Statutes > Illinois Statutes > CHAPTER 720 CRIMINAL OFFENSES > 720 ILCS 5/ Criminal Code of 1961. > Article 29b - Money Laundering

Article 29b - Money Laundering


      (720 ILCS 5/Art. 29B heading)
ARTICLE 29B. MONEY LAUNDERING

    (720 ILCS 5/29B‑1)(from Ch. 38, par. 29B‑1)
    Sec. 29B‑1. (a) A person commits the offense of money laundering:
        (1) when, knowing that the property involved in a
    financial transaction represents the proceeds of some form of unlawful activity, he or she conducts or attempts to conduct such a financial transaction which in fact involves criminally derived property:
            (A) with the intent to promote the carrying on
        of the unlawful activity from which the criminally derived property was obtained; or
            (B) where he or she knows or reasonably should
        know that the financial transaction is designed in whole or in part:
                (i) to conceal or disguise the nature, the
            location, the source, the ownership or the control of the criminally derived property; or
                (ii) to avoid a transaction reporting
            requirement under State law; or
        (1.5) when he or she transports, transmits, or
    transfers, or attempts to transport, transmit, or transfer a monetary instrument:
            (A) with the intent to promote the carrying on of
        the unlawful activity from which the criminally derived property was obtained; or
            (B) knowing, or having reason to know, that the
        financial transaction is designed in whole or in part:
                (i) to conceal or disguise the nature, the
            location, the source, the ownership or the control of the criminally derived property; or
                (ii) to avoid a transaction reporting
            requirement under State law; or
        (2) when, with the intent to:
            (A) promote the carrying on of a specified
        criminal activity as defined in this Article; or
            (B) conceal or disguise the nature, location,
        source, ownership, or control of property believed to be the proceeds of a specified criminal activity as defined by subdivision (b)(6); or
            (C) avoid a transaction reporting requirement
        under State law,
    he or she conducts or attempts to conduct a financial
    transaction involving property he or she believes to be the proceeds of specified criminal activity as defined by subdivision (b)(6) or property used to conduct or facilitate specified criminal activity as defined by subdivision (b)(6).
    (b) As used in this Section:
        (0.5) "Knowing that the property involved in a
    financial transaction represents the proceeds of some form of unlawful activity" means that the person knew the property involved in the transaction represented proceeds from some form, though not necessarily which form, of activity that constitutes a felony under State, federal, or foreign law.
        (1) "Financial transaction" means a purchase, sale,
    loan, pledge, gift, transfer, delivery or other disposition utilizing criminally derived property, and with respect to financial institutions, includes a deposit, withdrawal, transfer between accounts, exchange of currency, loan, extension of credit, purchase or sale of any stock, bond, certificate of deposit or other monetary instrument, use of safe deposit box, or any other payment, transfer or delivery by, through, or to a financial institution. For purposes of clause (a)(2) of this Section, the term "financial transaction" also means a transaction which without regard to whether the funds, monetary instruments, or real or personal property involved in the transaction are criminally derived, any transaction which in any way or degree: (1) involves the movement of funds by wire or any other means; (2) involves one or more monetary instruments; or (3) the transfer of title to any real or personal property. The receipt by an attorney of bona fide fees for the purpose of legal representation is not a financial transaction for purposes of this Section.
        (2) "Financial institution" means any bank; saving
    and loan association; trust company; agency or branch of a foreign bank in the United States; currency exchange; credit union, mortgage banking institution; pawnbroker; loan or finance company; operator of a credit card system; issuer, redeemer or cashier of travelers checks, checks or money orders; dealer in precious metals, stones or jewels; broker or dealer in securities or commodities; investment banker; or investment company.
        (3) "Monetary instrument" means United States coins
    and currency; coins and currency of a foreign country; travelers checks; personal checks, bank checks, and money orders; investment securities; bearer negotiable instruments; bearer investment securities; or bearer securities and certificates of stock in such form that title thereto passes upon delivery.
        (4) "Criminally derived property" means: (A) any
    property, real or personal, constituting or derived from proceeds obtained, directly or indirectly, from activity that constitutes a felony under State, federal, or foreign law; or (B) any property represented to be property constituting or derived from proceeds obtained, directly or indirectly, from activity that constitutes a felony under State, federal, or foreign law.
