Money laundering: digital 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. Existing law establishes the Restitution Fund, a continuously appropriated fund in the State Treasury, to provide funding to compensate victims of crime. This bill would, until January 1, 2032, expand the crime of money laundering to include conducting a transaction involving a monetary instrument of specified value using digital assets, as defined. 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, until January 1, 2032, authorize a law enforcement officer or prosecuting agency, as defined, to obtain a search warrant to seize digital assets or wallets, accounts, or similar things containing digital assets (collectively "digital assets") upon a showing of probable cause that the digital assets contain proceeds of a crime or proceeds traceable to a crime or have been used to facilitate a crime. The bill would r