[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2979 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2979

 To enhance the ability of law enforcement 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 the Judiciary, and in addition to the Committees on Ways 
and Means, Financial Services, and Energy and Commerce, 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 enhance the ability of law enforcement 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.

    This Act may be cited as the ``Money Laundering Act of 2001''.

SEC. 2. TABLE OF CONTENTS.

    The table of sections for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Illegal money transmitting businesses.
Sec. 4. Long-arm jurisdiction over foreign money launderers.
Sec. 5. Laundering money through a foreign bank.
Sec. 6. Specified unlawful activity for money laundering.
Sec. 7. Criminal forfeiture for money laundering conspiracies.
Sec. 8. Subpoenas for bank records.
Sec. 9. Charging money laundering as a course of conduct.
Sec. 10. Venue in money laundering cases.
Sec. 11. Technical amendment to restore wiretap authority for certain 
                            money laundering offenses.
Sec. 12. Knowledge that the property is the proceeds of a specific 
                            felony.
Sec. 13. Money purchased on the black market.
Sec. 14. Money laundering transactions; commingled accounts.
Sec. 15. Fungible property in bank accounts.
Sec. 16. Discovery procedure for locating laundered money.
Sec. 17. Repatriation of property placed beyond the jurisdiction of the 
                            court.
Sec. 18. Laundering the proceeds of terrorism.
Sec. 19. Bulk cash smuggling.
Sec. 20. Currency couriers.
Sec. 21. Violations of section 6050I of the Internal Revenue Code of 
                            1986.
Sec. 22. Proceeds of foreign crimes.
Sec. 23. Authorization to share recovered property with cooperating 
                            foreign governments.
Sec. 24. Recovery of criminal proceeds from third parties.
Sec. 25. Criminal forfeiture of property in government custody.
Sec. 26. Restraint of property subject to criminal forfeiture.
Sec. 27. Non-abatement of forfeiture when defendant dies pending 
                            appeal.
Sec. 28. Transfer of reporting requirements from section 6050I of the 
                            Internal Revenue Code of 1986 to title 31, 
                            United States Code.
Sec. 29. Penalties for violations of geographic targeting orders and 
                            certain record keeping requirements.
Sec. 30. Exclusion of aliens involved in money laundering.
Sec. 31. Miscellaneous minor and technical amendments.
Sec. 32. Additional minor amendments.
Sec. 33. Availability of tax records.
Sec. 34. Investigative subpoenas.
Sec. 35. Collection of criminal forfeiture judgment.
Sec. 36. Standing to contest forfeiture of funds deposited into foreign 
                            bank that has a correspondent account in 
                            the United States.
Sec. 37. Subpoenas for records regarding funds in correspondent bank 
                            accounts.
Sec. 38. Corporation represented by a fugitive.
Sec. 39. Enforcement of foreign judgment.

SEC. 3. ILLEGAL MONEY TRANSMITTING BUSINESSES.

    (a) Scienter Requirement for Section 1960 Violation.--Section 1960 
of title 18, United States Code, is amended by adding at the end the 
following new section:
    ``(c) For the purposes of proving a violation of this section 
involving an illegal money transmitting business as defined in 
subsection (b)(1)(A) or (b)(1)(B), 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, failed to comply with 
the money transmitting business registration requirements of 31 U.S.C. 
5330 or the regulations thereunder, or both. It shall not be necessary 
to show that the defendant knew that the operation of such a business 
without the required license or registration was an offense punishable 
as a felony or misdemeanor.''.
    (b) Seizure of Illegally Transmitted Funds.--Section 981(a)(1)(A) 
of title 18, United States Code, is amended by striking ``or 1957'' and 
inserting 
``, 1957 or 1960''.

SEC. 4. LONG-ARM JURISDICTION OVER FOREIGN MONEY LAUNDERERS.

    Section 1956(b) of title 18, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (3) by inserting ``, or section 1957'' after ``or (a)(3)''; 
        and
            (4) by adding at the end the following:
            ``(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 
        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
                    ``(A) the foreign person commits an offense under 
                subsection (a) involving a financial transaction that 
                occurs in whole or in part in the United States;
                    ``(B) the foreign person converts to 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
                    ``(C) the foreign person 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. 5. 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. 6. 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 the following after section 48:

``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 Chapter Analysis for Chapter 3 of title 18, United 
        States Code, is amended by inserting ``49. Definition of 
        wildlife protection offense'' after the analysis for section 
        48.

SEC. 7. 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. 8. 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. 9. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.

    Section 1956(h) of title 18, United States Code, is amended--
            (1) by inserting ``(1)'' before ``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. 10. 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) Except as provided in paragraph (2), a prosecution 
        for an offense under this section or section 1957 may be 
        brought in--
                    ``(A) any district in which the financial or 
                monetary transaction is conducted, or
                    ``(B) any district where a prosecution for the 
                underlying specified unlawful activity could be 
                brought, if the defendant participated in the transfer 
                of the proceeds of the specified unlawful activity from 
                that district to the district where the financial or 
                monetary transaction is conducted.
            ``(2) A prosecution for an attempt or conspiracy offense 
        under this section or section 1957 may be brought in the 
        district where venue would lie for the completed offense under 
        paragraph (1), or in any other district where an act in 
        furtherance of the attempt or conspiracy took place.
            ``(3) For purposes of this section, a transfer of funds 
        from one place to another, by wire or any other means, shall 
        constitute a single, continuing transaction. Any person who 
        conducts (as that term is defined in subsection (c)(2)) any 
        portion of the transaction may be charged in any district in 
        which the transaction takes place.''.

SEC. 11. 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 ``a violation of section 5322 of title 31, United States Code 
(dealing with the reporting of currency transactions)'' and inserting 
``a violation of section 5322 or 5324 of title 31, United States Code 
(dealing with the reporting and illegal structuring of currency 
transactions)''.

SEC. 12. KNOWLEDGE THAT THE PROPERTY IS THE PROCEEDS OF A SPECIFIC 
              FELONY.

    (a) Proceeds of a Felony.--Section 1956(c)(1) of title 18, United 
States Code, is amended by inserting ``, and regardless of whether or 
not the person knew that the activity constituted a felony'' before the 
semicolon at the end.
    (b) Intent to Conceal or Disguise.--Sections 1956(a)(1)(B)(i) and 
1956(a)(2)(B)(i) are amended by striking ``specified unlawful 
activity'' and inserting ``some form of unlawful activity''.

SEC. 13. MONEY PURCHASED ON THE BLACK MARKET.

