[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2011 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2011

 To strengthen the Federal prosecution and seizure of illegal proceeds 
of international drug dealing and criminal activity, and to provide for 
  the drug testing and treatment of incarcerated offenders and reduce 
  drug trafficking in correctional facilities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 30, 1998

Mr. Leahy (for himself, Mr. Daschle, Mr. Kohl, Mrs. Feinstein, and Mr. 
   Cleland) introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To strengthen the Federal prosecution and seizure of illegal proceeds 
of international drug dealing and criminal activity, and to provide for 
  the drug testing and treatment of incarcerated offenders and reduce 
  drug trafficking in correctional facilities, 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 
Enforcement and Combatting Drugs in Prisons Act of 1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--INTERNATIONAL MONEY LAUNDERING

Sec. 101. Short title.
Sec. 102. Illegal money transmitting businesses.
Sec. 103. Restraint of assets of persons arrested abroad.
Sec. 104. Access to records in bank secrecy jurisdictions.
Sec. 105. Civil money laundering jurisdiction over foreign persons.
Sec. 106. Laundering money through a foreign bank.
Sec. 107. Specified unlawful activity for money laundering.
Sec. 108. Criminal forfeiture for money laundering conspiracies.
Sec. 109. Fungible property in foreign bank accounts.
Sec. 110. Subpoenas for bank records.
Sec. 111. Fugitive disentitlement.
Sec. 112. Admissibility of foreign business records.
Sec. 113. Charging money laundering as a course of conduct.
Sec. 114. Venue in money laundering cases.
Sec. 115. Technical amendment to restore wiretap authority for certain 
                            money laundering offenses.
  TITLE II--DRUG TESTING AND INTERVENTION FOR INMATES AND PROBATIONERS

Sec. 201. Short title.
Sec. 202. Additional requirements for the use of funds under the 
                            violent offender incarceration and truth-
                            in-sentencing incentive grant programs.
Sec. 203. Use of residential substance abuse treatment grants to 
                            provide for services during and after 
                            incarceration.

                TITLE I--INTERNATIONAL MONEY LAUNDERING

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Money Laundering Enforcement Act 
of 1998''.

SEC. 102. ILLEGAL MONEY TRANSMITTING BUSINESSES.

    (a) Civil Forfeiture for Money Transmitting Violation.--Section 
981(a)(1)(A) of title 18, United States Code, is amended by striking 
``or 1957'' and inserting ``, 1957, or 1960''.
    (b) Scienter Requirement for Section 1960 Violation.--Section 1960 
of title 18, United States Code, is amended by adding at the end the 
following:
    ``(c) Scienter Requirement.--For the purposes of proving a 
violation of this section involving an illegal money transmitting 
business--
            ``(1) it shall be sufficient for the Government to prove 
        that the defendant knew that the money transmitting business 
        lacked a license required by State law; and
            ``(2) it shall not be necessary to show that the defendant 
        knew that the operation of such a business without the required 
        license was an offense punishable as a felony or misdemeanor 
        under State law.''.

SEC. 103. RESTRAINT OF ASSETS OF PERSONS ARRESTED ABROAD.

    Section 981(b) of title 18, United States Code, is amended by 
adding at the end the following:
    ``(3) Restraint of assets.--
            ``(A) In general.--If any person is arrested or charged in 
        a foreign country in connection with an offense that would give 
        rise to the forfeiture of property in the United States under 
        this section or under the Controlled Substances Act, the 
        Attorney General may apply to any Federal judge or magistrate 
        judge in the district in which the property is located for an 
        ex parte order restraining the property subject to forfeiture 
        for not more than 30 days, except that the time may be extended 
        for good cause shown at a hearing conducted in the manner 
        provided in Rule 43(e) of the Federal Rules of Civil Procedure.
            ``(B) Application.--An application for a restraining order 
        under subparagraph (A) shall--
                    ``(i) set forth the nature and circumstances of the 
                foreign charges and the basis for belief that the 
                person arrested or charged has property in the United 
                States that would be subject to forfeiture; and
                    ``(ii) contain a statement that the restraining 
                order is needed to preserve the availability of 
                property for such time as is necessary to receive 
                evidence from the foreign country or elsewhere in 
                support of probable cause for the seizure of the 
                property under this subsection.''.

SEC. 104. ACCESS TO RECORDS IN BANK SECRECY JURISDICTIONS.

