New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle A - Governor's Office › Chapter I - Executive Orders › Part 4 - Executive Orders (Mario M. Cuomo) › Section 4.130 - Executive order no. 130: creating a crime proceeds strike force to investigate and prosecute certain economic activities constituting penal, tax, and banking law violations relating to money laundering

Current through Register Vol. 46, No. 28, July 10, 2024
WHEREAS, the criminal sale of controlled substances is
					 reported to generate over one hundred billion dollars in illegal proceeds each
					 year in this country;
WHEREAS, the operation of other criminal enterprises
					 produces additional criminal revenues;
WHEREAS, these criminal proceeds are disguised to appear as
					 income from legitimate sources in order to conceal their nature, location,
					 source, ownership and/or control;
WHEREAS, the process of disguising the origin, destination
					 and beneficiary of criminal proceeds involves laundering the criminal profits
					 through the use of licensed and unlicensed money transmitters, other financial
					 institutions including those defined in Section 470 of Penal Law, and
					 purportedly legitimate businesses;
WHEREAS, the process of money laundering involves avoidance
					 of currency transaction reporting requirements, non-filing of tax returns or
					 substantial underreporting of taxable income, violation of State money
					 laundering statutes, and the unlawful activity which generates such
					 proceeds;
WHEREAS, the establishment of an effective State response
					 to the problems created by money laundering activities requires a coordinated
					 implementation of criminal investigative techniques, analysis of banking and
					 tax records, implementation of specialized accounting functions, development of
					 particularized prosecutorial skills, and establishment of a cooperative liaison
					 with federal agencies, including but not limited to the Internal Revenue
					 Service, the United States Customs Service, the Department of Justice, the
					 Federal Bureau of Investigation, and the Treasury Department;
WHEREAS, the public interest is best served when matters
					 concerning the public peace, public safety and public justice with respect to
					 money laundering activities are thoroughly investigated and all criminal
					 violations of State Penal, Tax and Banking Laws are criminally prosecuted;
					 and
WHEREAS, the public interest is further served when money
					 laundering activities are thoroughly investigated and all civil violations of
					 State Tax and Banking Laws are civilly prosecuted;
NOW, THEREFORE, I, Mario M. Cuomo, Governor of the State of
					 New York, by virtue of the authority vested in me by the Constitution and laws
					 of the State of New York, and in accordance with the statute and law in such
					 case made and provided, do hereby establish a Strike Force on Crime Proceeds to
					 investigate and civilly or criminally prosecute violations of State Penal, Tax
					 and Banking Laws as hereafter provided.
I. Membership
The members of the Strike Force shall consist of a
					 Director, designated by the Director of Criminal Justice, who shall chair the
					 Strike Force, and representatives designated by the Superintendent of the
					 Banking Department and the Commissioner of the Department of Taxation and
					 Finance, and a Deputy or Assistant Attorney General designated by the Attorney
					 General. The Strike Force shall be under the supervision of the Director of
					 Criminal Justice, in conjunction with the State Drug Enforcement Task Force.
					 Membership in the Task Force shall not limit or impinge upon the
					 Constitutional, statutory, common law, or regulatory power, duty,
					 responsibility or discretion of any of the represented entities or
					 officials.
II.
