[Congressional Record: October 16, 2001 (House)]
[Page H6902-H6915]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr16oc01-119]
MAKING IN ORDER ON WEDNESDAY, OCTOBER 17, 2001, MOTION TO SUSPEND THE
RULES AND PASS THE BILL H.R. 3004, FINANCIAL ANTI-TERRORISM ACT OF
2001, WITH AMENDMENT
Mr. OXLEY (during the Special Order of Mr. McInnis). Mr. Speaker, I
ask unanimous consent that it be in order at any time on the
legislative day of Wednesday, October 17, 2001, for the Speaker to
entertain a motion that the House suspend the rules and pass the bill
H.R. 3004 with the amendment that I have placed at the desk and that
the amendment I have placed at the desk be considered as read.
Amendment Offered by Mr. Oxley
The SPEAKER pro tempore (Mr. Simmons). The Clerk will designate the
amendment.
The text of the amendment is as follows:
Amendment offered by Mr. Oxley:
H.R. 3004
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Financial
Anti-Terrorism Act of 2001''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--STRENGTHENING LAW ENFORCEMENT
Sec. 101. Bulk cash smuggling into or out of the United States.
Sec. 102. Forfeiture in currency reporting cases.
Sec. 103. Illegal money transmitting businesses.
Sec. 104. Long-arm jurisdiction over foreign money launderers.
Sec. 105. Laundering money through a foreign bank.
Sec. 106. Specified unlawful activity for money laundering.
Sec. 107. Laundering the proceeds of terrorism.
Sec. 108. Proceeds of foreign crimes.
Sec. 109. Penalties for violations of geographic targeting orders and
certain record keeping requirements.
Sec. 110. Exclusion of aliens involved in money laundering.
Sec. 111. Standing to contest forfeiture of funds deposited into
foreign bank that has a correspondent account in the
United States.
Sec. 112. Subpoenas for records regarding funds in correspondent bank
accounts.
Sec. 113. Authority to order convicted criminal to return property
located abroad.
Sec. 114. Corporation represented by a fugitive.
Sec. 115. Enforcement of foreign judgments.
Sec. 116. Reporting provisions and anti-terrorist activities of United
States intelligence agencies.
[[Page H6903]]
Sec. 117. Financial Crimes Enforcement Network.
Sec. 118. Prohibition on false statements to financial institutions
concerning the identity of a customer.
Sec. 119. Verification of identification.
Sec. 120. Consideration of anti-money laundering record.
Sec. 121. Reporting of suspicious activities by informal underground
banking systems, such as hawalas.
Sec. 122. Uniform protection authority for Federal reserve facilities.
Sec. 123. Reports relating to coins and currency received in
nonfinancial trade or business.
TITLE II--PUBLIC-PRIVATE COOPERATION
Sec. 201. Establishment of highly secure network.
Sec. 202. Report on improvements in data access and other issues.
Sec. 203. Reports to the financial services industry on suspicious
financial activities.
Sec. 204. Efficient use of currency transaction report system.
Sec. 205. Public-private task force on terrorist financing issues.
Sec. 206. Suspicious activity reporting requirements.
Sec. 207. Amendments relating to reporting of suspicious activities.
Sec. 208. Authorization to include suspicions of illegal activity in
written employment references.
Sec. 209. International cooperation on identification of originators of
wire transfers.
Sec. 210. Check truncation study.
TITLE III--COMBATTING INTERNATIONAL MONEY LAUNDERING
Sec. 301. Special measures for jurisdictions, financial institutions,
or international transactions of primary money laundering
concern.
Sec. 302. Special due diligence for correspondent accounts and private
banking accounts.
Sec. 303. Prohibition on United States correspondent accounts with
foreign shell banks.
Sec. 304. Anti-money laundering programs.
Sec. 305. Concentration accounts at financial institutions.
Sec. 306. International cooperation in investigations of money
laundering, financial crimes, and the finances of
terrorist groups.
TITLE IV--CURRENCY PROTECTION
Sec. 401. Counterfeiting domestic currency and obligations.
Sec. 402. Counterfeiting foreign currency and obligations.
Sec. 403. Production of documents.
Sec. 404. Reimbursement.
TITLE I--STRENGTHENING LAW ENFORCEMENT
SEC. 101. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED
STATES.
(a) Findings.--The Congress finds the following:
(1) Effective enforcement of the currency reporting
requirements of subchapter II of chapter 53 of title 31,
United States Code, and the regulations prescribed under such
subchapter, has forced drug dealers and other criminals
engaged in cash-based businesses to avoid using traditional
financial institutions.
(2) In their effort to avoid using traditional financial
institutions, drug dealers and other criminals are forced to
move large quantities of currency in bulk form to and through
the airports, border crossings, and other ports of entry
where the currency can be smuggled out of the United States
and placed in a foreign financial institution or sold on the
black market.
(3) The transportation and smuggling of cash in bulk form
may now be the most common form of money laundering, and the
movement of large sums of cash is one of the most reliable
warning signs of drug trafficking, terrorism, money
laundering, racketeering, tax evasion and similar crimes.
(4) The intentional transportation into or out of the
United States of large amounts of currency or monetary
instruments, in a manner designed to circumvent the mandatory
reporting provisions of subchapter II of chapter 53 of title
31, United States Code,, is the equivalent of, and creates
the same harm as, the smuggling of goods.
(5) The arrest and prosecution of bulk cash smugglers are
important parts of law enforcement's effort to stop the
laundering of criminal proceeds, but the couriers who attempt
to smuggle the cash out of the United States are typically
low-level employees of large criminal organizations, and thus
are easily replaced. Accordingly, only the confiscation of
the smuggled bulk cash can effectively break the cycle of
criminal activity of which the laundering of the bulk cash is
a critical part.
