(Sec. 103) Subjects to Federal criminal penalties persons engaged in unlicensed money transmitting business transactions.
(Sec. 104) Establishes Federal jurisdiction over foreign money launderers and over money laundered through a foreign bank.
(Sec. 109) Increases civil penalties for structuring transactions to evade targeting orders and for violations of certain recordkeeping requirements.
(Sec. 110) Amends the Immigration and Nationality Act to declare inadmissible into the United States: (1) aliens who have engaged in proscribed money laundering activities; and (2) their immediate family members who have benefitted from such illicit activities. Grants the Attorney General authority to waive the mandatory exclusion of such family members in exceptional circumstances.
(Sec. 111) Authorizes Federal enforcement agencies to initiate forfeiture actions regarding funds deposited into a dollar-denominated account in a foreign bank that has a correspondent account in the United States. States that there is no requirement for the Federal Government to trace such funds.
(Sec. 112) Prescribes procedural guidelines for the service of Federal subpoenas for records of funds in correspondent bank accounts.
(Sec. 113) Amends the Controlled Substances Act regarding persons convicted of certain drug abuse violations to authorize a court to order a defendant to repatriate into the court's jurisdiction, for seizure and forfeiture, any property placed beyond that jurisdiction.
(Sec. 114) Amends the Federal judicial code to authorize a court to disallow a claim filed in a forfeiture proceeding on behalf of a corporation if any majority shareholder or individual filing the claim on the corporation's behalf is a fugitive in a related criminal case.
(Sec. 115) Amends the Federal judicial code with respect to enforcement of foreign judgments to prescribe procedural guidelines for the issuance of a restraining order to preserve the availability of property subject to a foreign forfeiture or confiscation judgment.
(Sec. 116) Amends the Right to Financial Privacy Act of 1978, the Fair Credit Reporting Act, and other Federal law governing records and reports on monetary instruments transactions to mandate that agencies subject to them share customer financial information with Federal intelligence or counterintelligence agencies for use against international terrorism. Requires the Secretary to make such reports available, upon request, to a self-regulatory organization registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission.
Requires insured depository institutions to retain records with a high degree of usefulness in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism. Authorizes the Secretary also to require uninsured banks or institutions to retain records for such purposes.
(Sec. 117) Declares that the Financial Crimes Enforcement Network shall be a bureau in the Department of the Treasury, which shall: (1) advise the Under Secretary for Enforcement on financial intelligence and financial criminal activities; (2) maintain a Government-wide data access service; (3) maintain a financial crimes communications center for Federal intelligence agency use; (4) establish a special unit to assist law enforcement and regulatory authorities in combatting the use of informal, nonbank networks without records and without compliance with criminal and tax laws (including payment and barter mechanisms that permit the transfer of funds and fund equivalents); and (5) coordinate with financial intelligence units in other countries on anti-terrorism and anti-money laundering initiatives.
(Sec. 118) Establishes criminal penalties for false statements regarding the identity of customers of financial institutions.
(Sec. 119) Instructs the Secretary to prescribe regulations that would require financial institutions to maintain account holder identification and verification.
Requires the Secretary to study and report to Congress on measures that would require foreign nationals to: (1) provide domestic financial institutions and agencies with information comparable to that required of United States nationals; (2) obtain an identification number as a prerequisite to opening an account with such entities; and (3) establish a system for such entities to review federally maintained information for purposes of verifying the identities of foreign nationals seeking to open accounts.
(Sec. 120) Amends the Bank Holding Company Act of 1956 and the Federal Deposit Insurance Act to direct the oversight authorities, when reviewing acquisition or merger applications, to take into consideration the effectiveness of the anti-money laundering record of the companies or insured depository institutions involved.
(Sec. 121) Redefines "financial institution" and " money transmitting business" to include any person who engages as a business in the transmission of funds (including through an informal value transfer banking system or network of people (hawala) facilitating the transfer of value domestically or internationally outside of the conventional financial institutions system), thus placing such transactions within the purview of Federal law governing recordkeeping requirements of monetary instruments transaction.
(Sec. 122) Amends the Federal Reserve Act to empower the Board of Governors of the Federal Reserve System to authorize personnel to act as law enforcement officers to protect Board premises, grounds, property, personnel, including members of the Board, or any Federal reserve bank. Permits the Board to delegate to a Federal Reserve bank the authority to authorize such personnel. Authorizes such law enforcement designees, while on duty, to carry firearms and make warrantless arrests for any offense against the United States, or for any felony committed within the buildings and grounds of the Board or a reserve bank.
(Sec. 123) Prescribes reporting requirements for coin and currency receipts exceeding $10,000 in a nonfinancial trade or business, except any transaction that occurs entirely outside the United States.
Title II: Public-Private Cooperation - Directs the Secretary of the Treasury to: (1) establish a highly secure network in the Financial Crimes Enforcement Network that allows financial institutions to file reports of suspicious activities through the network and alerts them to suspicious activities; (2) submit status reports to Congress regarding: (a) data collection and analysis; (b) barriers to the exchange of financial crime information; and (c) private banking activities in the United States; and (3) publish and disseminate periodically to the financial services industry detailed analyses derived from law enforcement agencies identifying patterns of suspicious activity.
(Sec. 204) Directs the Secretary to study and report to Congress on: (1) possible expansion of the statutory exemption system; and (2) methods for improving financial institution utilization of statutory exemption provisions as a way of reducing the submission of currency transaction reports that have little or no value for law enforcement purposes.
(Sec. 205) Amends the Annunzio-Wylie Anti-Money Laundering Act to direct the Secretary to provide for a public-private task force on terrorist financing issues.
(Sec. 206) Instructs the Secretary to publish proposed regulations requiring registered brokers and dealers to submit suspicious activity reports. Authorizes the Secretary to prescribe regulations requiring submission of such reports by futures commission merchants, commodity trading advisors, and commodity pool operators.
(Sec. 207) Grants a financial institution civil liability immunity for making such disclosures. Prohibits any officer or employee of the institution, or any Federal, State, or local government officer or employee, from notifying any person involved in a suspicious transaction that it has been reported.
(Sec. 208) Amends the Federal Deposit Insurance Act to authorize the inclusion of suspicions of illegal activity in written employment references.
(Sec. 209) Instructs the Secretary to: (1) encourage foreign governments to require the inclusion of the name of the originator in wire transfer instructions sent to the United States and other countries; (2) report annually to certain congressional committees on progress towards and impediments to international cooperation on the identification of originators of wire transfers; and (3) study the impact of any policy of the Board of Governors of the Federal Reserve System relating to the promotion of check electronification, through truncation or migration from paper checks.
Title III: Combatting International Money Laundering - Authorizes the Secretary to require domestic financial institutions and domestic financial agencies to take one or more special measures if the Secretary finds that a jurisdiction outside the United States, one or more financial institutions operating outside the United States, one or more classes of transactions within or involving a jurisdiction outside the United States, or one or more types of accounts is of primary money laundering concern. Specifies such measures with respect to: (1) recordkeeping and reporting of certain financial transactions; (2) disclosures regarding beneficial ownership, certain payable-through and correspondent accounts; and (3) prohibitions and conditions upon certain correspondent or payable-through accounts opened by a domestic financial institution or agency on behalf of a foreign financial institution.
(Sec. 302) Mandates specified due diligence procedures for U.S. private banking and correspondent accounts involving foreign persons.
(Sec. 303) Prohibits U.S. depository institution correspondent accounts with foreign shell banks, including indirect service to such banks.
(Sec. 304) Requires each financial institution to establish anti-money laundering programs.
(Sec. 305) Authorizes the Secretary to prescribe regulations governing maintenance of concentration accounts by financial institutions in order to ensure that they are not used to prevent association of the identity of an individual customer with the movement of funds of which the customer is the direct or beneficial owner.
(Sec. 306) Expresses the sense of Congress that the President should direct the Secretary of State, the Attorney General, or the Secretary of the Treasury to seek to enter into: (1) negotiations with financial supervisory agencies and other officials of any foreign country whose financial institutions do business with United States financial institutions, or which may be utilized by a foreign terrorist organization, any person who is a member or representative of any such organization, or any person engaged in money laundering or financial or other crimes; and (2) cooperative efforts, voluntary information exchanges, the use of letters rogatory, mutual legal assistance treaties, and international agreements to ensure that foreign banks and other financial institutions maintain adequate records of large U.S. currency transactions, and transaction and account information relating to any foreign terrorist organization, or any person engaged in money laundering or financial or other crimes, and establish a mechanism whereby such records may be made available to U.S. law enforcement officials and domestic financial institution supervisors.
Title IV: Currency Protection - Amends the Federal criminal code to increase penalties for counterfeiting domestic and foreign currency and obligations. Includes counterfeiting by analog, digital, or electronic image.
(Sec. 403) Authorizes the Secretary to engrave and print currency, postage stamps, and other security documents for foreign governments.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3004 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 3004
To combat the financing of terrorism and other financial crimes, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 3, 2001
Mr. Oxley (for himself, Mr. LaFalce, Mr. Leach, Mrs. Maloney of New
York, Mrs. Roukema, Mr. Bentsen, Ms. Hooley of Oregon, Mr. Bereuter,
Mr. Baker, Mr. Bachus, Mr. King, Mrs. Kelly, Mr. Gillmor, Mr. Cantor,
Mr. Riley, Mr. LaTourette, Mr. Green of Wisconsin, and Mr. Grucci)
introduced the following bill; which was referred to the Committee on
Financial Services, and in addition to the Committees on the Judiciary,
and Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To combat the financing of terrorism and other financial crimes, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Financial Anti-
Terrorism Act of 2001''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--STRENGTHENING LAW ENFORCEMENT
Sec. 101. Bulk cash smuggling into or out of the United States.
Sec. 102. Forfeiture in currency reporting cases.
Sec. 103. Interstate currency couriers.
Sec. 104. Illegal money transmitting businesses.
Sec. 105. Long-arm jurisdiction over foreign money launderers.
Sec. 106. Laundering money through a foreign bank.
Sec. 107. Specified unlawful activity for money laundering.
Sec. 108. Laundering the proceeds of terrorism.
Sec. 109. Violations of reporting requirements for nonfinancial trades
and business.
Sec. 110. Proceeds of foreign crimes.
Sec. 111. Transfer of reporting requirements from section 6050I of the
Internal Revenue Code of 1986 to title 31,
United States Code.
Sec. 112. Penalties for violations of geographic targeting orders and
certain record keeping requirements.
Sec. 113. Exclusion of aliens involved in money laundering.
Sec. 114. Standing to contest forfeiture of funds deposited into
foreign bank that has a correspondent
account in the United States.
Sec. 115. Subpoenas for records regarding funds in correspondent bank
accounts.
Sec. 116. Financial crimes enforcement network.
Sec. 117. Customs service border searches.
Sec. 118. Prohibition on false statements to financial institutions
concerning the identity of a customer.
Sec. 119. Verification of identification.
TITLE II--PUBLIC-PRIVATE COOPERATION
Sec. 201. Establishment of highly secure website.
Sec. 202. Report on improvements in data access.
Sec. 203. Reports to the financial services industry on suspicious
financial activities.
Sec. 204. Efficient use of currency transaction report system.
Sec. 205. Public-Private Task Force on Terrorist Financing Issues.
Sec. 206. Deadline for suspicious activity reporting requirements for
registered brokers and dealers.
Sec. 207. Amendments relating to reporting of suspicious activities.
Sec. 208. Authorization to include suspicions of illegal activity in
written employment references.
TITLE III--COMBATTING INTERNATIONAL MONEY LAUNDERING
Sec. 301. Special measures for jurisdictions, financial institutions,
or international transactions of primary
money laundering concern.
Sec. 302. International cooperation in investigations of money
laundering, financial crimes, and the
finances of terrorist groups.
