A BILL TO BE ENTITLED
AN ACT to criminalize money laundering and to establish an enhanced sentence if a defendant is convicted of an offense and the defendant was wearing a mask, hood, or other clothing or device to conceal or attempt to conceal the defendant's identity.
The General Assembly of North Carolina enacts:

part i. criminalize money laundering
SECTION 1.(a)  Article 20 of Chapter 14 of the General Statutes is amended by adding a new section to read:
"§ 14‑118.8.  Money laundering.
(a)	Definitions. – The following definitions apply in this section:
(1)	Criminal activity. – An offense that is (i) classified as a felony under the laws of this State or the United States or (ii) punishable by imprisonment for more than one year under the laws of another state.
(2)	Financial institution. – As defined in G.S. 14‑119.
(3)	Funds. – Includes any of the following:
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.
d.	Currency or its equivalent, including an electronic fund, a personal check, a bank check, a traveler's check, a money order, a bearer negotiable instrument, a bearer investment security, a bearer security, a certificate of stock in a form that allows title to pass on delivery, or a digital currency.
(4)	Insurer. – As defined in G.S. 58‑1‑5.
(5)	Proceeds. – Funds acquired or derived directly or indirectly from, produced through, realized through, or used in the commission of any act.
(b)	Offense. – A person commits the offense of money laundering if the person knowingly and willingly does any of the following involving proceeds of criminal activity or funds that alone or aggregated pursuant to subsection (g) of this section exceed ten thousand dollars ($10,000):
(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.
(4)	Finances or invests, or intends to finance or invest, funds that the person believes are intended to further the commission of criminal activity.
(5)	Uses, conspires to use, or attempts to use the proceeds of criminal activity to conduct or attempt to conduct a transaction or make other disposition with the intent to conceal or disguise the nature, location, source, ownership, or control of the proceeds of criminal activity.
(6)	Uses the proceeds of criminal activity with the intent to promote, in whole or in part, the commission of criminal activity.
(c)	Knowledge of Criminal Activity. – Knowledge of the nature of the criminal activity giving rise to the proceeds is required to establish a culpable mental state under this section.
(d)	Defense. – 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.
(e)	Punishment. – In addition to any other civil or criminal penalties provided by law, a person who commits an offense under subsection (b) of this section shall be punished as follows:
(1)	If the value of the proceeds or funds is less than one hundred thousand dollars ($100,000), the person is guilty of a Class H felony.
(2)	If the value of the proceeds or funds is one hundred thousand dollars ($100,000) or more, the person is guilty of a Class C felony.
(f)	Forfeiture. – In addition to the punishment set forth in subsection (e) of this section, all property of every kind used or intended for use in the course of, derived from, maintained by, or realized through a violation of subsection (b) of this section shall be subject to forfeiture under the procedure set forth in either G.S. 14‑2.3 or G.S. 75D‑5.
(g)	Aggregation. – If the 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 under subsection (e) of this section.
(h)	Merger. – Each violation of subsection (b) of this section constitutes a separate offense and shall not merge with any other offense.
(i)	Conspiracy. – A person who conspires to commit an offense under subsection (b) of this section shall be punished as provided in subsection (e) of this section, and all other provisions of this section shall apply to that offense. It shall not be a defense to conspiracy to commit an offense under subsection (b) of this section that the person with whom the defendant is alleged to have conspired was a law enforcement officer or a person acting at the direction of a law enforcement officer that represented to the defendant that the funds are proceeds of or are intended to further the commission of criminal activity.
(j)	Protection from Liability. – Notwithstanding any provision of law to the contrary, a financial institution, or an agent of the financial institution, acting in a manner described by subsection (d) of this section is not liable for civil damages to a person who (i) claims an ownership interest in funds involved in a violation of subsection (b) of this section or (ii) conducts with the financial institution or insurer a transaction concerning funds involved in a violation of subsection (b) of this section."
SECTION 1.(b)  G.S. 75D‑3(c)(1)c. reads as rewritten:
"c.	Any conduct involved in a "money laundering" activity, including activity covered by G.S. 14‑118.8; and"

part ii. enhanced sentence for wearing a mask wHile committing a criminal offense
SECTION 2.  Article 81B of Chapter 15A of the General Statutes is amended by adding a new section to read:
"§ 15A‑1340.16F.  Enhanced sentence if defendant is convicted of a misdemeanor or felony and the defendant was wearing a mask, hood, or other clothing or device to conceal or attempt to conceal the defendant's identity.
(a)	If a person is convicted of a misdemeanor or felony and it is found as provided in this section that the person wore a mask, hood, or other clothing or device that concealed or attempted to conceal the person's identity at the time of the offense, then the person is guilty of a misdemeanor or felony that is one class higher than the underlying misdemeanor or felony for which the person was convicted. Notwithstanding any provision of this Article to the contrary, the court shall impose a sentence of imprisonment for a person convicted of an offense enhanced under this section if, after enhancement, the class of offense and prior record level permit active punishment as a sentence disposition.
(b)	An indictment or information for the offense shall allege in that indictment or information or in a separate indictment or information the facts that qualify the offense for an enhancement under this section. One pleading is sufficient for all offenses that are tried at a single trial.
(c)	The State shall prove the issues set out in subsection (a) of this section beyond a reasonable doubt during the same trial in which the defendant is tried for the offense unless the defendant pleads guilty or no contest to the issues. If the defendant pleads guilty or no contest to the offense but pleads not guilty to the issues laid out in subsection (a) of this section, then a jury shall be impaneled to determine the issues.
(d)	Subsection (a) of this section does not apply if the evidence of wearing a mask, hood, or other clothing or device to conceal or attempt to conceal the person's identity is needed to prove an element of the underlying misdemeanor or felony."

part iii. effective date
SECTION 3.  This act becomes effective December 1, 2023, and applies to offenses committed on or after that date.