Uniting
and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001
(Enrolled as Agreed to or Passed by Both House and Senate)
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST FINANCING ACT OF 2001
SEC. 301. SHORT TITLE.
This title may be cited as the `International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001'.
SEC. 302. FINDINGS AND PURPOSES.
(a) FINDINGS- The Congress finds that--
(1) money laundering, estimated by the International
Monetary Fund to amount to between 2 and 5 percent of global gross
domestic product, which is at least $600,000,000,000 annually, provides
the financial fuel that permits transnational criminal enterprises to
conduct and expand their operations to the detriment of the safety and
security of American citizens;
(2) money laundering, and the defects in financial
transparency on which money launderers rely, are critical to the
financing of global terrorism and the provision of funds for terrorist
attacks;
(3) money launderers subvert legitimate financial
mechanisms and banking relationships by using them as protective
covering for the movement of criminal proceeds and the financing of
crime and terrorism, and, by so doing, can threaten the safety of
United States citizens and undermine the integrity of United States
financial institutions and of the global financial and trading systems
upon which prosperity and growth depend;
(4) certain jurisdictions outside of the United States
that offer `offshore' banking and related facilities designed to
provide anonymity, coupled with weak financial supervisory and
enforcement regimes, provide essential tools to disguise ownership and
movement of criminal funds, derived from, or used to commit, offenses
ranging from narcotics trafficking, terrorism, arms smuggling, and
trafficking in human beings, to financial frauds that prey on
law-abiding citizens;
(5) transactions involving such offshore jurisdictions
make it difficult for law enforcement officials and regulators to
follow the trail of money earned by criminals, organized international
criminal enterprises, and global terrorist organizations;
(6) correspondent banking facilities are one of the
banking mechanisms susceptible in some circumstances to manipulation by
foreign banks to permit the laundering of funds by hiding the identity
of real parties in interest to financial transactions;
(7) private banking services can be susceptible to
manipulation by money launderers, for example corrupt foreign
government officials, particularly if those services include the
creation of offshore accounts and facilities for large personal funds
transfers to channel funds into accounts around the globe;
(8) United States anti-money laundering efforts are
impeded by outmoded and inadequate statutory provisions that make
investigations, prosecutions, and forfeitures more difficult,
particularly in cases in which money laundering involves foreign
persons, foreign banks, or foreign countries;
(9) the ability to mount effective counter-measures to
international money launderers requires national, as well as bilateral
and multilateral action, using tools specially designed for that
effort; and
(10) the Basle Committee on Banking Regulation and
Supervisory Practices and the Financial Action Task Force on Money
Laundering, of both of which the United States is a member, have each
adopted international anti-money laundering principles and
recommendations.
(b) PURPOSES- The purposes of this title are--
(1) to increase the strength of United States measures
to prevent, detect, and prosecute international money laundering and
the financing of terrorism;
(B) the purposes of such provisions of law continue
to be fulfilled, and such provisions of law are effectively and
efficiently administered;
(3) to strengthen the provisions put into place by the
Money Laundering Control Act of 1986 (18 U.S.C. 981 note), especially
with respect to crimes by non-United States nationals and foreign
financial institutions;
(4) to provide a clear national mandate for subjecting
to special scrutiny those foreign jurisdictions, financial institutions
operating outside of the United States, and classes of international
transactions or types of accounts that pose particular, identifiable
opportunities for criminal abuse;
(5) to provide the Secretary of the Treasury (in this
title referred to as the `Secretary') with broad discretion, subject to
the safeguards provided by the Administrative Procedure Act under title
5, United States Code, to take measures tailored to the particular
money laundering problems presented by specific foreign jurisdictions,
financial institutions operating outside of the United States, and
classes of international transactions or types of accounts;
(6) to ensure that the employment of such measures by
the Secretary permits appropriate opportunity for comment by affected
financial institutions;
(7) to provide guidance to domestic financial
institutions on particular foreign jurisdictions, financial
institutions operating outside of the United States, and classes of
international transactions that are of primary money laundering concern
to the United States Government;
(8) to ensure that the forfeiture of any assets in
connection with the anti-terrorist efforts of the United States permits
for adequate challenge consistent with providing due process rights;
(9) to clarify the terms of the safe harbor from civil liability for filing suspicious activity reports;
(11) to ensure that all appropriate elements of the
financial services industry are subject to appropriate requirements to
report potential money laundering transactions to proper authorities,
and that jurisdictional disputes do not hinder examination of
compliance by financial institutions with relevant reporting
requirements;
(12) to strengthen the ability of financial institutions to maintain the integrity of their employee population; and
(13) to strengthen measures to prevent the use of the
United States financial system for personal gain by corrupt foreign
officials and to facilitate the repatriation of any stolen assets to
the citizens of countries to whom such assets belong.
SEC. 303. 4-YEAR CONGRESSIONAL REVIEW; EXPEDITED CONSIDERATION.
(a) IN GENERAL- Effective on and after the first day of
fiscal year 2005, the provisions of this title and the amendments made
by this title shall terminate if the Congress enacts a joint
resolution, the text after the resolving clause of which is as follows:
`That provisions of the International Money Laundering Abatement and
Anti-Terrorist Financing Act of 2001, and the amendments made thereby,
shall no longer have the force of law.'.
(b) EXPEDITED CONSIDERATION- Any joint resolution submitted
pursuant to this section should be considered by the Congress
expeditiously. In particular, it shall be considered in the Senate in
accordance with the provisions of section 601(b) of the International
Security Assistance and Arms Control Act of 1976.
Subtitle A--International Counter Money Laundering and Related Measures
SEC. 311. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL
INSTITUTIONS, OR INTERNATIONAL TRANSACTIONS OF PRIMARY MONEY LAUNDERING
CONCERN.
`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 of the Treasury 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 of the United States, 1 or more financial
institutions operating outside of the United States, 1 or more classes
of transactions within, or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts is of primary money
laundering concern, in accordance with subsection (c).
`(2) FORM OF REQUIREMENT- The special measures described in--
`(A) subsection (b) may be imposed in such sequence or combination as the Secretary shall determine;
`(B) paragraphs (1) through (4) of subsection (b) may be imposed by regulation, order, or otherwise as permitted by law; and
`(C) subsection (b)(5) may be imposed only by regulation.
`(3) DURATION OF ORDERS; RULEMAKING- Any order by which
a special measure described in paragraphs (1) through (4) of subsection
(b) is imposed (other than an order described in section 5326)--
`(A) shall be issued together with a notice of proposed rulemaking relating to the imposition of such special measure; and
`(B) may not remain in effect for more than 120
days, except pursuant to a rule promulgated on or before the end of the
120-day period beginning on the date of issuance of such order.
`(4) PROCESS FOR SELECTING SPECIAL MEASURES- In
selecting which special measure or measures to take under this
subsection, the Secretary of the Treasury--
`(A) shall consult with the Chairman of the Board
of Governors of the Federal Reserve System, any other appropriate
Federal banking agency, as defined in section 3 of the Federal Deposit
Insurance Act, the Secretary of State, the Securities and Exchange
Commission, the Commodity Futures Trading Commission, the National
Credit Union Administration Board, and in the sole discretion of the
Secretary, such other agencies and interested parties as the Secretary
may find to be appropriate; and
`(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;
`(iii) the extent to which the action or the
timing of 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; and
`(iv) the effect of the action on United States national security and foreign policy.
`(5) 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 of the United
States, financial institution operating outside of the United States,
class of transaction within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts are as follows:
`(1) RECORDKEEPING AND REPORTING OF CERTAIN FINANCIAL TRANSACTIONS-
`(A) IN GENERAL- The Secretary of the Treasury 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 of the United States, 1 or more financial
institutions operating outside of the United States, 1 or more classes
of transactions within, or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts 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) the identity of the beneficial owner of
the funds involved in any transaction, in accordance with such
procedures as the Secretary determines to be reasonable and practicable
to obtain and retain the information; and
`(iv) a description of any transaction.
`(2) INFORMATION RELATING TO BENEFICIAL OWNERSHIP- In
addition to any other requirement under any other provision of 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 of the United States, 1 or more financial institutions
operating outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of the United
States, or 1 or more types of accounts if the Secretary finds any such
jurisdiction, institution, or transaction or type of account to be of
primary money laundering concern.
`(3) INFORMATION RELATING TO CERTAIN PAYABLE-THROUGH
ACCOUNTS- If the Secretary finds a jurisdiction outside of the United
States, 1 or more financial institutions operating outside of the
United States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside of 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 of 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--
`(A) to 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) to obtain, with respect to each such customer
(and each such representative), information that is substantially
comparable to that which 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 of the United
States, 1 or more financial institutions operating outside of the
United States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside of 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 of the United States, or a
correspondent account through which any such transaction may be
conducted, as a condition of opening or maintaining such account--
`(A) to 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) to obtain, with respect to each such customer
(and each such representative), information that is substantially
comparable to that which the depository institution obtains in the
ordinary course of business 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 of the United States, 1 or more
financial institutions operating outside of the United States, or 1 or
more classes of transactions within, or involving, a jurisdiction
outside of 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) CONSULTATIONS AND INFORMATION TO BE CONSIDERED IN
FINDING JURISDICTIONS, INSTITUTIONS, TYPES OF ACCOUNTS, 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 of the United
States, 1 or more financial institutions operating outside of the
United States, 1 or more classes of transactions within, or involving,
a jurisdiction outside of the United States, or 1 or more types of
accounts is of primary money laundering concern so as to authorize the
Secretary of the Treasury to take 1 or more of the special measures
described in subsection (b), the Secretary shall consult with the
Secretary of State and the Attorney General.