Sec. 303. Prohibition on acceptance of any bank instrument for unlawful
Internet gambling.
Sec. 304. Internet gambling in or through foreign jurisdictions.
TITLE IV--CURRENCY PROTECTION
Sec. 401. Counterfeiting domestic currency and obligations.
Sec. 402. Counterfeiting foreign currency and obligations.
Sec. 403. Production of documents.
Sec. 404. Reimbursement.
TITLE I--STRENGTHENING LAW ENFORCEMENT
SEC. 101. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED STATES.
(a) Enactment of Bulk Cash Smuggling Offense.--Subchapter II of
chapter 53 of title 31, United States Code, is amended by adding at the
end the following:
``Sec. 5331. Bulk cash smuggling into or out of the United States
``(a) Criminal Offense.--
``(1) In general.--Whoever, with the intent to evade a
currency reporting requirement under section 5316, knowingly
conceals more than $10,000 in currency or other monetary
instruments on the person of such individual or in any
conveyance, article of luggage, merchandise, or other
container, and transports or transfers or attempts to transport
or transfer such currency or monetary instruments from a place
within the United States to a place outside of the United
States, or from a place outside the United States to a place
within the United States, shall be guilty of a currency
smuggling offense and subject to punishment pursuant to
subsection (b).
``(2) Concealment on person.--For purposes of this section,
the concealment of currency on the person of any individual
includes concealment in any article of clothing worn by the
individual or in any luggage, backpack, or other container worn
or carried by such individual.
``(b) Penalty.--
``(1) Term of imprisonment.--A person convicted of a
currency smuggling offense under subsection (a), or a
conspiracy to commit such offense, shall be imprisoned for not
more than 5 years.
``(2) Forfeiture.--In addition, the court, in imposing
sentence under paragraph (1), shall order that the defendant
forfeit to the United States, any property, real or personal,
involved in the offense, and any property traceable to such property,
subject to subsection (d) of this section.
``(3) Procedure.--The seizure, restraint, and forfeiture of
property under this section shall be governed by section 413 of
the Controlled Substances Act.
``(4) Personal money judgment.--If the property subject to
forfeiture under paragraph (2) is unavailable, and the
defendant has insufficient substitute property that may be
forfeited pursuant to section 413(p) of the Controlled
Substances Act, the court shall enter a personal money judgment
against the defendant for the amount that would be subject to
forfeiture.
``(c) Civil Forfeiture.--
``(1) In general.--Any property involved in a violation of
subsection (a), or a conspiracy to commit such violation, and
any property traceable to such violation or conspiracy, may be
seized and, subject to subsection (d) of this section,
forfeited to the United States.
``(2) Procedure.--The seizure and forfeiture shall be
governed by the procedures governing civil forfeitures in money
laundering cases pursuant to section 981(a)(1)(A) of title 18,
United States Code.
``(3) Treatment of certain property as involved in the
offense.--For purposes of this subsection and subsection (b),
any currency or other monetary instrument that is concealed or
intended to be concealed in violation of subsection (a) or a
conspiracy to commit such violation, any article, container, or
conveyance used, or intended to be used, to conceal or
transport the currency or other monetary instrument, and any
other property used, or intended to be used, to facilitate the
offense, shall be considered property involved in the offense.
``(d) Proportionality of Forfeiture.--
``(1) In general.--Upon a showing by the property owner by
a preponderance of the evidence that the currency or monetary
instruments involved in the offense giving rise to the
forfeiture were derived from a legitimate source, and were
intended for a lawful purpose, the court shall reduce the
forfeiture to the maximum amount that is not grossly
disproportional to the gravity of the offense.
``(2) Factors to be considered.--In determining the amount
of the forfeiture, the court shall consider all aggravating and
mitigating facts and circumstances that have a bearing on the
gravity of the offense, including the following:
``(A) The value of the currency or other monetary
instruments involved in the offense.
``(B) Efforts by the person committing the offense
to structure currency transactions, conceal property,
or otherwise obstruct justice.
``(C) Whether the offense is part of a pattern of
repeated violations of Federal law.''.
(b) Conforming Amendment.--The table of sections for subchapter II
of chapter 53 of title 31, United States Code, is amended by inserting
after the item relating to section 5330, the following new item:
``5331. Bulk cash smuggling into or out of the United States.''.
SEC. 102. FORFEITURE IN CURRENCY REPORTING CASES.
(a) In General.--Subsection (c) of section 5317 of title 31, United
States Code, is amended to read as follows:
``(c) Forfeiture.--
``(1) In general.--The court in imposing sentence for any
violation of section 5313, 5316, or 5324, or any conspiracy to
commit such violation, shall order the defendant to forfeit all
property, real or personal, involved in the offense and any
property traceable thereto.
``(2) Procedure.--Forfeitures under this subsection shall
be governed by the procedures established in section 413 of the
Controlled Substances Act and the guidelines established in
paragraph (4).
``(3) Civil forfeiture.--Any property involved in a
violation of section 5313, 5316, or 5324, or any conspiracy to
commit any such violation, and any property traceable to any
such violation or conspiracy, may be seized and, subject to
paragraph (4), forfeited to the United States in accordance
with the procedures governing civil forfeitures in money
laundering cases pursuant to section 981(a)(1)(A) of title 18,
United States Code.
``(4) Proportionality of forfeiture.--
``(A) In general.--Upon a showing by the property
owner by a preponderance of the evidence that any
currency or monetary instruments involved in the
offense giving rise to the forfeiture were derived from
a legitimate source, and were intended for a lawful
purpose, the court shall reduce the forfeiture to the
maximum amount that is not grossly disproportional to
the gravity of the offense.
``(B) Factors to be considered.--In determining the
amount of the forfeiture, the court shall consider all
aggravating and mitigating facts and circumstances that
have a bearing on the gravity of the offense, including
the following:
``(i) The value of the currency or other
monetary instruments involved in the offense.
``(ii) Efforts by the person committing the
offense to structure currency transactions,
conceal property, or otherwise obstruct
justice.
``(iii) Whether the offense is part of a
pattern of repeated violations of Federal
law.''.
(b) Conforming Amendments.--(1) Section 981(a)(1)(A) of title 18,
United States Code, is amended by striking ``of section 5313(a) or
5324(a) of title 31, or''.
(2) Section 982(a)(1) of title 18, United States Code, is amended
by striking ``of 5313(a), 5316, or 5324 of title 31, or''.
SEC. 103. INTERSTATE CURRENCY COURIERS.
Section 1957 of title 18, United States Code, is amended by adding
at the end the following new subsection:
``(g) Any person who conceals more than $10,000 in currency on his
or her person, in any vehicle, in any compartment or container within
any vehicle, or in any container placed in a common carrier, and
transports, attempts to transport, or conspires to transport such
currency in interstate commerce on any public road or highway or on any
bus, train, airplane, vessel, or other common carrier, knowing that the
currency was derived from some form of unlawful activity, or knowing
that the currency was intended to be used to promote some form of
unlawful activity, shall be punished as provided in subsection (b). The
defendant's knowledge may be established by proof that the defendant
was willfully blind to the source or intended use of the currency. For
purposes of this subsection, the concealment of currency on the person
of any individual includes concealment in any article of clothing worn
by the individual or in any luggage, backpack, or other container worn
or carried by such individual.''.
SEC. 104. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) Scienter Requirement for Section 1960 Violation.--Section
1960(b)(1)(A) of title 18, United States Code, is amended by inserting
``, whether or not the defendant knew the operation was so punishable''
before the semicolon at the end.
(b) Seizure of Illegally Transmitted Funds.--Section 981(a)(1)(A)
of title 18, United States Code, is amended by striking ``or 1957'' and
inserting ``, 1957 or 1960''.
SEC. 105. LONG-ARM JURISDICTION OVER FOREIGN MONEY LAUNDERERS.
Section 1956(b) of title 18, United States Code, is amended--
(1) by striking ``(b) Whoever'' and inserting ``(b)(1)
Whoever'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) by striking ``subsection (a)(1) or (a)(3),'' and
inserting ``subsection (a)(1) or (a)(3)(2) or section 1957,'';
and
(4) by adding at the end the following new paragraph:
``(2) For purposes of adjudicating an action filed or
enforcing a penalty ordered under this section, the district
courts shall have jurisdiction over any foreign person,
including any financial institution authorized under the laws
of a foreign country, against whom the action is brought, if--
``(A) service of process upon such foreign person
is made under the Federal Rules of Civil Procedure or
the laws of the country where the foreign person is
found; and
``(B) the foreign person--
``(i) commits an offense under subsection
(a) involving a financial transaction that
occurs in whole or in part in the United
States;
``(ii) converts to such person's own use
property in which the United States has an
ownership interest by virtue of the entry of an
order of forfeiture by a court of the United
States; or
``(iii) is a financial institution that
maintains a correspondent bank account at a
financial institution in the United States.
``(3) The court may issue a pretrial restraining order or
take any other action necessary to ensure that any bank account
or other property held by the defendant in the United States is
available to satisfy a judgment under this section.''.
SEC. 106. LAUNDERING MONEY THROUGH A FOREIGN BANK.
Section 1956(c)(6) of title 18, United States Code, is amended to
read as follows:
``(6) the term `financial institution' includes any
financial institution described in section 5312(a)(2) of title
31, United States Code, or the regulations promulgated
thereunder, as well as any foreign bank, as defined in
paragraph (7) of section 1(b) of the International Banking Act
of 1978 (12 U.S.C. 3101(7)).''.
SEC. 107. SPECIFIED UNLAWFUL ACTIVITY FOR MONEY LAUNDERING.
(a) In General.--Section 1956(c)(7) of title 18, United States
Code, is amended--
(1) in subparagraph (B)--
(A) so that clause (ii) reads as follows:
``(ii) any act or acts constituting a crime
of violence, as defined in Section 16 of this
title;''; and
(B) by inserting after clause (iii) the following:
``(iv) fraud or any scheme to defraud
committed against an individual or entity
(other than a foreign government or government
entity) provided such conduct would constitute
a fraud or scheme to defraud under the laws of
the United States or its constituent parts if
committed in the United States;
``(v) fraud or any scheme to defraud
against a foreign government or foreign
government entity, if such conduct would
constitute a violation of this title if it were
committed in interstate commerce in the United
States and against the United States Government
or a United States governmental entity;
``(vi) bribery of a public official, or the
misappropriation, theft, or embezzlement of
public funds by or for the benefit of a public
official;
``(vii) smuggling or export control
violations involving munitions listed in the
United States Munitions List or technologies
with military applications as defined in the
Commerce Control List of the Export
Administration Regulations; or
``(viii) an offense with respect to which
the United States would be obligated by a
multilateral treaty either to extradite the
alleged offender or to submit the case for
prosecution, if the offender were found within
the territory of the United States.''; and
(2) in subparagraph (D)--
(A) by inserting ``section 541 (relating to goods
falsely classified),'' before ``section 542'';
(B) by inserting ``section 922(1) (relating to the
unlawful importation of firearms), section 924(n)
(relating to firearms trafficking),'' before ``section
956'';
(C) by inserting ``section 1030 (relating to
computer fraud and abuse),'' before ``1032'';
(D) by inserting ``any felony violation of the
Foreign Agents Registration Act of 1938, as amended,''
before ``or any felony violation of the Foreign Corrupt
Practices Act''; and
(E) by striking ``fraud in the sale of securities''
and inserting ``fraud in the purchase or sale of
securities''.
SEC. 108. LAUNDERING THE PROCEEDS OF TERRORISM.
Section 1956(c)(7)(D) of title 18, United States Code, is amended
by inserting ``or 2339B'' after ``2339A''.
SEC. 109. VIOLATIONS OF REPORTING REQUIREMENTS FOR NONFINANCIAL TRADES
AND BUSINESS.
