FSMC, TITLE 11.  CRIMES

CHAPTER 9
Money Laundering and Proceeds of Crime

Editor's note: Former chapter 9 of this title on Major Crimes (§§ 901-951) was repealed in its entirety by PL 11-72 § 1. This new chapter 9 was enacted by PL 11-72 § 84 and is part of the Revised Criminal Code Act.

SUBCHAPTER III
Confiscation

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PART 7: Production Orders and
Other Information Gathering Powers

SECTIONS

§ 971. Production orders.
§ 972. Evidential value of information.
§ 973. Failure to comply with a production order.
§ 974. Production orders in relation to foreign offenses.
§ 975. Power to search for and seize documents relevant to locating property.
§ 976. Search warrant for location of documents relevant to locating property.
§ 977. Search warrants in relation to foreign offenses.
§ 978. Monitoring orders.
§ 979. Monitoring orders not to be disclosed.

§ 971. Production orders.

(1) Where a defendant has been charged with or convicted of a serious offense, and a police officer has probable cause to believe that any person has possession or control of:

(a) a document relevant to identifying, locating or quantifying property of the defendant, or to identifying or locating a document necessary for the transfer of property of the defendant; or

(b) a document relevant to identifying, locating or quantifying tainted property in relation to the offense, or to identifying or locating a document necessary for the transfer of tainted property in relation to the offense; the police officer may apply, ex parte and in writing, to a justice for an order against the person suspected of having possession or control of a document of the kind referred. The application shall be supported by an affidavit.

(2) The justice may, if he or she considers there is probable cause for so doing, make an order under this act, that the person produce to a police officer, at a time and place specified in the order, any documents of the kind referred to in subsection (1) of this section.

(3) A police officer to whom documents are produced may:

(a) inspect the documents;

(b) make copies of the documents; or

(c) retain the documents for so long as is reasonably necessary for the purposes of this act.

(4) Where a police officer retains the documents produced, the officer shall make a copy of the documents available to the person who produced them.

(5) A person is not entitled to refuse to produce documents ordered to be produced under this section on the grounds that the document might tend to incriminate that person or make such person liable to a penalty.

Source: PL 11-72 § 165.

Cross-reference: The statutory provisions on the Executive and the President are found in title 2 of this code. The statutory provisions on the Judiciary and the FSM Supreme Court are found in title 4 of this code.

§ 972. Evidential value of information.

(1) Where a person produces a document pursuant to an order issued under this Act, the production of the document, or any information, document, or thing obtained as a direct or indirect consequence of the production of the document, is not admissible against that person in any criminal proceedings except proceedings under section 973 of this chapter.

(2) For the purposes of subsection (1) of this section, proceedings on an application for a restraining order, a confiscation order or a pecuniary penalty order are not criminal proceedings.

Source: PL 11-72 § 166.

Cross-reference: The statutory provisions on the Executive and the President are found in title 2 of this code. The statutory provisions on the Judiciary and the FSM Supreme Court are found in title 4 of this code.

§ 973. Failure to comply with a production order.

(1) Where a person is required by a production order issued under this Act, to produce a document to a police officer, the person is guilty of a felony offense if the person knowingly:

(a) violates the order without reasonable cause; or

(b) in purported compliance with the order, produces or makes available a document known to the person to be false or misleading in a material way, and does not so indicate to the police officer and provide to the police officer any correct information of which the person is in possession.

(2) The offense established by subsection (1) of this section is a felony offense, punishable by imprisonment for a maximum of five years or a maximum fine of $50,000, or both; provided, however, in the case of a corporation, company, commercial enterprise, commercial entity or other legal person, the maximum fine shall be increased to $250,000.

Source: PL 11-72 § 167.

Cross-reference: The statutory provisions on the Executive and the President are found in title 2 of this code. The statutory provisions on the Judiciary and the FSM Supreme Court are found in title 4 of this code.

§ 974. Production orders in relation to foreign offenses.

Where a foreign state requests assistance to locate or seize property suspected to be tainted property in respect of an offense within its jurisdiction, the provisions of section 971 of this chapter apply, with the necessary changes in points of detail, provided that the Secretary has, pursuant to applicable law, authorized the giving of assistance to the foreign state.

Source: PL 11-72 § 168.

Cross-reference: The statutory provisions on the Executive and the President are found in title 2 (Executive) of this code.

§ 975. Power to search for and seize documents relevant to locating property.

A police officer may:

(1) enter upon land or upon or into premises;

(2) search the land or premises for any document of the type described in subsection 971(1) of this chapter; and

(3) seize any document found in the course of that search that the police officer has probable cause to believe to be a relevant document in relation to a serious offense, provided that the entry, search and seizure is made:

(a) with the consent of the occupier of the land or the premises; or

(b) under a warrant issued under section 976 or 951 of this chapter, or under title 12 of this code.

Source: PL 11-72 § 169.

Cross-reference: The statutory provisions on the Executive and the President are found in title 2 (Executive) of this code. The statutory provisions on the Judiciary and the FSM Supreme Court are found in title 4 (Judicial) of this code. Title 12 of this code is on Criminal Procedure.

§ 976. Search warrant for location of documents relevant to locating property.

