[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3235 Reported in House (RH)]

                                                 Union Calendar No. 241

103d CONGRESS

  2d Session

                               H. R. 3235

                          [Report No. 103-438]

_______________________________________________________________________

                                 A BILL

 To amend subchapter II of chapter 53 of title 31, United States Code, 
  to improve enforcement of antimoney laundering laws, and for other 
                               purposes.

_______________________________________________________________________

                             March 21, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 241
103d CONGRESS
  2d Session
                                H. R. 3235

                          [Report No. 103-438]

 To amend subchapter II of chapter 53 of title 31, United States Code, 
  to improve enforcement of antimoney laundering laws, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 1993

 Mr. Gonzalez (for himself and Mr. Neal of North Carolina) introduced 
  the following bill; which was referred to the Committee on Banking, 
                       Finance and Urban Affairs

                           November 10, 1993

    Additional sponsors: Mr. Flake, Mr. Kanjorski, Mr. Pickle, Ms. 
                       Velazquez, and Mr. Hinchey

                             March 21, 1994

  Additional sponsors: Mr. Wynn, Mr. Torres, Mr. Minge, and Mr. Klein

                             March 21, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on October 
                                7, 1993]

_______________________________________________________________________

                                 A BILL


 
 To amend subchapter II of chapter 53 of title 31, United States Code, 
  to improve enforcement of antimoney laundering laws, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Money Laundering 
Suppression Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Reform of CTR exemption requirements to reduce number and size 
                            of reports consistent with effective law 
                            enforcement.
Sec. 3. Single designee for reporting of suspicious transactions.
Sec. 4. Improvement of identification of money laundering schemes.
Sec. 5. Negotiable instruments drawn on foreign banks subject to 
                            recordkeeping and reporting requirements.
Sec. 6. Imposition of civil money penalties by appropriate Federal 
                            banking agencies.
Sec. 7. Uniform State licensing and regulation of check cashing, 
                            currency exchange, and money transmitting 
                            businesses.
Sec. 8. Registration of money transmitting businesses to promote 
                            effective law enforcement.
Sec. 9. Uniform Federal regulation of casinos.
Sec. 10. Uniform Federal administration of recordkeeping and reporting 
                            requirements.
Sec. 11. Criminal and civil penalty for structuring domestic and 
                            international transactions.
Sec. 12. GAO study of cashiers' checks.
Sec. 13. Technical corrections.

SEC. 2. REFORM OF CTR EXEMPTION REQUIREMENTS TO REDUCE NUMBER AND SIZE 
              OF REPORTS CONSISTENT WITH EFFECTIVE LAW ENFORCEMENT.

