[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2978 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2978
To strengthen existing Federal laws and provide law enforcement
agencies with enhanced enforcement tools necessary to combat money
laundering, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 2, 2001
Mrs. Roukema introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committees on
the Judiciary, and International Relations, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To strengthen existing Federal laws and provide law enforcement
agencies with enhanced enforcement tools necessary to combat money
laundering, 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
Prevention Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--INTERNATIONAL COUNTER-MONEY LAUNDERING MEASURES
Sec. 101. Special measures for jurisdictions, financial institutions,
or international transactions of primary
money laundering concern.
TITLE II--CURRENCY TRANSACTION REPORTING AMENDMENTS AND RELATED
IMPROVEMENTS
Sec. 201. Amendments relating to reporting of suspicious activities.
Sec. 202. Penalties for violations of geographic targeting orders and
certain recordkeeping requirements, and
lengthening effective period of geographic
targeting orders.
Sec. 203. Authorization to include suspicions of illegal activity in
written employment references.
Sec. 204. Bank Secrecy Act advisory group.
Sec. 205. Agency reports on reconciling penalty amounts.
Sec. 206. Bulk cash smuggling into or out of the United States.
Sec. 207. Forfeiture in currency reporting cases.
Sec. 208. Interstate currency couriers.
Sec. 209. Anti-money laundering measures for United States bank
accounts involving foreign persons.
TITLE III--ENHANCED LAW ENFORCEMENT
Sec. 301. Long-arm jurisdiction over foreign money launderers.
Sec. 302. Laundering money through a foreign bank.
Sec. 303. Specified unlawful activity for money laundering.
Sec. 304. Subpoenas for bank records.
Sec. 305. Charging money laundering as a course of conduct.
Sec. 306. Fungible property in bank accounts.
Sec. 307. Prohibition on false statements to financial institutions
concerning the identity of a customer.
Sec. 308. Forfeiture of funds in United States interbank accounts.
TITLE IV--ANTICORRUPTION MEASURES
Sec. 401. Corruption of foreign governments and ruling elites.
Sec. 402. Support for the financial action task force on money
laundering.
TITLE I--INTERNATIONAL COUNTER-MONEY LAUNDERING MEASURES
SEC. 101. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL INSTITUTIONS,
OR INTERNATIONAL TRANSACTIONS OF PRIMARY MONEY LAUNDERING
CONCERN.
(a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, is amended by inserting after section 5318 the following
new section:
``Sec. 5318A. Special measures for jurisdictions, financial
institutions, or international transactions of primary
money laundering concern
``(a) International Counter-Money Laundering Requirements.--
``(1) In general.--The Secretary may require domestic
financial institutions and domestic financial agencies to take
1 or more of the special measures described in subsection (b)
if the Secretary finds that reasonable grounds exist for
concluding that a jurisdiction outside the United States, 1 or
more financial institutions operating outside the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside the United States is of
primary money laundering concern, in accordance with subsection
(c).
``(2) Form of requirement.--The special measures described
in subsection (b) may be imposed by regulation, order, or
otherwise as permitted by law, and in such sequence or
combination, as the Secretary shall determine.
``(3) Process for selecting special measures.--
``(A) Consultation.--In selecting which special
measure or measures to take under this subsection, the
Secretary shall consult with the Chairman of the Board
of Governors of the Federal Reserve System and, in the
Secretary's sole discretion, such other agencies and
interested parties as the Secretary may find to be
appropriate.
``(B) Factors.--The Secretary also shall consider--
``(i) whether similar action has been or is
being taken by other nations or multilateral
groups;
``(ii) whether the imposition of any
particular special measure would create a
significant competitive disadvantage, including
any undue cost or burden associated with
compliance, for financial institutions
organized or licensed in the United States; and
``(iii) the extent to which the action
would have a significant adverse systemic
impact on the international payment, clearance
and settlement system, or on legitimate
business activities involving the particular
jurisdiction, institution, or class of
transactions.
``(4) No limitation on other authority.--This section shall
not be construed as superseding or otherwise restricting any
other authority granted to the Secretary, or to any other
agency, by this subchapter or otherwise.
``(b) Special Measures.--The special measures referred to in
subsection (a), with respect to a jurisdiction outside the United
States, financial institution operating outside the United States, or
class of transaction within, or involving, a jurisdiction outside the
United States, are as follows:
``(1) Recordkeeping and reporting of certain financial
transactions.--
``(A) In general.--The Secretary may require any
domestic financial institution or domestic financial
agency to maintain records, file reports, or both,
concerning the aggregate amount of transactions, or
concerning each transaction, with respect to a
jurisdiction outside the United States, 1 or more
financial institutions operating outside the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside the United States, if
the Secretary finds any such jurisdiction, institution,
or class of transactions to be of primary money
laundering concern.
``(B) Form of records and reports.--Such records
and reports shall be made and retained at such time, in
such manner, and for such period of time, as the
Secretary shall determine, and shall include such
information as the Secretary may determine, including--
``(i) the identity and address of the
participants in a transaction or relationship,
including the identity of the originator of any
funds transfer;
``(ii) the legal capacity in which a
participant in any transaction is acting;
``(iii) information concerning the
beneficial ownership of the funds involved in
any transaction, in accordance with steps the
Secretary has determined to be reasonable and
practicable to obtain and retain such
information; and
``(iv) a description of any transaction.
``(2) Information relating to beneficial ownership.--In
addition to any other requirement under any other law, the
Secretary may require any domestic financial institution or
domestic financial agency to take such steps as the Secretary
may determine to be reasonable and practicable to obtain and
retain information concerning the beneficial ownership of any
account opened or maintained in the United States by a foreign
person (other than a foreign entity whose shares are subject to
public reporting requirements or are listed and traded on a
regulated exchange or trading market), or a representative of
such a foreign person, that involves a jurisdiction outside the
United States, 1 or more financial institutions operating
outside the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside the United States,
if the Secretary finds any such jurisdiction, institution, or
transaction to be of primary money laundering concern.
``(3) Information relating to certain payable-through
accounts.--If the Secretary finds a jurisdiction outside the
United States, 1 or more financial institutions operating
outside the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside the United States
to be of primary money laundering concern, the Secretary may
require any domestic financial institution or domestic
financial agency that opens or maintains a payable-through
account in the United States for a foreign financial
institution involving any such jurisdiction or any such
financial institution operating outside the United States, or a
payable-through account through which any such transaction may
be conducted, as a condition of opening or maintaining such
account, to--
``(A) identify each customer (and representative of
such customer) of such financial institution who is
permitted to use, or whose transactions are routed
through, such payable-through account; and
``(B) obtain, with respect to each such customer
(and each such representative), the same information
that the depository institution obtains in the ordinary
course of business with respect to its customers
residing in the United States.