(a) Civil Forfeiture.--Section 981(a)(1)(A) of title 18, United
States Code, is amended--
(1) by inserting ``section 6050I of the Internal Revenue
Code of 1986, or'' after ``in violation of''; and
(2) by striking ``or 5324(a)'' and inserting ``, 5324(a),
or 5332''.
(b) Criminal Forfeiture.--Section 982(a)(1) of title 18, United
States Code, is amended--
(1) by inserting ``section 6050I of the Internal Revenue
Code of 1986, or'' after ``in violation of''; and
(2) by striking ``or 5324'' and inserting
``, 5324, or 5332''.
SEC. 110. PROCEEDS OF FOREIGN CRIMES.
Section 981(a)(1)(B) of title 18, United States Code, is amended to
read as follows:
``(B) Any property, real or personal, within the
jurisdiction of the United States, constituting,
derived from, or traceable to, any proceeds obtained
directly or indirectly from an offense against a
foreign nation, or any property used to facilitate such
offense, if--
``(i) the offense involves the manufacture,
importation, sale, or distribution of a
controlled substance (as such term is defined
for the purposes of the Controlled Substances
Act), or any other conduct described in section
1956(c)(7)(B),
``(ii) the offense would be punishable
within the jurisdiction of the foreign nation
by death or imprisonment for a term exceeding
one year, and
``(iii) the offense would be punishable
under the laws of the United States by
imprisonment for a term exceeding one year if
the act or activity constituting the offense
had occurred within the jurisdiction of the
United States.''.
SEC. 111. TRANSFER OF REPORTING REQUIREMENTS FROM SECTION 6050I OF THE
INTERNAL REVENUE CODE OF 1986 TO TITLE 31, UNITED STATES
CODE.
(a) Reenactment of Section 6050I.--Subchapter II of chapter 53 of
title 31, United States Code, is amended by inserting after section
5331 (as added by section 101 of this title) the following new section:
``SEC. 5332. REPORTS RELATING TO COINS AND CURRENCY RECEIVED IN
NONFINANCIAL TRADE OR BUSINESS.
``(a) Coin and Currency Receipts of More Than $10,000.--Any
person--
``(1) who is engaged in a trade or business; and
``(2) who, in the course of such trade or business,
receives more than $10,000 in coins or currency in 1
transaction (or 2 or more related transactions),
shall file a report described in subsection (b) with respect to such
transaction (or related transactions) at such time as the Secretary may
by regulations prescribe.
``(b) Form and Manner of Reports.--A report is described in this
subsection if such report--
``(1) is in such form as the Secretary may prescribe;
``(2) contains--
``(A) the name, address, and taxpayer
identification number of the person from whom the coins
or currency was received;
``(B) the amount of coins or currency received;
``(C) the date and nature of the transaction; and
``(D) such other information as the Secretary may
prescribe.
``(c) Exceptions.--
``(1) Amounts received by financial institutions.--
Subsection (a) shall not apply to amounts received in a
transaction reported under section 5313 and regulations
prescribed under such section.
``(2) Transactions occurring outside the united states.--
Except to the extent provided in regulations prescribed by the
Secretary, subsection (a) shall not apply to any transaction if
the entire transaction occurs outside the United States.
``(d) Currency Includes Foreign Currency and Certain Monetary
Instruments.--
``(1) In general.--For purposes of this section, the term
`currency' includes--
``(A) foreign currency; and
``(B) to the extent provided in regulations
prescribed by the Secretary, any monetary instrument
(whether or not in bearer form) with a face amount of
not more than $10,000.
``(2) Scope of application.--Paragraph (1)(B) shall not
apply to any check drawn on the account of the writer in a
financial institution referred to in subparagraph (A), (B),
(C), (D), (E), (F), (G), (J), (K), (R), or (S) of section
5312(a)(2).
``(e) Coins or Currency Received by Criminal Court Clerks.--
``(1) In general.--Every clerk of a Federal or State
criminal court who receives more than $10,000 in coins or
currency as bail for any individual charged with a specified
criminal offense shall file a report described in paragraph (2)
(at such time as the Secretary may by regulations prescribe)
with respect to the receipt of such bail.
``(2) Report.--A report is described in this paragraph if
such report--
``(A) is in such form as the Secretary may
prescribe; and
``(B) contains--
``(i) the name, address, and taxpayer
identification number of--
``(I) the individual charged with
the specified criminal offense; and
``(II) each person posting the bail
(other than a person licensed as a bail
bondsman);
``(ii) the amount of coins or currency
received;
``(iii) the date the coins or currency was
received; and
``(iv) such other information as the
Secretary may prescribe.
``(3) Specified criminal offense.--For purposes of this
subsection, the term `specified criminal offense' means--
``(A) any Federal criminal offense involving a
controlled substance;
``(B) racketeering (as defined in section 1951,
1952, or 1955 of title 18, United States Code);
``(C) money laundering (as defined in section 1956,
1957 or 1960 of such title); and
``(D) any State criminal offense substantially
similar to an offense described in subparagraph (A),
(B), or (C).
``(4) Information to federal prosecutors.--Each clerk
required to include in a report under paragraph (1) the
information described in paragraph (2)(B) with respect to an
individual described in paragraph (2)(B)(i)(I) shall furnish
(at such time as the Secretary may by regulations prescribe) a
written statement showing such information to the United States
Attorney for the jurisdiction in which such individual resides
and the jurisdiction in which the specified criminal offense
occurred.
``(5) Information to payors of bail.--Each clerk required
to file a report under paragraph (1) shall furnish (at such
time as the Secretary may by regulations prescribe) to each
person whose name is required to be set forth in such report by
reason of paragraph (2)(B)(i)(II) a written statement showing--
``(A) the name and address of the clerk's office
required to file the report; and
``(B) the aggregate amount of coins and currency
described in paragraph (1) received by such clerk.''.
(b) Prohibition on Structuring Transactions.--
(1) In general.--Section 5324 of title 31, United States
Code, is amended--
(A) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(B) by inserting after subsection (a) the following
new subsection:
``(b) Domestic Coin and Currency Transactions Involving
Nonfinancial Trades or Businesses.--No person shall for the purpose of
evading the report requirements of section 5332 or any regulation
prescribed under such section--
``(1) cause or attempt to cause a nonfinancial trade or
business to fail to file a report required under section 5332
or any regulation prescribed under such section;
``(2) cause or attempt to cause a nonfinancial trade or
business to file a report required under section 5332 or any
regulation prescribed under such section that contains a
material omission or misstatement of fact; or
``(3) structure or assist in structuring, or attempt to
structure or assist in structuring, any transaction with 1 or
more nonfinancial trades or businesses.''.
(2) Technical and conforming amendments.--
(A) The heading for subsection (a) of section 5324
of title 31, United States Code, is amended by
inserting ``Involving Financial Institutions'' after
``Transactions''.
(B) Section 5317(c) of title 31, United States
Code, is amended by striking ``5324(b)'' and inserting
``5324(c)''.
(c) Definition of Nonfinancial Trade or Business.--
(1) In general.--Section 5312(a) of title 31, United States
Code, is amended--
(A) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(B) by inserting after paragraph (3) the following
new paragraph:
``(4) Nonfinancial trade or business.--The term
`nonfinancial trade or business' means any trade or business
other than a financial institution that is subject to the
reporting requirements of section 5313 and regulations
prescribed under such section.''.
(2) Technical and conforming amendments.--
(A) Section 5312(a)(3)(C) of title 31, United
States Code, is amended by striking ``section 5316,''
and inserting ``sections 5332 and 5316,''.
(B) Subsections (a) through (f) of section 5318 of
title 31, United States Code, and sections 5321, 5326,
and 5328 of such title are each amended--
(i) by inserting ``or nonfinancial trade or
business'' after ``financial institution'' each
place such term appears; and
(ii) by inserting ``or nonfinancial trades
or businesses'' after ``financial
institutions'' each place such term appears.
(C) Section 981(a)(1)(A) of title 18, United States
Code, is amended by striking ``5313(a) or 5324(a) of
title 31,'' and inserting ``5313(a) or 5332 of title
31, or subsection (a) or (b) of section 5324 of such title,''.
(D) Section 982(a)(1) of title 18, United States
Code, is amended by inserting ``5332,'' after
``5313(a),''.
(d) Repeal of Duplicate Provision.--Section 6050I of the Internal
Revenue Code of 1986 is hereby repealed.
(e) Clerical Amendments.--The tables of sections for chapter 53 of
title 31, United States Code, is amended by inserting after the item
relating to section 5331 (as added by section 101 of this title) the
following new item:
``5332. Reports relating to coins and currency received in nonfinancial
trade or business.''.
(2) Internal revenue code of 1986.--
(A) The table of sections for subpart B of part III
of subchapter A of chapter 61 of the Internal Revenue
Code of 1986 is amended by striking the item relating
to section 6050I.
(B)(i) Subsection (l) of section 6103 of such Code
is amended by striking paragraph (15).
(ii) Subparagraph (A) of section 6103(p)(3)
of such Code is amended by striking ``(15),''.
(iii) Paragraph (4) of section 6103(p) of
such Code is amended by striking in the
material preceding subparagraph (A) ``(12)''
and all that follows through ``(16)'' and
inserting ``(12), or (16)''.
(iv) Clause (ii) of section 6103(p)(4)(F)
of such Code is amended by striking `(14), or
(15)'' and inserting ``or (14)''.
(C) Paragraph (2) of section 6721(e) of such Code
is amended--
(i) in subparagraph (A) by striking
``6050I,'' and by adding ``or'' at the end,
(ii) by striking ``or'' at the end of
subparagraph (B) and inserting ``and'', and
(iii) by striking subparagraph (C).
(D) Subparagraph (B) of section 6724(d)(1) of such
Code is amended by striking clause (iv) and by
redesignating the succeeding clauses accordingly.
(E) Paragraph (2) of section 6724(d) of such Code
is amended by striking subparagraph (K) and by
redesignating the succeeding subparagraphs accordingly.
(F) Section 7203 of such Code is amended by
striking the last sentence.
(f) Regulations; Effective Date.--
(1) Regulations.--Regulations which the Secretary of the
Treasury determines are necessary to implement this section
shall be published in final form before the end of the 6-month
period beginning on the date of the enactment of this Act.
(2) Effective date.--The amendments made by this section
shall take effect immediately upon enactment, except that the
reporting obligations mandated by Title 26, United States Code,
Section 6050I shall not be repealed until the regulations
mandated by Title 31, United States Code, Section 5332 become
effective.
SEC. 112. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING ORDERS AND
CERTAIN RECORD KEEPING REQUIREMENTS.
(a) Civil Penalty for Violation of Targeting Order.--Section
5321(a)(1) of title 31, United States Code, is amended--
(1) by inserting ``or order issued'' after ``subchapter or
a regulation prescribed''; and
(2) by inserting ``, or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508,'' after ``section 5314
and 5315)''.
(b) Criminal Penalties for Violation of Targeting Order.--
Section 5322 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``or order issued'' after
``willfully violating this subchapter or a regulation
prescribed''; and
(B) by inserting ``or willfully violating a
regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-
508,'' after ``under section 5315 or 5324),'';
(2) in subsection (b)--
(A) by inserting ``or order issued'' after
``willfully violating this subchapter or a regulation
prescribed''; and
(B) by inserting ``willfully violating a regulation
prescribed under section 21 of the Federal Deposit
Insurance Act or section 123 of Public Law 91-508,''
after ``under section 5315 or 5324),'';
(c) Structuring Transactions To Evade Targeting Order or Certain
Record Keeping Requirements.--Section 5324(a) of title 31, United
States Code, is amended--
(1) by inserting a comma after ``shall'';
(2) by striking ``section--'' and inserting ``section, the
reporting requirements imposed by any order issued under
section 5326, or the record keeping requirements imposed by any
regulation prescribed under section 21 of the Federal Deposit
Insurance Act or section 123 of Public Law 91-508--''; and
(3) in paragraphs (1) and (2), by inserting ``, to file a
report required by any order issued under section 5326, or to
maintain a record required pursuant to any regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508'' after ``regulation
prescribed under any such section'' each place that term
appears.