(6) The current penalties for violations of the currency
reporting requirements are insufficient to provide a
deterrent to the laundering of criminal proceeds. In
particular, in cases where the only criminal violation under
current law is a reporting offense, the law does not
adequately provide for the confiscation of smuggled currency.
In contrast, if the smuggling of bulk cash were itself an
offense, the cash could be confiscated as the corpus delicti
of the smuggling offense.
(b) Purposes.--The purposes of this section are--
(1) to make the act of smuggling bulk cash itself a
criminal offense;
(2) to authorize forfeiture of any cash or instruments of
the smuggling offense;
(3) to emphasize the seriousness of the act of bulk cash
smuggling; and
(4) to prescribe guidelines for determining the amount of
property subject to such forfeiture in various situations.
(c) Enactment of Bulk Cash Smuggling Offense.--Subchapter
II of chapter 53 of title 31, United States Code, is amended
by adding at the end the following:
``Sec. 5331. Bulk cash smuggling into or out of the United
States
``(a) Criminal Offense.--
``(1) In general.--Whoever, with the intent to evade a
currency reporting requirement under section 5316, knowingly
conceals more than $10,000 in currency or other monetary
instruments on the person of such individual or in any
conveyance, article of luggage, merchandise, or other
container, and transports or transfers or attempts to
transport or transfer such currency or monetary instruments
from a place within the United States to a place outside of
the United States, or from a place outside the United States
to a place within the United States, shall be guilty of a
currency smuggling offense and subject to punishment pursuant
to subsection (b).
``(2) Concealment on person.--For purposes of this section,
the concealment of currency on the person of any individual
includes concealment in any article of clothing worn by the
individual or in any luggage, backpack, or other container
worn or carried by such individual.
``(b) Penalty.--
``(1) Term of imprisonment.--A person convicted of a
currency smuggling offense under subsection (a), or a
conspiracy to commit such offense, shall be imprisoned for
not more than 5 years.
``(2) Forfeiture.--In addition, the court, in imposing
sentence under paragraph (1), shall order that the defendant
forfeit to the United States, any property, real or
personal, involved in the offense, and any property
traceable to such property, subject to subsection (d) of
this section.
``(3) Procedure.--The seizure, restraint, and forfeiture of
property under this section shall be governed by section 413
of the Controlled Substances Act.
``(4) Personal money judgment.--If the property subject to
forfeiture under paragraph (2) is unavailable, and the
defendant has insufficient substitute property that may be
forfeited pursuant to section 413(p) of the Controlled
Substances Act, the court shall enter a personal money
judgment against the defendant for the amount that would be
subject to forfeiture.
``(c) Civil Forfeiture.--
``(1) In general.--Any property involved in a violation of
subsection (a), or a conspiracy to commit such violation, and
any property traceable to such violation or conspiracy, may
be seized and, subject to subsection (d) of this section,
forfeited to the United States.
``(2) Procedure.--The seizure and forfeiture shall be
governed by the procedures governing civil forfeitures in
money laundering cases pursuant to section 981(a)(1)(A) of
title 18, United States Code.
``(3) Treatment of certain property as involved in the
offense.--For purposes of this subsection and subsection (b),
any currency or other monetary instrument that is concealed
or intended to be concealed in violation of subsection (a) or
a conspiracy to commit such violation, any article,
container, or conveyance used, or intended to be used, to
conceal or transport the currency or other monetary
instrument, and any other property used, or intended to be
used, to facilitate the offense, shall be considered property
involved in the offense.''.
(c) Clerical Amendment.--The table of sections for
subchapter II of chapter 53 of title 31, United States Code,
is amended by inserting after the item relating to section
5330, the following new item:
``5331. Bulk cash smuggling into or out of the United States.''.
SEC. 102. FORFEITURE IN CURRENCY REPORTING CASES.
(a) In General.--Subsection (c) of section 5317 of title
31, United States Code, is amended to read as follows:
``(c) Forfeiture.--
``(1) In general.--The court in imposing sentence for any
violation of section 5313, 5316, or 5324 of this title, or
any conspiracy to commit such violation, shall order the
defendant to forfeit all property, real or personal, involved
in the offense and any property traceable thereto.
``(2) Procedure.--Forfeitures under this subsection shall
be governed by the procedures established in section 413 of
the Controlled Substances Act and the guidelines established
in paragraph (4).
``(3) Civil forfeiture.--Any property involved in a
violation of section 5313, 5316, or 5324 of this title, or
any conspiracy to commit any such violation, and any property
traceable to any such violation or conspiracy, may be seized
and, subject to paragraph (4), forfeited to the United States
in accordance with the procedures governing civil forfeitures
in money laundering cases pursuant to section 981(a)(1)(A) of
title 18, United States Code.''.
(b) Conforming Amendments.--
[[Page H6904]]
(1) Section 981(a)(1)(A) of title 18, United States Code,
is amended by striking ``of section 5313(a) or 5324(a) of
title 31, or''.
(2) Section 982(a)(1) of title 18, United States Code, is
amended by striking ``of section 5313(a), 5316, or 5324 of
title 31, or''.
SEC. 103. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) Scienter Requirement for Section 1960 Violation.--
Section 1960 of title 18, United States Code, is amended to
read as follows:
``Sec. 1960. Prohibition of unlicensed money transmitting
businesses
``(a) Whoever knowingly conducts, controls, manages,
supervises, directs, or owns all or part of an unlicensed
money transmitting business, shall be fined in accordance
with this title or imprisoned not more than 5 years, or both.
