Stored Value Device Registration and Reporting Act of 2010 - Treats as a financial institution subject to federal regulation any person engaged in the business of providing stored value services, including a stored value system operator, an issuer of stored value, a seller of stored value, and a redeemer of stored value.
Requires a stored value system operator to register with the Secretary of the Treasury each stored value program that such person authorizes to function on such stored value system.
Prescribes mandatory registration procedures. Subjects noncompliance with this Act to civil penalty and forfeiture.
Instructs the Secretary to prescribe regulations establishing a threshold point under which small and low-risk stored value device businesses are exempt from such registration requirements.
Sets forth report filing and content requirements for persons, agents, or bailees who knowingly transport or receive specified monetary instruments, stored value, or a combination of monetary instruments and stored value, of more than $10,000 at one time, or reportable stored value devices at one time, that cross U.S. boundaries.
Authorizes the Secretary of the Treasury or the Secretary of Homeland Security to apply for a search warrant when such Secretary reasonably believes a monetary instrument, stored value, or a reportable stored value device is being transported and a mandatory report on the instrument or device has not been filed or contains a material omission or misstatement.
States that smuggling of cash, monetary instruments, stored value, and stored value devices into or out of the United States is a currency smuggling offense subject to imprisonment and forfeiture of the property involved in the offense and possible personal money judgment.
Instructs the Secretary of the Treasury to study and report to Congress on specified uses of stored value devices, including the extent to which they are used to provide payments related to drug trafficking, human trafficking, or financial support to terror cells operating within the United States.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5127 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5127
To amend title 31, United States Code, to establish a reporting
requirement for any stored value device carried out of, into, or
through the United States, to establish registration requirements for
stored value programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 22, 2010
Ms. Giffords (for herself and Mr. Bilbray) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend title 31, United States Code, to establish a reporting
requirement for any stored value device carried out of, into, or
through the United States, to establish registration requirements for
stored value programs, 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.
This Act may be cited as the ``Stored Value Device Registration and
Reporting Act of 2010''.
SEC. 2. DEFINITIONS.
(a) Definition of Financial Institution.--Paragraph (2) of section
5312(a) of title 31, United States Code is amended--
(1) by redesignating subparagraphs (Y) and (Z) as
subparagraphs (Z) and (AA), respectively; and
(2) by inserting after subparagraph (X) the following new
subparagraph:
``(Y) a person engaged in the business of providing
stored value services, including a stored value system
operator, an issuer of stored value, a seller of stored
value, and a redeemer of stored value;''.
(b) Stored Value, Stored Value System Operator, and Device
Defined.--Subsection (a) of section 5312 of title 31, United States
Code, is amended by adding at the end the following new paragraphs:
``(7) Stored value.--The term `stored value' means funds or
monetary value represented in digital electronics format
(whether or not specially encrypted) and stored or capable of
storage on electronic media in such a way as to be retrievable
and transferable electronically.
``(8) Stored value system operator.--
``(A) In general.--The term `stored value system
operator' means any person doing business in the United
States that operates a system for clearing and settling
transactions in which the operator's stored value
device is used to purchase goods or services or to
obtain cash. To fall within this definition, the
operator must also have authorized another person
(whether located in the United States or not) to be an
issuing institution or acquiring institution for the
operator's stored value device or must act as its own
issuing institution or acquiring institution.
``(B) Definitions.--For purposes of this paragraph:
``(i) Issuing institution.--The term
`issuing institution' means a person authorized
by the stored value system operator to issue
the operator's stored value device.
``(ii) Acquiring institution.--The term
`acquiring institution' means a person
authorized by the stored value system operator
to contract, directly or indirectly, with
merchants or other persons to process
transactions, including cash access
transactions, involving the operator's stored
value device.
``(iii) Operator's stored value device.--
The term `operator's stored value device' means
a stored value device capable of being used in
the United States that--
``(I) has been issued by an issuing
institution; and
``(II) can be used in the
operator's stored value system.
``(9) Device.--The term `device' means any card, plate,
code, account number, electronic serial number, mobile
identification number, personal identification number, or other
telecommunications service, equipment, or instrument
identifier, or other means of account access that can be used,
alone or in conjunction with another access device, to obtain
money, goods, services, or any other thing of value, or that
can be used to initiate a transfer of funds or of stored value
(other than a transfer originated solely by paper instrument),
but a stored value device does not include a credit card or a
debit card, as such terms are defined by the Secretary of the
Treasury.