(d) Increase in Civil Penalties for Violation of Certain Record
Keeping Requirements.--
(1) Federal deposit insurance act.--Section 21(j)(1) of the
Federal Deposit Insurance Act (12 U.S.C. 1829b(j)(1)) is
amended by striking ``$10,000'' and inserting ``the greater
of--
``(A) the amount (not to exceed $100,000) involved
in the transaction (if any) with respect to which the
violation occurred; or
``(B) $25,000''.
(2) Public law 91-508.--Section 125(a) of Public Law 91-508
(12 U.S.C. 1955(a)) is amended by striking ``$10,000'' and
inserting ``the greater of--
``(1) the amount (not to exceed $100,000) involved in the
transaction (if any) with respect to which the violation
occurred; or
``(2) $25,000''.
(e) Criminal Penalties for Violation of Certain Record Keeping
Requirements.--
(1) Section 126.--Section 126 of Public Law 91-508 (12
U.S.C. 1956) is amended to read as follows:
``SEC. 126. CRIMINAL PENALTY.
``A person that willfully violates this chapter, section 21 of the
Federal Deposit Insurance Act, or a regulation prescribed under this
chapter or that section 21, shall be fined not more than $250,000, or
imprisoned for not more than 5 years, or both.''.
(2) Section 127.--Section 127 of Public Law 91-508 (12
U.S.C. 1957) is amended to read as follows:
``SEC. 127. ADDITIONAL CRIMINAL PENALTY IN CERTAIN CASES.
``A person that willfully violates this chapter, section 21 of the
Federal Deposit Insurance Act, or a regulation prescribed under this
chapter or that section 21, while violating another law of the United
States or as part of a pattern of any illegal activity involving more
than $100,000 in a 12-month period, shall be fined not more than
$500,000, imprisoned for not more than 10 years, or both.''.
SEC. 113. EXCLUSION OF ALIENS INVOLVED IN MONEY LAUNDERING.
(a) In General.--Section 212 of the Immigration and Nationality Act
of 1952, as amended (8 U.S.C. 1182), is amended in subsection (a)(2)--
(1) by redesignating subparagraphs (D), (E) and (F) as
subparagraphs (F), (G) and (I), respectively; and
(2) by inserting after subparagraph (C) new subparagraphs
(D) and (E) to read as follows:
``(D) Money laundering activities.--Any alien who
the consular officer or the Attorney General knows or
has reason to believe--
``(i) is or has been engaged in activities
which if engaged in within the United States
would constitute a violation of the money
laundering provisions section 1956 or 1957 of
title 18, United States Code, or has knowingly
assisted, abetted, or conspired or colluded
with others in any such illicit activity; or
``(ii) is the spouse, son or daughter of an
alien inadmissible under clause (i), has,
within the previous 5 years, obtained any
financial or other benefit from such illicit
activity of that alien, and knew or reasonably
should have known that the financial or other
benefit was the product of such illicit
activity, is inadmissible.
(b) Conforming Amendment.--Section 212(h)(1)(A)(i) of the
Immigration and Nationality Act of 1952, as amended (8 U.S.C. 1182), is
amended by striking ``(D)(i) or (D)(ii)'' and inserting ``(E)(i) or
(E)(ii)''.
SEC. 114. STANDING TO CONTEST FORFEITURE OF FUNDS DEPOSITED INTO
FOREIGN BANK THAT HAS A CORRESPONDENT ACCOUNT IN THE
UNITED STATES.
Section 981 of title 18, United States Code, is amended by adding
the following after the last subsection:
``(k) Correspondent Bank Accounts.--
``(1) For the purpose of a forfeiture under this section or
under the Controlled Substances Act, if funds are deposited
into a dollar-denominated bank account in a foreign financial
institution, and that foreign financial institution has a
correspondent account with a financial institution in the
United States, the funds deposited into the foreign financial
institution (the respondent bank) shall be deemed to have been
deposited into the correspondent account in the United States,
and any restraining order, seizure warrant, or arrest warrant
in rem regarding such funds may be served on the correspondent
bank, and funds in the correspondent account up to the value of
the funds deposited into the dollar-denominated account in the
foreign financial institution may be seized, arrested or
restrained.
``(2) In the circumstances where paragraph (1) applies, if
a forfeiture action is brought against the funds that are
seized, arrested, or restrained, it shall not be necessary for
the government to establish that such funds are directly
traceable to the funds that were deposited into the respondent
bank, nor shall it be necessary for the Government to rely on
the application of Section 984 of this title.
``(3) If a forfeiture action is instituted against funds
seized, arrested or restrained pursuant to paragraph (1), the
owner of the funds, as that term is defined in paragraph (4),
may contest the forfeiture by filing a claim pursuant to
section 983 of this title.
``(4) For purposes of this subsection--
``(A) except as provided in (C), the `owner of the
funds' is the `owner,' as that term is defined in
Section 983(d)(6), whose funds were deposited into the
respondent bank;
``(B) If the respondent bank received the funds
that are subject to forfeiture from another respondent
bank, the ``owner of the funds'' is the `owner' whose
funds were deposited into the first respondent bank,
and each intermediary financial institution shall be
deemed a respondent bank;
``(C) the respondent bank may be considered the
`owner of the funds' only if--
``(i) the basis for the forfeiture action
is wrongdoing committed by the respondent bank,
or
``(ii) the respondent bank establishes, by
a preponderance of the evidence, that prior to
the seizure or arrest of the funds, the
respondent bank discharged all or part its
obligation to the owner of the funds, in which
case the respondent bank will be deemed the
owner of the funds to the extent that such
obligation was satisfied.
``(D) In cases where (C) applies, only the
respondent bank may be considered to be the ``owner of
the funds.''
``(5) ``In this section, `correspondent account' has the
same meaning as the term `interbank account' as defined in 18
U.S.C. `` 984(c)(2)(B).''
SEC. 115. SUBPOENAS FOR RECORDS REGARDING FUNDS IN CORRESPONDENT BANK
ACCOUNTS.
(a) In General.--Chapter 53 of title 31, United States Code, is
amended by inserting after section 5332 (as added by this title) the
following new section:
``SEC. 5333. SUBPOENAS FOR RECORDS.
``(a) Designation by Foreign Financial Institution of Agent.--Any
foreign financial institution that has a correspondent bank account at
a financial institution in the United States shall designate a person
residing in the United States as a person authorized to accept a
subpoena for bank records or other legal process served on the foreign
financial institution.
``(b) Maintenance of Records by Domestic Financial Institution.--
``(1) In general.--Any domestic financial institution that
maintains a correspondent bank account for a foreign financial
institution shall maintain records regarding the names and
addresses of the owners of the foreign financial institution,
and the name and address of the person who may be served with a
subpoena for records regarding any funds transferred to or from
the correspondent account.
``(2) Provision to law enforcement agency.--A domestic
financial institution shall provide names and addresses
maintained under paragraph (1) to a Government authority (as
defined in section 1101(3) of the Right to Financial Privacy
Act of 1978) within 7 days of the receipt of a request, in
writing, for such records.
``(c) Administrative Subpoena.--
``(1) In general.--The Attorney General may issue an
administrative subpoena for records relating to the deposit of
any funds into a dollar-denominated account in a foreign
financial institution that maintains a correspondent account at
a domestic financial institution.
``(2) Manner of issuance.--Any subpoena issued by the
Attorney General under paragraph (1) shall be issued in the
manner described in section 3486 of this title, and may be
served on the representative designated by the foreign
financial institution pursuant to subsection (a) to accept
legal process in the United States, or in a foreign country
pursuant to any mutual legal assistance treaty, multilateral
agreement, or other request for international law enforcement
assistance.
``(d) Correspondent Account Defined.--For purposes of this section,
the term ``correspondent account'' has the same meaning as the term
``interbank account'' as such term is defined in section 984(c)(2)(B)
of title 18, United States Code.''.
(b) Clerical Amendments.--The table of sections for chapter 53 of
title 31, United States Code, is amended by inserting after the item
relating to section 5332 (as added by this title) the following new
item:
``5333. Subpoenas for records.''.
(c) Effective Date.--Section 5333(a) of title 31, United States
Code (as added by subsection (a) of this section), shall apply after
the end of the 30-day period beginning on the date of the enactment of
this Act.
(d) Requests for Records.--Section 3486(a)(1) of title 18, United
States Code, is amended by striking ``, or (II) a Federal offense
involving the sexual exploitation or abuse of children,'' and inserting
``, (II) a Federal offense involving the sexual exploitation or abuse
of children, or (III) a money laundering offense in violation of
section 1956, 1957 or 1960 of this title,''.
SEC. 116. FINANCIAL CRIMES ENFORCEMENT NETWORK.
(a) In General.--Subchapter I of chapter 3 of title 31, United
States Code, is amended--
(1) by redesignating section 310 as section 311; and
(2) by inserting after section 309 the following new
section:
``Sec. 310. Financial crimes enforcement network
``(a) In General.--The Financial Crimes Enforcement Network
established by order of the Secretary of the Treasury (Treasury Order
Numbered 105-08) on April 25, 1990, shall be a bureau in the Department
of the Treasury.
``(b) Director.--
``(1) Appointment.--The head of the Financial Crimes
Enforcement Network shall be the Director who shall be
appointed by the President, by and with the consent of the
Senate, to a term of 4 years.
``(2) Duties and powers.--The duties and powers of the
Director are as follows:
``(A) Advise and make recommendations on matters
relating to financial intelligence and other financial
criminal activity to the Under Secretary for
Enforcement.
``(B) Maintain a government-wide data access
service, with access, in accordance with applicable
legal requirements, to the following:
``(i) Information collected by the
Department of the Treasury, including report
information filed under subchapters II and III
of chapter 53 of this title (such as reports on
cash transactions, foreign financial agency
transactions and relationships, foreign
currency transactions, exporting and importing
monetary instruments, and suspicious
activities), chapter 2 of Public Law 91-508,
section 21 of the Federal Deposit Insurance Act and section 6050I of
the Internal Revenue Code of 1986.
``(ii) Information regarding national and
international currency flows.
``(iii) Other records and data maintained
by other Federal, State, local, and foreign
agencies, including financial and other records
developed in specific cases.
``(iv) other privately and publicly
available information.
``(C) Analyze and disseminate the available data in
accordance with applicable legal requirements and
policies and guidelines established by the Secretary of
the Treasury and the Under Secretary for Enforcement
to--
``(i) identify possible criminal targets to
appropriate Federal, State, local, and foreign
law enforcement agencies;
``(ii) support ongoing criminal financial
investigations and prosecutions and related
proceedings, including civil and criminal tax
and forfeiture proceedings;
``(iii) identify possible instances of
noncompliance with subchapters II and III of
chapter 53 of this title, chapter 2 of Public
Law 91-508, and section 21 of the Federal
Deposit Insurance Act to Federal agencies with
statutory responsibility for enforcing
compliance with such provisions;
``(iv) evaluate and recommend possible uses
of special currency reporting requirements
under section 5326; and
``(v) determine emerging trends and methods
in money laundering and other financial crimes.
``(D) Establish and maintain a financial crimes
communications center to furnish law enforcement
authorities with intelligence information related to
emerging or ongoing investigations and undercover
operations.