    (a) In General.--Section 5313 of title 31, United States Code, is 
amended by adding at the end the following new subsections:
    ``(d) Mandatory Exemptions From Reporting Requirements.--
            ``(1) In general.--The Secretary of the Treasury shall 
        exempt, pursuant to section 5318(a)(5), a depository 
        institution from the reporting requirements of subsection (a) 
        with respect to transactions between the depository institution 
        and the following categories of entities:
                    ``(A) Another depository institution.
                    ``(B) A department or agency of the United States, 
                any State, or any political subdivision of any State.
                    ``(C) Any entity established under the laws of the 
                United States, any State, or any political subdivision 
                of any State, or under an interstate compact between 2 
                or more States, which exercises governmental authority 
                on behalf of the United States, the State, or the 
                political subdivision.
                    ``(D) Any business or category of business the 
                reports on which have little or no value for law 
                enforcement purposes.
            ``(2) Notice of exemption.--The Secretary of the Treasury 
        shall publish in the Federal Register at such times as the 
        Secretary determines to be appropriate (but not less frequently 
        than once each year) a list of all the entities whose 
        transactions with a depository institution are exempt under 
        this subsection from the reporting requirements of subsection 
        (a).
    ``(e) Discretionary Exemptions From Reporting Requirements.--
            ``(1) In general.--The Secretary of the Treasury may 
        exempt, pursuant to section 5318(a)(5), a depository 
        institution from the reporting requirements of subsection (a) 
        with respect to transactions between the depository institution 
        and a qualified business customer of the institution on the 
        basis of information submitted to the Secretary by the 
        institution in accordance with procedures which the Secretary 
        shall establish.
            ``(2) Qualified business customer defined.--For purposes of 
        this subsection, the term `qualified business customer' means a 
        business which--
                    ``(A) maintains a transaction account (as defined 
                in section 19(b)(1)(C) of the Federal Reserve Act) at 
                the depository institution;
                    ``(B) frequently engages in transactions with the 
                depository institution which are subject to the 
                reporting requirements of subsection (a); and
                    ``(C) meets criteria which the Secretary determines 
                are sufficient to ensure that the purposes of this 
                subchapter are carried out without requiring a report 
                with respect to such transactions.
            ``(3) Criteria for exemption.--The Secretary of the 
        Treasury shall establish, by regulation, the criteria for 
        granting and maintaining an exemption under paragraph (1).
            ``(4) Guidelines.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall establish guidelines for depository institutions 
                to follow in selecting customers for an exemption under 
                this subsection.
                    ``(B) Contents.--The guidelines may include a 
                description of the types of businesses or an 
                itemization of specific businesses for which no 
                exemption will be granted under this subsection to any 
                depository institution.
            ``(5) Annual review.--The Secretary of the Treasury shall 
        prescribe regulations requiring each depository institution 
        to--
                    ``(A) review, at least once each year, the 
                qualified business customers of such institution with 
                respect to whom an exemption has been granted under 
                this subsection; and
                    ``(B) upon the completion of such review, resubmit 
                information about such customers, with such 
                modifications as the institution determines to be 
                appropriate, to the Secretary for the Secretary's 
                approval.
            ``(6) 2-year phase-in provision.--During the 2-year period 
        beginning on the date of the enactment of the Money Laundering 
        Suppression Act of 1994, this subsection shall be applied by 
        the Secretary on the basis of such criteria as the Secretary 
        determines to be appropriate to achieve an orderly 
        implementation of the requirements of this subsection.
    ``(f) Provisions Applicable to Mandatory and Discretionary 
Exemptions.--
            ``(1) Limitation on liability of depository institutions.--
        No depository institution shall be subject to any penalty which 
        may be imposed under this subchapter for the failure of the 
        institution to file a report with respect to a transaction with 
        a customer for whom an exemption has been granted under 
        subsection (d) or (e) unless the institution--
                    ``(A) knowingly files false or incomplete 
                information to the Secretary with respect to the 
                transaction or the customer engaging in the 
                transaction; or
                    ``(B) has reason to believe at the time the 
                exemption is granted or the transaction is entered into 
                that the customer or the transaction does not meet the 
                criteria established for granting such exemption.
            ``(2) Coordination with other provisions.--Any exemption 
        granted by the Secretary of the Treasury under section 5318(a) 
        in accordance with this section, and any transaction which is 
        subject to such exemption, shall be subject to any other 
        provision of law applicable to such exemption, including--
                    ``(A) the authority of the Secretary, under section 
                5318(a)(5), to revoke such exemption at any time; and
                    ``(B) any requirement to report, or any authority 
                to require a report on, any possible violation of any 
                law or regulation or any suspected criminal activity.
    ``(g) Depository Institution Defined.--For purposes of this 
section, the term `depository institution'--
            ``(1) has the meaning given to such term in section 
        19(b)(1)(A) of the Federal Reserve Act; and
            ``(2) includes--
                    ``(A) any branch, agency, or commercial lending 
                company (as such terms are defined in section 1(b) of 
                the International Banking Act of 1978);
                    ``(B) any corporation chartered under section 25A 
                of the Federal Reserve Act; and
                    ``(C) any corporation having an agreement or 
                undertaking with the Board of Governors of the Federal 
                Reserve System under section 25 of the Federal Reserve 
                Act.''.
    (b) Report Reduction Goal; Reports.--
            (1) In general.--In implementing the amendment made by 
        subsection (a), the Secretary of the Treasury shall seek to 
        reduce, within a reasonable period of time, the number of 
        reports required to be filed in the aggregate by depository 
        institutions pursuant to section 5313(a) of title 31, United 
        States Code, by at least 30 percent of the number filed during 
        the year preceding the date of the enactment of this Act.
            (2) Interim report.--The Secretary of the Treasury shall 
        submit a report to the Congress not later than the end of the 
        180-day period beginning on the date of the enactment of this 
        Act on the progress made by the Secretary in implementing the 
        amendment made by subsection (a).
            (3) Annual report.--The Secretary of the Treasury shall 
        submit an annual report to the Congress after the end of each 
        of the first 5 calendar years which begin after the date of the 
        enactment of this Act on the extent to which the Secretary has 
        reduced the overall number of currency transaction reports 
        filed with the Secretary pursuant to section 5313(a) of title 
        31, United States Code, consistently with the purposes of such 
        section and effective law enforcement.
    (c) Streamlined Currency Transaction Reports.--The Secretary of the 
Treasury shall take such action as may be appropriate to redesign the 
format of reports required to be filed by any financial institution (as 
defined in section 5312(a)(2) of title 31, United States Code) under 
section 5313(a) of title 31, United States Code, to eliminate the need 
to report information which has little or no value for law enforcement 
purposes and reduce the time and effort required to prepare such report 
for filing by any such financial institution under such section.

