1.This Act may be cited as the
Stored Value Device Registration and Reporting Act of
2010
.
2.
(a)Definition of
financial institutionParagraph (2) of section 5312(a) of title
31, United States Code is amended—
(1)by redesignating
subparagraphs (Y) and (Z) as subparagraphs (Z) and (AA), respectively;
and
(2)by inserting after
subparagraph (X) the following new subparagraph:
(Y)a person engaged in the business of
providing stored value services, including a stored value system operator, an
issuer of stored value, a seller of stored value, and a redeemer of stored
value;
.
(b)Stored value,
stored value system operator, and device definedSubsection (a) of section 5312 of title 31,
United States Code, is amended by adding at the end the following new
paragraphs:
(7)The term stored
value means funds or monetary value represented in digital electronics
format (whether or not specially encrypted) and stored or capable of storage on
electronic media in such a way as to be retrievable and transferable
electronically.
(8)Stored value
system operator
(A)The term stored value system operator means
any person doing business in the United States that operates a system for
clearing and settling transactions in which the operator’s stored value device
is used to purchase goods or services or to obtain cash. To fall within this
definition, the operator must also have authorized another person (whether
located in the United States or not) to be an issuing institution or acquiring
institution for the operator’s stored value device or must act as its own
issuing institution or acquiring institution.
(B)For
purposes of this paragraph:
(i)The term
issuing institution means a person authorized by the stored value
system operator to issue the operator’s stored value device.
(ii)The term
acquiring institution means a person authorized by the stored
value system operator to contract, directly or indirectly, with merchants or
other persons to process transactions, including cash access transactions,
involving the operator’s stored value device.
(iii)Operator’s
stored value deviceThe term
operator’s stored value device means a stored value device capable
of being used in the United States that—
(I)has been issued by
an issuing institution; and
(II)can be used in
the operator’s stored value system.
(9)The
term device means any card, plate, code, account number,
electronic serial number, mobile identification number, personal identification
number, or other telecommunications service, equipment, or instrument
identifier, or other means of account access that can be used, alone or in
conjunction with another access device, to obtain money, goods, services, or
any other thing of value, or that can be used to initiate a transfer of funds
or of stored value (other than a transfer originated solely by paper
instrument), but a stored value device does not include a credit card or a
debit card, as such terms are defined by the Secretary of the Treasury.
(10)Reportable
stored value deviceThe term reportable stored value
device means a stored value device for which—
(A)the associated
stored value account is reloadable by the device holder;
(B)the device does not comply with minimum
stored value device standards prescribed by the Secretary of the
Treasury;
(C)the device does
not bear the name of the person transporting or possessing the device;
or
(D)the device is
designated as reportable by the Secretary of the
Treasury.
.
3.Registration of
stored value programs
(a)Subchapter II of
chapter 53 of title 31, United States Code, is amended by inserting after
section 5330 the following new section:
5330A.Registration
of stored value programs
(a)Registration
with Secretary of the Treasury required
(1)Any stored value
system operator shall register each stored value program that such person
authorizes to function on such stored value system with the Secretary of the
Treasury not later than the end of the 180-day period beginning on the later
of—
(A)the date of the enactment of the Stored
Value Device Registration and Reporting Act of 2010; or
(B)the end of the 30-day period that begins on
the date on which the first stored value transaction in the stored value
program is processed.
(2)Form and manner
of registrationSubject to the requirements of subsection (b),
the Secretary of the Treasury shall prescribe, by regulation, the form and
manner for registering a stored value program pursuant to paragraph (1).
(3)Persons remain
subject to State lawThis section shall not be construed as
superseding any requirement of State law relating to persons operating stored
value systems or persons engaged in stored value programs within the
jurisdiction of such State.
(4)False and
incomplete informationThe filing of false or materially
incomplete information in connection with the registration of a stored value
program shall be considered as a failure to comply with the requirements of
this subchapter.
(b)The registration
of a stored value program under subsection (a) shall include the following
information:
(1)The name and
location of the operator of the stored value system.
(2)The name and
address of each person who—
(A)issues the stored
value associated with the stored value program;
(B)issues a stored
value device associated with the stored value program; or
(C)provides stored
value processing services to the issuer of the stored value or to the issuer of
the stored value device, or to a person acting in a capacity similar to such
issuer.
(3)The name and
address of any depository institution at which the stored value program
maintains a transaction account (as defined in section 19(b)(1)(C) of the
Federal Reserve Act).
(4)The name and
address of the bank, foreign or domestic, in which the primary transaction
account for the funds representing the stored value sold is held, the bank
routing number, and the bank account number.
(5)The bank
identification number or other system identifier of the stored value devices
for the stored value program.
