TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
SEC. 301. SHORT TITLE.
This title may be cited as the ``International Money
Laundering Abatement and Financial Anti-Terrorism Act of
2001''.
SEC. 302. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) money laundering, estimated by the International
Monetary Fund to amount to between 2 and 5 percent of global
gross domestic product, which is at least $600,000,000,000
annually, provides the financial fuel that permits
transnational criminal enterprises to conduct and expand
their operations to the detriment of the safety and security
of American citizens;
(2) money laundering, and the defects in financial
transparency on which money launderers rely, are critical to
the financing of global terrorism and the provision of funds
for terrorist attacks;
(3) money launderers subvert legitimate financial
mechanisms and banking relationships by using them as
protective covering for the movement of criminal proceeds and
the financing of crime and terrorism, and, by so doing, can
threaten the safety of United States citizens and undermine
the integrity of United States financial institutions and of
the global financial and trading systems upon which
prosperity and growth depend;
(4) certain jurisdictions outside of the United States that
offer ``offshore'' banking and related facilities designed to
provide anonymity, coupled with weak financial supervisory
and enforcement regimes, provide essential tools to disguise
ownership and movement of criminal funds, derived from, or
used to commit, offenses ranging from narcotics trafficking,
terrorism, arms smuggling, and trafficking in human beings,
to financial frauds that prey on law-abiding citizens;
(5) transactions involving such offshore jurisdictions make
it difficult for law enforcement officials and regulators to
follow the trail of money earned by criminals, organized
international criminal enterprises, and global terrorist
organizations;
(6) correspondent banking facilities are one of the banking
mechanisms susceptible in some circumstances to manipulation
by foreign banks to permit the laundering of funds by hiding
the identity of real parties in interest to financial
transactions;
(7) private banking services can be susceptible to
manipulation by money launderers, for example corrupt foreign
government officials, particularly if those services include
the creation of offshore accounts and facilities for large
personal funds transfers to channel funds into accounts
around the globe;
(8) United States anti-money laundering efforts are impeded
by outmoded and inadequate statutory provisions that make
investigations, prosecutions, and forfeitures more difficult,
particularly in cases in which money laundering involves
foreign persons, foreign banks, or foreign countries;
(9) the ability to mount effective counter-measures to
international money launderers requires national, as well as
bilateral and multilateral action, using tools specially
designed for that effort; and
(10) the Basle Committee on Banking Regulation and
Supervisory Practices and the Financial Action Task Force on
Money Laundering, of both of which the United States is a
member, have each adopted international anti-money laundering
principles and recommendations.
(b) Purposes.--The purposes of this title are--
(1) to increase the strength of United States measures to
prevent, detect, and prosecute international money laundering
and the financing of terrorism;
(2) to ensure that--
(A) banking transactions and financial relationships and
the conduct of such transactions and relationships, do not
contravene the purposes of subchapter II of chapter 53 of
[[Page H7167]]
title 31, United States Code, section 21 of the Federal
Deposit Insurance Act, or chapter 2 of title I of Public Law
91-508 (84 Stat. 1116), or facilitate the evasion of any such
provision; and
(B) the purposes of such provisions of law continue to be
fulfilled, and such provisions of law are effectively and
efficiently administered;
(3) to strengthen the provisions put into place by the
Money Laundering Control Act of 1986 (18 U.S.C. 981 note),
especially with respect to crimes by non-United States
nationals and foreign financial institutions;
(4) to provide a clear national mandate for subjecting to
special scrutiny those foreign jurisdictions, financial
institutions operating outside of the United States, and
classes of international transactions or types of accounts
that pose particular, identifiable opportunities for criminal
abuse;
(5) to provide the Secretary of the Treasury (in this title
referred to as the ``Secretary'') with broad discretion,
subject to the safeguards provided by the Administrative
Procedure Act under title 5, United States Code, to take
measures tailored to the particular money laundering problems
presented by specific foreign jurisdictions, financial
institutions operating outside of the United States, and
classes of international transactions or types of accounts;
(6) to ensure that the employment of such measures by the
Secretary permits appropriate opportunity for comment by
affected financial institutions;
(7) to provide guidance to domestic financial institutions
on particular foreign jurisdictions, financial institutions
operating outside of the United States, and classes of
international transactions that are of primary money
laundering concern to the United States Government;
(8) to ensure that the forfeiture of any assets in
connection with the anti-terrorist efforts of the United
States permits for adequate challenge consistent with
providing due process rights;
(9) to clarify the terms of the safe harbor from civil
liability for filing suspicious activity reports;
(10) to strengthen the authority of the Secretary to issue
and administer geographic targeting orders, and to clarify
that violations of such orders or any other requirement
imposed under the authority contained in chapter 2 of title I
of Public Law 91-508 and subchapters II and III of chapter 53
of title 31, United States Code, may result in criminal and
civil penalties;
(11) to ensure that all appropriate elements of the
financial services industry are subject to appropriate
requirements to report potential money laundering
transactions to proper authorities, and that jurisdictional
disputes do not hinder examination of compliance by financial
institutions with relevant reporting requirements;
(12) to strengthen the ability of financial institutions to
maintain the integrity of their employee population; and
(13) to strengthen measures to prevent the use of the
United States financial system for personal gain by corrupt
foreign officials and to facilitate the repatriation of any
stolen assets to the citizens of countries to whom such
assets belong.