    Section 986 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(d) Access to Records Located Abroad.--
            ``(1) In general.--In any civil forfeiture case, or in any 
        ancillary proceeding in any criminal forfeiture case governed 
        by section 413(n) of the Controlled Substances Act (21 U.S.C. 
        853(n)), the refusal of the claimant to provide financial 
        records located in a foreign country in response to a discovery 
        request or take the action necessary otherwise to make the 
        records available, shall result in the dismissal of the claim 
        with prejudice, if--
                    ``(A) the financial records may be material--
                            ``(i) to any claim or to the ability of the 
                        government to respond to such claim; or
                            ``(ii) in a civil forfeiture case, to the 
                        ability of the government to establish the 
                        forfeitability of the property; and
                    ``(B) it is within the capacity of the claimant to 
                waive his or her rights under such secrecy laws, or to 
                obtain the financial records himself or herself, so 
                that the financial records may be made available.
            ``(2) Privilege.--Nothing in this subsection shall be 
        construed to affect the rights of a claimant to refuse 
        production of any records on the basis of any privilege 
        guaranteed by the Constitution of the United States or any 
        other provision of Federal law.''.

SEC. 105. CIVIL MONEY LAUNDERING JURISDICTION OVER FOREIGN PERSONS.

    Section 1956(b) of title 18, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting each 
        subparagraph appropriately;
            (2) by striking ``(b) Whoever'' and inserting the 
        following:
    ``(b) Civil Penalties.--
            ``(1) In general.--Whoever''; and
            (3) by adding at the end the following:
            ``(2) Jurisdiction.--For purposes of adjudicating an action 
        filed or enforcing a penalty ordered under this section, the 
        district courts of the United States shall have jurisdiction 
        over any foreign person, including any financial institution 
        authorized under the laws of a foreign country, that commits an 
        offense under subsection (a) involving a financial transaction 
        that occurs in whole or in part in the United States, if 
        service of process upon such foreign person is made in 
        accordance with the Federal Rules of Civil Procedure or the 
        laws of the foreign country in which the foreign person is 
        found.
            ``(3) Satisfaction of judgment.--In any action described in 
        paragraph (2), the court may issue a pretrial restraining order 
        or take any other action necessary to ensure that any bank 
        account or other property held by the defendant in the United 
        States is available to satisfy a judgment under this 
        section.''.

SEC. 106. LAUNDERING MONEY THROUGH A FOREIGN BANK.

    Section 1956(c)(6) of title 18, United States Code, is amended to 
read as follows:
            ``(6) the term `financial institution' includes--
                    ``(A) any financial institution described in 
                section 5312(a)(2) of title 31, or the regulations 
                promulgated thereunder; and
                    ``(B) any foreign bank, as defined in section 
                1(b)(7) of the International Banking Act of 1978 (12 
                U.S.C. 3101(7));''.

SEC. 107. SPECIFIED UNLAWFUL ACTIVITY FOR MONEY LAUNDERING.

    (a) In General.--Section 1956(c)(7) of title 18, United States 
Code, is amended--
            (1) in subparagraph (B)--
                    (A) by striking clause (ii) and inserting the 
                following:
                            ``(ii) any act or acts constituting a crime 
                        of violence;''; and
                    (B) by adding at the end the following:
                            ``(iv) fraud, or any scheme to defraud, 
                        committed against a foreign government or 
                        foreign governmental entity;
                            ``(v) bribery of a public official, or the 
                        misappropriation, theft, or embezzlement of 
                        public funds by or for the benefit of a public 
                        official;
                            ``(vi) smuggling or export control 
                        violations involving munitions listed in the 
                        United States Munitions List or technologies 
                        with military applications as defined in the 
                        Commerce Control List of the Export 
                        Administration Regulations; or
                            ``(vii) 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 with 
                        the territory of the United States;'';
            (2) in subparagraph (D)--
                    (A) by inserting ``section 541 (relating to goods 
                falsely classified),'' before ``section 542'';
                    (B) by inserting ``section 922(l) (relating to the 
                unlawful importation of firearms), section 924(m) 
                (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 (22 U.S.C. 611 
                et seq.),'' before ``or any felony violation of the 
                Foreign Corrupt Practices Act''; and
            (3) in subparagraph (E), by inserting ``the Clean Air Act 
        (42 U.S.C. 6901 et seq.),'' after ``the Safe Drinking Water Act 
        (42 U.S.C. 300f et seq.),''.

SEC. 108. CRIMINAL FORFEITURE FOR MONEY LAUNDERING CONSPIRACIES.

