[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3004 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3004

 To combat the financing of terrorism and other financial crimes, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 3, 2001

  Mr. Oxley (for himself, Mr. LaFalce, Mr. Leach, Mrs. Maloney of New 
 York, Mrs. Roukema, Mr. Bentsen, Ms. Hooley of Oregon, Mr. Bereuter, 
 Mr. Baker, Mr. Bachus, Mr. King, Mrs. Kelly, Mr. Gillmor, Mr. Cantor, 
  Mr. Riley, Mr. LaTourette, Mr. Green of Wisconsin, and Mr. Grucci) 
 introduced the following bill; which was referred to the Committee on 
Financial Services, and in addition to the Committees on the Judiciary, 
 and Ways and Means, 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 combat the financing of terrorism and other financial crimes, 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 ``Financial Anti-
Terrorism Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                 TITLE I--STRENGTHENING LAW ENFORCEMENT

Sec. 101. Bulk cash smuggling into or out of the United States.
Sec. 102. Forfeiture in currency reporting cases.
Sec. 103. Interstate currency couriers.
Sec. 104. Illegal money transmitting businesses.
Sec. 105. Long-arm jurisdiction over foreign money launderers.
Sec. 106. Laundering money through a foreign bank.
Sec. 107. Specified unlawful activity for money laundering.
Sec. 108. Laundering the proceeds of terrorism.
Sec. 109. Violations of reporting requirements for nonfinancial trades 
                            and business.
Sec. 110. Proceeds of foreign crimes.
Sec. 111. Transfer of reporting requirements from section 6050I of the 
                            Internal Revenue Code of 1986 to title 31, 
                            United States Code.
Sec. 112. Penalties for violations of geographic targeting orders and 
                            certain record keeping requirements.
Sec. 113. Exclusion of aliens involved in money laundering.
Sec. 114. Standing to contest forfeiture of funds deposited into 
                            foreign bank that has a correspondent 
                            account in the United States.
Sec. 115. Subpoenas for records regarding funds in correspondent bank 
                            accounts.
Sec. 116. Financial crimes enforcement network.
Sec. 117. Customs service border searches.
Sec. 118. Prohibition on false statements to financial institutions 
                            concerning the identity of a customer.
Sec. 119. Verification of identification.
                  TITLE II--PUBLIC-PRIVATE COOPERATION

Sec. 201. Establishment of highly secure website.
Sec. 202. Report on improvements in data access.
Sec. 203. Reports to the financial services industry on suspicious 
                            financial activities.
Sec. 204. Efficient use of currency transaction report system.
Sec. 205. Public-Private Task Force on Terrorist Financing Issues.
Sec. 206. Deadline for suspicious activity reporting requirements for 
                            registered brokers and dealers.
Sec. 207. Amendments relating to reporting of suspicious activities.
Sec. 208. Authorization to include suspicions of illegal activity in 
                            written employment references.
          TITLE III--COMBATTING INTERNATIONAL MONEY LAUNDERING

Sec. 301. Special measures for jurisdictions, financial institutions, 
                            or international transactions of primary 
                            money laundering concern.
Sec. 302. International cooperation in investigations of money 
                            laundering, financial crimes, and the 
                            finances of terrorist groups.
Sec. 303. Prohibition on acceptance of any bank instrument for unlawful 
                            Internet gambling.
Sec. 304. Internet gambling in or through foreign jurisdictions.
                     TITLE IV--CURRENCY PROTECTION

Sec. 401. Counterfeiting domestic currency and obligations.
Sec. 402. Counterfeiting foreign currency and obligations.
Sec. 403. Production of documents.
Sec. 404. Reimbursement.

                 TITLE I--STRENGTHENING LAW ENFORCEMENT

SEC. 101. 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. 102. 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. 103. 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. 104. ILLEGAL MONEY TRANSMITTING BUSINESSES.

    (a) Scienter Requirement for Section 1960 Violation.--Section 
1960(b)(1)(A) of title 18, United States Code, is amended by inserting 
``, whether or not the defendant knew the operation was so punishable'' 
before the semicolon at the end.
    (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. 105. 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. 106. LAUNDERING MONEY THROUGH A FOREIGN BANK.

    Section 1956(c)(6) of title 18, United States Code, is amended to 
read as follows:
            ``(6) the term `financial institution' includes 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. 107. SPECIFIED UNLAWFUL ACTIVITY FOR MONEY LAUNDERING.

    (a) In General.--Section 1956(c)(7) of title 18, United States 
Code, is amended--
            (1) in subparagraph (B)--
                    (A) so that clause (ii) reads as follows:
                            ``(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:
                            ``(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, if such conduct would 
                        constitute a violation of this title 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''.

SEC. 108. 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. 109. VIOLATIONS OF REPORTING REQUIREMENTS FOR NONFINANCIAL TRADES 
              AND BUSINESS.

    (a) Civil Forfeiture.--Section 981(a)(1)(A) of title 18, United 
States Code, is amended--
            (1) by inserting ``section 6050I of the Internal Revenue 
        Code of 1986, or'' after ``in violation of''; and
            (2) by striking ``or 5324(a)'' and inserting ``, 5324(a), 
        or 5332''.
    (b) Criminal Forfeiture.--Section 982(a)(1) of title 18, United 
States Code, is amended--
            (1) by inserting ``section 6050I of the Internal Revenue 
        Code of 1986, or'' after ``in violation of''; and
            (2) by striking ``or 5324'' and inserting
        ``, 5324, or 5332''.