    (a) In General.--Section 981(a) of title 18, United States Code, is 
amended by adding at the end the following:
            ``(3) A person asserting an innocent owner defense under 
        section 983(d) to the forfeiture of currency, monetary 
        instruments or funds purchased or received from a money broker 
        must be a bona fide purchaser for value without reason to know 
        that the currency, monetary instruments or funds were subject 
        to forfeiture, and must establish that such person took all 
        reasonable affirmative steps to determine the source of the 
        currency, monetary instruments or funds, or to verify that the 
        currency, monetary instruments or funds were not derived from 
        illegal activity.
            ``(4) For purposes of paragraph (3)--
                    ``(A) the term `money broker' means any person who 
                sells or exchanges currency, monetary instruments or 
                funds, either in the United States or in a foreign 
                country, either independently, or through any parallel 
                market, black market, casa de cambio, or other currency 
                exchange business;
                    ``(B) a person receives money from a money broker 
                if the person provides goods or services to a customer 
                and receives payment for such goods or services from a 
                money broker or a person acting on behalf of a money 
                broker;
                    ``(C) what constitutes `all reasonable affirmative 
                steps' depends on the facts and circumstances 
                surrounding the transaction, but if the money broker is 
                a financial institution, as defined in section 20 of 
                this title, the purchaser takes `all reasonable 
                affirmative steps' if the purchaser conducts the 
                transaction at the financial institution during normal 
                business hours in an arms-length transaction and has no 
                reason to know that the currency, monetary instruments, 
                or funds were derived from or used to commit any 
                unlawful activity.''.
    (b) Application.--The amendments made by this section shall apply 
to any case pending on the effective date of this Act.

SEC. 14. MONEY LAUNDERING TRANSACTIONS; COMMINGLED ACCOUNTS.

    (a) Section 1956.--Section 1956 of title 18, United States Code, is 
amended by adding at the end the following new subsection:
    ``(j) A transaction, transportation, transmission, or transfer of 
funds shall be considered for the purposes of this section to be one 
involving the proceeds of specified unlawful activity, or property 
represented to be the proceeds of specified unlawful activity, if the 
transaction, transportation, transmission, or transfer involves--
            ``(1) funds directly traceable to the specified unlawful 
        activity, or represented to be directly traceable to the 
        specified unlawful activity;
            ``(2) a bank account in which the proceeds of specified 
        unlawful activity, or property represented to be the proceeds 
        of specified unlawful activity, have been commingled with other 
        funds; or
            ``(3) 2 or more bank accounts, where the proceeds of 
        specified unlawful activity, or property represented to be the 
        proceeds of specified unlawful activity, are deposited into 1 
        bank account and there is a related contemporaneous or 
        subsequent withdrawal from, or debit to, another bank account 
        controlled by the same person, or by a person acting in concert 
        with that person.''.
    (b) Section 1957.--Section 1957(f) of title 18, United States Code, 
is amended by inserting after paragraph (3) the following new 
paragraph:
            ``(4) the term `monetary transaction in criminally derived 
        property that is of a value greater than $10,000' includes--
                    ``(A) a monetary transaction involving the 
                transfer, withdrawal, encumbrance or other disposition 
                of more than $10,000 from a bank account in which more 
                than $10,000 in proceeds of specified unlawful activity 
                have been commingled with other funds;
                    ``(B) a series of monetary transactions in amounts 
                under $10,000 that exceed $10,000 in the aggregate and 
                that are closely related to each other in terms of such 
                factors as time, the identity of the parties involved, 
                the nature and purpose of the transactions and the 
                manner in which they are conducted; and
                    ``(C) any financial transaction described in 
                Section 1956(j)(3) that involves more than $10,000 in 
                proceeds of specified unlawful activity.''.
    (c) Technical Amendments.--
            (1) Section 1956(c)(7)(F) of title 18, United States Code, 
        is amended by inserting ``, as defined in section 24'' before 
        the period.
            (2) Section 1957 of title 18, United States Code, is 
        amended--
                    (A) in subsection (a), by striking ``engages or 
                attempts to engage in'' and inserting ``conducts or 
                attempts to conduct'', and
                    (B) in subsection (f), by inserting after paragraph 
                (3) the following new paragraph:
            ``(4) the term `conducts' has the same meaning as it does 
        for purposes of Section 1956 of this title.''.

SEC. 15. 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 new 
subsection:
    ``(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. 16. DISCOVERY PROCEDURE FOR LOCATING LAUNDERED MONEY.

    Section 413(m) of the Controlled Substances Act (21 U.S.C. 853(m)) 
is amended by inserting before the period at the end the following: 
``to the extent that the provisions of the Rule are consistent with the 
purposes for which discovery is conducted under this subsection. 
Because this subsection applies only to matters occurring after the 
defendant has been convicted and the property of the defendant has been 
declared forfeited, the provisions of Rule 15 requiring the presence of 
the defendant at the deposition or a waiver by the defendant of a right 
to be present shall not apply''.

SEC. 17. REPATRIATION OF PROPERTY PLACED BEYOND THE JURISDICTION OF THE 
              COURT.

    (a) Criminal Forfeiture.--Section 413(p) of the Controlled 
Substances Act (21 U.S.C. 853(p)) is amended by adding at the end the 
following: ``In the case of property described in paragraph (3), the 
court may, in addition, order the defendant to return the property to 
the jurisdiction of the court so that it may be seized and 
forfeited.''.
    (b) Pretrial Restraining Order.--Section 413(e) of the Controlled 
Substances Act (21 U.S.C. 853(e)) is amended by adding at the end the 
following:
            ``(4) 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 also order the defendant to repatriate any property 
        subject to forfeiture pending trial, and to deposit that 
        property in the registry of the court, or with the United 
        States Marshals Service or the Secretary of the Treasury, in an 
        interest-bearing account. 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 for the offense giving rise to the forfeiture under 
        the obstruction of justice provision of section 3C1.1 of the 
        Federal Sentencing Guidelines.''.

SEC. 18. LAUNDERING THE PROCEEDS OF TERRORISM.

    Section 1956(c)(7)(D) of title 18, United States Code, is amended 
by inserting ``or 2339B'' after ``2339A''.

SEC. 19. BULK CASH SMUGGLING.

