House of Representatives

HB 2266

money laundering; applicability; financial institution

(now: racketeering; civil liability; financial institution)

Sponsors: Representative Voss

DPA S/E	Committee on Judiciary
w/d	Committee on Financial Institutions & Insurance
dpa	Caucus and COW
x	As Passed the House

HB 2266 as introduced exempts financial institutions from applicability of one section of Arizona law relating to money laundering.

History

Current law provides that a person is guilty of money laundering in the second degree who acquires or maintains an interest in, transacts, transfers, transports, receives or conceals the existence or nature of racketeering proceeds knowing or having reason to know that they are the proceeds of an offense. This section requires no specific intent on the part of the actor and is a Class 3 felony (3.5 years/up to $150,000 fine for persons; up to $1 million fine for enterprises).

The civil racketeering statute in its current form allows a financial institution to be held liable for damages three times the amount of the money involved in money laundering in the second degree.

The Judiciary Committee adopted a strike-everything amendment. The strike-everything amendment contains the following provisions:

· Exempts certain financial institutions from civil liability for acquiring or maintaining an interest in, transporting, transacting, transferring or receiving funds belonging to a person other than the person presenting the funds unless there is knowledge that the funds are the proceeds of an offense.

The Judiciary Committee amendment was adopted in Committee of the Whole.

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44th Legislature

Second Regular Session 2 March 12, 2001

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