``(b) As used in this section--
``(1) the term `unlicensed money transmitting business'
means a money transmitting business which affects interstate
or foreign commerce in any manner or degree and--
``(A) is operated without an appropriate money transmitting
license in a State where such operation is punishable as a
misdemeanor or a felony under State law, whether or not the
defendant knew that the operation was required to be licensed
or that the operation was so punishable;
``(B) fails to comply with the money transmitting business
registration requirements under section 5330 of title 31,
United States Code, or regulations prescribed under such
section; or
``(C) otherwise involves the transportation or transmission
of funds that are known to the defendant to have been derived
from a criminal offense or are intended to be used to be used
to promote or support unlawful activity;
``(2) the term `money transmitting' includes transferring
funds on behalf of the public by any and all means including
but not limited to transfers within this country or to
locations abroad by wire, check, draft, facsimile, or
courier; and
``(3) the term `State' means any State of the United
States, the District of Columbia, the Northern Mariana
Islands, and any commonwealth, territory, or possession of
the United States.''.
(b) Seizure of Illegally Transmitted Funds.--Section
981(a)(1)(A) of title 18, United States Code, is amended by
striking ``or 1957'' and inserting ``, 1957 or 1960''.
(c) Clerical Amendment.--The table of sections for chapter
95 of title 18, United States Code, is amended in the item
relating to section 1960 by striking ``illegal'' and
inserting ``unlicensed''.
SEC. 104. LONG-ARM JURISDICTION OVER FOREIGN MONEY
LAUNDERERS.
Section 1956(b) of title 18, United States Code, is
amended--
(1) by striking ``(b) Whoever'' and inserting ``(b)(1)
Whoever'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) by striking ``subsection (a)(1) or (a)(3),'' and
inserting ``subsection (a)(1) or (a)(2) or section 1957,'';
and
(4) by adding at the end the following new paragraphs:
``(2) For purposes of adjudicating an action filed or
enforcing a penalty ordered under this section, the district
courts shall have jurisdiction over any foreign person,
including any financial institution authorized under the laws
of a foreign country, against whom the action is brought,
if--
``(A) service of process upon such foreign person is made
under the Federal Rules of Civil Procedure or the laws of the
country where the foreign person is found; and
``(B) the foreign person--
``(i) commits an offense under subsection (a) involving a
financial transaction that occurs in whole or in part in the
United States;
``(ii) converts to such person's own use property in which
the United States has an ownership interest by virtue of the
entry of an order of forfeiture by a court of the United
States; or
``(iii) is a financial institution that maintains a
correspondent bank account at a financial institution in the
United States.
``(3) The court may issue a pretrial restraining order or
take any other action necessary to ensure that any bank
account or other property held by the defendant in the United
States is available to satisfy a judgment under this
section.''.
SEC. 105. LAUNDERING MONEY THROUGH A FOREIGN BANK.
Section 1956(c)(6) of title 18, United States Code, is
amended to read as follows:
``(6) the term `financial institution' includes any
financial institution described in section 5312(a)(2) of
title 31, United States Code, or the regulations promulgated
thereunder, as well as any foreign bank, as defined in
paragraph (7) of section 1(b) of the International Banking
Act of 1978 (12 U.S.C. 3101(7));''.
SEC. 106. SPECIFIED UNLAWFUL ACTIVITY FOR MONEY LAUNDERING.
(a) In General.--Section 1956(c)(7) of title 18, United
States Code, is amended--
(1) in subparagraph (B)--
(A) by striking clause (ii) and inserting the following new
clause:
``(ii) any act or acts constituting a crime of violence, as
defined in section 16 of this title;''; and
(B) by inserting after clause (iii) the following new
clauses:
``(iv) bribery of a public official, or the
misappropriation, theft, or embezzlement of public funds by
or for the benefit of a public official;
``(v) smuggling or export control violations involving
munitions listed in the United States Munitions List or
technologies with military applications as defined in the
Commerce Control List of the Export Administration
Regulations; or
``(vi) an offense with respect to which the United States
would be obligated by a bilateral treaty either to extradite
the alleged offender or to submit the case for prosecution,
if the offender were found within the territory of the United
States;''; and
(2) in subparagraph (D)--
(A) by inserting ``section 541 (relating to goods falsely
classified),'' before ``section 542'';
(B) by inserting ``section 922(1) (relating to the unlawful
importation of firearms), section 924(n) (relating to
firearms trafficking),'' before ``section 956'';
(C) by inserting ``section 1030 (relating to computer fraud
and abuse),'' before ``1032''; and
(D) by inserting ``any felony violation of the Foreign
Agents Registration Act of 1938, as amended,'' before ``or
any felony violation of the Foreign Corrupt Practices Act''.
(b) Rule of Construction.--None of the changes or
amendments made by the Financial Anti-Terrorism Act of 2001
shall expand the jurisdiction of any Federal or State court
over any civil action or claim for monetary damages for the
nonpayment of taxes or duties under the revenue laws of a
foreign state, or any political subdivision thereof, except
as such actions or claims are authorized by United States
treaty that provides the United States and its political
subdivisions with reciprocal rights to pursue such actions or
claims in the courts of the foreign state and its political
subdivisions.
SEC. 107. LAUNDERING THE PROCEEDS OF TERRORISM.
Section 1956(c)(7)(D) of title 18, United States Code, is
amended by inserting ``or 2339B'' after ``2339A''.
SEC. 108. PROCEEDS OF FOREIGN CRIMES.