SEC. 110. 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. 111. 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 section 101 of this title) 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 hereby 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 (as added by section 101 of this title) 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 Title 26, United States Code, 
        Section 6050I shall not be repealed until the regulations 
        mandated by Title 31, United States Code, Section 5332 become 
        effective.

SEC. 112. 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. 113. 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) new subparagraphs 
        (D) and (E) to read as follows:
                    ``(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 section 1956 or 1957 of 
                        title 18, United States Code, or has knowingly 
                        assisted, abetted, or conspired or colluded 
                        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 5 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. 114. 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. 115. 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 title) the 
following new section:

``SEC. 5333. SUBPOENAS FOR RECORDS.

    ``(a) Designation by Foreign Financial Institution of Agent.--Any 
foreign financial institution that has a correspondent bank account at 
a financial institution in the United States shall 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) Maintenance of Records by Domestic Financial Institution.--
            ``(1) In general.--Any domestic financial institution 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.
            ``(2) Provision to law enforcement agency.--A domestic 
        financial institution shall provide names and addresses 
        maintained under paragraph (1) to a Government authority (as 
        defined in section 1101(3) of the Right to Financial Privacy 
        Act of 1978) within 7 days of the receipt of a request, in 
        writing, for such records.
    ``(c) Administrative Subpoena.--
            ``(1) In general.--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 domestic financial institution.
            ``(2) Manner of issuance.--Any subpoena issued by the 
        Attorney General under paragraph (1) 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) Correspondent Account Defined.--For purposes of this section, 
the term ``correspondent account'' has the same meaning as the term 
``interbank account'' as such term is 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 title) the following new 
item:

``5333. Subpoenas for records.''.
    (c) Effective Date.--Section 5333(a) of title 31, United States 
Code (as added by subsection (a) of this section), shall apply after 
the end of the 30-day period beginning on the date of the enactment of 
this Act.
    (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) a money laundering offense in violation of 
section 1956, 1957 or 1960 of this title,''.

SEC. 116. FINANCIAL CRIMES ENFORCEMENT NETWORK.

    (a) In General.--Subchapter I of chapter 3 of title 31, United 
States Code, is amended--
            (1) by redesignating section 310 as section 311; and
            (2) by inserting after section 309 the following new 
        section:
``Sec. 310. Financial crimes enforcement network
    ``(a) In General.--The Financial Crimes Enforcement Network 
established by order of the Secretary of the Treasury (Treasury Order 
Numbered 105-08) on April 25, 1990, shall be a bureau in the Department 
of the Treasury.
    ``(b) Director.--
            ``(1) Appointment.--The head of the Financial Crimes 
        Enforcement Network shall be the Director who shall be 
        appointed by the President, by and with the consent of the 
        Senate, to a term of 4 years.
            ``(2) Duties and powers.--The duties and powers of the 
        Director are as follows:
                    ``(A) Advise and make recommendations on matters 
                relating to financial intelligence and other financial 
                criminal activity to the Under Secretary for 
                Enforcement.
                    ``(B) Maintain a government-wide data access 
                service, with access, in accordance with applicable 
                legal requirements, to the following:
                            ``(i) Information collected by the 
                        Department of the Treasury, including report 
                        information filed under subchapters II and III 
                        of chapter 53 of this title (such as reports on 
                        cash transactions, foreign financial agency 
                        transactions and relationships, foreign 
                        currency transactions, exporting and importing 
                        monetary instruments, and suspicious 
                        activities), chapter 2 of Public Law 91-508, 
section 21 of the Federal Deposit Insurance Act and section 6050I of 
the Internal Revenue Code of 1986.
                            ``(ii) Information regarding national and 
                        international currency flows.
                            ``(iii) Other records and data maintained 
                        by other Federal, State, local, and foreign 
                        agencies, including financial and other records 
                        developed in specific cases.
                            ``(iv) other privately and publicly 
                        available information.
                    ``(C) Analyze and disseminate the available data in 
                accordance with applicable legal requirements and 
                policies and guidelines established by the Secretary of 
                the Treasury and the Under Secretary for Enforcement 
                to--
                            ``(i) identify possible criminal targets to 
                        appropriate Federal, State, local, and foreign 
                        law enforcement agencies;
                            ``(ii) support ongoing criminal financial 
                        investigations and prosecutions and related 
                        proceedings, including civil and criminal tax 
                        and forfeiture proceedings;
                            ``(iii) identify possible instances of 
                        noncompliance with subchapters II and III of 
                        chapter 53 of this title, chapter 2 of Public 
                        Law 91-508, and section 21 of the Federal 
                        Deposit Insurance Act to Federal agencies with 
                        statutory responsibility for enforcing 
                        compliance with such provisions;
                            ``(iv) evaluate and recommend possible uses 
                        of special currency reporting requirements 
                        under section 5326; and
                            ``(v) determine emerging trends and methods 
                        in money laundering and other financial crimes.
                    ``(D) Establish and maintain a financial crimes 
                communications center to furnish law enforcement 
                authorities with intelligence information related to 
                emerging or ongoing investigations and undercover 
                operations.
                    ``(E) Furnish research, analytical, and 
                informational services to financial institutions, 
                appropriate Federal regulatory agencies with regard to 
                financial institutions, and appropriate Federal, State, 
                local, and foreign law enforcement authorities, in 
                accordance with policies and guidelines established by 
                the Secretary of the Treasury or the Under Secretary of 
                the Treasury for Enforcement, in the interest of 
                detection, prevention, and prosecution of money 
                laundering and other financial crimes.
                    ``(F) Establish and maintain a special unit 
                dedicated to combatting the use of informal, nonbank 
                networks and payment and barter system mechanisms that 
                permit the transfer of funds or the equivalent of funds 
                without records and without compliance with criminal 
                and tax laws.
                    ``(G) Such other duties and powers as the Secretary 
                of the Treasury may delegate or prescribe.
    ``(c) Requirements Relating to Maintenance and `User Friendly' Use 
of Data Banks.--The Secretary of the Treasury shall establish and 
maintain operating procedures with respect to the government-wide data 
access service and the financial crimes communications center 
maintained by the Financial Crimes Enforcement Network which provide--
            ``(1) for the coordinated and efficient entry of 
        information into, and withdrawal of information from, the data 
        maintenance system maintained by the Network, including--
                    ``(A) the submission of reports in electronic 
                format, whenever possible;
                    ``(B) the cataloguing of information in a manner 
                that facilitates rapid retrieval by law enforcement 
                personnel of meaningful data in a `user friendly' 
                manner; and
                    ``(C) a procedure that provides for a prompt 
                initial review of suspicious activity reports and other 
                reports, or such other means as the Secretary my 
                provide, to identify information that warrants 
                immediate action;
            ``(2) in accordance with section 552a of title 5 and the 
        Right to Financial Privacy Act of 1978, appropriate standards 
        and guidelines for determining--
                    ``(A) who is to be given access to the information 
                maintained by the Network;
                    ``(B) what limits are to be imposed on the use of 
                such information; and
                    ``(C) how information about activities or 
                relationships which involve or are closely associated 
                with the exercise of constitutional rights is to be 
                screened out of the data maintenance system; and
            ``(3) the prompt verification of the accuracy and 
        completeness of information maintained by the Network and the 
        prompt deletion or correction of inaccurate or incomplete 
        information.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated for the Financial Crimes Enforcement Network such sums as 
may be necessary for fiscal years 2002 and 2003.''.
    (b) Clerical Amendment.--The table of sections for subchapter I of 
chapter 3 of title 31, United States Code, is amended--
            (1) by redesignating the item relating to section 310 as 
        section 311; and
            (2) by inserting after the item relating to section 309 the 
        following new item:

