[Congressional Record Volume 153, Number 20 (Thursday, February 1, 2007)]
[Senate]
[Pages S1523-S1526]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY:
  S. 473. A bill to improve the prohibitions on money laundering, and 
for other purposes; to the Committee on the Judiciary.
  Mr. GRASSLEY. Mr. President, I rise to speak in support of a bill 
that I am introducing today, the Combating Money Laundering and 
Terrorist Financing Act of 2007.
  The life-blood of any criminal organization or enterprise is money. 
Whether engaged in drug dealing or terrorism, criminals cannot operate 
without money. The targeting of efforts by criminals to hide 
illegitimate funds in legitimate financial institutions has long been a 
focus of law enforcement.

[[Page S1524]]

Yet like all other aspects of criminal activity, money laundering 
continues to evolve into newer and more complex forms. This is 
particularly true in the funding of terrorist organizations and 
operations. Therefore, money laundering remains not only a criminal 
racket but also poses a grave threat to our national security.
  Tracking how terrorists obtain, store, and move illicit funds is 
among the most critical aspects of stopping their efforts. Among its 
recommendations, the 9/11 Commission report stated that, ``Vigorous 
efforts to track terrorist financing must remain front and center in 
the U.S. counterterrorism efforts.'' We have made some significant 
strides in identifying how terrorists accumulate and move money, but 
more remains to be done. Terrorists and criminal networks continually 
evolve new ways of using legitimate means to launder illegally obtained 
funds. We must not underestimate the intelligence or resolve of these 
groups. Many have already utilized loopholes in current law to hide 
funds or circumvent required reporting to U.S. Customs officials.
  Work must continue so that terrorists and other criminals are left 
without the ability to hide illegally obtained funds inside or in 
concert with legitimate means. We should commit to increasing pressure 
on these organizations to make money laundering as difficult and 
unprofitable as possible. And ultimately, we must give law enforcement 
and prosecutors the ability to effectively deal with criminals' ever-
changing tactics.
  The legislation that I am introducing today will strengthen our 
current money laundering statutes by streamlining those laws, closing 
those loopholes in the laws exploited by criminal organizations, and 
creating more efficient means for dealing with violators of money 
laundering laws. My bill goes about doing this in several ways.
  First, my bill deals with the problem of ``specified unlawful 
activities'' or ``SUAs.'' SUAs are predicate offenses required for 
current money laundering statutes to apply, and there are currently 
over 200 of them. As criminals continue to change methods of laundering 
money, the list of SUAs will continue to grow. This legislation will 
prevent criminals from turning to other means not designated as an SUA, 
and will consolidate the ever growing list of SUAs by including all 
federal and state offenses punishable by imprisonment for more than one 
year. Also, criminals will no longer be able to hide behind borders, as 
this legislation would subject violations in foreign countries that 
have an effect on the U.S. to the same penalties as if they had 
occurred in the United States.
  Currently, most circuit courts must charge each violation of money 
laundering statutes separately. My bill will allow, at the election of 
the government, prosecutors to charge multiple acts under one count in 
an indictment. This will significantly reduce the time and expense 
incurred by the courts in these cases, versus the current method of 
charging each and every violation separately.