Section 981(a)(1)(B) of title 18, United States Code, is
amended to read as follows:
``(B) Any property, real or personal, within the
jurisdiction of the United States, constituting, derived
from, or traceable to, any proceeds obtained directly or
indirectly from an offense against a foreign nation, or any
property used to facilitate such offense, if--
``(i) the offense involves the manufacture, importation,
sale, or distribution of a controlled substance (as such term
is defined for the purposes of the Controlled Substances
Act), or any other conduct described in section
1956(c)(7)(B),
``(ii) the offense would be punishable within the
jurisdiction of the foreign nation by death or imprisonment
for a term exceeding one year, and
``(iii) the offense would be punishable under the laws of
the United States by imprisonment for a term exceeding one
year if the act or activity constituting the offense had
occurred within the jurisdiction of the United States.''.
SEC. 109. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING
ORDERS AND CERTAIN RECORD KEEPING REQUIREMENTS.
(a) Civil Penalty for Violation of Targeting Order.--
Section 5321(a)(1) of title 31, United States Code, is
amended--
(1) by inserting ``or order issued'' after ``subchapter or
a regulation prescribed''; and
(2) by inserting ``, or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508,'' after ``sections
5314 and 5315)''.
(b) Criminal Penalties for Violation of Targeting Order.--
Section 5322 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``or order issued'' after ``willfully
violating this subchapter or a regulation prescribed''; and
(B) by inserting ``, or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508,'' after ``under
section 5315 or 5324)'';
(2) in subsection (b)--
(A) by inserting ``or order issued'' after ``willfully
violating this subchapter or a regulation prescribed''; and
(B) by inserting ``or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508,'' after ``under
section 5315 or 5324),'';
(c) Structuring Transactions To Evade Targeting Order or
Certain Record Keeping Requirements.--Section 5324(a) of
title 31, United States Code, is amended--
(1) by inserting a comma after ``shall'';
(2) by striking ``section--'' and inserting ``section, the
reporting requirements imposed by any order issued under
section 5326, or the record keeping requirements imposed by
any regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-508--
''; and
(3) in paragraphs (1) and (2), by inserting ``, to file a
report required by any order issued under section 5326, or to
maintain a record required pursuant to any regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508'' after ``regulation
prescribed under any such section'' each place that term
appears.
[[Page H6905]]
(d) Increase in Civil Penalties for Violation of Certain
Record Keeping Requirements.--
(1) Federal deposit insurance act.--Section 21(j)(1) of the
Federal Deposit Insurance Act (12 U.S.C. 1829b(j)(1)) is
amended by striking ``$10,000'' and inserting ``the greater
of--
``(A) the amount (not to exceed $100,000) involved in the
transaction (if any) with respect to which the violation
occurred; or
``(B) $25,000''.
(2) Public law 91-508.--Section 125(a) of Public Law 91-508
(12 U.S.C. 1955(a)) is amended by striking ``$10,000'' and
inserting ``the greater of--
``(1) the amount (not to exceed $100,000) involved in the
transaction (if any) with respect to which the violation
occurred; or
``(2) $25,000''.
(e) Criminal Penalties for Violation of Certain Record
Keeping Requirements.--
(1) Section 126.--Section 126 of Public Law 91-508 (12
U.S.C. 1956) is amended to read as follows:
``SEC. 126. CRIMINAL PENALTY.
``A person that willfully violates this chapter, section 21
of the Federal Deposit Insurance Act, or a regulation
prescribed under this chapter or that section 21, shall be
fined not more than $250,000, or imprisoned for not more than
5 years, or both.''.
(2) Section 127.--Section 127 of Public Law 91-508 (12
U.S.C. 1957) is amended to read as follows:
``SEC. 127. ADDITIONAL CRIMINAL PENALTY IN CERTAIN CASES.
``A person that willfully violates this chapter, section 21
of the Federal Deposit Insurance Act, or a regulation
prescribed under this chapter or that section 21, while
violating another law of the United States or as part of a
pattern of any illegal activity involving more than $100,000
in a 12-month period, shall be fined not more than $500,000,
imprisoned for not more than 10 years, or both.''.
SEC. 110. EXCLUSION OF ALIENS INVOLVED IN MONEY LAUNDERING.
(a) In General.--Section 212 of the Immigration and
Nationality Act, as amended (8 U.S.C. 1182), is amended in
subsection (a)(2)--
(1) by redesignating subparagraphs (D), (E), (F), (G), and
(H) as subparagraphs (E), (F), (G), (H), and (I),
respectively; and
(2) by inserting after subparagraph (C) the following new
subparagraph (D):
``(D) Money laundering activities.--
``(i) In general.--Any alien who the consular officer or
the Attorney General knows or has reason to believe is or has
been engaged in activities which if engaged in within the
United States would constitute a violation of the money
laundering provisions section 1956, 1957, or 1960 of title
18, United States Code, or has knowingly assisted, abetted,
or conspired or colluded with others in any such illicit
activity is inadmissible.
``(ii) Related individuals.--Any alien who the consular
officer or the Attorney General knows or has reason to
believe is the spouse, son, or daughter of an alien
inadmissible under clause (i), has, within the previous 5
years, obtained any financial or other benefit from such
illicit activity of that alien, and knew or reasonably should
have known that the financial or other benefit was the
product of such illicit activity, is inadmissible, except
that the Attorney General may, in the full discretion of the
Attorney General, waive the exclusion of the spouse, son, or
daughter of an alien under this clause if the Attorney
General determines that exceptional circumstances exist that
justify such waiver.''.
(b) Conforming amendment.--Section 212(h)(1)(A)(i) of the
Immigration and Nationality Act, as amended (8 U.S.C. 1182),
is amended by striking ``(D)(i) or (D)(ii)'' and inserting
``(E)(i) or (E)(ii)''.