`(2) ADDITIONAL CONSIDERATIONS- In making a finding
described in paragraph (1), the Secretary shall consider in addition
such information as the Secretary determines to be relevant, including
the following potentially relevant factors:
`(A) JURISDICTIONAL FACTORS- In the case of a particular jurisdiction--
`(i) evidence that organized criminal groups,
international terrorists, or both, have transacted business in that
jurisdiction;
`(ii) the extent to which that jurisdiction or
financial institutions operating in that jurisdiction offer bank
secrecy or special regulatory advantages to nonresidents or
nondomiciliaries of that jurisdiction;
`(iii) the substance and quality of
administration of the bank supervisory and counter-money laundering
laws of that jurisdiction;
`(iv) the relationship between the volume of
financial transactions occurring in that jurisdiction and the size of
the economy of the jurisdiction;
`(v) the extent to which that jurisdiction is
characterized as an offshore banking or secrecy haven by credible
international organizations or multilateral expert groups;
`(vi) whether the United States has a mutual
legal assistance treaty with that jurisdiction, and the experience of
United States law enforcement officials and regulatory officials in
obtaining information about transactions originating in or routed
through or to such jurisdiction; and
`(vii) the extent to which that jurisdiction is characterized by high levels of official or institutional corruption.
`(B) INSTITUTIONAL FACTORS- 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 a type of account, or to
all 3, within or involving a particular jurisdiction--
`(i) the extent to which such financial
institutions, transactions, or types of accounts are used to facilitate
or promote money laundering in or through the jurisdiction;
`(ii) the extent to which such institutions,
transactions, or types of accounts are used for legitimate business
purposes in the jurisdiction; and
`(iii) the extent to which such action is
sufficient to ensure, with respect to transactions involving the
jurisdiction and institutions operating in the jurisdiction, that the
purposes of this subchapter continue to be fulfilled, and to guard
against international money laundering and other financial crimes.
`(d) NOTIFICATION OF SPECIAL MEASURES INVOKED BY THE
SECRETARY- Not later than 10 days after the date of any action taken by
the Secretary of the Treasury 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.
`(e) DEFINITIONS- Notwithstanding any other provision of
this subchapter, for purposes of this section and subsections (i) and
(j) of section 5318, the following definitions shall apply:
`(1) BANK DEFINITIONS- The following definitions shall apply with respect to a bank:
`(A) 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.
`(B) CORRESPONDENT ACCOUNT- The term `correspondent
account' means an account established to receive deposits from, make
payments on behalf of a foreign financial institution, or handle other
financial transactions related to such institution.
`(C) 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 subaccount, in
banking activities usual in connection with the business of banking in
the United States.
`(2) DEFINITIONS APPLICABLE TO INSTITUTIONS OTHER THAN
BANKS- With respect to any financial institution other than a bank, the
Secretary shall, after consultation with the appropriate Federal
functional regulators (as defined in section 509 of the
Gramm-Leach-Bliley Act), define by regulation the term `account', and
shall include within the meaning of that term, to the extent, if any,
that the Secretary deems appropriate, arrangements similar to
payable-through and correspondent accounts.
`(3) REGULATORY DEFINITION OF BENEFICIAL OWNERSHIP- The
Secretary shall promulgate regulations defining beneficial ownership of
an account for purposes of this section and subsections (i) and (j) of
section 5318. Such regulations shall address issues related to an
individual's authority to fund, direct, or manage the account
(including, without limitation, the power to direct payments into or
out of the account), and an individual's material interest in the
income or corpus of the account, and shall ensure that the
identification of individuals under this section does not extend to any
individual whose beneficial interest in the income or corpus of the
account is immaterial.
`(4) OTHER TERMS- The Secretary may, by regulation,
further define the terms in paragraphs (1), (2), and (3), and define
other terms for the purposes of this section, as the Secretary deems
appropriate.'.
`5318A. Special measures for jurisdictions, financial
institutions, or international transactions of primary money laundering
concern.'.
SEC. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS AND PRIVATE BANKING ACCOUNTS.
`(i) DUE DILIGENCE FOR UNITED STATES PRIVATE BANKING AND CORRESPONDENT BANK ACCOUNTS INVOLVING FOREIGN PERSONS-
`(1) IN GENERAL- Each financial institution that
establishes, maintains, administers, or manages a private banking
account or a correspondent account in the United States for a
non-United States person, including a foreign individual visiting the
United States, or a representative of a non-United States person shall
establish appropriate, specific, and, where necessary, enhanced, due
diligence policies, procedures, and controls that are reasonably
designed to detect and report instances of money laundering through
those accounts.
`(2) ADDITIONAL STANDARDS FOR CERTAIN CORRESPONDENT ACCOUNTS-
`(A) IN GENERAL- Subparagraph (B) shall apply if a
correspondent account is requested or maintained by, or on behalf of, a
foreign bank operating--
`(i) under an offshore banking license; or
`(ii) under a banking license issued by a foreign country that has been designated--
`(I) as noncooperative with international
anti-money laundering principles or procedures by an intergovernmental
group or organization of which the United States is a member, with
which designation the United States representative to the group or
organization concurs; or
`(II) by the Secretary of the Treasury as warranting special measures due to money laundering concerns.
`(B) POLICIES, PROCEDURES, AND CONTROLS- The
enhanced due diligence policies, procedures, and controls required
under paragraph (1) shall, at a minimum, ensure that the financial
institution in the United States takes reasonable steps--
`(i) to ascertain for any such foreign bank,
the shares of which are not publicly traded, the identity of each of
the owners of the foreign bank, and the nature and extent of the
ownership interest of each such owner;
`(ii) to conduct enhanced scrutiny of such
account to guard against money laundering and report any suspicious
transactions under subsection (g); and
`(iii) to ascertain whether such foreign bank
provides correspondent accounts to other foreign banks and, if so, the
identity of those foreign banks and related due diligence information,
as appropriate under paragraph (1).
`(3) MINIMUM STANDARDS FOR PRIVATE BANKING ACCOUNTS- If
a private banking account is requested or maintained by, or on behalf
of, a non-United States person, then the due diligence policies,
procedures, and controls required under paragraph (1) shall, at a
minimum, ensure that the financial institution takes reasonable steps--
`(A) to ascertain the identity of the nominal and
beneficial owners of, and the source of funds deposited into, such
account as needed to guard against money laundering and report any
suspicious transactions under subsection (g); and
`(B) to conduct enhanced scrutiny of any such
account that is requested or maintained by, or on behalf of, a senior
foreign political figure, or any immediate family member or close
associate of a senior foreign political figure that is reasonably
designed to detect and report transactions that may involve the
proceeds of foreign corruption.
`(4) DEFINITION- For purposes of this subsection, the following definitions shall apply:
`(A) OFFSHORE BANKING LICENSE- The term `offshore
banking license' means a license to conduct banking activities which,
as a condition of the license, prohibits the licensed entity from
conducting banking activities with the citizens of, or with the local
currency of, the country which issued the license.
`(B) PRIVATE BANKING ACCOUNT- The term `private banking account' means an account (or any combination of accounts) that--
`(i) requires a minimum aggregate deposits of funds or other assets of not less than $1,000,000;
`(ii) is established on behalf of 1 or more individuals who have a direct or beneficial ownership interest in the account; and
`(iii) is assigned to, or is administered or
managed by, in whole or in part, an officer, employee, or agent of a
financial institution acting as a liaison between the financial
institution and the direct or beneficial owner of the account.'.
(b) REGULATORY AUTHORITY AND EFFECTIVE DATE-
(1) REGULATORY AUTHORITY- Not later than 180 days after
the date of enactment of this Act, the Secretary, in consultation with
the appropriate Federal functional regulators (as defined in section
509 of the Gramm-Leach-Bliley Act) of the affected financial
institutions, shall further delineate, by regulation, the due diligence
policies, procedures, and controls required under section 5318(i)(1) of
title 31, United States Code, as added by this section.
(2) EFFECTIVE DATE- Section 5318(i) of title 31, United
States Code, as added by this section, shall take effect 270 days after
the date of enactment of this Act, whether or not final regulations are
issued under paragraph (1), and the failure to issue such regulations
shall in no way affect the enforceability of this section or the
amendments made by this section. Section 5318(i) of title 31, United
States Code, as added by this section, shall apply with respect to
accounts covered by that section 5318(i), that are opened before, on,
or after the date of enactment of this Act.
SEC. 313. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS WITH FOREIGN SHELL BANKS.
`(j) PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS WITH FOREIGN SHELL BANKS-
`(1) IN GENERAL- A financial institution described in
subparagraphs (A) through (G) of section 5312(a)(2) (in this subsection
referred to as a `covered financial 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 covered financial institution shall take reasonable steps to
ensure that any correspondent account established, maintained,
administered, or managed by that covered financial 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. The Secretary of the
Treasury shall, by regulation, delineate the reasonable steps necessary
to comply with this paragraph.
`(3) EXCEPTION- Paragraphs (1) and (2) do not prohibit
a covered financial institution from providing a correspondent account
to a foreign bank, if the foreign bank--
`(A) is an affiliate of a depository institution,
credit union, or 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, or foreign bank described in subparagraph
(A), as applicable.
`(4) DEFINITIONS- For purposes of this subsection--
`(A) the term `affiliate' means a foreign bank that
is controlled by or is under common control with a depository
institution, credit union, or foreign bank; and
`(B) 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.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a)
shall take effect at the end of the 60-day period beginning on the date
of enactment of this Act.
