[Congressional Record (Bound Edition), Volume 147 (2001), Part 14]
[House]
[Pages 19978-19991]
[From the U.S. Government Publishing Office, www.gpo.gov]



 MAKING IN ORDER ON WEDNESDAY, OCTOBER 17, 2001, MOTION TO SUSPEND THE 
  RULES AND PASS THE BILL H.R. 3004, FINANCIAL ANTI-TERRORISM ACT OF 
                          2001, WITH AMENDMENT

  Mr. OXLEY (during the Special Order of Mr. McInnis). Mr. Speaker, I 
ask unanimous consent that it be in order at any time on the 
legislative day of Wednesday, October 17, 2001, for the Speaker to 
entertain a motion that the House suspend the rules and pass the bill 
H.R. 3004 with the amendment that I have placed at the desk and that 
the amendment I have placed at the desk be considered as read.


                     Amendment Offered by Mr. Oxley

  The SPEAKER pro tempore (Mr. Simmons). The Clerk will designate the 
amendment.
  The text of the amendment is as follows:

       Amendment offered by Mr. Oxley:

                               H.R. 3004

       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 ``Financial 
     Anti-Terrorism Act of 2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                 TITLE I--STRENGTHENING LAW ENFORCEMENT

Sec. 101. Bulk cash smuggling into or out of the United States.
Sec. 102. Forfeiture in currency reporting cases.
Sec. 103. Illegal money transmitting businesses.
Sec. 104. Long-arm jurisdiction over foreign money launderers.
Sec. 105. Laundering money through a foreign bank.
Sec. 106. Specified unlawful activity for money laundering.
Sec. 107. Laundering the proceeds of terrorism.
Sec. 108. Proceeds of foreign crimes.
Sec. 109. Penalties for violations of geographic targeting orders and 
              certain record keeping requirements.
Sec. 110. Exclusion of aliens involved in money laundering.
Sec. 111. Standing to contest forfeiture of funds deposited into 
              foreign bank that has a correspondent account in the 
              United States.
Sec. 112. Subpoenas for records regarding funds in correspondent bank 
              accounts.
Sec. 113. Authority to order convicted criminal to return property 
              located abroad.
Sec. 114. Corporation represented by a fugitive.
Sec. 115. Enforcement of foreign judgments.
Sec. 116. Reporting provisions and anti-terrorist activities of United 
              States intelligence agencies.
Sec. 117. Financial Crimes Enforcement Network.
Sec. 118. Prohibition on false statements to financial institutions 
              concerning the identity of a customer.

[[Page 19979]]

Sec. 119. Verification of identification.
Sec. 120. Consideration of anti-money laundering record.
Sec. 121. Reporting of suspicious activities by informal underground 
              banking systems, such as hawalas.
Sec. 122. Uniform protection authority for Federal reserve facilities.
Sec. 123. Reports relating to coins and currency received in 
              nonfinancial trade or business.

                  TITLE II--PUBLIC-PRIVATE COOPERATION

Sec. 201. Establishment of highly secure network.
Sec. 202. Report on improvements in data access and other issues.
Sec. 203. Reports to the financial services industry on suspicious 
              financial activities.
Sec. 204. Efficient use of currency transaction report system.
Sec. 205. Public-private task force on terrorist financing issues.
Sec. 206. Suspicious activity reporting requirements.
Sec. 207. Amendments relating to reporting of suspicious activities.
Sec. 208. Authorization to include suspicions of illegal activity in 
              written employment references.
Sec. 209. International cooperation on identification of originators of 
              wire transfers.
Sec. 210. Check truncation study.

          TITLE III--COMBATTING INTERNATIONAL MONEY LAUNDERING

Sec. 301. Special measures for jurisdictions, financial institutions, 
              or international transactions of primary money laundering 
              concern.
Sec. 302. Special due diligence for correspondent accounts and private 
              banking accounts.
Sec. 303. Prohibition on United States correspondent accounts with 
              foreign shell banks.
Sec. 304. Anti-money laundering programs.
Sec. 305. Concentration accounts at financial institutions.
Sec. 306. International cooperation in investigations of money 
              laundering, financial crimes, and the finances of 
              terrorist groups.

                     TITLE IV--CURRENCY PROTECTION

Sec. 401. Counterfeiting domestic currency and obligations.
Sec. 402. Counterfeiting foreign currency and obligations.
Sec. 403. Production of documents.
Sec. 404. Reimbursement.

                 TITLE I--STRENGTHENING LAW ENFORCEMENT

     SEC. 101. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED 
                   STATES.

       (a) Findings.--The Congress finds the following:
       (1) Effective enforcement of the currency reporting 
     requirements of subchapter II of chapter 53 of title 31, 
     United States Code, and the regulations prescribed under such 
     subchapter, has forced drug dealers and other criminals 
     engaged in cash-based businesses to avoid using traditional 
     financial institutions.
       (2) In their effort to avoid using traditional financial 
     institutions, drug dealers and other criminals are forced to 
     move large quantities of currency in bulk form to and through 
     the airports, border crossings, and other ports of entry 
     where the currency can be smuggled out of the United States 
     and placed in a foreign financial institution or sold on the 
     black market.
       (3) The transportation and smuggling of cash in bulk form 
     may now be the most common form of money laundering, and the 
     movement of large sums of cash is one of the most reliable 
     warning signs of drug trafficking, terrorism, money 
     laundering, racketeering, tax evasion and similar crimes.
       (4) The intentional transportation into or out of the 
     United States of large amounts of currency or monetary 
     instruments, in a manner designed to circumvent the mandatory 
     reporting provisions of subchapter II of chapter 53 of title 
     31, United States Code,, is the equivalent of, and creates 
     the same harm as, the smuggling of goods.
       (5) The arrest and prosecution of bulk cash smugglers are 
     important parts of law enforcement's effort to stop the 
     laundering of criminal proceeds, but the couriers who attempt 
     to smuggle the cash out of the United States are typically 
     low-level employees of large criminal organizations, and thus 
     are easily replaced. Accordingly, only the confiscation of 
     the smuggled bulk cash can effectively break the cycle of 
     criminal activity of which the laundering of the bulk cash is 
     a critical part.
       (6) The current penalties for violations of the currency 
     reporting requirements are insufficient to provide a 
     deterrent to the laundering of criminal proceeds. In 
     particular, in cases where the only criminal violation under 
     current law is a reporting offense, the law does not 
     adequately provide for the confiscation of smuggled currency. 
     In contrast, if the smuggling of bulk cash were itself an 
     offense, the cash could be confiscated as the corpus delicti 
     of the smuggling offense.
       (b) Purposes.--The purposes of this section are--
       (1) to make the act of smuggling bulk cash itself a 
     criminal offense;
       (2) to authorize forfeiture of any cash or instruments of 
     the smuggling offense;
       (3) to emphasize the seriousness of the act of bulk cash 
     smuggling; and
       (4) to prescribe guidelines for determining the amount of 
     property subject to such forfeiture in various situations.
       (c) Enactment of Bulk Cash Smuggling Offense.--Subchapter 
     II of chapter 53 of title 31, United States Code, is amended 
     by adding at the end the following:

     ``Sec. 5331. Bulk cash smuggling into or out of the United 
       States

       ``(a) Criminal Offense.--
       ``(1) In general.--Whoever, with the intent to evade a 
     currency reporting requirement under section 5316, knowingly 
     conceals more than $10,000 in currency or other monetary 
     instruments on the person of such individual or in any 
     conveyance, article of luggage, merchandise, or other 
     container, and transports or transfers or attempts to 
     transport or transfer such currency or monetary instruments 
     from a place within the United States to a place outside of 
     the United States, or from a place outside the United States 
     to a place within the United States, shall be guilty of a 
     currency smuggling offense and subject to punishment pursuant 
     to subsection (b).
       ``(2) Concealment on person.--For purposes of this section, 
     the concealment of currency on the person of any individual 
     includes concealment in any article of clothing worn by the 
     individual or in any luggage, backpack, or other container 
     worn or carried by such individual.
       ``(b) Penalty.--
       ``(1) Term of imprisonment.--A person convicted of a 
     currency smuggling offense under subsection (a), or a 
     conspiracy to commit such offense, shall be imprisoned for 
     not more than 5 years.
       ``(2) Forfeiture.--In addition, the court, in imposing 
     sentence under paragraph (1), shall order that the defendant 
     forfeit to the United States, any property, real or personal, 
     involved in the offense, and any property traceable to such 
     property, subject to subsection (d) of this section.
       ``(3) Procedure.--The seizure, restraint, and forfeiture of 
     property under this section shall be governed by section 413 
     of the Controlled Substances Act.
       ``(4) Personal money judgment.--If the property subject to 
     forfeiture under paragraph (2) is unavailable, and the 
     defendant has insufficient substitute property that may be 
     forfeited pursuant to section 413(p) of the Controlled 
     Substances Act, the court shall enter a personal money 
     judgment against the defendant for the amount that would be 
     subject to forfeiture.
       ``(c) Civil Forfeiture.--
       ``(1) In general.--Any property involved in a violation of 
     subsection (a), or a conspiracy to commit such violation, and 
     any property traceable to such violation or conspiracy, may 
     be seized and, subject to subsection (d) of this section, 
     forfeited to the United States.
       ``(2) Procedure.--The seizure and forfeiture shall be 
     governed by the procedures governing civil forfeitures in 
     money laundering cases pursuant to section 981(a)(1)(A) of 
     title 18, United States Code.
       ``(3) Treatment of certain property as involved in the 
     offense.--For purposes of this subsection and subsection (b), 
     any currency or other monetary instrument that is concealed 
     or intended to be concealed in violation of subsection (a) or 
     a conspiracy to commit such violation, any article, 
     container, or conveyance used, or intended to be used, to 
     conceal or transport the currency or other monetary 
     instrument, and any other property used, or intended to be 
     used, to facilitate the offense, shall be considered property 
     involved in the offense.''.
       (c) Clerical Amendment.--The table of sections for 
     subchapter II of chapter 53 of title 31, United States Code, 
     is amended by inserting after the item relating to section 
     5330, the following new item:

``5331. Bulk cash smuggling into or out of the United States.''.

     SEC. 102. FORFEITURE IN CURRENCY REPORTING CASES.

       (a) In General.--Subsection (c) of section 5317 of title 
     31, United States Code, is amended to read as follows:
       ``(c) Forfeiture.--
       ``(1) In general.--The court in imposing sentence for any 
     violation of section 5313, 5316, or 5324 of this title, or 
     any conspiracy to commit such violation, shall order the 
     defendant to forfeit all property, real or personal, involved 
     in the offense and any property traceable thereto.
       ``(2) Procedure.--Forfeitures under this subsection shall 
     be governed by the procedures established in section 413 of 
     the Controlled Substances Act and the guidelines established 
     in paragraph (4).
       ``(3) Civil forfeiture.--Any property involved in a 
     violation of section 5313, 5316, or 5324 of this title, or 
     any conspiracy to commit any such violation, and any property 
     traceable to any such violation or conspiracy, may be seized 
     and, subject to paragraph (4), forfeited to the United States 
     in accordance with the procedures governing civil forfeitures 
     in money laundering cases pursuant to section 981(a)(1)(A) of 
     title 18, United States Code.''.

[[Page 19980]]

       (b) Conforming Amendments.--
       (1) Section 981(a)(1)(A) of title 18, United States Code, 
     is amended by striking ``of section 5313(a) or 5324(a) of 
     title 31, or''.
       (2) Section 982(a)(1) of title 18, United States Code, is 
     amended by striking ``of section 5313(a), 5316, or 5324 of 
     title 31, or''.

     SEC. 103. ILLEGAL MONEY TRANSMITTING BUSINESSES.

       (a) Scienter Requirement for Section 1960 Violation.--
     Section 1960 of title 18, United States Code, is amended to 
     read as follows:

     ``Sec. 1960. Prohibition of unlicensed money transmitting 
       businesses

       ``(a) Whoever knowingly conducts, controls, manages, 
     supervises, directs, or owns all or part of an unlicensed 
     money transmitting business, shall be fined in accordance 
     with this title or imprisoned not more than 5 years, or both.
       ``(b) As used in this section--
       ``(1) the term `unlicensed money transmitting business' 
     means a money transmitting business which affects interstate 
     or foreign commerce in any manner or degree and--
       ``(A) is operated without an appropriate money transmitting 
     license in a State where such operation is punishable as a 
     misdemeanor or a felony under State law, whether or not the 
     defendant knew that the operation was required to be licensed 
     or that the operation was so punishable;
       ``(B) fails to comply with the money transmitting business 
     registration requirements under section 5330 of title 31, 
     United States Code, or regulations prescribed under such 
     section; or
       ``(C) otherwise involves the transportation or transmission 
     of funds that are known to the defendant to have been derived 
     from a criminal offense or are intended to be used to be used 
     to promote or support unlawful activity;
       ``(2) the term `money transmitting' includes transferring 
     funds on behalf of the public by any and all means including 
     but not limited to transfers within this country or to 
     locations abroad by wire, check, draft, facsimile, or 
     courier; 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) Seizure of Illegally Transmitted Funds.--Section 
     981(a)(1)(A) of title 18, United States Code, is amended by 
     striking ``or 1957'' and inserting ``, 1957 or 1960''.
       (c) Clerical Amendment.--The table of sections for chapter 
     95 of title 18, United States Code, is amended in the item 
     relating to section 1960 by striking ``illegal'' and 
     inserting ``unlicensed''.

     SEC. 104. LONG-ARM JURISDICTION OVER FOREIGN MONEY 
                   LAUNDERERS.

       Section 1956(b) of title 18, United States Code, is 
     amended--
       (1) by striking ``(b) Whoever'' and inserting ``(b)(1) 
     Whoever'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (3) by striking ``subsection (a)(1) or (a)(3),'' and 
     inserting ``subsection (a)(1) or (a)(2) or section 1957,''; 
     and
       (4) by adding at the end the following new paragraphs:
       ``(2) For purposes of adjudicating an action filed or 
     enforcing a penalty ordered under this section, the district 
     courts shall have jurisdiction over any foreign person, 
     including any financial institution authorized under the laws 
     of a foreign country, against whom the action is brought, 
     if--
       ``(A) service of process upon such foreign person is made 
     under the Federal Rules of Civil Procedure or the laws of the 
     country where the foreign person is found; and
       ``(B) the foreign person--
       ``(i) commits an offense under subsection (a) involving a 
     financial transaction that occurs in whole or in part in the 
     United States;
       ``(ii) converts to such person's own use property in which 
     the United States has an ownership interest by virtue of the 
     entry of an order of forfeiture by a court of the United 
     States; or
       ``(iii) is a financial institution that maintains a 
     correspondent bank account at a financial institution in the 
     United States.
       ``(3) The court may issue a pretrial restraining order or 
     take any other action necessary to ensure that any bank 
     account or other property held by the defendant in the United 
     States is available to satisfy a judgment under this 
     section.''.