SEC. 3. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS TRANSACTIONS.

    (a) In General.--Section 5318(g) of title 31, United States Code, 
is amended by adding at the end the following new paragraph:
            ``(4) Single designee for reporting suspicious 
        transactions.--
                    ``(A) In general.--In requiring reports under 
                paragraph (1) of suspicious transactions, the Secretary 
                of the Treasury shall designate, to the extent 
                practicable and appropriate, a single officer or agency 
                of the United States to whom such reports shall be 
                made.
                    ``(B) Duty of designee.--The officer or agency of 
                the United States designated by the Secretary of the 
                Treasury pursuant to subparagraph (A) shall refer any 
                report of a suspicious transaction to any appropriate 
                law enforcement or supervisory agency.
                    ``(C) Coordination with other reporting 
                requirements.--Subparagraph (A) shall not be construed 
                as precluding any supervisory agency for any financial 
                institution from requiring the financial institution to 
                submit any information or report to the agency or 
                another agency pursuant to any provision of law other 
                than this subsection.''.
    (b) Reports.--
            (1) Reports required.--The Secretary of the Treasury shall 
        submit an annual report to the Congress at the times required 
        under paragraph (2) on the number of suspicious transactions 
        reported to the officer or agency designated under section 
        5318(g)(4)(A) of title 31, United States Code, during the 
        period covered by the report and the disposition of such 
        reports.
            (2) Time for submitting reports.--The 1st report required 
        under paragraph (1) shall be filed before the end of the 1-year 
        period beginning on the date of the enactment of the Money 
        Laundering Suppression Act of 1994 and each subsequent report 
        shall be filed within 90 days after the end of each of the 5 
        calendar years which begin after such date of enactment.
    (c) Designation Required To Be Made Expeditiously.--The initial 
designation of an officer or agency of the United States pursuant to 
the amendment made by subsection (a) shall be made before the end of 
the 180-day period beginning on the date of the enactment of this Act.

SEC. 4. IMPROVEMENT OF IDENTIFICATION OF MONEY LAUNDERING SCHEMES.

    (a) Enhanced Training, Examinations, and Referrals by Banking 
Agencies.--Before the end of the 6-month period beginning on the date 
of the enactment of this Act, each appropriate Federal banking agency 
shall, in consultation with the Secretary of the Treasury and other 
appropriate law enforcement agencies--
            (1) review and enhance training and examination procedures 
        to improve the identification of money laundering schemes 
        involving depository institutions; and
            (2) review and enhance procedures for referring cases to 
        any appropriate law enforcement agency.
    (b) Improved Reporting of Criminal Schemes by Law Enforcement 
Agencies.--The Secretary of the Treasury and each appropriate law 
enforcement agency shall provide, on a regular basis, information 
regarding money laundering schemes and activities involving depository 
institutions to each appropriate Federal banking agency in order to 
enhance the agency's ability to examine for and identify money 
laundering activity.
    (c) Report to Congress.--The Financial Institutions Examination 
Council shall submit a report on the progress made in carrying out 
subsection (a) and the usefulness of information received pursuant to 
subsection (b) to the Congress by the end of the 1-year period 
beginning on the date of the enactment of this Act.
    (d) Definitions.--The terms ``appropriate Federal banking agency'' 
and ``Federal banking agencies'' have the same meanings as in section 3 
of the Federal Deposit Insurance Act.