SEC. 111. STANDING TO CONTEST FORFEITURE OF FUNDS DEPOSITED
INTO FOREIGN BANK THAT HAS A CORRESPONDENT
ACCOUNT IN THE UNITED STATES.
Section 981 of title 18, United States Code, is amended by
adding at the end the following new subsection:
``(k) Correspondent Bank Accounts.--
``(1) Treatment of accounts of correspondent bank in
domestic financial institutions.--
``(A) In general.--For the purpose of a forfeiture under
this section or under the Controlled Substances Act, if funds
are deposited into a dollar-denominated bank account in a
foreign financial institution, and that foreign financial
institution has a correspondent account with a financial
institution in the United States, the funds deposited into
the foreign financial institution (the respondent bank) shall
be deemed to have been deposited into the correspondent
account in the United States, and any restraining order,
seizure warrant, or arrest warrant in rem regarding such
funds may be served on the correspondent bank, and funds in
the correspondent account up to the value of the funds
deposited into the dollar-denominated account in the foreign
financial institution may be seized, arrested or restrained.
``(B) Authority to suspend.--The Attorney General, in
consultation with the Secretary, may suspend or terminate a
forfeiture under this section if the Attorney General
determines that a conflict of law exists between the laws of
the jurisdiction in which the foreign bank is located and the
laws of the United States with respect to liabilities arising
from the restraint, seizure, or arrest of such funds, and
that such suspension or termination would be in the interest
of justice and would not harm the national interests of the
United States.
``(2) No requirement for government to trace funds.--If a
forfeiture action is brought against funds that are
restrained, seized, or arrested under paragraph (1), the
Government shall not be required to establish that such funds
are directly traceable to the funds that were deposited into
the respondent bank, nor shall it be necessary for the
Government to rely on the application of Section 984 of this
title.
``(3) Claims brought by owner of the funds.--If a
forfeiture action is instituted against funds seized,
arrested, or restrained under paragraph (1), the owner of the
funds may contest the forfeiture by filing a claim pursuant
to section 983.
``(4) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Correspondent account.--The term `correspondent
account' has the meaning given to the term `interbank
account' in section 984(c)(2)(B).
``(B) Owner.--
``(i) In general.--Except as provided in clause (ii), the
term `owner'--
``(I) means the person who was the owner, as that term is
defined in section 983(d)(6), of the funds that were
deposited into the foreign bank at the time such funds were
deposited; and
``(II) does not include either the foreign bank or any
financial institution acting as an intermediary in the
transfer of the funds into the interbank account.
``(ii) Exception.--The foreign bank may be considered the
`owner' of the funds (and no other person shall qualify as
the owner of such funds) only if--
``(I) the basis for the forfeiture action is wrongdoing
committed by the foreign bank; or
``(II) the foreign bank establishes, by a preponderance of
the evidence, that prior to the restraint, seizure, or arrest
of the funds, the foreign bank had discharged all or part of
its obligation to the prior owner of the funds, in which case
the foreign bank shall be deemed the owner of the funds to
the extent of such discharged obligation.''.
SEC. 112. SUBPOENAS FOR RECORDS REGARDING FUNDS IN
CORRESPONDENT BANK ACCOUNTS.
(a) In General.--Subchapter II of chapter 53 of title 31,
United States Code, is amended by inserting after section
5331 (as added by section 101) the following new section:
``Sec. 5332. Subpoenas for records
``(a) Designation By Foreign Financial Institution of
Agent.--Any foreign financial institution that has a
correspondent bank account at a financial institution in the
United States shall designate a person residing in the United
States as a person authorized to accept a subpoena for bank
records or other legal process served on the foreign
financial institution.
``(b) Maintenance of Records By Domestic Financial
Institution.--
``(1) In general.--Any domestic financial institution that
maintains a correspondent bank account for a foreign
financial institution shall maintain records regarding the
names and addresses of the owners of the foreign financial
institution, and the name and address of the person who may
be served with a subpoena for records regarding any funds
transferred to or from the correspondent account.
``(2) Provision to law enforcement agency.--A domestic
financial institution shall provide names and addresses
maintained under paragraph (1) to a Government authority (as
defined in section 1101(3) of the Right to Financial Privacy
Act of 1978) within 7 days of the receipt of a request, in
writing, for such records.
``(c) Administrative Subpoena.--
``(1) In general.--The Attorney General and the Secretary
of the Treasury may each issue an administrative subpoena for
records relating to the deposit of any funds into a dollar-
denominated account in a foreign financial institution that
maintains a correspondent account at a domestic financial
institution.
``(2) Manner of issuance.--Any subpoena issued by the
Attorney General or the Secretary of the Treasury under
paragraph (1) shall be issued in the manner described in
section 3486 of title 18, and may be served on the
representative designated by the foreign financial
institution pursuant to subsection (a) to accept legal
process in the United States, or in a foreign country
pursuant to any mutual legal assistance treaty, multilateral
agreement, or other request for international law enforcement
assistance.
``(d) Correspondent Account Defined.--For purposes of this
section, the term `correspondent account' has the same
meaning as the term `interbank account' as such term is
defined in section 984(c)(2)(B) of title 18, United States
Code.''.
(b) Clerical amendments.--The table of sections for
subchapter II of chapter 53 of title 31, United States Code,
is amended by inserting after the item relating to section
5331 (as added by section 101) the following new item:
``5332. Subpoenas for records.''.
(c) Effective Date.--Section 5332(a) of title 31, United
States Code, (as added by subsection (a) of this section
shall apply after the end of the 30-day period beginning on
the date of the enactment of this Act.