SEC. 303. 4-YEAR CONGRESSIONAL REVIEW; EXPEDITED
CONSIDERATION.
(a) In General.--Effective on and after the first day of
fiscal year 2005, the provisions of this title and the
amendments made by this title shall terminate if the Congress
enacts a joint resolution, the text after the resolving
clause of which is as follows: ``That provisions of the
International Money Laundering Abatement and Anti-Terrorist
Financing Act of 2001, and the amendments made thereby, shall
no longer have the force of law.''.
(b) Expedited Consideration.--Any joint resolution
submitted pursuant to this section should be considered by
the Congress expeditiously. In particular, it shall be
considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and
Arms Control Act of 1976.
Subtitle A--International Counter Money Laundering and Related Measures
SEC. 311. 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 of the Treasury 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 rule promulgated 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 of the Treasury--
``(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 of the action on United States 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 of the Treasury 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.
``(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, or transaction or type of account
to be of primary money laundering concern.
[[Page H7168]]
``(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 of the Treasury 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 of the Treasury 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 and subsections
(i) and (j) of section 5318, 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.
``(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 of beneficial ownership.--The
Secretary shall promulgate regulations defining beneficial
ownership of an account for purposes of this section and
subsections (i) and (j) of section 5318. Such regulations
shall address issues related to an individual's authority to
fund, direct, or manage the account (including, without
limitation, 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), (2), and (3), and
define other terms for the purposes of this section, as the
Secretary deems appropriate.''.
(b) 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. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS
AND PRIVATE BANKING ACCOUNTS.
(a) In General.--Section 5318 of title 31, United States
Code, is amended by adding at the end the following:
``(i) Due Diligence for United States Private Banking and
Correspondent Bank Accounts Involving Foreign Persons.--
[[Page H7169]]
``(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 that are reasonably
designed to detect and report instances of money laundering
through those accounts.
``(2) Additional 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 United States representative to
the group or organization concurs; or
``(II) by the Secretary of the Treasury 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) 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 subsection (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 subsection (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 that is
reasonably designed to detect and report transactions that
may involve the proceeds of foreign corruption.
``(4) Definition.--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 banking account.--The term `private banking
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.''.
(b) Regulatory Authority and Effective Date.--
(1) Regulatory authority.--Not later than 180 days after
the date of enactment of this Act, the Secretary, in
consultation with the appropriate Federal functional
regulators (as defined in section 509 of the Gramm-Leach-
Bliley Act) of the affected financial institutions, shall
further delineate, by regulation, the due diligence policies,
procedures, and controls required under section 5318(i)(1) of
title 31, United States Code, as added by this section.
(2) Effective date.--Section 5318(i) of title 31, United
States Code, as added by this section, shall take effect 270
days after the date of enactment of this Act, whether or not
final regulations are issued under paragraph (1), and the
failure to issue such regulations shall in no way affect the
enforceability of this section or the amendments made by this
section. Section 5318(i) of title 31, United States Code, as
added by this section, shall apply with respect to accounts
covered by that section 5318(i), that are opened before, on,
or after the date of enactment of this Act.
SEC. 313. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS
WITH FOREIGN SHELL BANKS.
(a) In General.--Section 5318 of title 31, United States
Code, as amended by this title, is amended by adding at the
end the following:
``(j) Prohibition on United States Correspondent Accounts
With Foreign Shell Banks.--
``(1) In general.--A financial institution described in
subparagraphs (A) through (G) of section 5312(a)(2) (in this
subsection referred to as a `covered financial 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 covered financial institution shall take reasonable
steps to ensure that any correspondent account established,
maintained, administered, or managed by that covered
financial 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. The Secretary of the
Treasury shall, by regulation, delineate the reasonable steps
necessary to comply with this paragraph.
``(3) Exception.--Paragraphs (1) and (2) do not prohibit a
covered financial 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 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 subsection--
``(A) 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; and
``(B) 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.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect at the end of the 60-day period beginning
on the date of enactment of this Act.
SEC. 314. COOPERATIVE EFFORTS TO DETER MONEY LAUNDERING.
(a) Cooperation Among Financial Institutions, Regulatory
Authorities, and Law Enforcement Authorities.--
(1) Regulations.--The Secretary shall, within 120 days
after the date of enactment of this Act, adopt regulations to
encourage further cooperation among financial institutions,
their regulatory authorities, and law enforcement
authorities, with the specific purpose of encouraging
regulatory authorities and law enforcement authorities to
share with financial institutions information regarding
individuals, entities, and organizations engaged in or
reasonably suspected based on credible evidence of engaging
in terrorist acts or money laundering activities.
(2) Cooperation and information sharing procedures.--The
regulations adopted under paragraph (1) may include or create
procedures for cooperation and information sharing focusing
on--
(A) matters specifically related to the finances of
terrorist groups, the means by which terrorist groups
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.
