[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1883 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 1883
To improve the prohibitions on money laundering, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 18, 2019
Mr. Grassley (for himself, Mrs. Feinstein, Mr. Cornyn, Mr. Whitehouse,
and Ms. Klobuchar) 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Combating Money
Laundering, Terrorist Financing, and Counterfeiting Act of 2019''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Transportation or transhipment of blank checks in bearer form.
Sec. 3. Bulk cash smuggling.
Sec. 4. Section 1957 violations involving commingled funds and
aggregated transactions.
Sec. 5. Charging money laundering as a course of conduct.
Sec. 6. Illegal money services businesses.
Sec. 7. Concealment money laundering.
Sec. 8. Freezing bank accounts of persons arrested for offenses
involving the movement of money across
international borders.
Sec. 9. Prohibiting money laundering through hawalas, other informal
value transfer systems, and closely related
transactions.
Sec. 10. Technical amendment to restore wiretap authority for certain
money laundering and counterfeiting
offenses.
Sec. 11. Making the international money laundering statute apply to tax
evasion.
Sec. 12. Conduct in aid of counterfeiting.
Sec. 13. Administrative subpoenas for money laundering cases.
Sec. 14. Obtaining foreign bank records from banks with United States
correspondent accounts.
Sec. 15. Danger pay allowance.
Sec. 16. Clarification of Secret Service authority to investigate money
laundering.
Sec. 17. Prohibition on concealment of ownership of account.
Sec. 18. Prohibition on concealment of the source of assets in monetary
transactions.
Sec. 19. Rule of construction.
SEC. 2. 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 of more than $10,000 if the
instrument was drawn on an account that contained, or was intended to
contain more than $10,000 at the time--
``(1) the instrument was transported; or
``(2) the instrument was negotiated or was intended to be
negotiated.''.
SEC. 3. BULK CASH SMUGGLING.
Section 5332(b) of title 31, United States Code, is amended--
(1) in paragraph (1), by striking ``5 years'' and inserting
``10 years'';
(2) by redesignating paragraphs (2), (3), and (4), as
paragraphs (3), (4), and (5), respectively;
(3) by inserting after paragraph (1) the following:
``(2) Fine.--
``(A) In general.--Whoever violates this section
shall be fined under title 18.
``(B) Enhanced fine for aggravated cases.--Whoever
violates this section while violating another law of
the United States, other than section 5316 or 5324(c)
of this title, or as a part of a pattern of any
unlawful activity, including a violation of section
5316 or 5324(c) of this title, shall be fined double
the amount provided in subsection (b)(3) or (c)(3) of
section 3571 of title 18.''; and
(4) in paragraph (5), as redesignated, by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
SEC. 4. SECTION 1957 VIOLATIONS INVOLVING COMMINGLED FUNDS AND
AGGREGATED TRANSACTIONS.
Section 1957 of title 18, United States Code, is amended by adding
at the end the following:
``(g) In a prosecution for an offense under this section, the
Government may satisfy the $10,000 monetary transaction value
requirement under subsection (a) by showing that--
``(1) the monetary transaction involved the transfer,
withdrawal, encumbrance, or other disposition of more than
$10,000 from an account in which more than $10,000 in proceeds
of specified unlawful activity was commingled with other funds;
or
``(2) the defendant conducted a series of monetary
transactions in amounts of not more than $10,000 that--
``(A) exceeded $10,000 in the aggregate; and
``(B) were closely related to each other as
demonstrated by factors such as--
``(i) the time period between the
transactions;
``(ii) the identity of the parties
involved;
``(iii) the nature or purpose of the
transactions; and
``(iv) the manner in which the transactions
were conducted.''.
SEC. 5. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.
Section 1956 of title 18, United States Code, is amended--
(1) in subsection (h), by striking ``or section 1957'' and
inserting ``, section 1957, or section 1960''; and
(2) 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.''.
SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES.
