[Congressional Record Volume 140, Number 32 (Monday, March 21, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                MONEY LAUNDERING SUPPRESSION ACT OF 1994

  Mr. GONZALEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3235) to amend subchapter II of chapter 53 of title 31, 
United States Code, to improve enforcement of antimoney laundering 
laws, and for the purposes, as amended.
  The Clerk read the bill as follows:

                               H.R. 3235

       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 ``Money 
     Laundering Suppression Act of 1994''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Reform of CTR exemption requirements to reduce number and size 
              of reports consistent with effective law enforcement.
Sec. 3. Single designee for reporting of suspicious transactions.
Sec. 4. Improvement of identification of money laundering schemes.
Sec. 5. Negotiable instruments drawn on foreign banks subject to 
              recordkeeping and reporting requirements.
Sec. 6. Imposition of civil money penalties by appropriate Federal 
              banking agencies.
Sec. 7. Uniform State licensing and regulation of check cashing, 
              currency exchange, and money transmitting businesses.
Sec. 8. Registration of money transmitting businesses to promote 
              effective law enforcement.
Sec. 9. Uniform Federal regulation of casinos.
Sec. 10. Uniform Federal administration of recordkeeping and reporting 
              requirements.
Sec. 11. Criminal and civil penalty for structuring domestic and 
              international transactions.
Sec. 12. GAO study of cashiers' checks.
Sec. 13. Technical corrections.

     SEC. 2. REFORM OF CTR EXEMPTION REQUIREMENTS TO REDUCE NUMBER 
                   AND SIZE OF REPORTS CONSISTENT WITH EFFECTIVE 
                   LAW ENFORCEMENT.