    (a) Findings.--The Congress hereby finds the following:
            (1) Effective enforcement of the currency reporting 
        requirements of subchapter II of chapter 53 of title 31, United 
        States Code, and the regulations prescribed under such 
        subchapter, has forced drug dealers and other criminals engaged 
        in cash-based businesses to avoid using traditional financial 
        institutions.
            (2) In their effort to avoid using traditional financial 
        institutions, drug dealers and other criminals are forced to 
        move large quantities of currency in bulk form to and through 
        the airports, border crossings and other ports of entry where 
        it can be smuggled out of the United States and placed in a 
        foreign financial institution or sold on the Black Market.
            (3) The transportation and smuggling of cash in bulk form 
        may now be the most common form of money laundering, and the 
        movement of large sums of cash is one of the most reliable 
        warning signs of drug trafficking, terrorism, money laundering, 
        racketeering, tax evasion and similar crimes.
            (4) The intentional transportation into or out of the 
        United States of large amounts of currency or monetary 
        instruments, in a manner designed to circumvent the mandatory 
        reporting provisions of the subchapter II of chapter 53 of 
        title 31, United States Code, is the equivalent of, and creates 
        the same harm as, the smuggling of goods.
            (5) The arrest and prosecution of bulk cash smugglers are 
        important parts of law enforcement's effort to stop the 
        laundering of criminal proceeds, but the couriers who attempt 
        to smuggle the cash out of the United States are typically low-
        level employees of large criminal organizations, and thus are 
        easily replaced. Accordingly, only the confiscation of the 
        smuggled bulk cash can effectively break the cycle of criminal 
        activity of which the laundering of the bulk cash is a critical 
        part.
            (6) The current penalties for violations of the currency 
        reporting requirements of subchapter II of chapter 53 of title 
        31, United States Code, are insufficient to provide a deterrent 
        to the laundering of criminal proceeds. In particular, in cases 
        where the only criminal violation under current law is a 
        reporting offense, the law does not adequately provide for the 
        confiscation of smuggled currency. In contrast, if the 
        smuggling of bulk cash were itself an offense, the cash could 
        be confiscated as the corpus delicti of the smuggling offense.
    (b) Purpose.--The purposes of this Section are to make the act of 
smuggling bulk cash itself a criminal offense, to authorize forfeiture 
of any smuggled cash and other monetary instruments, together with any 
other property involved in the smuggling offense, to emphasize the 
seriousness of the act of bulk cash smuggling, and to prescribe 
guidelines for determining the amount of property subject to forfeiture 
in various situations.
    (c) 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.

    ``(a) Criminal Offense.--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 his 
person 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). For purposes of this section, `monetary 
instruments' has the meaning set forth in section 5312(a)(3) and the 
regulations prescribed under such section.
    ``(b) Penalty.--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. In addition, the court, in 
imposing sentence, 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. The seizure, restraint and forfeiture of property under 
this section shall be governed by section 413 of the Controlled 
Substances Act. If any property subject to forfeiture 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 
in an amount equal to the value of the unavailable property.
    ``(c) Seizure of Smuggling Cash.--Any property involved in a 
violation of subsection (a), or a conspiracy to commit such violation, 
and any property traceable thereto, may be seized and, subject to 
subsection (d) of this section, forfeited to the United States. 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. 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.--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. 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. Such circumstances 
include, but are not limited to, the following: the value of the 
currency or other monetary instruments involved in the offense; efforts 
by the person committing the offense to structure currency 
transactions, conceal property, or otherwise obstruct justice; and 
whether the offense is part of a pattern of repeated violations of 
Federal law.''.
    (d) Chapter Analysis.--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.''.
    (e) Currency Reporting Violations.--Section 5317(c) of title 31, 
United States Code, is amended to read as follows:
    ``(c) Forfeiture of Property Involved in Certain Offenses.--
            ``(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. Forfeitures under this paragraph 
        shall be governed by the procedures set forth in section 413 of 
        the Controlled Substances Act, and the guidelines set forth in 
        paragraph (3).
            ``(2) Seizure of property.--Any property involved in a 
        violation of section 5313, 5316, or 5324, or any conspiracy to 
        commit such violation, and any property traceable thereto, may 
        be seized and, subject to paragraph (3), 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.
            ``(3) Showing of legitimate source.--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.
            ``(4) Factors considered by the court.--
                    ``(A) In general.--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.
                    ``(B) Certain factors specifically included.--The 
                facts and circumstances considered under subparagraph 
                (A) shall include 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.''.
    (f) 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. 20. CURRENCY COURIERS.

    Section 1957 of title 18, United States Code, is amended by adding 
the following new subsection at the end:
    ``(g) Any person who conceals more than $10,000 in currency on his 
person or 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, a person conceals currency 
``on his person'' if he conceals it in any article of clothing, 
luggage, backpack, or other container that he carries with him.''.

SEC. 21. VIOLATIONS OF SECTION 6050I OF THE INTERNAL REVENUE CODE OF 
              1986.

    Sections 981(a)(1)(A) and 982(a)(1) of title 18, United States 
Code, are amended by inserting ``section 6050I of the Internal Revenue 
Code of 1986 (26 U.S.C. 6050I), or'' after ``in violation of''.

SEC. 22. PROCEEDS OF FOREIGN CRIMES.

    Section 981(a)(1)(B) of title 18, United States Code, is amended to 
read as follows:
                    ``(B) Any property, real or personal, within the 
                jurisdiction of the United States, constituting, 
                derived from, or traceable to, any proceeds obtained 
                directly or indirectly from an offense against a 
                foreign nation, or any property used to facilitate such 
                offense, if--
                            ``(i) the offense involves the manufacture, 
                        importation, sale, or distribution of a 
                        controlled substance (as such term is defined 
                        for the purposes of the Controlled Substances 
                        Act), or any other conduct described in section 
                        1956(c)(7)(B),
                            ``(ii) the offense would be punishable 
                        within the jurisdiction of the foreign nation 
                        by death or imprisonment for a term exceeding 
                        one year, and
                            ``(iii) the offense would be punishable 
                        under the laws of the United States by 
                        imprisonment for a term exceeding one year if 
                        the act or activity constituting the offense 
                        had occurred within the jurisdiction of the 
                        United States.''.

SEC. 23. AUTHORIZATION TO SHARE RECOVERED PROPERTY WITH COOPERATING 
              FOREIGN GOVERNMENTS.

    (a) In General.--Section 981(i)(1) of title 18, United States Code, 
is amended by striking ``this chapter'' and inserting ``any provision 
of Federal law''.
    (b) Conforming Amendment.--Section 511(e)(1) of the Controlled 
Substances Act is amended by striking ``; or'' and all of subparagraph 
(E) and inserting a period.

SEC. 24. RECOVERY OF CRIMINAL PROCEEDS FROM THIRD PARTIES.