(a) In General.--Section 1960 of title 18, United States Code, is
amended by striking subsections (a) and (b) and inserting the
following:
``(a) Offense.--Whoever knowingly conducts, controls, manages,
supervises, directs, or owns all or part of a covered money services
business that--
``(1) is operated without an appropriate license in a State
where such operation is punishable as a misdemeanor or a felony
under State law, whether or not the person knows that the
operation is required to be licensed or that the operation is
so punishable;
``(2) fails to comply with the money services business
registration requirements under section 5330 of title 31, or
regulations prescribed under that section, whether or not the
person knows that the operation is required to comply with
those registration requirements; or
``(3) otherwise engages in a transaction involving funds
that the person knows have been derived from a criminal offense
or are intended to be used to promote or support unlawful
activity,
shall be punished as provided in subsection (b).
``(b) Criminal Penalty.--Any person who violates--
``(1) subsection (a) shall be fined in accordance with this
title, imprisoned for not more than 5 years, or both; and
``(2) subsection (a) by conducting, controlling, managing,
supervising, directing, or owning all or part of a covered
money services business that engaged in activity as a covered
money services business involving more than $1,000,000 during a
12-month period, or by engaging in a transaction or
transactions involving more than $1,000,000 during a 12-month
period, shall be fined double the amount provided in subsection
(b)(3) or (c)(3) (as applicable) of section 3571, imprisoned
for not more than 10 years, or both.
``(c) Definitions.--In this section--
``(1) the term `covered money services business' means a
money services business that--
``(A) operates on behalf of the public; and
``(B) affects interstate or foreign commerce in any
manner or degree;
``(2) the term `money services business'--
``(A) has the meaning given the term in section
5330 of title 31 and any regulations prescribed under
that section; and
``(B) includes a person that engages in the
transfer, transportation, or exchange of currency,
funds, or value that substitutes for currency by any
and all means, even when not performed for profit; and
``(3) the term `State' means any State of the United
States, the District of Columbia, the Northern Mariana Islands,
and any commonwealth, territory, or possession of the United
States.''.
(b) Technical and Conforming Amendments.--
(1) Section 1960 of title 18, united states code.--
(A) Section heading.--Section 1960 of title 18,
United States Code, is amended in the section heading--
(i) by striking ``unlicensed'' and
inserting ``illegal''; and
(ii) by striking ``transmitting'' and
inserting ``services''.
(B) Table of sections.--The table of sections for
chapter 95 of title 18, United States Code, is amended
by striking the item relating to section 1960 and
inserting the following:
``1960. Prohibition of illegal money services businesses.''.
(2) Section 5330 of title 31, united states code.--
(A) Headings.--Section 5330 of title 31, United
States Code, is amended--
(i) in the section heading, by striking
``transmitting'' and inserting ``services'';
(ii) in subsection (c)--
(I) in the subsection heading, by
striking ``Transmitting'' and inserting
``Services'';
(II) in paragraph (1), in the
paragraph heading, by striking
``transmitting'' and inserting
``services''; and
(III) in paragraph (2), in the
paragraph heading, by striking
``transmitting'' and inserting
``services''; and
(iii) in subsection (d)(1), in the
paragraph heading, by striking ``transmitting''
and inserting ``services''.
(B) Text.--Section 5330 of title 31, United States
Code, is amended--
(i) by striking ``money transmitting
business'' each place that term appears and
inserting ``money services business''; and
(ii) in subsection (a)(3), by striking
``money transmitting businesses'' and inserting
``a money services business''.
(C) Table of sections.--The table of sections for
subchapter II of chapter 53 of title 31, United States
Code, is amended by striking the item relating to
section 5330 and inserting the following:
``5330. Registration of money services businesses.''.
SEC. 7. CONCEALMENT MONEY LAUNDERING.
Section 1956(a) of title 18, United States Code, is amended--
(1) in paragraph (1)(B), by striking ``knowing that'' and
all that follows through ``Federal law,'' and inserting the
following:
``(B) knowing that the transaction--
``(i) conceals or disguises, or is intended to
conceal or disguise, the nature, source, location,
ownership, or control of the proceeds of some form of
unlawful activity; or
``(ii) avoids, or is intended to avoid, a
transaction reporting requirement under State or
Federal law,''; and
(2) in paragraph (2)(B), by striking ``knowing that'' and
all that follows through ``Federal law,'' and inserting the
following:
``(B) knowing that--
``(i) the monetary instrument or funds involved in
the transportation, transmission, or transfer represent
the proceeds of some form of unlawful activity; and
``(ii) the transportation, transmission, or
transfer--
``(I) conceals or disguises, or is intended
to conceal or disguise, the nature, source,
location, ownership, or control of the proceeds
of some form of unlawful activity; or
``(II) avoids, or is intended to avoid, a
transaction reporting requirement under State
or Federal law,''.