``(E) Furnish research, analytical, and
informational services to financial institutions,
appropriate Federal regulatory agencies with regard to
financial institutions, and appropriate Federal, State,
local, and foreign law enforcement authorities, in
accordance with policies and guidelines established by
the Secretary of the Treasury or the Under Secretary of
the Treasury for Enforcement, in the interest of
detection, prevention, and prosecution of money
laundering and other financial crimes.
``(F) Establish and maintain a special unit
dedicated to combatting the use of informal, nonbank
networks and payment and barter system mechanisms that
permit the transfer of funds or the equivalent of funds
without records and without compliance with criminal
and tax laws.
``(G) Such other duties and powers as the Secretary
of the Treasury may delegate or prescribe.
``(c) Requirements Relating to Maintenance and `User Friendly' Use
of Data Banks.--The Secretary of the Treasury shall establish and
maintain operating procedures with respect to the government-wide data
access service and the financial crimes communications center
maintained by the Financial Crimes Enforcement Network which provide--
``(1) for the coordinated and efficient entry of
information into, and withdrawal of information from, the data
maintenance system maintained by the Network, including--
``(A) the submission of reports in electronic
format, whenever possible;
``(B) the cataloguing of information in a manner
that facilitates rapid retrieval by law enforcement
personnel of meaningful data in a `user friendly'
manner; and
``(C) a procedure that provides for a prompt
initial review of suspicious activity reports and other
reports, or such other means as the Secretary my
provide, to identify information that warrants
immediate action;
``(2) in accordance with section 552a of title 5 and the
Right to Financial Privacy Act of 1978, appropriate standards
and guidelines for determining--
``(A) who is to be given access to the information
maintained by the Network;
``(B) what limits are to be imposed on the use of
such information; and
``(C) how information about activities or
relationships which involve or are closely associated
with the exercise of constitutional rights is to be
screened out of the data maintenance system; and
``(3) the prompt verification of the accuracy and
completeness of information maintained by the Network and the
prompt deletion or correction of inaccurate or incomplete
information.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated for the Financial Crimes Enforcement Network such sums as
may be necessary for fiscal years 2002 and 2003.''.
(b) Clerical Amendment.--The table of sections for subchapter I of
chapter 3 of title 31, United States Code, is amended--
(1) by redesignating the item relating to section 310 as
section 311; and
(2) by inserting after the item relating to section 309 the
following new item:
``310. Financial crimes enforcement network.''.
SEC. 117. CUSTOMS SERVICE BORDER SEARCHES.
Section 5317(b) of title 31, United States Code, is amended to read
as follows:
``(b) Searches at Border.--
``(1) In general.--For purposes of ensuring compliance with
the laws enforced by the United States Customs Service, a
customs officer may stop and search, at the border and without
a search warrant, any vehicle, vessel, aircraft, or other
conveyance, any envelope or other container, and any person
entering or departing from the United States.
``(2) International shipments of mail.--With respect to
shipments of international mail (within the meaning of section
3741 of title 39) that are exported or imported by the United
States Postal Service, the Customs Service and other
appropriate Federal agencies shall, subject to paragraph (3),
apply the customs laws of the United States and all other laws
relating to the importation or exportation of such shipments in
the same manner to both shipments by the Postal Service and
similar shipments by private companies.
``(3) Safeguards.--No provision of this subsection shall be
construed as authorizing any customs officer or any other
person to read, copy, or seize any correspondence unless--
``(A) a search warrant has been issued pursuant to
Rule 41 of the Federal Rules of Civil Procedure which
permits such correspondence to be read, copied, or
seized; or
``(B) the author or sender of the correspondence
has given written consent for any such action.''.
SEC. 118. PROHIBITION ON FALSE STATEMENTS TO FINANCIAL INSTITUTIONS
CONCERNING THE IDENTITY OF A CUSTOMER.
(a) In General.--Chapter 47 of title 18, United States Code, is
amended by inserting after section 1007 the following:
``Sec. 1008. False statements concerning the identity of customers of
financial institutions
``(a) In General.--Whoever knowingly in any manner--
``(1) falsifies, conceals, or covers up, or attempts to
falsify, conceal, or cover up, the identity of any person in
connection with any transaction with a financial institution;
``(2) makes, or attempts to make, any materially false,
fraudulent, or fictitious statement or representation of the
identity of any person in connection with a transaction with a
financial institution;
``(3) makes or uses, or attempts to make or use, any false
writing or document knowing the same to contain any materially
false, fictitious, or fraudulent statement or entry concerning
the identity of any person in connection with a transaction
with a financial institution; or
``(4) uses or presents, or attempts to use or present, in
connection with a transaction with a financial institution, an
identification document or means of identification the
possession of which is a violation of section 1028;
shall be fined under this title, imprisoned not more than 5 years, or
both.
``(b) Definitions.--In this section, the following definitions
shall apply:
``(1) Financial institution.--The term `financial
institution'--
``(A) has the same meaning as in section 20; and
``(B) in addition, has the same meaning as in
section 5312(a)(2) of title 31, United States Code.
``(2) Identification document.--The term `identification
document' has the same meaning as in section 1028(d).
``(3) Means of identification.--The term `means of
identification' has the same meaning as in section 1028(d).''.
(b) Technical and Conforming Amendments.--
(1) Title 18, united states code.--Section 1956(c)(7)(D) of
title 18, United States Code, is amended by striking ``1014
(relating to fraudulent loan'' and inserting ``section 1008
(relating to false statements concerning the identity of
customers of financial institutions), section 1014 (relating to
fraudulent loan''.
(2) Table of sections.--The table of sections for chapter
47 of title 18, United States Code, is amended by inserting
after the item relating to section 1007 the following:
``1008. False statements concerning the identity of customers of
financial institutions.''.
SEC. 119. VERIFICATION OF IDENTIFICATION.
Section 5318 of title 31, United States Code, is amended by adding
at the end the following new subsection:
``(i) Identification and Verification of Accountholders.--The
Secretary of the Treasury shall prescribe regulations requiring
financial institutions to obtain and maintain the names, addresses, and
other forms of identification of all persons who open or maintain an
account at the institution, including any beneficial owner of any such
account. The regulations shall include a requirement that financial
institutions shall verify the identity of all such persons and maintain
records of the information used to verify such identification.''.
TITLE II--PUBLIC-PRIVATE COOPERATION
SEC. 201. ESTABLISHMENT OF HIGHLY SECURE WEBSITE.
(a) In General.--The Secretary of the Treasury shall establish a
highly secure website in the Financial Crimes Enforcement Network
that--
(1) allows financial institutions to file suspicious
activities reports through the Internet; and
(2) provides financial institutions with alerts and other
information regarding suspicious activities that warrant
immediate and enhanced scrutiny.
(b) Expedited Development.--The Secretary of the Treasury shall
take such action as may be necessary to ensure that the website
required under subsection (a) is fully operational before the end of
the 6-month period beginning on the date of the enactment of this Act.
SEC. 202. REPORT ON IMPROVEMENTS IN DATA ACCESS.
Before the end of the 4-month period beginning on the date of the
enactment of this Act, the Secretary of the Treasury shall report to
the Congress on the progress made since such date of enactment in
meeting the requirements of section 310(c) of title 31, United States
Code (as added by this Act) to maintain the data collection and
analysis system of the Financial Crimes Enforcement Network in a manner
that allows the submission of reports in electronic format and the
rapid retrieval by law enforcement personnel of meaningful data in a
`user friendly' manner.
SEC. 203. REPORTS TO THE FINANCIAL SERVICES INDUSTRY ON SUSPICIOUS
FINANCIAL ACTIVITIES.
At least once each calendar quarter, the Secretary of the Treasury
shall--
(1) publish a report containing a detailed analysis
identifying patterns of suspicious activity and other
investigative insights derived from suspicious activity reports
and investigations conducted by Federal, to the extent
appropriate; and
(2) distribute such report to financial institutions (as
defined in section 5312 of title 31, United States Code).
SEC. 204. EFFICIENT USE OF CURRENCY TRANSACTION REPORT SYSTEM.
(a) Findings.--The Congress finds the following:
(1) The Congress established the currency transaction
reporting requirements in 1970 because the Congress found then
that such reports have a high degree of usefulness in criminal,
tax, and regulatory investigations and proceedings and the
usefulness of such reports has only increased in the years
since the requirements were established.
(2) In 1994, in response to reports and testimony that
excess amounts of currency transaction reports were interfering
with effective law enforcement, the Congress reformed the
currency transaction report exemption requirements to provide--
(A) mandatory exemptions for certain reports that
had little usefulness for law enforcement, such as cash
transfers between depository institutions and cash
deposits from government agencies; and
(B) discretionary authority for the Secretary of
the Treasury to provide exemptions, subject to criteria
and guidelines established by the Secretary, for
financial institutions with regard to regular business
customers that maintain accounts at an institution into
which frequent cash deposits are made.
(3) Today there is evidence that some financial
institutions are not utilizing the exemption system, or are
filing reports even if there is an exemption in effect, with
the result that the volume of currency transaction reports is
once again interfering with effective law enforcement.
(b) Study and Report.--
(1) Study required.--The Secretary of the Treasury shall
conduct a study of--
(A) the possible expansion of the statutory
exemption system in effect under 5313 of title 31,
United States Code;
(B) methods for improving financial institution
utilization of the statutory exemption provisions as a
way of reducing the submission of currency transaction
reports that have little or no value for law
enforcement purposes, including improvements in the
systems in effect at financial institutions for regular
review of the exemption procedures used at the
institution and the training of personnel in its
effective use; and
(C) the feasibility and advisability of
establishing sanctions for financial institutions that
routinely engage in filing currency transaction reports
that have little or no value for law enforcement
purposes without regard to the statutory exemptions
available with respect to such reports.
(2) Report required.--The Secretary of the Treasury shall
submit a report to the Congress before the end of the 90-day
period beginning on the date of the enactment of this Act
containing the findings and conclusions of the Secretary with regard to
the study required under subsection (a) and such recommendations for
legislative or administrative action as the Secretary determines to be
appropriate.
SEC. 205. PUBLIC-PRIVATE TASK FORCE ON TERRORIST FINANCING ISSUES.
Section 1564 of the Annunzio-Wylie Anti-Money Laundering Act (31
U.S.C. 5313 note) is amended by adding at the end the following new
subsection:
``(d) Terrorist Financing Issues.--The Secretary of the Treasury
shall provide, either within the Bank Secrecy Act Advisory Group, or as
a subcommittee or other adjunct of the Advisory Group, for a task force
of representatives from agencies and officers represented on the
Advisory Group and representatives of financial institutions, private
organizations that represent the financial services industry, and other
interested parties to focus on--
``(1) issues specifically related to the finances of
terrorist groups, the means terrorist groups use to transfer
funds around the world and within the United States, and the
extent to which financial institutions in the United States are
unwittingly involved in such finances and the extent to which
such institutions are at risk as a result; and
``(2) means of facilitating the identification of accounts
and transactions involving terrorist groups and facilitating
the exchange of information concerning such accounts and
transactions between financial institutions and law enforcement
organizations.''.
SEC. 206. DEADLINE FOR SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS FOR
REGISTERED BROKERS AND DEALERS.
The Secretary of the Treasury shall publish regulations in the
Federal Register before January 1, 2002, requiring brokers and dealers
registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 to submit suspicious activity reports
under section 5318(g) of title 31, United States Code.
SEC. 207. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS ACTIVITIES.
(a) Amendment Relating to Civil Liability Immunity for
Disclosures.--Section 5318(g)(3) of title 31, United States Code, is
amended to read as follows:
``(3) Liability for disclosures.--
``(A) In general.--Any financial institution that
makes a voluntary disclosure of any possible violation
of law or regulation to a government agency or makes a
disclosure pursuant to this subsection or any other
authority, and any director, officer, employee, or
agent of such institution who makes, or requires another to make any
such disclosure, shall not be liable to any person under any law or
regulation of the United States, any constitution, law, or regulation
of any State or political subdivision of any State, or under any
contract or other legally enforceable agreement (including any
arbitration agreement), for such disclosure or for any failure to
provide notice of such disclosure to the person who is the subject of
such disclosure or any other person identified in the disclosure.