    Section 1956(b) of title 18, United States Code, as amended by this 
Act, is further amended by adding the following at the end:
            ``(4) If property involved in a violation of subsection (a) 
        is transferred to a third party who is not a bona fide 
        purchaser for value, the United States may file a civil action 
        against the transferee to recover the property, or a sum of 
        money equal to the value of the property immediately before the 
        transfer, plus interest from the time of the transfer. Venue 
        for such action shall lie in any district in which the 
        violation of subsection (a) took place.''. -

SEC. 25. CRIMINAL FORFEITURE OF PROPERTY IN GOVERNMENT CUSTODY.

    Section 413(f) of the Controlled Substances Act (21 U.S.C. 853(f)) 
is amended by designating the present matter as paragraph (1) and 
adding the following at the end:
            ``(2) If property subject to criminal forfeiture under this 
        section is already in the custody of the United States or any 
        agency thereof, it shall not be necessary to seize or restrain 
        the property for the purpose of criminal forfeiture.
            ``(3) If the seizure warrant is obtained after the property 
        to be seized has been listed in an indictment or criminal 
        information or related bill of particulars, the requirement 
        that the warrant be executed within 10 days under Rule 41, 
        Federal Rules of Criminal Procedure, shall not apply.''

SEC. 26. RESTRAINT OF PROPERTY SUBJECT TO CRIMINAL FORFEITURE.

    Section 413(e)(1) of the Controlled Substances Act (21 U.S.C. 
853(e)(1)) is amended by striking ``(a)'' and inserting ``(a) or (p)''.

SEC. 27. NON-ABATEMENT OF FORFEITURE WHEN DEFENDANT DIES PENDING 
              APPEAL.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding at the end the following new subsection:
    ``(s) Non-abatement of forfeiture order.
    ``An order of forfeiture that has been made part of a criminal 
sentence under this section shall not abate by reason of the death 
thereafter of any or all of the defendants or petitioners or potential 
petitioners, regardless of any appeal that may be pending at the time 
of death.''.

SEC. 28. TRANSFER OF REPORTING REQUIREMENTS FROM SECTION 6050I OF THE 
              INTERNAL REVENUE CODE OF 1986 TO TITLE 31, UNITED STATES 
              CODE.

    (a) Reenactment of Section 6050I.--Subchapter II of chapter 53 of 
title 31, United States Code, is amended by inserting after section 
5331 (as added by this Act) the following new section:

``SEC. 5332. REPORTS RELATING TO COINS AND CURRENCY RECEIVED IN 
              NONFINANCIAL TRADE OR BUSINESS.

    ``(a) Coin and Currency Receipts of More Than $10,000.--Any 
person--
            ``(1) who is engaged in a trade or business; and
            ``(2) who, in the course of such trade or business, 
        receives more than $10,000 in coins or currency in 1 
        transaction (or 2 or more related transactions),
shall file a report described in subsection (b) with respect to such 
transaction (or related transactions) at such time as the Secretary may 
by regulations prescribe.
    ``(b) Form and Manner of Reports.--A report is described in this 
subsection if such report--
            ``(1) is in such form as the Secretary may prescribe;
            ``(2) contains--
                    ``(A) the name, address, and taxpayer 
                identification number of the person from whom the coins 
                or currency was received;
                    ``(B) the amount of coins or currency received;
                    ``(C) the date and nature of the transaction; and
                    ``(D) such other information as the Secretary may 
                prescribe.
    ``(c) Exceptions.--
            ``(1) Amounts received by financial institutions.--
        Subsection (a) shall not apply to amounts received in a 
        transaction reported under section 5313 and regulations 
        prescribed under such section.
            ``(2) Transactions occurring outside the united states.--
        Except to the extent provided in regulations prescribed by the 
        Secretary, subsection (a) shall not apply to any transaction if 
        the entire transaction occurs outside the United States.
    ``(d) Currency Includes Foreign Currency and Certain Monetary 
Instruments.--
            ``(1) In general.--For purposes of this section, the term 
        `currency' includes--
                    ``(A) foreign currency; and
                    ``(B) to the extent provided in regulations 
                prescribed by the Secretary, any monetary instrument 
                (whether or not in bearer form) with a face amount of 
                not more than $10,000.
            ``(2) Scope of application.--Paragraph (1)(B) shall not 
        apply to any check drawn on the account of the writer in a 
        financial institution referred to in subparagraph (A), (B), 
        (C), (D), (E), (F), (G), (J), (K), (R), or (S) of section 
        5312(a)(2).
    ``(e) Coins or Currency Received by Criminal Court Clerks.--
            ``(1) In general.--Every clerk of a Federal or State 
        criminal court who receives more than $10,000 in coins or 
        currency as bail for any individual charged with a specified 
        criminal offense shall file a report described in paragraph (2) 
        (at such time as the Secretary may by regulations prescribe) 
        with respect to the receipt of such bail.
            ``(2) Report.--A report is described in this paragraph if 
        such report--
                    ``(A) is in such form as the Secretary may 
                prescribe; and
                    ``(B) contains--
                            ``(i) the name, address, and taxpayer 
                        identification number of--
                                    ``(I) the individual charged with 
                                the specified criminal offense; and
                                    ``(II) each person posting the bail 
                                (other than a person licensed as a bail 
                                bondsman);
                            ``(ii) the amount of coins or currency 
                        received;
                            ``(iii) the date the coins or currency was 
                        received; and
                            ``(iv) such other information as the 
                        Secretary may prescribe.
            ``(3) Specified criminal offense.--For purposes of this 
        subsection, the term `specified criminal offense' means--`(A) 
        any Federal criminal offense involving a controlled substance; 
        `(B) racketeering (as defined in section 1951, 1952, or 1955 of 
        title 18, United States Code); `(C) money laundering (as 
        defined in section 1956, 1957 or 1960 of such title); and `(D) 
        any State criminal offense substantially similar to an offense 
        described in subparagraph (A), (B), or (C).
            ``(4) Information to federal prosecutors.--Each clerk 
        required to include in a report under paragraph (1) the 
        information described in paragraph (2)(B) with respect to an 
        individual described in paragraph (2)(B)(i)(I) shall furnish 
        (at such time as the Secretary may by regulations prescribe) a 
        written statement showing such information to the United States 
        Attorney for the jurisdiction in which such individual resides 
        and the jurisdiction in which the specified criminal offense 
        occurred.
            ``(5) Information to payors of bail.--Each clerk required 
        to file a report under paragraph (1) shall furnish (at such 
        time as the Secretary may by regulations prescribe) to each 
        person whose name is required to be set forth in such report by 
        reason of paragraph (2)(B)(i)(II) a written statement showing--
                    ``(A) the name and address of the clerk's office 
                required to file the report; and
                    ``(B) the aggregate amount of coins and currency 
                described in paragraph (1) received by such clerk.''.
    (b) Prohibition on Structuring Transactions.--
            (1) In general.--Section 5324 of title 31, United States 
        Code, is amended--
                    (A) by redesignating subsections (b) and (c) as 
                subsections (c) and (d), respectively; and
                    (B) by inserting after subsection (a) the following 
                new subsection:
    ``(b) Domestic Coin and Currency Transactions Involving 
Nonfinancial Trades or Businesses.--No person shall for the purpose of 
evading the report requirements of section 5332 or any regulation 
prescribed under such section--
            ``(1) cause or attempt to cause a nonfinancial trade or 
        business to fail to file a report required under section 5332 
        or any regulation prescribed under such section;
            ``(2) cause or attempt to cause a nonfinancial trade or 
        business to file a report required under section 5332 or any 
        regulation prescribed under such section that contains a 
        material omission or misstatement of fact; or
            ``(3) structure or assist in structuring, or attempt to 
        structure or assist in structuring, any transaction with 1 or 
        more nonfinancial trades or businesses.''.
            (2) Technical and conforming amendments.--
                    (A) The heading for subsection (a) of section 5324 
                of title 31, United States Code, is amended by 
                inserting ``Involving Financial Institutions'' after 
                ``Transactions'.
                    (B) Section 5317(c) of title 31, United States 
                Code, is amended by striking ``5324(b)'' and inserting 
                ``5324(c)''.
    (c) Definition of Nonfinancial Trade or Business.--
            (1) In general.--Section 5312(a) of title 31, United States 
        Code, is amended--
                    (A) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                    (B) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) Nonfinancial trade or business.--The term 
        `nonfinancial trade or business' means any trade or business 
        other than a financial institution that is subject to the 
        reporting requirements of section 5313 and regulations 
        prescribed under such section.''.
            (2) Technical and conforming amendments.--
                    (A) Section 5312(a)(3)(C) of title 31, United 
                States Code, is amended by striking ``section 5316,'' 
                and inserting ``sections 5332 and 5316,''.
                    (B) Subsections (a) through (f) of section 5318 of 
                title 31, United States Code, and sections 5321, 5326, 
                and 5328 of such title are each amended--
                            (i) by inserting `or nonfinancial trade or 
                        business' after `financial institution' each 
                        place such term appears; and
                            (ii) by inserting `or nonfinancial trades 
                        or businesses' after `financial institutions' 
                        each place such term appears.
                    (C) Section 981(a)(1)(A) of title 18, United States 
                Code, is amended by striking `5313(a) or 5324(a) of 
                title 31,' and inserting `5313(a) or 5332 of title 31, 
                or subsection (a) or (b) of section 5324 of such 
                title,'.
                    (D) Section 982(a)(1) of title 18, United States 
                Code, is amended by inserting `5332,' after `5313(a),'.
    (d) Repeal of Duplicate Provision.--Section 6050I of the Internal 
Revenue Code of 1986 is repealed.
    (e) Clerical Amendments.--The tables of sections for chapter 53 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 5331 the following new item:

``5332. Reports relating to coins and currency received in nonfinancial 
                            trade or business.''.
            (2) Internal revenue code of 1986.--
                    (A) The table of sections for subpart B of part III 
                of subchapter A of chapter 61 of the Internal Revenue 
                Code of 1986 is amended by striking the item relating 
                to section 6050I.
                    (B)(i) Subsection (l) of section 6103 of such Code 
                is amended by striking paragraph (15).
                    (ii) Subparagraph (A) of section 6103(p)(3) of such 
                Code is amended by striking ``(15),''.
                    (iii) Paragraph (4) of section 6103(p) of such Code 
                is amended by striking in the material preceding 
                subparagraph (A) ``(12)'' and all that follows through 
                ``(16)'' and inserting ``(12), or (16)''.
                    (iv) Clause (ii) of section 6103(p)(4)(F) of such 
                Code is amended by striking `(14), or (15)'' and 
                inserting ``or (14)''.
                    (C) Paragraph (2) of section 6721(e) of such Code 
                is amended--
                            (i) in subparagraph (A) by striking 
                        ``6050I,'' and by adding ``or'' at the end,
                            (ii) by striking ``or'' at the end of 
                        subparagraph (B) and inserting ``and'', and
                            (iii) by striking subparagraph (C).
                    (D) Subparagraph (B) of section 6724(d)(1) of such 
                Code is amended by striking clause (iv) and by 
                redesignating the succeeding clauses accordingly.
                    (E) Paragraph (2) of section 6724(d) of such Code 
                is amended by striking subparagraph (K) and by 
                redesignating the succeeding subparagraphs accordingly.
                    (F) Section 7203 of such Code is amended by 
                striking the last sentence.
    (f) Regulations; Effective Date.--
            (1) Regulations.--Regulations which the Secretary of the 
        Treasury determines are necessary to implement this section 
        shall be published in final form before the end of the 6-month 
        period beginning on the date of the enactment of this Act.
            (2) Effective date.--The amendments made by this section 
        shall take effect immediately upon enactment, except that the 
        reporting obligations mandated by section 6050I of the Internal 
        Revenue Code of 1986 shall not be repealed until the 
        regulations required under section 5332 of title 31, United 
        States Code, become effective.

SEC. 29. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING ORDERS AND 
              CERTAIN RECORD KEEPING REQUIREMENTS.

    (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 ``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 
Record Keeping 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 requirements imposed by any order issued under 
        section 5326, or the record keeping requirements imposed by any 
        regulation prescribed under section 21 of the Federal Deposit 
        Insurance Act or section 123 of Public Law 91-508--''; and
            (3) in paragraphs (1) and (2), by inserting 
        ``, to file a report required by any 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'' each place 
        that term appears.
    (d) Increase in Civil Penalties for Violation of Certain Record 
Keeping Requirements.--
            (1) Federal deposit insurance act.--Section 21(j)(1) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1829b(j)(1)) is 
        amended by striking ``$10,000'' and inserting ``the greater 
        of--
                    ``(A) the amount (not to exceed $100,000) involved 
                in the transaction (if any) with respect to which the 
                violation occurred; or
                    ``(B) $25,000''.
            (2) Public law 91-508.--Section 125(a) of Public Law 91-508 
        (12 U.S.C. 1955(a)) is amended by striking ``$10,000'' and 
        inserting ``the greater of--
            ``(1) the amount (not to exceed $100,000) involved in the 
        transaction (if any) with respect to which the violation 
        occurred; or
            ``(2) $25,000.''.
    (e) Criminal Penalties for Violation of Certain Record Keeping 
Requirements.--
            (1) Section 126.--Section 126 of Public Law 91-508 (12 
        U.S.C. 1956) is amended to read as follows:

``SEC. 126. CRIMINAL PENALTY.

