PRINTER'S NO. 1470
No. 1277 Session of 1989
INTRODUCED BY JAMES, MOEHLMANN, CALTAGIRONE, ALLEN, ANGSTADT,
ARGALL, BELARDI, BIRMELIN, BLAUM, BOYES, BUSH, CAWLEY,
CESSAR, CHADWICK, D. F. CLARK, J. H. CLARK, CLYMER, COLAIZZO,
CORNELL, COWELL, DAVIES, DeLUCA, DEMPSEY, DIETTERICK,
DISTLER, DOMBROWSKI, DORR, FARGO, FARMER, FEE, FOX, GEIST,
GIGLIOTTI, GODSHALL, GRUPPO, HAGARTY, HALUSKA, HAYDEN, HAYES,
HERMAN, HOWLETT, JACKSON, JADLOWIEC, JOHNSON, KASUNIC,
KENNEY, KOSINSKI, LaGROTTA, LASHINGER, LEVDANSKY, LLOYD,
MAIALE, MARKOSEK, MARSICO, MAYERNIK, McVERRY, MELIO, MERRY,
MICOZZIE, MILLER, MORRIS, MRKONIC, NAHILL, NAILOR, PHILLIPS,
PICCOLA, PITTS, PRESSMANN, RAYMOND, ROBBINS, ROBINSON, RYBAK,
SAURMAN, SCHEETZ, SEMMEL, SERAFINI, S. H. SMITH,
D. W. SNYDER, STABACK, STEIGHNER, STUBAN, TANGRETTI,
E. Z. TAYLOR, THOMAS, TIGUE, TRELLO, WAMBACH, WESTON, WOGAN,
J. L. WRIGHT, BURD, O'BRIEN, LANGTRY, BATTISTO, F. TAYLOR AND
NOYE, APRIL 24, 1989
REFERRED TO COMMITTEE ON JUDICIARY, APRIL 24, 1989
AN ACT
1 Amending Title 18 (Crimes and Offenses) of the Pennsylvania
2 Consolidated Statutes, providing for dealing in proceeds of
3 unlawful activities.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 18 of the Pennsylvania Consolidated
7 Statutes is amended by adding a section to read:
8 § 5111. Dealing in proceeds of unlawful activities.
9 (a) Offense defined.--A person commits a felony of the first
10 degree if the person, knowing that the property involved in a
11 financial transaction represents the proceeds of unlawful
1 activity, conducts a financial transaction which involves the
2 proceeds of unlawful activity under any of the following
3 circumstances:
4 (1) With the intent to promote the carrying on of the
5 unlawful activity.
6 (2) Knowing that the transaction is designed in whole or
7 in part:
8 (i) to conceal or disguise nature, location, source,
9 ownership or control of the proceeds of unlawful
10 activity; or
11 (ii) to avoid a transaction reporting requirement
12 under State or Federal law.
13 (b) Penalty.--Upon conviction of a violation under
14 subsection (a), a person shall be sentenced to a fine of the
15 greater of $100,000 or twice the value of the property involved
16 in the transaction or to imprisonment for not more than 20
17 years, or both.
18 (c) Civil penalty.--A person who conducts or attempts to
19 conduct a transaction described in subsection (a) is liable to
20 the Commonwealth for a civil penalty of the greater of:
21 (1) the value of the property, funds or monetary
22 instruments involved in the transaction; or
23 (2) $10,000.
24 (d) Cumulative remedies.--Any proceedings under this section
25 shall be in addition to any other criminal penalties or
26 forfeitures authorized under the State law.
27 (e) Investigation and prosecution.--The Attorney General of
28 the Commonwealth shall have jurisdiction to investigate and
29 prosecute or bring civil actions against those who violate the
30 provisions of this section.
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1 (f) Definitions.--As used in this section, the following
2 words and phrases shall have the meanings given to them in this
3 subsection:
4 "Conducts." Includes initiating, concluding or participating
5 in initiating or concluding a transaction.
6 "Financial institution." Any of the following:
7 (1) An insured bank as defined in section 3(h) of the
8 Federal Deposit Insurance Act (64 Stat. 873, 12 U.S.C. §
9 1813(h)).
10 (2) A commercial bank or trust company.
11 (3) A private banker.
12 (4) An agency or bank of a foreign bank in this
13 Commonwealth.
14 (5) An insured institution as defined in section 401(a)
15 of the National Housing Act (48 Stat. 1246, 12 U.S.C. §
16 1724(a)).
17 (6) A thrift institution.
18 (7) A broker or dealer registered with the Securities
19 and Exchange Commission under the Securities Exchange Act of
20 1934 (15 U.S.C. § 78a et seq.).
21 (8) A broker or dealer in securities or commodities.
22 (9) An investment banker or investment company.
23 (10) A currency exchange.
24 (11) An insurer, redeemer or cashier of travelers'
25 checks, checks, money orders or similar instruments.
26 (12) An operator of a credit card system.
27 (13) An insurance company.
28 (14) A dealer in precise metals, stones or jewels.
29 (15) A pawnbroker.
30 (16) A loan or finance company.
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1 (17) A travel agency.
2 (18) A license sender of money.
3 (19) A telegraph company.
4 (20) An agency of the Federal Government or of a state
5 or local government carrying out a duty or power of a
6 business described in this paragraph.
7 (21) Another business or agency carrying out a similar,
8 related or substitute duty or power which the United States
9 Secretary of the Treasury prescribes.
10 "Financial transaction." A transaction involving the
11 movement of funds by wire or other means or involving one or
12 more monetary instruments.
13 "Knowing that the property involved in a financial
14 transaction represents the proceeds of unlawful activity."
15 Knowing that the property involved in the transaction represents
16 proceeds from some form, though not necessarily which form, of
17 unlawful activity, regardless of whether or not the activity is
18 specified in this section.
19 "Monetary instrument." Coin or currency of the United States
20 or of any other country, travelers' checks, personal checks,
21 bank checks, money orders, investment securities in bearer form
22 or otherwise in such form that title thereto passes upon
23 delivery and negotiable instruments in bearer form or otherwise
24 in such form that title thereto passes upon delivery.
25 "Transaction." Includes a purchase, sale, loan, pledge,
26 gift, transfer, delivery or other disposition. With respect to a
27 financial institution, the term includes a deposit, withdrawal,
28 transfer between accounts, exchange of currency, loan, extension
29 of credit, purchase or sale of any stock, bond, certificate of
30 deposit or other monetary instrument and any other payment,
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1 transfer or delivery by, through, or to a financial institution,
2 by whatever means effected.
3 "Unlawful activity." Any activity graded a misdemeanor of
4 the first degree or higher under Federal or State law.
5 Section 2. This act shall take effect immediately.
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