``310. Financial crimes enforcement network.''.

SEC. 117. CUSTOMS SERVICE BORDER SEARCHES.

    Section 5317(b) of title 31, United States Code, is amended to read 
as follows:
    ``(b) Searches at Border.--
            ``(1) In general.--For purposes of ensuring compliance with 
        the laws enforced by the United States Customs Service, a 
        customs officer may stop and search, at the border and without 
        a search warrant, any vehicle, vessel, aircraft, or other 
        conveyance, any envelope or other container, and any person 
        entering or departing from the United States.
            ``(2) International shipments of mail.--With respect to 
        shipments of international mail (within the meaning of section 
        3741 of title 39) that are exported or imported by the United 
        States Postal Service, the Customs Service and other 
        appropriate Federal agencies shall, subject to paragraph (3), 
        apply the customs laws of the United States and all other laws 
        relating to the importation or exportation of such shipments in 
        the same manner to both shipments by the Postal Service and 
        similar shipments by private companies.
            ``(3) Safeguards.--No provision of this subsection shall be 
        construed as authorizing any customs officer or any other 
        person to read, copy, or seize any correspondence unless--
                    ``(A) a search warrant has been issued pursuant to 
                Rule 41 of the Federal Rules of Civil Procedure which 
                permits such correspondence to be read, copied, or 
                seized; or
                    ``(B) the author or sender of the correspondence 
                has given written consent for any such action.''.

SEC. 118. 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. 119. VERIFICATION OF IDENTIFICATION.

    Section 5318 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(i) Identification and Verification of Accountholders.--The 
Secretary of the Treasury shall prescribe regulations requiring 
financial institutions to obtain and maintain the names, addresses, and 
other forms of identification of all persons who open or maintain an 
account at the institution, including any beneficial owner of any such 
account. The regulations shall include a requirement that financial 
institutions shall verify the identity of all such persons and maintain 
records of the information used to verify such identification.''.

                  TITLE II--PUBLIC-PRIVATE COOPERATION

SEC. 201. ESTABLISHMENT OF HIGHLY SECURE WEBSITE.

    (a) In General.--The Secretary of the Treasury shall establish a 
highly secure website in the Financial Crimes Enforcement Network 
that--
            (1) allows financial institutions to file suspicious 
        activities reports through the Internet; and
            (2) provides financial institutions with alerts and other 
        information regarding suspicious activities that warrant 
        immediate and enhanced scrutiny.
    (b) Expedited Development.--The Secretary of the Treasury shall 
take such action as may be necessary to ensure that the website 
required under subsection (a) is fully operational before the end of 
the 6-month period beginning on the date of the enactment of this Act.

SEC. 202. REPORT ON IMPROVEMENTS IN DATA ACCESS.

    Before the end of the 4-month period beginning on the date of the 
enactment of this Act, the Secretary of the Treasury shall report to 
the Congress on the progress made since such date of enactment in 
meeting the requirements of section 310(c) of title 31, United States 
Code (as added by this Act) to maintain the data collection and 
analysis system of the Financial Crimes Enforcement Network in a manner 
that allows the submission of reports in electronic format and the 
rapid retrieval by law enforcement personnel of meaningful data in a 
`user friendly' manner.

SEC. 203. REPORTS TO THE FINANCIAL SERVICES INDUSTRY ON SUSPICIOUS 
              FINANCIAL ACTIVITIES.