(6)A description of
the features included in the group of services offered to stored value account
holders in the stored value program, either provided directly through the
stored value system or otherwise, including—
(A)the maximum amount
of value that may be held in a stored value account at any time (maximum total
load amount);
(B)the maximum amount
of funds that may be loaded to the stored value account per load
transaction;
(C)the maximum amount
of funds that may be loaded to a stored value account per day;
(D)the maximum amount
of funds that may be loaded to a stored value account per day through one or
more load purchases in currency;
(E)the maximum amount
of stored value that may be loaded through an automated clearinghouse
transaction;
(F)the maximum amount
that may be loaded through a Fedwire (the realtime gross settlement system
operated by the Board of Governors of the Federal Reserve System)
transaction;
(G)the maximum amount
of stored value that may be redeemed in currency through an over-the-counter
transaction by a system member;
(H)the maximum amount
of stored value that may be redeemed in currency through an automated teller
machine or other mechanical means per transaction;
(I)the maximum amount
of stored value that may be redeemed in currency through an automated teller
machine or other mechanical means per day;
(J)the maximum amount
of value that may be spent though one or more automated clearinghouse
transactions per day; and
(K)the maximum amount
of value that may be spent through Fedwire transactions per day.
(7)A description of
the measures in effect under the program to assure that—
(A)the identity of
the owner of the stored value is accurate;
(B)the person using
the device is the person entitled to do so;
(C)stored value
account holders are informed that participation in a stored value program
constitutes waiver of objection to law enforcement access to the present amount
of stored value accessible through a stored value device; and
(D)the amount of
value available through the device at the time of the inquiry is accessible to
law enforcement.
(8)Such other
information as the Secretary of the Treasury may require.
(c)Eligibility for
registrationNo stored value
program is eligible for registration unless the stored value devices associated
with that program clearly and visibly state on the device, to the extent the
device is a physical device, and to the extent prescribed by the Secretary of
the Treasury—
(1)that the device is
a stored value device;
(2)the name, address,
and telephone number of the issuer of the stored value associated with the
device for use by law enforcement;
(3)the maximum amount
of value that may be held in a stored value account associated with the device
at any time (maximum value);
(4)the bank
identification number of the stored value program that is associated with the
device, if any; and
(5)a clear and
concise descriptive label of the type of stored value program through which the
device is issued.
(d)Stored value
program definedFor purposes
of this section, the term stored value program means any one or
more stored value devices with the same device functionality authorized by a
stored value system operator to be issued by an issuing institution in which
each device in the program is identified by the same bank identification number
or other identifier that relates the stored value device to the issuing
institution.
(e)Civil penalty
for failure To comply with registration requirements
(1)Any person who fails to comply with any requirement of
this section or any regulation prescribed under this section shall be liable to
the United States for a civil penalty of $5,000 for each such violation.
(2)Each day a violation described in paragraph (1)
continues shall constitute a separate violation for purposes of such
paragraph.
(3)Any
penalty imposed under this subsection shall be assessed and collected by the
Secretary of the Treasury in the manner provided in section 5321 and any such
assessment shall be subject to the provisions of such section.
(f)
(1)Any—
(A)stored value
device issued in connection with a stored value program that fails to comply
with any requirement of this section or any regulation prescribed under this
section,
(B)stored value
issued in connection with a stored value program that fails to comply with any
requirement of this section or any regulation prescribed under this section, or
(C)physical stored
value device that does not comply with the physical characteristics required
for registration under this section,
may be
seized and forfeited to the United States.(2)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 offenseFor purposes of this
subsection, any stored value device, and any other property used, or intended
to be used to facilitate the offense (including the funds or value of funds
accessible by the stored value device at the time of the offense), shall be
considered property involved in the offense.
(g)Small Business
and Low-Risk ExemptionThe Secretary of the Treasury shall
prescribe regulations establishing, on the basis of such criteria as the
Secretary determines to be appropriate, a threshold point under which small-
and low-risk stored value programs will not be required to register under this
section.
.
(b)The table of
sections for chapter 53 of title 31, United States Code, is amended by
inserting after the item relating to section 5330 the following new
item:
5330A. Registration of stored value
programs.
.
4.Amendments relating to
reports on exports and imports of monetary instruments, stored value, and
stored value devices
(a)Requirement of
reports on exports and imports of stored value and stored value
devicesSection 5316(a) of
title 31, United States Code, is amended to read as follows:
(a)Except as provided
in subsection (d) of this section, a person or an agent or bailee of the person
shall file a report under subsection (b) of this section when the person,
agent, or bailee knowingly—
(1)transports, is
about to transport, or has transported, monetary instruments, stored value, or
a combination of monetary instruments and stored value, of more than $10,000 at
one time, or reportable stored value devices at one time—
(A)from a place in
the United States to or through a place outside the United States; or
(B)to a place in the
United States from or through a place outside the United States; or
(2)receives monetary
instruments, stored value, or a combination of monetary instruments and stored
value, of more than $10,000 at one time, or reportable stored value devices at
one time, transported into the United States from or through a place outside
the United
States.
.
(b)Report filing
and content requirementsSubsection (b) of section 5316 of title 31,
United States Code, is amended to read as follows:
(b)Report filing
and content requirements
(1)A report under subsection (a) shall be filed at the
time and place the Secretary of the Treasury prescribes.
(2)Monetary
instrument or stored valueA report filed under this subsection
with respect to monetary instruments or stored value shall contain the
following information to the extent the Secretary of the Treasury
prescribes:
(A)The legal capacity
in which the person filing the report is acting.
