[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1883 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 160
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

                             July 23, 2019

               Reported by Mr. Graham, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Combating 
Money Laundering, Terrorist Financing, and Counterfeiting Act of 
2019''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Transportation or transhipment of blank checks in 
                            bearer form.
<DELETED>Sec. 3. Bulk cash smuggling.
<DELETED>Sec. 4. Section 1957 violations involving commingled funds and 
                            aggregated transactions.
<DELETED>Sec. 5. Charging money laundering as a course of conduct.
<DELETED>Sec. 6. Illegal money services businesses.
<DELETED>Sec. 7. Concealment money laundering.
<DELETED>Sec. 8. Freezing bank accounts of persons arrested for 
                            offenses involving the movement of money 
                            across international borders.
<DELETED>Sec. 9. Prohibiting money laundering through hawalas, other 
                            informal value transfer systems, and 
                            closely related transactions.
<DELETED>Sec. 10. Technical amendment to restore wiretap authority for 
                            certain money laundering and counterfeiting 
                            offenses.
<DELETED>Sec. 11. Making the international money laundering statute 
                            apply to tax evasion.
<DELETED>Sec. 12. Conduct in aid of counterfeiting.
<DELETED>Sec. 13. Administrative subpoenas for money laundering cases.
<DELETED>Sec. 14. Obtaining foreign bank records from banks with United 
                            States correspondent accounts.
<DELETED>Sec. 15. Danger pay allowance.
<DELETED>Sec. 16. Clarification of Secret Service authority to 
                            investigate money laundering.
<DELETED>Sec. 17. Prohibition on concealment of ownership of account.
<DELETED>Sec. 18. Prohibition on concealment of the source of assets in 
                            monetary transactions.
<DELETED>Sec. 19. Rule of construction.

<DELETED>SEC. 2. TRANSPORTATION OR TRANSHIPMENT OF BLANK CHECKS IN 
              BEARER FORM.</DELETED>

<DELETED>    Section 5316 of title 31, United States Code, is amended 
by adding at the end the following:</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) the instrument was transported; or</DELETED>
        <DELETED>    ``(2) the instrument was negotiated or was 
        intended to be negotiated.''.</DELETED>

<DELETED>SEC. 3. BULK CASH SMUGGLING.</DELETED>

<DELETED>    Section 5332(b) of title 31, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``5 years'' and 
        inserting ``10 years'';</DELETED>
        <DELETED>    (2) by redesignating paragraphs (2), (3), and (4), 
        as paragraphs (3), (4), and (5), respectively;</DELETED>
        <DELETED>    (3) by inserting after paragraph (1) the 
        following:</DELETED>
        <DELETED>    ``(2) Fine.--</DELETED>
                <DELETED>    ``(A) In general.--Whoever violates this 
                section shall be fined under title 18.</DELETED>
                <DELETED>    ``(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</DELETED>
        <DELETED>    (4) in paragraph (5), as redesignated, by striking 
        ``paragraph (2)'' and inserting ``paragraph (3)''.</DELETED>

<DELETED>SEC. 4. SECTION 1957 VIOLATIONS INVOLVING COMMINGLED FUNDS AND 
              AGGREGATED TRANSACTIONS.</DELETED>

<DELETED>    Section 1957 of title 18, United States Code, is amended 
by adding at the end the following:</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) the defendant conducted a series of monetary 
        transactions in amounts of not more than $10,000 that--
        </DELETED>
                <DELETED>    ``(A) exceeded $10,000 in the aggregate; 
                and</DELETED>
                <DELETED>    ``(B) were closely related to each other 
                as demonstrated by factors such as--</DELETED>
                        <DELETED>    ``(i) the time period between the 
                        transactions;</DELETED>
                        <DELETED>    ``(ii) the identity of the parties 
                        involved;</DELETED>
                        <DELETED>    ``(iii) the nature or purpose of 
                        the transactions; and</DELETED>
                        <DELETED>    ``(iv) the manner in which the 
                        transactions were conducted.''.</DELETED>

