NY Penal Law § 470.05: Money Laundering in the Fourth Degree

In New York, the procedure you undertake in order to conceal criminal activity can amount to a crime. One of these offenses is referred to as money laundering. Money laundering entails transforming financial gains from criminal activity into what appears to be legally earned funds. There are eight offenses related to money laundering in the New York criminal code.  They are money laundering in the first, second, third and fourth degrees, and money laundering in support of terrorism in the first, second, third and fourth degrees. The particular charge that you will face depends on the amount of money involved in the act and your purpose for the money laundering.  You could be prosecuted under New York Penal Law § 470.05 for money laundering in the fourth degree if you are aware that a financial transaction represents the proceeds of criminal conduct and you:

• Perform at least one financial transaction with intent to continue  the criminal conduct or with intent to violate federal tax legislation,
• Perform at least one financial transaction being fully aware that it was designed to shroud the nature, location or control of the criminal conduct
• Perform at least one financial transaction that is intended to avoid required transaction reporting and the amount of the transaction or transactions is over $5000 in total

Are aware that at least one money instrument represents the proceeds of criminal activity and you transport the money instrument with intent to:

• Promote carrying on the criminal activity
• Keep secrete the nature, location or control of the criminal activity
• Avoid transaction reporting and the amount of the pecuniary instrument or instruments is over $10,000.

Perform at least one financial transaction that:

• Involves property that is the proceeds of criminal conduct or property that was used to conduct or facilitate criminal conduct with intent to promote that conduct, 
• hide the nature, location or control of the conduct or 
• avoid transaction reporting and the transaction or transactions exceeds $10,000.

An Example

After a long day of work, Jean takes the short stroll from his place of business to his bank, carrying the day’s deposits with him.  Along the way, Peter robs Jean at gunpoint, taking more than $10,000 in cash. In order to avoid raising suspicions from his bank, instead of making one deposit of the entire amount in his bank account, Peter opens 4 new bank accounts and deposits a portion of the stolen cash in each of the accounts. In this scenario, Peter could be prosecuted for money laundering. He committed the crime of robbery, and then attempted to conceal his crime by making a number of separate bank transactions using the proceeds from his criminal activity.

Offenses that are Related

Money laundering in the third degree: New York Penal Law § 470.10

Money laundering in the second degree: New York Penal Law § 470.15

Money laundering in the first degree: New York Penal Law § 470.20

Money laundering in support of terrorism in the fourth degree: New York Penal Code § 470.21

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

Money laundering in support of terrorism in the second degree: New York Penal Law § 470.23

Money laundering in support of terrorism in the first degree: New York Penal Law § 470.24

Possible Defenses

In order for you to be successfully convicted of money laundering in the fourth degree, the prosecutor needs to demonstrate that you had the intent to launder the money in question. If you are able to show that you were not aware  that the money was gained through criminal activity, then you would not have had requisite intent.

The Sentence

Money laundering in the fourth degree is categorized as a class E felony. Should you be convicted of this crime, your sentence could include up to 4 years in prison, 5 years of probation, and a requirement to pay a substantial fine.