HomeMy WebLinkAboutMINUTES - 04031990 - 1.48 1®®48
TO: BOARD OF SUPERVISORS
t� °f Contra
FROM:
Phil Batchelor, County Administrator oV _ Costa
County
DATE: March 26 1990 �s
SUBJECT: LEGISLATION: AB 4139 (Eaves)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)A BACKGROUND AND JUSTIFICATION
RECOPP ENDATION
Adopt a position in SUPPORT of AB 4139 by Assemblyman Eaves which
would make it a criminal offense for any financial institution to
knowingly participate in drug money laundering and which would
prohibit any such financial institution from doing business in
California in the future.
BACKGROUND:
Under existing law, it is a crime for any person to conduct or
attempt to conduct a transaction through a financial institution
involving defined monetary instruments with a value of $5 ,000 or
more for specified criminal purposes or knowing that the monetary
instrument represents the proceeds of or is directly or
indirectly from the proceeds of criminal activity.
Assemblyman Eaves has introduced AB 4139 which, as introduced,
would make it a crime for any financial institution to knowingly
participate in a drug money laundering activity and would punish
the financial institution by imposing a fine equal to three times
the amount of money that was involved in the drug money
laundering transaction. In addition, the financial institution
would be forever barred from doing business in California, except
as a court otherwise ruled, based on whether a report was made to
a law enforcement agency within ten days of discovering that a
drug money laundering transaction had taken place.
It appears that passage of AB 4139 would discourage employees or
CONTINUED ON ATTACHMENT:Y@S YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOA[[[RD COMMITTEE
APPROVE OTHER
SIGNATURES
ACTION OF BOARD ON April , APPROVED AS RECOMMENDED _X OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
Y UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: ATTESTED
APR 3 1990
Please see Page 2 . PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382BY
(10/88) ,DEPUTY
officers of financial institutions from . failing to disclose
transactions which might be drug money laundering to law
enforcement agencies. In this way, the bill might assist law
enforcement agencies in discovering instances of drug money
laundering. By doing so the bill relates directly to provisions
of the Board of Supervisors' war on drugs, and specifically to
concerns which have been expressed to the Action Plan Advisory
Committee by staff to Supervisor Fanden and which were
subsequently incorporated into the Action Plan. It, therefore,
seems entirely appropriate for the Board to indicate its support
for AB 4139.
cc: County Administrator
District Attorney
Sheriff-Coroner
County Probation Officer
Health Services Director
Drug Program Administrator
Chair, Drug Abuse Advisory Committee
Les Spahnn, SRJ. Jackson, Barish & Associates