``(4) Information relating to certain correspondent
accounts.--If the Secretary finds a jurisdiction outside the
United States, 1 or more financial institutions operating
outside the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside the United States
to be of primary money laundering concern, the Secretary may
require any domestic financial institution or domestic
financial agency that opens or maintains a correspondent
account in the United States for a foreign financial
institution involving any such jurisdiction or any such
financial institution operating outside the United States, or a
correspondent account through which any such transaction may be
conducted, as a condition of opening or maintaining such
account, to--
``(A) identify each customer (and representative of
such customer) of any such financial institution who is
permitted to use, or whose transactions are routed
through, such correspondent account; and
``(B) obtain, with respect to each such customer
(and each such representative), the same information
that the depository institution obtains in the ordinary
course with respect to its customers residing in the
United States.
``(5) Prohibitions or conditions on opening or maintaining
certain correspondent or payable-through accounts.--If the
Secretary finds a jurisdiction outside the United States, 1 or
more financial institutions operating outside the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside the United States to be of
primary money laundering concern, the Secretary, in
consultation with the Secretary of State, the Attorney General,
and the Chairman of the Board of Governors of the Federal
Reserve System, may prohibit, or impose conditions upon, the
opening or maintaining in the United States of a correspondent
account or payable-through account by any domestic financial
institution or domestic financial agency for or on behalf of a
foreign banking institution if such correspondent account or
payable-through account involves any such jurisdiction or
institution, or if any such transaction may be conducted
through such correspondent account or payable-through account.
``(c) Consultations and Information To Be Considered in Finding
Jurisdictions, Institutions, or Transactions To Be of Primary Money
Laundering Concern.--
``(1) In general.--In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside the
United States, 1 or more financial institutions operating
outside the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside the United States
is of primary money laundering concern so as to authorize the
Secretary to invoke 1 or more of the special measures of
subsection (b), the Secretary shall consult with the Secretary
of State, the Attorney General, the Secretary of Commerce, and
the United States Trade Representative.
``(2) Information.--The Secretary also shall consider such
information as the Secretary considers to be relevant,
including the following potentially relevant factors:
``(A) In the case of a particular jurisdiction--
``(i) the extent to which that jurisdiction
or financial institutions operating therein
offer bank secrecy or special tax or regulatory
advantages to nonresidents or nondomiciliaries
of such jurisdiction;
``(ii) the substance and quality of
administration of that jurisdiction's bank
supervisory and counter-money laundering laws;
``(iii) the relationship between the volume
of financial transactions occurring in that
jurisdiction and the size of the jurisdiction's
economy;
``(iv) the extent to which that
jurisdiction is characterized as a tax haven or
offshore banking or secrecy haven by credible
international organizations or multilateral
expert groups;
``(v) whether the United States has a
mutual legal assistance treaty with that
jurisdiction, and the experience of United
States law enforcement officials, regulatory
officials, and tax administrators in obtaining
information about transactions originating in
or routed through or to such jurisdiction; and
``(vi) the extent to which that
jurisdiction is characterized by high levels of
official or institutional corruption.
``(B) In the case of a decision to apply 1 or more
of the special measures described in subsection (b)
only to a financial institution or institutions, or to
a transaction or class of transactions, or to both,
within, or involving, a particular jurisdiction--
``(i) the extent to which such financial
institutions or transactions are used to
facilitate or promote money laundering in or
through the jurisdiction;
``(ii) the extent to which such
institutions or transactions are used for
legitimate business purposes in such
jurisdiction; and
``(iii) the extent to which such action is
sufficient to ensure, with respect to
transactions involving such jurisdiction and
institutions operating in such jurisdiction,
that the purposes of this subchapter continue
to be fulfilled, and to guard against
international money laundering and other
financial crimes.
``(d) Notification of Special Measures Invoked By the Secretary.--
Within 10 days after the date of any action taken by the Secretary
under subsection (a)(1), the Secretary shall notify, in writing, the
Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate of any such action.
``(e) Definitions.--Notwithstanding any other provision of this
subchapter, for purposes of this section, the following definitions
shall apply:
``(1) Defined terms.--
``(A) Bank definitions.--The following definitions
shall apply with respect to a bank:
``(i) Account.--The term `account'--
``(I) means a formal banking or
business relationship established to
provide regular services, dealings, and
other financial transactions; and
``(II) includes a demand deposit,
savings deposit, or other transaction
or asset account and a credit account
or other extension of credit.
``(ii) Correspondent account.--The term
`correspondent account' means an account
established to receive deposits from and make
payments on behalf of a foreign financial
institution.
``(iii) Payable-through account.--The term
`payable-through account' means an account,
including a transaction account (as defined in
section 19(b)(1)(C) of the Federal Reserve
Act), opened at a depository institution by a
foreign financial institution by means of which
the foreign financial institution permits its
customers to engage, either directly or through
a sub-account, in banking activities usual in
connection with the business of banking in the
United States.
``(B) Definitions applicable to institutions other
than banks.--With respect to any financial institution
other than a bank, the Secretary shall define, by
regulation, order, or otherwise as permitted by law,
the term `account' and shall include within the meaning
of such term arrangements similar to payable-through
and correspondent accounts.
``(2) Other terms.--The Secretary may, by regulation,
order, or otherwise as permitted by law, further define the
terms in paragraph (1) and define other terms for the purposes
of this section, as the Secretary deems appropriate.''.
(b) Clerical Amendment.--The table of sections for subchapter II of
chapter 53 of title 31, United States Code, is amended by inserting
after the item relating to section 5318 the following new item:
``5318A. Special measures for jurisdictions, financial institutions, or
international transactions of primary money
laundering concern.''.
TITLE II--CURRENCY TRANSACTION REPORTING AMENDMENTS AND RELATED
IMPROVEMENTS
SEC. 201. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS ACTIVITIES.
(a) Amendment Relating to Civil Liability Immunity for
Disclosures.--Section 5318(g)(3) of title 31, United States Code, is
amended to read as follows:
``(3) Liability for disclosures.--
``(A) In general.--Any financial institution that
makes a voluntary disclosure of any possible violation
of law or regulation to a government agency or makes a
disclosure pursuant to this subsection or any other
authority, and any director, officer, employee, or
agent of such institution who makes, or requires another to make any
such disclosure, shall not be liable to any person under any law or
regulation of the United States, any constitution, law, or regulation
of any State or political subdivision of any State, or under any
contract or other legally enforceable agreement (including any
arbitration agreement), for such disclosure or for any failure to
provide notice of such disclosure to the person who is the subject of
such disclosure or any other person identified in the disclosure.