``(B) Rule of construction.--Subparagraph (A) shall
not be construed as creating--
``(i) any inference that the term `person',
as used in such subparagraph, may be construed
more broadly than its ordinary usage so to
include any government or agency of government;
or
``(ii) any immunity against, or otherwise
affecting, any civil or criminal action brought
by any government or agency of government to
enforce any constitution, law, or regulation of
such government or agency.''.
(b) Prohibition on Notification of Disclosures.--Section 5318(g)(2)
of title 31, United States Code, is amended to read as follows:
``(2) Notification prohibited.--
``(A) In general.--If a financial institution or
any director, officer, employee, or agent of any
financial institution, voluntarily or pursuant to this
section or any other authority, reports a suspicious
transaction to a government agency--
``(i) the financial institution, director,
officer, employee, or agent may not notify any
person involved in the transaction that the
transaction has been reported; and
``(ii) no officer or employee of the
Federal Government or of any State, local,
tribal, or territorial government within the
United States, who has any knowledge that such
report was made may disclose to any person
involved in the transaction that the
transaction has been reported other than as
necessary to fulfill the official duties of such officer or employee.
``(B) Disclosures in certain employment
references.--Notwithstanding the application of
subparagraph (A) in any other context, subparagraph (A)
shall not be construed as prohibiting any financial
institution, or any director, officer, employee, or
agent of such institution, from including, in a written
employment reference that is provided in accordance
with section 18(v) of the Federal Deposit Insurance Act
in response to a request from another financial
institution or a written termination notice or
employment reference that is provided in accordance
with the rules of the self-regulatory organizations
registered with the Securities and Exchange Commission,
information that was included in a report to which
subparagraph (A) applies, but such written employment
reference may not disclose that such information was
also included in any such report or that such report
was made.''.
SEC. 208. AUTHORIZATION TO INCLUDE SUSPICIONS OF ILLEGAL ACTIVITY IN
WRITTEN EMPLOYMENT REFERENCES.
Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is
amended by adding at the end the following new subsection:
``(w) Written Employment References May Contain Suspicions of
Involvement in Illegal Activity.--
``(1) In general.--Notwithstanding any other provision of
law, any insured depository institution, and any director,
officer, employee, or agent of such institution, may disclose
in any written employment reference relating to a current or
former institution-affiliated party of such institution which
is provided to another insured depository institution in
response to a request from such other institution, information
concerning the possible involvement of such institution-
affiliated party in potentially unlawful activity.
``(2) Definition.--For purposes of this subsection, the
term `insured depository institution' includes any uninsured
branch or agency of a foreign bank.''.
TITLE III--COMBATTING INTERNATIONAL MONEY LAUNDERING
SEC. 301. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL INSTITUTIONS,
OR INTERNATIONAL TRANSACTIONS OF PRIMARY MONEY LAUNDERING
CONCERN.
(a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, is amended by inserting after section 5318 the following
new section:
``Sec. 5318A. Special measures for jurisdictions, financial
institutions, or international transactions of primary
money laundering concern
``(a) International Counter-Money Laundering Requirements.--
``(1) In general.--The Secretary may require domestic
financial institutions and domestic financial agencies to take
1 or more of the special measures described in subsection (b)
if the Secretary finds that reasonable grounds exist for
concluding that a jurisdiction outside the United States, 1 or
more financial institutions operating outside the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside the United States is of
primary money laundering concern, in accordance with subsection
(d).
``(2) Form of requirement.--The special measures described
in subsection (b) may be imposed by regulation, order, or
otherwise as permitted by law, and in such sequence or
combination, as the Secretary shall determine.
``(3) Process for selecting special measures.--
``(A) Consultation.--In selecting which special
measure or measures to take under this subsection, the
Secretary shall consult with the Chairman of the Board
of Governors of the Federal Reserve System and, in the
Secretary's sole discretion, such other agencies and
interested parties as the Secretary may find to be
appropriate.
``(B) Factors.--The Secretary also shall consider--
``(i) whether similar action has been or is
being taken by other nations or multilateral
groups;
``(ii) whether the imposition of any
particular special measure would create a
significant competitive disadvantage, including
any undue cost or burden associated with compliance, for financial
institutions organized or licensed in the United States; and
``(iii) the extent to which the action
would have a significant adverse systemic
impact on the international payment, clearance
and settlement system, or on legitimate
business activities involving the particular
jurisdiction, institution, or class of
transactions.
``(4) No limitation on other authority.--This section shall
not be construed as superseding or otherwise restricting any
other authority granted to the Secretary, or to any other
agency, by this subchapter or otherwise.
``(b) Special Measures.--The special measures referred to in
subsection (a), with respect to a jurisdiction outside the United
States, financial institution operating outside the United States, or
class of transaction within, or involving, a jurisdiction outside the
United States, are as follows:
``(1) Recordkeeping and reporting of certain financial
transactions.--
``(A) In general.--The Secretary may require any
domestic financial institution or domestic financial
agency to maintain records, file reports, or both,
concerning the aggregate amount of transactions, or
concerning each transaction, with respect to a
jurisdiction outside the United States, 1 or more
financial institutions operating outside the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside the United States, if
the Secretary finds any such jurisdiction, institution,
or class of transactions to be of primary money
laundering concern.
``(B) Form of records and reports.--Such records
and reports shall be made and retained at such time, in
such manner, and for such period of time, as the
Secretary shall determine, and shall include such
information as the Secretary may determine, including--
``(i) the identity and address of the
participants in a transaction or relationship,
including the identity of the originator of any
funds transfer;
``(ii) the legal capacity in which a
participant in any transaction is acting;
``(iii) information concerning the
beneficial ownership of the funds involved in
any transaction, in accordance with steps the
Secretary has determined to be reasonable and
practicable to obtain and retain such
information; and
``(iv) a description of any transaction.
``(2) Information relating to beneficial ownership.--In
addition to any other requirement under any other law, the
Secretary may require any domestic financial institution or
domestic financial agency to take such steps as the Secretary
may determine to be reasonable and practicable to obtain and
retain information concerning the beneficial ownership of any
account opened or maintained in the United States by a foreign
person (other than a foreign entity whose shares are subject to
public reporting requirements or are listed and traded on a
regulated exchange or trading market), or a representative of
such a foreign person, that involves a jurisdiction outside the
United States, 1 or more financial institutions operating
outside the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside the United States,
if the Secretary finds any such jurisdiction, institution, or
transaction to be of primary money laundering concern.
``(3) Information relating to certain payable-through
accounts.--If the Secretary finds a jurisdiction outside the
United States, 1 or more financial institutions operating
outside the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside the United States
to be of primary money laundering concern, the Secretary may
require any domestic financial institution or domestic
financial agency that opens or maintains a payable-through
account in the United States for a foreign financial
institution involving any such jurisdiction or any such
financial institution operating outside the United States, or a
payable-through account through which any such transaction may
be conducted, as a condition of opening or maintaining such
account, to--
``(A) identify each customer (and representative of
such customer) of such financial institution who is
permitted to use, or whose transactions are routed
through, such payable-through account; and
``(B) obtain, with respect to each such customer
(and each such representative), the same information
that the depository institution obtains in the ordinary course of
business with respect to its customers residing in the United States.
``(4) Information relating to certain correspondent
accounts.--If the Secretary finds a jurisdiction outside the
United States, 1 or more financial institutions operating
outside the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside the United States
to be of primary money laundering concern, the Secretary may
require any domestic financial institution or domestic
financial agency that opens or maintains a correspondent
account in the United States for a foreign financial
institution involving any such jurisdiction or any such
financial institution operating outside the United States, or a
correspondent account through which any such transaction may be
conducted, as a condition of opening or maintaining such
account, to--
``(A) identify each customer (and representative of
such customer) of any such financial institution who is
permitted to use, or whose transactions are routed
through, such correspondent account; and
``(B) obtain, with respect to each such customer
(and each such representative), the same information
that the depository institution obtains in the ordinary
course with respect to its customers residing in the
United States.
``(5) Prohibitions or conditions on opening or maintaining
certain correspondent or payable-through accounts.--If the
Secretary finds a jurisdiction outside the United States, 1 or
more financial institutions operating outside the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside the United States to be of
primary money laundering concern, the Secretary, in
consultation with the Secretary of State, the Attorney General,
and the Chairman of the Board of Governors of the Federal
Reserve System, may prohibit, or impose conditions upon, the
opening or maintaining in the United States of a correspondent
account or payable-through account by any domestic financial
institution or domestic financial agency for or on behalf of a
foreign banking institution if such correspondent account or
payable-through account involves any such jurisdiction or
institution, or if any such transaction may be conducted
through such correspondent account or payable-through account.
``(c) Prohibition on United States Correspondent Accounts With
Foreign Shell Banks.--
``(1) In general.--A depository institution shall not
establish, maintain, administer, or manage a correspondent
account in the United States for, or on behalf of, a foreign
bank that does not have a physical presence in any country.
``(2) Prevention of indirect service to foreign shell
banks.--A depository institution shall take reasonable steps to
ensure that any correspondent account established, maintained,
administered, or managed by that institution in the United
States for a foreign bank is not being used by that foreign
bank to indirectly provide banking services to another foreign
bank that does not have a physical presence in any country.
``(3) Exception.--Paragraphs (1) and (2) shall not be
construed as prohibiting a depository institution from
providing a correspondent account to a foreign bank, if the
foreign bank--
``(A) is an affiliate of a depository institution,
credit union, financial services company, or other
foreign bank that maintains a physical presence in the
United States or a foreign country, as applicable; and
``(B) is subject to supervision by a banking
authority in the country regulating the affiliated
depository institution, credit union, financial
services company, or foreign bank, described in
subparagraph (A), as applicable.
``(4) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Affiliate.--The term `affiliate' means a
foreign bank that is controlled by or is under common
control with a depository institution, credit union,
financial services company, or foreign bank.
``(B) Depository institution.--The `depository
institution'--
``(i) has the meaning given such term in
section 3 of the Federal Deposit Insurance Act;
and
``(ii) includes a credit union.
``(C) Physical presence.--The term `physical
presence' means a place of business that--
``(i) is maintained by a foreign bank;
``(ii) is located at a fixed address (other
than solely an electronic address) in a country
in which the foreign bank is authorized to
conduct banking activities, at which location
the foreign bank--
``(I) employs 1 or more individuals
on a full-time basis; and
``(II) maintains operating records
related to its banking activities; and
``(iii) is subject to inspection by the
banking authority which licensed the foreign
bank to conduct banking activities.
``(d) Consultations and Information To Be Considered in Finding
Jurisdictions, Institutions, or Transactions To Be of Primary Money
Laundering Concern.--
``(1) In general.--In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside the
United States, 1 or more financial institutions operating
outside the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside the United States
is of primary money laundering concern so as to authorize the
Secretary to invoke 1 or more of the special measures of
subsection (b), the Secretary shall consult with the Secretary
of State, the Attorney General, the Secretary of Commerce, and
the United States Trade Representative.
``(2) Information.--The Secretary also shall consider such
information as the Secretary considers to be relevant,
including the following potentially relevant factors:
``(A) In the case of a particular jurisdiction--
``(i) the extent to which that jurisdiction
or financial institutions operating therein
offer bank secrecy or special tax or regulatory
advantages to nonresidents or nondomiciliaries
of such jurisdiction;
``(ii) the substance and quality of
administration of that jurisdiction's bank
supervisory and counter-money laundering laws;
``(iii) the relationship between the volume
of financial transactions occurring in that
jurisdiction and the size of the jurisdiction's
economy;
``(iv) the extent to which that
jurisdiction is characterized as a tax haven or
offshore banking or secrecy haven by credible
international organizations or multilateral
expert groups;
``(v) whether the United States has a
mutual legal assistance treaty with that
jurisdiction, and the experience of United
States law enforcement officials, regulatory
officials, and tax administrators in obtaining
information about transactions originating in
or routed through or to such jurisdiction; and
``(vi) the extent to which that
jurisdiction is characterized by high levels of
official or institutional corruption.