SEC. 8. FREEZING BANK ACCOUNTS OF PERSONS ARRESTED FOR OFFENSES
INVOLVING THE MOVEMENT OF MONEY ACROSS INTERNATIONAL
BORDERS.
Section 981(b) of title 18, United States Code, is amended by
adding at the end the following:
``(5)(A) If a person is arrested or charged in connection with an
offense described in subparagraph (C) involving the movement of funds
into or out of the United States, the Attorney General may apply to any
Federal judge or magistrate judge in the district in which the arrest
is made or the charges are filed for an ex parte order restraining any
account held by the person arrested or charged for not more than 30
days, except that such 30-day time period may be extended for good
cause shown at a hearing conducted in the manner provided in Rule 43(c)
of the Federal Rules of Civil Procedure. The court may receive and
consider evidence and information submitted by the Government that
would be inadmissible under the Federal Rules of Evidence.
``(B) The application for the restraining order referred to in
subparagraph (A) shall--
``(i) identify the offense for which the person has been
arrested or charged;
``(ii) identify the location and description of the
accounts to be restrained; and
``(iii) state that the restraining order is needed to
prevent the removal of the funds in the account by the person
arrested or charged, or by other persons associated with that
person, during the time needed by the Government to conduct
such investigation as may be necessary to establish whether
there is probable cause to believe that the funds in the
accounts are subject to forfeiture in connection with the
commission of any criminal offense.
``(C) A restraining order may be issued under subparagraph (A) if a
person is arrested or charged with any offense for which forfeiture is
authorized under--
``(i) this title;
``(ii) title 31; or
``(iii) the Controlled Substances Act (21 U.S.C. 801 et
seq.).
``(D) For purposes of this paragraph--
``(i) the term `account' includes any safe deposit box and
any account (as defined in paragraphs (1) and (2) of section
5318A(e) of title 31) at any financial institution; and
``(ii) the term `account held by the person arrested or
charged' includes an account held in the name of that person,
and any account over which that person has effective control as
a signatory or otherwise.
``(E) Restraint under this paragraph shall not be deemed a seizure
for purposes of section 983(a).
``(F) A restraining order issued under this paragraph may be
executed in any district in which the subject account is found, or
transmitted to the central authority of any foreign State for service
in accordance with any treaty or other international agreement.''.
SEC. 9. PROHIBITING MONEY LAUNDERING THROUGH HAWALAS, OTHER INFORMAL
VALUE TRANSFER SYSTEMS, AND CLOSELY RELATED TRANSACTIONS.
The matter following section 1956(a)(1)(B)(ii) of title 18, United
States Code, is amended by striking ``For purposes of this paragraph, a
financial transaction'' and inserting ``For purposes of this paragraph
and section 1957, a financial transaction or a monetary transaction, as
applicable,''.
SEC. 10. TECHNICAL AMENDMENT TO RESTORE WIRETAP AUTHORITY FOR CERTAIN
MONEY LAUNDERING AND COUNTERFEITING OFFENSES.
(a) Currency Reporting Offenses.--Section 2516(1)(g) of title 18,
United States Code, is amended by striking ``or section 5324 of title
31, United States Code (relating to structuring transactions to evade
reporting requirement prohibited)'' and inserting ``or section 5324,
5331, or 5332 of that title (relating to evasion of Federal transaction
reporting requirements)''.
(b) Money Laundering.--Section 2516(1)(c) of title 18, United
States Code, is amended by inserting ``section 1960 (relating to
illegal money services businesses),'' before ``section 659''.
(c) Counterfeiting.--Section 2516(1)(d) of title 18, United States
Code, is amended by striking ``or 473'' and inserting ``473, 474, or
474A''.
SEC. 11. MAKING THE INTERNATIONAL MONEY LAUNDERING STATUTE APPLY TO TAX
EVASION.