``(B) Rule of construction.--Subparagraph (A) shall
not be construed as creating--
``(i) any inference that the term `person',
as used in such subparagraph, may be construed
more broadly than its ordinary usage so to
include any government or agency of government;
or
``(ii) any immunity against, or otherwise
affecting, any civil or criminal action brought
by any government or agency of government to
enforce any constitution, law, or regulation of
such government or agency.''.
(b) Prohibition on Notification of Disclosures.--Section 5318(g)(2)
of title 31, United States Code, is amended to read as follows:
``(2) Notification prohibited.--
``(A) In general.--If a financial institution or
any director, officer, employee, or agent of any
financial institution, voluntarily or pursuant to this
section or any other authority, reports a suspicious
transaction to a government agency--
``(i) the financial institution, director,
officer, employee, or agent may not notify any
person involved in the transaction that the
transaction has been reported; and
``(ii) no officer or employee of the
Federal Government or of any State, local,
tribal, or territorial government within the
United States, who has any knowledge that such
report was made may disclose to any person
involved in the transaction that the
transaction has been reported other than as
necessary to fulfill the official duties of
such officer or employee.
``(B) Disclosures in certain employment
references.--Notwithstanding the application of
subparagraph (A) in any other context, subparagraph (A)
shall not be construed as prohibiting any financial
institution, or any director, officer, employee, or
agent of such institution, from including, in a written
employment reference that is provided in accordance
with section 18(v) of the Federal Deposit Insurance Act
in response to a request from another financial
institution or a written termination notice or
employment reference that is provided in accordance
with the rules of the self-regulatory organizations
registered with the Securities and Exchange Commission,
information that was included in a report to which
subparagraph (A) applies, but such written employment
reference may not disclose that such information was
also included in any such report or that such report
was made.''.
SEC. 202. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING ORDERS AND
CERTAIN RECORDKEEPING REQUIREMENTS, AND LENGTHENING
EFFECTIVE PERIOD OF GEOGRAPHIC TARGETING ORDERS.
(a) Civil Penalty for Violation of Targeting Order.--Section
5321(a)(1) of title 31, United States Code, is amended--
(1) by inserting ``or order issued'' after ``subchapter or
a regulation prescribed''; and
(2) by inserting ``, or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508,'' after ``section 5314
and 5315)''.
(b) Criminal Penalties for Violation of Targeting Order.--Section
5322 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``or order issued'' after
``willfully violating this subchapter or a regulation
prescribed''; and
(B) by inserting ``, or willfully violating a
regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-
508,'' after ``under section 5315 or 5324)'';
(2) in subsection (b)--
(A) by inserting ``or order issued'' after
``willfully violating this subchapter or a regulation
prescribed''; and
(B) by inserting ``or willfully violating a
regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-
508,'' after ``under section 5315 or 5324),''.
(c) Structuring Transactions To Evade Targeting Order or Certain
Recordkeeping Requirements.--Section 5324(a) of title 31, United States
Code, is amended--
(1) by inserting a comma after ``shall'';
(2) by striking ``section--'' and inserting ``section, the
reporting or recordkeeping requirements imposed by any order
issued under section 5326, or the recordkeeping requirements
imposed by any regulation prescribed under section 21 of the
Federal Deposit Insurance Act or section 123 of Public Law 91-
508--'';
(3) in paragraph (1) by inserting ``, to file a report or
to maintain a record required by an order issued under section
5326, or to maintain a record required pursuant to any
regulation prescribed under section 21 of the Federal Deposit
Insurance Act or section 123 of Public Law 91-508'' after ``regulation
prescribed under any such section''; and
(4) in paragraph (2) by inserting ``, to file a report or
to maintain a record required by any order issued under section
5326, or to maintain a record required pursuant to any
regulation prescribed under section 5326, or to maintain a
record required pursuant to any regulation prescribed under
section 21 of the Federal Deposit Insurance Act or section 123
of Public Law 91-508,'' after ``regulation prescribed under any
such section''.
(d) Lengthening Effective Period of Geographic Targeting Orders.--
Section 5326(d) of title 31, United States Code, is amended by striking
``60'' after ``shall be effective for more than'' and inserting
``180''.
SEC. 203. AUTHORIZATION TO INCLUDE SUSPICIONS OF ILLEGAL ACTIVITY IN
WRITTEN EMPLOYMENT REFERENCES.
Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is
amended by adding at the end the following new subsection:
``(v) Written Employment References May Contain Suspicions of
Involvement in Illegal Activity.--
``(1) In general.--Notwithstanding any other provision of
law, any insured depository institution, and any director,
officer, employee, or agent of such institution, may disclose
in any written employment reference relating to a current or
former institution-affiliated party of such institution which
is provided to another insured depository institution in
response to a request from such other institution, information
concerning the possible involvement of such institution-
affiliated party in potentially unlawful activity.
``(2) Definition.--For purposes of this subsection, the
term `insured depository institution' includes any uninsured
branch or agency of a foreign bank.''.
SEC. 204. BANK SECRECY ACT ADVISORY GROUP.
Section 1564 of the Annunzio-Wylie Anti-Money Laundering Act (31
U.S.C. 5311 note) is amended--
(1) in subsection (a), by inserting ``, of nongovernmental
organizations advocating financial privacy,'' after ``Drug
Control Policy''; and
(2) in subsection (c), by inserting ``, other than
subsections (a) and (d) of such Act which shall apply'' before
the period at the end.
SEC. 205. AGENCY REPORTS ON RECONCILING PENALTY AMOUNTS.
Before the end of the 1-year period beginning on the date of the
enactment of this Act, the Secretary of the Treasury and the Federal
banking agencies (as defined in section 3 of the Federal Deposit
Insurance Act) shall each submit their respective reports to the
Congress containing recommendations on possible legislation to conform
the penalties imposed on depository institutions (as defined in section
3 of the Federal Deposit Insurance Act) for violations of subchapter II
of chapter 53 of title 31, United States Code, to the penalties imposed
on such institutions under section 8 of the Federal Deposit Insurance
Act.
SEC. 206. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED STATES.
(a) Enactment of Bulk Cash Smuggling Offense.--Subchapter II of
chapter 53 of title 31, United States Code, is amended by adding at the
end the following:
``Sec. 5331. Bulk cash smuggling into or out of the United States
``(a) Criminal Offense.--
``(1) In general.--Whoever, with the intent to evade a
currency reporting requirement under section 5316, knowingly
conceals more than $10,000 in currency or other monetary
instruments on the person of such individual or in any
conveyance, article of luggage, merchandise, or other
container, and transports or transfers or attempts to transport
or transfer such currency or monetary instruments from a place
within the United States to a place outside of the United
States, or from a place outside the United States to a place
within the United States, shall be guilty of a currency
smuggling offense and subject to punishment pursuant to
subsection (b).