(3) Contents.--The regulations adopted pursuant to
paragraph (1) may--
(A) require that each financial institution designate 1 or
more persons to receive information concerning, and to
monitor accounts of individuals, entities, and organizations
identified, pursuant to paragraph (1); and
(B) further establish procedures for the protection of the
shared information, consistent with the capacity, size, and
nature of the institution to which the particular procedures
apply.
(4) Rule of construction.--The receipt of information by a
financial institution pursuant to this section shall not
relieve or otherwise modify the obligations of the financial
[[Page H7170]]
institution with respect to any other person or account.
(5) Use of information.--Information received by a
financial institution pursuant to this section shall not be
used for any purpose other than identifying and reporting on
activities that may involve terrorist acts or money
laundering activities.
(b) Cooperation Among Financial Institutions.--Upon notice
provided to the Secretary, 2 or more financial institutions
and any association of financial institutions may share
information with one another regarding individuals, entities,
organizations, and countries suspected of possible terrorist
or money laundering activities. A financial institution or
association that transmits, receives, or shares such
information for the purposes of identifying and reporting
activities that may involve terrorist acts or money
laundering activities 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
thereof, 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 the person who is the subject of such
disclosure, or any other person identified in the disclosure,
except where such transmission, receipt, or sharing violates
this section or regulations promulgated pursuant to this
section.
(c) Rule of Construction.--Compliance with the provisions
of this title requiring or allowing financial institutions
and any association of financial institutions to disclose or
share information regarding individuals, entities, and
organizations engaged in or suspected of engaging in
terrorist acts or money laundering activities shall not
constitute a violation of the provisions of title V of the
Gramm-Leach-Bliley Act (Public Law 106-102).
(d) Reports to the Financial Services Industry on
Suspicious Financial Activities.--At least semiannually, the
Secretary 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. 315. INCLUSION OF FOREIGN CORRUPTION OFFENSES AS MONEY
LAUNDERING CRIMES.
Section 1956(c)(7) of title 18, United States Code, is
amended--
(1) in subparagraph (B)--
(A) in clause (ii), by striking ``or destruction of
property by means of explosive or fire'' and inserting
``destruction of property by means of explosive or fire, or a
crime of violence (as defined in section 16)'';
(B) in clause (iii), by striking ``1978'' and inserting
``1978)''; and
(C) by adding at the end the following:
``(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--
``(I) an item controlled on the United States Munitions
List established under section 38 of the Arms Export Control
Act (22 U.S.C. 2778); or
``(II) an item controlled under regulations under the
Export Administration Regulations (15 C.F.R. Parts 730-774);
or
``(vi) an offense with respect to which the United States
would be obligated by a multilateral 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,'' before ``or any felony
violation of the Foreign Corrupt Practices Act''.
SEC. 316. ANTI-TERRORIST FORFEITURE PROTECTION.
(a) Right to Contest.--An owner of property that is
confiscated under any provision of law relating to the
confiscation of assets of suspected international terrorists,
may contest that confiscation by filing a claim in the manner
set forth in the Federal Rules of Civil Procedure
(Supplemental Rules for Certain Admiralty and Maritime
Claims), and asserting as an affirmative defense that--
(1) the property is not subject to confiscation under such
provision of law; or
(2) the innocent owner provisions of section 983(d) of
title 18, United States Code, apply to the case.
(b) Evidence.--In considering a claim filed under this
section, a court may admit evidence that is otherwise
inadmissible under the Federal Rules of Evidence, if the
court determines that the evidence is reliable, and that
compliance with the Federal Rules of Evidence may jeopardize
the national security interests of the United States.
(c) Clarifications.--
(1) Protection of rights.--The exclusion of certain
provisions of Federal law from the definition of the term
``civil forfeiture statute'' in section 983(i) of title 18,
United States Code, shall not be construed to deny an owner
of property the right to contest the confiscation of assets
of suspected international terrorists under--
(A) subsection (a) of this section;
(B) the Constitution; or
(C) subchapter II of chapter 5 of title 5, United States
Code (commonly known as the ``Administrative Procedure
Act'').
(2) Savings clause.--Nothing in this section shall limit or
otherwise affect any other remedies that may be available to
an owner of property under section 983 of title 18, United
States Code, or any other provision of law.
(d) Technical Correction.--Section 983(i)(2)(D) of title
18, United States Code, is amended by inserting ``or the
International Emergency Economic Powers Act (IEEPA) (50
U.S.C. 1701 et seq.)'' before the semicolon.
SEC. 317. LONG-ARM JURISDICTION OVER FOREIGN MONEY
LAUNDERERS.
Section 1956(b) of title 18, United States Code, is
amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving the
margins 2 ems to the right;
(2) by inserting after ``(b)'' the following:
``Penalties.--
``(1) In general.--'';
(3) by inserting ``, or section 1957'' after ``or (a)(3)'';
and
(4) by adding at the end the following:
``(2) Jurisdiction over foreign persons.--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 service of process
upon the foreign person is made under the Federal Rules of
Civil Procedure or the laws of the country in which the
foreign person is found, and--
``(A) the foreign person commits an offense under
subsection (a) involving a financial transaction that occurs
in whole or in part in the United States;
``(B) the foreign person converts, to his or her 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
``(C) the foreign person is a financial institution that
maintains a bank account at a financial institution in the
United States.