SEC. 314. COOPERATIVE EFFORTS TO DETER MONEY LAUNDERING.
(a) COOPERATION AMONG FINANCIAL INSTITUTIONS, REGULATORY AUTHORITIES, AND LAW ENFORCEMENT AUTHORITIES-
(1) REGULATIONS- The Secretary shall, within 120 days
after the date of enactment of this Act, adopt regulations to encourage
further cooperation among financial institutions, their regulatory
authorities, and law enforcement authorities, with the specific purpose
of encouraging regulatory authorities and law enforcement authorities
to share with financial institutions information regarding individuals,
entities, and organizations engaged in or reasonably suspected based on
credible evidence of engaging in terrorist acts or money laundering
activities.
(2) COOPERATION AND INFORMATION SHARING PROCEDURES- The
regulations adopted under paragraph (1) may include or create
procedures for cooperation and information sharing focusing on--
(A) matters specifically related to the finances of
terrorist groups, the means by which terrorist groups transfer funds
around the world and within the United States, including through the
use of charitable organizations, nonprofit organizations, and
nongovernmental organizations, 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;
(B) the relationship, particularly the financial
relationship, between international narcotics traffickers and foreign
terrorist organizations, the extent to which their memberships overlap
and engage in joint activities, and the extent to which they cooperate
with each other in raising and transferring funds for their respective
purposes; and
(C) 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.
(3) CONTENTS- The regulations adopted pursuant to paragraph (1) may--
(A) require that each financial institution
designate 1 or more persons to receive information concerning, and to
monitor accounts of individuals, entities, and organizations
identified, pursuant to paragraph (1); and
(B) further establish procedures for the protection
of the shared information, consistent with the capacity, size, and
nature of the institution to which the particular procedures apply.
(4) RULE OF CONSTRUCTION- The receipt of information by
a financial institution pursuant to this section shall not relieve or
otherwise modify the obligations of the financial institution with
respect to any other person or account.
(5) USE OF INFORMATION- Information received by a
financial institution pursuant to this section shall not be used for
any purpose other than identifying and reporting on activities that may
involve terrorist acts or money laundering activities.
(b) COOPERATION AMONG FINANCIAL INSTITUTIONS- Upon notice
provided to the Secretary, 2 or more financial institutions and any
association of financial institutions may share information with one
another regarding individuals, entities, organizations, and countries
suspected of possible terrorist or money laundering activities. A
financial institution or association that transmits, receives, or
shares such information for the purposes of identifying and reporting
activities that may involve terrorist acts or money laundering
activities 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 thereof, 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, except where such
transmission, receipt, or sharing violates this section or regulations
promulgated pursuant to this section.
(c) RULE OF CONSTRUCTION- Compliance with the provisions of
this title requiring or allowing financial institutions and any
association of financial institutions to disclose or share information
regarding individuals, entities, and organizations engaged in or
suspected of engaging in terrorist acts or money laundering activities
shall not constitute a violation of the provisions of title V of the
Gramm-Leach-Bliley Act (Public Law 106-102).
(d) REPORTS TO THE FINANCIAL SERVICES INDUSTRY ON
SUSPICIOUS FINANCIAL ACTIVITIES- At least semiannually, the Secretary
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, State, and local law enforcement agencies to the
extent appropriate; and
SEC. 315. INCLUSION OF FOREIGN CORRUPTION OFFENSES AS MONEY LAUNDERING CRIMES.
(1) in subparagraph (B)--
(A) in clause (ii), by striking `or destruction of
property by means of explosive or fire' and inserting `destruction of
property by means of explosive or fire, or a crime of violence (as
defined in section 16)';
(B) in clause (iii), by striking `1978' and inserting `1978)'; and
(C) by adding at the end the following:
`(iv) bribery of a public official, or the
misappropriation, theft, or embezzlement of public funds by or for the
benefit of a public official;
`(v) smuggling or export control violations involving--
`(I) an item controlled on the United
States Munitions List established under section 38 of the Arms Export
Control Act (22 U.S.C. 2778); or
`(II) an item controlled under regulations under the Export Administration Regulations (15 C.F.R. Parts 730-774); or
`(vi) 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'; and
(D) by inserting `any felony violation of the
Foreign Agents Registration Act of 1938,' before `or any felony
violation of the Foreign Corrupt Practices Act'.
SEC. 316. ANTI-TERRORIST FORFEITURE PROTECTION.
(a) RIGHT TO CONTEST- An owner of property that is
confiscated under any provision of law relating to the confiscation of
assets of suspected international terrorists, may contest that
confiscation by filing a claim in the manner set forth in the Federal
Rules of Civil Procedure (Supplemental Rules for Certain Admiralty and
Maritime Claims), and asserting as an affirmative defense that--
(1) the property is not subject to confiscation under such provision of law; or
(b) EVIDENCE- In considering a claim filed under this
section, a court may admit evidence that is otherwise inadmissible
under the Federal Rules of Evidence, if the court determines that the
evidence is reliable, and that compliance with the Federal Rules of
Evidence may jeopardize the national security interests of the United
States.
(1) PROTECTION OF RIGHTS- The exclusion of certain
provisions of Federal law from the definition of the term `civil
forfeiture statute' in section 983(i) of title 18, United States Code,
shall not be construed to deny an owner of property the right to
contest the confiscation of assets of suspected international
terrorists under--
(A) subsection (a) of this section;
(2) SAVINGS CLAUSE- Nothing in this section shall limit
or otherwise affect any other remedies that may be available to an
owner of property under section 983 of title 18, United States Code, or
any other provision of law.
SEC. 317. LONG-ARM JURISDICTION OVER FOREIGN MONEY LAUNDERERS.
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving the margins 2 ems
to the right;
(2) by inserting after `(b)' the following: `PENALTIES-
(3) by inserting `, or section 1957' after `or (a)(3)'; and
(4) by adding at the end the following:
`(2) JURISDICTION OVER FOREIGN PERSONS- 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 service of
process upon the foreign person is made under the Federal Rules of
Civil Procedure or the laws of the country in which the foreign person
is found, and--
`(A) the foreign person commits an offense under
subsection (a) involving a financial transaction that occurs in whole
or in part in the United States;
`(B) the foreign person converts, to his or her 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
`(C) the foreign person is a financial institution
that maintains a bank account at a financial institution in the United
States.
`(3) COURT AUTHORITY OVER ASSETS- A court described in
paragraph (2) 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.
`(A) IN GENERAL- A court described in paragraph (2)
may appoint a Federal Receiver, in accordance with subparagraph (B) of
this paragraph, to collect, marshal, and take custody, control, and
possession of all assets of the defendant, wherever located, to satisfy
a civil judgment under this subsection, a forfeiture judgment under
section 981 or 982, or a criminal sentence under section 1957 or
subsection (a) of this section, including an order of restitution to
any victim of a specified unlawful activity.
`(B) APPOINTMENT AND AUTHORITY- A Federal Receiver described in subparagraph (A)--
`(i) may be appointed upon application of a
Federal prosecutor or a Federal or State regulator, by the court having
jurisdiction over the defendant in the case;
`(iii) shall have standing equivalent to that
of a Federal prosecutor for the purpose of submitting requests to
obtain information regarding the assets of the defendant--
`(I) from the Financial Crimes Enforcement Network of the Department of the Treasury; or
`(II) from a foreign country pursuant to a
mutual legal assistance treaty, multilateral agreement, or other
arrangement for international law enforcement assistance, provided that
such requests are in accordance with the policies and procedures of the
Attorney General.'.
SEC. 318. LAUNDERING MONEY THROUGH A FOREIGN BANK.
`(6) the term `financial institution' includes--
`(B) any foreign bank, as defined in section 1 of the International Banking Act of 1978 (12 U.S.C. 3101).'.
SEC. 319. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK ACCOUNTS.
`(A) IN GENERAL- For the purpose of a forfeiture
under this section or under the Controlled Substances Act (21 U.S.C.
801 et seq.), if funds are deposited into an account at a foreign bank,
and that foreign bank has an interbank account in the United States
with a covered financial institution (as defined in section 5318(j)(1)
of title 31), the funds shall be deemed to have been deposited into the
interbank account in the United States, and any restraining order,
seizure warrant, or arrest warrant in rem regarding the funds may be
served on the covered financial institution, and funds in the interbank
account, up to the value of the funds deposited into the account at the
foreign bank, may be restrained, seized, or arrested.
`(B) AUTHORITY TO SUSPEND- The Attorney General, in
consultation with the Secretary of the Treasury, may suspend or
terminate a forfeiture under this section if the Attorney General
determines that a conflict of law exists between the laws of the
jurisdiction in which the foreign bank is located and the laws of the
United States with respect to liabilities arising from the restraint,
seizure, or arrest of such funds, and that such suspension or
termination would be in the interest of justice and would not harm the
national interests of the United States.
`(2) NO REQUIREMENT FOR GOVERNMENT TO TRACE FUNDS- If a
forfeiture action is brought against funds that are restrained, seized,
or arrested under paragraph (1), it shall not be necessary for the
Government to establish that the funds are directly traceable to the
funds that were deposited into the foreign bank, nor shall it be
necessary for the Government to rely on the application of section 984.
`(3) CLAIMS BROUGHT BY OWNER OF THE FUNDS- If a
forfeiture action is instituted against funds restrained, seized, or
arrested under paragraph (1), the owner of the funds deposited into the
account at the foreign bank may contest the forfeiture by filing a
claim under section 983.
`(4) DEFINITIONS- For purposes of this subsection, the following definitions shall apply:
`(A) INTERBANK ACCOUNT- The term `interbank account' has the same meaning as in section 984(c)(2)(B).
