II 112th CONGRESS 1st Session S. 1419 IN THE SENATE OF THE UNITED STATES July 26, 2011 Ms. Klobuchar (for herself, Mr. Udall of New Mexico, and Mrs. Shaheen) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To prevent the use of stored value cards and other electronic fund access means as methods for currency smuggling or money laundering.

1.

Short title

This Act may be cited as the Anti-Cash Smuggling Act of 2011.

2.

Addition of means of access to funds or the value of funds

Chapter 53 of subtitle IV of title 31, United States Code, is amended— (1)by inserting after section 5316 the following new section:

5316A.

Reports on exporting and importing means of access to funds

(a)

Required reports

The Secretary of the Treasury (in this section referred to as the Secretary) shall, by regulation and subject to the limitations of this section, require reports concerning means of access to funds or the value of funds belonging or credited to a person that the person, agent, or bailee can use, including any prepaid or stored value cards to electronically— (1)initiate a transfer of funds; (2)obtain currency in place of funds or the value of funds; or (3)purchase goods or services. (b)

Limitations

Under the regulations issued under subsection (a), a person, or an agent or bailee of that person, shall be required to, file a report under this section only when the person, agent, or bailee knowingly— (1)transports, is about to transport, or has transported a means of access subject to subsection (a) from a place in the United States to or through a place outside of the United States or to a place in the United States from or through a place outside of the United States; or (2)receives a means of access subject to subsection (a) transported into the United States from or through a place outside of the United States. (c)

Filing criteria

A report under this section shall be filed at such time and place as the Secretary prescribes. The report shall contain, to the extent that the Secretary prescribes— (1)the legal capacity in which the person filing the report is acting; (2)the origin, destination, and route of the means of access; (3)when the means of access is not legally and beneficially owned by the person transporting the means of access, or if the person transporting the means of access personally is not going to use it, the identity of the person that gave the means of access to the person transporting it, the identity of the person who is to receive it, or both; (4)the amount and kind of funds or the value of funds to which the means of access provides access, and the person to whom the funds or value of funds belong or are credited; and (5)such additional information as the Secretary deems appropriate to carry out this section. (d)

Exclusion for common carriers

This section does not apply to a common carrier of passengers when a passenger is transporting a means of access subject to subsection (a), or to a common carrier of goods if the shipper does not declare the means of access subject to subsection (a). (e)

Additional authority

The Secretary may prescribe regulations under this section requiring a person that holds funds or the value of funds belonging or credited to another person, and that provides such other person a means of access to such funds or value, to provide information at the time and place and in the manner prescribed by the Secretary in order to facilitate reporting under this section. Such information may include, placing conspicuous markings on any tangible mechanism that constitutes, or together with a personal identification number, code, or other input comprises, a means of access to funds or the value of funds in order to manifest reportable characteristics of the means of access. (f)

Means of access to funds or the value of funds defined

The Secretary of the Treasury shall define the term means of access to funds or the value of funds for purposes of this section. Such definition shall— (1)include means that a person, agent, or bailee can use to electronically— (A)initiate transfers of funds; (B)obtain currency in place of funds or the value of funds; or (C)purchase goods or services; (2)include prepaid or stored value cards; and (3)not include debit cards or credit cards, as such terms are defined under section 603(r)(3) of the Fair Credit Reporting Act (15 U.S.C. 1681a(r)(3)) and under section 103(k) of the Truth in Lending Act (15 U.S.C. 1602(k)), respectively.

; (2)in section 5316— (A)by amending the section heading to read as follows:

5316.

Reports on exporting and importing monetary instruments and access devices

; and(B)by amending subsection (a) to read as follows: (a)

In general

Except as provided in subsection (c), a person or an agent or bailee of the person shall file a report under subsection (b) when the person, agent, or bailee knowingly— (1)transports, is about to transport, or has transported, monetary instruments, funds accessible by means of access defined by regulation under section 5316A, or a combination of monetary instruments and funds accessible by means of access defined by regulation under section 5316A, of more than $10,000 at one time— (A)from a place in the United States to or through a place outside of the United States; or (B)to a place in the United States from or through a place outside of the United States; or (2)receives monetary instruments, funds accessible by means of access defined by regulation under section 5316A, or a combination of monetary instruments and funds accessible by means of access defined by regulation under section 5316A, of more than $10,000 at one time transported into the United States from or through a place outside of the United States. ; (3)in section 5317— (A)in the section heading, by inserting and access devices after instruments; (B)by striking subsection (a) and inserting the following: (a)

Warrants

(1)

In general

The Secretary of the Treasury (in this section referred to as the Secretary) may submit to a court of competent jurisdiction an application for a search warrant, which shall be accompanied by a statement of information in support of the warrant, when the Secretary reasonably believes— (A)a monetary instrument or a tangible mechanism that constitutes, or together with a personal identification number, code, or other input comprises, a means of access to funds or the value of funds is being transported; and (B)a report on the instrument or means of access to funds or the value of funds under section 5316 or 5316A has not been filed or contains a material omission or misstatement. (2)

Grant of application

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. (3)

Rule of construction

This subsection does not affect the authority of the Secretary under any other provision of law. ; (C)in subsection (b), by inserting or section 5316A after section 5316; and (D)in subsection (c)— (i)in paragraph (1)(A)— (I)by inserting 5316A, after 5316,; and (II)by inserting (including any tangible mechanism that constitutes, or together with a personal identification number, code, or other input comprises, a means of access to funds or the value of funds) after involved in the offense; and (ii)in paragraph (2), by inserting 5316A, after 5316,; (4)in section 5324(c)— (A)in the subsection heading, by striking monetary instrument; (B)by inserting or 5316A after section 5316 each place it appears; and (C)in paragraph (3), by inserting or means of access to funds or the value of funds before the period at the end; (5)in section 5332— (A)in the section heading, by striking Bulk cash smuggling and inserting Smuggling of cash, monetary instruments, and means of access to funds or the value of funds; (B)in subsection (a)— (i)in paragraph (1)— (I)by inserting or 5316A after under section 5316; (II)by inserting , or any tangible mechanism that constitutes, or together with a personal identification number, code, or other input comprises, a means of access to funds or the value of funds, after monetary instruments the first place it appears; and (III)by striking such currency or monetary instruments and inserting such currency, other monetary instruments, or tangible mechanism; and (ii)in paragraph (2), by inserting , other monetary instruments, or tangible mechanisms after concealment of currency; and (C)in subsection (c)(3)— (i)by striking currency or other monetary instrument the first place it appears and inserting currency, other monetary instrument, or tangible mechanism that constitutes, or together with a personal identification number, code, or other input comprises, a means of access to funds or the value of funds; (ii)by striking currency or other monetary instrument the second place it appears and inserting currency, other monetary instrument, or tangible mechanism; and (iii)by inserting (including the funds or value of funds accessible by such tangible mechanism at the time of the offense) after facilitate the offense; and (6)in the table of sections— (A)by striking the items relating to sections 5316 and 5317 and inserting the following: 5316. Reports on exporting and importing monetary instruments and access devices. 5316A. Reports on exporting and importing means of access to funds. 5317. Search and forfeiture of monetary instruments and access devices. ; and(B)by striking the item relating to section 5332 and inserting the following: 5332. Smuggling of cash, monetary instruments, and means of access to funds or the value of funds into or out of the United States. .