``(10) Reportable stored value device.--The term
`reportable stored value device' means a stored value device
for which--
``(A) the associated stored value account is
reloadable by the device holder;
``(B) the device does not comply with minimum
stored value device standards prescribed by the
Secretary of the Treasury;
``(C) the device does not bear the name of the
person transporting or possessing the device; or
``(D) the device is designated as reportable by the
Secretary of the Treasury.''.
SEC. 3. REGISTRATION OF STORED VALUE PROGRAMS.
(a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, is amended by inserting after section 5330 the following
new section:
``Sec. 5330A. Registration of stored value programs
``(a) Registration With Secretary of the Treasury Required.--
``(1) In general.--Any stored value system operator shall
register each stored value program that such person authorizes
to function on such stored value system with the Secretary of
the Treasury not later than the end of the 180-day period
beginning on the later of--
``(A) the date of the enactment of the Stored Value
Device Registration and Reporting Act of 2010; or
``(B) the end of the 30-day period that begins on
the date on which the first stored value transaction in
the stored value program is processed.
``(2) Form and manner of registration.--Subject to the
requirements of subsection (b), the Secretary of the Treasury
shall prescribe, by regulation, the form and manner for
registering a stored value program pursuant to paragraph (1).
``(3) Persons remain subject to state law.--This section
shall not be construed as superseding any requirement of State
law relating to persons operating stored value systems or
persons engaged in stored value programs within the
jurisdiction of such State.
``(4) False and incomplete information.--The filing of
false or materially incomplete information in connection with
the registration of a stored value program shall be considered
as a failure to comply with the requirements of this
subchapter.
``(b) Contents of Registration.--The registration of a stored value
program under subsection (a) shall include the following information:
``(1) The name and location of the operator of the stored
value system.
``(2) The name and address of each person who--
``(A) issues the stored value associated with the
stored value program;
``(B) issues a stored value device associated with
the stored value program; or
``(C) provides stored value processing services to
the issuer of the stored value or to the issuer of the
stored value device, or to a person acting in a
capacity similar to such issuer.
``(3) The name and address of any depository institution at
which the stored value program maintains a transaction account
(as defined in section 19(b)(1)(C) of the Federal Reserve Act).
``(4) The name and address of the bank, foreign or
domestic, in which the primary transaction account for the
funds representing the stored value sold is held, the bank
routing number, and the bank account number.
``(5) The bank identification number or other system
identifier of the stored value devices for the stored value
program.
``(6) A description of the features included in the group
of services offered to stored value account holders in the
stored value program, either provided directly through the
stored value system or otherwise, including--
``(A) the maximum amount of value that may be held
in a stored value account at any time (maximum total
load amount);
``(B) the maximum amount of funds that may be
loaded to the stored value account per load
transaction;
``(C) the maximum amount of funds that may be
loaded to a stored value account per day;
``(D) the maximum amount of funds that may be
loaded to a stored value account per day through one or
more load purchases in currency;
``(E) the maximum amount of stored value that may
be loaded through an automated clearinghouse
transaction;
``(F) the maximum amount that may be loaded through
a Fedwire (the realtime gross settlement system
operated by the Board of Governors of the Federal
Reserve System) transaction;
``(G) the maximum amount of stored value that may
be redeemed in currency through an over-the-counter
transaction by a system member;
``(H) the maximum amount of stored value that may
be redeemed in currency through an automated teller
machine or other mechanical means per transaction;
``(I) the maximum amount of stored value that may
be redeemed in currency through an automated teller
machine or other mechanical means per day;
``(J) the maximum amount of value that may be spent
though one or more automated clearinghouse transactions
per day; and
``(K) the maximum amount of value that may be spent
through Fedwire transactions per day.
``(7) A description of the measures in effect under the
program to assure that--
``(A) the identity of the owner of the stored value
is accurate;
``(B) the person using the device is the person
entitled to do so;
``(C) stored value account holders are informed
that participation in a stored value program
constitutes waiver of objection to law enforcement
access to the present amount of stored value accessible
through a stored value device; and
``(D) the amount of value available through the
device at the time of the inquiry is accessible to law
enforcement.
``(8) Such other information as the Secretary of the
Treasury may require.
``(c) Eligibility for Registration.--No stored value program is
eligible for registration unless the stored value devices associated
with that program clearly and visibly state on the device, to the
extent the device is a physical device, and to the extent prescribed by
the Secretary of the Treasury--
``(1) that the device is a stored value device;
``(2) the name, address, and telephone number of the issuer
of the stored value associated with the device for use by law
enforcement;
``(3) the maximum amount of value that may be held in a
stored value account associated with the device at any time
(maximum value);
``(4) the bank identification number of the stored value
program that is associated with the device, if any; and
``(5) a clear and concise descriptive label of the type of
stored value program through which the device is issued.