Section 1956(a)(2)(A) of title 18, United States Code, is amended--
(1) by inserting ``(i)'' before ``with the intent to
promote''; and
(2) by adding at the end the following:
``(ii) with the intent to engage in conduct
constituting a violation of section 7201 or 7206 of the
Internal Revenue Code of 1986; or''.
SEC. 12. 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, tool, machinery, or other equipment 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, tool, machinery, or other equipment 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) Strengthening Deterrents to Counterfeiting.--Section 474A of
title 18, United States Code, is amended--
(1) in subsection (a), by inserting ``, custody,'' after
``control'';
(2) in subsection (b)--
(A) by inserting ``, custody,'' after ``control'';
and
(B) by striking ``any essentially identical feature
or device adapted to the making of any such obligation
or security,'' and inserting ``any material or other
thing made after or in similitude of any such
deterrent,''; and
(3) by adding at the end the following:
``(d) Whoever has in his control, custody, or possession any
obligation or security of the United States or any foreign government
from which the ink or other distinctive counterfeit deterrent has been
completely or partially removed, except under the authority of the
Secretary of the Treasury, is guilty of a class B felony.''.
SEC. 13. ADMINISTRATIVE SUBPOENAS FOR MONEY LAUNDERING CASES.
Section 3486(a) of title 18, United States Code, is amended--
(1) in paragraph (1)(A)--
(A) in the matter preceding clause (i), by striking
``of'' and inserting ``relating to'';
(B) in clause (ii), by striking ``or'';
(C) in clause (iii)--
(i) by striking ``section 3056'' and
inserting ``section 3056(a)''; and
(ii) by striking ``the Treasury,'' and
inserting ``Homeland Security; or''; and
(D) by inserting after clause (iii) the following:
``(iv) an offense under section 1956, 1957,
or 1960 of this title, or section 5313, 5316,
5324, 5331, or 5332 of title 31, or an offense
against a foreign nation constituting specified
unlawful activity under section 1956 of this
title, or a criminal or civil forfeiture based
upon an offense enumerated in this subparagraph
or for which enforcement could be brought under
section 2467 of title 28, the Attorney General,
the Secretary of Homeland Security, or the
Secretary of the Treasury,''; and
(2) in paragraph (6)(B)--
(A) in clause (iii), by striking ``or'' at the end;
(B) in clause (iv), by striking the period and
inserting ``; or''; and
(C) by adding at the end following:
``(v) dissipation, destruction, removal, transfer, damage,
encumbrance, or other unavailability of property that may
become subject to forfeiture or an enforcement action under
section 2467 of title 28.''.
SEC. 14. OBTAINING FOREIGN BANK RECORDS FROM BANKS WITH UNITED STATES
CORRESPONDENT ACCOUNTS.
(a) Grand Jury and Trial Subpoenas.--Section 5318(k) of title 31,
United States Code, is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraph (B) as
subparagraph (C); and
(B) by inserting after subparagraph (A) the
following:
``(B) Covered financial institution.--The term
`covered financial institution' means an institution
referred to in subsection (j)(1).''; and
(2) by striking paragraph (3) and inserting the following:
``(3) Foreign bank records.--
``(A) Subpoena of records.--
``(i) In general.--Notwithstanding
subsection (b), the Secretary of the Treasury
or the Attorney General may issue a subpoena to
any foreign bank that maintains a correspondent
account in the United States and request any
records relating to the correspondent account
or any account at the foreign bank, including
records maintained outside of the United
States, that are the subject of any--
``(I) investigation of a violation
of a criminal law of the United States;
or
``(II) civil forfeiture action.
``(ii) Production of records.--The foreign
bank on which a subpoena described in clause
(i) is served shall produce all requested
records and authenticate all requested records
with testimony in the manner described in--
``(I) rule 902(12) of the Federal
Rules of Evidence; or
``(II) section 3505 of title 18.
``(iii) Issuance and service of subpoena.--
A subpoena described in clause (i)--
``(I) shall designate--
``(aa) a return date; and
``(bb) the judicial
district in which the related
investigation is proceeding;
and
``(II) may be served--
``(aa) in person;
``(bb) by mail or fax in
the United States if the
foreign bank has a
representative in the United
States; or
``(cc) in a foreign country
under any mutual legal
assistance treaty, multilateral
agreement, or other request for
international legal or law
enforcement assistance.