[[Page H6906]]
(d) Requests for Records.--Section 3486(a)(1)(A)(i) of
title 18, United States Code, is amended by striking ``; or
(II) a Federal offense involving the sexual exploitation or
abuse of children,'' and inserting ``, (II) a Federal offense
involving the sexual exploitation or abuse of children, or
(III) a money laundering offense in violation of section
1956, 1957 or 1960 of this title,''.
SEC. 113. AUTHORITY TO ORDER CONVICTED CRIMINAL TO RETURN
PROPERTY LOCATED ABROAD.
(a) Forfeiture of Substitute Property.--Section 413(p) of
the Controlled Substances Act (21 U.S.C. 853) is amended to
read as follows:
``(p) Forfeiture of Substitute Property.--
``(1) In general.--Paragraph (2) of this subsection shall
apply, if any property described in subsection (a), as a
result of any act or omission of the defendant--
``(A) cannot be located upon the exercise of due diligence;
``(B) has been transferred or sold to, or deposited with, a
third party;
``(C) has been placed beyond the jurisdiction of the court;
``(D) has been substantially diminished in value; or
``(E) has been commingled with other property which cannot
be divided without difficulty.
``(2) Substitute property.--In any case described in any of
subparagraphs (A) through (E) of paragraph (1), the court
shall order the forfeiture of any other property of the
defendant, up to the value of any property described in
subparagraphs (A) through (E) of paragraph (1), as
applicable.
``(3) Return of property to jurisdiction.--In the case of
property described in paragraph (1)(C), the court may, in
addition to any other action authorized by this subsection,
order the defendant to return the property to the
jurisdiction of the court so that the property may be seized
and forfeited.''.
(b) Protective Orders.--Section 413(e) of the Controlled
Substances Act (21 U.S.C. 853(e)) is amended by adding at the
end the following:
``(4) Order to repatriate and deposit.--
``(A) In general.--Pursuant to its authority to enter a
pretrial restraining order under this section, the court may
order a defendant to repatriate any property that may be
seized and forfeited, and to deposit that property pending
trial in the registry of the court, or with the United States
Marshals Service or the Secretary of the Treasury, in an
interest-bearing account, if appropriate.
``(B) Failure to comply.--Failure to comply with an order
under this subsection, or an order to repatriate property
under subsection (p), shall be punishable as a civil or
criminal contempt of court, and may also result in an
enhancement of the sentence of the defendant under the
obstruction of justice provision of the Federal Sentencing
Guidelines.''.
SEC. 114. CORPORATION REPRESENTED BY A FUGITIVE.
Section 2466 of title 28, United States Code, is amended by
designating the present matter as subsection (a), and adding
at the end the following:
``(b) Subsection (a) may be applied to a claim filed by a
corporation if any majority shareholder, or individual filing
the claim on behalf of the corporation is a person to whom
subsection (a) applies.''.
SEC. 115. ENFORCEMENT OF FOREIGN JUDGMENTS.
Section 2467 of title 28, United States Code, is amended--
(1) in subsection (d), by inserting after paragraph (2) the
following new paragraph:
``(3) Preservation of property.--To preserve the
availability of property subject to a foreign forfeiture or
confiscation judgment, the Government may apply for, and the
court may issue, a restraining order pursuant to section
983(j) of title 18, United States Code, at any time before or
after an application is filed pursuant to subsection (c)(1).
The court, in issuing the restraining order--
``(A) may rely on information set forth in an affidavit
describing the nature of the proceeding or investigation
underway in the foreign country, and setting forth a
reasonable basis to believe that the property to be
restrained will be named in a judgment of forfeiture at the
conclusion of such proceeding; or
``(B) may register and enforce a restraining order that has
been issued by a court of competent jurisdiction in the
foreign country and certified by the Attorney General
pursuant to subsection (b)(2).
No person may object to the restraining order on any ground
that is the subject of parallel litigation involving the same
property that is pending in a foreign court.'';
(2) in subsection (b)(1)(C), by striking ``establishing
that the defendant received notice of the proceedings in
sufficient time to enable the defendant'' and inserting
``establishing that the foreign nation took steps, in
accordance with the principles of due process, to give notice
of the proceedings to all persons with an interest in the
property in sufficient time to enable such persons'';
(3) in subsection (d)(1)(D), by striking ``the defendant in
the proceedings in the foreign court did not receive notice''
and inserting ``the foreign nation did not take steps, in
accordance with the principles of due process, to give notice
of the proceedings to a person with an interest in the
property''; and
(4) in subsection (a)(2)(A), by inserting ``, any violation
of foreign law that would constitute a violation of an
offense for which property could be forfeited under Federal
law if the offense were committed in the United States''
after ``United Nations Convention''.
SEC. 116. REPORTING PROVISIONS AND ANTI-TERRORIST ACTIVITIES
OF UNITED STATES INTELLIGENCE AGENCIES.
(a) Amendment Relating to the Purposes of Chapter 53 of
Title 31, United States Code.--Section 5311 of title 31,
United States Code, is amended by inserting before the period
at the end the following: ``, or in the conduct of
intelligence or counterintelligence activities, including
analysis, to protect against international terrorism''.
(b) Amendment Relating to Reporting of Suspicious
Activities.--Section 5318(g)(4)(B) of title 31, United States
Code, is amended by striking ``or supervisory agency'' and
inserting ``, supervisory agency, or United States
intelligence agency for use in the conduct of intelligence or
counterintelligence activities, including analysis, to
protect against international terrorism''.