    ``A person that willfully violates this chapter, section 21 of the 
Federal Deposit Insurance Act, or a regulation prescribed under this 
chapter or that section 21, shall be fined not more than $250,000, or 
imprisoned for not more than 5 years, or both.''.
            (2) Section 127.--Section 127 of Public Law 91-508 (12 
        U.S.C. 1957) is amended to read as follows:

``SEC. 127. ADDITIONAL CRIMINAL PENALTY IN CERTAIN CASES.

    ``A person that willfully violates this chapter, section 21 of the 
Federal Deposit Insurance Act, or a regulation prescribed under this 
chapter or that section 21, 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 not more than 
$500,000, imprisoned for not more than 10 years, or both.''.

SEC. 30. EXCLUSION OF ALIENS INVOLVED IN MONEY LAUNDERING.

    (a) In General.--Section 212 of the Immigration and Nationality Act 
of 1952, as amended (8 U.S.C. 1182), is amended in subsection (a)(2)--
            (1) by redesignating subparagraphs (D), (E) and (F) as 
        subparagraphs (F), (G) and (I), respectively; and
            (2) by inserting after subparagraph (C) the following new 
        subparagraphs:
                    ``(D) Money laundering activities.--Any alien who 
                the consular officer or the Attorney General knows or 
                has reason to believe--
                            ``(i) is or has been engaged in activities 
                        which if engaged in within the United States 
                        would constitute a violation of the money 
                        laundering provisions of title 18, United 
                        States Code, Section 1956 or 1957, or has been 
                        a knowing assister, abettor, conspirator, or 
                        colluder with others in any such illicit 
                        activity; or
                            ``(ii) is the spouse, son or daughter of an 
                        alien inadmissible under clause (i), has, 
                        within the previous five years, obtained any 
                        financial or other benefit from such illicit 
                        activity of that alien, and knew or reasonably 
                        should have known that the financial or other 
                        benefit was the product of such illicit 
                        activity, is inadmissible.
    (b) Conforming amendment.--Section 212(h)(1)(A)(i) of the 
Immigration and Nationality Act of 1952, as amended (8 U.S.C. 1182), is 
amended by striking ``(D)(i) or (D)(ii)'' and inserting ``(E)(i) or 
(E)(ii)''.

SEC. 31. MISCELLANEOUS MINOR AND TECHNICAL AMENDMENTS.

    (a) Criminal Forfeiture.--Section 982(b) of title 18, United States 
Code, is amended in subsection (b)(2), by striking ``The substitution'' 
and inserting ``With respect to a forfeiture under subsection (a)(1), 
the substitution''.
    (b) Definition of Financial Institution.--Section 5312(a)(2) of 
title 31, United States Code, is amended by redesignating subparagraphs 
(Y) and (Z) as (Z) and (AA), respectively, and by inserting the 
following new subparagraph after subparagraph (X):
                    ``(Y) a bail bondsman;''.
    (c) Technical Amendment.--Section 981(d) of title 18, United States 
Code, is amended by striking ``sale of this section'' and inserting 
``sale of such property''.
    (d) Obstruction of Justice.--Section 1510(b)(3)(B) of title 18, 
United States Code, is amended by striking ``or'' the first time it 
appears and inserting ``, a subpoena issued pursuant to 28 U.S.C. 1782, 
or''.
    (e) Suspicious Activity Reports.--Section 5319 of title 31, United 
States Code, is amended by striking ``or 5316'' and inserting ``5316, 
or 5318''.

SEC. 32. ADDITIONAL MINOR AMENDMENTS.

    (a) Restraint of Proceeds of Foreign Crime.--Section 981(b)(4) of 
title 18, United States Code, is amended--
            (1) by adding the following after subparagraph (B):
                    ``(C) If property subject to restraint under 
                subparagraph (A) is located in more than one district, 
                a court in any district in which the property is 
                located may enter an order under subparagraph (A) 
                regarding property located in that district and any 
                other district.''; and
            (2) in subparagraph (A), by striking ``an offense that 
        would give rise to the forfeiture of property in the United 
        States under this section or under the Controlled Substances 
        Act'' and inserting ``conduct that may be the basis for a 
        forfeiture action filed in a Federal court under this section 
        or under the Controlled Substances Act or that would be the 
        basis for a foreign forfeiture judgment enforceable in the 
        United States under 28 U.S.C. Section 2467,''.
    (b) Venue for Prisoner Challenges to Seizure of Crime Proceeds.--
Section 983(e) of title 18, United States Code, is amended--
            (1) in paragraph (3), by adding the following at the end: 
        ``If the person filing the motion was a defendant in a criminal 
        prosecution related to the seizure of the property, the motion 
        must be filed in the district where such prosecution took 
        place, or in the district where the property was seized.''; and
            (2) by adding the following new paragraph at the end:
            ``(6) Any person entitled to written notice in an judicial 
        forfeiture proceeding under a civil forfeiture statute who does 
        not receive such notice may file a motion to set aside the 
        judgment of forfeiture with respect to that person's interest 
        in the property in accordance with the procedures for setting 
        aside a non-judicial forfeiture, as set forth in paragraphs (1) 
        through (5).''.
    (c) Effective Dates.--
            (1) The provisions of Section 983(e), United States Code, 
        shall apply to any motion to set aside a declaration or 
        judgment of forfeiture where such motion is filed on or after 
        August 23, 2000.
            (2) The amendments to Section 981(e)(6) of title 18, United 
        States Code, made by Pub. L. 106-185, 114 Stat. 202 (2000), 
        relating to the restoration of criminally derived property to 
        crime victims, shall apply to all cases pending on August 23, 
        2000, or commenced thereafter, regardless of the date of the 
        offense or the date when the criminally derived property was 
        recovered.
    (d) Real Property.--Section 985(e) of title 18, United States Code, 
is amended by striking ``shall conduct a prompt post-seizure hearing 
during which the property owner shall have an opportunity to contest 
the basis for the seizure'' and inserting ``shall afford the property 
owner an opportunity for a prompt post-seizure hearing to determine 
whether there was probable cause for the seizure''.
    (e) Jurisdiction of Magistrates.--Section 636(a) of title 28, 
United States Code, is amended--
            (1) in paragraph (4), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (5), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(6) all powers and duties conferred or imposed upon the 
        courts by sections 983 and 985 of title 18, United States Code, 
        in connection with civil forfeiture proceedings, but not 
        including the conduct of the trial.''
    (f) Rule 32.2.--Section 2461(c) of title 28, United States Code, is 
amended by striking `` in accordance with the procedures set forth in 
section 413 of the Controlled Substances Act (21 U.S.C. 853), other 
than subsection (d) of that section.'' and inserting ``in accordance 
with those Rules. The procedures set forth in section 413 of the 
Controlled Substances Act (21 U.S.C. 853), other than subsection (d) of 
that section, shall apply to all stages of the criminal forfeiture 
proceeding.''
    (g) Section 3322.--Section 3322(a) of title 18, United States Code, 
is amended by inserting the following before the period: ``, including, 
but not limited to, disclosing such information in a complaint, or in 
an application for a seizure warrant or restraining order, or for use 
at any trial or hearing.''.
    (h) Criminal Information.--Sections 983(a)(3)(B)(ii) and 
983(a)(3)(C) are amended by striking ``criminal indictment'' each time 
it appears and inserting ``criminal indictment or information''.
    (i) Section 981.--Section 981 of title 18, United States Code, is 
amended by adding the following after subsection (j):
    ``(k) The procedural provisions of this section shall apply to any 
civil forfeiture statute, as that term is defined in Section 983(i).''
    (j) Incarcerated Persons.--Section 983(a)(1)(F) is amended by 
inserting the following before the period at the end of the last 
sentence: ``; nor shall the Government be required to return property 
to a person who is incarcerated''.