`(i) IN GENERAL- Except as provided in clause (ii), the term `owner'--
`(I) means the person who was the owner, as
that term is defined in section 983(d)(6), of the funds that were
deposited into the foreign bank at the time such funds were deposited;
and
`(II) does not include either the foreign
bank or any financial institution acting as an intermediary in the
transfer of the funds into the interbank account.
`(ii) EXCEPTION- The foreign bank may be
considered the `owner' of the funds (and no other person shall qualify
as the owner of such funds) only if--
`(I) the basis for the forfeiture action is wrongdoing committed by the foreign bank; or
`(II) the foreign bank establishes, by a
preponderance of the evidence, that prior to the restraint, seizure, or
arrest of the funds, the foreign bank had discharged all or part of its
obligation to the prior owner of the funds, in which case the foreign
bank shall be deemed the owner of the funds to the extent of such
discharged obligation.'.
`(k) BANK RECORDS RELATED TO ANTI-MONEY LAUNDERING PROGRAMS-
`(1) DEFINITIONS- For purposes of this subsection, the following definitions shall apply:
`(A) APPROPRIATE FEDERAL BANKING AGENCY- The term
`appropriate Federal banking agency' has the same meaning as in section
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
`(B) INCORPORATED TERM- The term `correspondent account' has the same meaning as in section 5318A(f)(1)(B) [Should be 5318A(e)(1)(B) - Editor.].
`(2) 120-HOUR RULE- Not later than 120 hours after
receiving a request by an appropriate Federal banking agency for
information related to anti-money laundering compliance by a covered
financial institution or a customer of such institution, a covered
financial institution shall provide to the appropriate Federal banking
agency, or make available at a location specified by the representative
of the appropriate Federal banking agency, information and account
documentation for any account opened, maintained, administered or
managed in the United States by the covered financial institution.
`(3) FOREIGN BANK RECORDS-
`(A) SUMMONS OR SUBPOENA OF RECORDS-
`(i) IN GENERAL- The Secretary of the Treasury
or the Attorney General may issue a summons or subpoena to any foreign
bank that maintains a correspondent account in the United States and
request records related to such correspondent account, including
records maintained outside of the United States relating to the deposit
of funds into the foreign bank.
`(ii) SERVICE OF SUMMONS OR SUBPOENA- A summons
or subpoena referred to in clause (i) may be served on the foreign bank
in the United States if the foreign bank has a representative 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.
`(B) ACCEPTANCE OF SERVICE-
`(i) MAINTAINING RECORDS IN THE UNITED STATES-
Any covered financial institution which maintains a correspondent
account in the United States for a foreign bank shall maintain records
in the United States identifying the owners of such foreign bank and
the name and address of a person who resides in the United States and
is authorized to accept service of legal process for records regarding
the correspondent account.
`(ii) LAW ENFORCEMENT REQUEST- Upon receipt of
a written request from a Federal law enforcement officer for
information required to be maintained under this paragraph, the covered
financial institution shall provide the information to the requesting
officer not later than 7 days after receipt of the request.
`(C) TERMINATION OF CORRESPONDENT RELATIONSHIP-
`(i) TERMINATION UPON RECEIPT OF NOTICE- A
covered financial institution shall terminate any correspondent
relationship with a foreign bank not later than 10 business days after
receipt of written notice from the Secretary or the Attorney General
(in each case, after consultation with the other) that the foreign bank
has failed--
`(I) to comply with a summons or subpoena issued under subparagraph (A); or
`(II) to initiate proceedings in a United States court contesting such summons or subpoena.
`(ii) LIMITATION ON LIABILITY- A covered
financial institution shall not be liable to any person in any court or
arbitration proceeding for terminating a correspondent relationship in
accordance with this subsection.
`(iii) FAILURE TO TERMINATE RELATIONSHIP-
Failure to terminate a correspondent relationship in accordance with
this subsection shall render the covered financial institution liable
for a civil penalty of up to $10,000 per day until the correspondent
relationship is so terminated.'.
(d) AUTHORITY TO ORDER CONVICTED CRIMINAL TO RETURN PROPERTY LOCATED ABROAD-
(1) FORFEITURE OF SUBSTITUTE PROPERTY- Section 413(p)
of the Controlled Substances Act (21 U.S.C. 853) is amended to read as follows:
`(p) FORFEITURE OF SUBSTITUTE PROPERTY-
`(1) IN GENERAL- Paragraph (2) of this subsection shall
apply, if any property described in subsection (a), as a result of any act or omission of the defendant--
`(A) cannot be located upon the exercise of due diligence;
`(B) has been transferred or sold to, or deposited with, a third party;
`(C) has been placed beyond the jurisdiction of the court;
`(D) has been substantially diminished in value; or
`(E) has been commingled with other property which cannot be divided without difficulty.
`(2) SUBSTITUTE PROPERTY- In any case described in any
of subparagraphs (A) through (E) of paragraph (1), the court shall
order the forfeiture of any other property of the defendant, up to the
value of any property described in subparagraphs (A) through (E) of
paragraph (1), as applicable.
`(3) RETURN OF PROPERTY TO JURISDICTION- In the case of
property described in paragraph (1)(C), the court may, in addition to
any other action authorized by this subsection, order the defendant to
return the property to the jurisdiction of the court so that the
property may be seized and forfeited.'.
(2) PROTECTIVE ORDERS- Section 413(e) of the Controlled
Substances Act (21 U.S.C. 853(e)) is amended by adding at the end the
following:
`(4) ORDER TO REPATRIATE AND DEPOSIT-
`(A) IN GENERAL- Pursuant to its authority to enter
a pretrial restraining order under this section, the court may order a
defendant to repatriate any property that may be seized and forfeited,
and to deposit that property pending trial in the registry of the
court, or with the United States Marshals Service or the Secretary of
the Treasury, in an interest-bearing account, if appropriate.
`(B) FAILURE TO COMPLY- Failure to comply with an
order under this subsection, or an order to repatriate property under
subsection (p), shall be punishable as a civil or criminal contempt of
court, and may also result in an enhancement of the sentence of the
defendant under the obstruction of justice provision of the Federal
Sentencing Guidelines.'.
SEC. 320. PROCEEDS OF FOREIGN CRIMES.
`(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 an offense, if the offense--
`(i) involves the manufacture, importation, sale,
or distribution of a controlled substance (as that term is defined for
purposes of the Controlled Substances Act), or any other conduct
described in section 1956(c)(7)(B);
`(ii) would be punishable within the jurisdiction
of the foreign nation by death or imprisonment for a term exceeding 1
year; and
`(iii) would be punishable under the laws of the
United States by imprisonment for a term exceeding 1 year, if the act
or activity constituting the offense had occurred within the
jurisdiction of the United States.'.
(a) CREDIT UNIONS- Subparagraph (E) of section 5312(2) of title 31, United States Code [Should be 5312(a)(2)(E) - Editor] amended to read as follows:
`(c) ADDITIONAL DEFINITIONS- For purposes of this subchapter, the following definitions shall apply:
`(1) CERTAIN INSTITUTIONS INCLUDED IN DEFINITION- The
term `financial institution' (as defined in subsection (a)) includes
the following:
`(A) Any futures commission merchant, commodity
trading advisor, or commodity pool operator registered, or required to
register, under the Commodity Exchange Act.'.
(c) CFTC INCLUDED- For purposes of this Act and any
amendment made by this Act to any other provision of law, the term
`Federal functional regulator' includes the Commodity Futures Trading
Commission.
SEC. 322. CORPORATION REPRESENTED BY A FUGITIVE.
Section 2466 of title 18, United States Code, [Should be 28 U.S.C. 2466 - Editor] is amended by
designating the present matter as subsection (a), and adding at the end
the following:
`(b) Subsection (a) may be applied to a claim filed by a
corporation if any majority shareholder, or individual filing the claim
on behalf of the corporation is a person to whom subsection (a)
applies.'.
SEC. 323. ENFORCEMENT OF FOREIGN JUDGMENTS.
(1) in subsection (d), by adding the following after paragraph (2):
`(3) PRESERVATION OF PROPERTY-
`(A) IN GENERAL- To preserve the availability of
property subject to a foreign forfeiture or confiscation judgment, the
Government may apply for, and the court may issue, a restraining order
pursuant to section 983(j) of title 18, at any time before or after an
application is filed pursuant to subsection (c)(1) of this section.
`(B) EVIDENCE- The court, in issuing a restraining order under subparagraph (A)--
`(i) may rely on information set forth in an
affidavit describing the nature of the proceeding or investigation
underway in the foreign country, and setting forth a reasonable basis
to believe that the property to be restrained will be named in a
judgment of forfeiture at the conclusion of such proceeding; or
`(ii) may register and enforce a restraining
order that has been issued by a court of competent jurisdiction in the
foreign country and certified by the Attorney General pursuant to
subsection (b)(2).
`(C) LIMIT ON GROUNDS FOR OBJECTION- No person may
object to a restraining order under subparagraph (A) on any ground that
is the subject of parallel litigation involving the same property that
is pending in a foreign court.';
(2) in subsection (b)(1)(C), by striking `establishing
that the defendant received notice of the proceedings in sufficient
time to enable the defendant' and inserting `establishing that the
foreign nation took steps, in accordance with the principles of due
process, to give notice of the proceedings to all persons with an
interest in the property in sufficient time to enable such persons';
(3) in subsection (d)(1)(D), by striking `the defendant
in the proceedings in the foreign court did not receive notice' and
inserting `the foreign nation did not take steps, in accordance with
the principles of due process, to give notice of the proceedings to a
person with an interest in the property'; and
(4) in subsection (a)(2)(A), by inserting `, any
violation of foreign law that would constitute a violation or an
offense for which property could be forfeited under Federal law if the
offense were committed in the United States' after `United Nations
Convention'.