       (a) In General.--Section 5313 of title 31, United States 
     Code, is amended by adding at the end the following new 
     subsections:
       ``(d) Mandatory Exemptions From Reporting Requirements.--
       ``(1) In general.--The Secretary of the Treasury shall 
     exempt, pursuant to section 5318(a)(5), a depository 
     institution from the reporting requirements of subsection (a) 
     with respect to transactions between the depository 
     institution and the following categories of entities:
       ``(A) Another depository institution.
       ``(B) A department or agency of the United States, any 
     State, or any political subdivision of any State.
       ``(C) Any entity established under the laws of the United 
     States, any State, or any political subdivision of any State, 
     or under an interstate compact between 2 or more States, 
     which exercises governmental authority on behalf of the 
     United States, the State, or the political subdivision.
       ``(D) Any business or category of business the reports on 
     which have little or no value for law enforcement purposes.
       ``(2) Notice of exemption.--The Secretary of the Treasury 
     shall publish in the Federal Register at such times as the 
     Secretary determines to be appropriate (but not less 
     frequently than once each year) a list of all the entities 
     whose transactions with a depository institution are exempt 
     under this subsection from the reporting requirements of 
     subsection (a).
       ``(e) Discretionary Exemptions From Reporting 
     Requirements.--
       ``(1) In general.--The Secretary of the Treasury may 
     exempt, pursuant to section 5318(a)(5), a depository 
     institution from the reporting requirements of subsection (a) 
     with respect to transactions between the depository 
     institution and a qualified business customer of the 
     institution on the basis of information submitted to the 
     Secretary by the institution in accordance with procedures 
     which the Secretary shall establish.
       ``(2) Qualified business customer defined.--For purposes of 
     this subsection, the term `qualified business customer' means 
     a business which--
       ``(A) maintains a transaction account (as defined in 
     section 19(b)(1)(C) of the Federal Reserve Act) at the 
     depository institution;
       ``(B) frequently engages in transactions with the 
     depository institution which are subject to the reporting 
     requirements of subsection (a); and
       ``(C) meets criteria which the Secretary determines are 
     sufficient to ensure that the purposes of this subchapter are 
     carried out without requiring a report with respect to such 
     transactions.
       ``(3) Criteria for exemption.--The Secretary of the 
     Treasury shall establish, by regulation, the criteria for 
     granting and maintaining an exemption under paragraph (1).
       ``(4) Guidelines.--
       ``(A) In general.--The Secretary of the Treasury shall 
     establish guidelines for depository institutions to follow in 
     selecting customers for an exemption under this subsection.
       ``(B) Contents.--The guidelines may include a description 
     of the types of businesses or an itemization of specific 
     businesses for which no exemption will be granted under this 
     subsection to any depository institution.
       ``(5) Annual review.--The Secretary of the Treasury shall 
     prescribe regulations requiring each depository institution 
     to--
       ``(A) review, at least once each year, the qualified 
     business customers of such institution with respect to whom 
     an exemption has been granted under this subsection; and
       ``(B) upon the completion of such review, resubmit 
     information about such customers, with such modifications as 
     the institution determines to be appropriate, to the 
     Secretary for the Secretary's approval.
       ``(6) 2-year phase-in provision.--During the 2-year period 
     beginning on the date of the enactment of the Money 
     Laundering Suppression Act of 1994, this subsection shall be 
     applied by the Secretary on the basis of such criteria as the 
     Secretary determines to be appropriate to achieve an orderly 
     implementation of the requirements of this subsection.
       ``(f) Provisions Applicable to Mandatory and Discretionary 
     Exemptions.--
       ``(1) Limitation on liability of depository institutions.--
     No depository institution shall be subject to any penalty 
     which may be imposed under this subchapter for the failure of 
     the institution to file a report with respect to a 
     transaction with a customer for whom an exemption has been 
     granted under subsection (d) or (e) unless the institution--
       ``(A) knowingly files false or incomplete information to 
     the Secretary with respect to the transaction or the customer 
     engaging in the transaction; or
       ``(B) has reason to believe at the time the exemption is 
     granted or the transaction is entered into that the customer 
     or the transaction does not meet the criteria established for 
     granting such exemption.
       ``(2) Coordination with other provisions.--Any exemption 
     granted by the Secretary of the Treasury under section 
     5318(a) in accordance with this section, and any transaction 
     which is subject to such exemption, shall be subject to any 
     other provision of law applicable to such exemption, 
     including--
       ``(A) the authority of the Secretary, under section 
     5318(a)(5), to revoke such exemption at any time; and
       ``(B) any requirement to report, or any authority to 
     require a report on, any possible violation of any law or 
     regulation or any suspected criminal activity.
       ``(g) Depository Institution Defined.--For purposes of this 
     section, the term `depository institution'--
       ``(1) has the meaning given to such term in section 
     19(b)(1)(A) of the Federal Reserve Act; and
       ``(2) includes--
       ``(A) any branch, agency, or commercial lending company (as 
     such terms are defined in section 1(b) of the International 
     Banking Act of 1978);
       ``(B) any corporation chartered under section 25A of the 
     Federal Reserve Act; and
       ``(C) any corporation having an agreement or undertaking 
     with the Board of Governors of the Federal Reserve System 
     under section 25 of the Federal Reserve Act.''.
       (b) Report Reduction Goal; Reports.--
       (1) In general.--In implementing the amendment made by 
     subsection (a), the Secretary of the Treasury shall seek to 
     reduce, within a reasonable period of time, the number of 
     reports required to be filed in the aggregate by depository 
     institutions pursuant to section 5313(a) of title 31, United 
     States Code, by at least 30 percent of the number filed 
     during the year preceding the date of the enactment of this 
     Act.
       (2) Interim report.--The Secretary of the Treasury shall 
     submit a report to the Congress not later than the end of the 
     180-day period beginning on the date of the enactment of this 
     Act on the progress made by the Secretary in implementing the 
     amendment made by subsection (a).
       (3) Annual report.--The Secretary of the Treasury shall 
     submit an annual report to the Congress after the end of each 
     of the first 5 calendar years which begin after the date of 
     the enactment of this Act on the extent to which the 
     Secretary has reduced the overall number of currency 
     transaction reports filed with the Secretary pursuant to 
     section 5313(a) of title 31, United States Code, consistently 
     with the purposes of such section and effective law 
     enforcement.
       (c) Streamlined Currency Transaction Reports.--The 
     Secretary of the Treasury shall take such action as may be 
     appropriate to redesign the format of reports required to be 
     filed by any financial institution (as defined in section 
     5312(a)(2) of title 31, United States Code) under section 
     5313(a) of title 31, United States Code, to eliminate the 
     need to report information which has little or no value for 
     law enforcement purposes and reduce the time and effort 
     required to prepare such report for filing by any such 
     financial institution under such section.

     SEC. 3. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS 
                   TRANSACTIONS.