``(2) Concealment on person.--For purposes of this section,
the concealment of currency on the person of any individual
includes concealment in any article of clothing worn by the
individual or in any luggage, backpack, or other container worn
or carried by such individual.
``(b) Penalty.--
``(1) Term of imprisonment.--A person convicted of a
currency smuggling offense under subsection (a), or a
conspiracy to commit such offense, shall be imprisoned for not
more than 5 years.
``(2) Forfeiture.--In addition, the court, in imposing
sentence under paragraph (1), shall order that the defendant
forfeit to the United States, any property, real or personal,
involved in the offense, and any property traceable to such
property, subject to subsection (d) of this section.
``(3) Procedure.--The seizure, restraint, and forfeiture of
property under this section shall be governed by section 413 of
the Controlled Substances Act.
``(4) Personal money judgment.--If the property subject to
forfeiture under paragraph (2) is unavailable, and the
defendant has insufficient substitute property that may be
forfeited pursuant to section 413(p) of the Controlled
Substances Act, the court shall enter a personal money judgment
against the defendant for the amount that would be subject to
forfeiture.
``(c) Civil Forfeiture.--
``(1) In general.--Any property involved in a violation of
subsection (a), or a conspiracy to commit such violation, and
any property traceable to such violation or conspiracy, may be
seized and, subject to subsection (d) of this section,
forfeited to the United States.
``(2) Procedure.--The seizure and forfeiture shall be
governed by the procedures governing civil forfeitures in money
laundering cases pursuant to section 981(a)(1)(A) of title 18,
United States Code.
``(3) Treatment of certain property as involved in the
offense.--For purposes of this subsection and subsection (b),
any currency or other monetary instrument that is concealed or
intended to be concealed in violation of subsection (a) or a
conspiracy to commit such violation, any article, container, or
conveyance used, or intended to be used, to conceal or
transport the currency or other monetary instrument, and any
other property used, or intended to be used, to facilitate the
offense, shall be considered property involved in the offense.
``(d) Proportionality of Forfeiture.--
``(1) In general.--Upon a showing by the property owner by
a preponderance of the evidence that the currency or monetary
instruments involved in the offense giving rise to the
forfeiture were derived from a legitimate source, and were
intended for a lawful purpose, the court shall reduce the
forfeiture to the maximum amount that is not grossly
disproportional to the gravity of the offense.
``(2) Factors to be considered.--In determining the amount
of the forfeiture, the court shall consider all aggravating and
mitigating facts and circumstances that have a bearing on the
gravity of the offense, including the following:
``(A) The value of the currency or other monetary
instruments involved in the offense.
``(B) Efforts by the person committing the offense
to structure currency transactions, conceal property,
or otherwise obstruct justice.
``(C) Whether the offense is part of a pattern of
repeated violations of Federal law.''.
(b) Conforming Amendment.--The table of sections for subchapter II
of chapter 53 of title 31, United States Code, is amended by inserting
after the item relating to section 5330, the following new item:
``5331. Bulk cash smuggling into or out of the United States.''.
SEC. 207. FORFEITURE IN CURRENCY REPORTING CASES.
(a) In General.--Subsection (c) of section 5317 of title 31, United
States Code, is amended to read as follows:
``(c) Forfeiture.--
``(1) In general.--The court in imposing sentence for any
violation of section 5313, 5316, or 5324, or any conspiracy to
commit such violation, shall order the defendant to forfeit all
property, real or personal, involved in the offense and any
property traceable thereto.
``(2) Procedure.--Forfeitures under this subsection shall
be governed by the procedures established in section 413 of the
Controlled Substances Act and the guidelines established in
paragraph (4).
``(3) Civil forfeiture.--Any property involved in a
violation of section 5313, 5316, or 5324, or any conspiracy to
commit any such violation, and any property traceable to any
such violation or conspiracy, may be seized and, subject to
paragraph (4), forfeited to the United States in accordance
with the procedures governing civil forfeitures in money
laundering cases pursuant to section 981(a)(1)(A) of title 18,
United States Code.
``(4) Proportionality of forfeiture.--
``(A) In general.--Upon a showing by the property
owner by a preponderance of the evidence that any
currency or monetary instruments involved in the
offense giving rise to the forfeiture were derived from
a legitimate source, and were intended for a lawful
purpose, the court shall reduce the forfeiture to the
maximum amount that is not grossly disproportional to
the gravity of the offense.
``(B) Factors to be considered.--In determining the
amount of the forfeiture, the court shall consider all
aggravating and mitigating facts and circumstances that
have a bearing on the gravity of the offense, including
the following:
``(i) The value of the currency or other
monetary instruments involved in the offense.
``(ii) Efforts by the person committing the
offense to structure currency transactions,
conceal property, or otherwise obstruct
justice.
``(iii) Whether the offense is part of a
pattern of repeated violations of Federal
law.''.
(b) Conforming Amendments.--(1) Section 981(a)(1)(A) of title 18,
United States Code, is amended by striking ``of section 5313(a) or
5324(a) of title 31, or''.
(2) Section 982(a)(1) of title 18, United States Code, is amended
by striking ``of 5313(a), 5316, or 5324 of title 31, or''.
SEC. 208. INTERSTATE CURRENCY COURIERS.
Section 1957 of title 18, United States Code, is amended by adding
at the end the following new subsection:
``(g) Any person who conceals more than $10,000 in currency on his
or her person, in any vehicle, in any compartment or container within
any vehicle, or in any container placed in a common carrier, and
transports, attempts to transport, or conspires to transport such
currency in interstate commerce on any public road or highway or on any
bus, train, airplane, vessel, or other common carrier, knowing that the
currency was derived from some form of unlawful activity, or knowing
that the currency was intended to be used to promote some form of
unlawful activity, shall be punished as provided in subsection (b). The
defendant's knowledge may be established by proof that the defendant
was willfully blind to the source or intended use of the currency. For
purposes of this subsection, the concealment of currency on the person
of any individual includes concealment in any article of clothing worn
by the individual or in any luggage, backpack, or other container worn
or carried by such individual.''.
SEC. 209. ANTI-MONEY LAUNDERING MEASURES FOR UNITED STATES BANK
ACCOUNTS INVOLVING FOREIGN PERSONS.
(a) Requirements Relating to United States Bank Accounts Involving
Foreign Persons.--Subchapter II of chapter 53 of title 31, United
States Code, is amended by inserting after section 5318 the following:
``Sec. 5318A. Requirements relating to United States bank accounts
involving foreign persons
``(a) Definitions.--
``(1) In general.--In this section, the following
definitions shall apply:
``(A) Account.--The term `account'--
``(i) means a formal banking or business
relationship established to provide regular
services, dealings, or financial transactions;
and
``(ii) includes a demand deposit, savings
deposit, or other transaction or asset account,
and a credit account or other extension of
credit.