``(3) Court authority over assets.--A court described in
paragraph (2) 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.
``(4) Federal receiver.--
``(A) In general.--A court described in paragraph (2) may
appoint a Federal Receiver, in accordance with subparagraph
(B) of this paragraph, to collect, marshal, and take custody,
control, and possession of all assets of the defendant,
wherever located, to satisfy a civil judgment under this
subsection, a forfeiture judgment under section 981 or 982,
or a criminal sentence under section 1957 or subsection (a)
of this section, including an order of restitution to any
victim of a specified unlawful activity.
``(B) Appointment and authority.--A Federal Receiver
described in subparagraph (A)--
``(i) may be appointed upon application of a Federal
prosecutor or a Federal or State regulator, by the court
having jurisdiction over the defendant in the case;
``(ii) shall be an officer of the court, and the powers of
the Federal Receiver shall include the powers set out in
section 754 of title 28, United States Code; and
``(iii) shall have standing equivalent to that of a Federal
prosecutor for the purpose of submitting requests to obtain
information regarding the assets of the defendant--
``(I) from the Financial Crimes Enforcement Network of the
Department of the Treasury; or
``(II) from a foreign country pursuant to a mutual legal
assistance treaty, multilateral agreement, or other
arrangement for international law enforcement assistance,
provided that such requests are in accordance with the
policies and procedures of the Attorney General.''.
SEC. 318. LAUNDERING MONEY THROUGH A FOREIGN BANK.
Section 1956(c) of title 18, United States Code, is amended
by striking paragraph (6) and inserting the following:
``(6) the term `financial institution' includes--
``(A) any financial institution, as defined in section
5312(a)(2) of title 31, United States Code, or the
regulations promulgated thereunder; and
``(B) any foreign bank, as defined in section 1 of the
International Banking Act of 1978 (12 U.S.C. 3101).''.
SEC. 319. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK
ACCOUNTS.
(a) Forfeiture From United States Interbank Account.--
Section 981 of title 18, United States Code, is amended by
adding at the end the following:
``(k) Interbank Accounts.--
``(1) In general.--
``(A) In general.--For the purpose of a forfeiture under
this section or under the Controlled Substances Act (21
U.S.C. 801 et seq.),
[[Page H7171]]
if funds are deposited into an account at a foreign bank, and
that foreign bank has an interbank account in the United
States with a covered financial institution (as defined in
section 5318(j)(1) of title 31), the funds shall be deemed to
have been deposited into the interbank account in the United
States, and any restraining order, seizure warrant, or arrest
warrant in rem regarding the funds may be served on the
covered financial institution, and funds in the interbank
account, up to the value of the funds deposited into the
account at the foreign bank, may be restrained, seized, or
arrested.
``(B) Authority to suspend.--The Attorney General, in
consultation with the Secretary of the Treasury, 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), it shall
not be necessary for the Government to establish that the
funds are directly traceable to the funds that were deposited
into the foreign bank, nor shall it be necessary for the
Government to rely on the application of section 984.
``(3) Claims brought by owner of the funds.--If a
forfeiture action is instituted against funds restrained,
seized, or arrested under paragraph (1), the owner of the
funds deposited into the account at the foreign bank may
contest the forfeiture by filing a claim under section 983.
``(4) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Interbank account.--The term `interbank account' has
the same meaning as 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.''.
(b) Bank Records.--Section 5318 of title 31, United States
Code, as amended by this title, is amended by adding at the
end the following:
``(k) Bank Records Related to Anti-Money Laundering
Programs.--
``(1) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Appropriate federal banking agency.--The term
`appropriate Federal banking agency' has the same meaning as
in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
``(B) Incorporated term.--The term `correspondent account'
has the same meaning as in section 5318A(f)(1)(B).
``(2) 120-hour rule.--Not later than 120 hours after
receiving a request by an appropriate Federal banking agency
for information related to anti-money laundering compliance
by a covered financial institution or a customer of such
institution, a covered financial institution shall provide to
the appropriate Federal banking agency, or make available at
a location specified by the representative of the appropriate
Federal banking agency, information and account documentation
for any account opened, maintained, administered or managed
in the United States by the covered financial institution.
``(3) Foreign bank records.--
``(A) Summons or subpoena of records.--
``(i) In general.--The Secretary of the Treasury or the
Attorney General may issue a summons or subpoena to any
foreign bank that maintains a correspondent account in the
United States and request records related to such
correspondent account, including records maintained outside
of the United States relating to the deposit of funds into
the foreign bank.
``(ii) Service of summons or subpoena.--A summons or
subpoena referred to in clause (i) may be served on the
foreign bank in the United States if the foreign bank has a
representative 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.
``(B) Acceptance of service.--
``(i) Maintaining records in the united states.--Any
covered financial institution which maintains a correspondent
account in the United States for a foreign bank shall
maintain records in the United States identifying the owners
of such foreign bank and the name and address of a person who
resides in the United States and is authorized to accept
service of legal process for records regarding the
correspondent account.