        (5) "Conduct" or "conducts" includes, in addition to
    its ordinary meaning, initiating, concluding, or participating in initiating or concluding a transaction.
        (6) "Specified criminal activity" means any violation
    of Section 29D‑15.1 (720 ILCS 5/29D‑15.1) and any violation of Article 29D of this Code.
        (7) "Director" means the Director of State Police or
    his or her designated agents.
        (8) "Department" means the Department of State Police
    of the State of Illinois or its successor agency.
        (9) "Transaction reporting requirement under State
    law" means any violation as defined under the Currency Reporting Act.
    (c) Sentence.
        (1) Laundering of criminally derived property of a
    value not exceeding $10,000 is a Class 3 felony;
        (2) Laundering of criminally derived property of a
    value exceeding $10,000 but not exceeding $100,000 is a Class 2 felony;
        (3) Laundering of criminally derived property of a
    value exceeding $100,000 but not exceeding $500,000 is a Class 1 felony;
        (4) Money laundering in violation of subsection
    (a)(2) of this Section is a Class X felony;
        (5) Laundering of criminally derived property of a
    value exceeding $500,000 is a Class 1 non‑probationable felony;
        (6) In a prosecution under clause (a)(1.5)(B)(ii) of
    this Section, the sentences are as follows:
            (A) Laundering of property of a value not
        exceeding $10,000 is a Class 3 felony;
            (B) Laundering of property of a value exceeding
        $10,000 but not exceeding $100,000 is a Class 2 felony;
            (C) Laundering of property of a value exceeding
        $100,000 but not exceeding $500,000 is a Class 1 felony;
            (D) Laundering of property of a value exceeding
        $500,000 is a Class 1 non‑probationable felony.
    (d) Evidence. In a prosecution under this Article, either party may introduce the following evidence pertaining to the issue of whether the property or proceeds were known to be some form of criminally derived property or from some form of unlawful activity:
        (1) A financial transaction was conducted or
    structured or attempted in violation of the reporting requirements of any State or federal law; or
        (2) A financial transaction was conducted or
    attempted with the use of a false or fictitious name or a forged instrument; or
        (3) A falsely altered or completed written instrument
    or a written instrument that contains any materially false personal identifying information was made, used, offered or presented, whether accepted or not, in connection with a financial transaction; or
        (4) A financial transaction was structured or
    attempted to be structured so as to falsely report the actual consideration or value of the transaction; or
        (5) A money transmitter, a person engaged in a trade
    or business or any employee of a money transmitter or a person engaged in a trade or business, knows or reasonably should know that false personal identifying information has been presented and incorporates the false personal identifying information into any report or record; or
        (6) The criminally derived property is transported or
    possessed in a fashion inconsistent with the ordinary or usual means of transportation or possession of such property and where the property is discovered in the absence of any documentation or other indicia of legitimate origin or right to such property; or
        (7) A person pays or receives substantially less than
    face value for one or more monetary instruments; or
        (8) A person engages in a transaction involving one
    or more monetary instruments, where the physical condition or form of the monetary instrument or instruments makes it apparent that they are not the product of bona fide business or financial transactions.
    (e) Duty to enforce this Article.
        (1) It is the duty of the Department of State Police,
    and its agents, officers, and investigators, to enforce all provisions of this Article, except those specifically delegated, and to cooperate with all agencies charged with the enforcement of the laws of the United States, or of any state, relating to money laundering. Only an agent, officer, or investigator designated by the Director may be authorized in accordance with this Section to serve seizure notices, warrants, subpoenas, and summonses under the authority of this State.
        (2) Any agent, officer, investigator, or peace
    officer designated by the Director may: (A) make seizure of property pursuant to the provisions of this Article; and (B) perform such other law enforcement duties as the Director designates. It is the duty of all State's Attorneys to prosecute violations of this Article and institute legal proceedings as authorized under this Article.
    (f) Protective orders.