``(B) Branch or agency of a foreign bank.--The term
`branch or agency of a foreign bank' has the meanings
given those terms in section 1 of the International
Banking Act of 1978 (12 U.S.C. 3101).
``(C) Correspondent account.--The term
`correspondent account' means an account established
for a depository institution, credit union, or foreign
bank.
``(D) Correspondent bank.--The term `correspondent
bank' means a depository institution, credit union, or
foreign bank that establishes a correspondent account
for and provides banking services to a depository
institution, credit union, or foreign bank.
``(E) Covered financial institution.--The term
`covered financial institution' means--
``(i) a depository institution;
``(ii) a credit union; and
``(iii) a branch or agency of a foreign
bank.
``(F) Credit union.--The term `credit union' means
any insured credit union, as defined in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752), or any
credit union that is eligible to make application to
become an insured credit union pursuant to section 201
of the Federal Credit Union Act (12 U.S.C. 1781).
``(G) Depository institution.--The term `depository
institution' has the same meaning as in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
``(H) Foreign bank.--The term `foreign bank' has
the same meaning as in section 1 of the International
Banking Act of 1978 (12 U.S.C. 3101).
``(I) Foreign country.--The term `foreign country'
has the same meaning as in section 1 of the
International Banking Act of 1978 (12 U.S.C. 3101).
``(J) Foreign person.--The term `foreign person'
means any foreign organization or any individual
resident in a foreign country or any organization or
individual owned or controlled by such an organization
or individual.
``(K) Offshore banking license.--The term `offshore
banking license' means a license to conduct banking
activities which, as a condition of the license,
prohibits the licensed entity from conducting banking
activities with the citizens of, or with the local
currency of, the foreign country which issued the
license.
``(L) Private bank account.--The term `private bank
account' means an account (or combination of accounts)
that--
``(i) requires a minimum aggregate deposit
of funds or assets in an amount equal to not
less than $1,000,000;
``(ii) is established on behalf of 1 or
more individuals who have a direct or
beneficial ownership interest in the account;
and
``(iii) is assigned to, administered, or
managed in whole or in part by an employee of a
financial institution acting as a liaison
between the institution and the direct or
beneficial owner of the account.
``(2) Other terms.--After consultation with the Board of
Governors of the Federal Reserve System, the Secretary may, by
regulation, order, or otherwise as permitted by law, define any
term that is used in this section and that is not otherwise
defined in this section or section 5312, as the Secretary deems
appropriate.
``(b) United States Bank Accounts With Unidentified Foreign
Owners.--
``(1) Records.--
``(A) In general.--A covered financial institution
shall not establish, maintain, administer, or manage an
account in the United States for a foreign person or a
representative of a foreign person, unless the covered
financial institution maintains in the United States,
for each such account, a record identifying, by a
verifiable name and account number, each individual or
entity having a direct or beneficial ownership interest
in the account.
``(B) Publicly traded corporations.--A record
required under subparagraph (A) that identifies an
entity, the shares of which are publicly traded on a
stock exchange regulated by an organization or agency
that is a member of and endorses the principles of the
International Organization of Securities Commissions
(in this section referred to as `publicly traded'), is
not required to identify individual shareholders of the
entity.
``(C) Foreign banks.--In the case of a
correspondent account that is established for a foreign
bank, the shares of which are not publicly traded, the record required
under subparagraph (A) shall identify each of the owners of the foreign
bank, and the nature and extent of the ownership interest of each such
owner.
``(2) Complex ownership interests.--The Secretary may, by
regulation, order, or otherwise as permitted by law, further
delineate the information to be maintained in the United States
under paragraph (1)(A), including information for accounts with
multiple, complex, or changing ownership interests.
``(c) Prohibition on United States Correspondent Accounts With
Foreign Shell Banks.--
``(1) In general.--A covered financial institution shall
not establish, maintain, administer, or manage a correspondent
account in the United States for, or on behalf of, a foreign
bank that does not have a physical presence in any country.
``(2) Prevention of indirect service to foreign shell
banks.--A covered financial institution shall take reasonable
steps to ensure that any correspondent account established,
maintained, administered, or managed by that covered financial
institution in the United States for a foreign bank is not
being used by that foreign bank to indirectly provide banking
services to another foreign bank that does not have a physical
presence in any country.
``(3) Exception.--Paragraphs (1) and (2) do not prohibit a
covered financial institution from providing a correspondent
account to a foreign bank, if the foreign bank--
``(A) is an affiliate of a depository institution,
credit union, or other foreign bank that maintains a
physical presence in the United States or a foreign
country, as applicable; and
``(B) is subject to supervision by a banking
authority in the country regulating the affiliated
depository institution, credit union, or foreign bank,
described in subparagraph (A), as applicable.
``(4) Definitions.--For purposes of this subsection--
``(A) the term `affiliate' means a foreign bank
that is controlled by or is under common control with a
depository institution, credit union, or foreign bank;
and
``(B) the term `physical presence' means a place of
business that--
``(i) is maintained by a foreign bank;
``(ii) is located at a fixed address (other
than solely an electronic address) in a country
in which the foreign bank is authorized to
conduct banking activities, at which location
the foreign bank--
``(I) employs 1 or more individuals
on a full-time basis; and
``(II) maintains operating records
related to its banking activities; and
``(iii) is subject to inspection by the
banking authority which licensed the foreign
bank to conduct banking activities.
``(d) Due Diligence for United States Private Bank and
Correspondent Bank Accounts Involving Foreign Persons.--
``(1) In general.--Each covered financial institution that
establishes, maintains, administers, or manages a private bank
account or a correspondent account in the United States for a
foreign person or a representative of a foreign person shall
establish enhanced due diligence policies, procedures, and
controls to prevent, detect, and report possible instances of
money laundering through those accounts.
``(2) Minimum standards.--The enhanced due diligence
policies, procedures, and controls required under paragraph (1)
of this subsection, shall, at a minimum, ensure that the
covered financial institution--
``(A) ascertains the identity of each individual or
entity having a direct or beneficial ownership interest
in the account, and obtains sufficient information
about the background of the individual or entity and
the source of funds deposited into the account as is needed to guard
against money laundering;
``(B) monitors such accounts on an ongoing basis to
prevent, detect, and report possible instances of money
laundering;
``(C) conducts enhanced scrutiny of any private
bank account requested or maintained by, or on behalf
of, a senior foreign political figure, or any immediate
family member or close associate of a senior foreign
political figure, to prevent, detect, and report
transactions that may involve the proceeds of foreign
corruption;
``(D) conducts enhanced scrutiny of any
correspondent account requested or maintained by, or on
behalf of, a foreign bank operating--
``(i) under an offshore banking license; or
``(ii) under a banking license issued by a
foreign country that has been designated--
``(I) as noncooperative with
international anti-money laundering
principles or procedures by an
intergovernmental group or organization
of which the United States is a member;
or
``(II) by the Secretary as
warranting special measures due to
money laundering concerns; and
``(E) ascertains, as part of the enhanced scrutiny
under subparagraph (D), whether the foreign bank
provides correspondent accounts to other foreign banks
and, if so, the identity of those foreign banks and
related due diligence information, as appropriate,
under paragraph (1).''.