    At least once each calendar quarter, the Secretary of the Treasury 
shall--
            (1) publish a report containing a detailed analysis 
        identifying patterns of suspicious activity and other 
        investigative insights derived from suspicious activity reports 
        and investigations conducted by Federal, to the extent 
        appropriate; and
            (2) distribute such report to financial institutions (as 
        defined in section 5312 of title 31, United States Code).

SEC. 204. EFFICIENT USE OF CURRENCY TRANSACTION REPORT SYSTEM.

    (a) Findings.--The Congress finds the following:
            (1) The Congress established the currency transaction 
        reporting requirements in 1970 because the Congress found then 
        that such reports have a high degree of usefulness in criminal, 
        tax, and regulatory investigations and proceedings and the 
        usefulness of such reports has only increased in the years 
        since the requirements were established.
            (2) In 1994, in response to reports and testimony that 
        excess amounts of currency transaction reports were interfering 
        with effective law enforcement, the Congress reformed the 
        currency transaction report exemption requirements to provide--
                    (A) mandatory exemptions for certain reports that 
                had little usefulness for law enforcement, such as cash 
                transfers between depository institutions and cash 
                deposits from government agencies; and
                    (B) discretionary authority for the Secretary of 
                the Treasury to provide exemptions, subject to criteria 
                and guidelines established by the Secretary, for 
                financial institutions with regard to regular business 
                customers that maintain accounts at an institution into 
                which frequent cash deposits are made.
            (3) Today there is evidence that some financial 
        institutions are not utilizing the exemption system, or are 
        filing reports even if there is an exemption in effect, with 
        the result that the volume of currency transaction reports is 
        once again interfering with effective law enforcement.
    (b) Study and Report.--
            (1) Study required.--The Secretary of the Treasury shall 
        conduct a study of--
                    (A) the possible expansion of the statutory 
                exemption system in effect under 5313 of title 31, 
                United States Code;
                    (B) methods for improving financial institution 
                utilization of the statutory exemption provisions as a 
                way of reducing the submission of currency transaction 
                reports that have little or no value for law 
                enforcement purposes, including improvements in the 
                systems in effect at financial institutions for regular 
                review of the exemption procedures used at the 
                institution and the training of personnel in its 
                effective use; and
                    (C) the feasibility and advisability of 
                establishing sanctions for financial institutions that 
                routinely engage in filing currency transaction reports 
                that have little or no value for law enforcement 
                purposes without regard to the statutory exemptions 
                available with respect to such reports.
            (2) Report required.--The Secretary of the Treasury shall 
        submit a report to the Congress before the end of the 90-day 
        period beginning on the date of the enactment of this Act 
containing the findings and conclusions of the Secretary with regard to 
the study required under subsection (a) and such recommendations for 
legislative or administrative action as the Secretary determines to be 
appropriate.

SEC. 205. PUBLIC-PRIVATE TASK FORCE ON TERRORIST FINANCING ISSUES.

    Section 1564 of the Annunzio-Wylie Anti-Money Laundering Act (31 
U.S.C. 5313 note) is amended by adding at the end the following new 
subsection:
    ``(d) Terrorist Financing Issues.--The Secretary of the Treasury 
shall provide, either within the Bank Secrecy Act Advisory Group, or as 
a subcommittee or other adjunct of the Advisory Group, for a task force 
of representatives from agencies and officers represented on the 
Advisory Group and representatives of financial institutions, private 
organizations that represent the financial services industry, and other 
interested parties to focus on--
            ``(1) issues specifically related to the finances of 
        terrorist groups, the means terrorist groups use to transfer 
        funds around the world and within the United States, and the 
        extent to which financial institutions in the United States are 
        unwittingly involved in such finances and the extent to which 
        such institutions are at risk as a result; and
            ``(2) means of facilitating the identification of accounts 
        and transactions involving terrorist groups and facilitating 
        the exchange of information concerning such accounts and 
        transactions between financial institutions and law enforcement 
        organizations.''.

SEC. 206. DEADLINE FOR SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS FOR 
              REGISTERED BROKERS AND DEALERS.

    The Secretary of the Treasury shall publish regulations in the 
Federal Register before January 1, 2002, requiring brokers and dealers 
registered with the Securities and Exchange Commission under the 
Securities Exchange Act of 1934 to submit suspicious activity reports 
under section 5318(g) of title 31, United States Code.

SEC. 207. 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. 208. 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:
    ``(w) 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.''.

          TITLE III--COMBATTING INTERNATIONAL MONEY LAUNDERING

SEC. 301. 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 
        (d).
            ``(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) Prohibition on United States Correspondent Accounts With 
Foreign Shell Banks.--
            ``(1) In general.--A depository 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 depository institution shall take reasonable steps to 
        ensure that any correspondent account established, maintained, 
        administered, or managed by that 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) shall not be 
        construed as prohibiting a depository institution from 
        providing a correspondent account to a foreign bank, if the 
        foreign bank--
                    ``(A) is an affiliate of a depository institution, 
                credit union, financial services company, 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, financial 
                services company, or foreign bank, described in 
                subparagraph (A), as applicable.
            ``(4) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Affiliate.--The term `affiliate' means a 
                foreign bank that is controlled by or is under common 
                control with a depository institution, credit union, 
                financial services company, or foreign bank.
                    ``(B) Depository institution.--The `depository 
                institution'--
                            ``(i) has the meaning given such term in 
                        section 3 of the Federal Deposit Insurance Act; 
                        and
                            ``(ii) includes a credit union.
                    ``(C) Physical presence.--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) 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.
    ``(e) 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 Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate of any 
such action.
    ``(f) 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.''.