  Criminals have realized that the movement of large sums of money 
through traditional financial institutions will result in increased 
scrutiny and investigation. Therefore, many have turned to smuggling 
large quantities of money via a courier or bulk cash smuggling. They 
have developed techniques to avoid having to declare property with a 
value greater than $10,000 and to protect those couriers who are 
caught. My legislation will remove the criminal's ability to get around 
current laws, and remove protections for the smuggler.
  For example, current law requires that couriers know specifics about 
the illegal activities that produced the monies they carry before they 
may be prosecuted under money laundering statutes. As a result, many 
claim ignorance about the illegal origins of the money and are 
released. With my bill, couriers will now be held responsible for their 
actions, even if they try to claim ignorance. Therefore, law 
enforcement can get both the courier and the money off the street. This 
bill also would stiffen the penalty for bulk cash smuggling to 10 
years.
  Another tactic now being used by criminals is to have couriers carry 
blank checks in bearer form. The couriers argue that the check has no 
amount, so it is not subject to declaration. Once the courier arrives 
at his destination, he merely has to fill in the amount, whatever it 
may be. My legislation would remove this loophole by setting the value 
of any blank check in bearer form equal to the highest amount in that 
account during the time period it was being transported, or when it is 
cashed.
  My bill also seeks to mitigate the tactics of ``commingling funds'' 
and ``structured transactions.'' The ``commingling funds'' tactic 
involves depositing illegal money in an account with legitimate funds. 
Under current law, criminals can argue that money withdrawn from the 
account was from the legitimate sources. The language in this bill 
would clarify that transactions on accounts containing more than 
$10,000 in illegally obtained funds will be considered a transaction 
involving more than $10,000 in criminally derived property, regardless 
of how the other money in the account was obtained. Nor will criminals 
be allowed to avoid the law by structuring smaller transactions below 
the $10,000 reporting requirement. Under my bill, individual but 
related transactions will be considered at their aggregate value.
  Finally, this bill will provide the United States Secret Service with 
the legislative and financial resources it needs to combat 
counterfeiters and other criminals seeking to harm our financial 
systems. The U.S. Federal Reserve Note is the most identifiable 
currency in the world and the backbone of many other nations' 
economies. To help ensure continued stability of the Greenback 
worldwide, my bill will make illegal the possession of any materials 
used to make counterfeit currency. This is necessary because technology 
has evolved far beyond the old days of printing plates, stones, and 
digital images. Like the evolving tactics used by those in money 
laundering operations, the counterfeiter constantly changes his tactics 
and technologies. Furthermore, the crime of counterfeiting is becoming 
more and more international in scope every day. The Secret Service has 
identified counterfeiting operations in Colombia, Nigeria, Italy, Iraq, 
and North Korea. This is apparent in the use of bleached notes. 
Bleached notes are simply bills with low denominations being bleached 
with chemicals. This produces a blank canvas of genuine currency paper 
for counterfeiters to work with, to which they can add higher 
denominations. My bill will make it illegal to possess these bleached 
or otherwise altered notes, and give the Secret Service the 
authorization it needs to pursue these criminals outside the United 
States.
  Additionally, this bill gives the Secret Service the authorization to 
use funds seized from criminals to pay for ongoing undercover 
investigations. This seems like common sense, and indeed, every other 
federal investigative agency has this authority. Tasked with protecting 
our financial systems, the Secret Service should be provided with all 
the resources necessary to fund its undercover operations. This makes 
even more sense, considering it's the criminals themselves who would be 
paying those bills. My bill provides that authority to the Secret 
Service and will allow them to continue the important work of 
protecting our financial infrastructure.
  As I said, money is essential for the operation of any criminal or 
terrorist organization. The ability to get, move, and hide these funds 
is critical to the operations of both. We have had some success in 
thwarting this ability, as is evident by the constantly changing 
techniques for laundering money. We must continue to apply pressure on 
these groups, and do everything we can to identify and stop their 
financing operations. This bill is designed to do just that, and put 
these organizations out of business for good. I urge my colleagues to 
join me and my cosponsors, Senators Kyl, Cornyn, and Graham, in 
supporting this legislation to combat the financing of criminal and 
terrorist activities.
  Mr. President, I ask unanimous consent that the text of this bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 473

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page S1525]]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Combating 
     Money Laundering and Terrorist Financing Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                       TITLE I--MONEY LAUNDERING

Sec. 101. Specified unlawful activity.
Sec. 102. Making the domestic money laundering statute apply to 
              ``reverse money laundering'' and interstate 
              transportation.
Sec. 103. Procedure for issuing subpoenas in money laundering cases.
Sec. 104. Transportation or transhipment of blank checks in bearer 
              form.
Sec. 105. Bulk cash smuggling.
Sec. 106. Violations involving commingled funds and structured 
              transactions.
Sec. 107. Charging money laundering as a course of conduct.
Sec. 108. Illegal money transmitting businesses.
Sec. 109. Knowledge that the property is the proceeds of a specific 
              felony.
Sec. 110. Extraterritorial jurisdiction.
Sec. 111. Conduct in aid of counterfeiting.
Sec. 112. Use of proceeds derived from criminal investigations.