SEC. 324. REPORT AND RECOMMENDATION.
Not later than 30 months after the date of enactment of
this Act, the Secretary, in consultation with the Attorney General, the
Federal banking agencies (as defined at section 3 of the Federal Deposit Insurance Act), the National Credit Union Administration Board,
the Securities and Exchange Commission, and such other agencies as the
Secretary may determine, at the discretion of the Secretary, shall
evaluate the operations of the provisions of this subtitle and make
recommendations to Congress as to any legislative action with respect
to this subtitle as the Secretary may determine to be necessary or
advisable.
SEC. 325. CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS.
`(3) CONCENTRATION ACCOUNTS- The Secretary may
prescribe regulations under this subsection that govern maintenance of
concentration accounts by financial institutions, in order to ensure
that such accounts 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, which regulations shall, at
a minimum--
`(A) prohibit financial institutions from allowing
clients to direct transactions that move their funds into, out of, or
through the concentration accounts of the financial institution;
`(B) prohibit financial institutions and their
employees from informing customers of the existence of, or the means of
identifying, the concentration accounts of the institution; and
`(C) require each financial institution to
establish written procedures governing the documentation of all
transactions involving a concentration account, which procedures shall
ensure that, any time a transaction involving a concentration account
commingles funds belonging to 1 or more customers, the identity of, and
specific amount belonging to, each customer is documented.'.
SEC. 326. VERIFICATION OF IDENTIFICATION.
`(l) IDENTIFICATION AND VERIFICATION OF ACCOUNTHOLDERS-
`(1) IN GENERAL- Subject to the requirements of this
subsection, the Secretary of the Treasury shall prescribe regulations
setting forth the minimum standards for financial institutions and
their customers regarding the identity of the customer that shall apply
in connection with the opening of an account at a financial institution.
`(2) MINIMUM REQUIREMENTS- The regulations shall, at a
minimum, require financial institutions to implement, and customers
(after being given adequate notice) to comply with, reasonable
procedures for--
`(A) verifying the identity of any person seeking to open an account to the extent reasonable and practicable;
`(B) maintaining records of the information used to
verify a person's identity, including name, address, and other
identifying information; and
`(C) consulting lists of known or suspected
terrorists or terrorist organizations provided to the financial
institution by any government agency to determine whether a person
seeking to open an account appears on any such list.
`(3) FACTORS TO BE CONSIDERED- In prescribing
regulations under this subsection, the Secretary shall take into
consideration the various types of accounts maintained by various types
of financial institutions, the various methods of opening accounts, and
the various types of identifying information available.
`(4) CERTAIN FINANCIAL INSTITUTIONS- In the case of any
financial institution the business of which is engaging in financial
activities described in section 4(k) of the Bank Holding Company Act of 1956 (including financial activities subject to the jurisdiction of the
Commodity Futures Trading Commission), the regulations prescribed by
the Secretary under paragraph (1) shall be prescribed jointly with each
Federal functional regulator (as defined in section 509 of the
Gramm-Leach-Bliley Act, including the Commodity Futures Trading
Commission) appropriate for such financial institution.
`(5) EXEMPTIONS- The Secretary (and, in the case of any
financial institution described in paragraph (4), any Federal agency
described in such paragraph) may, by regulation or order, exempt any
financial institution or type of account from the requirements of any
regulation prescribed under this subsection in accordance with such
standards and procedures as the Secretary may prescribe.
`(6) EFFECTIVE DATE- Final regulations prescribed under
this subsection shall take effect before the end of the 1-year period
beginning on the date of enactment of the International Money
Laundering Abatement and Financial Anti-Terrorism Act of 2001 [I.E.: This Title of the USA PATRIOT Act - Editor].'.
(b) STUDY AND REPORT REQUIRED- Within 6 months after the
date of enactment of this Act, the Secretary, in consultation with the
Federal functional regulators (as defined in section 509 of the
Gramm-Leach-Bliley Act) and other appropriate Government agencies,
shall submit a report to the Congress containing recommendations for--
(1) determining the most timely and effective way to
require foreign nationals to provide domestic financial institutions
and agencies with appropriate and accurate information, comparable to
that which is required of United States nationals, concerning the
identity, address, and other related information about such foreign
nationals necessary to enable such institutions and agencies to comply
with the requirements of this section;
(2) requiring foreign nationals to apply for and
obtain, before opening an account with a domestic financial
institution, an identification number which would function similarly to
a Social Security number or tax identification number; and
(3) establishing a system for domestic financial
institutions and agencies to review information maintained by relevant
Government agencies for purposes of verifying the identities of foreign
nationals seeking to open accounts at those institutions and agencies.
SEC. 327. CONSIDERATION OF ANTI-MONEY LAUNDERING RECORD.
(a) BANK HOLDING COMPANY ACT OF 1956-
(1) IN GENERAL- Section 3(c) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the end
the following new paragraph:
`(6) MONEY LAUNDERING- In every case, the Board shall
take into consideration the effectiveness of the company or companies
in combatting money laundering activities, including in overseas
branches.'.
(2) SCOPE OF APPLICATION- The amendment made by paragraph
(1) shall apply with respect to any application submitted to the Board
of Governors of the Federal Reserve System under section 3 of the Bank
Holding Company Act of 1956 after December 31, 2001, which has not been
approved by the Board before the date of enactment of this Act.
(b) MERGERS SUBJECT TO REVIEW UNDER FEDERAL DEPOSIT INSURANCE ACT-
(1) IN GENERAL- Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended--
(A) by redesignating paragraph (11) as paragraph (12); and
(B) by inserting after paragraph (10), the following new paragraph:
`(11) MONEY LAUNDERING- In every case, the responsible
agency, shall take into consideration the effectiveness of any insured
depository institution involved in the proposed merger transaction in
combatting money laundering activities, including in overseas
branches.'.
(2) SCOPE OF APPLICATION- The amendment made by
paragraph (1) shall apply with respect to any application submitted to
the responsible agency under section 18(c) of the Federal Deposit Insurance Act after December 31, 2001, which has not been approved by
all appropriate responsible agencies before the date of enactment of
this Act.
SEC. 328. INTERNATIONAL COOPERATION ON IDENTIFICATION OF ORIGINATORS OF WIRE TRANSFERS.
(1) in consultation with the Attorney General and the
Secretary of State, take all reasonable steps to 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, with the information to remain with the transfer from its
origination until the point of disbursement; and
(2) report annually to the Committee on Financial
Services of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on--
(A) progress toward the goal enumerated in
paragraph (1), as well as impediments to implementation and an
estimated compliance rate; and
(B) impediments to instituting a regime in which
all appropriate identification, as defined by the Secretary, about wire
transfer recipients shall be included with wire transfers from their
point of origination until disbursement.
SEC. 329. CRIMINAL PENALTIES.
Any person who is an official or employee of any
department, agency, bureau, office, commission, or other entity of the
Federal Government, and any other person who is acting for or on behalf
of any such entity, who, directly or indirectly, in connection with the
administration of this title, corruptly demands, seeks, receives,
accepts, or agrees to receive or accept anything of value personally or
for any other person or entity in return for--
(1) being influenced in the performance of any official act;
(2) being influenced to commit or aid in the
committing, or to collude in, or allow, any fraud, or make opportunity
for the commission of any fraud, on the United States; or
(3) being induced to do or omit to do any act in violation of the official duty of such official or person,
shall be fined in an amount not more than 3 times the
monetary equivalent of the thing of value, or imprisoned for not more
than 15 years, or both. A violation of this section shall be subject to
chapter 227 of title 18, United States Code, and the provisions of the United States Sentencing Guidelines.
SEC. 330. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF
MONEY LAUNDERING, FINANCIAL CRIMES, AND THE FINANCES OF TERRORIST
GROUPS.
(a) NEGOTIATIONS- It is the sense of the Congress that the
President should direct the Secretary of State, the Attorney General,
or the Secretary of the Treasury, as appropriate, and in consultation
with the Board of Governors of the Federal Reserve System, to seek to
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.
(b) PURPOSES OF NEGOTIATIONS- It is the sense of the
Congress that, in carrying out any negotiations described in paragraph
(1), the President should direct the Secretary of State, the Attorney
General, or the Secretary of the Treasury, as appropriate, to seek to
enter into and further cooperative efforts, voluntary information
exchanges, the use of letters rogatory, mutual legal assistance
treaties, and international agreements to--
(1) ensure that foreign banks and other financial
institutions maintain adequate records of 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
(2) establish a mechanism whereby such records may be
made available to United States law enforcement officials and domestic
financial institution supervisors, when appropriate.
Subtitle B--Bank Secrecy Act Amendments and Related Improvements
SEC. 351. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS ACTIVITIES.
`(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 as 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.'.
`(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-
`(i) RULE OF CONSTRUCTION- 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 information that was included in a report to which
subparagraph (A) applies--
`(II) in a written termination notice or
employment reference that is provided in accordance with the rules of a
self-regulatory organization registered with the Securities and
Exchange Commission or the Commodity Futures Trading Commission,
except that such written reference or notice may
not disclose that such information was also included in any such
report, or that such report was made.
`(ii) INFORMATION NOT REQUIRED- Clause (i)
shall not be construed, by itself, to create any affirmative duty to
include any information described in clause (i) in any employment
reference or termination notice referred to in clause (i).'.