SEC. 5. NEGOTIABLE INSTRUMENTS DRAWN ON FOREIGN BANKS SUBJECT TO 
              RECORDKEEPING AND REPORTING REQUIREMENTS.

    Section 5312(a)(3) of title 31, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) as the Secretary of the Treasury shall 
                provide by regulation for purposes of section 5316, 
                checks, drafts, notes, money orders, and other similar 
                instruments which are drawn on or by a foreign 
                financial institution and are not in bearer form.''.

SEC. 6. IMPOSITION OF CIVIL MONEY PENALTIES BY APPROPRIATE FEDERAL 
              BANKING AGENCIES.

    Section 5321 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) Delegation of Assessment Authority to Banking Agencies.--
            ``(1) In general.--The Secretary of the Treasury shall 
        delegate, in accordance with section 5318(a)(1) and subject to 
        such terms and conditions as the Secretary may impose in 
        accordance with paragraph (3), any authority of the Secretary 
        to assess a civil money penalty under this section on 
        depository institutions (as defined in section 3 of the Federal 
        Deposit Insurance Act) to the appropriate Federal banking 
        agencies (as defined in such section 3).
            ``(2) Authority of agencies.--Subject to any term or 
        condition imposed by the Secretary of the Treasury under 
        paragraph (3), the provisions of this section shall apply to an 
        appropriate Federal banking agency to which is delegated any 
        authority of the Secretary under this section in the same 
        manner such provisions apply to the Secretary.
            ``(3) Terms and conditions.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall prescribe by regulation the terms and conditions 
                which shall apply to any delegation under paragraph 
                (1).
                    ``(B) Maximum dollar amount.--The terms and 
                conditions authorized under subparagraph (A) may 
                include, in the Secretary's sole discretion, a 
                limitation on the amount of any civil penalty which may 
                be assessed by an appropriate Federal banking agency 
                pursuant to a delegation under paragraph (1).''.

SEC. 7. UNIFORM STATE LICENSING AND REGULATION OF CHECK CASHING, 
              CURRENCY EXCHANGE, AND MONEY TRANSMITTING BUSINESSES.