(b) Regulatory Authority.--After consultation with the Board of
Governors of the Federal Reserve System, the Secretary of the Treasury
may, by regulation, order, or otherwise as permitted by law, take
measures that the Secretary deems appropriate to carry out section
5318A of title 31, United States Code (as added by this section).
(c) Conforming Amendments.--Section 5312(a) of title 31, United
States Code, is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following:
``(5) `Secretary' means the Secretary of the Treasury,
except as otherwise provided in this subchapter.''.
(d) Clerical Amendment.--The table of sections for subchapter II of
chapter 53 of title 31, United States Code, is amended by inserting
after the item related to section 5318 the following:
``5318A. Requirements relating to United States bank accounts involving
foreign persons.''.
(e) Effective Date.--Section 5318A of title 31, United States Code,
as added by this section, shall take effect beginning 180 days after
the date of enactment of this Act with respect to accounts covered by
that section that are opened before, on, or after the date of enactment
of this Act.
TITLE III--ENHANCED LAW ENFORCEMENT
SEC. 301. LONG-ARM JURISDICTION OVER FOREIGN MONEY LAUNDERERS.
Section 1956(b) of title 18, United States Code, is amended--
(1) by striking ``(b) Whoever'' and inserting ``(b)(1)
Whoever'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) by striking ``subsection (a)(1) or (a)(3),'' and
inserting ``subsection (a)(1) or (a)(3)(2) or section 1957,'';
and
(4) by adding at the end the following new paragraph:
``(2) For purposes of adjudicating an action filed or
enforcing a penalty ordered under this section, the district
courts shall have jurisdiction over any foreign person,
including any financial institution authorized under the laws
of a foreign country, against whom the action is brought, if--
``(A) service of process upon such foreign person
is made under the Federal Rules of Civil Procedure or
the laws of the country where the foreign person is
found; and
``(B) the foreign person--
``(i) commits an offense under subsection
(a) involving a financial transaction that
occurs in whole or in part in the United
States;
``(ii) converts to such person's own use
property in which the United States has an
ownership interest by virtue of the entry of an
order of forfeiture by a court of the United
States; or
``(iii) is a financial institution that
maintains a correspondent bank account at a
financial institution in the United States.
``(3) 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. 302. 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 any
financial institution described in section 5312(a)(2) of title
31, United States Code, or the regulations promulgated
thereunder, as well as any foreign bank, as defined in
paragraph (7) of section 1(b) of the International Banking Act
of 1978 (12 U.S.C. 3101(7)).''.
SEC. 303. 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 new clause:
``(ii) any act or acts constituting a crime
of violence, as defined in Section 16 of this
title;''; and
(B) by inserting after clause (iii) the following
new clauses:
``(iv) fraud or any scheme to defraud
committed against an individual or entity
(other than a foreign government or government
entity) provided such conduct would constitute
a fraud or scheme to defraud under the laws of
the United States or its constituent parts if
committed in the United States;
``(v) fraud or any scheme to defraud
against a foreign government or foreign
government entity, provided such conduct would
constitute a violation of Title 18 of the
United States Code if it were committed in
interstate commerce in the United States and
against the United States government or a
United States governmental entity;
``(vi) bribery of a public official, or the
misappropriation, theft, or embezzlement of
public funds by or for the benefit of a public
official;
``(vii) 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
``(viii) an offense with respect to which
the United States would be obligated by a
multilateral treaty either to extradite the
alleged offender or to submit the case for
prosecution, if the offender were found within
the territory of the United States.''; and
(2) in subparagraph (D)--
(A) by inserting ``section 541 (relating to goods
falsely classified),'' before ``section 542'';
(B) by inserting ``section 922(1) (relating to the
unlawful importation of firearms), section 924(n)
(relating to firearms trafficking),'' before ``section
956'';
(C) by inserting ``section 1030 (relating to
computer fraud and abuse),'' before ``1032'';
(D) by inserting ``any felony violation of the
Foreign Agents Registration Act of 1938, as amended,''
before ``or any felony violation of the Foreign Corrupt
Practices Act''; and
(E) by striking ``fraud in the sale of securities''
and inserting ``fraud in the purchase or sale of
securities''.
(3) in paragraph (E), by striking ``or'' and inserting ``,
or the Clean Air Act (42 U.S.C. 7401 et seq.), or any wildlife
protection offense, as defined in section 49,'' after ``the
Resources Conservation and Recovery Act (42 U.S.C. 6901 et
seq.)''.
(4) by inserting the following after paragraph (F):
``(G) any violation of the Archeological Resources
Protection Act (16 U.S.C. 470aa, et seq.), or the
Native American Graves Protection and Repatriation Act
(25 U.S.C. 3001, et seq.).
(b)(1) Burglary and Embezzlement.--Section 1961(1)(A) of title 18,
United States Code, is amended by inserting ``burglary, embezzlement,''
after ``robbery,''.
(2) Alien Smuggling.--Section 1961(1)(F) of title 18, United States
Code, is amended by inserting ``and 274A'' after ``274''.
(c) Wildlife Protection Offense.--
(1) Chapter 3 of title 18, United States Code, is amended
by inserting after section 48 the following new section:
``Sec. 49. DEFINITION OF WILDLIFE PROTECTION OFFENSE.
``(a) As used in this title, the term `wildlife protection
offense'' means any violation of a provision of this chapter or of any
Act listed in subsection (b), or any regulation promulgated thereunder,
that may be prosecuted as a criminal offense.
``(b) The statutes referred to in subsection (a) include the
following:
``(1) the Lacey Act (16 U.S.C. 3371-78 and 18 U.S.C. 42;
``(2) the Endangered Species Act (16 U.S.C. 1538);
``(3) the Marine Mammal Protection Act (16 U.S.C. 1372);
``(4) the African Elephant Conservation Act (16 U.S.C.
4222-23);
``(5) the Wild Exotic Bird Conservation Act (16 U.S.C.
4910);
``(6) the Eagle Protection Act (16 U.S.C. 668);
``(7) the Migratory Bird Treaty Act (16 U.S.C. 703);
``(8) the Migratory Bird Conservation Stamp Act (16 U.S.C.