<DELETED>SEC. 5. CHARGING MONEY LAUNDERING AS A COURSE OF 
              CONDUCT.</DELETED>

<DELETED>    Section 1956 of title 18, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (h), by striking ``or section 
        1957'' and inserting ``, section 1957, or section 1960''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES.</DELETED>

<DELETED>    (a) In General.--Section 1960 of title 18, United States 
Code, is amended by striking subsections (a) and (b) and inserting the 
following:</DELETED>
<DELETED>    ``(a) Offense.--Whoever knowingly conducts, controls, 
manages, supervises, directs, or owns all or part of a covered money 
services business that--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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,</DELETED>
<DELETED>shall be punished as provided in subsection (b).</DELETED>
<DELETED>    ``(b) Criminal Penalty.--Any person who violates--
</DELETED>
        <DELETED>    ``(1) subsection (a) shall be fined in accordance 
        with this title, imprisoned for not more than 5 years, or both; 
        and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `covered money services business' 
        means a money services business that--</DELETED>
                <DELETED>    ``(A) operates on behalf of the public; 
                and</DELETED>
                <DELETED>    ``(B) affects interstate or foreign 
                commerce in any manner or degree;</DELETED>
        <DELETED>    ``(2) the term `money services business'--
        </DELETED>
                <DELETED>    ``(A) has the meaning given the term in 
                section 5330 of title 31 and any regulations prescribed 
                under that section; and</DELETED>
                <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 1960 of title 18, united states 
        code.--</DELETED>
                <DELETED>    (A) Section heading.--Section 1960 of 
                title 18, United States Code, is amended in the section 
                heading--</DELETED>
                        <DELETED>    (i) by striking ``unlicensed'' and 
                        inserting ``illegal''; and</DELETED>
                        <DELETED>    (ii) by striking ``transmitting'' 
                        and inserting ``services''.</DELETED>
                <DELETED>    (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:</DELETED>

<DELETED>``1960. Prohibition of illegal money services businesses.''.
        <DELETED>    (2) Section 5330 of title 31, united states 
        code.--</DELETED>
                <DELETED>    (A) Headings.--Section 5330 of title 31, 
                United States Code, is amended--</DELETED>
                        <DELETED>    (i) in the section heading, by 
                        striking ``transmitting'' and inserting 
                        ``services'';</DELETED>
                        <DELETED>    (ii) in subsection (c)--</DELETED>
                                <DELETED>    (I) in the subsection 
                                heading, by striking ``Transmitting'' 
                                and inserting ``Services'';</DELETED>
                                <DELETED>    (II) in paragraph (1), in 
                                the paragraph heading, by striking 
                                ``transmitting'' and inserting 
                                ``services''; and</DELETED>
                                <DELETED>    (III) in paragraph (2), in 
                                the paragraph heading, by striking 
                                ``transmitting'' and inserting 
                                ``services''; and</DELETED>
                        <DELETED>    (iii) in subsection (d)(1), in the 
                        paragraph heading, by striking ``transmitting'' 
                        and inserting ``services''.</DELETED>
                <DELETED>    (B) Text.--Section 5330 of title 31, 
                United States Code, is amended--</DELETED>
                        <DELETED>    (i) by striking ``money 
                        transmitting business'' each place that term 
                        appears and inserting ``money services 
                        business''; and</DELETED>
                        <DELETED>    (ii) in subsection (a)(3), by 
                        striking ``money transmitting businesses'' and 
                        inserting ``a money services 
                        business''.</DELETED>
                <DELETED>    (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:</DELETED>

<DELETED>``5330. Registration of money services businesses.''.