     SEC. 105. LAUNDERING MONEY THROUGH A FOREIGN BANK.

       Section 1956(c)(6) of title 18, United States Code, is 
     amended to read as follows:
       ``(6) the term `financial institution' includes any 
     financial institution described in section 5312(a)(2) of 
     title 31, United States Code, or the regulations promulgated 
     thereunder, as well as any foreign bank, as defined in 
     paragraph (7) of section 1(b) of the International Banking 
     Act of 1978 (12 U.S.C. 3101(7));''.

     SEC. 106. SPECIFIED UNLAWFUL ACTIVITY FOR MONEY LAUNDERING.

       (a) In General.--Section 1956(c)(7) of title 18, United 
     States Code, is amended--
       (1) in subparagraph (B)--
       (A) by striking clause (ii) and inserting the following new 
     clause:
       ``(ii) any act or acts constituting a crime of violence, as 
     defined in section 16 of this title;''; and
       (B) by inserting after clause (iii) the following new 
     clauses:
       ``(iv) bribery of a public official, or the 
     misappropriation, theft, or embezzlement of public funds by 
     or for the benefit of a public official;
       ``(v) smuggling or export control violations involving 
     munitions listed in the United States Munitions List or 
     technologies with military applications as defined in the 
     Commerce Control List of the Export Administration 
     Regulations; or
       ``(vi) an offense with respect to which the United States 
     would be obligated by a bilateral treaty either to extradite 
     the alleged offender or to submit the case for prosecution, 
     if the offender were found within the territory of the United 
     States;''; and
       (2) in subparagraph (D)--
       (A) by inserting ``section 541 (relating to goods falsely 
     classified),'' before ``section 542'';
       (B) by inserting ``section 922(1) (relating to the unlawful 
     importation of firearms), section 924(n) (relating to 
     firearms trafficking),'' before ``section 956'';
       (C) by inserting ``section 1030 (relating to computer fraud 
     and abuse),'' before ``1032''; and
       (D) by inserting ``any felony violation of the Foreign 
     Agents Registration Act of 1938, as amended,'' before ``or 
     any felony violation of the Foreign Corrupt Practices Act''.
       (b) Rule of Construction.--None of the changes or 
     amendments made by the Financial Anti-Terrorism Act of 2001 
     shall expand the jurisdiction of any Federal or State court 
     over any civil action or claim for monetary damages for the 
     nonpayment of taxes or duties under the revenue laws of a 
     foreign state, or any political subdivision thereof, except 
     as such actions or claims are authorized by United States 
     treaty that provides the United States and its political 
     subdivisions with reciprocal rights to pursue such actions or 
     claims in the courts of the foreign state and its political 
     subdivisions.

     SEC. 107. LAUNDERING THE PROCEEDS OF TERRORISM.

       Section 1956(c)(7)(D) of title 18, United States Code, is 
     amended by inserting ``or 2339B'' after ``2339A''.

     SEC. 108. PROCEEDS OF FOREIGN CRIMES.

       Section 981(a)(1)(B) of title 18, United States Code, is 
     amended to read as follows:
       ``(B) Any property, real or personal, within the 
     jurisdiction of the United States, constituting, derived 
     from, or traceable to, any proceeds obtained directly or 
     indirectly from an offense against a foreign nation, or any 
     property used to facilitate such offense, if--
       ``(i) the offense involves the manufacture, importation, 
     sale, or distribution of a controlled substance (as such term 
     is defined for the purposes of the Controlled Substances 
     Act), or any other conduct described in section 
     1956(c)(7)(B),
       ``(ii) the offense would be punishable within the 
     jurisdiction of the foreign nation by death or imprisonment 
     for a term exceeding one year, and
       ``(iii) the offense would be punishable under the laws of 
     the United States by imprisonment for a term exceeding one 
     year if the act or activity constituting the offense had 
     occurred within the jurisdiction of the United States.''.

     SEC. 109. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING 
                   ORDERS AND CERTAIN RECORD KEEPING REQUIREMENTS.

       (a) Civil Penalty for Violation of Targeting Order.--
     Section 5321(a)(1) of title 31, United States Code, is 
     amended--
       (1) by inserting ``or order issued'' after ``subchapter or 
     a regulation prescribed''; and
       (2) by inserting ``, or willfully violating a regulation 
     prescribed under section 21 of the Federal Deposit Insurance 
     Act or section 123 of Public Law 91-508,'' after ``sections 
     5314 and 5315)''.
       (b) Criminal Penalties for Violation of Targeting Order.--
       Section 5322 of title 31, United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``or order issued'' after ``willfully 
     violating this subchapter or a regulation prescribed''; and
       (B) by inserting ``, or willfully violating a regulation 
     prescribed under section 21 of the Federal Deposit Insurance 
     Act or section 123 of Public Law 91-508,'' after ``under 
     section 5315 or 5324)'';
       (2) in subsection (b)--
       (A) by inserting ``or order issued'' after ``willfully 
     violating this subchapter or a regulation prescribed''; and
       (B) by inserting ``or willfully violating a regulation 
     prescribed under section 21 of the Federal Deposit Insurance 
     Act or section 123 of Public Law 91-508,'' after ``under 
     section 5315 or 5324),'';
       (c) Structuring Transactions To Evade Targeting Order or 
     Certain Record Keeping Requirements.--Section 5324(a) of 
     title 31, United States Code, is amended--
       (1) by inserting a comma after ``shall'';
       (2) by striking ``section--'' and inserting ``section, the 
     reporting requirements imposed by any order issued under 
     section 5326, or the record keeping requirements imposed by 
     any regulation prescribed under section 21 of the Federal 
     Deposit Insurance Act or section 123 of Public Law 91-508--
     ''; and

[[Page 19981]]

       (3) in paragraphs (1) and (2), by inserting ``, to file a 
     report required by any order issued under section 5326, or to 
     maintain a record required pursuant to any regulation 
     prescribed under section 21 of the Federal Deposit Insurance 
     Act or section 123 of Public Law 91-508'' after ``regulation 
     prescribed under any such section'' each place that term 
     appears.
       (d) Increase in Civil Penalties for Violation of Certain 
     Record Keeping Requirements.--
       (1) Federal deposit insurance act.--Section 21(j)(1) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1829b(j)(1)) is 
     amended by striking ``$10,000'' and inserting ``the greater 
     of--
       ``(A) the amount (not to exceed $100,000) involved in the 
     transaction (if any) with respect to which the violation 
     occurred; or
       ``(B) $25,000''.
       (2) Public law 91-508.--Section 125(a) of Public Law 91-508 
     (12 U.S.C. 1955(a)) is amended by striking ``$10,000'' and 
     inserting ``the greater of--
       ``(1) the amount (not to exceed $100,000) involved in the 
     transaction (if any) with respect to which the violation 
     occurred; or
       ``(2) $25,000''.
       (e) Criminal Penalties for Violation of Certain Record 
     Keeping Requirements.--
       (1) Section 126.--Section 126 of Public Law 91-508 (12 
     U.S.C. 1956) is amended to read as follows:

     ``SEC. 126. CRIMINAL PENALTY.

       ``A person that willfully violates this chapter, section 21 
     of the Federal Deposit Insurance Act, or a regulation 
     prescribed under this chapter or that section 21, shall be 
     fined not more than $250,000, or imprisoned for not more than 
     5 years, or both.''.
       (2) Section 127.--Section 127 of Public Law 91-508 (12 
     U.S.C. 1957) is amended to read as follows:

     ``SEC. 127. ADDITIONAL CRIMINAL PENALTY IN CERTAIN CASES.

       ``A person that willfully violates this chapter, section 21 
     of the Federal Deposit Insurance Act, or a regulation 
     prescribed under this chapter or that section 21, 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 not more than $500,000, 
     imprisoned for not more than 10 years, or both.''.

     SEC. 110. EXCLUSION OF ALIENS INVOLVED IN MONEY LAUNDERING.

       (a) In General.--Section 212 of the Immigration and 
     Nationality Act, as amended (8 U.S.C. 1182), is amended in 
     subsection (a)(2)--
       (1) by redesignating subparagraphs (D), (E), (F), (G), and 
     (H) as subparagraphs (E), (F), (G), (H), and (I), 
     respectively; and
       (2) by inserting after subparagraph (C) the following new 
     subparagraph (D):
       ``(D) Money laundering activities.--
       ``(i) In general.--Any alien who the consular officer or 
     the Attorney General knows or has reason to believe is or has 
     been engaged in activities which if engaged in within the 
     United States would constitute a violation of the money 
     laundering provisions section 1956, 1957, or 1960 of title 
     18, United States Code, or has knowingly assisted, abetted, 
     or conspired or colluded with others in any such illicit 
     activity is inadmissible.
       ``(ii) Related individuals.--Any alien who the consular 
     officer or the Attorney General knows or has reason to 
     believe is the spouse, son, or daughter of an alien 
     inadmissible under clause (i), has, within the previous 5 
     years, obtained any financial or other benefit from such 
     illicit activity of that alien, and knew or reasonably should 
     have known that the financial or other benefit was the 
     product of such illicit activity, is inadmissible, except 
     that the Attorney General may, in the full discretion of the 
     Attorney General, waive the exclusion of the spouse, son, or 
     daughter of an alien under this clause if the Attorney 
     General determines that exceptional circumstances exist that 
     justify such waiver.''.
       (b) Conforming amendment.--Section 212(h)(1)(A)(i) of the 
     Immigration and Nationality Act, as amended (8 U.S.C. 1182), 
     is amended by striking ``(D)(i) or (D)(ii)'' and inserting 
     ``(E)(i) or (E)(ii)''.

     SEC. 111. STANDING TO CONTEST FORFEITURE OF FUNDS DEPOSITED 
                   INTO FOREIGN BANK THAT HAS A CORRESPONDENT 
                   ACCOUNT IN THE UNITED STATES.

       Section 981 of title 18, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(k) Correspondent Bank Accounts.--
       ``(1) Treatment of accounts of correspondent bank in 
     domestic financial institutions.--
       ``(A) In general.--For the purpose of a forfeiture under 
     this section or under the Controlled Substances Act, if funds 
     are deposited into a dollar-denominated bank account in a 
     foreign financial institution, and that foreign financial 
     institution has a correspondent account with a financial 
     institution in the United States, the funds deposited into 
     the foreign financial institution (the respondent bank) shall 
     be deemed to have been deposited into the correspondent 
     account in the United States, and any restraining order, 
     seizure warrant, or arrest warrant in rem regarding such 
     funds may be served on the correspondent bank, and funds in 
     the correspondent account up to the value of the funds 
     deposited into the dollar-denominated account in the foreign 
     financial institution may be seized, arrested or restrained.
       ``(B) Authority to suspend.--The Attorney General, in 
     consultation with the Secretary, may suspend or terminate a 
     forfeiture under this section if the Attorney General 
     determines that a conflict of law exists between the laws of 
     the jurisdiction in which the foreign bank is located and the 
     laws of the United States with respect to liabilities arising 
     from the restraint, seizure, or arrest of such funds, and 
     that such suspension or termination would be in the interest 
     of justice and would not harm the national interests of the 
     United States.
       ``(2) No requirement for government to trace funds.--If a 
     forfeiture action is brought against funds that are 
     restrained, seized, or arrested under paragraph (1), the 
     Government shall not be required to establish that such funds 
     are directly traceable to the funds that were deposited into 
     the respondent bank, nor shall it be necessary for the 
     Government to rely on the application of Section 984 of this 
     title.
       ``(3) Claims brought by owner of the funds.--If a 
     forfeiture action is instituted against funds seized, 
     arrested, or restrained under paragraph (1), the owner of the 
     funds may contest the forfeiture by filing a claim pursuant 
     to section 983.
       ``(4) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Correspondent account.--The term `correspondent 
     account' has the meaning given to the term `interbank 
     account' in section 984(c)(2)(B).
       ``(B) Owner.--
       ``(i) In general.--Except as provided in clause (ii), the 
     term `owner'--

       ``(I) means the person who was the owner, as that term is 
     defined in section 983(d)(6), of the funds that were 
     deposited into the foreign bank at the time such funds were 
     deposited; and
       ``(II) does not include either the foreign bank or any 
     financial institution acting as an intermediary in the 
     transfer of the funds into the interbank account.

       ``(ii) Exception.--The foreign bank may be considered the 
     `owner' of the funds (and no other person shall qualify as 
     the owner of such funds) only if--

       ``(I) the basis for the forfeiture action is wrongdoing 
     committed by the foreign bank; or
       ``(II) the foreign bank establishes, by a preponderance of 
     the evidence, that prior to the restraint, seizure, or arrest 
     of the funds, the foreign bank had discharged all or part of 
     its obligation to the prior owner of the funds, in which case 
     the foreign bank shall be deemed the owner of the funds to 
     the extent of such discharged obligation.''.

     SEC. 112. SUBPOENAS FOR RECORDS REGARDING FUNDS IN 
                   CORRESPONDENT BANK ACCOUNTS.

