1.  On page 10, line 18, after "of" insert "the provisions of
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0010|   Section 4 of".
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0011|   
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0012|   
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0013|   
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0014|   
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0015|   
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0016|   
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0017|   
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0018|   
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0020|   
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0001|   
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0002|   
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0003|                                         ___________________________
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0004|                                         R. David Pederson
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0005|   
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0006|   
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0007|   
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0008|   Adopted ___________________   Not Adopted ___________________________
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0009|            (Chief Clerk)                       (Chief Clerk)
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0010|   
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0011|   
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0012|                   Date ________________
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