<DELETED>SEC. 7. CONCEALMENT MONEY LAUNDERING.</DELETED>

<DELETED>    Section 1956(a) of title 18, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1)(B), by striking ``knowing 
        that'' and all that follows through ``Federal law,'' and 
        inserting the following:</DELETED>
        <DELETED>    ``(B) knowing that the transaction--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(ii) avoids, or is intended to avoid, a 
                transaction reporting requirement under State or 
                Federal law,''; and</DELETED>
        <DELETED>    (2) in paragraph (2)(B), by striking ``knowing 
        that'' and all that follows through ``Federal law,'' and 
        inserting the following:</DELETED>
        <DELETED>    ``(B) knowing that--</DELETED>
                <DELETED>    ``(i) the monetary instrument or funds 
                involved in the transportation, transmission, or 
                transfer represent the proceeds of some form of 
                unlawful activity; and</DELETED>
                <DELETED>    ``(ii) the transportation, transmission, 
                or transfer--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(II) avoids, or is intended to 
                        avoid, a transaction reporting requirement 
                        under State or Federal law,''.</DELETED>

<DELETED>SEC. 8. FREEZING BANK ACCOUNTS OF PERSONS ARRESTED FOR 
              OFFENSES INVOLVING THE MOVEMENT OF MONEY ACROSS 
              INTERNATIONAL BORDERS.</DELETED>

<DELETED>    Section 981(b) of title 18, United States Code, is amended 
by adding at the end the following:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(B) The application for the restraining order referred 
to in subparagraph (A) shall--</DELETED>
        <DELETED>    ``(i) identify the offense for which the person 
        has been arrested or charged;</DELETED>
        <DELETED>    ``(ii) identify the location and description of 
        the accounts to be restrained; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(i) this title;</DELETED>
        <DELETED>    ``(ii) title 31; or</DELETED>
        <DELETED>    ``(iii) the Controlled Substances Act (21 U.S.C. 
        801 et seq.).</DELETED>
<DELETED>    ``(D) For purposes of this paragraph--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(E) Restraint under this paragraph shall not be deemed a 
seizure for purposes of section 983(a).</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 9. PROHIBITING MONEY LAUNDERING THROUGH HAWALAS, OTHER 
              INFORMAL VALUE TRANSFER SYSTEMS, AND CLOSELY RELATED 
              TRANSACTIONS.</DELETED>

<DELETED>    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,''.</DELETED>

<DELETED>SEC. 10. TECHNICAL AMENDMENT TO RESTORE WIRETAP AUTHORITY FOR 
              CERTAIN MONEY LAUNDERING AND COUNTERFEITING 
              OFFENSES.</DELETED>

<DELETED>    (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)''.</DELETED>
<DELETED>    (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''.</DELETED>
<DELETED>    (c) Counterfeiting.--Section 2516(1)(d) of title 18, 
United States Code, is amended by striking ``or 473'' and inserting 
``473, 474, or 474A''.</DELETED>

<DELETED>SEC. 11. MAKING THE INTERNATIONAL MONEY LAUNDERING STATUTE 
              APPLY TO TAX EVASION.</DELETED>

<DELETED>    Section 1956(a)(2)(A) of title 18, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``(i)'' before ``with the intent 
        to promote''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
                <DELETED>    ``(ii) with the intent to engage in 
                conduct constituting a violation of section 7201 or 
                7206 of the Internal Revenue Code of 1986; 
                or''.</DELETED>

<DELETED>SEC. 12. CONDUCT IN AID OF COUNTERFEITING.</DELETED>

<DELETED>    (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:</DELETED>
<DELETED>    ``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''.</DELETED>
<DELETED>    (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:</DELETED>
<DELETED>    ``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''.</DELETED>
<DELETED>    (c) Counterfeit Acts.--Section 470 of title 18, United 
States Code, is amended by striking ``or 474'' and inserting ``474, or 
474A''.</DELETED>
<DELETED>    (d) Strengthening Deterrents to Counterfeiting.--Section 
474A of title 18, United States Code, is amended--</DELETED>
        <DELETED>    (1) in subsection (a), by inserting ``, custody,'' 
        after ``control'';</DELETED>
        <DELETED>    (2) in subsection (b)--</DELETED>
                <DELETED>    (A) by inserting ``, custody,'' after 
                ``control''; and</DELETED>
                <DELETED>    (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</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 13. ADMINISTRATIVE SUBPOENAS FOR MONEY LAUNDERING 
              CASES.</DELETED>