``(B) In the case of a decision to apply 1 or more
of the special measures described in subsection (b)
only to a financial institution or institutions, or to
a transaction or class of transactions, or to both,
within, or involving, a particular jurisdiction--
``(i) the extent to which such financial
institutions or transactions are used to
facilitate or promote money laundering in or
through the jurisdiction;
``(ii) the extent to which such
institutions or transactions are used for
legitimate business purposes in such
jurisdiction; and
``(iii) the extent to which such action is
sufficient to ensure, with respect to
transactions involving such jurisdiction and
institutions operating in such jurisdiction,
that the purposes of this subchapter continue
to be fulfilled, and to guard against
international money laundering and other
financial crimes.
``(e) Notification of Special Measures Invoked by the Secretary.--
Within 10 days after the date of any action taken by the Secretary
under subsection (a)(1), the Secretary shall notify, in writing, the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate of any
such action.
``(f) Definitions.--Notwithstanding any other provision of this
subchapter, for purposes of this section, the following definitions
shall apply:
``(1) Defined terms.--
``(A) Bank definitions.--The following definitions
shall apply with respect to a bank:
``(i) Account.--The term `account'--
``(I) means a formal banking or
business relationship established to
provide regular services, dealings, and
other financial transactions; and
``(II) includes a demand deposit,
savings deposit, or other transaction
or asset account and a credit account
or other extension of credit.
``(ii) Correspondent account.--The term
`correspondent account' means an account
established to receive deposits from and make
payments on behalf of a foreign financial
institution.
``(iii) Payable-through account.--The term
`payable-through account' means an account,
including a transaction account (as defined in
section 19(b)(1)(C) of the Federal Reserve
Act), opened at a depository institution by a
foreign financial institution by means of which
the foreign financial institution permits its
customers to engage, either directly or through
a sub-account, in banking activities usual in
connection with the business of banking in the
United States.
``(B) Definitions applicable to institutions other
than banks.--With respect to any financial institution
other than a bank, the Secretary shall define, by
regulation, order, or otherwise as permitted by law,
the term `account' and shall include within the meaning
of such term arrangements similar to payable-through
and correspondent accounts.
``(2) Other terms.--The Secretary may, by regulation,
order, or otherwise as permitted by law, further define the
terms in paragraph (1) and define other terms for the purposes
of this section, as the Secretary deems appropriate.''.
(b) Clerical Amendment.--The table of sections for subchapter II of
chapter 53 of title 31, United States Code, is amended by inserting
after the item relating to section 5318 the following new item:
``5318A. Special measures for jurisdictions, financial institutions, or
international transactions of primary money
laundering concern.''.
SEC. 302. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF MONEY
LAUNDERING, FINANCIAL CRIMES, AND THE FINANCES OF
TERRORIST GROUPS.
(a) Negotiations.--
(1) In general.--In addition to the requirements of section
4702 of the Anti-Drug Abuse Act of 1988, the Secretary of the
Treasury (hereinafter in this section referred to as the
``Secretary''), in consultation with the Attorney General, the
Secretary of State, and the Board of Governors of the Federal
Reserve System, shall enter into negotiations with the
appropriate financial supervisory agencies and other officials
of any foreign country the financial institutions of which do
business with United States financial institutions or which may
be utilized by any foreign terrorist organization (as
designated under section 219 of the Immigration and Nationality
Act), any person who is a member or representative of any such
organization, or any person engaged in money laundering or
financial or other crimes.
(2) Purposes of negotiations.--In carrying out negotiations
under paragraph (1), the Secretary shall seek to enter into and
further cooperative efforts, voluntary information exchanges,
the use of letters rogatory, mutual legal assistance treaties,
and international agreements to--
(A) ensure that foreign banks and other financial
institutions maintain adequate records of--
(i) large United States currency
transactions; and
(ii) transaction and account information
relating to any foreign terrorist organization
(as designated under section 219 of the
Immigration and Nationality Act), any person
who is a member or representative of any such
organization, or any person engaged in money
laundering or financial or other crimes; and
(B) establish a mechanism whereby such records may be made
available to United States law enforcement officials and
domestic financial institution supervisors, when appropriate.
(b) Reports.--
(1) Interim report.--Not later than 1 year after the date
of enactment of this Act, the Secretary shall submit an interim
report to the Congress on progress in the negotiations under
subsection (a).
(2) Final report.--Not later than 2 years after the date of
the enactment of this Act, the Secretary shall submit a final
report to the President and the Congress, on the outcome of
negotiations under subsection (a).
(3) Identification of certain countries.--In the report
submitted under paragraph (2), the Secretary shall identify
countries--
(A) with respect to which the Secretary determines
there is evidence that the financial institutions in
such countries are being utilized, knowingly or
unwittingly, by any foreign terrorist organization (as
designated under section 219 of the Immigration and
Nationality Act), any person who is a member or
representative of any such organization, or any person
engaged in money laundering or financial or other
crimes; and
(B) which have not reached agreement with United
States authorities to meet the objectives of
subparagraphs (A) and (B) of subsection (a)(2).
(c) Authority for Other Action.--
(1) In general.--If the President determines that--
(A) a foreign country is described in
subparagraphs (A) and (B) of subsection (b)(3);
and
(B) such country is not negotiating in good
faith to reach an agreement described in
subsection (a)(2),
the President may impose appropriate penalties and sanctions on
such country and, except as provided in paragraph (3),
financial institutions of such country.
(2) Penalties and sanctions.--The penalties and sanctions
which may be imposed by the President under paragraph (1)
include temporarily or permanently--
(A) prohibiting such persons, institutions, or
other entities as the President may designate in any
such country from participating in any United States
dollar clearing or wire transfer system; and
(B) prohibiting such persons, institutions or
entities as the President may designate in such
countries from maintaining an account with any bank or
other financial institution chartered under the laws of
the United States or any State.
(3) Exemption for certain financial institutions.--
Financial institutions that maintain adequate records shall be
exempt from such penalties and sanctions.
SEC. 303. PROHIBITION ON ACCEPTANCE OF ANY BANK INSTRUMENT FOR UNLAWFUL
INTERNET GAMBLING.
(a) In General.--No person engaged in the business of betting or
wagering may knowingly accept, in connection with the participation of
another person in unlawful Internet gambling--
(1) credit, or the proceeds of credit, extended to or on
behalf of such other person (including credit extended through
the use of a credit card);
(2) an electronic fund transfer or funds transmitted by or
through a money transmitting business, or the proceeds of an
electronic fund transfer or money transmitting service, from or
on behalf of the other person;
(3) any check, draft, or similar instrument which is drawn
by or on behalf of the other person and is drawn on or payable
at or through any financial institution; or
(4) the proceeds of any other form of financial transaction
as the Secretary may prescribe by regulation which involves a
financial institution as a payor or financial intermediary on
behalf of or for the benefit of the other person.
(b) Definitions.--For purposes of this Act, the following
definitions shall apply:
(1) Bets or wagers.--The term ``bets or wagers''--
(A) means the staking or risking by any person of
something of value upon the outcome of a contest of
others, a sporting event, or a game subject to chance,
upon an agreement or understanding that the person or
another person will receive something of greater value
than the amount staked or risked in the event of a
certain outcome;
(B) includes the purchase of a chance or
opportunity to win a lottery or other prize (which
opportunity to win is predominantly subject to chance);
(C) includes any scheme of a type described in
section 3702 of title 28;
(D) includes any instructions or information
pertaining to the establishment or movement of funds in
an account by the bettor or customer with the business
of betting or wagering; and
(E) does not include--
(i) any bona fide business transaction
governed by the securities laws (as that term
is defined in section 3(a)(47) of
the Securities Exchange Act of 1934) for the purchase or sale at a
future date of securities (as that term is defined in section 3(a)(10)
of such Act);
(ii) any transaction on or subject to the
rules of a contract market designated pursuant
to section 5 of the Commodity Exchange Act;
(iii) any over-the-counter derivative
instrument;
(iv) any contract of indemnity or
guarantee;
(v) any contract for life, health, or
accident insurance;
``(vi) any deposit or other transaction
with a depository institution (as defined in
section 3(c) of the Federal Deposit Insurance
Act)
(vii) any participation in a simulation
sports game or an educational game or contest
that--
(I) is not dependent solely on the
outcome of any single sporting event or
nonparticipant's singular individual
performance in any single sporting
event;
(II) has an outcome that reflects
the relative knowledge and skill of the
participants with such outcome
determined predominantly by accumulated
statistical results of sporting events;
and
(III) offers a prize or award to a
participant that is established in
advance of the game or contest and is
not determined by the number of
participants or the amount of any fees
paid by those participants.
(2) Business of betting or wagering.--The term ``business
of betting or wagering'' does not include, other than for
purposes of subsection (e), any creditor, credit card issuer,
insured depository institution, financial institution, operator
of a terminal at which an electronic fund transfer may be
initiated, money transmitting business, or international,
national, regional, or local network utilized to effect a
credit transaction, electronic fund transfer, stored value
product transaction, or money transmitting service, or any
participant in such network.
(3) Internet.--The term ``Internet'' means the
international computer network of interoperable packet switched
data networks.
(4) Unlawful internet gambling.--The term ``unlawful
Internet gambling'' means to place, receive, or otherwise
transmit a bet or wager by any means which involves the use, at
least in part, of the Internet where such bet or wager is
unlawful under any applicable Federal or State law in the State
in which the bet or wager is initiated, received, or otherwise
made.
(5) Other terms.--
(A) Credit; creditor; and credit card.--The terms
``credit'', ``creditor'', and ``credit card'' have the
meanings given such terms in section 103 of the Truth
in Lending Act.
(B) Electronic fund transfer.--The term
``electronic fund transfer''--
(i) has the meaning given such term in
section 903 of the Electronic Fund Transfer
Act; and
(ii) includes any fund transfer covered by
Article 4A of the Uniform Commercial Code, as
in effect in any State.
(C) Financial institution.--The term ``financial
institution'' has the meaning given such term in
section 903 of the Electronic Fund Transfer Act.
(D) Money transmitting business and money
transmitting service.--The terms ``money transmitting
business'' and ``money transmitting service'' have the
meanings given such terms in section 5330(d) of title
31, United States Code.
(E) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
(c) Civil Remedies.--
(1) Jurisdiction.--The district courts of the United States
shall have original and exclusive jurisdiction to prevent and
restrain violations of this section by issuing appropriate
orders in accordance with this section, regardless of whether a
prosecution has been initiated under this section.
(2) Proceedings.--
(A) Institution by federal government.--
(i) In general.--The United States, acting
through the Attorney General, may institute
proceedings under this subsection to prevent or
restrain a violation of this section.
(ii) Relief.--Upon application of the
United States under this subparagraph, the
district court may enter a preliminary
injunction or an injunction against any person
to prevent or restrain a violation of this
section, in accordance with Rule 65 of the
Federal Rules of Civil Procedure.
(B) Institution by state attorney general.--
(i) In general.--The attorney general of a
State (or other appropriate State official) in
which a violation of this section allegedly has
occurred or will occur may institute
proceedings under this subsection to prevent or
restrain the violation.
(ii) Relief.--Upon application of the
attorney general (or other appropriate State
official) of an affected State under this
subparagraph, the district court may enter a
preliminary injunction or an injunction against
any person to prevent or restrain a violation
of this section, in accordance with Rule 65 of
the Federal Rules of Civil Procedure.