       (a) In General.--Section 5318(g) of title 31, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(4) Single designee for reporting suspicious 
     transactions.--
       ``(A) In general.--In requiring reports under paragraph (1) 
     of suspicious transactions, the Secretary of the Treasury 
     shall designate, to the extent practicable and appropriate, a 
     single officer or agency of the United States to whom such 
     reports shall be made.
       ``(B) Duty of designee.--The officer or agency of the 
     United States designated by the Secretary of the Treasury 
     pursuant to subparagraph (A) shall refer any report of a 
     suspicious transaction to any appropriate law enforcement or 
     supervisory agency.
       ``(C) Coordination with other reporting requirements.--
     Subparagraph (A) shall not be construed as precluding any 
     supervisory agency for any financial institution from 
     requiring the financial institution to submit any information 
     or report to the agency or another agency pursuant to any 
     provision of law other than this subsection.''.
       (b) Reports.--
       (1) Reports required.--The Secretary of the Treasury shall 
     submit an annual report to the Congress at the times required 
     under paragraph (2) on the number of suspicious transactions 
     reported to the officer or agency designated under section 
     5318(g)(4)(A) of title 31, United States Code, during the 
     period covered by the report and the disposition of such 
     reports.
       (2) Time for submitting reports.--The 1st report required 
     under paragraph (1) shall be filed before the end of the 1-
     year period beginning on the date of the enactment of the 
     Money Laundering Suppression Act of 1994 and each subsequent 
     report shall be filed within 90 days after the end of each of 
     the 5 calendar years which begin after such date of 
     enactment.
       (c) Designation Required To Be Made Expeditiously.--The 
     initial designation of an officer or agency of the United 
     States pursuant to the amendment made by subsection (a) shall 
     be made before the end of the 180-day period beginning on the 
     date of the enactment of this Act.

     SEC. 4. IMPROVEMENT OF IDENTIFICATION OF MONEY LAUNDERING 
                   SCHEMES.

       (a) Enhanced Training, Examinations, and Referrals by 
     Banking Agencies.--Before the end of the 6-month period 
     beginning on the date of the enactment of this Act, each 
     appropriate Federal banking agency shall, in consultation 
     with the Secretary of the Treasury and other appropriate law 
     enforcement agencies--
       (1) review and enhance training and examination procedures 
     to improve the identification of money laundering schemes 
     involving depository institutions; and
       (2) review and enhance procedures for referring cases to 
     any appropriate law enforcement agency.
       (b) Improved Reporting of Criminal Schemes by Law 
     Enforcement Agencies.--The Secretary of the Treasury and each 
     appropriate law enforcement agency shall provide, on a 
     regular basis, information regarding money laundering schemes 
     and activities involving depository institutions to each 
     appropriate Federal banking agency in order to enhance the 
     agency's ability to examine for and identify money laundering 
     activity.
       (c) Report to Congress.--The Financial Institutions 
     Examination Council shall submit a report on the progress 
     made in carrying out subsection (a) and the usefulness of 
     information received pursuant to subsection (b) to the 
     Congress by the end of the 1-year period beginning on the 
     date of the enactment of this Act.
       (d) definitions.--The terms ``appropriate Federal banking 
     agency'' and ``Federal banking agencies'' have the same 
     meanings as in section 3 of the Federal Deposit Insurance 
     Act.

     SEC. 5. NEGOTIABLE INSTRUMENTS DRAWN ON FOREIGN BANKS SUBJECT 
                   TO RECORDKEEPING AND REPORTING REQUIREMENTS.

       Section 5312(a)(3) of title 31, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by striking the period at the end of subparagraph (B) 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) as the Secretary of the Treasury shall provide by 
     regulation for purposes of section 5316, checks, drafts, 
     notes, money orders, and other similar instruments which are 
     drawn on or by a foreign financial institution and are not in 
     bearer form.''.

     SEC. 6. IMPOSITION OF CIVIL MONEY PENALTIES BY APPROPRIATE 
                   FEDERAL BANKING AGENCIES.