        (1) Upon application of the State, the court may
    enter a restraining order or injunction, require the execution of a satisfactory performance bond, or take any other action to preserve the availability of property described in subsection (h) for forfeiture under this Article:
            (A) upon the filing of an indictment,
        information, or complaint charging a violation of this Article for which forfeiture may be ordered under this Article and alleging that the property with respect to which the order is sought would be subject to forfeiture under this Article; or
            (B) prior to the filing of such an indictment,
        information, or complaint, if, after notice to persons appearing to have an interest in the property and opportunity for a hearing, the court determines that:
                (i) there is probable cause to believe that
            the State will prevail on the issue of forfeiture and that failure to enter the order will result in the property being destroyed, removed from the jurisdiction of the court, or otherwise made unavailable for forfeiture; and
                (ii) the need to preserve the availability of
            the property through the entry of the requested order outweighs the hardship on any party against whom the order is to be entered.
            Provided, however, that an order entered pursuant
        to subparagraph (B) shall be effective for not more than 90 days, unless extended by the court for good cause shown or unless an indictment, information, complaint, or administrative notice has been filed.
        (2) A temporary restraining order under this
    subsection may be entered upon application of the State without notice or opportunity for a hearing when an indictment, information, complaint, or administrative notice has not yet been filed with respect to the property, if the State demonstrates that there is probable cause to believe that the property with respect to which the order is sought would be subject to forfeiture under this Section and that provision of notice will jeopardize the availability of the property for forfeiture. Such a temporary order shall expire not more than 30 days after the date on which it is entered, unless extended for good cause shown or unless the party against whom it is entered consents to an extension for a longer period. A hearing requested concerning an order entered under this paragraph shall be held at the earliest possible time and prior to the expiration of the temporary order.
        (3) The court may receive and consider, at a hearing
    held pursuant to this subsection (f), evidence and information that would be inadmissible under the Illinois rules of evidence.
        (4) Order to repatriate and deposit.
            (A) In general. Pursuant to its authority to
        enter a pretrial restraining order under this Section, the court may order a defendant to repatriate any property that may be seized and forfeited and to deposit that property pending trial with the Illinois State Police or another law enforcement agency designated by the Illinois State Police.
            (B) Failure to comply. Failure to comply with an
        order under this subsection (f) is punishable as a civil or criminal contempt of court.
    (g) Warrant of seizure. The State may request the
    issuance of a warrant authorizing the seizure of property described in subsection (h) in the same manner as provided for a search warrant. If the court determines that there is probable cause to believe that the property to be seized would be subject to forfeiture, the court shall issue a warrant authorizing the seizure of such property.
    (h) Forfeiture.
        (1) The following are subject to forfeiture:
            (A) any property, real or personal, constituting,
        derived from, or traceable to any proceeds the person obtained directly or indirectly, as a result of a violation of this Article;
            (B) any of the person's property used, or
        intended to be used, in any manner or part, to commit, or to facilitate the commission of, a violation of this Article;
            (C) all conveyances, including aircraft, vehicles
        or vessels, which are used, or intended for use, to transport, or in any manner to facilitate the transportation, sale, receipt, possession, or concealment of property described in subparagraphs (A) and (B), but:
                (i) no conveyance used by any person as a
            common carrier in the transaction of business as a common carrier is subject to forfeiture under this Section unless it appears that the owner or other person in charge of the conveyance is a consenting party or privy to a violation of this Article;
                (ii) no conveyance is subject to forfeiture
            under this Section by reason of any act or omission which the owner proves to have been committed or omitted without his or her knowledge or consent;
                (iii) a forfeiture of a conveyance encumbered
            by a bona fide security interest is subject to the interest of the secured party if he or she neither had knowledge of nor consented to the act or omission;
            (D) all real property, including any right,
        title, and interest (including, but not limited to, any leasehold interest or the beneficial interest in a land trust) in the whole of any lot or tract of land and any appurtenances or improvements, which is used or intended to be used, in any manner or part, to commit, or in any manner to facilitate the commission of, any violation of this Article or that is the proceeds of any violation or act that constitutes a violation of this Article.