SEC. 302. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF MONEY 
              LAUNDERING, FINANCIAL CRIMES, AND THE FINANCES OF 
              TERRORIST GROUPS.

  (a) Negotiations.--
            (1) In general.--In addition to the requirements of section 
        4702 of the Anti-Drug Abuse Act of 1988, the Secretary of the 
        Treasury (hereinafter in this section referred to as the 
        ``Secretary''), in consultation with the Attorney General, the 
        Secretary of State, and the Board of Governors of the Federal 
        Reserve System, shall enter into negotiations with the 
        appropriate financial supervisory agencies and other officials 
        of any foreign country the financial institutions of which do 
        business with United States financial institutions or which may 
        be utilized by any foreign terrorist organization (as 
        designated under section 219 of the Immigration and Nationality 
        Act), any person who is a member or representative of any such 
        organization, or any person engaged in money laundering or 
        financial or other crimes.
            (2) Purposes of negotiations.--In carrying out negotiations 
        under paragraph (1), the Secretary shall seek to enter into and 
        further cooperative efforts, voluntary information exchanges, 
        the use of letters rogatory, mutual legal assistance treaties, 
        and international agreements to--
                    (A) ensure that foreign banks and other financial 
                institutions maintain adequate records of--
                            (i) large United States currency 
                        transactions; and
                            (ii) transaction and account information 
                        relating to any foreign terrorist organization 
                        (as designated under section 219 of the 
                        Immigration and Nationality Act), any person 
                        who is a member or representative of any such 
                        organization, or any person engaged in money 
                        laundering or financial or other crimes; and
          (B) establish a mechanism whereby such records may be made 
        available to United States law enforcement officials and 
        domestic financial institution supervisors, when appropriate.
    (b) Reports.--
            (1) Interim report.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall submit an interim 
        report to the Congress on progress in the negotiations under 
        subsection (a).
            (2) Final report.--Not later than 2 years after the date of 
        the enactment of this Act, the Secretary shall submit a final 
        report to the President and the Congress, on the outcome of 
        negotiations under subsection (a).
            (3) Identification of certain countries.--In the report 
        submitted under paragraph (2), the Secretary shall identify 
        countries--
                    (A) with respect to which the Secretary determines 
                there is evidence that the financial institutions in 
                such countries are being utilized, knowingly or 
                unwittingly, by any foreign terrorist organization (as 
                designated under section 219 of the Immigration and 
                Nationality Act), any person who is a member or 
                representative of any such organization, or any person 
                engaged in money laundering or financial or other 
                crimes; and
                    (B) which have not reached agreement with United 
                States authorities to meet the objectives of 
                subparagraphs (A) and (B) of subsection (a)(2).
    (c) Authority for Other Action.--
            (1) In general.--If the President determines that--
                            (A) a foreign country is described in 
                        subparagraphs (A) and (B) of subsection (b)(3); 
                        and
                            (B) such country is not negotiating in good 
                        faith to reach an agreement described in 
                        subsection (a)(2),
        the President may impose appropriate penalties and sanctions on 
        such country and, except as provided in paragraph (3), 
        financial institutions of such country.
            (2) Penalties and sanctions.--The penalties and sanctions 
        which may be imposed by the President under paragraph (1) 
        include temporarily or permanently--
                    (A) prohibiting such persons, institutions, or 
                other entities as the President may designate in any 
                such country from participating in any United States 
                dollar clearing or wire transfer system; and
                    (B) prohibiting such persons, institutions or 
                entities as the President may designate in such 
                countries from maintaining an account with any bank or 
                other financial institution chartered under the laws of 
                the United States or any State.
            (3) Exemption for certain financial institutions.--
        Financial institutions that maintain adequate records shall be 
        exempt from such penalties and sanctions.

SEC. 303. PROHIBITION ON ACCEPTANCE OF ANY BANK INSTRUMENT FOR UNLAWFUL 
              INTERNET GAMBLING.

