[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2402 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2402

    To improve the prohibitions on money laundering, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 13, 2006

  Mr. Grassley (for himself, Mr. Kyl, Mr. Cornyn, Mr. DeWine, and Mr. 
    Graham) introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
    To improve the prohibitions on money laundering, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combating Money Laundering and 
Terrorist Financing Act of 2006''.

                       TITLE I--MONEY LAUNDERING

SEC. 101. SPECIFIED UNLAWFUL ACTIVITY.

    Section 1956(c)(7) of title 18, United States Code, is amended to 
read as follows:
            ``(7) the term `specified unlawful activity' means--
                    ``(A) any act or activity constituting an offense 
                in violation of the laws of the United States or any 
                State punishable by imprisonment for a term exceeding 1 
                year; and
                    ``(B) any act or activity occurring outside of the 
                United States that would constitute an offense covered 
                under subparagraph (A) if the act or activity had 
                occurred within the jurisdiction of the United States 
                or any State;''.

SEC. 102. MAKING THE DOMESTIC MONEY LAUNDERING STATUTE APPLY TO 
              ``REVERSE MONEY LAUNDERING'' AND INTERSTATE 
              TRANSPORTATION.

    (a) In General.--Section 1957 of title 18, United States Code, is 
amended--
            (1) in the heading, by inserting ``or in support of 
        criminal activity'' after ``specified unlawful activity'';
            (2) in subsection (a), by striking ``Whoever'' and 
        inserting the following:
            ``(1) Whoever''; and
            (3) by adding at the end the following:
    ``(2) Whoever--
            ``(A) in any of the circumstances set forth in subsection 
        (d)--
                    ``(i) conducts or attempts to conduct a monetary 
                transaction involving property of a value that is 
                greater than $10,000; or
                    ``(ii) transports, attempts to transport, or 
                conspires to transport property of a value that is 
                greater than $10,000;
            ``(B) in or affecting interstate commerce; and
            ``(C) either--
                    ``(i) knowing that the property was derived from 
                some form of unlawful activity; or
                    ``(ii) with the intent to promote the carrying on 
                of specified unlawful activity;
shall be fined under this title, imprisoned for a term of years not to 
exceed the statutory maximum for the unlawful activity from which the 
property was derived or the unlawful activity being promoted, or 
both.''.
    (b) Chapter Analysis.--The item relating to section 1957 in the 
table of sections for chapter 95 of title 18, United States Code, is 
amended to read as follows:

``1957. Engaging in monetary transactions in property derived from 
                            specified unlawful activity or in support 
                            of criminal activity.''.

SEC. 103. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY LAUNDERING CASES.

    (a) In General.--Section 986 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(e) Procedure for Issuing Subpoenas.--The Attorney General, the 
Secretary of the Treasury, or the Secretary of Homeland Security may 
issue a subpoena in any investigation of a violation of sections 1956, 
1957 or 1960, or sections 5316, 5324, 5331 or 5332 of title 31, United 
States Code, in the manner set forth under section 3486.''.
    (b) Grand Jury and Trial Subpoenas.--Section 5318(k)(3)(A)(i) of 
title 31, United States Code, is amended--
            (1) by striking ``related to such correspondent account'';
            (2) by striking ``or the Attorney General'' and inserting 
        ``, the Attorney General, or the Secretary of Homeland 
        Security''; and
            (3) by adding at the end the following:
                            ``(iii) Grand jury or trial subpoena.--In 
                        addition to a subpoena issued by the Attorney 
                        General, Secretary of the Treasury, or the 
                        Secretary of Homeland Security under clause 
                        (i), a subpoena under clause (i) includes a 
                        grand jury or trial subpoena requested by the 
                        Government.''.
    (c) Fair Credit Reporting Act Amendment.--Section 604(a)(1) of the 
Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is amended--
            (1) by striking ``or''; and
            (2) by inserting before the period the following: ``, or an 
        investigative subpoena issued under section 5318 of title 31, 
        United States Code''.
    (d) Obstruction of Justice.--Section 1510(b) of title 18, United 
States Code, is amended--
            (1) in paragraph (2)(A), by inserting ``or an investigative 
        subpoena issued under section 5318 of title 31, United States 
        Code'' after ``grand jury subpoena''; and
            (2) in paragraph (3)(B), by inserting ``, an investigative 
        subpoena issued under section 5318 of title 31, United States 
        Code,'' after ``grand jury subpoena''.
    (e) Right to Financial Privacy Act.--Section 1120 of the Right to 
Financial Privacy Act of 1978 (12 U.S.C. 3420) is amended--
            (1) in subsection (a)(1), by inserting ``or to the 
        Government'' after ``to the grand jury''; and
            (2) in subsection (b)(1), by inserting ``, or an 
        investigative subpoena issued pursuant to section 5318 of title 
        31, United States Code,'' after ``grand jury subpoena''.