                     TITLE II--TECHNICAL AMENDMENTS

Sec. 201. Technical amendments to sections 1956 and 1957 of title 18.

                       TITLE I--MONEY LAUNDERING

     SEC. 101. SPECIFIED UNLAWFUL ACTIVITY.

       Section 1956(c)(7) of title 18, United States Code, is 
     amended to read as follows:
       ``(7) the term `specified unlawful activity' means--
       ``(A) any act or activity constituting an offense in 
     violation of the laws of the United States or any State 
     punishable by imprisonment for a term exceeding 1 year; and
       ``(B) any act or activity occurring outside of the United 
     States that would constitute an offense covered under 
     subparagraph (A) if the act or activity had occurred within 
     the jurisdiction of the United States or any State;''.

     SEC. 102. MAKING THE DOMESTIC MONEY LAUNDERING STATUTE APPLY 
                   TO ``REVERSE MONEY LAUNDERING'' AND INTERSTATE 
                   TRANSPORTATION.

       (a) In General.--Section 1957 of title 18, United States 
     Code, is amended--
       (1) in the heading, by inserting ``or in support of 
     criminal activity'' after ``specified unlawful activity'';
       (2) in subsection (a), by striking ``Whoever'' and 
     inserting the following:
       ``(1) Whoever''; and
       (3) by adding at the end the following:
       ``(2) Whoever--
       ``(A) in any of the circumstances set forth in subsection 
     (d)--
       ``(i) conducts or attempts to conduct a monetary 
     transaction involving property of a value that is greater 
     than $10,000; or
       ``(ii) transports, attempts to transport, or conspires to 
     transport property of a value that is greater than $10,000;
       ``(B) in or affecting interstate commerce; and
       ``(C) either--
       ``(i) knowing that the property was derived from some form 
     of unlawful activity; or
       ``(ii) with the intent to promote the carrying on of 
     specified unlawful activity;
     shall be fined under this title, imprisoned for a term of 
     years not to exceed the statutory maximum for the unlawful 
     activity from which the property was derived or the unlawful 
     activity being promoted, or both.''.
       (b) Chapter Analysis.--The item relating to section 1957 in 
     the table of sections for chapter 95 of title 18, United 
     States Code, is amended to read as follows:

``1957. Engaging in monetary transactions in property derived from 
              specified unlawful activity or in support of criminal 
              activity.''.

     SEC. 103. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY LAUNDERING 
                   CASES.

       (a) In General.--Section 986 of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(e) Procedure for Issuing Subpoenas.--The Attorney 
     General, the Secretary of the Treasury, or the Secretary of 
     Homeland Security may issue a subpoena in any investigation 
     of a violation of sections 1956, 1957 or 1960, or sections 
     5316, 5324, 5331 or 5332 of title 31, United States Code, in 
     the manner set forth under section 3486.''.
       (b) Grand Jury and Trial Subpoenas.--Section 
     5318(k)(3)(A)(i) of title 31, United States Code, is 
     amended--
       (1) by striking ``related to such correspondent account'';
       (2) by striking ``or the Attorney General'' and inserting 
     ``, the Attorney General, or the Secretary of Homeland 
     Security''; and
       (3) by adding at the end the following:
       ``(iii) Grand jury or trial subpoena.--In addition to a 
     subpoena issued by the Attorney General, Secretary of the 
     Treasury, or the Secretary of Homeland Security under clause 
     (i), a subpoena under clause (i) includes a grand jury or 
     trial subpoena requested by the Government.''.
       (c) Fair Credit Reporting Act Amendment.--Section 604(a)(1) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is 
     amended--
       (1) by striking ``or''; and
       (2) by inserting before the period the following: ``, or an 
     investigative subpoena issued under section 5318 of title 31, 
     United States Code''.
       (d) Obstruction of Justice.--Section 1510(b) of title 18, 
     United States Code, is amended--
       (1) in paragraph (2)(A), by inserting ``or an investigative 
     subpoena issued under section 5318 of title 31, United States 
     Code'' after ``grand jury subpoena''; and
       (2) in paragraph (3)(B), by inserting ``, an investigative 
     subpoena issued under section 5318 of title 31, United States 
     Code,'' after ``grand jury subpoena''.
       (e) Right to Financial Privacy Act.--Section 1120 of the 
     Right to Financial Privacy Act of 1978 (12 U.S.C. 3420) is 
     amended--
       (1) in subsection (a)(1), by inserting ``or to the 
     Government'' after ``to the grand jury''; and
       (2) in subsection (b)(1), by inserting ``, or an 
     investigative subpoena issued pursuant to section 5318 of 
     title 31, United States Code,'' after ``grand jury 
     subpoena''.