``(iv) Relief from subpoena.--
``(I) In general.--At any time
before the return date of the subpoena
described in clause (i), the foreign
bank on which the subpoena is served
may petition the district court of the
United States for the judicial district
in which the related investigation is
proceeding, as designated in the
subpoena, to modify or quash--
``(aa) the subpoena; or
``(bb) the prohibition
against disclosure described in
subparagraph (C).
``(II) Conflict with foreign
secrecy or confidentiality.--An
assertion that compliance with the
subpoena would conflict with a
provision of foreign secrecy or
confidentiality law shall not be a
basis for quashing or modifying the
subpoena.
``(B) Acceptance of service.--
``(i) Maintaining records in the united
states.--Any covered financial institution that
maintains a correspondent account in the United
States for a foreign bank shall maintain
records in the United States identifying--
``(I) the owners of such foreign
bank; and
``(II) the name and address of a
person who--
``(aa) resides in the
United States; and
``(bb) is authorized to
accept service of legal process
for records covered under this
subsection.
``(ii) Law enforcement request.--Upon
receipt of a written request from a Federal law
enforcement officer for information required to
be maintained under this paragraph, a covered
financial institution shall provide the
information to the requesting officer not later
than 7 days after receipt of the request.
``(C) Nondisclosure of subpoena.--
``(i) In general.--No officer, director,
partner, employee, or shareholder of, or agent
or attorney for, a foreign bank on which a
subpoena is served under this paragraph shall,
directly or indirectly, notify any account
holder involved or any person named in the
subpoena issued under subparagraph (A)(i) and
served on such an institution about the
existence or contents of such subpoena.
``(ii) Damages.--Upon application by the
Attorney General for a violation of this
subparagraph, a foreign bank on which a
subpoena is served under this paragraph shall
be liable to the United States Government for a
civil penalty in an amount equal to--
``(I) double the amount of the
suspected criminal proceeds sent
through the correspondent account of
the foreign bank in the related
investigation; or
``(II) if no such proceeds can be
identified, $250,000.
``(D) Enforcement.--
``(i) In general.--If a foreign bank fails
to obey a subpoena issued under subparagraph
(A)(i), the Attorney General may invoke the aid
of the district court of the United States for
the judicial district in which the
investigation or related proceeding is
occurring to compel compliance with the
subpoena.
``(ii) Court orders and contempt of
court.--The court may--
``(I) issue an order requiring the
foreign bank to appear before the
Secretary of the Treasury or the
Attorney General to produce--
``(aa) certified records,
in accordance with--
``(AA) rule 902(12)
of the Federal Rules of
Evidence; or
``(BB) section 3505
of title 18; or
``(bb) testimony regarding
the production of such records;
and
``(II) punish any failure to obey
an order issued under subclause (I) as
contempt of court.
``(iii) Service of process.--All process in
a case under this subparagraph shall be served
on the foreign bank in the same manner as
described in subparagraph (A)(iii).
``(E) Termination of correspondent relationship.--
``(i) Termination upon receipt of notice.--
A covered financial institution shall terminate
any correspondent relationship with a foreign
bank not later than 10 business days after the
date on which the covered financial institution
receives written notice from the Secretary of
the Treasury or the Attorney General if, after
consultation with the other, the Secretary of
the Treasury or Attorney General, as
applicable, determines that the foreign bank
has failed--
``(I) to comply with a subpoena
issued under subparagraph (A)(i); or
``(II) to prevail in proceedings
before--
``(aa) the appropriate
district court of the United
States after challenging such a
subpoena under subparagraph
(A)(iv)(I); or
``(bb) a court of appeals
of the United States after
appealing a decision of a
district court of the United
States under item (aa).
``(ii) Limitation on liability.--A covered
financial institution shall not be liable to
any person in any court or arbitration
proceeding for terminating a correspondent
relationship under this subparagraph or
complying with a nondisclosure order under
subparagraph (C).
``(iii) Failure to terminate
relationship.--A covered financial institution
that fails to terminate a correspondent
relationship under clause (i) shall be liable
for a civil penalty in an amount that is not
more than $10,000 for each day that the covered
financial institution fails to terminate the
relationship.