       (a) In General.--Subchapter II of chapter 53 of title 31, 
     United States Code, is amended by inserting after section 
     5331 (as added by section 101) the following new section:

     ``Sec. 5332. Subpoenas for records

       ``(a) Designation By Foreign Financial Institution of 
     Agent.--Any foreign financial institution that has a 
     correspondent bank account at a financial institution in the 
     United States shall designate a person residing in the United 
     States as a person authorized to accept a subpoena for bank 
     records or other legal process served on the foreign 
     financial institution.
       ``(b) Maintenance of Records By Domestic Financial 
     Institution.--
       ``(1) In general.--Any domestic financial institution that 
     maintains a correspondent bank account for a foreign 
     financial institution shall maintain records regarding the 
     names and addresses of the owners of the foreign financial 
     institution, and the name and address of the person who may 
     be served with a subpoena for records regarding any funds 
     transferred to or from the correspondent account.
       ``(2) Provision to law enforcement agency.--A domestic 
     financial institution shall provide names and addresses 
     maintained under paragraph (1) to a Government authority (as 
     defined in section 1101(3) of the Right to Financial Privacy 
     Act of 1978) within 7 days of the receipt of a request, in 
     writing, for such records.
       ``(c) Administrative Subpoena.--
       ``(1) In general.--The Attorney General and the Secretary 
     of the Treasury may each issue an administrative subpoena for 
     records relating to the deposit of any funds into a dollar-
     denominated account in a foreign financial institution that 
     maintains a correspondent account at a domestic financial 
     institution.
       ``(2) Manner of issuance.--Any subpoena issued by the 
     Attorney General or the Secretary of the Treasury under 
     paragraph (1) shall be issued in the manner described in 
     section 3486 of title 18, and may be served on the 
     representative designated by the foreign financial 
     institution pursuant to subsection (a) to accept legal 
     process in the United States, or in a foreign country 
     pursuant to any mutual legal assistance treaty, multilateral 
     agreement, or other request for international law enforcement 
     assistance.
       ``(d) Correspondent Account Defined.--For purposes of this 
     section, the term `correspondent account' has the same 
     meaning

[[Page 19982]]

     as the term `interbank account' as such term is defined in 
     section 984(c)(2)(B) of title 18, United States Code.''.
       (b) Clerical amendments.--The table of sections for 
     subchapter II of chapter 53 of title 31, United States Code, 
     is amended by inserting after the item relating to section 
     5331 (as added by section 101) the following new item:

``5332. Subpoenas for records.''.

       (c) Effective Date.--Section 5332(a) of title 31, United 
     States Code, (as added by subsection (a) of this section 
     shall apply after the end of the 30-day period beginning on 
     the date of the enactment of this Act.
       (d) Requests for Records.--Section 3486(a)(1)(A)(i) of 
     title 18, United States Code, is amended by striking ``; or 
     (II) a Federal offense involving the sexual exploitation or 
     abuse of children,'' and inserting ``, (II) a Federal offense 
     involving the sexual exploitation or abuse of children, or 
     (III) a money laundering offense in violation of section 
     1956, 1957 or 1960 of this title,''.

     SEC. 113. AUTHORITY TO ORDER CONVICTED CRIMINAL TO RETURN 
                   PROPERTY LOCATED ABROAD.

       (a) Forfeiture of Substitute Property.--Section 413(p) of 
     the Controlled Substances Act (21 U.S.C. 853) is amended to 
     read as follows:
       ``(p) Forfeiture of Substitute Property.--
       ``(1) In general.--Paragraph (2) of this subsection shall 
     apply, if any property described in subsection (a), as a 
     result of any act or omission of the defendant--
       ``(A) cannot be located upon the exercise of due diligence;
       ``(B) has been transferred or sold to, or deposited with, a 
     third party;
       ``(C) has been placed beyond the jurisdiction of the court;
       ``(D) has been substantially diminished in value; or
       ``(E) has been commingled with other property which cannot 
     be divided without difficulty.
       ``(2) Substitute property.--In any case described in any of 
     subparagraphs (A) through (E) of paragraph (1), the court 
     shall order the forfeiture of any other property of the 
     defendant, up to the value of any property described in 
     subparagraphs (A) through (E) of paragraph (1), as 
     applicable.
       ``(3) Return of property to jurisdiction.--In the case of 
     property described in paragraph (1)(C), the court may, in 
     addition to any other action authorized by this subsection, 
     order the defendant to return the property to the 
     jurisdiction of the court so that the property may be seized 
     and forfeited.''.
       (b) Protective Orders.--Section 413(e) of the Controlled 
     Substances Act (21 U.S.C. 853(e)) is amended by adding at the 
     end the following:
       ``(4) Order to repatriate and deposit.--
       ``(A) In general.--Pursuant to its authority to enter a 
     pretrial restraining order under this section, the court may 
     order a defendant to repatriate any property that may be 
     seized and forfeited, and to deposit that property pending 
     trial in the registry of the court, or with the United States 
     Marshals Service or the Secretary of the Treasury, in an 
     interest-bearing account, if appropriate.
       ``(B) Failure to comply.--Failure to comply with an order 
     under this subsection, or an order to repatriate property 
     under subsection (p), shall be punishable as a civil or 
     criminal contempt of court, and may also result in an 
     enhancement of the sentence of the defendant under the 
     obstruction of justice provision of the Federal Sentencing 
     Guidelines.''.

     SEC. 114. CORPORATION REPRESENTED BY A FUGITIVE.

       Section 2466 of title 28, United States Code, is amended by 
     designating the present matter as subsection (a), and adding 
     at the end the following:
       ``(b) Subsection (a) may be applied to a claim filed by a 
     corporation if any majority shareholder, or individual filing 
     the claim on behalf of the corporation is a person to whom 
     subsection (a) applies.''.

     SEC. 115. ENFORCEMENT OF FOREIGN JUDGMENTS.

       Section 2467 of title 28, United States Code, is amended--
       (1) in subsection (d), by inserting after paragraph (2) the 
     following new paragraph:
       ``(3) Preservation of property.--To preserve the 
     availability of property subject to a foreign forfeiture or 
     confiscation judgment, the Government may apply for, and the 
     court may issue, a restraining order pursuant to section 
     983(j) of title 18, United States Code, at any time before or 
     after an application is filed pursuant to subsection (c)(1). 
     The court, in issuing the restraining order--
       ``(A) may rely on information set forth in an affidavit 
     describing the nature of the proceeding or investigation 
     underway in the foreign country, and setting forth a 
     reasonable basis to believe that the property to be 
     restrained will be named in a judgment of forfeiture at the 
     conclusion of such proceeding; or
       ``(B) may register and enforce a restraining order that has 
     been issued by a court of competent jurisdiction in the 
     foreign country and certified by the Attorney General 
     pursuant to subsection (b)(2).

     No person may object to the restraining order on any ground 
     that is the subject of parallel litigation involving the same 
     property that is pending in a foreign court.'';
       (2) in subsection (b)(1)(C), by striking ``establishing 
     that the defendant received notice of the proceedings in 
     sufficient time to enable the defendant'' and inserting 
     ``establishing that the foreign nation took steps, in 
     accordance with the principles of due process, to give notice 
     of the proceedings to all persons with an interest in the 
     property in sufficient time to enable such persons'';
       (3) in subsection (d)(1)(D), by striking ``the defendant in 
     the proceedings in the foreign court did not receive notice'' 
     and inserting ``the foreign nation did not take steps, in 
     accordance with the principles of due process, to give notice 
     of the proceedings to a person with an interest in the 
     property''; and
       (4) in subsection (a)(2)(A), by inserting ``, any violation 
     of foreign law that would constitute a violation of an 
     offense for which property could be forfeited under Federal 
     law if the offense were committed in the United States'' 
     after ``United Nations Convention''.

     SEC. 116. REPORTING PROVISIONS AND ANTI-TERRORIST ACTIVITIES 
                   OF UNITED STATES INTELLIGENCE AGENCIES.

       (a) Amendment Relating to the Purposes of Chapter 53 of 
     Title 31, United States Code.--Section 5311 of title 31, 
     United States Code, is amended by inserting before the period 
     at the end the following: ``, or in the conduct of 
     intelligence or counterintelligence activities, including 
     analysis, to protect against international terrorism''.
       (b) Amendment Relating to Reporting of Suspicious 
     Activities.--Section 5318(g)(4)(B) of title 31, United States 
     Code, is amended by striking ``or supervisory agency'' and 
     inserting ``, supervisory agency, or United States 
     intelligence agency for use in the conduct of intelligence or 
     counterintelligence activities, including analysis, to 
     protect against international terrorism''.
       (c) Amendment Relating to Availability of Reports.--Section 
     5319 of title 31, United States Code, is amended to read as 
     follows:

     ``Sec. 5319. Availability of reports

       ``The Secretary of the Treasury shall make information in a 
     report filed under this subchapter available to an agency, 
     including any State financial institutions supervisory 
     agency, United States intelligence agency or self-regulatory 
     organization registered with the Securities and Exchange 
     Commission or the Commodity Futures Trading Commission, upon 
     request of the head of the agency or organization. The report 
     shall be available for a purpose that is consistent with this 
     subchapter. The Secretary may only require reports on the use 
     of such information by any State financial institutions 
     supervisory agency for other than supervisory purposes or by 
     United States intelligence agencies. However, a report and 
     records of reports are exempt from disclosure under section 
     552 of title 5.''.
       (d) Amendment Relating to the Retention of Records by 
     Insured Depository Institutions.--Section 21(a) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1829b(a)) is 
     amended--
       (1) in paragraph (1), by inserting ``, or in the conduct of 
     intelligence or counterintelligence activities, including 
     analysis, to protect against international terrorism'' after 
     ``proceedings''; and
       (2) in paragraph (2), by inserting ``, or in the conduct of 
     intelligence or counterintelligence activities, including 
     analysis, to protect against international terrorism'' before 
     the period at the end.
       (e) Amendment Relating to the Retention of Records by 
     Uninsured Institutions.--Section 123(a) of Public Law 91-508 
     (12 U.S.C. 1953(a)) is amended by inserting ``, or in the 
     conduct of intelligence or counterintelligence activities, 
     including analysis, to protect against international 
     terrorism'' after ``proceedings''.
       (f) Amendments to the Right to Financial Privacy Act.--The 
     Right to Financial Privacy Act of 1978 is amended--
       (1) in section 1112(a) (12 U.S.C. 3412(a)), by inserting 
     ``, or intelligence or counterintelligence activity, 
     investigation or analysis related to international 
     terrorism'' after ``legitimate law enforcement inquiry'';
       (2) in section 1114(a)(1) (12 U.S.C. 3414(a)(1))--
       (A) in subparagraph (A), by striking ``or'' at the end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(C) a Government authority authorized to conduct 
     investigations of, or intelligence or counterintelligence 
     analyses related to, international terrorism for the purpose 
     of conducting such investigations or analyses.''; and
       (3) in section 1120(a)(2) (12 U.S.C. 3420(a)(2)), by 
     inserting ``, or for a purpose authorized by section 
     1112(a)'' before the semicolon at the end.
       (g) Amendment to the Fair Credit Reporting Act.--
       (1) In general.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.) is amended--
       (A) by redesignating the second of the 2 sections 
     designated as section 624 (15 U.S.C. 1681u) (relating to 
     disclosure to FBI for counterintelligence purposes) as 
     section 625; and

[[Page 19983]]

       (B) by adding at the end the following new section:

     ``Sec. 626. Disclosures to governmental agencies for 
       counterterrorism purposes

       ``(a) Disclosure.--Notwithstanding section 604 or any other 
     provision of this title, a consumer reporting agency shall 
     furnish a consumer report of a consumer and all other 
     information in a consumer's file to a government agency 
     authorized to conduct investigations of, or intelligence or 
     counterintelligence activities or analysis related to, 
     international terrorism when presented with a written 
     certification by such government agency that such information 
     is necessary for the agency's conduct or such investigation, 
     activity or analysis.
       ``(b)  Form of Certification.--The certification described 
     in subsection (a) shall be signed by a supervisory official 
     designated by the head of a Federal agency or an officer of a 
     Federal agency whose appointment to office is required to be 
     made by the President, by and with the advice and consent of 
     the Senate.
       ``(c) Confidentiality.--No consumer reporting agency, or 
     officer, employee, or agent of such consumer reporting 
     agency, shall disclose to any person, or specify in any 
     consumer report, that a government agency has sought or 
     obtained access to information under subsection (a).
       ``(d) Rule of Construction.--Nothing in section 625 shall 
     be construed to limit the authority of the Director of the 
     Federal Bureau of Investigation under this section.
       ``(e) Safe Harbor.--Notwithstanding any other provision of 
     this subchapter, any consumer reporting agency or agent or 
     employee thereof making disclosure of consumer reports or 
     other information pursuant to this section in good-faith 
     reliance upon a certification of a governmental agency 
     pursuant to the provisions of this section shall not be 
     liable to any person for such disclosure under this 
     subchapter, the constitution of any State, or any law or 
     regulation of any State or any political subdivision of any 
     State.''.
       (2) Clerical amendments.--The table of sections for the 
     Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is 
     amended--
       (A) by redesignating the second of the 2 items designated 
     as section 624 as section 625; and
       (B) by inserting after the item relating to section 625 (as 
     so redesignated) the following new item:

``626. Disclosures to governmental agencies for counterterrorism 
              purposes.''.

       (h) Application of Amendments.--The amendments made by this 
     section shall apply with respect to reports filed or records 
     maintained on, before, or after the date of the enactment of 
     this Act.

     SEC. 117. FINANCIAL CRIMES ENFORCEMENT NETWORK.