     SEC. 104. 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 equal to the highest value of the funds in the 
     account on which the monetary instrument is drawn during the 
     time period the monetary instrument was being transported or 
     the time period it was negotiated or was intended to be 
     negotiated.''.

     SEC. 105. BULK CASH SMUGGLING.

       Section 5332 of title 31, United States Code, is amended--
       (1) in subsection (b)(1), by striking ``5 years'' and 
     inserting ``10 years''; and
       (2) by adding the end the following:
       ``(d) Investigative Authority.--Violations of this section 
     may be investigated by the Attorney General, the Secretary of 
     the Treasury, the Secretary of Homeland Security, and the 
     Postal Service.''.

     SEC. 106. VIOLATIONS INVOLVING COMMINGLED FUNDS AND 
                   STRUCTURED TRANSACTIONS.

       Section 1957(f) of title 18, United States Code, is 
     amended--
       (1) in paragraph (2) by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(4) the term `monetary transaction in criminally derived 
     property that is of a value greater than $10,000' includes--
       ``(A) a monetary transaction involving the transfer, 
     withdrawal, encumbrance or other disposition of more than 
     $10,000 from a bank account in which more than $10,000 in 
     proceeds of specified unlawful activity have been commingled 
     with other funds;
       ``(B) a series of monetary transactions in amounts under 
     $10,000 that exceed $10,000 in the aggregate and that are 
     closely related to each other in terms of such factors as 
     time, the identity of the parties involved, the nature and 
     purpose of the transactions, and the manner in which they are 
     conducted; and
       ``(C) any financial transaction covered under section 
     1956(j) that involves more than $10,000 in proceeds of 
     specified unlawful activity; and
       ``(5) the term `monetary transaction involving property of 
     a value that is greater than $10,000' includes a series of 
     monetary transactions in amounts under $10,000 that exceed 
     $10,000 in the aggregate and that are closely related to each 
     other in terms of such factors as time, the identity of the 
     parties involved, the nature and purpose of the transactions, 
     and the manner in which they are conducted.''.

     SEC. 107. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.

       (a) In General.--Section 1956 of title 18, United States 
     Code, is amended 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.''.
       (b) Conspiracies.--Section 1956(h) of title 18, United 
     States Code, is amended by striking ``or section 1957'' and 
     inserting ``, section 1957, or section 1960''.

     SEC. 108. ILLEGAL MONEY TRANSMITTING BUSINESSES.

       (a) Technical Amendments.--
       (1) In general.--Section 1960 of title 18, United States 
     Code, is amended--
       (A) in the heading by striking ``unlicensed'' and inserting 
     ``illegal'';
       (B) in subsection (a), by striking ``unlicensed'' and 
     inserting ``illegal''; and
       (C) in subsection (b)(1), by striking ``unlicensed'' and 
     inserting ``illegal''.
       (2) Chapter analysis.--The item relating to section 1960 in 
     the table of sections for chapter 95 of title 18, United 
     States Code, is amended to read as follows:

``1960. Prohibition of illegal money transmitting businesses.''.
       (b) Definition of Business To Include Informal Value 
     Transfer Systems and Money Brokers for Drug Cartels.--Section 
     1960(b) of title 18, United States Code, is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period and inserting 
     ``; and''; and