(C) Indian lands.--
(i) In general.--Notwithstanding
subparagraphs (A) and (B), for a violation that
is alleged to have occurred, or may occur, on
Indian lands (as that term is defined in
section 4 of the Indian Gaming Regulatory
Act)--
(I) the United States shall have
the enforcement authority provided
under subparagraph (A); and
(II) the enforcement authorities
specified in an applicable Tribal-State
compact negotiated under section 11 of
the Indian Gaming Regulatory Act shall
be carried out in accordance with that
compact.
(ii) Rule of construction.--No provision of
this section shall be construed as altering,
superseding, or otherwise affecting the
application of the Indian Gaming Regulatory
Act.
(D) Banking regulators.--Before initiating any
proceeding under this paragraph with respect to a
violation or potential violation of subsection (e) by
an insured depository institution (as defined in
section 3 of the Federal Deposit Insurance Act), the
Attorney General of the United States or an attorney
general of a State (or other appropriate State
official) shall--
(i) notify the appropriate Federal banking
agency (as defined in such section) of such
violation or potential violation; and
(ii) allow such agency a reasonable time to
issue an order to such insured depository
institution under section 8(x) of the Federal
Deposit Insurance Act.
(3) Expedited proceedings.--
(A) In general.--In addition to any proceeding
under paragraph (2), a district court may, in exigent
circumstances, enter a temporary restraining order
against a person alleged to be in violation of this
section upon application of the United States under
paragraph (2)(A), or the attorney general (or other
appropriate State official) of an affected State under
paragraph (2)(B), in accordance with Rule 65(b) of the
Federal Rules of Civil Procedure.
(d) Criminal Penalty.--
(1) In general.--Whoever violates this section shall be
fined under title 18, United States Code, or imprisoned for not
more than 5 years, or both.
(2) Permanent injunction.--Upon conviction of a person
under this subsection, the court may enter a permanent
injunction enjoining such person from placing, receiving, or
otherwise making bets or wagers or sending, receiving, or
inviting information assisting in the placing of bets or
wagers.
(e) Circumventions Prohibited.--Notwithstanding subsection (b)(2),
a creditor, credit card issuer, financial institution, operator of a
terminal at which an electronic fund transfer may be initiated, money
transmitting business, or international, national, regional, or local
network utilized to effect a credit transaction, electronic fund
transfer, or money transmitting service, or any participant in such
network, may be liable under this section if such creditor, issuer,
institution, operator, business, network, or participant--
(1) operates, manages, supervises, or directs an Internet
website at which unlawful bets or wagers may be placed,
received, or otherwise made or at which unlawful bets or wagers are
offered to be placed, received, or otherwise made; or
(2) owns or controls, or is owned or controlled by, any
person who operates, manages, supervises, or directs an
Internet website at which unlawful bets or wagers may be
placed, received, or otherwise made or at which unlawful bets
or wagers are offered to be placed, received, or otherwise
made.
(f) Enforcement Actions.--Section 8 of the Federal Deposit
Insurance Act (12 U.S.C. 1818) is amended by adding at the end the
following new subsection:
``(x) Depository Institution Involvement in Internet Gambling.--If
any appropriate Federal banking agency determines that any insured
depository institution is engaged in any of the following activities,
the agency may issue an order to such institution prohibiting such
institution from continuing to engage in any of the following
activities:
``(1) Extending credit, or facilitating an extension of
credit, electronic fund transfer, or money transmitting service
with the actual knowledge that any person is violating section
3(a) of the Unlawful Internet Gambling Funding Prohibition Act
in connection with such extension of credit, electronic fund
transfer, or money transmitting service.
``(2) Paying, transferring, or collecting on any check,
draft, or other instrument drawn on any depository institution
with the actual knowledge that any person is violating section
3(a) of the Unlawful Internet Gambling Funding Prohibition Act
in connection with such check, draft, or other instrument.''.
SEC. 304. INTERNET GAMBLING IN OR THROUGH FOREIGN JURISDICTIONS.
(a) In General.--In deliberations between the United States
Government and any other country on money laundering, corruption, and
crime issues, the United States Government should--
(1) encourage cooperation by foreign governments and
relevant international fora in identifying whether Internet
gambling operations are being used for money laundering,
corruption, or other crimes;
(2) advance policies that promote the cooperation of
foreign governments, through information sharing or other
measures, in the enforcement of this Act; and
(3) encourage the Financial Action Task Force on Money
Laundering, in its annual report on money laundering
typologies, to study the extent to which Internet gambling
operations are being used for money laundering.
(b) Report Required.--The Secretary of the Treasury shall submit an
annual report to the Congress on the deliberations between the United
States and other countries on issues relating to Internet gambling.
TITLE IV--CURRENCY PROTECTION
SEC. 401. COUNTERFEITING DOMESTIC CURRENCY AND OBLIGATIONS.
(a) Counterfeit Acts Committed Outside the United States.--Section
470 of title 18, United States Code, is amended--
(1) in paragraph (2), by inserting ``analog, digital, or
electronic image,'' after ``plate, stone,''; and
(2) by striking ``shall be fined under this title,
imprisoned not more than 20 years, or both'' and inserting
``shall be punished as is provided for the like offense within
the United States''.
(b) Obligations or Securities of the United States.--Section 471 of
title 18, United States Code, is amended by striking ``fifteen years''
and inserting ``20 years''.
(c) Uttering Counterfeit Obligations or Securities.--Section 472 of
title 18, United States Code, is amended by striking ``fifteen years''
and inserting ``20 years''.
(d) Dealing in Counterfeit Obligations or Securities.--Section 473
of title 18, United States Code, is amended by striking ``ten years''
and inserting ``20 years''.
(e) Plates, Stones, or Analog, Digital, or Electronic Images for
Counterfeiting Obligations or Securities.--
(1) In general.--Section 474(a) of title 18, United States
Code, is amended by inserting after the second paragraph the
following new paragraph:
``Whoever, with intent to defraud, makes, executes,
acquires, scans, captures, records, receives, transmits,
reproduces, sells, or has in such person's control, custody, or
possession, an analog, digital, or electronic image of any
obligation or other security of the United States; or''.
(2) Amendment to definition.--Section 474(b) of title 18,
United States Code, is amended by striking the first sentence
and inserting the following new sentence: ``For purposes of
this section, the term `analog, digital, or electronic
image' includes any analog, digital, or electronic method used for the
making, execution, acquisition, scanning, capturing, recording,
retrieval, transmission, or reproduction of any obligation or security,
unless such use is authorized by the Secretary of the Treasury.''.
(3) Clerical amendment.--The heading for section 474 of
title 18, United States Code, is amended by striking ``or
stones'' and inserting
``, stones, or analog, digital, or electronic images''.
(f) Taking Impressions of Tools Used for Obligations or
Securities.--Section 476 of title 18, United States Code, is amended--
(1) by inserting ``analog, digital, or electronic image,''
after ``impression, stamp,''; and
(2) by striking ``ten years'' and inserting ``25 years''.
(g) Possessing or Selling Impressions of Tools Used for Obligations
or Securities.--Section 477 of title 18, United States Code, is
amended--
(1) in the first paragraph, by inserting ``analog, digital,
or electronic image,'' after ``imprint, stamp,'';
(2) in the second paragraph, by inserting ``analog,
digital, or electronic image,'' after ``imprint, stamp,''; and
(3) in the third paragraph, by striking ``ten years'' and
inserting ``25 years''.
(h) Connecting Parts of Different Notes.--Section 484 of title 18,
United States Code, is amended by striking ``five years'' and inserting
``10 years''.
(i) Bonds and Obligations of Certain Lending Agencies.--The first
and second paragraphs of section 493 of title 18, United States Code,
are each amended by striking ``five years'' and inserting ``10 years''.
SEC. 402. COUNTERFEITING FOREIGN CURRENCY AND OBLIGATIONS.
(a) Foreign Obligations or Securities.--Section 478 of title 18,
United States Code, is amended by striking ``five years'' and inserting
``20 years''.
(b) Uttering Counterfeit Foreign Obligations or Securities.--
Section 479 of title 18, United States Code, is amended by striking
``three years'' and inserting ``20 years''.
(c) Possessing Counterfeit Foreign Obligations or Securities.--
Section 480 of title 18, United States Code, is amended by striking
``one year'' and inserting ``20 years''.
(d) Plates, Stones, or Analog, Digital, or Electronic Images for
Counterfeiting Foreign Obligations or Securities.--
(1) In general.--Section 481 of title 18, United States
Code, is amended by inserting after the second paragraph the
following new paragraph:
``Whoever, with intent to defraud, makes, executes,
acquires, scans, captures, records, receives, transmits,
reproduces, sells, or has in such person's control, custody, or
possession, an analog, digital, or electronic image of any
bond, certificate, obligation, or other security of any foreign
government, or of any treasury note, bill, or promise to pay,
lawfully issued by such foreign government and intended to
circulate as money; or''.
(2) Increased sentence.--The last paragraph of section 481
of title 18, United States Code, is amended by striking ``five
years'' and inserting ``25 years''.
(3) Clerical amendment.--The heading for section 481 of
title 18, United States Code, is amended by striking ``or
stones'' and inserting
``, stones, or analog, digital, or electronic images''.
(e) Foreign Bank Notes.--Section 482 of title 18, United States
Code, is amended by striking ``two years'' and inserting ``20 years''.
(f) Uttering Counterfeit Foreign Bank Notes.--Section 483 of title
18, United States Code, is amended by striking ``one year'' and
inserting ``20 years''.
SEC. 403. PRODUCTION OF DOCUMENTS.
Section 5114(a) of title 31, United States Code (relating to
engraving and printing currency and security documents), is amended--
(1) by striking ``(a) The Secretary of the Treasury'' and
inserting:
``(a) Authority To Engrave and Print.--
``(1) In general.--The Secretary of the Treasury''; and
(2) by adding at the end the following new paragraph:
``(2) Engraving and printing for other governments.--The
Secretary of the Treasury may, if the Secretary determines that
it will not interfere with engraving and printing needs of the
United States, produce currency, postage stamps, and other
security documents for foreign governments, subject to a
determination by the Secretary of State that such production
would be consistent with the foreign policy of the United
States.''.
SEC. 404. REIMBURSEMENT.
Section 5143 of title 31, United States Code (relating to payment
for services of the Bureau of Engraving and Printing), is amended--
(1) in the first sentence, by inserting ``, any foreign
government, or any territory of the United States'' after
``agency'';
(2) in the second sentence, by inserting ``and other''
after ``administrative''; and
(3) in the last sentence, by inserting ``, foreign
government, or territory of the United States'' after
``agency''.
<all>
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 62 - 1.
Reported (Amended) by the Committee on Financial Services. H. Rept. 107-250, Part I.(text of measure as reported in House: CR 10/16/2001 H6902-6915)
Reported (Amended) by the Committee on Financial Services. H. Rept. 107-250, Part I. (text of measure as reported in House: CR 10/16/2001 H6902-6915)
House Committee on Judiciary Granted an extension for further consideration ending not later than Oct. 17, 2001.
House Committee on Ways and Means Granted an extension for further consideration ending not later than Oct. 17, 2001.
Committee on Judiciary discharged.
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Committee on Judiciary discharged.
Committee on Ways and Means discharged.
Committee on Ways and Means discharged.
Placed on the Union Calendar, Calendar No. 151.
Mr. Oxley moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H6924-6944)
DEBATE - The House proceeded with forty minutes of debate on H.R. 3004.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 412 - 1 (Roll no. 390).(text: CR H6924-6936)
Roll Call #390 (House)On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 412 - 1 (Roll no. 390). (text: CR H6924-6936)
Roll Call #390 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.