SEC. 352. ANTI-MONEY LAUNDERING PROGRAMS.
`(h) ANTI-MONEY LAUNDERING PROGRAMS-
`(1) IN GENERAL- In order to guard against money
laundering through financial institutions, each financial institution
shall establish anti-money laundering programs, including, at a
minimum--
`(A) the development of internal policies, procedures, and controls;
`(B) the designation of a compliance officer;
`(C) an ongoing employee training program; and
`(D) an independent audit function to test programs.
`(2) REGULATIONS- The Secretary of the Treasury, after
consultation with the appropriate Federal functional regulator (as
defined in section 509 of the Gramm-Leach-Bliley Act), may prescribe
minimum standards for programs established under paragraph (1), and may
exempt from the application of those standards any financial
institution that is not subject to the provisions of the rules
contained in part 103 of title 31, of the Code of Federal Regulations,
or any successor rule thereto, for so long as such financial
institution is not subject to the provisions of such rules.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a)
shall take effect at the end of the 180-day period beginning on the
date of enactment of this Act.
(c) DATE OF APPLICATION OF REGULATIONS; FACTORS TO BE TAKEN
INTO ACCOUNT- Before the end of the 180-day period beginning on the
date of enactment of this Act, the Secretary shall prescribe
regulations that consider the extent to which the requirements imposed
under this section are commensurate with the size, location, and
activities of the financial institutions to which such regulations
apply.
SEC. 353. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING
ORDERS AND CERTAIN RECORDKEEPING REQUIREMENTS, AND LENGTHENING
EFFECTIVE PERIOD OF GEOGRAPHIC TARGETING ORDERS.
(1) by inserting `or order issued' after `subchapter or a regulation prescribed'; and
(A) by inserting `or order issued' after `willfully violating this subchapter or a regulation prescribed'; and
(A) by inserting `or order issued' after `willfully violating this subchapter or a regulation prescribed'; and
(c) STRUCTURING TRANSACTIONS TO EVADE TARGETING ORDER OR
CERTAIN RECORDKEEPING REQUIREMENTS- Section 5324(a) of title 31, United
States Code, is amended--
(1) by inserting a comma after `shall';
(4) in paragraph (2), by inserting `, to file a report
or to maintain a record required by any order issued under section
5326, or to maintain a record required pursuant to any regulation
prescribed 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'.
SEC. 354. ANTI-MONEY LAUNDERING STRATEGY.
`(12) DATA REGARDING FUNDING OF TERRORISM- Data
concerning money laundering efforts related to the funding of acts of
international terrorism, and efforts directed at the prevention,
detection, and prosecution of such funding.'.
SEC. 355. 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:
`(w) WRITTEN EMPLOYMENT REFERENCES MAY CONTAIN SUSPICIONS OF INVOLVEMENT IN ILLEGAL ACTIVITY-
`(1) AUTHORITY TO DISCLOSE INFORMATION- 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) INFORMATION NOT REQUIRED- Nothing in paragraph (1)
shall be construed, by itself, to create any affirmative duty to
include any information described in paragraph (1) in any employment
reference referred to in paragraph (1).
`(3) MALICIOUS INTENT- Notwithstanding any other
provision of this subsection, voluntary disclosure made by an insured
depository institution, and any director, officer, employee, or agent
of such institution under this subsection concerning potentially
unlawful activity that is made with malicious intent, shall not be
shielded from liability from the person identified in the disclosure.
`(4) DEFINITION- For purposes of this subsection, the
term `insured depository institution' includes any uninsured branch or
agency of a foreign bank.'.
SEC. 356. REPORTING OF SUSPICIOUS ACTIVITIES BY SECURITIES BROKERS AND DEALERS; INVESTMENT COMPANY STUDY.
(a) DEADLINE FOR SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS
FOR REGISTERED BROKERS AND DEALERS- The Secretary, after consultation
with the Securities and Exchange Commission and the Board of Governors
of the Federal Reserve System, shall publish proposed 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. Such
regulations shall be published in final form not later than July 1,
2002.
(b) SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS FOR FUTURES
COMMISSION MERCHANTS, COMMODITY TRADING ADVISORS, AND COMMODITY POOL
OPERATORS- The Secretary, in consultation with the Commodity Futures
Trading Commission, may prescribe regulations requiring futures
commission merchants, commodity trading advisors, and commodity pool
operators registered under the Commodity Exchange Act to submit
suspicious activity reports under section 5318(g) of title 31, United States Code.
(c) REPORT ON INVESTMENT COMPANIES-
(2) DEFINITION- For purposes of this subsection, the term `investment company'--
(A) has the same meaning as in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-3); and
(B) includes any person that, but for the
exceptions provided for in paragraph (1) or (7) of section 3(c) of the
Investment Company Act of 1940 (15 U.S.C. 80a-3(c)), would be an investment company.
(3) ADDITIONAL RECOMMENDATIONS- The report required by
paragraph (1) may make different recommendations for different types of
entities covered by this subsection.
(4) BENEFICIAL OWNERSHIP OF PERSONAL HOLDING COMPANIES-
The report described in paragraph (1) shall also include
recommendations as to whether the Secretary should promulgate
regulations to treat any corporation or business or other grantor trust
whose assets are predominantly securities, bank certificates of
deposit, or other securities or investment instruments (other than such
as relate to operating subsidiaries of such corporation or trust) and
that has 5 or fewer common shareholders or holders of beneficial or
other equity interest, as a financial institution within the meaning of
that phrase in section 5312(a)(2)(I) and whether to require such
corporations or trusts to disclose their beneficial owners when opening
accounts or initiating funds transfers at any domestic financial
institution.
SEC. 357. SPECIAL REPORT ON ADMINISTRATION OF BANK SECRECY PROVISIONS.
(a) REPORT REQUIRED- Not later than 6 months after the date
of enactment of this Act, the Secretary shall submit a report to the
Congress relating to the role of the Internal Revenue Service in the
administration of subchapter II of chapter 53 of title 31, United States Code (commonly known as the `Bank Secrecy Act').
(b) CONTENTS- The report required by subsection (a)--
(1) shall specifically address, and contain recommendations concerning--
(A) whether it is advisable to shift the processing
of information reporting to the Department of the Treasury under the
Bank Secrecy Act provisions to facilities other than those managed by
the Internal Revenue Service; and
(B) whether it remains reasonable and efficient, in
light of the objective of both anti-money-laundering programs and
Federal tax administration, for the Internal Revenue Service to retain
authority and responsibility for audit and examination of the
compliance of money services businesses and gaming institutions with
those Bank Secrecy Act provisions; and
(2) shall, if the Secretary determines that the
information processing responsibility or the audit and examination
responsibility of the Internal Revenue Service, or both, with respect
to those Bank Secrecy Act provisions should be transferred to other
agencies, include the specific recommendations of the Secretary
regarding the agency or agencies to which any such function should be
transferred, complete with a budgetary and resources plan for
expeditiously accomplishing the transfer.
SEC. 358. BANK SECRECY PROVISIONS AND ACTIVITIES OF UNITED STATES INTELLIGENCE AGENCIES TO FIGHT INTERNATIONAL TERRORISM.
(a) AMENDMENT RELATING TO THE PURPOSES OF CHAPTER 53 OF
TITLE 31, UNITED STATES CODE- Section 5311 of title 31, United States Code, is amended by inserting before the period at the end the
following: `, or in the conduct of intelligence or counterintelligence
activities, including analysis, to protect against international
terrorism'.
(b) AMENDMENT RELATING TO REPORTING OF SUSPICIOUS
ACTIVITIES- Section 5318(g)(4)(B) of title 31, United States Code, is amended by striking `or supervisory agency' and inserting `,
supervisory agency, or United States intelligence agency for use in the
conduct of intelligence or counterintelligence activities, including
analysis, to protect against international terrorism'.
`Sec. 5319. Availability of reports
`The Secretary of the Treasury shall make information in a
report filed under this subchapter available to an agency, including
any State financial institutions supervisory agency, United States
intelligence agency or self-regulatory organization registered with the
Securities and Exchange Commission or the Commodity Futures Trading
Commission, upon request of the head of the agency or organization. The
report shall be available for a purpose that is consistent with this
subchapter. The Secretary may only require reports on the use of such
information by any State financial institutions supervisory agency for
other than supervisory purposes or by United States intelligence
agencies. However, a report and records of reports are exempt from
disclosure under section 552 of title 5.'.
(d) AMENDMENT RELATING TO THE PURPOSES OF THE BANK SECRECY
ACT PROVISIONS- Section 21(a) of the Federal Deposit Insurance Act (12
U.S.C. 1829b(a)) is amended to read as follows:
`(a) CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE-
`(1) FINDINGS- Congress finds that--
`(A) adequate records maintained by insured
depository institutions have a high degree of usefulness in criminal,
tax, and regulatory investigations or proceedings, and that, given the
threat posed to the security of the Nation on and after the terrorist
attacks against the United States on September 11, 2001, such records
may also have a high degree of usefulness in the conduct of
intelligence or counterintelligence activities, including analysis, to
protect against domestic and international terrorism; and
`(B) microfilm or other reproductions and other
records made by insured depository institutions of checks, as well as
records kept by such institutions, of the identity of persons
maintaining or authorized to act with respect to accounts therein, have
been of particular value in proceedings described in subparagraph (A).
`(2) PURPOSE- It is the purpose of this section to
require the maintenance of appropriate types of records by insured
depository institutions in the United States where such records have a
high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings, recognizes that, given the threat posed
to the security of the Nation on and after the terrorist attacks
against the United States on September 11, 2001, such records may also
have a high degree of usefulness in the conduct of intelligence or
counterintelligence activities, including analysis, to protect against
international terrorism.'.