(B)The origin,
destination, and route of the monetary instruments or stored value.
(C)When the monetary
instruments or stored value are not legally and beneficially owned by the
person transporting the instruments or stored value, or if the person
transporting the instruments or stored value personally is not going to use
them, the identity of the person that gave the instruments or stored value to
the person transporting them, the identity of the person who is to receive
them, or both.
(D)The amount and
kind of monetary instruments or stored value transported.
(E)Such additional
information as the Secretary of the Treasury may require.
(3)A report filed under this subsection with respect to
reportable stored value devices shall contain the following information to the
extent the Secretary of the Treasury prescribes:
(A)The legal capacity
in which the person filing the report is acting.
(B)The origin,
destination, and route of the stored value devices.
(C)When the stored
value devices are not legally and beneficially owned by the person transporting
the stored value devices, or if the person transporting the stored value
devices personally is not going to use the stored value devices, the identity
of the person that gave the stored value devices to the person transporting
them, the identity of the person who is to receive them, or both.
(D)The maximum value
of the devices transported.
(E)The amount of
stored value in the stored value account associated with the devices at the
time they are transported.
(F)The number and
kind of stored value devices transported.
(G)Such additional
information as the Secretary of the Treasury may require.
(4)For purposes of this subsection, the maximum
value
of a stored value device is the maximum monetary value that can
be loaded to the stored value account that the device
accesses.
.
5.Amendments
relating to search and forfeiture of monetary instruments and stored value
devicesSection 5317 of title
31, United States Code, is amended—
(1)in the heading of
such section, by inserting after instruments
the following:
and stored value
devices
; and
(2)by amending
subsection (a) to read as follows:
(a)The Secretary of the Treasury or the Secretary of
Homeland Security may apply to a court of competent jurisdiction for a search
warrant when such Secretary reasonably believes a monetary instrument, stored
value, or a reportable stored value device is being transported and a report on
the instrument or device under section 5316 of this title has not been filed or
contains a material omission or misstatement. Such Secretary shall include a
statement of information in support of the warrant. On a showing of probable
cause, the court may issue a search warrant for a designated person or a
designated or described place or physical object. This subsection does not
affect the authority of the Secretary of the Treasury or the Secretary of
Homeland Security under another
law.
.
6.Amendment of
smuggling provisionsChapter
53 of subtitle IV of title 31, United States Code, is amended by amending
section 5332 to read as follows:
5332.Smuggling of
cash, monetary instruments, stored value, and stored value devices into or out
of the United States
(a)
(1)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 or stored value, or any physical
reportable stored value device, 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, other monetary
instruments, stored value, or physical reportable stored value device 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)For purposes of this section, the concealment of currency,
other monetary instruments, or physical reportable stored value device 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)
(1)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)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.
(3)The
seizure, restraint, and forfeiture of property under this section shall be
governed by section 413 of the Controlled Substances Act.
(4)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)
(1)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 forfeited to the United
States.
(2)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 offenseFor purposes of this
subsection and subsection (b), any currency, other monetary instrument, stored
value, or physical reportable stored value device 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, other monetary instrument, stored value,
or physical reportable stored value device, and any other property used, or
intended to be used to facilitate the offense (including the funds or value of
funds accessible by the stored value device at the time of the offense), shall
be considered property involved in the
offense.
.
7.Stored value
device study
(a)The Secretary of the Treasury, in consultation with the
Attorney General, the Secretary of Homeland Security, and the Director of
National Intelligence, shall carry out a study on stored value devices. Such
study shall include—
(1)an analysis of the
extent to which stored value devices are used for the purpose of
providing—
(A)payments related
to drug trafficking;
(B)payments related
to human trafficking; or
(C)financial support
to terror cells operating within the United States;
(2)an analysis of the
extent to which stored value devices issued by foreign entities are being
utilized in the United States, including the typical countries of origin of
such devices and the typical values of such devices when imported into the
United States;
(3)an analysis of the
extent to which stored value devices issued by United States entities are being
utilized outside the United States, including the typical locations where value
is added to such device and where value is typically subtracted
internationally;
(4)an identification
of any trends in stored value addition and subtraction that appear to be
associated with drug trafficking or human trafficking;
(5)a
list of stored value device types which are now or may soon be used for money
laundering;
(6)recommendations on
methods to collect data related to stored value device transactions for
purposes of law enforcement and intelligence analysis in a manner consistent
with the Foreign Intelligence Surveillance Act and privacy laws; and
(7)an analysis of
whether requiring certain information to be printed, or otherwise made
available, on stored value devices would help customs and law enforcement
officers identify such devices and track the origins of such devices, where
such information could include the name and address of the device issuer, the
maximum value of funds that can be stored on such device, and the fact that the
device is a stored value device.
(b)Not
later than the end of the 180-day period beginning on the date of the enactment
of this Act, the Secretary of the Treasury shall submit a report to the
Congress containing all findings and determinations made in carrying out the
study required under subsection (a).
(c)Stored Value
Device DefinedFor purposes of this section, the term
stored value device shall have the meaning given such term under
section 5312(a)(9) of title 31, United States Code.