    (a) In General.--No person engaged in the business of betting or 
wagering may knowingly accept, in connection with the participation of 
another person in unlawful Internet gambling--
            (1) credit, or the proceeds of credit, extended to or on 
        behalf of such other person (including credit extended through 
        the use of a credit card);
            (2) an electronic fund transfer or funds transmitted by or 
        through a money transmitting business, or the proceeds of an 
        electronic fund transfer or money transmitting service, from or 
        on behalf of the other person;
            (3) any check, draft, or similar instrument which is drawn 
        by or on behalf of the other person and is drawn on or payable 
        at or through any financial institution; or
            (4) the proceeds of any other form of financial transaction 
        as the Secretary may prescribe by regulation which involves a 
        financial institution as a payor or financial intermediary on 
        behalf of or for the benefit of the other person.
    (b) Definitions.--For purposes of this Act, the following 
definitions shall apply:
            (1) Bets or wagers.--The term ``bets or wagers''--
                    (A) means the staking or risking by any person of 
                something of value upon the outcome of a contest of 
                others, a sporting event, or a game subject to chance, 
                upon an agreement or understanding that the person or 
                another person will receive something of greater value 
                than the amount staked or risked in the event of a 
                certain outcome;
                    (B) includes the purchase of a chance or 
                opportunity to win a lottery or other prize (which 
                opportunity to win is predominantly subject to chance);
                    (C) includes any scheme of a type described in 
                section 3702 of title 28;
                    (D) includes any instructions or information 
                pertaining to the establishment or movement of funds in 
                an account by the bettor or customer with the business 
                of betting or wagering; and
                    (E) does not include--
                            (i) any bona fide business transaction 
                        governed by the securities laws (as that term 
                        is defined in section 3(a)(47) of 
the Securities Exchange Act of 1934) for the purchase or sale at a 
future date of securities (as that term is defined in section 3(a)(10) 
of such Act);
                            (ii) any transaction on or subject to the 
                        rules of a contract market designated pursuant 
                        to section 5 of the Commodity Exchange Act;
                            (iii) any over-the-counter derivative 
                        instrument;
                            (iv) any contract of indemnity or 
                        guarantee;
                            (v) any contract for life, health, or 
                        accident insurance;
                            ``(vi) any deposit or other transaction 
                        with a depository institution (as defined in 
                        section 3(c) of the Federal Deposit Insurance 
                        Act)
                            (vii) any participation in a simulation 
                        sports game or an educational game or contest 
                        that--
                                    (I) is not dependent solely on the 
                                outcome of any single sporting event or 
                                nonparticipant's singular individual 
                                performance in any single sporting 
                                event;
                                    (II) has an outcome that reflects 
                                the relative knowledge and skill of the 
                                participants with such outcome 
                                determined predominantly by accumulated 
                                statistical results of sporting events; 
                                and
                                    (III) offers a prize or award to a 
                                participant that is established in 
                                advance of the game or contest and is 
                                not determined by the number of 
                                participants or the amount of any fees 
                                paid by those participants.
            (2) Business of betting or wagering.--The term ``business 
        of betting or wagering'' does not include, other than for 
        purposes of subsection (e), any creditor, credit card issuer, 
        insured depository institution, financial institution, operator 
        of a terminal at which an electronic fund transfer may be 
        initiated, money transmitting business, or international, 
        national, regional, or local network utilized to effect a 
        credit transaction, electronic fund transfer, stored value 
        product transaction, or money transmitting service, or any 
        participant in such network.
            (3) Internet.--The term ``Internet'' means the 
        international computer network of interoperable packet switched 
        data networks.
            (4) Unlawful internet gambling.--The term ``unlawful 
        Internet gambling'' means to place, receive, or otherwise 
        transmit a bet or wager by any means which involves the use, at 
        least in part, of the Internet where such bet or wager is 
        unlawful under any applicable Federal or State law in the State 
        in which the bet or wager is initiated, received, or otherwise 
        made.
            (5) Other terms.--
                    (A) Credit; creditor; and credit card.--The terms 
                ``credit'', ``creditor'', and ``credit card'' have the 
                meanings given such terms in section 103 of the Truth 
                in Lending Act.
                    (B) Electronic fund transfer.--The term 
                ``electronic fund transfer''--
                            (i) has the meaning given such term in 
                        section 903 of the Electronic Fund Transfer 
                        Act; and
                            (ii) includes any fund transfer covered by 
                        Article 4A of the Uniform Commercial Code, as 
                        in effect in any State.
                    (C) Financial institution.--The term ``financial 
                institution'' has the meaning given such term in 
                section 903 of the Electronic Fund Transfer Act.
                    (D) Money transmitting business and money 
                transmitting service.--The terms ``money transmitting 
                business'' and ``money transmitting service'' have the 
                meanings given such terms in section 5330(d) of title 
                31, United States Code.
                    (E) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury.
    (c) Civil Remedies.--
            (1) Jurisdiction.--The district courts of the United States 
        shall have original and exclusive jurisdiction to prevent and 
        restrain violations of this section by issuing appropriate 
        orders in accordance with this section, regardless of whether a 
        prosecution has been initiated under this section.
            (2) Proceedings.--