				  Authorization for the Attorney General to Act
Pursuant to Article IV, Section 3 of the Constitution of
					 the State of New York, the provisions of subdivision three of section 63  of the
					 Executive Law and the statutes and laws in such cases made and provided, the
					 Attorney General or his designated Deputy or Assistant is requested and
					 authorized to Conduct an investigation of the alleged commission of any
					 indictable offense or offenses including Penal, Banking or Tax Laws arising out
					 of money laundering or illegal money transmissions, or other crimes related to
					 this activity or uncovered by the Strike Force on Crime Proceeds and to
					 prosecute the person or persons believed to have committed the same and any
					 crime or offense arising out of such investigation or prosecution or both,
					 including, but not limited to, appearing before and presenting all such matters
					 to a grand jury; and the Superintendent of Banking and Commissioner of Taxation
					 and Finance are requested to authorize the Attorney General or his designated
					 Deputy or Assistant pursuant to the provisions of subdivision three of section 63  of the Executive Law and the statutes and laws in such cases made and
					 provided, to conduct an investigation of the alleged commission of any
					 indictable offense or offenses as provided by the Tax Law or Banking Law
					 respectively, arising out of money laundering or illegal money transmissions,
					 or other crimes related to this activity and to prosecute the person or persons
					 believed to have committed the same, including, but not limited to, appearing
					 before and presenting all such matters to a grand jury, regarding money
					 laundering matters connected with their respective Departments which each is
					 especially required to execute; and pursuant to subdivision 8 of section 63  of
					 the Executive Law, the Attorney General or his designated Deputy or Assistant,
					 shall, whenever it is deemed necessary in connection with any investigation,
					 action or proceeding involving the Strike Force on Crime Proceeds, be empowered
					 to subpoena witnesses, compel their attendance, examine them under oath before
					 himself, his Deputy or Assistant, or a magistrate and require that any books,
					 records, documents or papers which are deemed to be relevant or material be
					 turned over for inspection, examination or audit, pursuant to the Civil
					 Practice Law and Rules.
III. Duties and Responsibilities of the
				  Strike Force on Crime Proceeds
1. The Strike
				  Force shall investigate, coordinate, and, through the Attorney General,
				  prosecute civil or criminal matters involving money laundering activities and
				  Penal, Banking or Tax Law violations connected therewith.
The Strike Force may, as deemed appropriate, investigate
					 the unlawful activities of licensed or unlicensed money transmitters and other
					 financial institutions, enforce criminal provisions of the Banking and Penal
					 Laws, and take such action necessary to terminate the activities of unlicensed
					 money transmitters.
The Strike Force in conjunction with the Department of
					 Taxation and Finance shall facilitate the analysis of information, including
					 books and records, acquired by it, for the purpose of identifying violations of
					 the Tax Law by those suspected of involvement with money laundering activities,
					 and shall, through the Attorney General, prosecute individuals or business
					 entities for violations of the Tax Law or any crime connected with such Tax Law
					 violations. Neither this Order nor the requested designation from the
					 Commissioner of Tax and Finance shall require the disclosure of any tax
					 information, record or form by the Department of Tax and Finance or any of its
					 employees who are on the Strike Force on Crime Proceeds other than for the
					 purpose of preparing and presenting a prosecution of criminal violations of the
					 Tax Law as identified by the Tax Department employees on the Strike
					 Force.
2. The Strike Force
				  shall establish a liaison with interested Federal, State or local agencies or
				  prosecutors and where warranted may share information with these entities,
				  facilitate their activities or cooperate in prosecutions undertaken by
				  them.
3. The Strike Force shall
				  directly, or through one or more of the agencies represented in its membership,
				  enter into an agreement with the United States Treasury Department, one or more
				  of its agencies, and any another appropriate Federal agency, to acquire copies
				  of and information from Currency Transaction Reports (CTR) filed by all
				  financial institutions in New York State, in order to identify violations of
				  the Tax, Banking, or Penal Laws.
4.
				  The Strike Force shall conduct audits to specifically identify and confirm the
				  value of proceeds generated by criminal activity and to reveal the persons or
				  entities involved in producing and laundering those criminal
				  proceeds.
5. The Strike Force shall
				  use State assets forfeiture powers to impound, seize, or attach identified
				  criminal proceeds and as the claiming agent, acting through the Attorney
				  General as the claiming authority, institute forfeiture proceedings.
6. The Strike Force shall, where deemed
				  appropriate and necessary, study, develop, and recommend to the Governor,
				  legislative, regulatory, or policy changes which would enhance the State's
				  effectiveness in disrupting money laundering or associated
				  activities.
7. The Strike Force
				  shall report monthly to the Director of Criminal Justice, except as otherwise
				  prohibited by law, regarding its activities, specifically including information
				  regarding ongoing investigations, civil or criminal prosecutions, and
				  forfeiture proceedings.