``(ii) Law enforcement request.--Upon receipt of a written
request from a Federal law enforcement officer for
information required to be maintained under this paragraph,
the covered financial institution shall provide the
information to the requesting officer not later than 7 days
after receipt of the request.
``(C) Termination of correspondent relationship.--
``(i) Termination upon receipt of notice.--A covered
financial institution shall terminate any correspondent
relationship with a foreign bank not later than 10 business
days after receipt of written notice from the Secretary or
the Attorney General (in each case, after consultation with
the other) that the foreign bank has failed--
``(I) to comply with a summons or subpoena issued under
subparagraph (A); or
``(II) to initiate proceedings in a United States court
contesting such summons or subpoena.
``(ii) Limitation on liability.--A covered financial
institution shall not be liable to any person in any court or
arbitration proceeding for terminating a correspondent
relationship in accordance with this subsection.
``(iii) Failure to terminate relationship.--Failure to
terminate a correspondent relationship in accordance with
this subsection shall render the covered financial
institution liable for a civil penalty of up to $10,000 per
day until the correspondent relationship is so terminated.''.
(c) Grace Period.--Financial institutions shall have 60
days from the date of enactment of this Act to comply with
the provisions of section 5318(k) of title 31, United States
Code, as added by this section.
(d) Authority To Order Convicted Criminal To Return
Property Located Abroad.--
(1) 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.''.
(2) 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. 320. 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 an offense, if the offense--
``(i) involves the manufacture, importation, sale, or
distribution of a controlled substance (as that term is
defined for purposes of the Controlled Substances Act), or
any other conduct described in section 1956(c)(7)(B);
``(ii) would be punishable within the jurisdiction of the
foreign nation by death or imprisonment for a term exceeding
1 year; and
``(iii) would be punishable under the laws of the United
States by imprisonment for a term exceeding 1 year, if the
act or activity
[[Page H7172]]
constituting the offense had occurred within the jurisdiction
of the United States.''.
SEC. 321. FINANCIAL INSTITUTIONS SPECIFIED IN SUBCHAPTER II
OF CHAPTER 53 OF TITLE 31, UNITED STATES CODE.
(a) Credit Unions.--Subparagraph (E) of section 5312(2) of
title 31, United States Code, is amended to read as follows:
``(E) any credit union;''.
(b) 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.''.
(c) 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.
SEC. 322. CORPORATION REPRESENTED BY A FUGITIVE.
Section 2466 of title 18, 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. 323. ENFORCEMENT OF FOREIGN JUDGMENTS.
Section 2467 of title 28, United States Code, is amended--
(1) in subsection (d), by adding the following after
paragraph (2):
``(3) Preservation of property.--
``(A) In general.--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, at
any time before or after an application is filed pursuant to
subsection (c)(1) of this section.
``(B) Evidence.--The court, in issuing a restraining order
under subparagraph (A)--
``(i) 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
``(ii) 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).
``(C) Limit on grounds for objection.--No person may object
to a restraining order under subparagraph (A) 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 or 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. 324. REPORT AND RECOMMENDATION.
Not later than 30 months after the date of enactment of
this Act, the Secretary, in consultation with the Attorney
General, the Federal banking agencies (as defined at section
3 of the Federal Deposit Insurance Act), the National Credit
Union Administration Board, the Securities and Exchange
Commission, and such other agencies as the Secretary may
determine, at the discretion of the Secretary, shall evaluate
the operations of the provisions of this subtitle and make
recommendations to Congress as to any legislative action with
respect to this subtitle as the Secretary may determine to be
necessary or advisable.
SEC. 325. CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS.
Section 5318(h) of title 31, United States Code, as amended
by section 202 of this title, 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. 326. VERIFICATION OF IDENTIFICATION.
(a) In General.--Section 5318 of title 31, United States
Code, as amended by this title, is amended by adding at the
end the following:
``(l) 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 for financial
institutions and their customers regarding the identity of
the customer 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, and
customers (after being given adequate notice) to comply with,
reasonable 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; and
``(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 (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 enactment of the
International Money Laundering Abatement and Financial Anti-
Terrorism Act of 2001.''.
(b) Study and Report Required.--Within 6 months after the
date of enactment of this Act, the Secretary, 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 the identity, address, and other
related information about such foreign nationals 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. 327. 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
[[Page H7173]]
combatting 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, 2001, which has not been approved by the Board
before the date of 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 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, 2001, which has not
been approved by all appropriate responsible agencies before
the date of enactment of this Act.
SEC. 328. INTERNATIONAL COOPERATION ON IDENTIFICATION OF
ORIGINATORS OF WIRE TRANSFERS.
The Secretary 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. 329. CRIMINAL PENALTIES.
Any person who is an official or employee of any
department, agency, bureau, office, commission, or other
entity of the Federal Government, and any other person who is
acting for or on behalf of any such entity, who, directly or
indirectly, in connection with the administration of this
title, corruptly demands, seeks, receives, accepts, or agrees
to receive or accept anything of value personally or for any
other person or entity in return for--
(1) being influenced in the performance of any official
act;
(2) being influenced to commit or aid in the committing, or
to collude in, or allow, any fraud, or make opportunity for
the commission of any fraud, on the United States; or
(3) being induced to do or omit to do any act in violation
of the official duty of such official or person,
shall be fined in an amount not more than 3 times the
monetary equivalent of the thing of value, or imprisoned for
not more than 15 years, or both. A violation of this section
shall be subject to chapter 227 of title 18, United States
Code, and the provisions of the United States Sentencing
Guidelines.