SEC. 33. AVAILABILITY OF TAX RECORDS.

    Section 6103(i)(1) of the Internal Revenue Code (26 U.S.C. 
6103(i)(1)) is amended--
            (1) in subparagraph (A)(i) by inserting ``or related civil 
        forfeiture'' after ``enforcement of a specifically designated 
        Federal criminal statute''; and
            (2) in subparagraph (B)(iii) by inserting ``or civil 
        forfeiture investigation or proceeding'' after ``Federal 
        criminal investigation or proceeding''.

SEC. 34. INVESTIGATIVE SUBPOENAS.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by adding the following section after section 986:

``SEC. 987. INVESTIGATIVE SUBPOENAS.

    ``(a) At any time before commencement of an action brought under 
any civil forfeiture statute for the civil forfeiture of any property, 
an attorney for the Government may apply to a court of competent 
jurisdiction for an order authorizing the issuance of a subpoena duces 
tecum to produce books, records, and any other documents at any place 
designated by the attorney for the Government.
    ``(b) An application under this section shall include a 
certification by the attorney for the Government that--
            ``(1) the books, records, or other documents sought are 
        relevant to a legitimate civil forfeiture investigation being 
        conducted by a Federal law enforcement agency; and
            ``(2) the Government cannot obtain a grand jury subpoena 
        for such books, records, or other documents, and the reasons 
        therefore.
    ``(c) If the court finds that the requirements of subsection (b) 
are met, it shall issue a subpoena duces tecum as provided in 
subsection (a).
    ``(d) Any books, records, or other information obtained pursuant to 
a subpoena issued under this section shall be subject to the same 
conditions as govern matters occurring before a grand jury under rule 
6(e) of the Federal Rules of Criminal Procedure, and section 3322 of 
this title.
    ``(e) Upon commencement of an action for civil forfeiture arising 
out of or relating to the investigation identified in subsection 
(b)(1), all parties to the proceeding shall be notified of the issuance 
of any subpoena under this section.
    ``(f) Service of a subpoena under this section shall be by 
certified mail. Records produced in response to such a subpoena may be 
produced in person or by mail, common carrier, or such other method as 
may be agreed upon by the attorney for the Government requesting the 
subpoena and the custodian of records. The attorney for the Government 
may require the custodian of records to submit an affidavit certifying 
the authenticity and completeness of the records and explaining the 
omission of any record called for in the subpoena.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 46 of title 18, United States Code, is amended by adding at the 
end the following new item:

``987. Investigative subpoenas.''.
    (c) Fair Credit Reporting Act Amendment.--Section 604(a)(1) of the 
Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is amended by 
inserting before the period at the end ``, or an investigative subpoena 
issued in connection with a civil forfeiture investigation''.
    ``(d) Obstruction of Justice.--Section 1510(b) of title 18, United 
States Code, is amended--
            (1) in paragraph (b)(2), by inserting ``or an investigative 
        subpoena issued pursuant to section 987 of this title'' after 
        ``grand jury subpoena''; and
            (2) in paragraph (b)(3)(C), by inserting ``, an 
        investigative subpoena issued pursuant to section 987 of this 
        title,'' after ``grand jury subpoena''.
    (e) Right to Financial Privacy Act.--Section 3420(b)(1) of title 
12, United States Code, is amended by--
            (1) inserting ``, or an investigative subpoena issued 
        pursuant to section 987 of title 18,'' after ``grand jury 
        subpoena''; and
            (2) inserting ``or to the Government'' after ``to the grand 
        jury''.

SEC. 35. COLLECTION OF CRIMINAL FORFEITURE JUDGMENT.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by added the following subsection after subsection (q):
    ``(r) Collection of criminal forfeiture judgment.
    ``In addition to the authority otherwise provided in this section, 
an order of forfeiture may be enforced--
            ``(1) in the manner provided for the collection and payment 
        of fines in subchapter B of chapter 229 of title 18, United 
        States Code; or
            ``(2) in the same manner as a judgment in a civil 
        action.''.

SEC. 36. STANDING TO CONTEST FORFEITURE OF FUNDS DEPOSITED INTO FOREIGN 
              BANK THAT HAS A CORRESPONDENT ACCOUNT IN THE UNITED 
              STATES.