(e) AMENDMENT RELATING TO THE PURPOSES OF THE BANK SECRECY
ACT- Section 123(a) of Public Law 91-508 (12 U.S.C. 1953(a)) is amended
to read as follows:
`(a) REGULATIONS- If the Secretary determines that the
maintenance of appropriate records and procedures by any uninsured bank
or uninsured institution, or any person engaging in the business of
carrying on in the United States any of the functions referred to in
subsection (b), has a high degree of usefulness in criminal, tax, or
regulatory investigations or proceedings, and that, given the threat
posed to the security of the Nation on and after the terrorist attacks
against the United States on September 11, 2001, such records may also
have a high degree of usefulness in the conduct of intelligence or
counterintelligence activities, including analysis, to protect against
international terrorism, he may by regulation require such bank,
institution, or person.'.
(f) AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT- The Right to Financial Privacy Act of 1978 is amended--
(1) in section 1112(a) (12 U.S.C. 3412(a)), by
inserting `, or intelligence or counterintelligence activity,
investigation or analysis related to international terrorism' after
`legitimate law enforcement inquiry';
(A) in subparagraph (A), by striking `or' at the end;
(B) in subparagraph (B), by striking the period at the end and inserting `; or'; and
(C) by adding at the end the following:
`(C) a Government authority authorized to conduct
investigations of, or intelligence or counterintelligence analyses
related to, international terrorism for the purpose of conducting such
investigations or analyses.'; and
(3) in section 1120(a)(2) (12 U.S.C. 3420(a)(2)), by
inserting `, or for a purpose authorized by section 1112(a)' before the
semicolon at the end.
(g) AMENDMENT TO THE FAIR CREDIT REPORTING ACT-
(A) by redesignating the second of the 2 sections
designated as section 624 (15 U.S.C. 1681u) (relating to disclosure to
FBI for counterintelligence purposes) as section 625; and
(B) by adding at the end the following new section:
`Sec. 626. Disclosures to governmental agencies for counterterrorism purposes
`(a) DISCLOSURE- Notwithstanding section 604 or any other
provision of this title, a consumer reporting agency shall furnish a
consumer report of a consumer and all other information in a consumer's
file to a government agency authorized to conduct investigations of, or
intelligence or counterintelligence activities or analysis related to,
international terrorism when presented with a written certification by
such government agency that such information is necessary for the
agency's conduct or such investigation, activity or analysis.
`(b) FORM OF CERTIFICATION- The certification described in
subsection (a) shall be signed by a supervisory official designated by
the head of a Federal agency or an officer of a Federal agency whose
appointment to office is required to be made by the President, by and
with the advice and consent of the Senate.
`(c) CONFIDENTIALITY- No consumer reporting agency, or
officer, employee, or agent of such consumer reporting agency, shall
disclose to any person, or specify in any consumer report, that a
government agency has sought or obtained access to information under
subsection (a).
`(d) RULE OF CONSTRUCTION- Nothing in section 625 shall be
construed to limit the authority of the Director of the Federal Bureau
of Investigation under this section.
`(e) SAFE HARBOR- Notwithstanding any other provision of
this title, any consumer reporting agency or agent or employee thereof
making disclosure of consumer reports or other information pursuant to
this section in good-faith reliance upon a certification of a
governmental agency pursuant to the provisions of this section shall
not be liable to any person for such disclosure under this subchapter,
the constitution of any State, or any law or regulation of any State or
any political subdivision of any State.'.
(2) CLERICAL AMENDMENTS- The table of sections for the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
(A) by redesignating the second of the 2 items designated as section 624 as section 625; and
(B) by inserting after the item relating to section 625 (as so redesignated) the following new item:
`626. Disclosures to governmental agencies for counterterrorism purposes.'.
(h) APPLICATION OF AMENDMENTS- The amendments made by this
section shall apply with respect to reports filed or records maintained
on, before, or after the date of enactment of this Act.
SEC. 359. REPORTING OF SUSPICIOUS ACTIVITIES BY UNDERGROUND BANKING SYSTEMS.
`(R) a licensed sender of money or any other person
who engages as a business in the transmission of funds, including any
person who engages as a business in an informal money transfer system
or any network of people who engage as a business in facilitating the
transfer of money domestically or internationally outside of the
conventional financial institutions system;'.
(b) MONEY TRANSMITTING BUSINESS- Section 5330(d)(1)(A) of
title 31, United States Code, is amended by inserting before the
semicolon the following: `or any other person who engages as a business
in the transmission of funds, including any person who engages as a
business in an informal money transfer system or any network of people
who engage as a business in facilitating the transfer of money
domestically or internationally outside of the conventional financial
institutions system;'.
`(l) APPLICABILITY OF RULES- Any rules promulgated pursuant
to the authority contained in section 21 of the Federal Deposit
Insurance Act (12 U.S.C. 1829b) shall apply, in addition to any other
financial institution to which such rules apply, to any person that
engages as a business in the transmission of funds, including any
person who engages as a business in an informal money transfer system
or any network of people who engage as a business in facilitating the
transfer of money domestically or internationally outside of the
conventional financial institutions system.'.
(d) REPORT- Not later than 1 year after the date of
enactment of this Act, the Secretary of the Treasury shall report to
Congress on the need for any additional legislation relating to persons
who engage as a business in an informal money transfer system or any
network of people who engage as a business in facilitating the transfer
of money domestically or internationally outside of the conventional
financial institutions system, counter money laundering and regulatory
controls relating to underground money movement and banking systems,
including whether the threshold for the filing of suspicious activity
reports under section 5318(g) of title 31, United States Code should be
lowered in the case of such systems.
SEC. 360. USE OF AUTHORITY OF UNITED STATES EXECUTIVE DIRECTORS.
(a) ACTION BY THE PRESIDENT- If the President determines
that a particular foreign country has taken or has committed to take
actions that contribute to efforts of the United States to respond to,
deter, or prevent acts of international terrorism, the Secretary may,
consistent with other applicable provisions of law, instruct the United
States Executive Director of each international financial institution
to use the voice and vote of the Executive Director to support any loan
or other utilization of the funds of respective institutions for such
country, or any public or private entity within such country.
(b) USE OF VOICE AND VOTE- The Secretary may instruct the
United States Executive Director of each international financial
institution to aggressively use the voice and vote of the Executive
Director to require an auditing of disbursements at such institutions
to ensure that no funds are paid to persons who commit, threaten to
commit, or support terrorism.
(c) DEFINITION- For purposes of this section, the term
`international financial institution' means an institution described in
section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)).
SEC. 361. FINANCIAL CRIMES ENFORCEMENT NETWORK.
(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, in this section referred to as `FinCEN') on April 25,
1990, shall be a bureau in the Department of the Treasury.
`(1) APPOINTMENT- The head of FinCEN shall be the Director, who shall be appointed by the Secretary of the Treasury.
`(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, financial criminal activities, and
other financial activities to the Under Secretary of the Treasury for
Enforcement.
`(B) Maintain a government-wide data access
service, with access, in accordance with applicable legal requirements,
to the following:
`(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 of the Treasury for Enforcement to--
`(i) identify possible criminal activity 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;
`(iv) evaluate and recommend possible uses of special currency reporting requirements under section 5326;
`(v) determine emerging trends and methods in money laundering and other financial crimes;
`(vi) support the conduct of intelligence or
counterintelligence activities, including analysis, to protect against
international terrorism; and
`(vii) support government initiatives against money laundering.
`(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 terrorism, organized crime, money laundering, and other
financial crimes.
`(F) Assist Federal, State, local, and foreign law
enforcement and regulatory authorities in 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) Provide computer and data support and data
analysis to the Secretary of the Treasury for tracking and controlling
foreign assets.
`(H) Coordinate with financial intelligence units
in other countries on anti-terrorism and anti-money laundering
initiatives, and similar efforts.
`(J) Such other duties and powers as the Secretary of the Treasury may delegate or prescribe.
`(c) REQUIREMENTS RELATING TO MAINTENANCE AND 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
FinCEN which provide--
`(1) for the coordinated and efficient transmittal of
information to, entry of information into, and withdrawal of
information from, the data maintenance system maintained by the
Network, including--
`(A) the submission of reports through the Internet or other secure network, whenever possible;
`(B) the cataloguing of information in a manner
that facilitates rapid retrieval by law enforcement personnel of
meaningful data; 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 may provide, to identify information that
warrants immediate action; and
`(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.
`(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized
to be appropriated for FinCEN such sums as may be necessary for fiscal
years 2002, 2003, 2004, and 2005.'.
(b) COMPLIANCE WITH REPORTING REQUIREMENTS- The Secretary
of the Treasury shall study methods for improving compliance with the
reporting requirements established in section 5314 of title 31, United States Code, and shall submit a report on such study to the Congress by
the end of the 6-month period beginning on the date of enactment of
this Act and each 1-year period thereafter. The initial report shall
include historical data on compliance with such reporting requirements.
(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. 362. ESTABLISHMENT OF HIGHLY SECURE NETWORK.
(a) IN GENERAL- The Secretary shall establish a highly secure network in the Financial Crimes Enforcement Network that--
(2) provides financial institutions with alerts and
other information regarding suspicious activities that warrant
immediate and enhanced scrutiny.
(b) EXPEDITED DEVELOPMENT- The Secretary shall take such
action as may be necessary to ensure that the secure network required
under subsection (a) is fully operational before the end of the 9-month
period beginning on the date of enactment of this Act.
