[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).
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