    (a) Uniform Laws and Enforcement.--For purposes of preventing money 
laundering and protecting the payment system from fraud and abuse, it 
is the sense of the Congress that the several States should--
            (1) establish uniform laws for licensing and regulating 
        businesses which--
                    (A) provide check cashing, currency exchange, or 
                money transmitting or remittance services, or issue or 
                redeem money orders, travelers' checks, and other 
                similar instruments; and
                    (B) are not depository institutions (as defined in 
                section 19(b)(1)(A) of the Federal Reserve Act); and
            (2) provide sufficient resources to the appropriate State 
        agency to enforce such laws and regulations prescribed pursuant 
        to such laws.
    (b) Model Statute.--It is the sense of the Congress that the 
several States should develop, through the auspices of the National 
Conference of Commissioners on Uniform State Laws, the American Law 
Institute, or such other forum as the States may determine to be 
appropriate, a model statute to carry out the goals described in 
subsection (a) which would include the following:
            (1) Licensing requirements.--A requirement that any 
        business described in subsection (a)(1) be licensed and 
        regulated by an appropriate State agency in order to engage in 
        any such activity within the State.
            (2) Licensing standards.--A requirement that--
                    (A) in order for any business described in 
                subsection (a)(1) to be licensed in the State, the 
                appropriate State agency shall review and approve--
                            (i) the business record, the fee structure, 
                        and the capital adequacy of the business 
                        seeking the license; and
                            (ii) the competence, experience, integrity, 
                        and financial ability of any individual who--
                                    (I) is a director, officer, or 
                                supervisory employee of such business; 
                                or
                                    (II) owns or controls such 
                                business; and
                    (B) any record, on the part of any business seeking 
                the license or any person referred to in subparagraph 
                (A)(ii), of--
                            (i) any criminal activity;
                            (ii) any fraud or other act of personal 
                        dishonesty;
                            (iii) any act, omission, or practice which 
                        constitutes a breach of a fiduciary duty; or
                            (iv) any suspension or removal, by any 
                        agency or department of the United States or 
                        any State, from participation in the conduct of 
                        any federally or State licensed or regulated 
                        business,
                may be grounds for the denial of any such license by 
                the appropriate State agency.
            (3) Procedures to ensure compliance with federal cash 
        transaction reporting requirements.--A civil or criminal 
        penalty for operating any business referred to in paragraph (1) 
        without establishing and complying with appropriate procedures 
        to ensure compliance with subchapter II of chapter 53 of title 
        31, United States Code (relating to records and reports on 
        monetary instruments transactions).
            (4) Criminal penalties for operation of business without a 
        license.--A criminal penalty for operating any business 
        referred to in paragraph (1) without a license within the State 
        after the end of an appropriate transition period beginning on 
        the date of the enactment of such model statute by the State.
    (c) Study Required.--The Secretary of the Treasury shall conduct a 
study of--
            (1) the progress made by the several States in developing 
        and enacting a model statute which--
                    (A) meets the requirements of subsection (b); and
                    (B) furthers the goals of--
                            (i) preventing money laundering by 
                        businesses which are required to be licensed 
                        under any such statute; and
                            (ii) protecting the payment system, 
                        including the receipt, payment, collection, and 
                        clearing of checks, from fraud and abuse by 
                        such businesses; and
            (2) the adequacy of--
                    (A) the activity of the several States in enforcing 
                the requirements of such statute; and
                    (B) the resources made available to the appropriate 
                State agencies for such enforcement activity.
    (d) Report Required.--Before the end of the 3-year period beginning 
on the date of the enactment of this Act and by the end of each of the 
first 2 1-year periods beginning after the end of such 3-year period, 
the Secretary of the Treasury shall submit a report to the Congress 
containing the findings and recommendations of the Secretary in 
connection with the study under subsection (c), together with such 
recommendations for legislative and administrative action as the 
Secretary may determine to be appropriate.
    (e) Recommendations in Cases of Inadequate Regulation and 
Enforcement by States.--If the Secretary of the Treasury determines 
that any State has been unable to--
            (1) enact a statute which meets the requirements described 
        in subsection (b);
            (2) undertake adequate activity to enforce such statute; or
            (3) make adequate resources available to the appropriate 
        State agency for such enforcement activity,
the report submitted pursuant to subsection (d) shall contain 
recommendations of the Secretary which are designed to facilitate the 
enactment and enforcement by the State of such a statute.
    (f) Federal Funding Study.--
            (1) Study required.--The Secretary of the Treasury shall 
        conduct a study to identify possible available sources of 
        Federal funding to cover costs which will be incurred by the 
        States in carrying out the purposes of this section.
            (2) Report.--The Secretary of the Treasury shall submit a 
        report to the Congress on the study conducted pursuant to 
        paragraph (1) before the end of the 18-month period beginning 
        on the date of the enactment of this Act.

SEC. 8. REGISTRATION OF MONEY TRANSMITTING BUSINESSES TO PROMOTE 
              EFFECTIVE LAW ENFORCEMENT.