718f);
``(9) the Airborne Hunting Act (16 U.S.C. 742j-1);
``(10) the Antarctic Conservation Act (16 U.S.C. 2403);
``(11) the National Wildlife Refuge System Administration
Act (16 U.S.C. 668dd);
``(12) the Rhinoceros and Tiger Conservation Act (16 U.S.C.
5305a);
``(13) the Federal Cave Resources Protection Act (16 U.S.C.
4306); or
``(14) the Antarctic Marine Living Resources Convention (16
U.S.C. 2435).''.
(2) The table of sections for Chapter 3 of title 18, United
States Code, is amended by inserting after the item relating to
section 48 the following new item:
``49. Definition of wildlife protection offense.''.
SEC. 304. SUBPOENAS FOR BANK RECORDS.
Section 986 of title 18, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' before ``At any time'';
(B) by striking ``section 1956, 1957, or 1960 of
this title, section 5322 or 5324 of title 31, United
States Code'' and inserting ``section 981 or 982 of
this title'';
(C) by striking ``in rem''; and
(D) by striking the last sentence and inserting the
following:
``(2) The United States may request the Clerk of the Court
in any district where a civil forfeiture action may be filed
pursuant to 28 U.S.C. 1355(b) to issue a subpoena duces tecum
under paragraph (1) before the filing of the verified
complaint.''
(2) in subsection (c), by inserting ``or the Federal Rules
of Criminal Procedure'' after ``Procedure''.
SEC. 305. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.
Section 1956(h) of title 18, United States Code, is amended--
(1) by striking ``any person'' and inserting ``(1) Any
person''; and
(2) by adding at the end the following new paragraph:
``(2) 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. 306. FUNGIBLE PROPERTY IN BANK ACCOUNTS.
(a) In General.--Section 984 of title 18, United States Code, is
amended by striking subsection (b) and inserting the following:
``(b) The provisions of this section may be invoked only if the
action for forfeiture was commenced by the seizure or restraint of the
property, or by the filing of a complaint, within 2 years of the
completion of the offense that is the basis for the forfeiture.''.
(b) Application.--The amendments made by this section shall apply
to any offense whether or not committed before the effective date of
the Act.
SEC. 307. PROHIBITION ON FALSE STATEMENTS TO FINANCIAL INSTITUTIONS
CONCERNING THE IDENTITY OF A CUSTOMER.
(a) In General.--Chapter 47 of title 18, United States Code, is
amended by inserting after section 1007 the following:
``Sec. 1008. False statements concerning the identity of customers of
financial institutions
``(a) In General.--Whoever knowingly in any manner--
``(1) falsifies, conceals, or covers up, or attempts to
falsify, conceal, or cover up, the identity of any person in
connection with any transaction with a financial institution;
``(2) makes, or attempts to make, any materially false,
fraudulent, or fictitious statement or representation of the
identity of any person in connection with a transaction with a
financial institution;
``(3) makes or uses, or attempts to make or use, any false
writing or document knowing the same to contain any materially
false, fictitious, or fraudulent statement or entry concerning
the identity of any person in connection with a transaction
with a financial institution; or
``(4) uses or presents, or attempts to use or present, in
connection with a transaction with a financial institution, an
identification document or means of identification the
possession of which is a violation of section 1028;
shall be fined under this title, imprisoned not more than 5 years, or
both.
``(b) Definitions.--In this section, the following definitions
shall apply:
``(1) Financial institution.--The term `financial
institution'--
``(A) has the same meaning as in section 20; and
``(B) in addition, has the same meaning as in
section 5312(a)(2) of title 31, United States Code.
``(2) Identification document.--The term `identification
document' has the same meaning as in section 1028(d).
``(3) Means of identification.--The term `means of
identification' has the same meaning as in section 1028(d).''.
(b) Technical and Conforming Amendments.--
(1) Title 18, united states code.--Section 1956(c)(7)(D) of
title 18, United States Code, is amended by striking ``1014
(relating to fraudulent loan'' and inserting ``section 1008
(relating to false statements concerning the identity of
customers of financial institutions), section 1014 (relating to
fraudulent loan''.
(2) Table of sections.--The table of sections for chapter
47 of title 18, United States Code, is amended by inserting
after the item relating to section 1007 the following:
``1008. False statements concerning the identity of customers of
financial institutions.''.
SEC. 308. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK ACCOUNTS.
(a) Forfeiture From United States Interbank Account.--Section 981
of title 18, United States Code, is amended by adding at the end the
following:
``(k) Interbank Accounts.--
``(1) In general.--For the purpose of a forfeiture under
this section or under the Controlled Substances Act (21 U.S.C.
801 et seq.), if funds are deposited into an account at a
foreign bank, and that foreign bank has an interbank account in
the United States with a covered financial institution (as
defined in section 5318A of title 31), the funds shall be
deemed to have been deposited into the interbank account in the
United States, and any restraining order, seizure warrant, or
arrest warrant in rem regarding the funds may be served on the
covered financial institution, and funds in the interbank
account, up to the value of the funds deposited into the
account at the foreign bank, may be restrained, seized, or
arrested.
``(2) No requirement for government to trace funds.--If a
forfeiture action is brought against funds that are restrained,
seized, or arrested under paragraph (1), it shall not be
necessary for the Government to establish that the funds are
directly traceable to the funds that were deposited into the
foreign bank, nor shall it be necessary for the Government to
rely on the application of section 984.
``(3) Claims brought by owner of the funds.--If a
forfeiture action is instituted against funds restrained,
seized, or arrested under paragraph (1), the owner of the funds
deposited into the account at the foreign bank may contest the
forfeiture by filing a claim under section 983.
``(4) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Interbank account.--The term `interbank
account' has the same meaning as in section
984(c)(2)(B).
``(B) Owner.--
``(i) In general.--Except as provided in
clause (ii), the term `owner'--
``(I) has the same meaning as in
section 983(d)(6); and
``(II) does not include any foreign
bank or other financial institution
acting as an intermediary in the
transfer of funds into the interbank
account and having no ownership
interest in the funds sought to be
forfeited.
``(ii) Exception.--The foreign bank may be
considered the `owner' of the funds (and no
other person shall qualify as the owner of such
funds) only if--
``(I) the basis for the forfeiture
action is wrongdoing committed by the
foreign bank; or
``(II) the foreign bank
establishes, by a preponderance of the
evidence, that prior to the restraint,
seizure, or arrest of the funds, the
foreign bank had discharged all or part
of its obligation to the prior owner of
the funds, in which case the foreign
bank shall be deemed the owner of the
funds to the extent of such discharged
obligation.''.
