N.Y. Comp. Codes R. & Regs. tit. 9 § 4.130
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.
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.
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.
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.
The Strike Force on Criminal Proceeds may request and shall receive the full cooperation and assistance of any agency represented by its membership and, in addition thereto, of any State criminal justice agency.
Signed: Mario M. CuomoDated: December 4, 1989
N.Y. Comp. Codes R. & Regs. Tit. 9 § 4.130