SEC. 330. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF
MONEY LAUNDERING, FINANCIAL CRIMES, AND THE
FINANCES OF TERRORIST GROUPS.
(a) Negotiations.--It is the sense of the Congress that 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.
(b) 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--
(1) ensure that foreign banks and other financial
institutions maintain adequate records of 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
(2) establish a mechanism whereby such records may be made
available to United States law enforcement officials and
domestic financial institution supervisors, when appropriate.
Subtitle B--Bank Secrecy Act Amendments and Related Improvements
SEC. 351. 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 the person
who is the subject of such disclosure or any other person
identified in the disclosure.
``(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 as 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:
``(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.--
``(i) Rule of construction.--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 information that
was included in a report to which subparagraph (A) applies--
``(I) in a written employment reference that is provided in
accordance with section 18(w) of the Federal Deposit
Insurance Act in response to a request from another financial
institution; or
``(II) in a written termination notice or employment
reference that is provided in accordance with the rules of a
self-regulatory organization registered with the Securities
and Exchange Commission or the Commodity Futures Trading
Commission,
except that such written reference or notice may not disclose
that such information was also included in any such report,
or that such report was made.
``(ii) Information not required.--Clause (i) shall not be
construed, by itself, to create any affirmative duty to
include any information described in clause (i) in any
employment reference or termination notice referred to in
clause (i).''.
SEC. 352. 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 a compliance officer;
``(C) an ongoing employee training program; and
``(D) an independent audit function to test programs.
``(2) Regulations.--The Secretary of the Treasury, after
consultation with the appropriate Federal functional
regulator (as defined in section 509 of the Gramm-Leach-
Bliley Act), may prescribe minimum standards for programs
established under paragraph (1), and may exempt from the
application of
[[Page H7174]]
those standards any financial institution that is not subject
to the provisions of the rules contained in part 103 of title
31, of the Code of Federal Regulations, or any successor rule
thereto, for so long as such financial institution is not
subject to the provisions of such rules.''.
(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 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 enactment of this Act, the Secretary shall
prescribe regulations that consider the extent to which the
requirements imposed under this section are commensurate with
the size, location, and activities of the financial
institutions to which such regulations apply.
SEC. 353. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING
ORDERS AND CERTAIN RECORDKEEPING REQUIREMENTS,
AND LENGTHENING EFFECTIVE PERIOD OF GEOGRAPHIC
TARGETING ORDERS.
(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)''; and
(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 Recordkeeping 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 or recordkeeping requirements imposed by any order
issued under section 5326, or the recordkeeping requirements
imposed by any regulation prescribed under section 21 of the
Federal Deposit Insurance Act or section 123 of Public Law
91-508--'';
(3) in paragraph (1), by inserting ``, to file a report or
to maintain a record required by an 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''; and
(4) in paragraph (2), by inserting ``, to file a report or
to maintain a record required by any order issued under
section 5326, or to maintain a record required pursuant to
any regulation prescribed 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''.
(d) Lengthening Effective Period of Geographic Targeting
Orders.--Section 5326(d) of title 31, United States Code, is
amended by striking ``more than 60'' and inserting ``more
than 180''.
SEC. 354. ANTI-MONEY LAUNDERING STRATEGY.
Section 5341(b) of title 31, United States Code, is amended
by adding at the end the following:
``(12) Data regarding funding of terrorism.--Data
concerning money laundering efforts related to the funding of
acts of international terrorism, and efforts directed at the
prevention, detection, and prosecution of such funding.''.
SEC. 355. 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:
``(w) Written Employment References May Contain Suspicions
of Involvement in Illegal Activity.--
``(1) Authority to disclose information.--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.
``(2) Information not required.--Nothing in paragraph (1)
shall be construed, by itself, to create any affirmative duty
to include any information described in paragraph (1) in any
employment reference referred to in paragraph (1).
``(3) Malicious intent.--Notwithstanding any other
provision of this subsection, voluntary disclosure made by an
insured depository institution, and any director, officer,
employee, or agent of such institution under this subsection
concerning potentially unlawful activity that is made with
malicious intent, shall not be shielded from liability from
the person identified in the disclosure.
``(4) Definition.--For purposes of this subsection, the
term `insured depository institution' includes any uninsured
branch or agency of a foreign bank.''.
SEC. 356. REPORTING OF SUSPICIOUS ACTIVITIES BY SECURITIES
BROKERS AND DEALERS; INVESTMENT COMPANY STUDY.
(a) Deadline for Suspicious Activity Reporting Requirements
for Registered Brokers and Dealers.--The Secretary, after
consultation with the Securities and Exchange Commission and
the Board of Governors of the Federal Reserve System, 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 not
later than July 1, 2002.