(c) Amendment Relating to Availability of Reports.--Section
5319 of title 31, United States Code, is amended to read as
follows:
``Sec. 5319. Availability of reports
``The Secretary of the Treasury shall make information in a
report filed under this subchapter available to an agency,
including any State financial institutions supervisory
agency, United States intelligence agency or self-regulatory
organization registered with the Securities and Exchange
Commission or the Commodity Futures Trading Commission, upon
request of the head of the agency or organization. The report
shall be available for a purpose that is consistent with this
subchapter. The Secretary may only require reports on the use
of such information by any State financial institutions
supervisory agency for other than supervisory purposes or by
United States intelligence agencies. However, a report and
records of reports are exempt from disclosure under section
552 of title 5.''.
(d) Amendment Relating to the Retention of Records by
Insured Depository Institutions.--Section 21(a) of the
Federal Deposit Insurance Act (12 U.S.C. 1829b(a)) is
amended--
(1) in paragraph (1), by inserting ``, or in the conduct of
intelligence or counterintelligence activities, including
analysis, to protect against international terrorism'' after
``proceedings''; and
(2) in paragraph (2), by inserting ``, or in the conduct of
intelligence or counterintelligence activities, including
analysis, to protect against international terrorism'' before
the period at the end.
(e) Amendment Relating to the Retention of Records by
Uninsured Institutions.--Section 123(a) of Public Law 91-508
(12 U.S.C. 1953(a)) is amended by inserting ``, or in the
conduct of intelligence or counterintelligence activities,
including analysis, to protect against international
terrorism'' after ``proceedings''.
(f) Amendments to the Right to Financial Privacy Act.--The
Right to Financial Privacy Act of 1978 is amended--
(1) in section 1112(a) (12 U.S.C. 3412(a)), by inserting
``, or intelligence or counterintelligence activity,
investigation or analysis related to international
terrorism'' after ``legitimate law enforcement inquiry'';
(2) in section 1114(a)(1) (12 U.S.C. 3414(a)(1))--
(A) in subparagraph (A), by striking ``or'' at the end;
(B) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(C) a Government authority authorized to conduct
investigations of, or intelligence or counterintelligence
analyses related to, international terrorism for the purpose
of conducting such investigations or analyses.''; and
(3) in section 1120(a)(2) (12 U.S.C. 3420(a)(2)), by
inserting ``, or for a purpose authorized by section
1112(a)'' before the semicolon at the end.
(g) Amendment to the Fair Credit Reporting Act.--
(1) In general.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended--
(A) by redesignating the second of the 2 sections
designated as section 624 (15 U.S.C. 1681u) (relating to
disclosure to FBI for counterintelligence purposes) as
section 625; and
(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.
[[Page H6907]]
``(c) Confidentiality.--No consumer reporting agency, or
officer, employee, or agent of such consumer reporting
agency, shall disclose to any person, or specify in any
consumer report, that a government agency has sought or
obtained access to information under subsection (a).
``(d) Rule of Construction.--Nothing in section 625 shall
be construed to limit the authority of the Director of the
Federal Bureau of Investigation under this section.
``(e) Safe Harbor.--Notwithstanding any other provision of
this subchapter, any consumer reporting agency or agent or
employee thereof making disclosure of consumer reports or
other information pursuant to this section in good-faith
reliance upon a certification of a governmental agency
pursuant to the provisions of this section shall not be
liable to any person for such disclosure under this
subchapter, the constitution of any State, or any law or
regulation of any State or any political subdivision of any
State.''.
(2) Clerical amendments.--The table of sections for the
Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is
amended--
(A) by redesignating the second of the 2 items designated
as section 624 as section 625; and
(B) by inserting after the item relating to section 625 (as
so redesignated) the following new item:
``626. Disclosures to governmental agencies for counterterrorism
purposes.''.
(h) Application of Amendments.--The amendments made by this
section shall apply with respect to reports filed or records
maintained on, before, or after the date of the enactment of
this Act.
SEC. 117. FINANCIAL CRIMES ENFORCEMENT NETWORK.
(a) In General.--Subchapter I of chapter 3 of title 31,
United States Code, is amended--
(1) by redesignating section 310 as section 311; and
(2) by inserting after section 309 the following new
section:
``Sec. 310. Financial Crimes Enforcement Network
``(a) In General.--The Financial Crimes Enforcement Network
established by order of the Secretary of the Treasury
(Treasury Order Numbered 105-08) on April 25, 1990, shall be
a bureau in the Department of the Treasury.
``(b) Director.--
``(1) Appointment.--The head of the Financial Crimes
Enforcement Network shall be the Director who shall be
appointed by the Secretary of the Treasury.
``(2) Duties and powers.--The duties and powers of the
Director are as follows:
``(A) Advise and make recommendations on matters relating
to financial intelligence, financial criminal activities, and
other financial activities to the Under Secretary for
Enforcement.
``(B) Maintain a government-wide data access service, with
access, in accordance with applicable legal requirements, to
the following:
``(i) Information collected by the Department of the
Treasury, including report information filed under
subchapters II and III of chapter 53 of this title (such as
reports on cash transactions, foreign financial agency
transactions and relationships, foreign currency
transactions, exporting and importing monetary instruments,
and suspicious activities), chapter 2 of title I of Public
Law 91-508, and section 21 of the Federal Deposit Insurance
Act.
``(ii) Information regarding national and international
currency flows.
``(iii) Other records and data maintained by other Federal,
State, local, and foreign agencies, including financial and
other records developed in specific cases.
``(iv) Other privately and publicly available information.