``(F) Enforcement of civil penalties.--Upon
application by the United States, any funds held in the
correspondent account of a foreign bank that is
maintained in the United States with a covered
financial institution may be seized by the United
States to satisfy any civil penalties that are
imposed--
``(i) under subparagraph (C)(ii); or
``(ii) by the court for contempt under
subparagraph (D).''.
(b) 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 a'' and inserting ``, a''; and
(2) by inserting ``, or a subpoena issued in accordance
with section 5318 of title 31, United States Code, or section
3486 of title 18, United States Code'' after ``grand jury''.
(c) Obstruction of Justice.--Section 1510(b)(3)(B) of title 18,
United States Code, is amended--
(1) in the matter preceding clause (i), by striking ``or a
Department of Justice subpoena (issued under section 3486 of
title 18)'' and inserting ``, a subpoena issued under section
3486 of this title, or an order or subpoena issued in
accordance with section 3512 of this title, section 5318 of
title 31, or section 1782 of title 28,''; and
(2) in clause (i) by inserting ``, 1960, or an offense
against a foreign nation constituting specified unlawful
activity under section 1956, or a foreign offense for which
enforcement of a foreign forfeiture judgment could be brought
under section 2467 of title 28'' after ``1957''.
(d) Right to Financial Privacy Act.--Section 1120(b)(1)(A) of the
Right to Financial Privacy Act of 1978 (12 U.S.C. 3420(b)(1)(A)) is
amended--
(1) by striking ``or 1957'' and inserting ``, 1957, or
1960''; and
(2) by striking ``and 5324'' and inserting ``, 5322, 5324,
5331, and 5332''.
SEC. 15. DANGER PAY ALLOWANCE.
Section 151 of the Foreign Relations Authorization Act, Fiscal
Years 1990 and 1991 (5 U.S.C. 5928 note) is amended by striking ``Drug
Enforcement Administration or Federal Bureau of Investigation'' and
inserting ``Drug Enforcement Administration, the Federal Bureau of
Investigation, U.S. Immigration and Customs Enforcement, U.S. Customs
and Border Protection, or the United States Secret Service''.
SEC. 16. CLARIFICATION OF SECRET SERVICE AUTHORITY TO INVESTIGATE MONEY
LAUNDERING.
Section 3056(b)(3) of title 18, United States Code, is amended--
(1) by inserting ``money laundering, structured
transactions,'' after ``documents or devices,''; and
(2) by striking ``federally insured''.
SEC. 17. PROHIBITION ON CONCEALMENT OF OWNERSHIP OF ACCOUNT.
(a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, is amended by adding at the end the following:
``Sec. 5333. Prohibition on concealment of ownership of account
``(a) In General.--No person shall knowingly conceal, falsify, or
misrepresent, or attempt to conceal, falsify, or misrepresent, from or
to a financial institution, a material fact concerning the ownership or
control of an account or assets held in an account with a financial
institution.
``(b) Penalties.--A person convicted of an offense under subsection
(a), or a conspiracy to commit such offense, shall be imprisoned for
not more than 10 years, fined not more than $1,000,000, or both.
``(c) Forfeiture.--
``(1) Criminal forfeiture.--
``(A) In general.--The court, in imposing penalties
under subsection (b), shall order that the defendant
forfeit to the United States any property involved in
the offense, or a conspiracy to commit such offense,
and any property traceable thereto.
``(B) Procedure.--Section 413 of the Controlled
Substances Act (21 U.S.C. 853) shall govern the
seizure, restraint, and forfeiture of property under
this paragraph.
``(2) Civil forfeiture.--
``(A) In general.--Any property involved in a
violation of subsection (a), or a conspiracy to commit
such violation, and any property traceable thereto may
be seized and forfeited to the United States.
``(B) Procedure.--Seizures and forfeitures under
this paragraph shall be governed by the provisions of
chapter 46 of title 18 relating to civil forfeitures,
except that such duties, under customs laws described
in section 981(d) of title 18, given to the Secretary
of the Treasury shall be performed by such officers,
agents, and other persons as designated by the
Secretary of Homeland Security or the Attorney General.
``(3) Treatment of certain property as involved in the
offense.--In this subsection, the term `property involved in'
includes any assets credited to, attempted to be credited to,
or contained in the account.