[[Page S1526]]

       (3) by adding at the end the following:
       ``(4) the term `business' includes any person or 
     association of persons, formal or informal, licensed or 
     unlicenced, that provides money transmitting services on 
     behalf of any third party in return for remuneration or other 
     consideration.''.
       (c) Prohibition of Unlicensed Money Transmitting 
     Businesses.--Section 1960(b)(1)(B) of title 18, United States 
     Code, is amended by inserting the following before the 
     semicolon: ``, whether or not the defendant knew that the 
     operation was required to comply with such registration 
     requirements''.
       (d) Authority To Investigate.--Section 1960 of title 18, 
     United States Code, is amended by adding at the end the 
     following:
       ``(c) Authority To Investigate.--Violations of this section 
     may be investigated by the Attorney General, the Secretary of 
     the Treasury, and the Secretary of Homeland Security.''.

     SEC. 109. KNOWLEDGE THAT THE PROPERTY IS THE PROCEEDS OF A 
                   SPECIFIC FELONY.

       (a) Proceeds of a Felony.--Section 1956(c)(1) of title 18, 
     United States Code, is amended by inserting ``, and 
     regardless of whether or not the person knew that the 
     activity constituted a felony'' before the semicolon at the 
     end.
       (b) Intent To Conceal or Disguise.--Section 1956(a) of 
     title 18, United States Code, is amended--
       (1) in paragraph (1)(B)(i), by striking ``specified 
     unlawful activity'' and inserting ``some form of unlawful 
     activity''; and
       (2) in paragraph (2)(B)(i), by striking ``specified 
     unlawful activity'' and inserting ``some form of unlawful 
     activity''.

     SEC. 110. EXTRATERRITORIAL JURISDICTION.

       Section 1956(f)(1) of title 18, United States Code, is 
     amended by inserting ``or has an effect in the United 
     States'' after ``conduct occurs in part in the United 
     States''.

     SEC. 111. 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 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 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)--
       (A) by inserting ``, custody,'' after ``control'';
       (B) by inserting ``, forging, or counterfeiting'' after 
     ``to the making'';
       (C) by striking ``such obligation'' and inserting 
     ``obligation''; and
       (D) by inserting ``of the United States'' after ``or other 
     security'';
       (2) in subsection (b)--
       (A) by inserting ``, custody,'' after ``control'';
       (B) striking ``any essentially identical feature or 
     device'' and inserting ``any material or other thing made 
     after or in the similitude of any such deterrent''; and
       (C) by inserting ``, forging, or counterfeiting'' after 
     ``to the making'';
       (3) by redesignating subsection (c) as subsection (d); and
       (4) by inserting after subsection (b) the following:
       ``(c) Whoever has in his control, custody, or possession 
     any altered obligation or security of the United States or 
     any foreign government adapted to the making, forging, or 
     counterfeiting of any obligation or security of the United 
     States or any foreign government, except under the authority 
     of the Secretary of the Treasury, is guilty of a class B 
     felony.''.

     SEC. 112. USE OF PROCEEDS DERIVED FROM CRIMINAL 
                   INVESTIGATIONS.