    Section 981 of title 18, United States Code, is amended by adding 
the following after the last subsection:
    ``(k) Correspondent Bank Accounts.--
            ``(1) For the purpose of a forfeiture under this section or 
        under the Controlled Substances Act, if funds are deposited 
        into a dollar-denominated bank account in a foreign financial 
        institution, and that foreign financial institution has a 
        correspondent account with a financial institution in the 
        United States, the funds deposited into the foreign financial 
        institution (the respondent bank) shall be deemed to have been 
        deposited into the correspondent account in the United States, 
        and any restraining order, seizure warrant, or arrest warrant 
        in rem regarding such funds may be served on the correspondent 
        bank, and funds in the correspondent account up to the value of 
        the funds deposited into the dollar-denominated account in the 
        foreign financial institution may be seized, arrested or 
        restrained.
            ``(2) In the circumstances where paragraph (1) applies, if 
        a forfeiture action is brought against the funds that are 
        seized, arrested, or restrained, it shall not be necessary for 
        the government to establish that such funds are directly 
        traceable to the funds that were deposited into the respondent 
        bank, nor shall it be necessary for the Government to rely on 
        the application of section 984 of this title.
            ``(3) If a forfeiture action is instituted against funds 
        seized, arrested or restrained pursuant to paragraph (1), the 
        owner of the funds, as that term is defined in paragraph (4), 
        may contest the forfeiture by filing a claim pursuant to 
        section 983 of this title.
            ``(4) For purposes of this subsection--
                    ``(A) except as provided in (C), the `owner of the 
                funds' is the `owner,' as that term is defined in 
                section 983(d)(6), whose funds were deposited into the 
                respondent bank;
                    ``(B) If the respondent bank received the funds 
                that are subject to forfeiture from another respondent 
                bank, the `owner of the funds' is the `owner' whose 
                funds were deposited into the first respondent bank, 
                and each intermediary financial institution shall be 
                deemed a respondent bank;
                    ``(C) the respondent bank may be considered the 
                `owner of the funds' only if--
                            ``(i) the basis for the forfeiture action 
                        is wrongdoing committed by the respondent bank, 
                        or
                            ``(ii) the respondent bank establishes, by 
                        a preponderance of the evidence, that prior to 
                        the seizure or arrest of the funds, the 
                        respondent bank discharged all or part its 
                        obligation to the owner of the funds, in which 
                        case the respondent bank will be deemed the 
                        owner of the funds to the extent that such 
                        obligation was satisfied.
                    ``(D) In cases where (C) applies, only the 
                respondent bank may be considered to be the `owner of 
                the funds'.
            ``(5) In this section, `correspondent account' has the same 
        meaning as the term `interbank account' as defined in 18 U.S.C. 
        ``984(c)(2)(B).''.

SEC. 37. SUBPOENAS FOR RECORDS REGARDING FUNDS IN CORRESPONDENT BANK 
              ACCOUNTS.

    (a) In General.--Chapter 53 of title 31, United States Code, is 
amended by inserting after section 5332 (as added by this Act) the 
following new section:

``SEC. 5333. SUBPOENAS FOR RECORDS.

    ``(a) Correspondent Banks.--Any foreign financial institution that 
has a correspondent bank account at a financial institution in the 
United States must designate a person residing in the United States as 
a person authorized to accept a subpoena for bank records or other 
legal process served on the foreign financial institution.
    ``(b) Domestic Financial Institutions With Correspondent Banking 
Relationships.--Any financial institution in the United States that 
maintains a correspondent bank account for a foreign financial 
institution shall maintain records regarding the names and addresses of 
the owners of the foreign financial institution, and the name and 
address of the person who may be served with a subpoena for records 
regarding any funds transferred to or from the correspondent account. 
The U.S. financial institution shall provide such names and addresses 
to a Federal law enforcement officer within 7 days of the receipt of a 
request, in writing, for such records.
    ``(c) Subpoena.--The Attorney General may issue an administrative 
subpoena for records relating to the deposit of any funds into a 
dollar-denominated account in a foreign financial institution that 
maintains a correspondent account at a financial institution in the 
United States. Such subpoena shall be issued in the manner described in 
section 3486 of this title, and may be served on the representative 
designated by the foreign financial institution pursuant to subsection 
(a) to accept legal process 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.
    ``(d) In this section, `correspondent account' has the same meaning 
as the term `interbank account' as defined in section 984(c)(2)(B) of 
title 18, United States Code.''.
    (b) Clerical Amendments.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 5332 (as added by this Act) the following new item:

``5333. Subpoenas for records.''.
    (c) Grace Period.--Financial institutions affected by 31 U.S.C. 
5333(a) shall have 30 days from the date of enactment of this Act to 
comply with the provisions of that Section.
    (d) Requests for Records.--Section 3486(a)(1) of title 18, United 
States Code, is amended by striking ``, or (II) a Federal offense 
involving the sexual exploitation or abuse of children'' and inserting 
``, (II) a Federal offense involving the sexual exploitation or abuse 
of children, or (III) money laundering in violation of sections 1956, 
1957 or 1960 of this title''.

SEC. 38. CORPORATION REPRESENTED BY A FUGITIVE.

    Section 2466 of title 28, United States Code, is amended--
            (1) by striking ``A judicial officer'' and inserting ``(a) 
        In General.--A judicial officer''; and
            (2) by adding at the end the following new subsection:
    ``(b) Applicability to Corporations.--Subsection (a) may be applied 
to a claim filed by a corporation if any director of the corporation, 
majority shareholder, or individual filing the claim on behalf of the 
corporation is a person to whom subsection (a) applies.''.

SEC. 39. ENFORCEMENT OF FOREIGN JUDGMENT.

    Section 2467 of title 28, United States Code, is amended--
            (1) in subsection (d), by inserting after paragraph (2) the 
        following new paragraph:
            ``(3) Preservation of property.--To preserve the 
        availability of property subject to a foreign forfeiture or 
        confiscation judgment, the Government may apply for, and the 
        court may issue, a restraining order pursuant to section 983(j) 
        of title 18, United States Code, at any time before or after an 
        application is filed pursuant to subsection (c)(1). The court, 
        in issuing the restraining order--
                    ``(A) may rely on information set forth in an 
                affidavit describing the nature of the proceeding or 
                investigation underway in the foreign country, and 
                setting forth a reasonable basis to believe that the 
                property to be restrained will be named in a judgment 
                of forfeiture at the conclusion of such proceeding, or
                    ``(B) may register and enforce restraining order 
                that has been issued by a court of competent 
                jurisdiction in the foreign country and certified by 
                the Attorney General pursuant to subsection (b)(2).
No person may object to the restraining order on any ground that is the 
subject of parallel litigation involving the same property that is 
pending in a foreign court.''.
            (2) in subsection (b)(1)(C), by striking ``establishing 
        that the defendant received notice of the proceedings in 
        sufficient time to enable the defendant'' and inserting 
        ``establishing that the foreign nation took steps, in 
        accordance with the principles of due process, to give notice 
        of the proceedings to all persons with an interest in the 
        property in sufficient time to enable such persons''.
            (3) in subsection (d)(1)(D), by striking ``the defendant in 
        the proceedings in the foreign court did not receive notice'' 
        and inserting ``the foreign nation did not take steps, in 
        accordance with the principles of due process, to give notice 
        of the proceedings to a person with an interest in the 
        property''.
            (4) in subsection (a)(2)(A), by inserting ``, any violation 
        of foreign law that would constitute a violation of an offense 
        for which property could be forfeited under Federal law if the 
        offense were committed in the United States'' after ``United 
        Nations Convention''.
                                 <all>