Chapter 095

2006 -- H 7523

Enacted 06/13/06

A N A C T

RELATING TO COMMERCIAL TRANSACTION

Introduced By: Representatives Watson, and Long

Date Introduced: February 16, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 11-9.1-15 of the General Laws in Chapter 11-9.1 entitled

"Commercial Transactions" is hereby amended to read as follows:

11-9.1-15. Laundering of monetary instruments. -- (a) Whoever conducts or attempts

to conduct a financial transaction: (1) with the intent to promote the carrying on of specified

unlawful activity; or (2) with the intent to conceal or disguise the nature, location, source,

ownership, or control of property believed to be the proceeds of specified unlawful activity; or (3)

with the intent to avoid a transaction reporting requirement under state law; or (4) knowing that

the transaction is designed in whole or in part: (i) to conceal or disguise the nature, the location,

the source, the ownership, or the control of the proceeds of specified unlawful activity; or (ii) to

avoid a transaction reporting requirement under state law the laws of this state or of the United

States; shall be punished by a fine of not more than five hundred thousand dollars ($500,000) or

twice the value of the property involved in the transaction, whichever is greater, or by

imprisonment for not more than twenty (20) years, or both.

      (b) Whoever conducts or attempts to conduct a financial transaction: (1) knowing that

the property involved in the transaction represents the proceeds of some form of unlawful

activity, or has been or is being used to conduct or facilitate some form of unlawful activity; or

(2) involving property represented as the proceeds of some form of unlawful activity, by a law

enforcement officer or other person working at the direction or with the approval of an official

authorized to investigate or prosecute violations of this section; shall be punished by a fine of not

more than five hundred thousand dollars ($500,000) or twice the value of the property involved in

the transaction, whichever is greater, or by imprisonment for not more than twenty (20) years, or

both.

      (c) Whoever is convicted of conducting or attempting to conduct a financial transaction

described in subsection (a) or (b) of this section is liable to the state of Rhode Island for a civil

penalty of not more than the greater of:

      (1) The value of the property, funds, or monetary instruments involved in the transaction;

or

      (2) Ten thousand dollars ($10,000).

      (d) As used in this section:

      (1) "Conducts" includes initiating, concluding, or participating in initiating or concluding

a transaction;

      (2) "Financial institution" means any institution organized under title 19, or any

institution having the definition given that term in 31 U.S.C. section 5312, where applicable,

including, but not limited to, banks, savings banks, bank associations, trust companies, loan and

investment companies, savings and loan companies, building-loan associations, credit unions,

deposit-insurance companies, and any other depository required by law to file reports with the

Rhode Island department of business regulation;

      (3) "Financial transaction" means a transaction involving the movement of funds;

      (4) "Knowing that the property involved in a financial transaction represents the

proceeds of some form of unlawful activity" means that the person knew the property involved in

the transaction represented proceeds from some form, though not necessarily which form, of

activity that constitutes a felony under state law, regardless of whether or not the activity is

specified in subdivision (7) of this subsection.

      (5) "Monetary instruments" means coin or currency of the United States or any other

country, travelers' checks, personal checks, bank checks, money orders, investment securities in

bearer form or in such form that title to them passes upon delivery, and negotiable instruments in

bearer form or in such form that title to them passes upon delivery;

      (6) "Specified unlawful activity" includes:

      (A) Any act or activity declared a felony pursuant to title 19;

      (B) Any act or activity declared a felony pursuant to chapter 28 of title 21;

      (C) Any act or acts prohibited by the Rhode Island Racketeer Influenced and Corrupt

Organizations Act (RICO), chapter 15 of title 7;

      (D) Any act constituting a felony pursuant to this title.

      (7) "Transaction" includes a purchase, sale, loan, pledge, gift, transfer, delivery, or other

disposition, and with respect to a financial institution includes a deposit, withdrawal, transfer

between accounts, exchange of currency, loan, extension of credit, purchase or sale of any stock,

bond, certificate of deposit, or other monetary instrument, or any other payment, transfer, or

delivery by, through, or to a financial institution, by whatever means effected.

      (e) Nothing in this chapter shall be construed to duplicate or prevent the application or

effect of 18 U.S.C. section 1956, or of any provision of state or other law imposing criminal

penalties or affording civil remedies in addition to those provided for in this chapter.

     SECTION 2. This act shall take effect upon passage.

=======

LC01326

=======