``(d) Stored Value Program Defined.--For purposes of this section,
the term `stored value program' means any one or more stored value
devices with the same device functionality authorized by a stored value
system operator to be issued by an issuing institution in which each
device in the program is identified by the same bank identification
number or other identifier that relates the stored value device to the
issuing institution.
``(e) Civil Penalty for Failure To Comply With Registration
Requirements.--
``(1) In general.--Any person who fails to comply with any
requirement of this section or any regulation prescribed under
this section shall be liable to the United States for a civil
penalty of $5,000 for each such violation.
``(2) Continuing violation.--Each day a violation described
in paragraph (1) continues shall constitute a separate
violation for purposes of such paragraph.
``(3) Assessments.--Any penalty imposed under this
subsection shall be assessed and collected by the Secretary of
the Treasury in the manner provided in section 5321 and any
such assessment shall be subject to the provisions of such
section.
``(f) Forfeiture.--
``(1) In general.--Any--
``(A) stored value device issued in connection with
a stored value program that fails to comply with any
requirement of this section or any regulation
prescribed under this section,
``(B) stored value issued in connection with a
stored value program that fails to comply with any
requirement of this section or any regulation
prescribed under this section, or
``(C) physical stored value device that does not
comply with the physical characteristics required for
registration under this section,
may be seized and 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, any stored value
device, and any other property used, or intended to be used to
facilitate the offense (including the funds or value of funds
accessible by the stored value device at the time of the
offense), shall be considered property involved in the offense.
``(g) Small Business and Low-Risk Exemption.--The Secretary of the
Treasury shall prescribe regulations establishing, on the basis of such
criteria as the Secretary determines to be appropriate, a threshold
point under which small- and low-risk stored value programs will not be
required to register under this section.''.
(b) Clerical Amendment.--The table of sections for chapter 53 of
title 31, United States Code, is amended by inserting after the item
relating to section 5330 the following new item:
``5330A. Registration of stored value programs.''.
SEC. 4. AMENDMENTS RELATING TO REPORTS ON EXPORTS AND IMPORTS OF
MONETARY INSTRUMENTS, STORED VALUE, AND STORED VALUE
DEVICES.
(a) Requirement of Reports on Exports and Imports of Stored Value
and Stored Value Devices.--Section 5316(a) of title 31, United States
Code, is amended to read as follows:
``(a) Except as provided in subsection (d) of this section, a
person or an agent or bailee of the person shall file a report under
subsection (b) of this section when the person, agent, or bailee
knowingly--
``(1) transports, is about to transport, or has
transported, monetary instruments, stored value, or a
combination of monetary instruments and stored value, of more
than $10,000 at one time, or reportable stored value devices at
one time--
``(A) from a place in the United States to or
through a place outside the United States; or
``(B) to a place in the United States from or
through a place outside the United States; or
``(2) receives monetary instruments, stored value, or a
combination of monetary instruments and stored value, of more
than $10,000 at one time, or reportable stored value devices at
one time, transported into the United States from or through a
place outside the United States.''.
(b) Report Filing and Content Requirements.--Subsection (b) of
section 5316 of title 31, United States Code, is amended to read as
follows:
``(b) Report Filing and Content Requirements.--
``(1) Time and place of filing.--A report under subsection
(a) shall be filed at the time and place the Secretary of the
Treasury prescribes.
``(2) Monetary instrument or stored value.--A report filed
under this subsection with respect to monetary instruments or
stored value shall contain the following information to the
extent the Secretary of the Treasury prescribes:
``(A) The legal capacity in which the person filing
the report is acting.
``(B) The origin, destination, and route of the
monetary instruments or stored value.
``(C) When the monetary instruments or stored value
are not legally and beneficially owned by the person
transporting the instruments or stored value, or if the
person transporting the instruments or stored value
personally is not going to use them, the identity of
the person that gave the instruments or stored value to
the person transporting them, the identity of the
person who is to receive them, or both.
``(D) The amount and kind of monetary instruments
or stored value transported.
``(E) Such additional information as the Secretary
of the Treasury may require.
``(3) Stored value devices.--A report filed under this
subsection with respect to reportable stored value devices
shall contain the following information to the extent the
Secretary of the Treasury prescribes:
``(A) The legal capacity in which the person filing
the report is acting.