<DELETED>    Section 3486(a) of title 18, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1)(A)--</DELETED>
                <DELETED>    (A) in the matter preceding clause (i), by 
                striking ``of'' and inserting ``relating 
                to'';</DELETED>
                <DELETED>    (B) in clause (ii), by striking 
                ``or'';</DELETED>
                <DELETED>    (C) in clause (iii)--</DELETED>
                        <DELETED>    (i) by striking ``section 3056'' 
                        and inserting ``section 3056(a)''; 
                        and</DELETED>
                        <DELETED>    (ii) by striking ``the Treasury,'' 
                        and inserting ``Homeland Security; or''; 
                        and</DELETED>
                <DELETED>    (D) by inserting after clause (iii) the 
                following:</DELETED>
                        <DELETED>    ``(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</DELETED>
        <DELETED>    (2) in paragraph (6)(B)--</DELETED>
                <DELETED>    (A) in clause (iii), by striking ``or'' at 
                the end;</DELETED>
                <DELETED>    (B) in clause (iv), by striking the period 
                and inserting ``; or''; and</DELETED>
                <DELETED>    (C) by adding at the end 
                following:</DELETED>
        <DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 14. OBTAINING FOREIGN BANK RECORDS FROM BANKS WITH UNITED 
              STATES CORRESPONDENT ACCOUNTS.</DELETED>

<DELETED>    (a) Grand Jury and Trial Subpoenas.--Section 5318(k) of 
title 31, United States Code, is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and</DELETED>
                <DELETED>    (B) by inserting after subparagraph (A) 
                the following:</DELETED>
                <DELETED>    ``(B) Covered financial institution.--The 
                term `covered financial institution' means an 
                institution referred to in subsection (j)(1).''; 
                and</DELETED>
        <DELETED>    (2) by striking paragraph (3) and inserting the 
        following:</DELETED>
        <DELETED>    ``(3) Foreign bank records.--</DELETED>
                <DELETED>    ``(A) Subpoena of records.--</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(I) investigation of a 
                                violation of a criminal law of the 
                                United States; or</DELETED>
                                <DELETED>    ``(II) civil forfeiture 
                                action.</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(I) rule 902(12) of the 
                                Federal Rules of Evidence; or</DELETED>
                                <DELETED>    ``(II) section 3505 of 
                                title 18.</DELETED>
                        <DELETED>    ``(iii) Issuance and service of 
                        subpoena.--A subpoena described in clause (i)--
                        </DELETED>
                                <DELETED>    ``(I) shall designate--
                                </DELETED>
                                        <DELETED>    ``(aa) a return 
                                        date; and</DELETED>
                                        <DELETED>    ``(bb) the 
                                        judicial district in which the 
                                        related investigation is 
                                        proceeding; and</DELETED>
                                <DELETED>    ``(II) may be served--
                                </DELETED>
                                        <DELETED>    ``(aa) in 
                                        person;</DELETED>
                                        <DELETED>    ``(bb) by mail or 
                                        fax in the United States if the 
                                        foreign bank has a 
                                        representative in the United 
                                        States; or</DELETED>
                                        <DELETED>    ``(cc) in a 
                                        foreign country under any 
                                        mutual legal assistance treaty, 
                                        multilateral agreement, or 
                                        other request for international 
                                        legal or law enforcement 
                                        assistance.</DELETED>
                        <DELETED>    ``(iv) Relief from subpoena.--
                        </DELETED>
                                <DELETED>    ``(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--</DELETED>
                                        <DELETED>    ``(aa) the 
                                        subpoena; or</DELETED>
                                        <DELETED>    ``(bb) the 
                                        prohibition against disclosure 
                                        described in subparagraph 
                                        (C).</DELETED>
                                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Acceptance of service.--</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(I) the owners of such 
                                foreign bank; and</DELETED>
                                <DELETED>    ``(II) the name and 
                                address of a person who--</DELETED>
                                        <DELETED>    ``(aa) resides in 
                                        the United States; 
                                        and</DELETED>
                                        <DELETED>    ``(bb) is 
                                        authorized to accept service of 
                                        legal process for records 
                                        covered under this 
                                        subsection.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) Nondisclosure of subpoena.--
                </DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(I) double the amount of 
                                the suspected criminal proceeds sent 
                                through the correspondent account of 
                                the foreign bank in the related 
                                investigation; or</DELETED>
                                <DELETED>    ``(II) if no such proceeds 
                                can be identified, $250,000.</DELETED>
                <DELETED>    ``(D) Enforcement.--</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(ii) Court orders and contempt 
                        of court.--The court may--</DELETED>
                                <DELETED>    ``(I) issue an order 
                                requiring the foreign bank to appear 
                                before the Secretary of the Treasury or 
                                the Attorney General to produce--
                                </DELETED>
                                        <DELETED>    ``(aa) certified 
                                        records, in accordance with--
                                        </DELETED>