       (a) In General.--Subchapter I of chapter 3 of title 31, 
     United States Code, is amended--
       (1) by redesignating section 310 as section 311; and
       (2) by inserting after section 309 the following new 
     section:

     ``Sec. 310. Financial Crimes Enforcement Network

       ``(a) In General.--The Financial Crimes Enforcement Network 
     established by order of the Secretary of the Treasury 
     (Treasury Order Numbered 105-08) on April 25, 1990, shall be 
     a bureau in the Department of the Treasury.
       ``(b) Director.--
       ``(1) Appointment.--The head of the Financial Crimes 
     Enforcement Network shall be the Director who shall be 
     appointed by the Secretary of the Treasury.
       ``(2) Duties and powers.--The duties and powers of the 
     Director are as follows:
       ``(A) Advise and make recommendations on matters relating 
     to financial intelligence, financial criminal activities, and 
     other financial activities to the Under Secretary for 
     Enforcement.
       ``(B) Maintain a government-wide data access service, with 
     access, in accordance with applicable legal requirements, to 
     the following:
       ``(i) Information collected by the Department of the 
     Treasury, including report information filed under 
     subchapters II and III of chapter 53 of this title (such as 
     reports on cash transactions, foreign financial agency 
     transactions and relationships, foreign currency 
     transactions, exporting and importing monetary instruments, 
     and suspicious activities), chapter 2 of title I of Public 
     Law 91-508, and section 21 of the Federal Deposit Insurance 
     Act.
       ``(ii) Information regarding national and international 
     currency flows.
       ``(iii) Other records and data maintained by other Federal, 
     State, local, and foreign agencies, including financial and 
     other records developed in specific cases.
       ``(iv) Other privately and publicly available information.
       ``(C) Analyze and disseminate the available data in 
     accordance with applicable legal requirements and policies 
     and guidelines established by the Secretary of the Treasury 
     and the Under Secretary for Enforcement to--
       ``(i) identify possible criminal activity to appropriate 
     Federal, State, local, and foreign law enforcement agencies;
       ``(ii) support ongoing criminal financial investigations 
     and prosecutions and related proceedings, including civil and 
     criminal tax and forfeiture proceedings;
       ``(iii) identify possible instances of noncompliance with 
     subchapters II and III of chapter 53 of this title, chapter 2 
     of title I of Public Law 91-508, and section 21 of the 
     Federal Deposit Insurance Act to Federal agencies with 
     statutory responsibility for enforcing compliance with such 
     provisions and other appropriate Federal regulatory agencies;
       ``(iv) evaluate and recommend possible uses of special 
     currency reporting requirements under section 5326;
       ``(v) determine emerging trends and methods in money 
     laundering and other financial crimes;
       ``(vi) support the conduct of intelligence or 
     counterintelligence activities, including analysis, to 
     protect against international terrorism; and
       ``(vii) support government initiatives against money 
     laundering.
       ``(D) Establish and maintain a financial crimes 
     communications center to furnish law enforcement authorities 
     with intelligence information related to emerging or ongoing 
     investigations and undercover operations.
       ``(E) Furnish research, analytical, and informational 
     services to financial institutions, appropriate Federal 
     regulatory agencies with regard to financial institutions, 
     and appropriate Federal, State, local, and foreign law 
     enforcement authorities, in accordance with policies and 
     guidelines established by the Secretary of the Treasury or 
     the Under Secretary of the Treasury for Enforcement, in the 
     interest of detection, prevention, and prosecution of 
     terrorism, organized crime, money laundering, and other 
     financial crimes.
       ``(F) Establish and maintain a special unit dedicated to 
     assisting Federal, State, local, and foreign law enforcement 
     and regulatory authorities in combatting the use of informal, 
     nonbank networks and payment and barter system mechanisms 
     that permit the transfer of funds or the equivalent of funds 
     without records and without compliance with criminal and tax 
     laws.
       ``(G) Provide computer and data support and data analysis 
     to the Secretary of the Treasury for tracking and controlling 
     foreign assets.
       ``(H) Coordinate with financial intelligence units in other 
     countries on anti-terrorism and anti-money laundering 
     initiatives, and similar efforts.
       ``(I) Administer the requirements of subchapters II and III 
     of chapter 53 of this title, chapter 2 of title I of Public 
     Law 91-508, and section 21 of the Federal Deposit Insurance 
     Act, to the extent delegated such authority by the Secretary 
     of the Treasury.
       ``(J) Such other duties and powers as the Secretary of the 
     Treasury may delegate or prescribe.
       ``(c) Requirements Relating to Maintenance and Use of Data 
     Banks.--The Secretary of the Treasury shall establish and 
     maintain operating procedures with respect to the government-
     wide data access service and the financial crimes 
     communications center maintained by the Financial Crimes 
     Enforcement Network which provide--
       ``(1) for the coordinated and efficient transmittal of 
     information to, entry of information into, and withdrawal of 
     information from, the data maintenance system maintained by 
     the Network, including--
       ``(A) the submission of reports through the Internet or 
     other secure network, whenever possible;
       ``(B) the cataloguing of information in a manner that 
     facilitates rapid retrieval by law enforcement personnel of 
     meaningful data; and
       ``(C) a procedure that provides for a prompt initial review 
     of suspicious activity reports and other reports, or such 
     other means as the Secretary may provide, to identify 
     information that warrants immediate action; and
       ``(2) in accordance with section 552a of title 5 and the 
     Right to Financial Privacy Act of 1978, appropriate standards 
     and guidelines for determining--
       ``(A) who is to be given access to the information 
     maintained by the Network;
       ``(B) what limits are to be imposed on the use of such 
     information; and
       ``(C) how information about activities or relationships 
     which involve or are closely associated with the exercise of 
     constitutional rights is to be screened out of the data 
     maintenance system.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated for the Financial Crimes 
     Enforcement Network such sums as may be necessary for fiscal 
     years 2002, 2003, 2004, and 2005.''.
       (b) Compliance With Existing Reports Compliance.--The 
     Secretary of the Treasury shall study methods for improving 
     compliance with the reporting requirements established in 
     section 5314 of title 31, United States Code, and shall 
     submit a report on such study to the Congress by the end of 
     the 6-month period beginning on the date of the enactment of 
     this Act and each 1-year period thereafter. The initial 
     report shall include historical data on compliance with such 
     reporting requirements.

[[Page 19984]]

       (c) Clerical Amendment.--The table of sections for 
     subchapter I of chapter 3 of title 31, United States Code, is 
     amended--
       (1) by redesignating the item relating to section 310 as 
     section 311; and
       (2) by inserting after the item relating to section 309 the 
     following new item:

``310. Financial Crimes Enforcement Network''.

     SEC. 118. PROHIBITION ON FALSE STATEMENTS TO FINANCIAL 
                   INSTITUTIONS CONCERNING THE IDENTITY OF A 
                   CUSTOMER.

       (a) In General.--Chapter 47 of title 18, United States 
     Code, is amended by inserting after section 1007 the 
     following:

     ``Sec. 1008. False statements concerning the identity of 
       customers of financial institutions

       ``(a) In General.--Whoever, in connection with information 
     submitted to or requested by a financial institution, 
     knowingly in any manner--
       ``(1) falsifies, conceals, or covers up, or attempts to 
     falsify, conceal, or cover up, the identity of any person in 
     connection with any transaction with a financial institution;
       ``(2) makes, or attempts to make, any materially false, 
     fraudulent, or fictitious statement or representation of the 
     identity of any person in connection with a transaction with 
     a financial institution;
       ``(3) makes or uses, or attempts to make or use, any false 
     writing or document knowing the same to contain any 
     materially false, fictitious, or fraudulent statement or 
     entry concerning the identity of any person in connection 
     with a transaction with a financial institution; or
       ``(4) uses or presents, or attempts to use or present, in 
     connection with a transaction with a financial institution, 
     an identification document or means of identification the 
     possession of which is a violation of section 1028;

     shall be fined under this title, imprisoned not more than 5 
     years, or both.
       ``(b) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Financial institution.--The term `financial 
     institution'--
       ``(A) has the same meaning as in section 20; and
       ``(B) in addition, has the same meaning as in section 
     5312(a)(2) of title 31, United States Code.
       ``(2) Identification document.--The term `identification 
     document' has the same meaning as in section 1028(d).
       ``(3) Means of identification.--The term `means of 
     identification' has the same meaning as in section 
     1028(d).''.
       (b) Technical and Conforming Amendments.--
       (1) Title 18, united states code.--Section 1956(c)(7)(D) of 
     title 18, United States Code, is amended by striking ``1014 
     (relating to fraudulent loan'' and inserting ``section 1008 
     (relating to false statements concerning the identity of 
     customers of financial institutions), section 1014 (relating 
     to fraudulent loan''.
       (2) Table of sections.--The table of sections for chapter 
     47 of title 18, United States Code, is amended by inserting 
     after the item relating to section 1007 the following:

``1008. False statements concerning the identity of customers of 
              financial institutions.''.

     SEC. 119. VERIFICATION OF IDENTIFICATION.

       (a) In General.--Section 5318 of title 31, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(i) Identification and Verification of Accountholders.--
       ``(1) In general.--Subject to the requirements of this 
     subsection, the Secretary of the Treasury shall prescribe 
     regulations setting forth the minimum standards regarding 
     customer identification that shall apply in connection with 
     the opening of an account at a financial institution.
       ``(2) Minimum requirements.--The regulations shall, at a 
     minimum, require financial institutions to implement 
     procedures for--
       ``(A) verifying the identity of any person seeking to open 
     an account to the extent reasonable and practicable;
       ``(B) maintaining records of the information used to verify 
     a person's identity, including name, address, and other 
     identifying information;
       ``(C) consulting lists of known or suspected terrorists or 
     terrorist organizations provided to the financial institution 
     by any government agency to determine whether a person 
     seeking to open an account appears on any such list.
       ``(3) Factors to be considered.--In prescribing regulations 
     under this subsection, the Secretary shall take into 
     consideration the various types of accounts maintained by 
     various types of financial institutions, the various methods 
     of opening accounts, and the various types of identifying 
     information available.
       ``(4) Certain financial institutions.--In the case of any 
     financial institution the business of which is engaging in 
     financial activities described in section 4(k) of the Bank 
     Holding Company Act of 1956 (including financial activities 
     subject to the jurisdiction of the Commodity Futures Trading 
     Commission), the regulations prescribed by the Secretary 
     under paragraph (1) shall be prescribed jointly with each 
     Federal functional regulator (as defined in section 509 of 
     the Gramm-Leach-Bliley Act, including the Commodity Futures 
     Trading Commission) appropriate for such financial 
     institution.
       ``(5) Exemptions.--The Secretary of the Treasury (and, in 
     the case of any financial institution described in paragraph 
     (4), any Federal agency described in such paragraph) may, by 
     regulation or order, exempt any financial institution or type 
     of account from the requirements of any regulation prescribed 
     under this subsection in accordance with such standards and 
     procedures as the Secretary may prescribe.
       ``(6) Effective date.--Final regulations prescribed under 
     this subsection shall take effect before the end of the 1-
     year period beginning on the date of the enactment of the 
     Financial Anti-Terrorism Act of 2001.''.
       (b) Study and Report Required.--Within 6 months after the 
     date of the enactment of this Act, the Secretary of the 
     Treasury, in consultation with the Federal functional 
     regulators (as defined in section 509 of the Gramm-Leach-
     Bliley Act) and other appropriate Government agencies, shall 
     submit a report to the Congress containing recommendations 
     for--
       (1) determining the most timely and effective way to 
     require foreign nationals to provide domestic financial 
     institutions and agencies with appropriate and accurate 
     information, comparable to that which is required of United 
     States nationals, concerning their identity, address, and 
     other related information necessary to enable such 
     institutions and agencies to comply with the requirements of 
     this section;
       (2) requiring foreign nationals to apply for and obtain, 
     before opening an account with a domestic financial 
     institution, an identification number which would function 
     similarly to a Social Security number or tax identification 
     number; and
       (3) establishing a system for domestic financial 
     institutions and agencies to review information maintained by 
     relevant Government agencies for purposes of verifying the 
     identities of foreign nationals seeking to open accounts at 
     those institutions and agencies.

     SEC. 120. CONSIDERATION OF ANTI-MONEY LAUNDERING RECORD.

       (a) Bank Holding Company Act of 1956.--
       (1) In general.--Section 3(c) of the Bank Holding Company 
     Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the 
     end the following new paragraph:
       ``(6) Money laundering.--In every case the Board shall take 
     into consideration the effectiveness of the company or 
     companies in combatting and preventing money laundering 
     activities, including in overseas branches.''.
       (2) Scope of application.--The amendment made by paragraph 
     (1) shall apply with respect to any application submitted to 
     the Board of Governors of the Federal Reserve System under 
     section 3 of the Bank Holding Company Act of 1956 after 
     December 31, 2000, which has not been approved by the Board 
     before the date of the enactment of this Act.
       (b) Mergers Subject to Review Under Federal Deposit 
     Insurance Act.--
       (1) In general.--Section 18(c) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(c)) is amended--
       (A) by redesignating paragraph (11) as paragraph (12); and
       (B) by inserting after paragraph (10), the following new 
     paragraph:
       ``(11) Money laundering.--In every case, the responsible 
     agency shall take into consideration the effectiveness of any 
     insured depository institution involved in the proposed 
     merger transaction in combatting and preventing money 
     laundering activities, including in overseas branches.''.
       (2) Scope of application.--The amendment made by paragraph 
     (1) shall apply with respect to any application submitted to 
     the responsible agency under section 18(c) of the Federal 
     Deposit Insurance Act after December 31, 2000, which has not 
     been approved by all appropriate responsible agencies before 
     the date of the enactment of this Act.

     SEC. 121. REPORTING OF SUSPICIOUS ACTIVITIES BY INFORMAL 
                   UNDERGROUND BANKING SYSTEMS, SUCH AS HAWALAS.

       (a) Definition for Subchapter.--Subparagraph (R) of section 
     5312(a)(2) of title 31, United States Code, is amended to 
     read as follows:
       ``(R) a licensed sender of money or any other person who 
     engages as a business in the transmission of funds, including 
     through an informal value transfer banking system or network 
     of people facilitating the transfer of value domestically or 
     internationally outside of the conventional financial 
     institutions system;''.
       (b) Money Transmitting Business.--Section 5330(d)(1)(A) of 
     title 31, United States Code, is amended by inserting before 
     the semicolon the following: ``or any other person who 
     engages as a business in the transmission of funds, including 
     through an informal value transfer banking system or network 
     of people facilitating the transfer of value domestically or 
     internationally outside of the conventional financial 
     institutions system''.
       (c) Applicability of Rules.--Section 5318 of title 31, 
     United States Code, as amended by this Act, is amended by 
     adding at the end the following:
       ``(l) Applicability of Rules.--Any rules prescribed 
     pursuant to the authority contained in section 21 of the 
     Federal Deposit

[[Page 19985]]

     Insurance Act shall apply, in addition to any other financial 
     institution to which such rules apply, to any person that 
     engages as a business in the transmission of funds, including 
     through an informal value transfer banking system or network 
     of people facilitating the transfer of value domestically or 
     internationally outside of the conventional financial 
     institutions system.''.
       (d) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of the Treasury shall 
     report to Congress on the need for any additional legislation 
     relating to--
       (1) informal value transfer banking systems or networks of 
     people facilitating the transfer of value domestically or 
     internationally outside of the conventional financial 
     institutions system;
       (2) anti-money laundering controls; and
       (3) regulatory controls relating to underground money 
     movement and banking systems, such as the system referred to 
     as ``hawala'', including whether the threshold for the filing 
     of suspicious activity reports under section 5318(g) of title 
     31, United States Code should be lowered in the case of such 
     systems.