(b) Suspicious Activity Reporting Requirements For Futures
Commission Merchants, Commodity Trading Advisors, and
Commodity Pool Operators.--The Secretary, 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.
(c) Report on Investment Companies.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary, the Board of Governors
of the Federal Reserve System, and the Securities and
Exchange Commission shall jointly submit a report to the
Congress on recommendations for effective regulations to
apply the requirements of subchapter II of chapter 53 of
title 31, United States Code, to investment companies
pursuant to section 5312(a)(2)(I) of title 31, United States
Code.
(2) Definition.--For purposes of this subsection, the term
``investment company''--
(A) has the same meaning as in section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a-3); and
(B) includes any person that, but for the exceptions
provided for in paragraph (1) or (7) of section 3(c) of the
Investment Company Act of 1940 (15 U.S.C. 80a-3(c)), would be
an investment company.
(3) Additional recommendations.--The report required by
paragraph (1) may make different recommendations for
different types of entities covered by this subsection.
(4) Beneficial ownership of personal holding companies.--
The report described in paragraph (1) shall also include
recommendations as to whether the Secretary should promulgate
regulations to treat any corporation or business or other
grantor trust whose assets are predominantly securities, bank
certificates of deposit, or other securities or investment
instruments (other than such as relate to operating
subsidiaries of such corporation or trust) and that has 5 or
fewer common shareholders or holders of beneficial or other
equity interest, as a financial institution within the
meaning of that phrase in section 5312(a)(2)(I) and whether
to require such corporations or trusts to disclose their
beneficial owners when opening accounts or initiating funds
transfers at any domestic financial institution.
SEC. 357. SPECIAL REPORT ON ADMINISTRATION OF BANK SECRECY
PROVISIONS.
(a) Report Required.--Not later than 6 months after the
date of enactment of this Act, the Secretary shall submit a
report to the Congress relating to the role of the Internal
Revenue Service in the administration of subchapter II of
chapter 53 of title 31, United States Code (commonly known as
the ``Bank Secrecy Act'').
(b) Contents.--The report required by subsection (a)--
(1) shall specifically address, and contain recommendations
concerning--
(A) whether it is advisable to shift the processing of
information reporting to the Department of the Treasury under
the Bank Secrecy Act provisions to facilities other than
those managed by the Internal Revenue Service; and
(B) whether it remains reasonable and efficient, in light
of the objective of both anti-money-laundering programs and
Federal tax administration, for the Internal Revenue Service
to retain authority and responsibility for audit and
examination of the compliance of money services businesses
and gaming institutions with those Bank Secrecy Act
provisions; and
(2) shall, if the Secretary determines that the information
processing responsibility or the audit and examination
responsibility of the Internal Revenue Service, or both, with
respect to those Bank Secrecy Act provisions should be
transferred to other agencies, include the specific
recommendations of the Secretary regarding the agency or
agencies to which any such function should be transferred,
complete with a budgetary and resources plan for
expeditiously accomplishing the transfer.
[[Page H7175]]
SEC. 358. BANK SECRECY PROVISIONS AND ACTIVITIES OF UNITED
STATES INTELLIGENCE AGENCIES TO FIGHT
INTERNATIONAL TERRORISM.
(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 Purposes of the Bank Secrecy
Act Provisions.--Section 21(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1829b(a)) is amended to read as
follows:
``(a) Congressional Findings and Declaration of Purpose.--
``(1) Findings.--Congress finds that--
``(A) adequate records maintained by insured depository
institutions have a high degree of usefulness in criminal,
tax, and regulatory investigations or proceedings, and that,
given the threat posed to the security of the Nation on and
after the terrorist attacks against the United States on
September 11, 2001, such records may also have a high degree
of usefulness in the conduct of intelligence or
counterintelligence activities, including analysis, to
protect against domestic and international terrorism; and
``(B) microfilm or other reproductions and other records
made by insured depository institutions of checks, as well as
records kept by such institutions, of the identity of persons
maintaining or authorized to act with respect to accounts
therein, have been of particular value in proceedings
described in subparagraph (A).
``(2) Purpose.--It is the purpose of this section to
require the maintenance of appropriate types of records by
insured depository institutions in the United States where
such records have a high degree of usefulness in criminal,
tax, or regulatory investigations or proceedings, recognizes
that, given the threat posed to the security of the Nation on
and after the terrorist attacks against the United States on
September 11, 2001, such records may also have a high degree
of usefulness in the conduct of intelligence or
counterintelligence activities, including analysis, to
protect against international terrorism.''.
(e) Amendment Relating to the Purposes of the Bank Secrecy
Act.--Section 123(a) of Public Law 91-508 (12 U.S.C. 1953(a))
is amended to read as follows:
``(a) Regulations.--If the Secretary determines that the
maintenance of appropriate records and procedures by any
uninsured bank or uninsured institution, or any person
engaging in the business of carrying on in the United States
any of the functions referred to in subsection (b), has a
high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings, and that, given the threat
posed to the security of the Nation on and after the
terrorist attacks against the United States on September 11,
2001, such records may also have a high degree of usefulness
in the conduct of intelligence or counterintelligence
activities, including analysis, to protect against
international terrorism, he may by regulation require such
bank, institution, or person.''.