       Section 5321 of title 31, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e) Delegation of Assessment Authority to Banking 
     Agencies.--
       ``(1) In general.--The Secretary of the Treasury shall 
     delegate, in accordance with section 5318(a)(1) and subject 
     to such terms and conditions as the Secretary may impose in 
     accordance with paragraph (3), any authority of the Secretary 
     to assess a civil money penalty under this section on 
     depository institutions (as defined in section 3 of the 
     Federal Deposit Insurance Act) to the appropriate Federal 
     banking agencies (as defined in such section 3).
       ``(2) Authority of agencies.--Subject to any term or 
     condition imposed by the Secretary of the Treasury under 
     paragraph (3), the provisions of this section shall apply to 
     an appropriate Federal banking agency to which is delegated 
     any authority of the Secretary under this section in the same 
     manner such provisions apply to the Secretary.
       ``(3) Terms and conditions.--
       ``(A) In general.--The Secretary of the Treasury shall 
     prescribe by regulation the terms and conditions which shall 
     apply to any delegation under paragraph (1).
       ``(B) Maximum dollar amount.--The terms and conditions 
     authorized under subparagraph (A) may include, in the 
     Secretary's sole discretion, a limitation on the amount of 
     any civil penalty which may be assessed by an appropriate 
     Federal banking agency pursuant to a delegation under 
     paragraph (1).''.

     SEC. 7. UNIFORM STATE LICENSING AND REGULATION OF CHECK 
                   CASHING, CURRENCY EXCHANGE, AND MONEY 
                   TRANSMITTING BUSINESSES.

       (a) Uniform Laws and Enforcement.--For purposes of 
     preventing money laundering and protecting the payment system 
     from fraud and abuse, it is the sense of the Congress that 
     the several States should--
       (1) establish uniform laws for licensing and regulating 
     businesses which--
       (A) provide check cashing, currency exchange, or money 
     transmitting or remittance services, or issue or redeem money 
     orders, travelers' checks, and other similar instruments; and
       (B) are not depository institutions (as defined in section 
     19(b)(1)(A) of the Federal Reserve Act); and
       (2) provide sufficient resources to the appropriate State 
     agency to enforce such laws and regulations prescribed 
     pursuant to such laws.
       (b) Model Statute.--It is the sense of the Congress that 
     the several States should develop, through the auspices of 
     the National Conference of Commissioners on Uniform State 
     Laws, the American Law Institute, or such other forum as the 
     States may determine to be appropriate, a model statute to 
     carry out the goals described in subsection (a) which would 
     include the following:
       (1) Licensing requirements.--A requirement that any 
     business described in subsection (a)(1) be licensed and 
     regulated by an appropriate State agency in order to engage 
     in any such activity within the State.
       (2) Licensing standards.--A requirement that--
       (A) in order for any business described in subsection 
     (a)(1) to be licensed in the State, the appropriate State 
     agency shall review and approve--
       (i) the business record, the fee structure, and the capital 
     adequacy of the business seeking the license; and
       (ii) the competence, experience, integrity, and financial 
     ability of any individual who--

       (I) is a director, officer, or supervisory employee of such 
     business; or
       (II) owns or controls such business; and

       (B) any record, on the part of any business seeking the 
     license or any person referred to in subparagraph (A)(ii), 
     of--
       (i) any criminal activity;
       (ii) any fraud or other act of personal dishonesty;
       (iii) any act, omission, or practice which constitutes a 
     breach of a fiduciary duty; or
       (iv) any suspension or removal, by any agency or department 
     of the United States or any State, from participation in the 
     conduct of any federally or State licensed or regulated 
     business,
     may be grounds for the denial of any such license by the 
     appropriate State agency.
       (3) Procedures to ensure compliance with federal cash 
     transaction reporting requirements.--A civil or criminal 
     penalty for operating any business referred to in paragraph 
     (1) without establishing and complying with appropriate 
     procedures to ensure compliance with subchapter II of chapter 
     53 of title 31, United States Code (relating to records and 
     reports on monetary instruments transactions).
       (4) Criminal penalties for operation of business without a 
     license.--A criminal penalty for operating any business 
     referred to in paragraph (1) without a license within the 
     State after the end of an appropriate transition period 
     beginning on the date of the enactment of such model statute 
     by the State.
       (c) Study Required.--The Secretary of the Treasury shall 
     conduct a study of--
       (1) the progress made by the several States in developing 
     and enacting a model statute which--
       (A) meets the requirements of subsection (b); and
       (B) furthers the goals of--
       (i) preventing money laundering by businesses which are 
     required to be licensed under any such statute; and
       (ii) protecting the payment system, including the receipt, 
     payment, collection, and clearing of checks, from fraud and 
     abuse by such businesses; and
       (2) the adequacy of--
       (A) the activity of the several States in enforcing the 
     requirements of such statute; and
       (B) the resources made available to the appropriate State 
     agencies for such enforcement activity.
       (d) Report Required.--Before the end of the 3-year period 
     beginning on the date of the enactment of this Act and by the 
     end of each of the first 2 1-year periods beginning after the 
     end of such 3-year period, the Secretary of the Treasury 
     shall submit a report to the Congress containing the findings 
     and recommendations of the Secretary in connection with the 
     study under subsection (c), together with such 
     recommendations for legislative and administrative action as 
     the Secretary may determine to be appropriate.
       (e) Recommendations in Cases of Inadequate Regulation and 
     Enforcement by States.--If the Secretary of the Treasury 
     determines that any State has been unable to--
       (1) enact a statute which meets the requirements described 
     in subsection (b);
       (2) undertake adequate activity to enforce such statute; or
       (3) make adequate resources available to the appropriate 
     State agency for such enforcement activity,