     SEC. 122. UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE 
                   FACILITIES.

       Section 11 of the Federal Reserve Act (12 U.S.C. 248) is 
     amended by adding at the end the following:
       ``(q) Uniform Protection Authority for Federal Reserve 
     Facilities.--
       ``(1) Notwithstanding any other provision of law, to 
     authorize personnel to act as law enforcement officers to 
     protect and safeguard the premises, grounds, property, 
     personnel, including members of the Board, of the Board, or 
     any Federal reserve bank, and operations conducted by or on 
     behalf of the Board or a reserve bank.
       ``(2) The Board may, subject to the regulations prescribed 
     under paragraph (5), delegate authority to a Federal reserve 
     bank to authorize personnel to act as law enforcement 
     officers to protect and safeguard the bank's premises, 
     grounds, property, personnel, and operations conducted by or 
     on behalf of the bank.
       ``(3) Law enforcement officers designated or authorized by 
     the Board or a reserve bank under paragraph (1) or (2) are 
     authorized while on duty to carry firearms and make arrests 
     without warrants for any offense against the United States 
     committed in their presence, or for any felony cognizable 
     under the laws of the United States committed or being 
     committed within the buildings and grounds of the Board or a 
     reserve bank if they have reasonable grounds to believe that 
     the person to be arrested has committed or is committing such 
     a felony. Such officers shall have access to law enforcement 
     information that may be necessary for the protection of the 
     property or personnel of the Board or a reserve bank.
       ``(4) For purposes of this subsection, the term `law 
     enforcement officers' means personnel who have successfully 
     completed law enforcement training and are authorized to 
     carry firearms and make arrests pursuant to this subsection.
       ``(5) The law enforcement authorities provided for in this 
     subsection may be exercised only pursuant to regulations 
     prescribed by the Board and approved by the Attorney 
     General.''.

     SEC. 123. REPORTS RELATING TO COINS AND CURRENCY RECEIVED IN 
                   NONFINANCIAL TRADE OR BUSINESS.

       (a) Reports Required.--Subchapter II of chapter 53 of title 
     31, United States Code, is amended by inserting after section 
     5332 (as added by section 112 of this title) the following 
     new section:

     ``SEC. 5333. REPORTS RELATING TO COINS AND CURRENCY RECEIVED 
                   IN NONFINANCIAL TRADE OR BUSINESS.

       ``(a) Coin and Currency Receipts of More Than $10,000.--Any 
     person--
       ``(1) who is engaged in a trade or business; and
       ``(2) who, in the course of such trade or business, 
     receives more than $10,000 in coins or currency in 1 
     transaction (or 2 or more related transactions),

     shall file a report described in subsection (b) with respect 
     to such transaction (or related transactions) with the 
     Financial Crimes Enforcement Network at such time and in such 
     manner as the Secretary may, by regulation, prescribe.
       ``(b) Form and Manner of Reports.--A report is described in 
     this subsection if such report--
       ``(1) is in such form as the Secretary may prescribe;
       ``(2) contains--
       ``(A) the name and address, and such other identification 
     information as the Secretary may require, of the person from 
     whom the coins or currency was received;
       ``(B) the amount of coins or currency received;
       ``(C) the date and nature of the transaction; and
       ``(D) such other information, including the identification 
     of the person filing the report, as the Secretary may 
     prescribe.
       ``(c) Exceptions.--
       ``(1) Amounts received by financial institutions.--
     Subsection (a) shall not apply to amounts received in a 
     transaction reported under section 5313 and regulations 
     prescribed under such section.
       ``(2) Transactions occurring outside the united states.--
     Except to the extent provided in regulations prescribed by 
     the Secretary, subsection (a) shall not apply to any 
     transaction if the entire transaction occurs outside the 
     United States.
       ``(d) Currency Includes Foreign Currency and Certain 
     Monetary Instruments.--
       ``(1) In general.--For purposes of this section, the term 
     `currency' includes--
       ``(A) foreign currency; and
       ``(B) to the extent provided in regulations prescribed by 
     the Secretary, any monetary instrument (whether or not in 
     bearer form) with a face amount of not more than $10,000.
       ``(2) Scope of application.--Paragraph (1)(B) shall not 
     apply to any check drawn on the account of the writer in a 
     financial institution referred to in subparagraph (A), (B), 
     (C), (D), (E), (F), (G), (J), (K), (R), or (S) of section 
     5312(a)(2).''.
       (b) Prohibition on Structuring Transactions.--
       (1) In general.--Section 5324 of title 31, United States 
     Code, is amended--
       (A) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (B) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Domestic Coin and Currency Transactions Involving 
     Nonfinancial Trades or Businesses.--No person shall for the 
     purpose of evading the report requirements of section 5333 or 
     any regulation prescribed under such section--
       ``(1) cause or attempt to cause a nonfinancial trade or 
     business to fail to file a report required under section 5333 
     or any regulation prescribed under such section;
       ``(2) cause or attempt to cause a nonfinancial trade or 
     business to file a report required under section 5333 or any 
     regulation prescribed under such section that contains a 
     material omission or misstatement of fact; or
       ``(3) structure or assist in structuring, or attempt to 
     structure or assist in structuring, any transaction with 1 or 
     more nonfinancial trades or businesses.'.
       (2) Technical and conforming amendments.--
       (A) The heading for subsection (a) of section 5324 of title 
     31, United States Code, is amended by inserting ``Involving 
     Financial Institutions'' after ``Transactions'.
       (B) Section 5317(c) of title 31, United States Code, is 
     amended by striking ``5324(b)'' and inserting ``5324(c)''.
       (c) Definition of Nonfinancial Trade or Business.--
       (1) In general.--Section 5312(a) of title 31, United States 
     Code, is amended--
       (A) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (B) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Nonfinancial trade or business.--The term 
     `nonfinancial trade or business' means any trade or business 
     other than a financial institution that is subject to the 
     reporting requirements of section 5313 and regulations 
     prescribed under such section.''.
       (2) Technical and conforming amendments.--
       (A) Section 5312(a)(3)(C) of title 31, United States Code, 
     is amended by striking ``section 5316,'' and inserting 
     ``sections 5333 and 5316,''.
       (B) Subsections (a) through (f) of section 5318 of title 
     31, United States Code, and sections 5321, 5326, and 5328 of 
     such title are each amended--
       (i) by inserting ``or nonfinancial trade or business'' 
     after ``financial institution'' each place such term appears; 
     and
       (ii) by inserting ``or nonfinancial trades or businesses'' 
     after ``financial institutions'' each place such term 
     appears.
       (C) Section 981(a)(1)(A) of title 18, United States Code, 
     is amended by striking ``5313(a) or 5324(a) of title 31,'' 
     and inserting ``5313(a) or 5333 of title 31, or subsection 
     (a) or (b) of section 5324 of such title,''.
       (D) Section 982(a)(1) of title 18, United States Code, is 
     amended by inserting ``5333,'' after ``5313(a),''.
       (c) Clerical Amendment.--The tables of sections for chapter 
     53 of title 31, United States Code, is amended by inserting 
     after the item relating to section 5332 (as added by section 
     112 of this title) the following new item:

``5333. Reports relating to coins and currency received in nonfinancial 
              trade or business.''.

       (f) Regulations.--Regulations which the Secretary of the 
     Treasury determines are necessary to implement this section 
     shall be published in final form before the end of the 6-
     month period beginning on the date of the enactment of this 
     Act.

                  TITLE II--PUBLIC-PRIVATE COOPERATION

     SEC. 201. ESTABLISHMENT OF HIGHLY SECURE NETWORK.

       (a) In General.--The Secretary of the Treasury shall 
     establish a highly secure network in the Financial Crimes 
     Enforcement Network that--
       (1) allows financial institutions to file reports required 
     under subchapter II or III of chapter 53 of title 31, United 
     States Code, chapter 2 of title I of Public Law 91-508, or 
     section 21 of the Federal Deposit Insurance Act through the 
     network; and

[[Page 19986]]

       (2) provides financial institutions with alerts and other 
     information regarding suspicious activities that warrant 
     immediate and enhanced scrutiny.
       (b) Expedited Development.--The Secretary of the Treasury 
     shall take such action as may be necessary to ensure that the 
     website required under subsection (a) is fully operational 
     before the end of the 9-month period beginning on the date of 
     the enactment of this Act.

     SEC. 202. REPORT ON IMPROVEMENTS IN DATA ACCESS AND OTHER 
                   ISSUES.

       Before the end of the 6-month period beginning on the date 
     of the enactment of this Act, the Secretary of the Treasury, 
     after consulting with appropriate Federal functional 
     regulators (as defined in section 509 of the Gramm-Leach-
     Bliley Act), shall report to the Congress on the following 
     issues:
       (1) Data collection and analysis.--Progress made since such 
     date of enactment in meeting the requirements of section 
     310(c) of title 31, United States Code (as added by this 
     Act).
       (2) Barriers to exchange of financial crime information.--
     Technical, legal, and other barriers to the exchange of 
     financial crime prevention and detection information among 
     and between Federal law enforcement agencies, including an 
     identification of all Federal law enforcement data systems 
     between which or among which data cannot be shared for 
     whatever reason.
       (3) Private banking.--Private banking activities in the 
     United States, including information on the following:
       (A) The nature and extent of private banking activities in 
     the United States.
       (B) Regulatory efforts to monitor private banking 
     activities and ensure that such activities are conducted in 
     compliance with subchapter II of chapter 53 of title 31, 
     United States Code, and section 21 of the Federal Deposit 
     Insurance Act.
       (C) With regard to financial institutions that offer 
     private banking services, the policies and procedures of such 
     institutions that are designed to ensure compliance with the 
     requirements of subchapter II of chapter 53 of title 31, 
     United States Code, and section 21 of the Federal Deposit 
     Insurance Act with respect to private banking activity.

     SEC. 203. REPORTS TO THE FINANCIAL SERVICES INDUSTRY ON 
                   SUSPICIOUS FINANCIAL ACTIVITIES.

       At least once each calendar quarter, the Secretary of the 
     Treasury shall--
       (1) publish a report containing a detailed analysis 
     identifying patterns of suspicious activity and other 
     investigative insights derived from suspicious activity 
     reports and investigations conducted by Federal, State, and 
     local law enforcement agencies to the extent appropriate; and
       (2) distribute such report to financial institutions (as 
     defined in section 5312 of title 31, United States Code).

     SEC. 204. EFFICIENT USE OF CURRENCY TRANSACTION REPORT 
                   SYSTEM.

       (a) Findings.--The Congress finds the following:
       (1) The Congress established the currency transaction 
     reporting requirements in 1970 because the Congress found 
     then that such reports have a high degree of usefulness in 
     criminal, tax, and regulatory investigations and proceedings 
     and the usefulness of such reports has only increased in the 
     years since the requirements were established.
       (2) In 1994, in response to reports and testimony that 
     excess amounts of currency transaction reports were 
     interfering with effective law enforcement, the Congress 
     reformed the currency transaction report exemption 
     requirements to provide--
       (A) mandatory exemptions for certain reports that had 
     little usefulness for law enforcement, such as cash transfers 
     between depository institutions and cash deposits from 
     government agencies; and
       (B) discretionary authority for the Secretary of the 
     Treasury to provide exemptions, subject to criteria and 
     guidelines established by the Secretary, for financial 
     institutions with regard to regular business customers that 
     maintain accounts at an institution into which frequent cash 
     deposits are made.
       (3) Today there is evidence that some financial 
     institutions are not utilizing the exemption system, or are 
     filing reports even if there is an exemption in effect, with 
     the result that the volume of currency transaction reports is 
     once again interfering with effective law enforcement.
       (b) Study and Report.--
       (1) Study required.--The Secretary of the Treasury shall 
     conduct a study of--
       (A) the possible expansion of the statutory exemption 
     system in effect under 5313 of title 31, United States Code; 
     and
       (B) methods for improving financial institution utilization 
     of the statutory exemption provisions as a way of reducing 
     the submission of currency transaction reports that have 
     little or no value for law enforcement purposes, including 
     improvements in the systems in effect at financial 
     institutions for regular review of the exemption procedures 
     used at the institution and the training of personnel in its 
     effective use.
       (2) Report required.--The Secretary of the Treasury shall 
     submit a report to the Congress before the end of the 90-day 
     period beginning on the date of the enactment of this Act 
     containing the findings and conclusions of the Secretary with 
     regard to the study required under subsection (a) and such 
     recommendations for legislative or administrative action as 
     the Secretary determines to be appropriate.

     SEC. 205. PUBLIC-PRIVATE TASK FORCE ON TERRORIST FINANCING 
                   ISSUES.

       Section 1564 of the Annunzio--Wylie Anti-Money Laundering 
     Act (31 U.S.C. 5311 note) is amended by adding at the end the 
     following new subsection:
       ``(d) Terrorist Financing Issues.--
       ``(1) In general.--The Secretary of the Treasury shall 
     provide, either within the Bank Secrecy Act Advisory Group, 
     or as a subcommittee or other adjunct of the Advisory Group, 
     for a task force of representatives from agencies and 
     officers represented on the Advisory Group, a representative 
     of the Director of the Office of Homeland Security, and 
     representatives of financial institutions, private 
     organizations that represent the financial services industry, 
     and other interested parties to focus on--
       ``(A) issues specifically related to the finances of 
     terrorist groups, the means terrorist groups use to transfer 
     funds around the world and within the United States, 
     including through the use of charitable organizations, 
     nonprofit organizations, and nongovernmental organizations, 
     and the extent to which financial institutions in the United 
     States are unwittingly involved in such finances and the 
     extent to which such institutions are at risk as a result;
       ``(B) the relationship, particularly the financial 
     relationship, between international narcotics traffickers and 
     foreign terrorist organizations, the extent to which their 
     memberships overlap and engage in joint activities, and the 
     extent to which they cooperate with each other in raising and 
     transferring funds for their respective purposes; and
       ``(C) means of facilitating the identification of accounts 
     and transactions involving terrorist groups and facilitating 
     the exchange of information concerning such accounts and 
     transactions between financial institutions and law 
     enforcement organizations.
       ``(2) Applicability of other provisions.--Sections 552, 
     552a, and 552b of title 5, United States Code, and the 
     Federal Advisory Committee Act shall not apply to the task 
     force established pursuant to paragraph (1).''.

