Official Summary Text
SB 1208, as amended, Grayson.
Money laundering: digital financial assets.
Existing law makes it a crime to engage in money laundering, defined as conducting a transaction involving a monetary instrument of specified value through a financial institution with the specific intent to promote or facilitate criminal activity or knowing that the monetary instrument represents the proceeds of or is derived from the proceeds of criminal activity.
This bill would expand
the crime of
money laundering to include conducting a transaction involving a monetary instrument of specified value using digital financial assets, as described. The bill would make other technical, nonsubstantive changes, as provided. By expanding the scope of a crime, this bill would impose a state-mandated local program.
Existing law, the California Control of Profits of Organized Crime Act, establishes a procedure for the forfeiture of property and proceeds acquired through a pattern of criminal profiteering activity, as defined, upon the conviction of the underlying criminal offense, including money laundering, and requires the prosecuting agency to file a petition of forfeiture in conjunction with certain criminal proceedings. Existing law authorizes any person claiming an interest in property or proceeds subject to forfeiture to file with the superior court in which the forfeiture action is pending a verified claim stating their interest in the property or proceeds, as specified.
This bill would authorize a law enforcement officer or prosecuting agency, as defined, to obtain a search warrant to seize digital financial assets or
wallets, accounts, or similar things containing digital financial assets (collectively “digital financial assets”) upon a showing of probable cause that the digital financial assets contain proceeds of a crime or proceeds traceable to a crime or have been used to facilitate a crime. The bill would require the search warrant to specify any centralized exchanges, addresses, or other locations from which the digital financial assets will be seized, to describe how the warrant will be served, and to specify the amount of digital financial assets to be seized, as specified. The bill would authorize, within 180 days of any seizure, a prosecuting agency to initiate a special proceeding to forfeit the seized digital financial assets, including providing notice to all readily ascertainable potential owners of the digital financial assets and anyone with a known security interest. The bill would require any person with a claim to the seized digital financial assets to file a verified claim under penalty of perjury and
supported by admissible evidence within 30 days of receiving notice from the prosecuting agency, as specified. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would provide a process for a court to adjudicate and resolve these verified claims, as specified. The bill would require the court, after all the claims are resolved, to issue a final judgment forfeiting the remaining digital financial assets and would provide a process for a prosecuting agency to distribute the remaining digital assets to victims, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.