                                                <DELETED>    ``(AA) 
                                                rule 902(12) of the 
                                                Federal Rules of 
                                                Evidence; or</DELETED>

                                                <DELETED>    ``(BB) 
                                                section 3505 of title 
                                                18; or</DELETED>

                                        <DELETED>    ``(bb) testimony 
                                        regarding the production of 
                                        such records; and</DELETED>
                                <DELETED>    ``(II) punish any failure 
                                to obey an order issued under subclause 
                                (I) as contempt of court.</DELETED>
                        <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(E) Termination of correspondent 
                relationship.--</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(I) to comply with a 
                                subpoena issued under subparagraph 
                                (A)(i); or</DELETED>
                                <DELETED>    ``(II) to prevail in 
                                proceedings before--</DELETED>
                                        <DELETED>    ``(aa) the 
                                        appropriate district court of 
                                        the United States after 
                                        challenging such a subpoena 
                                        under subparagraph (A)(iv)(I); 
                                        or</DELETED>
                                        <DELETED>    ``(bb) a court of 
                                        appeals of the United States 
                                        after appealing a decision of a 
                                        district court of the United 
                                        States under item 
                                        (aa).</DELETED>
                        <DELETED>    ``(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).</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) under subparagraph (C)(ii); 
                        or</DELETED>
                        <DELETED>    ``(ii) by the court for contempt 
                        under subparagraph (D).''.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) by striking ``, or a'' and inserting ``, a''; 
        and</DELETED>
        <DELETED>    (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''.</DELETED>
<DELETED>    (c) Obstruction of Justice.--Section 1510(b)(3)(B) of 
title 18, United States Code, is amended--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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''.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) by striking ``or 1957'' and inserting ``, 
        1957, or 1960''; and</DELETED>
        <DELETED>    (2) by striking ``and 5324'' and inserting ``, 
        5322, 5324, 5331, and 5332''.</DELETED>

<DELETED>SEC. 15. DANGER PAY ALLOWANCE.</DELETED>

<DELETED>    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''.</DELETED>

<DELETED>SEC. 16. CLARIFICATION OF SECRET SERVICE AUTHORITY TO 
              INVESTIGATE MONEY LAUNDERING.</DELETED>

<DELETED>    Section 3056(b)(3) of title 18, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``money laundering, structured 
        transactions,'' after ``documents or devices,''; and</DELETED>
        <DELETED>    (2) by striking ``federally insured''.</DELETED>

<DELETED>SEC. 17. PROHIBITION ON CONCEALMENT OF OWNERSHIP OF 
              ACCOUNT.</DELETED>

<DELETED>    (a) In General.--Subchapter II of chapter 53 of title 31, 
United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>``Sec. 5333. Prohibition on concealment of ownership of 
              account</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Forfeiture.--</DELETED>
        <DELETED>    ``(1) Criminal forfeiture.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Civil forfeiture.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) implement a customer identification program 
        under this title, or the regulations promulgated under this 
        title; or</DELETED>
        <DELETED>    ``(2) conduct customer due diligence under this 
        title, or the regulations promulgated under this 
        title.''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``5333. Prohibition on concealment of ownership of account.''.