     SEC. 206. SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS.

       (a) Deadline for Suspicious Activity Reporting Requirements 
     for Registered Brokers and Dealers.--The Secretary of the 
     Treasury, in consultation with the Securities and Exchange 
     Commission, shall publish proposed regulations in the Federal 
     Register before January 1, 2002, requiring brokers and 
     dealers registered with the Securities and Exchange 
     Commission under the Securities Exchange Act of 1934 to 
     submit suspicious activity reports under section 5318(g) of 
     title 31, United States Code. Such regulations shall be 
     published in final form no later than June 1, 2002.
       (b) Suspicious Activity Reporting Requirements for Futures 
     Commission Merchants, Commodity Trading Advisors, and 
     Commodity Pool Operators.--The Secretary of the Treasury, in 
     consultation with the Commodity Futures Trading Commission, 
     may prescribe regulations requiring futures commission 
     merchants, commodity trading advisors, and commodity pool 
     operators registered under the Commodity Exchange Act to 
     submit suspicious activity reports under section 5318(g) of 
     title 31, United States Code.

     SEC. 207. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS 
                   ACTIVITIES.

       (a) Amendment Relating to Civil Liability Immunity for 
     Disclosures.--Section 5318(g)(3) of title 31, United States 
     Code, is amended to read as follows:
       ``(3) Liability for disclosures.--
       ``(A) In general.--Any financial institution that makes a 
     voluntary disclosure of any possible violation of law or 
     regulation to a government agency or makes a disclosure 
     pursuant to this subsection or any other authority, and any 
     director, officer, employee, or agent of such institution who 
     makes, or requires another to make any such disclosure, shall 
     not be liable to any person under any law or regulation of 
     the United States, any constitution, law, or regulation of 
     any State or political subdivision of any State, or under any 
     contract or other legally enforceable agreement (including 
     any arbitration agreement), for such disclosure or for any 
     failure to provide notice of such disclosure to any person.
       ``(B) Rule of construction.--Subparagraph (A) shall not be 
     construed as creating--
       ``(i) any inference that the term `person', as used in such 
     subparagraph, may be construed more broadly than its ordinary 
     usage so to include any government or agency of government; 
     or
       ``(ii) any immunity against, or otherwise affecting, any 
     civil or criminal action brought by any government or agency 
     of government to enforce any constitution, law, or regulation 
     of such government or agency.''.
       (b) Prohibition on Notification of Disclosures.--Section 
     5318(g)(2) of title 31, United States Code, is amended to 
     read as follows:

[[Page 19987]]

       ``(2) Notification prohibited.--
       ``(A) In general.--If a financial institution or any 
     director, officer, employee, or agent of any financial 
     institution, voluntarily or pursuant to this section or any 
     other authority, reports a suspicious transaction to a 
     government agency--
       ``(i) the financial institution, director, officer, 
     employee, or agent may not notify any person involved in the 
     transaction that the transaction has been reported; and
       ``(ii) no officer or employee of the Federal Government or 
     of any State, local, tribal, or territorial government within 
     the United States, who has any knowledge that such report was 
     made may disclose to any person involved in the transaction 
     that the transaction has been reported other than as 
     necessary to fulfill the official duties of such officer or 
     employee.
       ``(B) Disclosures in certain employment references.--
     Notwithstanding the application of subparagraph (A) in any 
     other context, subparagraph (A) shall not be construed as 
     prohibiting any financial institution, or any director, 
     officer, employee, or agent of such institution, from 
     including, in a written employment reference that is provided 
     in accordance with section 18(v) of the Federal Deposit 
     Insurance Act in response to a request from another financial 
     institution or a written termination notice or employment 
     reference that is provided in accordance with the rules of 
     the self-regulatory organizations registered with the 
     Securities and Exchange Commission or the Commodity Futures 
     Trading Commission, information that was included in a report 
     to which subparagraph (A) applies, but such written 
     employment reference may not disclose that such information 
     was also included in any such report or that such report was 
     made.''.

     SEC. 208. AUTHORIZATION TO INCLUDE SUSPICIONS OF ILLEGAL 
                   ACTIVITY IN WRITTEN EMPLOYMENT REFERENCES.

       Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 
     1828) is amended by adding at the end the following new 
     subsection:
       ``(w) Written Employment References May Contain Suspicions 
     of Involvement in Illegal Activity.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, any insured depository institution, and any director, 
     officer, employee, or agent of such institution, may disclose 
     in any written employment reference relating to a current or 
     former institution-affiliated party of such institution which 
     is provided to another insured depository institution in 
     response to a request from such other institution, 
     information concerning the possible involvement of such 
     institution-affiliated party in potentially unlawful 
     activity, to the extent--
       ``(A) the disclosure does not contain information which the 
     institution, director, officer, employee, or agent knows to 
     be false; and
       ``(B) the institution, director, officer, employee, or 
     agent has not acted with malice or with reckless disregard 
     for the truth in making the disclosure.
       ``(2) Definition.--For purposes of this subsection, the 
     term `insured depository institution' includes any uninsured 
     branch or agency of a foreign bank.''.

     SEC. 209. INTERNATIONAL COOPERATION ON IDENTIFICATION OF 
                   ORIGINATORS OF WIRE TRANSFERS.

       The Secretary of the Treasury shall--
       (1) in consultation with the Attorney General and the 
     Secretary of State, take all reasonable steps to encourage 
     foreign governments to require the inclusion of the name of 
     the originator in wire transfer instructions sent to the 
     United States and other countries, with the information to 
     remain with the transfer from its origination until the point 
     of disbursement; and
       (2) report annually to the Committee on Financial Services 
     of the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate on--
       (A) progress toward the goal enumerated in paragraph (1), 
     as well as impediments to implementation and an estimated 
     compliance rate; and
       (B) impediments to instituting a regime in which all 
     appropriate identification, as defined by the Secretary, 
     about wire transfer recipients shall be included with wire 
     transfers from their point of origination until disbursement.

     SEC. 210. CHECK TRUNCATION STUDY.

       Before the end of the 180-day period beginning on the date 
     of the enactment of this Act, the Secretary of the Treasury, 
     in consultation with the Attorney General and the Board of 
     Governors of the Federal Reserve System, shall conduct a 
     study of the impact on--
       (1) crime prevention (including money laundering and 
     terrorism);
       (2) law enforcement;
       (3) the financial services industry (including the 
     technical, operational, and economic impact on the industry) 
     and customers of such industry;
       (4) the payment system (including the liquidity, stability, 
     and efficiency of the payment system and the ability to 
     monitor and access the flow of funds); and
       (5) the consumer protection laws,

     of any policy of the Board of Governors of the Federal 
     Reserve System relating to the promotion of check 
     electronification, through truncation or other means, or 
     migration away from paper checks. The study shall also 
     include an analysis of the benefits and burdens of promoting 
     check electronification on the foregoing entities.

          TITLE III--COMBATTING INTERNATIONAL MONEY LAUNDERING

     SEC. 301. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL 
                   INSTITUTIONS, OR INTERNATIONAL TRANSACTIONS OF 
                   PRIMARY MONEY LAUNDERING CONCERN.

       (a) In General.--Subchapter II of chapter 53 of title 31, 
     United States Code, is amended by inserting after section 
     5318 the following new section:

     ``Sec. 5318A. Special measures for jurisdictions, financial 
       institutions, or international transactions of primary 
       money laundering concern

       ``(a) International Counter-Money Laundering 
     Requirements.--
       ``(1) In general.--The Secretary may require domestic 
     financial institutions and domestic financial agencies to 
     take 1 or more of the special measures described in 
     subsection (b) if the Secretary finds that reasonable grounds 
     exist for concluding that a jurisdiction outside of the 
     United States, 1 or more financial institutions operating 
     outside of the United States, 1 or more classes of 
     transactions within, or involving, a jurisdiction outside of 
     the United States, or 1 or more types of accounts is of 
     primary money laundering concern, in accordance with 
     subsection (c).
       ``(2) Form of requirement.--The special measures described 
     in--
       ``(A) subsection (b) may be imposed in such sequence or 
     combination as the Secretary shall determine;
       ``(B) paragraphs (1) through (4) of subsection (b) may be 
     imposed by regulation, order, or otherwise as permitted by 
     law; and
       ``(C) subsection (b)(5) may be imposed only by regulation.
       ``(3) Duration of orders; rulemaking.--Any order by which a 
     special measure described in paragraphs (1) through (4) of 
     subsection (b) is imposed (other than an order described in 
     section 5326)--
       ``(A) shall be issued together with a notice of proposed 
     rulemaking relating to the imposition of such special 
     measure; and
       ``(B) may not remain in effect for more than 120 days, 
     except pursuant to a regulation prescribed on or before the 
     end of the 120-day period beginning on the date of issuance 
     of such order.
       ``(4) Process for selecting special measures.--In selecting 
     which special measure or measures to take under this 
     subsection, the Secretary--
       ``(A) shall consult with the Chairman of the Board of 
     Governors of the Federal Reserve System, any other 
     appropriate Federal banking agency (as defined in section 3 
     of the Federal Deposit Insurance Act), the Secretary of 
     State, the Securities and Exchange Commission, the Commodity 
     Futures Trading Commission, the National Credit Union 
     Administration Board, and in the sole discretion of the 
     Secretary such other agencies and interested parties as the 
     Secretary may find to be appropriate; and
       ``(B) shall consider--
       ``(i) whether similar action has been or is being taken by 
     other nations or multilateral groups;
       ``(ii) whether the imposition of any particular special 
     measure would create a significant competitive disadvantage, 
     including any undue cost or burden associated with 
     compliance, for financial institutions organized or licensed 
     in the United States;
       ``(iii) the extent to which the action or the timing of the 
     action would have a significant adverse systemic impact on 
     the international payment, clearance, and settlement system, 
     or on legitimate business activities involving the particular 
     jurisdiction, institution, or class of transactions; and
       ``(iv) the effect on national security and foreign policy.
       ``(5) No limitation on other authority.--This section shall 
     not be construed as superseding or otherwise restricting any 
     other authority granted to the Secretary, or to any other 
     agency, by this subchapter or otherwise.
       ``(b) Special Measures.--The special measures referred to 
     in subsection (a), with respect to a jurisdiction outside of 
     the United States, financial institution operating outside of 
     the United States, class of transaction within, or involving, 
     a jurisdiction outside of the United States, or 1 or more 
     types of accounts are as follows:
       ``(1) Recordkeeping and reporting of certain financial 
     transactions.--
       ``(A) In general.--The Secretary may require any domestic 
     financial institution or domestic financial agency to 
     maintain records, file reports, or both, concerning the 
     aggregate amount of transactions, or concerning each 
     transaction, with respect to a jurisdiction outside of the 
     United States, 1 or more financial institutions operating 
     outside of the United States, 1 or more classes of 
     transactions within, or involving, a jurisdiction outside of 
     the United States, or 1 or more types of accounts if the 
     Secretary finds any such jurisdiction, institution, or class 
     of transactions to be of primary money laundering concern.

[[Page 19988]]