    (a) Findings and Purposes.--
            (1) Findings.--The Congress hereby finds the following:
                    (A) Money transmitting businesses are subject to 
                the recordkeeping and reporting requirements of 
                subchapter II of chapter 53 of title 31, United States 
                Code.
                    (B) Money transmitting businesses are largely 
                unregulated businesses and are frequently used in 
                sophisticated schemes to--
                            (i) transfer large amounts of money which 
                        are the proceeds of unlawful enterprises; and
                            (ii) evade the requirements of such 
                        subchapter II, the Internal Revenue Code of 
                        1986, and other laws of the United States.
                    (C) Information on the identity of money 
                transmitting businesses and the names of the persons 
                who own or control, or are officers or employees of, a 
                money transmitting business would have a high degree of 
                usefulness in criminal, tax, or regulatory 
                investigations and proceedings.
            (2) Purpose.--It is the purpose of this section to 
        establish a registration requirement for businesses engaged in 
        providing check cashing, currency exchange, or money 
        transmitting or remittance services, or issuing or redeeming 
        money orders, travelers' checks, and other similar instruments 
        to assist the Secretary of the Treasury, the Attorney General, 
        and other supervisory and law enforcement agencies to 
        effectively enforce the criminal, tax, and regulatory laws and 
        prevent such money transmitting businesses from engaging in 
        illegal activities.
    (b) In General.--Subchapter II of chapter 53 of title 31, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5329. Registration of money transmitting businesses
    ``(a) Registration With Secretary of the Treasury Required.--
            ``(1) In general.--Any person who owns or controls a money 
        transmitting business which is not a depository institution (as 
        defined in section 19(b)(1)(A) of the Federal Reserve Act) 
        shall register the business (whether or not the business is 
        licensed as a money transmitting business in any State) with 
        the Secretary of the Treasury before the end of the 180-day 
        period beginning on the later of--
                    ``(A) the date of the enactment of the Money 
                Laundering Suppression Act of 1994; or
                    ``(B) the date the business is established.
            ``(2) Form and manner of registration.--Subject to the 
        requirements of subsection (b), the Secretary of the Treasury 
        shall prescribe, by regulation, the form and manner for 
        registering a money transmitting business pursuant to paragraph 
        (1).
            ``(3) Businesses remain subject to state law.--This section 
        shall not be construed as superseding any requirement of State 
        law relating to money transmitting businesses operating in such 
        State.
            ``(4) False and incomplete information.--The filing of 
        false or materially incomplete information in connection with 
        the registration of a money transmitting business shall be 
        considered as a failure to comply with the requirements of this 
        subchapter.
    ``(b) Contents of Registration.--The registration of a money 
transmitting business under subsection (a) shall include the following 
information:
            ``(1) The name and location of the business.
            ``(2) The name and address of each person who--
                    ``(A) owns or controls the business;
                    ``(B) is an director or officer of the business; or
                    ``(C) otherwise participates in the conduct of the 
                affairs of the business.
            ``(3) The name and address of any depository institution at 
        which the business maintains a transaction account (as defined 
        in section 19(b)(1)(C) of the Federal Reserve Act).
            ``(4) An estimate of the volume of business in the coming 
        year (which shall be reported annually to the Secretary).
            ``(5) Such other information as the Secretary of the 
        Treasury may require.
    ``(c) Agents of Money Transmitting Businesses.--
            ``(1) Maintenance of lists of agents of money transmitting 
        businesses.--Pursuant to regulations which the Secretary of the 
        Treasury shall prescribe, each money transmitting business 
        shall--
                    ``(A) maintain a list containing the names and 
                addresses of all persons authorized to act as an agent 
                for such business in connection with activities 
                described in subsection (d)(1)(A) and such other 
                information about such agents as the Secretary may 
                require; and
                    ``(B) make the list and other information available 
                on request to any appropriate law enforcement agency.
            ``(2) Treatment of agent as money transmitting business.--
        The Secretary of the Treasury shall prescribe regulations 
        establishing, on the basis of such criteria as the Secretary 
        determines to be appropriate, a threshold point for treating an 
        agent of a money transmitting business as a money transmitting 
        business for purposes of this section.
    ``(d) Definitions.--For purposes of this section:
            ``(1) Money transmitting business.--The term `money 
        transmitting business' means any business other than the United 
        States Postal Service which--
                    ``(A) provides check cashing, currency exchange, or 
                money transmitting or remittance services, or issues or 
                redeems money orders, travelers' checks, and other 
                similar instruments;
                    ``(B) is required to file reports under section 
                5313; and
                    ``(C) is not a depository institution (as defined 
                in section 19(b)(1)(A) of the Federal Reserve Act).
            ``(2) Money transmitting service.--The term `money 
        transmitting service' includes accepting currency or funds 
        denominated in the currency of any country and transmitting the 
        currency or funds, or the value of the currency or funds, by 
        any means through a financial agency or institution, a Federal 
        reserve bank or other facility of the Board of Governors of the 
        Federal Reserve System, or an electronic funds transfer 
        network.
    ``(e) Civil Penalty for Failure To Comply With Registration 
Requirements.--
            ``(1) In general.--Any person who fails to comply with the 
        money transmitting business registration requirements under 
        subsection (a) or regulations prescribed under such subsection 
        shall be liable to the United States for a civil penalty of 
        $5,000 for each such violation.
            ``(2) Continuing violation.--Each day a violation described 
        in paragraph (1) continues shall constitute a separate 
        violation for purposes of such paragraph.
            ``(3) Assessments.--Any penalty imposed under this 
        subsection shall be assessed and collected by the Secretary of 
        the Treasury in the manner provided in section 5321 and any 
        such assessment shall be subject to the provisions of such 
        section.''.
    (c) Criminal Penalty for Failure To Comply With Registration 
Requirements.--Section 1960(b)(1) of title 18, United States Code, is 
amended to read as follows:
            ``(1) the term `illegal money transmitting business' means 
        a money transmitting business which affects interstate or 
        foreign commerce in any manner or degree and--
                    ``(A) is intentionally operated without an 
                appropriate money transmitting license in a State where 
                such operation is punishable as a misdemeanor or a 
                felony under State law; or
                    ``(B) fails to comply with the money transmitting 
                business registration requirements under section 5329 
                of title 31, United States Code, or regulations 
                prescribed under such section;''.
    (d) Civil Forfeiture.--Section 981(a)(1)(A) of title 18, United 
States Code, is amended by striking ``or of section 1956 or 1957 of 
this title,'' and inserting ``, or of section 1956, 1957, or 1960 of 
this title,''.
    (e) Clerical Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 5328 the following new item:

``5329. Registration of money transmitting businesses.''.

SEC. 9. UNIFORM FEDERAL REGULATION OF CASINOS.

    Amendment to Definition of Financial Institution To Specifically 
Include Certain Casinos.--Section 5312(a)(2) of title 31, United States 
Code, is amended--
            (1) by redesignating subparagraphs (X) and (Y) as 
        subparagraphs (Y) and (Z), respectively; and
            (2) by inserting after subparagraph (W) the following new 
        subparagraph:
                    ``(X) a casino, gambling casino, or gaming 
                establishment with an annual gaming revenue of more 
                than $1,000,000 which--
                            ``(i) is licensed as a casino or gambling 
                        casino under the laws of any State or any 
                        political subdivision of any State; or
                            ``(ii) is an Indian gaming operation 
                        conducted under or pursuant to the Indian 
                        Gaming Regulatory Act other than an operation 
                        which is limited to class I gaming (as defined 
                        in section 4(6) of such Act);''.

SEC. 10. UNIFORM FEDERAL ADMINISTRATION OF RECORDKEEPING AND REPORTING 
              REQUIREMENTS.

    (a) In General.--Section 5318 of title 31, United States Code, is 
amended by adding at the end the following new subsection:
    ``(i) Uniform Administration of Subchapter.--
            ``(1) No exemptions.--No exemption from any recordkeeping 
        or reporting requirement of this subchapter, including 
        paragraph (1), or of any regulation prescribed pursuant to this 
        subchapter may be granted to--
                    ``(A) any State or any political subdivision of a 
                State on behalf of any financial institution which but, 
                for such exemption, would be required to maintain 
                records or file reports under this subchapter or 
                regulations prescribed by the Secretary of the Treasury 
                pursuant to this subchapter; or
                    ``(B) any financial institution on the basis that 
                any State, any political subdivision of any State, or 
                any officer, agency, or other authority of any such 
                State or political subdivision regulates or examines 
                such institution.
            ``(2) Reports required to be filed with federal agency.--
        Any report required under this subchapter or regulations 
        prescribed by the Secretary of the Treasury pursuant to this 
        subchapter shall be filed by the person required to make the 
        report with the Secretary of the Treasury or an officer or 
        agency of the United States designated by the Secretary to 
        receive such report.''.
    (b) Technical and Conforming Amendments.--Section 5318(a) of title 
31, United States Code, is amended--
            (1) in paragraph (1), by inserting ``or (i)'' after 
        ``subsection (b)(2)''; and
            (2) in paragraph (5), by inserting ``except as provided in 
        subsection (i),'' before ``prescribe an appropriate 
        exemption''.
    (c) Revocation of Prior Exemption.--Any exemption granted under 
subchapter II of chapter 53 of title 31, United States Code, by the 
Secretary of the Treasury before the date of the enactment of the Money 
Laundering Suppression Act of 1994 to any State or local government on 
behalf of any financial institution (as defined in such subchapter) is 
hereby revoked as of the end of the 30-day period beginning on the date 
of the enactment of this Act.

SEC. 11. CRIMINAL AND CIVIL PENALTY FOR STRUCTURING DOMESTIC AND 
              INTERNATIONAL TRANSACTIONS.

    (a) Criminal Penalty.--Section 5324 of title 31, United States 
Code, is amended by adding at the end the following new subsection:
    ``(c) Criminal Penalty.--
            ``(1) In general.--Whoever violates this section shall be 
        fined in accordance with title 18, United States Code, 
        imprisoned for not more than 5 years, or both.
            ``(2) Enhanced penalty for aggravated cases.--Whoever 
        violates this section while violating another law of the United 
        States or as part of a pattern of any illegal activity 
        involving more than $100,000 in a 12-month period shall be 
        fined twice the amount provided in subsection (b)(3) or (c)(3) 
        (as the case may be) of section 3571 of title 18, United States 
        Code, imprisoned for not more than 10 years, or both.''.
    (b) Amendment Relating to Civil Penalty.--Section 5321(a)(4)(A) of 
title 31, United States Code, is amended by striking ``willfully''.
    (c) Technical and Conforming Amendment.--Subsections (a) and (b) of 
section 5322 of title 31, United States Code, are amended by inserting 
``or 5324'' after ``section 5315'' each place such term appears.

SEC. 12. GAO STUDY OF CASHIERS' CHECKS.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study to--
            (1) determine the extent to which the practice of issuing 
        of cashiers' checks by financial institutions is vulnerable to 
        money laundering schemes;
            (2) determine the extent to which additional recordkeeping 
        requirements should be imposed on financial institutions which 
        issue cashiers' checks; and
            (3) analyze such other factors relating to the use and 
        regulation of cashiers' checks as the Comptroller General 
        determines to be appropriate.
    (b) Report Required.--Before the end of the 6-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Congress containing--
            (1) the findings and conclusions of the Comptroller General 
        in connection with the study conducted pursuant to subsection 
        (a); and
            (2) such recommendations for legislative and administrative 
        action as the Comptroller General may determine to be 
        appropriate.

SEC. 13. TECHNICAL CORRECTIONS.

    (a) Title 31, U.S.C., Amendments.--
            (1) Section 5321(a)(5)(A) of title 31, United States Code, 
        is amended by inserting ``any violation of'' after ``causing''.
            (2) Section 5324(a) of title 31, United States Code, is 
        amended--
                    (A) by striking ``section 5313(a), section 5325, or 
                the regulations issued thereunder or section 5325 or 
                regulations prescribed under such section 5325'' each 
                place such term appears and inserting ``section 5313(a) 
                or 5325 or any regulation prescribed under any such 
                section''; and
                    (B) by striking ``with respect to such 
                transaction''.
    (b) Amendment Relating to Title 31, U.S.C.--
            (1) Effective as of the date of the enactment of the 
        Annunzio-Wylie Anti-Money Laundering Act, section 1517(b) of 
        such Act is amended by striking ``5314'' and inserting 
        ``5318''.
            (2) Section 5239 of the Revised Statutes of the United 
        States is amended by redesignating the 2d subsection (c) (as 
        added by section 1502(a) of the Annunzio-Wylie Anti-Money 
        Laundering Act) as subsection (d).
HR 3235 RH----2
HR 3235 RH----3