       (a) Authority of Secret Service.--During fiscal years 2008 
     through 2010, with respect to any undercover investigative 
     operation of the United States Secret Service (in this 
     section referred to as the ``Secret Service'') which is 
     necessary for the detection and prosecution of crimes against 
     the United States--
       (1) sums authorized in any such fiscal year to be 
     appropriated for the Secret Service, including any 
     unobligated balances available from prior fiscal years, may 
     be used to purchase property, buildings, and other 
     facilities, and to lease space, within the United States, the 
     District of Columbia, and the territories and possessions of 
     the United States, without regard to--
       (A) sections 1341 and 3324 of title 31 of the United States 
     Code;
       (B) section 8141 of title 40 of the United States Code;
       (C) sections 3732(a) and 3741 of the Revised Statutes of 
     the United States (41 U.S.C. 11(a) and 22); and
       (D) sections 304(a) and 305 of the Federal Property and 
     Administrative Services Act of 1949 ( 41 U.S.C. 254(a) and 
     255);
       (2) sums authorized in any such fiscal year to be 
     appropriated for the Secret Service, including any 
     unobligated balances available from prior fiscal years, may 
     be used--
       (A) to establish or to acquire proprietary corporations or 
     business entities as part of an undercover investigative 
     operation; and
       (B) to operate such corporations or business entities on a 
     commercial basis, without regard to sections 9102 and 9103 of 
     title 31 of the United States Code;
       (3) sums authorized in any such fiscal year to be 
     appropriated for the Secret Service, including any 
     unobligated balances available from prior fiscal years, and 
     the proceeds seized, earned, or otherwise accrued from any 
     such undercover investigative operation, may be deposited in 
     banks or other financial institutions, without regard to--
       (A) section 648 of title 18 of the United States Code; and
       (B) section 3302 of title 31 of the United States Code; and
       (4) proceeds seized, earned, or otherwise accrued from any 
     such undercover investigative operation may be used to offset 
     the necessary and reasonable expenses incurred in such 
     operation, without regard to section 3302 of title 31 of the 
     United States Code.
       (b) Written Certification of Director Required.--
       (1) In general.--The authority granted under subsection (a) 
     may be exercised only upon the written certification of the 
     Director of the Secret Service or the Director's designee.
       (2) Content of certification.--Each certification issued 
     under paragraph (1) shall state that any action authorized 
     under paragraph (1), (2), (3), or (4) of subsection (a) is 
     necessary to conduct the undercover investigative operation.
       (3) Duration of certification.--Each certification issued 
     under paragraph (1) shall continue in effect for the duration 
     of the undercover investigative operation, without regard to 
     fiscal years.
       (c) Transfer of Proceeds to Treasury.--As soon as 
     practicable after the proceeds from an undercover 
     investigative operation with respect to which an action is 
     authorized and carried out under paragraphs (3) and (4) of 
     subsection (a) are no longer necessary for the conduct of 
     such operation, such proceeds, or the balance of such 
     proceeds, remaining at the time shall be deposited in the 
     Treasury of the United States as miscellaneous receipts.
       (d) Corporations With a High Net Value.--
       (1) In general.--If a corporation or business entity 
     established or acquired as part of an undercover 
     investigative operation under subsection (a)(2) having a net 
     value of over $50,000 is to be liquidated, sold, or otherwise 
     disposed of, the Secret Service, as much in advance as the 
     Director of the Secret Service or the Director's designee 
     determines is practicable, shall report the circumstances of 
     such liquidation, sale, or other disposition to the Secretary 
     of Homeland Security.
       (2) Transfer of proceeds to treasury.--The proceeds of any 
     liquidation, sale, or other disposition of any corporation or 
     business entity under paragraph (1) shall, after all other 
     obligations are met, be deposited in the Treasury of the 
     United States as miscellaneous receipts.
       (e) Audits.--The Secret Service shall--
       (1) conduct, on a quarterly basis, a detailed financial 
     audit of each completed undercover investigative operation 
     where a written certification was issued pursuant to this 
     section; and
       (2) report the results of each such audit in writing to the 
     Secretary of Homeland Security.

                     TITLE II--TECHNICAL AMENDMENTS

     SEC. 201. TECHNICAL AMENDMENTS TO SECTIONS 1956 AND 1957 OF 
                   TITLE 18.

       (a) Unlawful Activity.--Section 1956(c) of title 18, United 
     States Code, is amended--
       (1) in paragraph (2), by striking `` `conducts' '' and 
     inserting `` `conduct' ''; and
       (2) in paragraph (7)(F), by inserting ``, as defined in 
     section 24(a)'' before the semicolon.
       (b) Property From Unlawful Activity.--Section 1957 of title 
     18, United States Code, is amended--
       (1) in subsection (a), by striking ``engages or attempts to 
     engage in'' and inserting ``conducts or attempts to 
     conduct''; and
       (2) in subsection (f)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(4) the term `conduct' has the meaning given such term 
     under section 1956(c)(2).''.
                                 ______