     the report submitted pursuant to subsection (d) shall contain 
     recommendations of the Secretary which are designed to 
     facilitate the enactment and enforcement by the State of such 
     a statute.
       (f) Federal Funding Study.--
       (1) Study required.--The Secretary of the Treasury shall 
     conduct a study to identify possible available sources of 
     Federal funding to cover costs which will be incurred by the 
     States in carrying out the purposes of this section.
       (2) Report.--The Secretary of the Treasury shall a submit a 
     report to the Congress on the study conducted pursuant to 
     paragraph (1) before the end of the 18-month period beginning 
     on the date of the enactment of this Act.

     SEC. 8. REGISTRATION OF MONEY TRANSMITTING BUSINESSES TO 
                   PROMOTE EFFECTIVE LAW ENFORCEMENT.

       (a) Findings and Purposes.--
       (1) Findings.--The Congress hereby finds the following:
       (A) Money transmitting businesses are subject to the 
     recordkeeping and reporting requirements of subchapter II of 
     chapter 53 of title 31, United States Code.
       (B) Money transmitting businesses are largely unregulated 
     businesses and are frequently used in sophisticated schemes 
     to--
       (i) transfer large amounts of money which are the proceeds 
     of unlawful enterprises; and
       (ii) evade the requirements of such subchapter II, the 
     Internal Revenue Code of 1986, and other laws of the United 
     States.
       (C) Information on the identity of money transmitting 
     businesses and the names of the persons who own or control, 
     or are officers or employees of, a money transmitting 
     business would have a high degree of usefulness in criminal, 
     tax, or regulatory investigations and proceedings.
       (2) Purpose.--It is the purpose of this section to 
     establish a registration requirement for businesses engaged 
     in providing check cashing, currency exchange, or money 
     transmitting or remittance services, or issuing or redeeming 
     money orders, travelers' checks, and other similar 
     instruments to assist the Secretary of the Treasury, the 
     Attorney General, and other supervisory and law enforcement 
     agencies to effectively enforce the criminal, tax, and 
     regulatory laws and prevent such money transmitting 
     businesses from engaging in illegal activities.
       (b) In General.--Subchapter II of chapter 53 of title 31, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 5329. Registration of money transmitting businesses

