CHAPTER 34. MONEY LAUNDERING

PENAL CODE

TITLE 7. OFFENSES AGAINST PROPERTY

CHAPTER 34. MONEY LAUNDERING

Sec. 34.01. DEFINITIONS. In this chapter:

(1) "Criminal activity" means any offense, including any

preparatory offense, that is:

(A) classified as a felony under the laws of this state or the

United States; or

(B) punishable by confinement for more than one year under the

laws of another state.

(2) "Funds" includes:

(A) coin or paper money of the United States or any other

country that is designated as legal tender and that circulates

and is customarily used and accepted as a medium of exchange in

the country of issue;

(B) United States silver certificates, United States Treasury

notes, and Federal Reserve System notes;

(C) an official foreign bank note that is customarily used and

accepted as a medium of exchange in a foreign country and a

foreign bank draft; and

(D) currency or its equivalent, including an electronic fund,

personal check, bank check, traveler's check, money order, bearer

negotiable instrument, bearer investment security, bearer

security, or certificate of stock in a form that allows title to

pass on delivery.

(3) "Financial institution" has the meaning assigned by Section

32.01.

(4) "Proceeds" means funds acquired or derived directly or

indirectly from, produced through, or realized through an act.

Added by Acts 1993, 73rd Leg., ch. 761, Sec. 2, eff. Sept. 1,

1993.

Amended by:

Acts 2005, 79th Leg., Ch.

1162, Sec. 1, eff. September 1, 2005.

Sec. 34.02. MONEY LAUNDERING. (a) A person commits an offense

if the person knowingly:

(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; or

(4) finances or invests or intends to finance or invest funds

that the person believes are intended to further the commission

of criminal activity.

(a-1) Knowledge of the specific nature of the criminal activity

giving rise to the proceeds is not required to establish a

culpable mental state under this section.

(b) For purposes of this section, a person is presumed to

believe that funds are the proceeds of or are intended to further

the commission of criminal activity if a peace officer or a

person acting at the direction of a peace officer represents to

the person that the funds are proceeds of or are intended to

further the commission of criminal activity, as applicable,

regardless of whether the peace officer or person acting at the

peace officer's direction discloses the person's status as a

peace officer or that the person is acting at the direction of a

peace officer.

(c) It is a defense to prosecution under this section that 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.

(d) It is a defense to prosecution under this section that the

transaction was necessary to preserve a person's right to

representation as guaranteed by the Sixth Amendment of the United

States Constitution and by Article 1, Section 10, of the Texas

Constitution or that the funds were received as bona fide legal

fees by a licensed attorney and at the time of their receipt, the

attorney did not have actual knowledge that the funds were

derived from criminal activity.

(e) An offense under this section is:

(1) a state jail felony if the value of the funds is $1,500 or

more but less than $20,000;

(2) a felony of the third degree if the value of the funds is

$20,000 or more but less than $100,000;

(3) a felony of the second degree if the value of the funds is

$100,000 or more but less than $200,000; or

(4) a felony of the first degree if the value of the funds is

$200,000 or more.

(f) For purposes of this section, if proceeds of criminal

activity are related to one scheme or continuing course of

conduct, whether from the same or several sources, the conduct

may be considered as one offense and the value of the proceeds

aggregated in determining the classification of the offense.

(g) For purposes of this section, funds on deposit at a branch

of a financial institution are considered the property of that

branch and any other branch of the financial institution.

(h) If conduct that constitutes an offense under this section

also constitutes an offense under any other law, the actor may be

prosecuted under this section, the other law, or both.

Added by Acts 1993, 73rd Leg., ch. 761, Sec. 2, eff. Sept. 1,

1993.

Amended by:

Acts 2005, 79th Leg., Ch.

1162, Sec. 2, eff. September 1, 2005.

Sec. 34.021. PROTECTION FROM CIVIL LIABILITY. Notwithstanding

Section 1.03(c), a financial institution or an agent of the

financial institution acting in a manner described by Section

34.02(c) is not liable for civil damages to a person who:

(1) claims an ownership interest in funds involved in an offense

under Section 34.02; or

(2) conducts with the financial institution or an insurer, as

defined by Article 1.02, Insurance Code, a transaction concerning

funds involved in an offense under Section 34.02.

Added by Acts 2005, 79th Leg., Ch.

1162, Sec. 3, eff. September 1, 2005.

Sec. 34.03. ASSISTANCE BY ATTORNEY GENERAL. The attorney

general, if requested to do so by a prosecuting attorney, may

assist in the prosecution of an offense under this chapter.

Added by Acts 1993, 73rd Leg., ch. 761, Sec. 2, eff. Sept. 1,

1993.