(1) Where:

(a) a defendant has been charged or convicted of a serious offense; or

(b) the police officer has probable cause to believe that there is, or may be within the next 72 hours, upon any land or upon or in any premises, a document of the type described in subsection 971(1) of this chapter in relation to the offense; the police officer may make application supported by sworn affidavit to a justice for a search warrant in respect of that land or those premises.

(2) Where an application is made under subsection (1) of this section for a warrant to search land or premises, the justice may, subject to subsection (4) of this section issue a warrant authorizing a police officer (whether or not named in the warrant), with such assistance and by such force as is necessary and reasonable:

(a) to enter upon the land or in or upon any premises and to search the land or premises for property of that kind; and

(b) to seize property found in the course of the search that the police officer has probable cause to believe to be property of that kind.

(3) A justice shall not issue a warrant under subsection (2) of this section unless the justice is satisfied that:

(a) a production order has been issued in respect of the document and has not been complied with;

(b) a production order in respect of the document would be unlikely to be effective;

(c) the investigation for the purposes of which the search warrant is being sought might be seriously prejudiced if the police officer does not gain immediate access to the document without any notice to any person; or

(d) the document involved cannot be identified or described with sufficient particularity to enable a production order to be obtained.

(4) A warrant issued under this section shall state:

(a) the purpose for which it is issued, including a reference to the nature of the relevant offense;

(b) a description of the kind of documents authorized to be seized;

(c) a time at which the warrant ceases to be in force; and

(d) whether entry is authorized to be made at any time of the day or night or during specified hours.

(5) If during the course of searching under a warrant issued under this section, a police officer finds:

(a) a document of the type described in subsection 971(1) of this chapter, that the police officer believes on probable cause to relate to the relevant offense, or to another serious offense; or

(b) any thing the police officer believes on probable cause will afford evidence as to the commission of a serious offense; the police officer may seize that property or thing and the warrant shall be deemed to authorize such seizure.

Source: PL 11-72 § 170.

Cross-reference: The statutory provisions on the Executive and the President are found in title 2 of this code. The statutory provisions on the Judiciary and the FSM Supreme Court are found in title 4 of this code.

§ 977. Search warrants in relation to foreign offenses.

Where a foreign state requests assistance to locate or seize documents of a type described in subsection 971(1) of this chapter relating to an offense within its jurisdiction, the provisions of section 976 of this chapter apply, with the necessary changes in points in detail, provided that the Secretary has, pursuant to applicable law, authorized the giving of assistance to the foreign state.

Source: PL 11-72 § 171.

§ 978. Monitoring orders.

(1) A police officer may apply, ex parte and in writing, to a justice for a monitoring order directing a financial institution to give information to a police officer. An application under this section shall be supported by an affidavit.

(2) A monitoring order:

(a) may direct the financial institution to disclose information obtained by the institution about transactions conducted through an account held by a particular person with the institution;

(b) shall not have retrospective effect; and

(c) shall only apply for a period of a maximum of three (3) months from the date of making.

(3) A justice shall not issue a monitoring order unless the justice is satisfied that there is probable cause to believe that the person in respect of whose account the order is sought:

(a) has committed or was involved in the commission, or is about to commit or be involved in the commission of a serious offense; or

(b) has benefitted directly or indirectly, or is about to benefit directly or indirectly from the commission of a serious offense.

(4) A monitoring order shall specify:

(a) the name or names in which the account is believed to be held; and

(b) the type of information that the institution is required to give.

(5) Where a financial institution, which has been given notice of a monitoring order, knowingly:

(a) violates the order; or

(b) provides false or misleading information in purported compliance with the order; the institution commits a felony offense, punishable by imprisonment for a maximum of five years or a maximum fine of $50,000, or both; provided, however, in the case of a corporation, company, commercial enterprise, commercial entity or other legal person, the maximum fine shall be increased to $250,000.

Source: PL 11-72 § 172.

§ 979. Monitoring orders not to be disclosed.

(1) A financial institution that is, or has been subject to a monitoring order shall not knowingly disclose the existence or operation of the order to any person except:

(a) an officer or agent of the institution for the purpose of ensuring compliance with the order;

(b) a legal adviser for the purpose of obtaining legal advice or representation in respect of the order; or

(c) a police officer authorized in writing to receive the information.

(2) A person described in subsections (1)(a), (b) or (c) of this section shall not knowingly disclose the existence or operation of a monitoring order except to another such person, and may do so only for the purposes of the performance of the person's duties or functions.

(3) Violation of this section is a felony offense, punishable by imprisonment for a maximum of five years or a maximum fine of $50,000, or both; provided, however, in the case of a corporation, company, commercial enterprise, commercial entity or other legal person, the maximum fine shall be increased to $250,000.

(4) Nothing in this section prevents the disclosure of information concerning a monitoring order for the purposes of, or in connection with, legal proceedings or in the course of proceedings before a court, provided that nothing in this section shall be construed as requiring a legal adviser to disclose to any court the existence or operation of a monitoring order.

Source: PL 11-72 § 173.

Cross-reference: The statutory provisions on the Executive and the President are found in title 2 of this code. The statutory provisions on the Judiciary and the FSM Supreme Court are found in title 4 of this code.