<DELETED>SEC. 18. PROHIBITION ON CONCEALMENT OF THE SOURCE OF ASSETS IN 
              MONETARY TRANSACTIONS.</DELETED>

<DELETED>    (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:</DELETED>
<DELETED>``Sec. 5334. Prohibition on concealment of the source of 
              assets in monetary transactions</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) the aggregate value of the assets involved 
        in one or more such transactions is not less than 
        $1,000,000.</DELETED>
<DELETED>    ``(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--
</DELETED>
        <DELETED>    ``(1) involves an entity found to be a primary 
        money laundering concern under section 5318A or the regulations 
        promulgated under this title; and</DELETED>
        <DELETED>    ``(2) violates the prohibitions or conditions 
        prescribed under section 5318A(b)(5) or the regulations 
        promulgated under this title.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Forfeiture.--</DELETED>
        <DELETED>    ``(1) Criminal forfeiture.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(2) Civil forfeiture.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `financial institution' has the 
        meaning given the term in section 5312(a)(2) of this title; 
        and</DELETED>
        <DELETED>    ``(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)--</DELETED>
                <DELETED>    ``(A) including any transaction that would 
                be a financial transaction under section 1956(c)(4)(B) 
                of title 18; and</DELETED>
                <DELETED>    ``(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.''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``5334. Prohibition on concealment of the source of assets in 
                            monetary transactions.''.

<DELETED>SEC. 19. RULE OF CONSTRUCTION.</DELETED>

<DELETED>    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.</DELETED>

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. Prohibiting money laundering through hawalas, other informal 
                            value transfer systems, and closely related 
                            transactions.
Sec. 8. Technical amendment to restore wiretap authority for certain 
                            money laundering and counterfeiting 
                            offenses.
Sec. 9. Making the international money laundering statute apply to tax 
                            evasion.
Sec. 10. Conduct in aid of counterfeiting.
Sec. 11. Danger pay allowance.
Sec. 12. Clarification of Secret Service authority to investigate money 
                            laundering.
Sec. 13. Remittances and money laundering threat analysis.
Sec. 14. 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) (as 
                applicable) 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. 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. 8. 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 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. 9. 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. 10. 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. 11. 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. 12. 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. 13. REMITTANCES AND MONEY LAUNDERING THREAT ANALYSIS.