    Section 982(a)(1) of title 18, United States Code, is amended by 
inserting ``or a conspiracy to commit any such offense,'' after ``of 
this title,''.

SEC. 109. FUNGIBLE PROPERTY IN FOREIGN BANK ACCOUNTS.

    Section 984(d) of title 18, United States Code, is amended by 
adding at the end the following:
    ``(3) In this subsection, the term `financial institution' includes 
a foreign bank, as defined in section 1(b)(7) of the International 
Banking Act of 1978 (12 U.S.C. 3101(7)).''.

SEC. 110. SUBPOENAS FOR BANK RECORDS.

    Section 986(a) of title 18, United States Code, is amended--
            (1) by striking ``section 1956, 1957, or 1960 of this 
        title, section 5322 or 5324 of title 31, United States Code'' 
        and inserting ``section 981 of this title'';
            (2) by inserting ``before or'' before ``after''; and
            (3) by striking the last sentence.

SEC. 111. FUGITIVE DISENTITLEMENT.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 2467. Fugitive disentitlement
    ``Any person who, in order to avoid criminal prosecution, purposely 
leaves the jurisdiction of the United States, declines to enter or 
reenter the United States to submit to the jurisdiction of the United 
States, or otherwise evades the jurisdiction of a court of the United 
States in which a criminal case is pending against the person, may not 
use the resources of the courts of the United States in furtherance of 
a claim in any related civil forfeiture action or a claim in any third-
party proceeding in any related criminal forfeiture action.''.
    (b) Conforming Amendment.--The analysis for chapter 163 of title 
28, United States Code, is amended by adding at the end the following:

``2467. Fugitive disentitlement.''.

SEC. 112. ADMISSIBILITY OF FOREIGN BUSINESS RECORDS.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 2468. Foreign records
    ``(a) Definitions.--In this section--
            ``(1) the term `business' includes business, institution, 
        association, profession, occupation, and calling of every kind 
        whether or not conducted for profit;
            ``(2) the term `foreign certification' means a written 
        declaration made and signed in a foreign country by the 
        custodian of a record of regularly conducted activity or 
        another qualified person, that if falsely made, would subject 
        the maker to criminal penalty under the law of that country;
            ``(3) the term `foreign record of regularly conducted 
        activity' means a memorandum, report, record, or data 
        compilation, in any form, of acts, events, conditions, 
        opinions, or diagnoses, maintained in a foreign country; and
            ``(4) the term `official request' means a letter rogatory, 
        a request under an agreement, treaty or convention, or any 
        other request for information or evidence made by a court of 
        the United States or an authority of the United States having 
        law enforcement responsibility, to a court or other authority 
        of a foreign country.
    ``(b) Admissibility.--In a civil proceeding in a court of the 
United States, including a civil forfeiture proceeding and a proceeding 
in the United States Claims Court and the United States Tax Court, 
unless the source of information or the method or circumstances of 
preparation indicate lack of trustworthiness, a foreign record of 
regularly conducted activity (or a duplicate of such record), obtained 
pursuant to an official request, shall not be excluded as evidence by 
the hearsay rule if a foreign certification, also obtained pursuant to 
the same official request or subsequent official request that 
adequately identifies such foreign record, attests that--
            ``(1) the foreign record was made, at or near the time of 
        the occurrence of the matters set forth, by (or from 
        information transmitted by) a person with knowledge of those 
        matters;
            ``(2) the foreign record was kept in the course of a 
        regularly conducted business activity;
            ``(3) the business activity made such a record as a regular 
        practice; and
            ``(4) if the foreign record is not the original, the record 
        is a duplicate of the original.
    ``(c) Foreign Certification.--A foreign certification under this 
section shall authenticate a record or duplicate described in 
subsection (b).
    ``(d) Notice.--
            ``(1) In general.--As soon as practicable after a 
        responsive pleading has been filed, a party intending to offer 
        in evidence under this section a foreign record of regularly 
        conducted activity shall provide written notice of that 
        intention to each other party.
            ``(2) Opposition.--A motion opposing admission in evidence 
        of a record under paragraph (1) shall be made by the opposing 
        party and determined by the court before trial. Failure by a 
        party to file such motion before trial shall constitute a 
        waiver of objection to such record, except that the court for 
        cause shown may grant relief from the waiver.''.
    (b) Conforming Amendment.--The analysis for chapter 163 of title 
28, United States Code, is amended by adding at the end the following:

``2468. Foreign records.''.