       ``(B) Form of records and reports.--Such records and 
     reports shall be made and retained at such time, in such 
     manner, and for such period of time, as the Secretary shall 
     determine, and shall include such information as the 
     Secretary may determine, including--
       ``(i) the identity and address of the participants in a 
     transaction or relationship, including the identity of the 
     originator of any funds transfer;
       ``(ii) the legal capacity in which a participant in any 
     transaction is acting;
       ``(iii) the identity of the beneficial owner of the funds 
     involved in any transaction, in accordance with such 
     procedures as the Secretary determines to be reasonable and 
     practicable to obtain and retain the information; and
       ``(iv) a description of any transaction.
       ``(2) Information relating to beneficial ownership.--In 
     addition to any other requirement under any other provision 
     of law, the Secretary may require any domestic financial 
     institution or domestic financial agency to take such steps 
     as the Secretary may determine to be reasonable and 
     practicable to obtain and retain information concerning the 
     beneficial ownership of any account opened or maintained in 
     the United States by a foreign person (other than a foreign 
     entity whose shares are subject to public reporting 
     requirements or are listed and traded on a regulated exchange 
     or trading market), or a representative of such a foreign 
     person, that involves a jurisdiction outside of the United 
     States, 1 or more financial institutions operating outside of 
     the United States, 1 or more classes of transactions within, 
     or involving, a jurisdiction outside of the United States, or 
     1 or more types of accounts if the Secretary finds any such 
     jurisdiction, institution, transaction, or account to be of 
     primary money laundering concern.
       ``(3) Information relating to certain payable-through 
     accounts.--If the Secretary finds a jurisdiction outside of 
     the United States, 1 or more financial institutions operating 
     outside of the United States, or 1 or more classes of 
     transactions within, or involving, a jurisdiction outside of 
     the United States to be of primary money laundering concern, 
     the Secretary may require any domestic financial institution 
     or domestic financial agency that opens or maintains a 
     payable-through account in the United States for a foreign 
     financial institution involving any such jurisdiction or any 
     such financial institution operating outside of the United 
     States, or a payable through account through which any such 
     transaction may be conducted, as a condition of opening or 
     maintaining such account--
       ``(A) to identify each customer (and representative of such 
     customer) of such financial institution who is permitted to 
     use, or whose transactions are routed through, such payable-
     through account; and
       ``(B) to obtain, with respect to each such customer (and 
     each such representative), information that is substantially 
     comparable to that which the depository institution obtains 
     in the ordinary course of business with respect to its 
     customers residing in the United States.
       ``(4) Information relating to certain correspondent 
     accounts.--If the Secretary finds a jurisdiction outside of 
     the United States, 1 or more financial institutions operating 
     outside of the United States, or 1 or more classes of 
     transactions within, or involving, a jurisdiction outside of 
     the United States to be of primary money laundering concern, 
     the Secretary may require any domestic financial institution 
     or domestic financial agency that opens or maintains a 
     correspondent account in the United States for a foreign 
     financial institution involving any such jurisdiction or any 
     such financial institution operating outside of the United 
     States, or a correspondent account through which any such 
     transaction may be conducted, as a condition of opening or 
     maintaining such account--
       ``(A) to identify each customer (and representative of such 
     customer) of any such financial institution who is permitted 
     to use, or whose transactions are routed through, such 
     correspondent account; and
       ``(B) to obtain, with respect to each such customer (and 
     each such representative), information that is substantially 
     comparable to that which the depository institution obtains 
     in the ordinary course of business with respect to its 
     customers residing in the United States.
       ``(5) Prohibitions or conditions on opening or maintaining 
     certain correspondent or payable-through accounts.--If the 
     Secretary finds a jurisdiction outside of the United States, 
     1 or more financial institutions operating outside of the 
     United States, or 1 or more classes of transactions within, 
     or involving, a jurisdiction outside of the United States to 
     be of primary money laundering concern, the Secretary, in 
     consultation with the Secretary of State, the Attorney 
     General, and the Chairman of the Board of Governors of the 
     Federal Reserve System, may prohibit, or impose conditions 
     upon, the opening or maintaining in the United States of a 
     correspondent account or payable- through account by any 
     domestic financial institution or domestic financial agency 
     for or on behalf of a foreign banking institution, if such 
     correspondent account or payable-through account involves any 
     such jurisdiction or institution, or if any such transaction 
     may be conducted through such correspondent account or 
     payable-through account.
       ``(c) Consultations and Information To Be Considered in 
     Finding Jurisdictions, Institutions, Types of Accounts, or 
     Transactions To Be of Primary Money Laundering Concern.--
       ``(1) In general.--In making a finding that reasonable 
     grounds exist for concluding that a jurisdiction outside of 
     the United States, 1 or more financial institutions operating 
     outside of the United States, 1 or more classes of 
     transactions within, or involving, a jurisdiction outside of 
     the United States, or 1 or more types of accounts is of 
     primary money laundering concern so as to authorize the 
     Secretary to take 1 or more of the special measures described 
     in subsection (b), the Secretary shall consult with the 
     Secretary of State, and the Attorney General.
       ``(2) Additional considerations.--In making a finding 
     described in paragraph (1), the Secretary shall consider in 
     addition such information as the Secretary determines to be 
     relevant, including the following potentially relevant 
     factors:
       ``(A) Jurisdictional factors.--In the case of a particular 
     jurisdiction--
       ``(i) evidence that organized criminal groups, 
     international terrorists, or both, have transacted business 
     in that jurisdiction;
       ``(ii) the extent to which that jurisdiction or financial 
     institutions operating in that jurisdiction offer bank 
     secrecy or special regulatory advantages to nonresidents or 
     nondomiciliaries of that jurisdiction;
       ``(iii) the substance and quality of administration of the 
     bank supervisory and counter-money laundering laws of that 
     jurisdiction;
       ``(iv) the relationship between the volume of financial 
     transactions occurring in that jurisdiction and the size of 
     the economy of the jurisdiction;
       ``(v) the extent to which that jurisdiction is 
     characterized as an offshore banking or secrecy haven by 
     credible international organizations or multilateral expert 
     groups;
       ``(vi) whether the United States has a mutual legal 
     assistance treaty with that jurisdiction, and the experience 
     of United States law enforcement officials, and regulatory 
     officials in obtaining information about transactions 
     originating in or routed through or to such jurisdiction; and
       ``(vii) the extent to which that jurisdiction is 
     characterized by high levels of official or institutional 
     corruption.
       ``(B) Institutional factors.--In the case of a decision to 
     apply 1 or more of the special measures described in 
     subsection (b) only to a financial institution or 
     institutions, or to a transaction or class of transactions, 
     or to a type of account, or to all 3, within or involving a 
     particular jurisdiction--
       ``(i) the extent to which such financial institutions, 
     transactions, or types of accounts are used to facilitate or 
     promote money laundering in or through the jurisdiction;
       ``(ii) the extent to which such institutions, transactions, 
     or types of accounts are used for legitimate business 
     purposes in the jurisdiction; and
       ``(iii) the extent to which such action is sufficient to 
     ensure, with respect to transactions involving the 
     jurisdiction and institutions operating in the jurisdiction, 
     that the purposes of this subchapter continue to be 
     fulfilled, and to guard against international money 
     laundering and other financial crimes.
       ``(d) Notification of Special Measures Invoked by the 
     Secretary.--Not later than 10 days after the date of any 
     action taken by the Secretary under subsection (a)(1), the 
     Secretary shall notify, in writing, the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate of any such action.
       ``(e) Definitions.--Notwithstanding any other provision of 
     this subchapter, for purposes of this section, the following 
     definitions shall apply:
       ``(1) Bank definitions.--The following definitions shall 
     apply with respect to a bank:
       ``(A) Account.--The term `account'--
       ``(i) means a formal banking or business relationship 
     established to provide regular services, dealings, and other 
     financial transactions; and
       ``(ii) includes a demand deposit, savings deposit, or other 
     transaction or asset account and a credit account or other 
     extension of credit.
       ``(B) Correspondent account.--The term `correspondent 
     account' means an account established to receive deposits 
     from, make payments on behalf of a foreign financial 
     institution, or handle other financial transactions related 
     to such institution.
       ``(C) Payable-through account.--The term `payable-through 
     account' means an account, including a transaction account 
     (as defined in section 19(b)(1)(C) of the Federal Reserve 
     Act), opened at a depository institution by a foreign 
     financial institution by means of which the foreign financial 
     institution permits its customers to engage, either directly 
     or through a subaccount, in banking activities usual in 
     connection with the business of banking in the United States.
       ``(D) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.

[[Page 19989]]

       ``(2) Definitions applicable to institutions other than 
     banks.--With respect to any financial institution other than 
     a bank, the Secretary shall, after consultation with the 
     appropriate Federal functional regulators (as defined in 
     section 509 of the Gramm-Leach-Bliley Act), define by 
     regulation the term `account', and shall include within the 
     meaning of that term, to the extent, if any, that the 
     Secretary deems appropriate, arrangements similar to payable-
     through and correspondent accounts.
       ``(3) Regulatory definition.--The Secretary shall prescribe 
     regulations defining beneficial ownership of an account for 
     purposes of this subchapter. Such regulations shall address 
     issues related to an individual's authority to fund, direct, 
     or manage the account (including the power to direct payments 
     into or out of the account), and an individual's material 
     interest in the income or corpus of the account, and shall 
     ensure that the identification of individuals under this 
     section does not extend to any individual whose beneficial 
     interest in the income or corpus of the account is 
     immaterial.
       ``(4) Other terms.--The Secretary may, by regulation, 
     further define the terms in paragraphs (1) and (2) and define 
     other terms for the purposes of this section, as the 
     Secretary deems appropriate.''.
       (b) Financial Institutions Specified in Subchapter II of 
     Chapter 53 of Title 31, United States Code.--
       (1) Credit unions.--Subparagraph (E) of section 5312(2) of 
     title 31, United States Code, is amended to read as follows:
       ``(E) any credit union;''.
       (2) Futures commission merchant; commodity trading advisor; 
     commodity pool operator.--Section 5312 of title 31, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(c) Additional Definitions.--For purposes of this 
     subchapter, the following definitions shall apply:
       ``(1) Certain institutions included in definition.--The 
     term `financial institution' (as defined in subsection (a)) 
     includes the following:
       ``(A) Any futures commission merchant, commodity trading 
     advisor, or commodity pool operator registered, or required 
     to register, under the Commodity Exchange Act.''.
       (3) CFTC included.--For purposes of this Act and any 
     amendment made by this Act to any other provision of law, the 
     term ``Federal functional regulator'' includes the Commodity 
     Futures Trading Commission.
       (c) Clerical Amendment.--The table of sections for 
     subchapter II of chapter 53 of title 31, United States Code, 
     is amended by inserting after the item relating to section 
     5318 the following new item:

``5318A. Special measures for jurisdictions, financial institutions, or 
              international transactions of primary money laundering 
              concern.''.

     SEC. 302. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS 
                   AND PRIVATE BANKING ACCOUNTS.

       (a) In General.--Section 5318 of title 31, United States 
     Code, is amended by inserting after subsection (i) (as added 
     by section 119 of this Act) the following new subsection:
       ``(j) Due Diligence for United States Private Banking and 
     Correspondent Bank Accounts Involving Foreign Persons.--
       ``(1) In general.--Each financial institution that 
     establishes, maintains, administers, or manages a private 
     banking account or a correspondent account in the United 
     States for a non-United States person, including a foreign 
     individual visiting the United States, or a representative of 
     a non-United States person, shall establish appropriate, 
     specific, and, where necessary, enhanced due diligence 
     policies, procedures, and controls to detect and report 
     instances of money laundering through those accounts.
       ``(2) Special standards for certain correspondent 
     accounts.--
       ``(A) In general.--Subparagraph (B) shall apply if a 
     correspondent account is requested or maintained by, or on 
     behalf of, a foreign bank operating--
       ``(i) under an offshore banking license; or
       ``(ii) under a banking license issued by a foreign country 
     that has been designated--

       ``(I) as noncooperative with international anti-money 
     laundering principles or procedures by an intergovernmental 
     group or organization of which the United States is a member 
     with which designation the Secretary of the Treasury concurs; 
     or
       ``(II) by the Secretary as warranting special measures due 
     to money laundering concerns.

       ``(B) Policies, procedures, and controls.--The enhanced due 
     diligence policies, procedures, and controls required under 
     paragraph (1) for foreign banks described in subparagraph (A) 
     shall, at a minimum, ensure that the financial institution in 
     the United States takes reasonable steps--
       ``(i) to ascertain for any such foreign bank, the shares of 
     which are not publicly traded, the identity of each of the 
     owners of the foreign bank, and the nature and extent of the 
     ownership interest of each such owner;
       ``(ii) to conduct enhanced scrutiny of such account to 
     guard against money laundering and report any suspicious 
     transactions under section 5318(g); and
       ``(iii) to ascertain whether such foreign bank provides 
     correspondent accounts to other foreign banks and, if so, the 
     identity of those foreign banks and related due diligence 
     information, as appropriate under paragraph (1).
       ``(3) Minimum standards for private banking accounts.--If a 
     private banking account is requested or maintained by, or on 
     behalf of, a non-United States person, then the due diligence 
     policies, procedures, and controls required under paragraph 
     (1) shall, at a minimum, ensure that the financial 
     institution takes reasonable steps--
       ``(A) to ascertain the identity of the nominal and 
     beneficial owners of, and the source of funds deposited into, 
     such account as needed to guard against money laundering and 
     report any suspicious transactions under section 5318(g); and
       ``(B) to conduct enhanced scrutiny of any such account that 
     is requested or maintained by, or on behalf of, a senior 
     foreign political figure, or any immediate family member or 
     close associate of a senior foreign political figure, to 
     prevent, detect, and report transactions that may involve the 
     proceeds of foreign corruption.
       ``(4) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Offshore banking license.--The term `offshore banking 
     license' means a license to conduct banking activities which, 
     as a condition of the license, prohibits the licensed entity 
     from conducting banking activities with the citizens of, or 
     with the local currency of, the country which issued the 
     license.
       ``(B) Private bank account.--The term `private bank 
     account' means an account (or any combination of accounts) 
     that--
       ``(i) requires a minimum aggregate deposits of funds or 
     other assets of not less than $1,000,000;
       ``(ii) is established on behalf of 1 or more individuals 
     who have a direct or beneficial ownership interest in the 
     account; and
       ``(iii) is assigned to, or is administered or managed by, 
     in whole or in part, an officer, employee, or agent of a 
     financial institution acting as a liaison between the 
     financial institution and the direct or beneficial owner of 
     the account.
       ``(5) Regulatory authority.--Before the end of the 6-month 
     period beginning on the date of the enactment of the 
     Financial Anti-Terrorism Act of 2001, the Secretary, in 
     consultation with the appropriate Federal functional 
     regulators (as defined in section 509 of the Gramm-Leach-
     Bliley Act) shall further define and clarify, by regulation, 
     the requirements of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect beginning 180 days after the date of the 
     enactment of this Act with respect to accounts covered by 
     subsection (j) of section 5318 of title 31, United States 
     Code (as added by this section) that are opened before, on, 
     or after the date of the enactment of this Act.

     SEC. 303. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS 
                   WITH FOREIGN SHELL BANKS.

       Section 5318 of title 31, United States Code, is amended by 
     inserting after subsection (j) (as added by section 302 of 
     this title) the following new subsection:
       ``(k) Prohibition on United States Correspondent Accounts 
     With Foreign Shell Banks.--
       ``(1) In general.--A depository institution shall not 
     establish, maintain, administer, or manage a correspondent 
     account in the United States for, or on behalf of, a foreign 
     bank that does not have a physical presence in any country.
       ``(2) Prevention of indirect service to foreign shell 
     banks.--
       ``(A) In general.--A depository institution shall take 
     reasonable steps to ensure that any correspondent account 
     established, maintained, administered, or managed by that 
     institution in the United States for a foreign bank is not 
     being used by that foreign bank to indirectly provide banking 
     services to another foreign bank that does not have a 
     physical presence in any country.
       ``(B) Regulations.--The Secretary shall, in regulations, 
     delineate reasonable steps necessary for a depository 
     institution to comply with this subsection.
       ``(3) Exception.--Paragraphs (1) and (2) shall not be 
     construed as prohibiting a depository institution from 
     providing a correspondent account to a foreign bank, if the 
     foreign bank--
       ``(A) is an affiliate of a depository institution, credit 
     union, or other foreign bank that maintains a physical 
     presence in the United States or a foreign country, as 
     applicable; and
       ``(B) is subject to supervision by a banking authority in 
     the country regulating the affiliated depository institution, 
     credit union, or foreign bank, described in subparagraph (A), 
     as applicable.
       ``(4) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(A) Affiliate.--The term `affiliate' means a foreign bank 
     that is controlled by or is under common control with a 
     depository institution, credit union, or foreign bank.
       ``(B) Depository institution.--The `depository 
     institution'--
       ``(i) has the meaning given such term in section 3 of the 
     Federal Deposit Insurance Act; and
       ``(ii) includes a credit union.

[[Page 19990]]

       ``(C) Physical presence.--The term `physical presence' 
     means a place of business that--
       ``(i) is maintained by a foreign bank;
       ``(ii) is located at a fixed address (other than solely an 
     electronic address) in a country in which the foreign bank is 
     authorized to conduct banking activities, at which location 
     the foreign bank--

       ``(I) employs 1 or more individuals on a full-time basis; 
     and
       ``(II) maintains operating records related to its banking 
     activities; and

       ``(iii) is subject to inspection by the banking authority 
     which licensed the foreign bank to conduct banking 
     activities.''.