    (a) Definitions.--In this section--
            (1) the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on the Judiciary of the Senate;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Caucus on International Narcotics Control 
                of the Senate;
                    (D) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (E) the Committee on the Judiciary of the House of 
                Representatives;
                    (F) the Committee on Homeland Security of the House 
                of Representatives; and
                    (G) the Committee on Financial Services of the 
                House of Representatives;
            (2) the term ``drug kingpins, crime syndicates, and other 
        persons'', with respect to the use of remittances to finance 
        terrorism, narcotics trafficking, human trafficking, money 
        laundering, and other forms of illicit financing, domestically 
        or internationally, means any persons who--
                    (A) are connected to individuals and organizations 
                associated with financing terrorism, narcotics 
                trafficking, human trafficking, money laundering, and 
                other forms of illicit financing, domestically or 
                internationally; and
                    (B) have been designated as--
                            (i) a significant foreign narcotics 
                        trafficker under the Foreign Narcotics Kingpin 
                        Designation Act (21 U.S.C. 1901 et seq.);
                            (ii) a significant transnational criminal 
                        organization under Executive Order 13581 (76 
                        Fed. Reg. 44757, 84 Fed. Reg. 10255; relating 
                        to blocking property of transnational criminal 
                        organizations); or
                            (iii) a Specially Designated Global 
                        Terrorist under Executive Order 13224 (66 Fed. 
                        Reg. 49079, 67 Fed. Reg. 44751, 68 Fed. Reg. 
                        4075, 70 Fed. Reg. 8499; relating to blocking 
                        property and prohibiting transactions with 
                        persons who commit, threaten to commit, or 
                        support terrorism);
            (3) the term ``human trafficking'' has the meaning given 
        the term ``severe forms of trafficking in persons'' in section 
        103 of the Trafficking Victims Protection Act of 2000 (22 
        U.S.C. 7102);
            (4) the term ``money services business'' has the meaning 
        given the term in section 5330 of title 31, United States Code, 
        as amended by section 6(b)(2); and
            (5) the term ``money transmitting service'' has the meaning 
        given the term in section 5330 of title 31, United States Code.
    (b) Analysis.--
            (1) Requirement.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary of the Treasury, in 
        consultation with the Attorney General, the Secretary of 
        Homeland Security, and the head of any other appropriate 
        Federal law enforcement agency, shall submit to the appropriate 
        congressional committees a threat and operational analysis of 
        the use of remittances by drug kingpins, crime syndicates, and 
        other persons to finance terrorism, narcotics trafficking, 
        human trafficking, money laundering, and other forms of illicit 
        financing, domestically or internationally.
            (2) Contents.--The Secretary of the Treasury shall include 
        in the threat and operational analysis required under paragraph 
        (1) the following:
                    (A) Current and potential threats posed by 
                individuals and organized groups seeking--
                            (i) to exploit security vulnerabilities 
                        with respect to remittances and money 
                        transmitting services; or
                            (ii) to unlawfully use remittances to 
                        finance terrorism, narcotics trafficking, human 
                        trafficking, money laundering, or other forms 
                        of illicit financing, domestically or 
                        internationally.
                    (B) Methods and pathways used to exploit security 
                vulnerabilities.
                    (C) Challenges presented by identity theft in the 
                use of remittances and money transmitting services.
                    (D) Improvements needed to enhance cooperation 
                between and among Federal, State, and local officials, 
                including State regulators, State and local 
                prosecutors, and other law enforcement officials.
                    (E) Improvements needed to enhance cooperation 
                between money services businesses and Federal, State, 
                and local officials, including State regulators, State 
                and local prosecutors, and other law enforcement 
                officials.
            (3) Analysis requirements.--In compiling the threat and 
        operational analysis required under paragraph (1), the 
        Secretary of the Treasury, in consultation with the Attorney 
        General, the Secretary of Homeland Security, and the head of 
        any other appropriate Federal law enforcement agency, shall 
        consider and examine the personnel needs, technology needs, and 
        infrastructure needs of Federal law enforcement agencies.
    (c) Remittances Strategy and Implementation Plan.--
            (1) In general.--Not later than 180 days after the date on 
        which the Secretary of the Treasury submits the threat analysis 
        under subsection (b), and every 5 years thereafter for 10 
        years, the Secretary of the Treasury, in consultation with the 
        Attorney General, the Secretary of Homeland Security, and the 
        head of any other appropriate Federal law enforcement agency, 
        shall submit to the appropriate congressional committees a 
        remittances strategy and implementation plan.
            (2) Contents.--In preparing the remittances strategy and 
        implementation plan under paragraph (1), the Secretary of the 
        Treasury shall consider the following:
                    (A) The remittances threat and operational analysis 
                required under subsection (b), with an emphasis on 
                efforts to mitigate threats and challenges identified 
                in the analysis.
                    (B) Efforts to reduce the use of remittances and 
                money transmitting services by drug kingpins, crime 
                syndicates, and other persons to finance terrorism, 
                narcotics trafficking, human trafficking, money 
                laundering, and other forms of illicit financing, 
                domestically or internationally.
                    (C) Efforts to prevent human trafficking and the 
                unlawful movement of illicit drugs and other contraband 
                through the use of remittances and money transmitting 
                services, and standards against which the effectiveness 
                of those efforts may be determined.
                    (D) Efforts to focus collection and information 
                analysis to disrupt transnational criminal 
                organizations attempting to exploit security 
                vulnerabilities, and standards against which the 
                effectiveness of those efforts may be determined.
                    (E) Personnel, technology, and infrastructure needs 
                of Federal law enforcement agencies.
                    (F) Efforts to prevent, detect, investigate, and 
                mitigate money laundering activities through 
                remittances and money transmitting services, and 
                standards against which the effectiveness of those 
                efforts may be determined.
                    (G) The lawful use of remittances, the role that 
                remittances play in countries' economies, and how any 
                recommended measures would impose additional burdens on 
                remittances in light of their lawful uses.

SEC. 14. 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.
                                                       Calendar No. 160

116th CONGRESS

  1st Session

                                S. 1883

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             July 23, 2019

                       Reported with an amendment