SEC. 363. INCREASE IN CIVIL AND CRIMINAL PENALTIES FOR MONEY LAUNDERING.
`(7) PENALTIES FOR INTERNATIONAL COUNTER MONEY
LAUNDERING VIOLATIONS- The Secretary may impose a civil money penalty
in an amount equal to not less than 2 times the amount of the
transaction, but not more than $1,000,000, on any financial institution
or agency that violates any provision of subsection (i) or (j) of
section 5318 or any special measures imposed under section 5318A.'.
`(d) A financial institution or agency that violates any
provision of subsection (i) or (j) of section 5318, or any special
measures imposed under section 5318A, or any regulation prescribed
under subsection (i) or (j) of section 5318 or section 5318A, shall be
fined in an amount equal to not less than 2 times the amount of the
transaction, but not more than $1,000,000.'.
SEC. 364. UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE FACILITIES.
Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended by adding at the end the following:
`(q) UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE FACILITIES-
`(1) Notwithstanding any other provision of law, to
authorize personnel to act as law enforcement officers to protect and
safeguard the premises, grounds, property, personnel, including members
of the Board, of the Board, or any Federal reserve bank, and operations
conducted by or on behalf of the Board or a reserve bank.
`(2) The Board may, subject to the regulations
prescribed under paragraph (5), delegate authority to a Federal reserve
bank to authorize personnel to act as law enforcement officers to
protect and safeguard the bank's premises, grounds, property,
personnel, and operations conducted by or on behalf of the bank.
`(3) Law enforcement officers designated or authorized
by the Board or a reserve bank under paragraph (1) or (2) are
authorized while on duty to carry firearms and make arrests without
warrants for any offense against the United States committed in their
presence, or for any felony cognizable under the laws of the United
States committed or being committed within the buildings and grounds of
the Board or a reserve bank if they have reasonable grounds to believe
that the person to be arrested has committed or is committing such a
felony. Such officers shall have access to law enforcement information
that may be necessary for the protection of the property or personnel
of the Board or a reserve bank.
`(4) For purposes of this subsection, the term `law
enforcement officers' means personnel who have successfully completed
law enforcement training and are authorized to carry firearms and make
arrests pursuant to this subsection.
`(5) The law enforcement authorities provided for in
this subsection may be exercised only pursuant to regulations
prescribed by the Board and approved by the Attorney General.'.
SEC. 365. REPORTS RELATING TO COINS AND CURRENCY RECEIVED IN NONFINANCIAL TRADE OR BUSINESS.
`Sec. 5331. 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) with the Financial Crimes
Enforcement Network at such time and in such manner as the Secretary
may, by regulation, 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;
`(A) the name and address, and such other
identification information as the Secretary may require, 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, including the identification of the person filing the report, as the Secretary may prescribe.
`(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).'.
(b) PROHIBITION ON STRUCTURING TRANSACTIONS-
(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 5333 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 5333 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 5333 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-
(c) DEFINITION OF NONFINANCIAL TRADE OR BUSINESS-
(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-
(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.
`5331. Reports relating to coins and currency received in nonfinancial trade or business.'.
(f) REGULATIONS- Regulations which the Secretary 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
enactment of this Act.
SEC. 366. 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.
(1) STUDY REQUIRED- The Secretary shall conduct a study of--
(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.
(2) REPORT REQUIRED- The Secretary of the Treasury
shall submit a report to the Congress before the end of the 1-year
period beginning on the date of 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.
Subtitle C--Currency Crimes and Protection
SEC. 371. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED STATES.
(a) FINDINGS- The Congress finds the following:
(1) Effective enforcement of the currency reporting
requirements of subchapter II of chapter 53 of title 31, United States Code, and the regulations prescribed under such subchapter, has forced
drug dealers and other criminals engaged in cash-based businesses to
avoid using traditional financial institutions.
(2) In their effort to avoid using traditional
financial institutions, drug dealers and other criminals are forced to
move large quantities of currency in bulk form to and through the
airports, border crossings, and other ports of entry where the currency
can be smuggled out of the United States and placed in a foreign
financial institution or sold on the black market.
(3) The transportation and smuggling of cash in bulk
form may now be the most common form of money laundering, and the
movement of large sums of cash is one of the most reliable warning
signs of drug trafficking, terrorism, money laundering, racketeering,
tax evasion and similar crimes.
(4) The intentional transportation into or out of the
United States of large amounts of currency or monetary instruments, in
a manner designed to circumvent the mandatory reporting provisions of
subchapter II of chapter 53 of title 31, United States Code, is the
equivalent of, and creates the same harm as, the smuggling of goods.
(5) The arrest and prosecution of bulk cash smugglers
are important parts of law enforcement's effort to stop the laundering
of criminal proceeds, but the couriers who attempt to smuggle the cash
out of the United States are typically low-level employees of large
criminal organizations, and thus are easily replaced. Accordingly, only
the confiscation of the smuggled bulk cash can effectively break the
cycle of criminal activity of which the laundering of the bulk cash is
a critical part.
(6) The current penalties for violations of the
currency reporting requirements are insufficient to provide a deterrent
to the laundering of criminal proceeds. In particular, in cases where
the only criminal violation under current law is a reporting offense,
the law does not adequately provide for the confiscation of smuggled
currency. In contrast, if the smuggling of bulk cash were itself an
offense, the cash could be confiscated as the corpus delicti of the
smuggling offense.
(b) PURPOSES- The purposes of this section are--
(1) to make the act of smuggling bulk cash itself a criminal offense;
(2) to authorize forfeiture of any cash or instruments of the smuggling offense; and
(3) to emphasize the seriousness of the act of bulk cash smuggling.
`Sec. 5332. Bulk cash smuggling into or out of the United States
`(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.
`(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.
`(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.
`(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.
`(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.'.
`5332. Bulk cash smuggling into or out of the United States.'.
SEC. 372. FORFEITURE IN CURRENCY REPORTING CASES.
`(1) CRIMINAL FORFEITURE-
`(A) IN GENERAL- The court in imposing sentence for
any violation of section 5313, 5316, or 5324 of this title, 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) CIVIL FORFEITURE- Any property involved in a
violation of section 5313, 5316, or 5324 of this title, or any
conspiracy to commit any such violation, and any property traceable to
any such violation or conspiracy, may be seized and 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.'.
(b) CONFORMING AMENDMENTS-
(A) by striking `of section 5313(a) or 5324(a) of title 31, or'; and
(B) by striking `However' and all that follows through the end of the subparagraph.
(A) by striking `of section 5313(a), 5316, or 5324 of title 31, or'; and
(B) by striking `However' and all that follows through the end of the paragraph.
SEC. 373. ILLEGAL MONEY TRANSMITTING BUSINESSES.
`Sec. 1960. Prohibition of unlicensed money transmitting businesses
`(a) Whoever knowingly conducts, controls, manages,
supervises, directs, or owns all or part of an unlicensed money
transmitting business, shall be fined in accordance with this title or
imprisoned not more than 5 years, or both.
`(b) As used in this section--
`(1) the term `unlicensed money transmitting business'
means a money transmitting business which affects interstate or foreign
commerce in any manner or degree and--
`(A) is operated without an appropriate money
transmitting license in a State where such operation is punishable as a
misdemeanor or a felony under State law, whether or not the defendant
knew that the operation was required to be licensed or that the
operation was so punishable;
`(C) otherwise involves the transportation or
transmission of funds that are known to the defendant to have been
derived from a criminal offense or are intended to be used to be used
to promote or support unlawful activity;
`(2) the term `money transmitting' includes
transferring funds on behalf of the public by any and all means
including but not limited to transfers within this country or to
locations abroad by wire, check, draft, facsimile, or courier; and
`(3) the term `State' means any State of the United
States, the District of Columbia, the Northern Mariana Islands, and any
commonwealth, territory, or possession of the United States.'.
SEC. 374. COUNTERFEITING DOMESTIC CURRENCY AND OBLIGATIONS.
(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'.
(e) PLATES, STONES, OR ANALOG, DIGITAL, OR ELECTRONIC IMAGES FOR COUNTERFEITING OBLIGATIONS OR SECURITIES-
`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.'.
(4) CLERICAL AMENDMENT- The table of sections for
chapter 25 of title 18, United States Code, is amended in the item
relating to section 474 by striking `or stones' and inserting `,
stones, or analog, digital, or electronic images'.
(1) by inserting `analog, digital, or electronic image,' after `impression, stamp,'; and
(2) by striking `ten years' and inserting `25 years'.
(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'.
SEC. 375. COUNTERFEITING FOREIGN CURRENCY AND OBLIGATIONS.
(d) PLATES, STONES, OR ANALOG, DIGITAL, OR ELECTRONIC IMAGES FOR COUNTERFEITING FOREIGN OBLIGATIONS OR SECURITIES-
`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'.
SEC. 376. LAUNDERING THE PROCEEDS OF TERRORISM.
SEC. 377. EXTRATERRITORIAL JURISDICTION.
`(h) Any person who, outside the jurisdiction of the United
States, engages in any act that, if committed within the jurisdiction
of the United States, would constitute an offense under subsection (a)
or (b) of this section, shall be subject to the fines, penalties,
imprisonment, and forfeiture provided in this title if--
`(1) the offense involves an access device issued,
owned, managed, or controlled by a financial institution, account
issuer, credit card system member, or other entity within the
jurisdiction of the United States; and
`(2) the person transports, delivers, conveys,
transfers to or through, or otherwise stores, secrets, or holds within
the jurisdiction of the United States, any article used to assist in
the commission of the offense or the proceeds of such offense or
property derived therefrom.'.