(b) Bank Records.--Section 5318 of title 31, United States Code, is
amended by adding at the end the following:
``(i) Bank Records Related to Anti-Money Laundering Programs.--
``(1) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Appropriate federal banking agency.--The term
`appropriate Federal banking agency' has the same
meaning as in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813).
``(B) Incorporated terms.--The terms `correspondent
account', `covered financial institution', and `foreign
bank' have the same meanings as in section 5318A.
``(2) 48-hour rule.--Not later than 48 hours after
receiving a request by an appropriate Federal banking agency
for information related to anti-money laundering compliance by
a covered financial institution or a customer of such
institution, a covered financial institution shall provide to
the appropriate Federal banking agency, or make available at a
location specified by the representative of the appropriate
Federal banking agency, information and account documentation
for any account opened, maintained, administered or managed in
the United States by the covered financial institution.
``(3) Foreign bank records.--
``(A) Summons or subpoena of records.--
``(i) In general.--The Secretary or the
Attorney General may issue a summons or
subpoena to any foreign bank that maintains a
correspondent account in the United States and
request records related to such correspondent
account.
``(ii) Service of summons or subpoena.--A
summons or subpoena referred to in clause (i)
may be served on the foreign bank in the United
States if the foreign bank has a representative
in the United States, or in a foreign country
pursuant to any mutual legal assistance treaty,
multilateral agreement, or other request for
international law enforcement assistance.
``(B) Acceptance of service.--
``(i) Maintaining records in the united
states.--Any covered financial institution
which maintains a correspondent account in the United States for a
foreign bank shall maintain records in the United States identifying
the owners of such foreign bank and the name and address of a person
who resides in the United States and is authorized to accept service of
legal process for records regarding the correspondent account.
``(ii) Law enforcement request.--Upon
receipt of a written request from a Federal law
enforcement officer for information required to
be maintained under this paragraph, the covered
financial institution shall provide the
information to the requesting officer not later
than 7 days after receipt of the request.
``(C) Termination of correspondent relationship.--
``(i) Termination upon receipt of notice.--
A covered financial institution shall terminate
any correspondent relationship with a foreign
bank not later than 10 days after receipt of
written notice from the Secretary or the
Attorney General that the foreign bank has
failed--
``(I) to comply with a summons or
subpoena issued under subparagraph (A);
or
``(II) to initiate proceedings in a
United States court contesting such
summons or subpoena.
``(ii) Limitation on liability.--A covered
financial institution shall not be liable to
any person in any court or arbitration
proceeding for terminating a correspondent
relationship in accordance with this
subsection.
``(iii) Failure to terminate
relationship.--Failure to terminate a
correspondent relationship in accordance with
this subsection shall render the covered
financial institution liable for a civil
penalty of up to $10,000 per day until the
correspondent relationship is so terminated.''.
(c) Authority To Order Convicted Criminal To Return Property
Located Abroad.--
(1) Forfeiture of substitute property.--Section 413 of the
Controlled Substances Act (21 U.S.C. 853) is amended by
striking subsection (p) and inserting the following:
``(p) Forfeiture of Substitute Property.--
``(1) In general.--Paragraph (2) of this subsection shall
apply, if any property described in subsection (a), as a result
of any act or omission of the defendant--
``(A) cannot be located upon the exercise of due
diligence;
``(B) has been transferred or sold to, or deposited
with, a third party;
``(C) has been placed beyond the jurisdiction of
the court;
``(D) has been substantially diminished in value;
or
``(E) has been commingled with other property which
cannot be divided without difficulty.
``(2) Substitute property.--In any case described in any of
subparagraphs (A) through (E) of paragraph (1), the court shall
order the forfeiture of any other property of the defendant, up
to the value of any property described in subparagraphs (A)
through (E) of paragraph (1), as applicable.
``(3) Return of property to jurisdiction.--In the case of
property described in paragraph (1)(C), the court may, in
addition to any other action authorized by this subsection,
order the defendant to return the property to the jurisdiction
of the court so that the property may be seized and
forfeited.''.
(2) Protective orders.--Section 413(e) of the Controlled
Substances Act (21 U.S.C. 853(e)) is amended by adding at the
end the following:
``(4) Order to repatriate and deposit.--
``(A) In general.--Pursuant to its authority to
enter a pretrial restraining order under this section,
including its authority to restrain any property
forfeitable as substitute assets, the court may order a
defendant to repatriate any property that may be seized
and forfeited, and to deposit that property pending
trial in the registry of the court, or with the United
States Marshals Service or the Secretary of the
Treasury, in an interest-bearing account, if
appropriate.
``(B) Failure to comply.--Failure to comply with an
order under this subsection, or an order to repatriate
property under subsection (p), shall be punishable as a
civil or criminal contempt of court, and may also
result in an enhancement of the sentence of the
defendant under the obstruction of justice provision of
the Federal Sentencing Guidelines.''.
TITLE IV--ANTICORRUPTION MEASURES
SEC. 401. CORRUPTION OF FOREIGN GOVERNMENTS AND RULING ELITES.
It is the sense of the Congress that, in deliberations between the
United States Government and any other country on money laundering and
corruption issues, the United States Government should--
(1) emphasize an approach that addresses not only the
laundering of the proceeds of traditional criminal activity but
also the increasingly endemic problem of governmental
corruption and the corruption of ruling elites;
(2) encourage the enactment and enforcement of laws in such
country to prevent money laundering and systemic corruption;
(3) make clear that the United States will take all steps
necessary to identify the proceeds of foreign government
corruption which have been deposited in United States financial
institutions and return such proceeds to the citizens of the
country to whom such assets belong; and
(4) advance policies and measures to promote good
government and to prevent and reduce corruption and money
laundering, including through instructions to the United States
Executive Director of each international financial institution
(as defined in section 1701(c) of the International Financial
Institutions Act) to advocate such policies as a systematic
element of economic reform programs and advice to member
governments.
SEC. 402. SUPPORT FOR THE FINANCIAL ACTION TASK FORCE ON MONEY
LAUNDERING.
It is the sense of the Congress that--
(1) the United States should continue to actively and
publicly support the objectives of the Financial Action Task
Force on Money Laundering (hereafter in this section referred
to as the ``FATF'') with regard to combating international
money laundering;
(2) the FATF should identify noncooperative jurisdictions
in as expeditious a manner as possible and publicly release a
list directly naming those jurisdictions identified;
(3) the United States should support the public release of
the list naming noncooperative jurisdictions identified by the
FATF;
(4) the United States should encourage the adoption of the
necessary international action to encourage compliance by the
identified noncooperative jurisdictions; and
(5) the United States should take the necessary
countermeasures to protect the United States economy against
money of unlawful origin and encourage other nations to do the
same.
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