       ``(a) Registration With Secretary of the Treasury 
     Required.--
       ``(1) In general.--Any person who owns or controls a money 
     transmitting business which is not a depository institution 
     (as defined in section 19(b)(1)(A) of the Federal Reserve 
     Act) shall register the business (whether or not the business 
     is licensed as a money transmitting business in any State) 
     with the Secretary of the Treasury before the end of the 180-
     day period beginning on the later of--
       ``(A) the date of the enactment of the Money Laundering 
     Suppression Act of 1994; or
       ``(B) the date the business is established.
       ``(2) Form and manner of registration.--Subject to the 
     requirements of subsection (b), the Secretary of the Treasury 
     shall prescribe, by regulation, the form and manner for 
     registering a money transmitting business pursuant to 
     paragraph (1).
       ``(3) Businesses remain subject to state law.--This section 
     shall not be construed as superseding any requirement of 
     State law relating to money transmitting businesses operating 
     in such State.
       ``(4) False and incomplete information.--The filing of 
     false or materially incomplete information in connection with 
     the registration of a money transmitting business shall be 
     considered as a failure to comply with the requirements of 
     this subchapter.
       ``(b) Contents of Registration.--The registration of a 
     money transmitting business under subsection (a) shall 
     include the following information:
       ``(1) The name and location of the business.
       ``(2) The name and address of each person who--
       ``(A) owns or controls the business;
       ``(B) is an director or officer of the business; or
       ``(C) otherwise participates in the conduct of the affairs 
     of the business.
       ``(3) The name and address of any depository institution at 
     which the business maintains a transaction account (as 
     defined in section 19(b)(1)(C) of the Federal Reserve Act).
       ``(4) An estimate of the volume of business in the coming 
     year (which shall be reported annually to the Secretary).
       ``(5) Such other information as the Secretary of the 
     Treasury may require.
       ``(c) Agents of Money Transmitting Businesses.--
       ``(1) Maintenance of lists of agents of money transmitting 
     businesses.--Pursuant to regulations which the Secretary of 
     the Treasury shall prescribe, each money transmitting 
     business shall--
       ``(A) maintain a list containing the names and addresses of 
     all persons authorized to act as an agent for such business 
     in connection with activities described in subsection 
     (d)(1)(A) and such other information about such agents as the 
     Secretary may require; and
       ``(B) make the list and other information available on 
     request to any appropriate law enforcement agency.
       ``(2) Treatment of agent as money transmitting business.--
     The Secretary of the Treasury shall prescribe regulations 
     establishing, on the basis of such criteria as the Secretary 
     determines to be appropriate, a threshold point for treating 
     an agent of a money transmitting business as a money 
     transmitting business for purposes of this section.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Money transmitting business.--The term `money 
     transmitting business' means any business other than the 
     United States Postal Service which--
       ``(A) provides check cashing, currency exchange, or money 
     transmitting or remittance services, or issues or redeems 
     money orders, travelers' checks, and other similar 
     instruments;
       ``(B) is required to file reports under section 5313; and
       ``(C) is not a depository institution (as defined in 
     section 19(b)(1)(A) of the Federal Reserve Act).
       ``(2) Money transmitting service.--The term `money 
     transmitting service' includes accepting currency or funds 
     denominated in the currency of any country and transmitting 
     the currency or funds, or the value of the currency or funds, 
     by any means through a financial agency or institution, a 
     Federal reserve bank or other facility of the Board of 
     Governors of the Federal Reserve System, or an electronic 
     funds transfer network.
       ``(e) Civil Penalty for Failure To Comply With Registration 
     Requirements.--
       ``(1) In general.--Any person who fails to comply with the 
     money transmitting business registration requirements under 
     subsection (a) or regulations prescribed under such 
     subsection shall be liable to the United States for a civil 
     penalty of $5,000 for each such violation.
       ``(2) Continuing violation.--Each day a violation described 
     in paragraph (1) continues shall constitute a separate 
     violation for purposes of such paragraph.
       ``(3) Assessments.--Any penalty imposed under this 
     subsection shall be assessed and collected by the Secretary 
     of the Treasury in the manner provided in section 5321 and 
     any such assessment shall be subject to the provisions of 
     such section.''.
       (c) Criminal Penalty for Failure To Comply With 
     Registration Requirements.--Section 1960(b)(1) of title 18, 
     United States Code, is amended to read as follows:
       ``(1) the term `illegal money transmitting business' means 
     a money transmitting business which affects interstate or 
     foreign commerce in any manner or degree and--
       ``(A) is intentionally operated without an appropriate 
     money transmitting license in a State where such operation is 
     punishable as a misdemeanor or a felony under State law; or
       ``(B) fails to comply with the money transmitting business 
     registration requirements under section 5329 of title 31, 
     United States Code, or regulations prescribed under such 
     section;''.
       (d) Civil Forfeiture.--Section 981(a)(1)(A) of title 18, 
     United States Code, is amended by striking ``or of section 
     1956 or 1957 of this title,'' and inserting ``, or of section 
     1956, 1957, or 1960 of this title,''.
       (e) Clerical Amendment.--The table of sections for chapter 
     53 of title 31, United States Code, is amended by inserting 
     after the item relating to section 5328 the following new 
     item:

``5329. Registration of money transmitting businesses.''.

     SEC. 9. UNIFORM FEDERAL REGULATION OF CASINOS.