SEC. 104. TRANSPORTATION OR TRANSHIPMENT OF BLANK CHECKS IN BEARER 
              FORM.

    Section 5316 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(e) Monetary Instruments With Amount Left Blank.--For purposes of 
this section, a monetary instrument in bearer form that has the amount 
left blank, such that the amount could be filled in by the bearer, 
shall be considered to have a value equal to the highest value of the 
funds in the account on which the monetary instrument is drawn during 
the time period the monetary instrument was being transported or the 
time period it was negotiated or was intended to be negotiated.''.

SEC. 105. BULK CASH SMUGGLING.

    Section 5332(a) of title 31, United States Code, is amended--
            (1) in subsection (b)(1), by striking ``5 years'' and 
        inserting ``10 years''; and
            (2) by adding the end the following:
    ``(d) Investigative Authority.--Violations of this section may be 
investigated by the Attorney General, the Secretary of the Treasury, 
the Secretary of Homeland Security, and the Postal Service.''.

SEC. 106. VIOLATIONS INVOLVING COMMINGLED FUNDS AND STRUCTURED 
              TRANSACTIONS.

    Section 1957(f) of title 18, United States Code, is amended--
            (1) in paragraph (2) by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(4) the term `monetary transaction in criminally derived 
        property that is of a value greater than $10,000' includes--
                    ``(A) a monetary transaction involving the 
                transfer, withdrawal, encumbrance or other disposition 
                of more than $10,000 from a bank account in which more 
                than $10,000 in proceeds of specified unlawful activity 
                have been commingled with other funds;
                    ``(B) a series of monetary transactions in amounts 
                under $10,000 that exceed $10,000 in the aggregate and 
                that are closely related to each other in terms of such 
                factors as time, the identity of the parties involved, 
                the nature and purpose of the transactions, and the 
                manner in which they are conducted; and
                    ``(C) any financial transaction covered under 
                section 1956(j) that involves more than $10,000 in 
                proceeds of specified unlawful activity; and
            ``(5) the term `monetary transaction involving property of 
        a value that is greater than $10,000' includes a series of 
        monetary transactions in amounts under $10,000 that exceed 
        $10,000 in the aggregate and that are closely related to each 
        other in terms of such factors as time, the identity of the 
        parties involved, the nature and purpose of the transactions, 
        and the manner in which they are conducted.''.

SEC. 107. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.

    (a) In General.--Section 1956 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(j) Multiple Violations.--Multiple violations of this section 
that are part of the same scheme or continuing course of conduct may be 
charged, at the election of the Government, in a single count in an 
indictment or information.''.
    (b) Conspiracies.--Section 1956(h) of title 18, United States Code, 
is amended by striking ``or section 1957'' and inserting ``, section 
1957, or section 1960''.

SEC. 108. ILLEGAL MONEY TRANSMITTING BUSINESSES.