                    (A) Institution by federal government.--
                            (i) In general.--The United States, acting 
                        through the Attorney General, may institute 
                        proceedings under this subsection to prevent or 
                        restrain a violation of this section.
                            (ii) Relief.--Upon application of the 
                        United States under this subparagraph, the 
                        district court may enter a preliminary 
                        injunction or an injunction against any person 
                        to prevent or restrain a violation of this 
                        section, in accordance with Rule 65 of the 
                        Federal Rules of Civil Procedure.
                    (B) Institution by state attorney general.--
                            (i) In general.--The attorney general of a 
                        State (or other appropriate State official) in 
                        which a violation of this section allegedly has 
                        occurred or will occur may institute 
                        proceedings under this subsection to prevent or 
                        restrain the violation.
                            (ii) Relief.--Upon application of the 
                        attorney general (or other appropriate State 
                        official) of an affected State under this 
                        subparagraph, the district court may enter a 
                        preliminary injunction or an injunction against 
                        any person to prevent or restrain a violation 
                        of this section, in accordance with Rule 65 of 
                        the Federal Rules of Civil Procedure.
                    (C) Indian lands.--
                            (i) In general.--Notwithstanding 
                        subparagraphs (A) and (B), for a violation that 
                        is alleged to have occurred, or may occur, on 
                        Indian lands (as that term is defined in 
                        section 4 of the Indian Gaming Regulatory 
                        Act)--
                                    (I) the United States shall have 
                                the enforcement authority provided 
                                under subparagraph (A); and
                                    (II) the enforcement authorities 
                                specified in an applicable Tribal-State 
                                compact negotiated under section 11 of 
                                the Indian Gaming Regulatory Act shall 
                                be carried out in accordance with that 
                                compact.
                            (ii) Rule of construction.--No provision of 
                        this section shall be construed as altering, 
                        superseding, or otherwise affecting the 
                        application of the Indian Gaming Regulatory 
                        Act.
                    (D) Banking regulators.--Before initiating any 
                proceeding under this paragraph with respect to a 
                violation or potential violation of subsection (e) by 
                an insured depository institution (as defined in 
                section 3 of the Federal Deposit Insurance Act), the 
                Attorney General of the United States or an attorney 
                general of a State (or other appropriate State 
                official) shall--
                            (i) notify the appropriate Federal banking 
                        agency (as defined in such section) of such 
                        violation or potential violation; and
                            (ii) allow such agency a reasonable time to 
                        issue an order to such insured depository 
                        institution under section 8(x) of the Federal 
                        Deposit Insurance Act.
            (3) Expedited proceedings.--
                    (A) In general.--In addition to any proceeding 
                under paragraph (2), a district court may, in exigent 
                circumstances, enter a temporary restraining order 
                against a person alleged to be in violation of this 
                section upon application of the United States under 
                paragraph (2)(A), or the attorney general (or other 
                appropriate State official) of an affected State under 
                paragraph (2)(B), in accordance with Rule 65(b) of the 
                Federal Rules of Civil Procedure.
    (d) Criminal Penalty.--
            (1) In general.--Whoever violates this section shall be 
        fined under title 18, United States Code, or imprisoned for not 
        more than 5 years, or both.
            (2) Permanent injunction.--Upon conviction of a person 
        under this subsection, the court may enter a permanent 
        injunction enjoining such person from placing, receiving, or 
        otherwise making bets or wagers or sending, receiving, or 
        inviting information assisting in the placing of bets or 
        wagers.
    (e) Circumventions Prohibited.--Notwithstanding subsection (b)(2), 
a creditor, credit card issuer, financial institution, operator of a 
terminal at which an electronic fund transfer may be initiated, money 
transmitting business, or international, national, regional, or local 
network utilized to effect a credit transaction, electronic fund 
transfer, or money transmitting service, or any participant in such 
network, may be liable under this section if such creditor, issuer, 
institution, operator, business, network, or participant--
            (1) operates, manages, supervises, or directs an Internet 
        website at which unlawful bets or wagers may be placed, 
received, or otherwise made or at which unlawful bets or wagers are 
offered to be placed, received, or otherwise made; or
            (2) owns or controls, or is owned or controlled by, any 
        person who operates, manages, supervises, or directs an 
        Internet website at which unlawful bets or wagers may be 
        placed, received, or otherwise made or at which unlawful bets 
        or wagers are offered to be placed, received, or otherwise 
        made.
    (f) Enforcement Actions.--Section 8 of the Federal Deposit 
Insurance Act (12 U.S.C. 1818) is amended by adding at the end the 
following new subsection:
    ``(x) Depository Institution Involvement in Internet Gambling.--If 
any appropriate Federal banking agency determines that any insured 
depository institution is engaged in any of the following activities, 
the agency may issue an order to such institution prohibiting such 
institution from continuing to engage in any of the following 
activities:
            ``(1) Extending credit, or facilitating an extension of 
        credit, electronic fund transfer, or money transmitting service 
        with the actual knowledge that any person is violating section 
        3(a) of the Unlawful Internet Gambling Funding Prohibition Act 
        in connection with such extension of credit, electronic fund 
        transfer, or money transmitting service.
            ``(2) Paying, transferring, or collecting on any check, 
        draft, or other instrument drawn on any depository institution 
        with the actual knowledge that any person is violating section 
        3(a) of the Unlawful Internet Gambling Funding Prohibition Act 
        in connection with such check, draft, or other instrument.''.