       Amendment to Definition of Financial Institution To 
     Specifically Include Certain Casinos.--Section 5312(a)(2) of 
     title 31, United States Code, is amended--
       (1) by redesignating subparagraphs (X) and (Y) as 
     subparagraphs (Y) and (Z), respectively; and
       (2) by inserting after subparagraph (W) the following new 
     subparagraph:
       ``(X) a casino, gambling casino, or gaming establishment 
     with an annual gaming revenue of more than $1,000,000 which--
       ``(i) is licensed as a casino or gambling casino under the 
     laws of any State or any political subdivision of any State; 
     or
       ``(ii) is an Indian gaming operation conducted under or 
     pursuant to the Indian Gaming Regulatory Act other than an 
     operation which is limited to class I gaming (as defined in 
     section 4(6) of such Act);''.

     SEC. 10. UNIFORM FEDERAL ADMINISTRATION OF RECORDKEEPING AND 
                   REPORTING REQUIREMENTS.

       (a) In General.--Section 5318 of title 31, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(i) Uniform Administration of Subchapter.--
       ``(1) No exemptions.--No exemption from any recordkeeping 
     or reporting requirement of this subchapter, including 
     paragraph (1), or of any regulation prescribed pursuant to 
     this subchapter may be granted to--
       ``(A) any State or any political subdivision of a State on 
     behalf of any financial institution which but, for such 
     exemption, would be required to maintain records or file 
     reports under this subchapter or regulations prescribed by 
     the Secretary of the Treasury pursuant to this subchapter; or
       ``(B) any financial institution on the basis that any 
     State, any political subdivision of any State, or any 
     officer, agency, or other authority of any such State or 
     political subdivision regulates or examines such institution.
       ``(2) Reports required to be filed with federal agency.--
     Any report required under this subchapter or regulations 
     prescribed by the Secretary of the Treasury pursuant to this 
     subchapter shall be filed by the person required to make the 
     report with the Secretary of the Treasury or an officer or 
     agency of the United States designated by the Secretary to 
     receive such report.''.
       (b) Technical and Conforming Amendments.--Section 5318(a) 
     of title 31, United States Code, is amended--
       (1) in paragraph (1), by inserting ``or (i)'' after 
     ``subsection (b)(2)''; and
       (2) in paragraph (5), by inserting ``except as provided in 
     subsection (i),'' before ``prescribe an appropriate 
     exemption''.
       (c) Revocation of Prior Exemption.--Any exemption granted 
     under subchapter II of chapter 53 of title 31, United States 
     Code, by the Secretary of the Treasury before the date of the 
     enactment of the Money Laundering Suppression Act of 1994 to 
     any State or local government on behalf of any financial 
     institution (as defined in such subchapter) is hereby revoked 
     as of the end of the 30-day period beginning on the date of 
     the enactment of this Act.

     SEC. 11. CRIMINAL AND CIVIL PENALTY FOR STRUCTURING DOMESTIC 
                   AND INTERNATIONAL TRANSACTIONS.

       (a) Criminal Penalty.--Section 5324 of title 31, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(c) Criminal Penalty.--
       ``(1) In general.--Whoever violates this section shall be 
     fined in accordance with title 18, United States Code, 
     imprisoned for not more than 5 years, or both.
       ``(2) Enhanced penalty for aggravated cases.--Whoever 
     violates this section while violating another law of the 
     United States or as part of a pattern of any illegal activity 
     involving more than $100,000 in a 12-month period shall be 
     fined twice the amount provided in subsection (b)(3) or 
     (c)(3) (as the case may be) of section 3571 of title 18, 
     United States Code, imprisoned for not more than 10 years, or 
     both.''.
       (b) Amendment Relating to Civil Penalty.--Section 
     5321(a)(4)(A) of title 31, United States Code, is amended by 
     striking ``willfully''.
       (c) Technical and Conforming Amendment.--Subsections (a) 
     and (b) of section 5322 of title 31, United States Code, are 
     amended by inserting ``or 5324'' after ``section 5315'' each 
     place such term appears.

     SEC. 12. GAO STUDY OF CASHIERS' CHECKS.

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study to--
       (1) determine the extent to which the practice of issuing 
     of cashiers' checks by financial institutions is vulnerable 
     to money laundering schemes;
       (2) determine the extent to which additional recordkeeping 
     requirements should be imposed on financial institutions 
     which issue cashiers' checks; and
       (3) analyze such other factors relating to the use and 
     regulation of cashiers' checks as the Comptroller General 
     determines to be appropriate.
       (b) Report Required.--Before the end of the 6-month period 
     beginning on the date of the enactment of this Act, the 
     Comptroller General shall submit a report to the Congress 
     containing--
       (1) the findings and conclusions of the Comptroller General 
     in connection with the study conducted pursuant to subsection 
     (a); and
       (2) such recommendations for legislative and administrative 
     action as the Comptroller General may determine to be 
     appropriate.