(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
(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 title, 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 enactment of this
Act.
SEC. 359. REPORTING OF SUSPICIOUS ACTIVITIES BY UNDERGROUND
BANKING SYSTEMS.
(a) Definition for Subchapter.--Section 5312(a)(2)(R) 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
any person who engages as a business in an informal money
transfer system or any network of people who engage as a
business in facilitating the transfer of money 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
any person who engages as a business in an informal money
transfer system or any network of people who engage as a
business in facilitating the transfer of money 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 title, is amended by
adding at the end the following:
``(l) Applicability of Rules.--Any rules promulgated
pursuant to the authority contained in section 21 of the
Federal Deposit Insurance Act (12 U.S.C. 1829b) 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 any person who engages as a
business in an informal money transfer system or any network
of people who engage as a business in facilitating the
transfer of money 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 persons who engage as a business in an informal
money transfer system or any network of people who engage as
a business in facilitating the transfer of money domestically
or internationally outside of the conventional financial
institutions system, counter money laundering and
[[Page H7176]]
regulatory controls relating to underground money movement
and banking systems, 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. 360. USE OF AUTHORITY OF UNITED STATES EXECUTIVE
DIRECTORS.
(a) Action by the President.--If the President determines
that a particular foreign country has taken or has committed
to take actions that contribute to efforts of the United
States to respond to, deter, or prevent acts of international
terrorism, the Secretary may, consistent with other
applicable provisions of law, instruct the United States
Executive Director of each international financial
institution to use the voice and vote of the Executive
Director to support any loan or other utilization of the
funds of respective institutions for such country, or any
public or private entity within such country.
(b) Use of Voice and Vote.--The Secretary may instruct the
United States Executive Director of each international
financial institution to aggressively use the voice and vote
of the Executive Director to require an auditing of
disbursements at such institutions to ensure that no funds
are paid to persons who commit, threaten to commit, or
support terrorism.
(c) Definition.--For purposes of this section, the term
``international financial institution'' means an institution
described in section 1701(c)(2) of the International
Financial Institutions Act (22 U.S.C. 262r(c)(2)).
SEC. 361. 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, in this section referred to
as `FinCEN') on April 25, 1990, shall be a bureau in the
Department of the Treasury.
``(b) Director.--
``(1) Appointment.--The head of FinCEN 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 of the
Treasury 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 subchapter
II 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 of the Treasury 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
subchapter II 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) Assist 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 subchapter II 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 FinCEN 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 FinCEN such sums as may be
necessary for fiscal years 2002, 2003, 2004, and 2005.''.
(b) Compliance With Reporting Requirements.--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 enactment of this Act and each 1-
year period thereafter. The initial report shall include
historical data on compliance with such reporting
requirements.
(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. 362. ESTABLISHMENT OF HIGHLY SECURE NETWORK.
(a) In General.--The Secretary 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 Public Law 91-508, or section 21 of
the Federal Deposit Insurance Act through the secure network;
and
(2) provides financial institutions with alerts and other
information regarding suspicious activities that warrant
immediate and enhanced scrutiny.
(b) Expedited Development.--The Secretary shall take such
action as may be necessary to ensure that the secure network
required under subsection (a) is fully operational before the
end of the 9-month period beginning on the date of enactment
of this Act.
SEC. 363. INCREASE IN CIVIL AND CRIMINAL PENALTIES FOR MONEY
LAUNDERING.
(a) Civil Penalties.--Section 5321(a) of title 31, United
States Code, is amended by adding at the end the following:
``(7) Penalties for international counter money laundering
violations.--The Secretary may impose a civil money penalty
in an amount equal to not less than 2 times the amount of the
transaction, but not more than $1,000,000, on any financial
institution or agency that violates any provision of
subsection (i) or (j) of section 5318 or
[[Page H7177]]
any special measures imposed under section 5318A.''.
(b) Criminal Penalties.--Section 5322 of title 31, United
States Code, is amended by adding at the end the following:
``(d) A financial institution or agency that violates any
provision of subsection (i) or (j) of section 5318, or any
special measures imposed under section 5318A, or any
regulation prescribed under subsection (i) or (j) of section
5318 or section 5318A, shall be fined in an amount equal to
not less than 2 times the amount of the transaction, but not
more than $1,000,000.''.
SEC. 364. 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. 365. 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 adding at the end the
following new section:
``Sec. 5331. 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) Clerical Amendment.--The table of sections for chapter
53 of title 31, United States Code, is amended by inserting
after the item relating to section 5332 (as added by section
112 of this title) the following new item:
``5331. Reports relating to coins and currency received in nonfinancial
trade or business.''.
(f) Regulations.--Regulations which the Secretary
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 enactment of this Act.
SEC. 366. 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 shall conduct a study
of--
(A) the possible expansion of the statutory exemption
system in effect under section 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
[[Page H7178]]
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 1-year
period beginning on the date of 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.
Subtitle C--Currency Crimes and Protection
SEC. 371. 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; and
(3) to emphasize the seriousness of the act of bulk cash
smuggling.
(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. 5332. 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
5331, as added by this Act, the following new item: