Bill Summary for H 237 (2023-2024)

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Summary date: 

Mar 1 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
House Bill 237 (Public) Filed Wednesday, March 1, 2023
AN ACT TO CRIMINALIZE MONEY LAUNDERING AND TO ESTABLISH AN ENHANCED SENTENCE IF A DEFENDANT IS CONVICTED OF AN OFFENSE AND THE DEFENDANT WAS WEARING A MASK, HOOD, OR OTHER CLOTHING OR DEVICE TO CONCEAL OR ATTEMPT TO CONCEAL THE DEFENDANT'S IDENTITY.
Intro. by Torbett, Greene, Faircloth, Carson Smith.

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Bill summary

Part I

Enacts new GS 14-118.8 setting forth crime of money laundering as follows. Sets forth defined terms criminal activity, financial institution, funds, insurer, and proceeds. Establishes offense of money laundering if a person knowingly does any of the following: (1) acquires or maintains an interest in, conceals, possesses, transfers, or transports the proceeds of criminal activity; (2) conducts, supervises, or facilitates a transaction involving the proceeds of criminal activity; (3) invests, expends, or receives, or offers to invest, expend, or receive, the proceeds of criminal activity or funds that the person believes are the proceeds of criminal activity; (4) finances or invests, or intends to finance or invest, funds that the person believes are intended to further the commission of criminal activity. Specifies that knowledge of the specific nature of the criminal activity giving rise to the proceeds is not required to establish a culpable mental state under GS 14-118.8. Specifies that a person is presumed to believe that funds are the proceeds of or intended to further criminal activity if a law enforcement officer or someone acting at their direction represented those things, regardless of whether or not the officer or designee disclosed their status as a law enforcement officer or someone acting at the officer’s direction.   

If the value of the laundered proceeds or funds is less than $100,000 the offense is punishable as a Class H felony, in addition to any other civil or criminal penalties provided by law. If the value is more than $100,000 the offense is punishable as a Class C felony, in addition to any other civil or criminal penalties provided by law. Specifies that all property of every kind used or intended for use in the course of, derived from, maintained by, or realized through money laundering as set forth in GS 14-118.8 will be subject to forfeiture under the process set forth in GS 75D-5 (pertaining to Racketeer Influenced and Corrupt Organizations (RICO) civil forfeiture).  If the proceeds are related to one scheme or continuing course of conduct, regardless of the source of funds, allows for the conduct to be considered one offense and for aggregation of the value of the proceeds for purposes of determining the classification of the offense. Bars merger of violations of GS 14-118.8 with other offenses.

Specifies that it is a defense to prosecution under GS 14-118.8 if the person acted with intent to facilitate the lawful seizure, forfeiture, or disposition of funds or other legitimate law enforcement purpose pursuant to the laws of this State or the United States. Provides civil liability shield for financial institutions or its agents who have acted lawfully to facilitate the lawful seizure, forfeiture, or disposition of funds from persons who (1) claim an ownership interest in funds involved money laundering or (2) conduct with the financial institution or insurer a transaction concerning funds involved in money laundering.

Makes conforming change to GS 75D-3(c)(1) (RICO definitions) to include reference to GS 14-118.8.

Part II

Enacts new GS 15A-1340.16F, providing for enhanced sentences if a defendant is convicted of a misdemeanor or felony and the defendant was wearing a mask, hood, or other clothing or device to conceal or attempt to conceal the defendant’s identity as follows. Specifies that if a person is convicted of a misdemeanor or felony and it is found as provided in this section that the person wore a mask, hood, or other clothing or device that concealed or attempted to conceal the person's identity at the time of the offense, then the person is guilty of a misdemeanor or felony that is one class higher than the underlying misdemeanor or felony for which the person was convicted. Specifies that new offense does not apply if wearing a mask, hood, or other clothing or device to conceal or attempt to conceal their identity is needed to prove an element of the underlying misdemeanor or felony. Requires allegation of facts for violation of GS 15A-1340.16F along with indictment or information for the underlying misdemeanor or felony offense(s), either in same document or by separate indictment/information. Specifies that the State must the violation of GS 15A-1340.16F beyond a reasonable doubt during the same trial in which the defendant is tried for the offense unless the defendant pleads guilty or no contest to the issues. 

Effective December 1, 2023, and applies to offenses committed on or after that date.