     SEC. 13. TECHNICAL CORRECTIONS.

       (a) Title 31, U.S.C., Amendments.--
       (1) Section 5321(a)(5)(A) of title 31, United States Code, 
     is amended by inserting ``any violation of'' after 
     ``causing''.
       (2) Section 5324(a) of title 31, United States Code, is 
     amended--
       (A) by striking ``section 5313(a), section 5325, or the 
     regulations issued thereunder or section 5325 or regulations 
     prescribed under such section 5325'' each place such term 
     appears and inserting ``section 5313(a) or 5325 or any 
     regulation prescribed under any such section''; and
       (B) by striking ``with respect to such transaction''.
       (b) Amendment Relating to Title 31, U.S.C.--
       (1) Effective as of the date of the enactment of the 
     Annunzio-Wylie Anti-Money Laundering Act, section 1517(b) of 
     such Act is amended by striking ``5314'' and inserting 
     ``5318''.
       (2) Section 5239 of the Revised Statutes of the United 
     States is amended by redesignating the 2d subsection (c) (as 
     added by section 1502(a) of the Annunzio-Wylie Anti-Money 
     Laundering Act) as subsection (d).
  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas [Mr. Gonzalez] will be recognized for 20 minutes, and the 
gentleman from Iowa [Mr. Leach] will be recognized for 20 minutes.
  The Chair recognizes the gentleman from Texas [Mr. Gonzalez].
  (Mr. GONZALEZ asked and was given permission to revise and extend his 
remarks.)
  Mr. GONZALEZ. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, actually, H.R. 3235 is the working product of the 
Subcommittee on Financial Institutions Supervision, Regulation and 
Deposit Insurance of the Committee on Banking, Finance and Urban 
Affairs, which subcommittee is chaired by the very able and most valued 
member of the committee, the gentleman from North Carolina [Mr. Neal].
  Mr. Speaker, I would like to speak in favor of H.R. 3235, the Money 
Laundering Suppression Act of 1994. I introduced this legislation last 
fall because its provisions both enhance the Government's ability to 
combat money laundering and reduce unnecessary reporting burdens on 
banks. The bill is based on 18 months of exhaustive study, careful 
analysis and thorough work on every detail.
  A key provision of the bill requires the Secretary of the Treasury to 
substantially reduce the number of currency transaction reports, known 
as CTRs, filed by depository institutions. The 10 million CTR's filed 
every year entail huge costs for filers and the Treasury Department, 
which must process the data. In addition, this mountain of reports 
actually has made it more difficult for law enforcement agencies to 
sort through the database during an investigation. The Secretary will 
accomplish this reduction by exempting banks from filing CTR's on 
customers whose transactions have little or no law enforcement value. 
IRS officials estimate that CTR filings could be reduced by 30 to 40 
percent if these routine deposits and withdrawals were not included, 
thereby making the filing burden lower but law enforcement better.
  The bill also addresses the problem of money laundering at so-called 
nonbank financial institutions. As banks have improved their compliance 
with currency reporting requirements, money-laundering activity has 
shifted to these businesses. It is difficult for the Government to 
monitor them because they do not receive the same attention from 
regulators that banks do. The bill requires nonbank money transmitters 
to register with the Treasury Department, and expresses the sense of 
the Congress that money transmitters should be licensed at the State 
level.

  Finally, the bill addresses a recent Supreme Court decision that has 
made it much more difficult for the Government to convict persons of 
evading the currency reporting requirements. This ruling jeopardizes 
several hundred money-laundering cases currently pending in our 
judicial system. It is therefore urgent that Congress make clear its 
intent that the practice of structuring cash transactions to evade 
reporting requirements is not to be tolerated, which the bill does.
  I urge adoption of the bill and thank Mr. Neal for his contributions 
to it, as well as my Republican colleagues who cooperated in moving the 
legislation forward.
  Mr. Speaker, I yield the balance of our time to the gentleman from 
North Carolina [Mr. Neal] and ask unanimous consent that he be 
permitted to allocate the time under the rule.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
North Carolina [Mr. Neal] for the balance of the time allotted.
  Mr. NEAL of North Carolina. Mr. Speaker, I yield myself such time as 
I may consume.

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