    (a) Technical Amendments.--
            (1) In general.--Section 1960 of title 18, United States 
        Code, is amended--
                    (A) in the heading by striking ``unlicensed'' and 
                inserting ``illegal'';
                    (B) in subsection (a), by striking ``unlicensed'' 
                and inserting ``illegal'';
                    (C) in subsection (b)(1), by striking 
                ``unlicensed'' and inserting ``illegal''; and
                    (D) in subsection (b)(1)(C), by striking ``to be 
                used to be used'' and inserting ``to be used''.
            (2) Chapter analysis.--The item relating to section 1960 in 
        the table of sections for chapter 95 of title 18, United States 
        Code, is amended to read as follows:

``1960. Prohibition of illegal money transmitting businesses.''.
    (b) Definition of Business To Include Informal Value Transfer 
Systems and Money Brokers for Drug Cartels.--Section 1960(b) of title 
18, United States Code, is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(4) the term `business' includes any person or 
        association of persons, formal or informal, licensed or 
        unlicenced, that provides money transmitting services on behalf 
        of any third party in return for remuneration or other 
        consideration.''.
    (c) Prohibition of Unlicensed Money Transmitting Businesses.--
Section 1960(b)(1)(B) of title 18, United States Code, is amended by 
inserting the following before the semicolon: ``, whether or not the 
defendant knew that the operation was required to comply with such 
registration requirements''.
    (d) Authority To Investigate.--Section 1960 of title 18, United 
States Code, is amended by adding at the end the following:
    ``(c) Authority To Investigate.--Violations of this section may be 
investigated by the Attorney General, the Secretary of the Treasury, 
and the Secretary of Homeland Security.''.

SEC. 109. KNOWLEDGE THAT THE PROPERTY IS THE PROCEEDS OF A SPECIFIC 
              FELONY.

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

SEC. 110. EXTRATERRITORIAL JURISDICTION.

    Section 1956(f)(1) of title 18, United States Code, is amended by 
inserting ``or has an effect in the United States'' after ``conduct 
occurs in part in the United States''.

SEC. 111. CONDUCT IN AID OF COUNTERFEITING.

    (a) In General.--Section 474(a) of title 18, United States Code, is 
amended by inserting after the paragraph beginning ``Whoever has in his 
control, custody, or possession any plate'' the following:
    ``Whoever, with intent to defraud, has custody, control, or 
possession of any material that can be used to make, alter, forge, or 
counterfeit any obligation or other security of the United States or 
any part of such obligation or security, except under the authority of 
the Secretary of the Treasury; or''.
    (b) Foreign Obligations and Securities.--Section 481 of title 18, 
United States Code, is amended by inserting after the paragraph 
beginning ``Whoever, with intent to defraud'' the following:
    ``Whoever, with intent to defraud, has custody, control, or 
possession of any material that can be used to make, alter, forge, or 
counterfeit any obligation or other security of any foreign government, 
bank, or corporation; or''.
    (c) Counterfeit Acts.--Section 470 of title 18, United States Code, 
is amended by striking ``or 474'' and inserting ``474, or 474A''.
    (d) Materials Used in Counterfeiting.--Section 474A(b) of title 18, 
United States Code, is amended by striking ``any essentially 
identical'' and inserting ``any thing or material made after or in the 
similitude of any''.

                     TITLE II--TECHNICAL AMENDMENTS

SEC. 201. TECHNICAL AMENDMENTS TO SECTIONS 1956 AND 1957.

    (a) Unlawful Activity.--Section 1956(c) of title 18, United States 
Code, is amended--
            (1) in paragraph (2), by striking ```conducts''' and 
        inserting ```conduct'''; and
            (2) in paragraph (7)(F), by inserting ``, as defined in 
        section 24(a)'' before the semicolon.
    (b) Property From Unlawful Activity.--Section 1957 of title 18, 
United States Code, is amended--
            (1) in subsection (a), by striking ``engages or attempts to 
        engage in'' and inserting ``conducts or attempts to conduct''; 
        and
            (2) in subsection (f)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) the term `conduct' has the meaning given such term 
        under section 1956(c)(2).''.
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