``(B) The origin, destination, and route of the
stored value devices.
``(C) When the stored value devices are not legally
and beneficially owned by the person transporting the
stored value devices, or if the person transporting the
stored value devices personally is not going to use the
stored value devices, the identity of the person that
gave the stored value devices to the person
transporting them, the identity of the person who is to
receive them, or both.
``(D) The maximum value of the devices transported.
``(E) The amount of stored value in the stored
value account associated with the devices at the time
they are transported.
``(F) The number and kind of stored value devices
transported.
``(G) Such additional information as the Secretary
of the Treasury may require.
``(4) Maximum value.--For purposes of this subsection, the
`maximum value' of a stored value device is the maximum
monetary value that can be loaded to the stored value account
that the device accesses.''.
SEC. 5. AMENDMENTS RELATING TO SEARCH AND FORFEITURE OF MONETARY
INSTRUMENTS AND STORED VALUE DEVICES.
Section 5317 of title 31, United States Code, is amended--
(1) in the heading of such section, by inserting after
``instruments'' the following: ``and stored value devices'';
and
(2) by amending subsection (a) to read as follows:
``(a) In General.--The Secretary of the Treasury or the Secretary
of Homeland Security may apply to a court of competent jurisdiction for
a search warrant when such Secretary reasonably believes a monetary
instrument, stored value, or a reportable stored value device is being
transported and a report on the instrument or device under section 5316
of this title has not been filed or contains a material omission or
misstatement. Such Secretary shall include a statement of information
in support of the warrant. On a showing of probable cause, the court
may issue a search warrant for a designated person or a designated or
described place or physical object. This subsection does not affect the
authority of the Secretary of the Treasury or the Secretary of Homeland
Security under another law.''.
SEC. 6. AMENDMENT OF SMUGGLING PROVISIONS.
Chapter 53 of subtitle IV of title 31, United States Code, is
amended by amending section 5332 to read as follows:
``SEC. 5332. SMUGGLING OF CASH, MONETARY INSTRUMENTS, STORED VALUE, AND
STORED VALUE DEVICES 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 or stored value, or any physical reportable stored
value device, 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, other monetary instruments, stored
value, or physical reportable stored value device 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, other monetary instruments, or
physical reportable stored value device 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.
``(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 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, other monetary instrument, stored value, or
physical reportable stored value device 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, other monetary instrument, stored
value, or physical reportable stored value device, and any
other property used, or intended to be used to facilitate the
offense (including the funds or value of funds accessible by
the stored value device at the time of the offense), shall be
considered property involved in the offense.''.
SEC. 7. STORED VALUE DEVICE STUDY.
(a) In General.--The Secretary of the Treasury, in consultation
with the Attorney General, the Secretary of Homeland Security, and the
Director of National Intelligence, shall carry out a study on stored
value devices. Such study shall include--
(1) an analysis of the extent to which stored value devices
are used for the purpose of providing--
(A) payments related to drug trafficking;
(B) payments related to human trafficking; or
(C) financial support to terror cells operating
within the United States;
(2) an analysis of the extent to which stored value devices
issued by foreign entities are being utilized in the United
States, including the typical countries of origin of such
devices and the typical values of such devices when imported
into the United States;
(3) an analysis of the extent to which stored value devices
issued by United States entities are being utilized outside the
United States, including the typical locations where value is
added to such device and where value is typically subtracted
internationally;
(4) an identification of any trends in stored value
addition and subtraction that appear to be associated with drug
trafficking or human trafficking;
(5) a list of stored value device types which are now or
may soon be used for money laundering;
(6) recommendations on methods to collect data related to
stored value device transactions for purposes of law
enforcement and intelligence analysis in a manner consistent
with the Foreign Intelligence Surveillance Act and privacy
laws; and
(7) an analysis of whether requiring certain information to
be printed, or otherwise made available, on stored value
devices would help customs and law enforcement officers
identify such devices and track the origins of such devices,
where such information could include the name and address of
the device issuer, the maximum value of funds that can be
stored on such device, and the fact that the device is a stored
value device.
(b) Report.--Not later than the end of the 180-day period beginning
on the date of the enactment of this Act, the Secretary of the Treasury
shall submit a report to the Congress containing all findings and
determinations made in carrying out the study required under subsection
(a).
(c) Stored Value Device Defined.--For purposes of this section, the
term ``stored value device'' shall have the meaning given such term
under section 5312(a)(9) of title 31, United States Code.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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