     SEC. 304. ANTI-MONEY LAUNDERING PROGRAMS.

       (a) In General.--Section 5318(h) of title 31, United States 
     Code, is amended to read as follows:
       ``(h) Anti-Money Laundering Programs.--
       ``(1) In general.--In order to guard against money 
     laundering through financial institutions, each financial 
     institution shall establish anti-money laundering programs, 
     including, at a minimum--
       ``(A) the development of internal policies, procedures, and 
     controls;
       ``(B) the designation of an officer of the financial 
     institution responsible for compliance;
       ``(C) an ongoing employee training program; and
       ``(D) an independent audit function to test programs.
       ``(2) Regulations.--The Secretary may, after consultation 
     with the appropriate Federal functional regulators (as 
     defined in section 509 of the Gramm-Leach-Bliley Act), 
     prescribe minimum standards for programs established under 
     paragraph (1), and may exempt from the application of those 
     standards any financial institution that is not subject to 
     the provisions of the regulations contained in part 103 of 
     title 31, of the Code of Federal Regulations, as in effect on 
     the date of the enactment of the Financial Anti-Terrorism Act 
     of 2001, or any successor to such regulations, for so long as 
     such financial institution is not subject to the provisions 
     of such regulations.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect at the end of the 180-day period beginning 
     on the date of the enactment of this Act.
       (c) Date of Application of Regulations; Factors to Be Taken 
     Into Account.--Before the end of the 180-day period beginning 
     on the date of the enactment of this Act, the Secretary of 
     the Treasury shall prescribe regulations to implement the 
     amendment made by subsection (a). In prescribing such 
     regulations, the Secretary shall consider the extent to which 
     the requirements imposed under such regulations are 
     commensurate with the size, location, and activities of the 
     financial institutions to which such regulations apply.

     SEC. 305. CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS.

       Section 5318(h) of title 31, United States Code (as amended 
     by section 304) is amended by adding at the end the 
     following:
       ``(3) Concentration accounts.--The Secretary may prescribe 
     regulations under this subsection that govern maintenance of 
     concentration accounts by financial institutions, in order to 
     ensure that such accounts are not used to prevent association 
     of the identity of an individual customer with the movement 
     of funds of which the customer is the direct or beneficial 
     owner, which regulations shall, at a minimum--
       ``(A) prohibit financial institutions from allowing clients 
     to direct transactions that move their funds into, out of, or 
     through the concentration accounts of the financial 
     institution;
       ``(B) prohibit financial institutions and their employees 
     from informing customers of the existence of, or the means of 
     identifying, the concentration accounts of the institution; 
     and
       ``(C) require each financial institution to establish 
     written procedures governing the documentation of all 
     transactions involving a concentration account, which 
     procedures shall ensure that, any time a transaction 
     involving a concentration account commingles funds belonging 
     to 1 or more customers, the identity of, and specific amount 
     belonging to, each customer is documented.''.

     SEC. 306. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF 
                   MONEY LAUNDERING, FINANCIAL CRIMES, AND THE 
                   FINANCES OF TERRORIST GROUPS.

       (a) Negotiations.--
       (1) In general.--It is the sense of the Congress that, in 
     addition to the existing requirements of section 4702 of the 
     Anti-Drug Abuse Act of 1988, the President should direct the 
     Secretary of State, the Attorney General, or the Secretary of 
     the Treasury, as appropriate and in consultation with the 
     Board of Governors of the Federal Reserve System, to seek to 
     enter into negotiations with the appropriate financial 
     supervisory agencies and other officials of any foreign 
     country the financial institutions of which do business with 
     United States financial institutions or which may be utilized 
     by any foreign terrorist organization (as designated under 
     section 219 of the Immigration and Nationality Act), any 
     person who is a member or representative of any such 
     organization, or any person engaged in money laundering or 
     financial or other crimes.
       (2) Purposes of negotiations.--It is the sense of the 
     Congress that, in carrying out any negotiations described in 
     paragraph (1), the President should direct the Secretary of 
     State, the Attorney General, or the Secretary of the 
     Treasury, as appropriate, to seek to enter into and further 
     cooperative efforts, voluntary information exchanges, the use 
     of letters rogatory, mutual legal assistance treaties, and 
     international agreements to--
       (A) ensure that foreign banks and other financial 
     institutions maintain adequate records of--
       (i) large United States currency transactions; and
       (ii) transaction and account information relating to any 
     foreign terrorist organization (as designated under section 
     219 of the Immigration and Nationality Act), any person who 
     is a member or representative of any such organization, or 
     any person engaged in money laundering or financial or other 
     crimes; and
       (B) establish a mechanism whereby such records may be made 
     available to United States law enforcement officials and 
     domestic financial institution supervisors, when appropriate.
       (b) Reports.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act and annually thereafter, the 
     Secretary of State, in conjunction with the Attorney General 
     and the Secretary of the Treasury, shall submit a report to 
     the Congress, on the progress in any negotiations described 
     in subsection (a).
       (2) Identification of certain countries.--In any report 
     submitted under paragraph (1), the Secretary of State shall 
     identify countries--
       (A) with respect to which the Secretary determines there is 
     evidence that the financial institutions in such countries 
     are being utilized by any foreign terrorist organization (as 
     designated under section 219 of the Immigration and 
     Nationality Act), any person who is a member or 
     representative of any such organization, or any person 
     engaged in money laundering or financial or other crimes; and
       (B) which have not reached agreement with United States 
     authorities to meet the objectives of subparagraphs (A) and 
     (B) of subsection (a)(2).
       (3) Report on penalties and sanctions.--If the President 
     determines that--
       (A) a foreign country is described in subparagraphs (A) and 
     (B) of paragraph (2); and
       (B) such country--
       (i) is not negotiating in good faith to reach an agreement 
     described in subsection (a)(2); or
       (ii) has not complied with, or a financial institution of 
     such country has not complied with, a request, made by an 
     official of the United States Government authorized to make 
     such request, for information regarding a foreign terrorist 
     organization (as designated under section 219 of the 
     Immigration and Nationality Act), a person who is a member or 
     representative of any such organization, or a person engaged 
     in money laundering for or with any such organization,
     and the President imposes any penalties or sanctions on such 
     country or financial institutions of such country on the 
     basis of such determination, the Secretary of State shall 
     submit a report to the Congress describing the facts and 
     circumstances of the case before the end of the 60-day period 
     beginning on the date such sanctions and penalties take 
     effect.

                     TITLE IV--CURRENCY PROTECTION

     SEC. 401. COUNTERFEITING DOMESTIC CURRENCY AND OBLIGATIONS.

       (a) Counterfeit Acts Committed Outside the United States.--
     Section 470 of title 18, United States Code, is amended--
       (1) in paragraph (2), by inserting ``analog, digital, or 
     electronic image,'' after ``plate, stone,''; and
       (2) by striking ``shall be fined under this title, 
     imprisoned not more than 20 years, or both'' and inserting 
     ``shall be punished as is provided for the like offense 
     within the United States''.
       (b) Obligations or Securities of the United States.--
     Section 471 of title 18, United States Code, is amended by 
     striking ``fifteen years'' and inserting ``20 years''.
       (c) Uttering Counterfeit Obligations or Securities.--
     Section 472 of title 18, United States Code, is amended by 
     striking ``fifteen years'' and inserting ``20 years''.
       (d) Dealing in Counterfeit Obligations or Securities.--
     Section 473 of title 18, United States Code, is amended by 
     striking ``ten years'' and inserting ``20 years''.
       (e) Plates, Stones, or Analog, Digital, or Electronic 
     Images for Counterfeiting Obligations or Securities.--
       (1) In general.--Section 474(a) of title 18, United States 
     Code, is amended by inserting after the second paragraph the 
     following new paragraph:
       ``Whoever, with intent to defraud, makes, executes, 
     acquires, scans, captures, records, receives, transmits, 
     reproduces, sells, or has in such person's control, custody, 
     or possession, an analog, digital, or electronic image of any 
     obligation or other security of the United States; or''.
       (2) Amendment to definition.--Section 474(b) of title 18, 
     United States Code, is

[[Page 19991]]

     amended by striking the first sentence and inserting the 
     following new sentence: ``For purposes of this section, the 
     term `analog, digital, or electronic image' includes any 
     analog, digital, or electronic method used for the making, 
     execution, acquisition, scanning, capturing, recording, 
     retrieval, transmission, or reproduction of any obligation or 
     security, unless such use is authorized by the Secretary of 
     the Treasury.''.
       (3) Technical and conforming amendment.--The heading for 
     section 474 of title 18, United States Code, is amended by 
     striking ``or stones'' and inserting ``, stones, or analog, 
     digital, or electronic images''.
       (4) Clerical amendment.--The table of sections for chapter 
     25 of title 18, United States Code, is amended in the item 
     relating to section 474 by striking ``or stones'' and 
     inserting ``, stones, or analog, digital, or electronic 
     images''.
       (f) Taking Impressions of Tools Used for Obligations or 
     Securities.--Section 476 of title 18, United States Code, is 
     amended--
       (1) by inserting ``analog, digital, or electronic image,'' 
     after ``impression, stamp,''; and
       (2) by striking ``ten years'' and inserting ``25 years''.
       (g) Possessing or Selling Impressions of Tools Used for 
     Obligations or Securities.--Section 477 of title 18, United 
     States Code, is amended--
       (1) in the first paragraph, by inserting ``analog, digital, 
     or electronic image,'' after ``imprint, stamp,'';
       (2) in the second paragraph, by inserting ``analog, 
     digital, or electronic image,'' after ``imprint, stamp,''; 
     and
       (3) in the third paragraph, by striking ``ten years'' and 
     inserting ``25 years''.
       (h) Connecting Parts of Different Notes.--Section 484 of 
     title 18, United States Code, is amended by striking ``five 
     years'' and inserting ``10 years''.
       (i) Bonds and Obligations of Certain Lending Agencies.--The 
     first and second paragraphs of section 493 of title 18, 
     United States Code, are each amended by striking ``five 
     years'' and inserting ``10 years''.

     SEC. 402. COUNTERFEITING FOREIGN CURRENCY AND OBLIGATIONS.

       (a) Foreign Obligations or Securities.--Section 478 of 
     title 18, United States Code, is amended by striking ``five 
     years'' and inserting ``20 years''.
       (b) Uttering Counterfeit Foreign Obligations or 
     Securities.--Section 479 of title 18, United States Code, is 
     amended by striking ``three years'' and inserting ``20 
     years''.
       (c) Possessing Counterfeit Foreign Obligations or 
     Securities.--Section 480 of title 18, United States Code, is 
     amended by striking ``one year'' and inserting ``20 years''.
       (d) Plates, Stones, or Analog, Digital, or Electronic 
     Images for Counterfeiting Foreign Obligations or 
     Securities.--
       (1) In general.--Section 481 of title 18, United States 
     Code, is amended by inserting after the second paragraph the 
     following new paragraph:
       ``Whoever, with intent to defraud, makes, executes, 
     acquires, scans, captures, records, receives, transmits, 
     reproduces, sells, or has in such person's control, custody, 
     or possession, an analog, digital, or electronic image of any 
     bond, certificate, obligation, or other security of any 
     foreign government, or of any treasury note, bill, or promise 
     to pay, lawfully issued by such foreign government and 
     intended to circulate as money; or''.
       (2) Increased sentence.--The last paragraph of section 481 
     of title 18, United States Code, is amended by striking 
     ``five years'' and inserting ``25 years''.
       (3) Technical and conforming amendment.--The heading for 
     section 481 of title 18, United States Code, is amended by 
     striking ``or stones'' and inserting ``, stones, or analog, 
     digital, or electronic images''.
       (4) Clerical amendment.--The table of sections for chapter 
     25 of title 18, United States Code, is amended in the item 
     relating to section 481 by striking ``or stones'' and 
     inserting ``, stones, or analog, digital, or electronic 
     images''.
       (e) Foreign Bank Notes.--Section 482 of title 18, United 
     States Code, is amended by striking ``two years'' and 
     inserting ``20 years''.
       (f) Uttering Counterfeit Foreign Bank Notes.--Section 483 
     of title 18, United States Code, is amended by striking ``one 
     year'' and inserting ``20 years''.

     SEC. 403. PRODUCTION OF DOCUMENTS.

       Section 5114(a) of title 31, United States Code (relating 
     to engraving and printing currency and security documents), 
     is amended--
       (1) by striking ``(a) The Secretary of the Treasury'' and 
     inserting:
       ``(a) Authority To Engrave and Print.--
       ``(1) In general.--The Secretary of the Treasury''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Engraving and printing for other governments.--The 
     Secretary of the Treasury may, if the Secretary determines 
     that it will not interfere with engraving and printing needs 
     of the United States, produce currency, postage stamps, and 
     other security documents for foreign governments, subject to 
     a determination by the Secretary of State that such 
     production would be consistent with the foreign policy of the 
     United States.''.

     SEC. 404. REIMBURSEMENT.

       Section 5143 of title 31, United States Code (relating to 
     payment for services of the Bureau of Engraving and 
     Printing), is amended--
       (1) in the first sentence, by inserting ``, any foreign 
     government, or any territory of the United States'' after 
     ``agency'';
       (2) in the second sentence, by inserting ``and other'' 
     after ``administrative''; and
       (3) in the last sentence, by inserting ``, foreign 
     government, or territory of the United States'' after 
     ``agency''.

  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  Mr. LaFALCE. Reserving the right to object, Mr. Speaker.
  I will not object because the gentleman from Ohio and myself have 
worked on this bill in a very collegial fashion, in a bipartisan 
fashion; and we have attempted to iron out all differences. As of a 
half hour ago, we did come to accommodation on the remaining 
differences.
  It is my understanding that the suspension calendar tomorrow will 
have the bill we have agreed upon and that amongst other things it in 
no way impinges upon any lawsuit that has been brought or that could be 
brought under existing law. The only impact it would have is to clarify 
that certain provisions of this bill would not expand the law with 
respect to RICO in certain areas. With that understanding, we can go 
forward.
  One of the reasons I am willing to go forward, too, on a suspension 
calendar on such a bill, first of all, is I have long favored a money 
laundering bill. We advanced it last year in the Committee on Banking 
and Financial Services. Secondly, the exigencies of our time demand 
immediate swift action.
  Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.

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