        (2) Property subject to forfeiture under this Article
    may be seized by the Director or any peace officer upon process or seizure warrant issued by any court having jurisdiction over the property. Seizure by the Director or any peace officer without process may be made:
            (A) if the seizure is incident to a seizure
        warrant;
            (B) if the property subject to seizure has been
        the subject of a prior judgment in favor of the State in a criminal proceeding, or in an injunction or forfeiture proceeding based upon this Article;
            (C) if there is probable cause to believe that
        the property is directly or indirectly dangerous to health or safety;
            (D) if there is probable cause to believe that
        the property is subject to forfeiture under this Article and the property is seized under circumstances in which a warrantless seizure or arrest would be reasonable; or
            (E) in accordance with the Code of Criminal
        Procedure of 1963.
        (3) In the event of seizure pursuant to paragraph
    (2), forfeiture proceedings shall be instituted in accordance with subsections (i) through (r).
        (4) Property taken or detained under this Section
    shall not be subject to replevin, but is deemed to be in the custody of the Director subject only to the order and judgments of the circuit court having jurisdiction over the forfeiture proceedings and the decisions of the State's Attorney under this Article. When property is seized under this Article, the seizing agency shall promptly conduct an inventory of the seized property and estimate the property's value and shall forward a copy of the inventory of seized property and the estimate of the property's value to the Director. Upon receiving notice of seizure, the Director may:
            (A) place the property under seal;
            (B) remove the property to a place designated by
        the Director;
            (C) keep the property in the possession of the
        seizing agency;
            (D) remove the property to a storage area for
        safekeeping or, if the property is a negotiable instrument or money and is not needed for evidentiary purposes, deposit it in an interest bearing account;
            (E) place the property under constructive seizure
        by posting notice of pending forfeiture on it, by giving notice of pending forfeiture to its owners and interest holders, or by filing notice of pending forfeiture in any appropriate public record relating to the property; or
            (F) provide for another agency or custodian,
        including an owner, secured party, or lienholder, to take custody of the property upon the terms and conditions set by the Director.
        (5) When property is forfeited under this Article,
    the Director shall sell all such property unless such property is required by law to be destroyed or is harmful to the public, and shall distribute the proceeds of the sale, together with any moneys forfeited or seized, in accordance with paragraph (6). However, upon the application of the seizing agency or prosecutor who was responsible for the investigation, arrest or arrests and prosecution which lead to the forfeiture, the Director may return any item of forfeited property to the seizing agency or prosecutor for official use in the enforcement of laws, if the agency or prosecutor can demonstrate that the item requested would be useful to the agency or prosecutor in its enforcement efforts. When any real property returned to the seizing agency is sold by the agency or its unit of government, the proceeds of the sale shall be delivered to the Director and distributed in accordance with paragraph (6).
        (6) All monies and the sale proceeds of all other
    property forfeited and seized under this Article shall be distributed as follows:
            (A) 65% shall be distributed to the metropolitan
        enforcement group, local, municipal, county, or State law enforcement agency or agencies which conducted or participated in the investigation resulting in the forfeiture. The distribution shall bear a reasonable relationship to the degree of direct participation of the law enforcement agency in the effort resulting in the forfeiture, taking into account the total value of the property forfeited and the total law enforcement effort with respect to the violation of the law upon which the forfeiture is based. Amounts distributed to the agency or agencies shall be used for the enforcement of laws.
            (B)(i) 12.5% shall be distributed to the Office
        of the State's Attorney of the county in which the prosecution resulting in the forfeiture was instituted, deposited in a special fund in the county treasury and appropriated to the State's Attorney for use in the enforcement of laws. In counties over 3,000,000 population, 25% shall be distributed to the Office of the State's Attorney for use in the enforcement of laws. If the prosecution is undertaken solely by the Attorney General, the portion provided hereunder shall be distributed to the Attorney General for use in the enforcement of laws.
                (ii) 12.5% shall be distributed to the Office
            of the State's Attorneys Appellate Prosecutor and deposited in the Narcotics Profit Forfeiture Fund of that office to be used for additional expenses incurred in the investigation, prosecution and appeal of cases arising under laws. The Office of the State's Attorneys Appellate Prosecutor shall not receive distribution from cases brought in counties with o