``(d) Financial Institution.--In this section, the term `financial
institution' means any entity defined under section 5312(a)(2), or the
regulations promulgated under this title, that is required to--
``(1) implement a customer identification program under
this title, or the regulations promulgated under this title; or
``(2) conduct customer due diligence under this title, or
the regulations promulgated under this title.''.
(b) Table of Sections.--The table of sections for subchapter II of
chapter 53 of title 31, United States Code, is amended by adding at the
end the following:
``5333. Prohibition on concealment of ownership of account.''.
SEC. 18. PROHIBITION ON CONCEALMENT OF THE SOURCE OF ASSETS IN MONETARY
TRANSACTIONS.
(a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, as amended by section 17 of this Act, is amended by adding
at the end the following:
``Sec. 5334. Prohibition on concealment of the source of assets in
monetary transactions
``(a) In General.--No person shall knowingly conceal, falsify, or
misrepresent, or attempt to conceal, falsify, or misrepresent, from or
to a financial institution, a material fact concerning the ownership or
control of assets involved in a monetary transaction if--
``(1) the person or entity who owns or controls such assets
is a senior foreign political figure, or any immediate family
member or close associate of a senior foreign political figure,
as set forth in this title or the regulations promulgated under
this title; and
``(2) the aggregate value of the assets involved in one or
more such transactions is not less than $1,000,000.
``(b) Source of Funds.--No person shall knowingly conceal, falsify,
or misrepresent, or attempt to conceal, falsify, or misrepresent, from
or to a financial institution, a material fact concerning the source of
funds in a monetary transaction that--
``(1) involves an entity found to be a primary money
laundering concern under section 5318A or the regulations
promulgated under this title; and
``(2) violates the prohibitions or conditions prescribed
under section 5318A(b)(5) or the regulations promulgated under
this title.
``(c) Penalties.--A person convicted of an offense under subsection
(a) or (b), or a conspiracy to commit such offense, shall be imprisoned
for not more than 10 years, fined not more than $1,000,000, or both.
``(d) Forfeiture.--
``(1) Criminal forfeiture.--
``(A) In general.--The court, in imposing sentence
under subsection (c), shall order that the defendant
forfeit to the United States any property involved in
the offense and any property traceable thereto.
``(B) Procedure.--The seizure, restraint, and
forfeiture of property under this paragraph shall be
governed by section 413 of the Controlled Substances
Act (21 U.S.C. 853).
``(2) Civil forfeiture.--
``(A) In general.--Any property involved in a
violation of subsection (a) or (b), or a conspiracy to
commit such violation, and any property traceable
thereto may be seized and forfeited to the United
States.
``(B) Procedure.--Seizures and forfeitures under
this paragraph shall be governed by the provisions of
chapter 46 of title 18, relating to civil forfeitures,
except that such duties, under the customs laws
described in section 981(d) of title 18, given to the
Secretary of the Treasury shall be performed by such
officers, agents, and other persons as may be
designated for that purpose by the Secretary of
Homeland Security or the Attorney General.
``(e) Definitions.--In this section--
``(1) the term `financial institution' has the meaning
given the term in section 5312(a)(2) of this title; and
``(2) the term `monetary transaction' means the deposit,
withdrawal, transfer, or exchange, in or affecting interstate
or foreign commerce, of funds or a monetary instrument (as
defined in section 1956(c)(5) of title 18) by, through, or to a
financial institution (as defined in section 1956(c)(6) of
title 18)--
``(A) including any transaction that would be a
financial transaction under section 1956(c)(4)(B) of
title 18; and
``(B) not including any transaction necessary to
preserve a person's right to representation as
guaranteed by the Sixth Amendment to the Constitution
of the United States.''.
(b) Table of Sections.--The table of sections for subchapter II of
chapter 53 of title 31, United States Code, as amended by section 17 of
this Act, is amended by adding at the end the following:
``5334. Prohibition on concealment of the source of assets in monetary
transactions.''.
SEC. 19. RULE OF CONSTRUCTION.
Nothing in this Act, or any amendment made by this Act, shall be
construed to apply to the authorized law enforcement, protective, or
intelligence activities of the United States or of an intelligence
agency of the United States.
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