SEC. 113. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.

    Section 1956(h) of title 18, United States Code, is amended--
            (1) by striking ``(h) Any person'' and inserting the 
        following:
    ``(h) Conspiracy; Multiple Violations.--
            ``(1) Conspiracy.--Any person''; and
            (2) by adding at the end the following:
            ``(2) Multiple violations.--Any person who commits multiple 
        violations of this section or section 1957 that are part of the 
        same scheme or continuing course of conduct may be charged, at 
        the election of the Government, in a single count in an 
        indictment or information.''.

SEC. 114. VENUE IN MONEY LAUNDERING CASES.

    Section 1956 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(i) Venue.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        prosecution for an offense under this section or section 1957 
        may be brought in any district in which the financial or 
        monetary transaction is conducted, or in which a prosecution 
        for the underlying specified unlawful activity could be 
        brought.
            ``(2) Exception.--A prosecution for an attempt or 
        conspiracy offense under this section or section 1957 may be 
        brought in the district in which venue would lie for the 
        completed offense under paragraph (1), or in any other district 
        in which an act in furtherance of the attempt or conspiracy 
        took place.''.

SEC. 115. TECHNICAL AMENDMENT TO RESTORE WIRETAP AUTHORITY FOR CERTAIN 
              MONEY LAUNDERING OFFENSES.

    Section 2516(1)(g) of title 18, United States Code, is amended by 
striking ``of title 31, United States Code (dealing with the reporting 
of currency transactions)'' and inserting ``or 5324 of title 31 
(dealing with the reporting and illegal structuring of currency 
transactions)''.

  TITLE II--DRUG TESTING AND INTERVENTION FOR INMATES AND PROBATIONERS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Combatting Drugs in Prisons Act of 
1998''.

SEC. 202. ADDITIONAL REQUIREMENTS FOR THE USE OF FUNDS UNDER THE 
              VIOLENT OFFENDER INCARCERATION AND TRUTH-IN-SENTENCING 
              INCENTIVE GRANT PROGRAMS.

    Section 20105(b) of the Violent Crime Control and Law Enforcement 
Act of 1994 (42 U.S.C. 13705(b)) is amended--
            (1) by striking ``(b) To be eligible'' and inserting the 
        following:
    ``(b) Additional Requirements.--
            ``(1) Eligibility for a grant.--To be eligible'';
            (2) by striking ``a State shall provide assurances'' and 
        inserting the following: ``a State shall--
                    ``(A) provide assurances'';
            (3) by striking the period at the end and inserting ``; 
        and''; and
            (4) by adding at the end the following:
                    ``(B) not later than September 1, 1998, have 
                established and implemented, consistent with guidelines 
                issued by the Attorney General, a program of drug 
                testing and intervention for appropriate categories of 
                convicted offenders during periods of incarceration and 
                criminal justice supervision, with sanctions (including 
                denial or revocation of release) for positive drug 
                tests.
            ``(2) Use of funds.--Notwithstanding section 20102, amounts 
        received by a State pursuant to section 20103 or section 20104 
        may be--
                    ``(A) applied to the cost of offender drug testing 
                and appropriate intervention programs during periods of 
                incarceration and criminal justice supervision, 
                consistent with guidelines issued by the Attorney 
                General;
                    ``(B) used by a State to pay the costs of providing 
                to the Attorney General a baseline study, which shall 
                be consistent with guidelines issued by the Attorney 
                General, on the prison drug abuse problem in the State; 
                and
                    ``(C) used by a State to develop policies, 
                practices, or laws establishing, in accordance with 
                guidelines issued by the Attorney General, a system of 
                sanctions and penalties to address drug trafficking 
                within and into correctional facilities under the 
                jurisdiction of the State.''.

SEC. 203. USE OF RESIDENTIAL SUBSTANCE ABUSE TREATMENT GRANTS TO 
              PROVIDE FOR SERVICES DURING AND AFTER INCARCERATION.

    Section 1901 of part S of the Omnibus Crime Control and Safe 
Streets Act of 1968 (42 U.S.C. 3796ff) is amended by adding at the end 
the following:
    ``(c) Additional Use of Funds.--Each State that demonstrates that 
the State has established 1 or more residential substance abuse 
treatment programs that meet the requirements of this part may use 
amounts made available under this part for drug treatment and to impose 
appropriate sanctions for positive drug tests, both during 
incarceration and after release.''.
                                 <all>