SEC. 304. INTERNET GAMBLING IN OR THROUGH FOREIGN JURISDICTIONS.

    (a) In General.--In deliberations between the United States 
Government and any other country on money laundering, corruption, and 
crime issues, the United States Government should--
            (1) encourage cooperation by foreign governments and 
        relevant international fora in identifying whether Internet 
        gambling operations are being used for money laundering, 
        corruption, or other crimes;
            (2) advance policies that promote the cooperation of 
        foreign governments, through information sharing or other 
        measures, in the enforcement of this Act; and
            (3) encourage the Financial Action Task Force on Money 
        Laundering, in its annual report on money laundering 
        typologies, to study the extent to which Internet gambling 
        operations are being used for money laundering.
    (b) Report Required.--The Secretary of the Treasury shall submit an 
annual report to the Congress on the deliberations between the United 
States and other countries on issues relating to Internet gambling.

                     TITLE IV--CURRENCY PROTECTION

SEC. 401. COUNTERFEITING DOMESTIC CURRENCY AND OBLIGATIONS.

    (a) Counterfeit Acts Committed Outside the United States.--Section 
470 of title 18, United States Code, is amended--
            (1) in paragraph (2), by inserting ``analog, digital, or 
        electronic image,'' after ``plate, stone,''; and
            (2) by striking ``shall be fined under this title, 
        imprisoned not more than 20 years, or both'' and inserting 
        ``shall be punished as is provided for the like offense within 
        the United States''.
    (b) Obligations or Securities of the United States.--Section 471 of 
title 18, United States Code, is amended by striking ``fifteen years'' 
and inserting ``20 years''.
    (c) Uttering Counterfeit Obligations or Securities.--Section 472 of 
title 18, United States Code, is amended by striking ``fifteen years'' 
and inserting ``20 years''.
    (d) Dealing in Counterfeit Obligations or Securities.--Section 473 
of title 18, United States Code, is amended by striking ``ten years'' 
and inserting ``20 years''.
    (e) Plates, Stones, or Analog, Digital, or Electronic Images for 
Counterfeiting Obligations or Securities.--
            (1) In general.--Section 474(a) of title 18, United States 
        Code, is amended by inserting after the second paragraph the 
        following new paragraph:
            ``Whoever, with intent to defraud, makes, executes, 
        acquires, scans, captures, records, receives, transmits, 
        reproduces, sells, or has in such person's control, custody, or 
        possession, an analog, digital, or electronic image of any 
        obligation or other security of the United States; or''.
            (2) Amendment to definition.--Section 474(b) of title 18, 
        United States Code, is amended by striking the first sentence 
        and inserting the following new sentence: ``For purposes of 
        this section, the term `analog, digital, or electronic 
image' includes any analog, digital, or electronic method used for the 
making, execution, acquisition, scanning, capturing, recording, 
retrieval, transmission, or reproduction of any obligation or security, 
unless such use is authorized by the Secretary of the Treasury.''.
            (3) Clerical amendment.--The heading for section 474 of 
        title 18, United States Code, is amended by striking ``or 
        stones'' and inserting
        ``, stones, or analog, digital, or electronic images''.
    (f) Taking Impressions of Tools Used for Obligations or 
Securities.--Section 476 of title 18, United States Code, is amended--
            (1) by inserting ``analog, digital, or electronic image,'' 
        after ``impression, stamp,''; and
            (2) by striking ``ten years'' and inserting ``25 years''.
    (g) Possessing or Selling Impressions of Tools Used for Obligations 
or Securities.--Section 477 of title 18, United States Code, is 
amended--
            (1) in the first paragraph, by inserting ``analog, digital, 
        or electronic image,'' after ``imprint, stamp,'';
            (2) in the second paragraph, by inserting ``analog, 
        digital, or electronic image,'' after ``imprint, stamp,''; and
            (3) in the third paragraph, by striking ``ten years'' and 
        inserting ``25 years''.
    (h) Connecting Parts of Different Notes.--Section 484 of title 18, 
United States Code, is amended by striking ``five years'' and inserting 
``10 years''.
    (i) Bonds and Obligations of Certain Lending Agencies.--The first 
and second paragraphs of section 493 of title 18, United States Code, 
are each amended by striking ``five years'' and inserting ``10 years''.

SEC. 402. COUNTERFEITING FOREIGN CURRENCY AND OBLIGATIONS.

    (a) Foreign Obligations or Securities.--Section 478 of title 18, 
United States Code, is amended by striking ``five years'' and inserting 
``20 years''.
    (b) Uttering Counterfeit Foreign Obligations or Securities.--
Section 479 of title 18, United States Code, is amended by striking 
``three years'' and inserting ``20 years''.
    (c) Possessing Counterfeit Foreign Obligations or Securities.--
Section 480 of title 18, United States Code, is amended by striking 
``one year'' and inserting ``20 years''.
    (d) Plates, Stones, or Analog, Digital, or Electronic Images for 
Counterfeiting Foreign Obligations or Securities.--
            (1) In general.--Section 481 of title 18, United States 
        Code, is amended by inserting after the second paragraph the 
        following new paragraph:
            ``Whoever, with intent to defraud, makes, executes, 
        acquires, scans, captures, records, receives, transmits, 
        reproduces, sells, or has in such person's control, custody, or 
        possession, an analog, digital, or electronic image of any 
        bond, certificate, obligation, or other security of any foreign 
        government, or of any treasury note, bill, or promise to pay, 
        lawfully issued by such foreign government and intended to 
        circulate as money; or''.
            (2) Increased sentence.--The last paragraph of section 481 
        of title 18, United States Code, is amended by striking ``five 
        years'' and inserting ``25 years''.
            (3) Clerical amendment.--The heading for section 481 of 
        title 18, United States Code, is amended by striking ``or 
        stones'' and inserting
        ``, stones, or analog, digital, or electronic images''.
    (e) Foreign Bank Notes.--Section 482 of title 18, United States 
Code, is amended by striking ``two years'' and inserting ``20 years''.
    (f) Uttering Counterfeit Foreign Bank Notes.--Section 483 of title 
18, United States Code, is amended by striking ``one year'' and 
inserting ``20 years''.

SEC. 403. PRODUCTION OF DOCUMENTS.

    Section 5114(a) of title 31, United States Code (relating to 
engraving and printing currency and security documents), is amended--
            (1) by striking ``(a) The Secretary of the Treasury'' and 
        inserting:
    ``(a) Authority To Engrave and Print.--
            ``(1) In general.--The Secretary of the Treasury''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Engraving and printing for other governments.--The 
        Secretary of the Treasury may, if the Secretary determines that 
        it will not interfere with engraving and printing needs of the 
        United States, produce currency, postage stamps, and other 
        security documents for foreign governments, subject to a 
        determination by the Secretary of State that such production 
        would be consistent with the foreign policy of the United 
        States.''.

SEC. 404. REIMBURSEMENT.

    Section 5143 of title 31, United States Code (relating to payment 
for services of the Bureau of Engraving and Printing), is amended--
            (1) in the first sentence, by inserting ``, any foreign 
        government, or any territory of the United States'' after 
        ``agency'';
            (2) in the second sentence, by inserting ``and other'' 
        after ``administrative''; and
            (3) in the last sentence, by inserting ``, foreign 
        government, or territory of the United States'' after 
        ``agency''.
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