``(C) Analyze and disseminate the available data in
accordance with applicable legal requirements and policies
and guidelines established by the Secretary of the Treasury
and the Under Secretary for Enforcement to--
``(i) identify possible criminal activity to appropriate
Federal, State, local, and foreign law enforcement agencies;
``(ii) support ongoing criminal financial investigations
and prosecutions and related proceedings, including civil and
criminal tax and forfeiture proceedings;
``(iii) identify possible instances of noncompliance with
subchapters II and III of chapter 53 of this title, chapter 2
of title I of Public Law 91-508, and section 21 of the
Federal Deposit Insurance Act to Federal agencies with
statutory responsibility for enforcing compliance with such
provisions and other appropriate Federal regulatory agencies;
``(iv) evaluate and recommend possible uses of special
currency reporting requirements under section 5326;
``(v) determine emerging trends and methods in money
laundering and other financial crimes;
``(vi) support the conduct of intelligence or
counterintelligence activities, including analysis, to
protect against international terrorism; and
``(vii) support government initiatives against money
laundering.
``(D) Establish and maintain a financial crimes
communications center to furnish law enforcement authorities
with intelligence information related to emerging or ongoing
investigations and undercover operations.
``(E) Furnish research, analytical, and informational
services to financial institutions, appropriate Federal
regulatory agencies with regard to financial institutions,
and appropriate Federal, State, local, and foreign law
enforcement authorities, in accordance with policies and
guidelines established by the Secretary of the Treasury or
the Under Secretary of the Treasury for Enforcement, in the
interest of detection, prevention, and prosecution of
terrorism, organized crime, money laundering, and other
financial crimes.
``(F) Establish and maintain a special unit dedicated to
assisting Federal, State, local, and foreign law enforcement
and regulatory authorities in combatting the use of informal,
nonbank networks and payment and barter system mechanisms
that permit the transfer of funds or the equivalent of funds
without records and without compliance with criminal and tax
laws.
``(G) Provide computer and data support and data analysis
to the Secretary of the Treasury for tracking and controlling
foreign assets.
``(H) Coordinate with financial intelligence units in other
countries on anti-terrorism and anti-money laundering
initiatives, and similar efforts.
``(I) Administer the requirements of subchapters II and III
of chapter 53 of this title, chapter 2 of title I of Public
Law 91-508, and section 21 of the Federal Deposit Insurance
Act, to the extent delegated such authority by the Secretary
of the Treasury.
``(J) Such other duties and powers as the Secretary of the
Treasury may delegate or prescribe.
``(c) Requirements Relating to Maintenance and Use of Data
Banks.--The Secretary of the Treasury shall establish and
maintain operating procedures with respect to the government-
wide data access service and the financial crimes
communications center maintained by the Financial Crimes
Enforcement Network which provide--
``(1) for the coordinated and efficient transmittal of
information to, entry of information into, and withdrawal of
information from, the data maintenance system maintained by
the Network, including--
``(A) the submission of reports through the Internet or
other secure network, whenever possible;
``(B) the cataloguing of information in a manner that
facilitates rapid retrieval by law enforcement personnel of
meaningful data; and
``(C) a procedure that provides for a prompt initial review
of suspicious activity reports and other reports, or such
other means as the Secretary may provide, to identify
information that warrants immediate action; and
``(2) in accordance with section 552a of title 5 and the
Right to Financial Privacy Act of 1978, appropriate standards
and guidelines for determining--
``(A) who is to be given access to the information
maintained by the Network;
``(B) what limits are to be imposed on the use of such
information; and
``(C) how information about activities or relationships
which involve or are closely associated with the exercise of
constitutional rights is to be screened out of the data
maintenance system.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated for the Financial Crimes
Enforcement Network such sums as may be necessary for fiscal
years 2002, 2003, 2004, and 2005.''.
(b) Compliance With Existing Reports Compliance.--The
Secretary of the Treasury shall study methods for improving
compliance with the reporting requirements established in
section 5314 of title 31, United States Code, and shall
submit a report on such study to the Congress by the end of
the 6-month period beginning on the date of the enactment of
this Act and each 1-year period thereafter. The initial
report shall include historical data on compliance with such
reporting requirements.
(c) Clerical Amendment.--The table of sections for
subchapter I of chapter 3 of title 31, United States Code, is
amended--
(1) by redesignating the item relating to section 310 as
section 311; and
(2) by inserting after the item relating to section 309 the
following new item:
``310. Financial Crimes Enforcement Network''.
SEC. 118. PROHIBITION ON FALSE STATEMENTS TO FINANCIAL
INSTITUTIONS CONCERNING THE IDENTITY OF A
CUSTOMER.
(a) In General.--Chapter 47 of title 18, United States
Code, is amended by inserting after section 1007 the
following:
``Sec. 1008. False statements concerning the identity of
customers of financial institutions
``(a) In General.--Whoever, in connection with information
submitted to or requested by a financial institution,
knowingly in any manner--
``(1) falsifies, conceals, or covers up, or attempts to
falsify, conceal, or cover up, the identity of any person in
connection with any transaction with a financial institution;
``(2) makes, or attempts to make, any materially false,
fraudulent, or fictitious statement or representation of the
identity of any person in connection with a transaction with
a financial institution;
``(3) makes or uses, or attempts to make or use, any false
writing or document knowing the same to contain any
materially false, fictitious, or fraudulent statement or
entry concerning the identity of any person in connection
with a transaction with a financial institution; or
[[Page H6908]]
``(4) uses or presents, or attempts to use or present, in
connection with a transaction with a financial institution,
an identification document or means of identification the
possession of which is a violation of section 1028;
shall be fined under this title, imprisoned not more than 5
years, or both.
``(b) Definitions.--In this section, the following
definitions shall apply:
``(1) Financial institution.--The term `financial
institution'--
``(A) has the same meaning as in section 20; and
``(B) in addition, has the same meaning as in section
5312(a)(2) of title 31, United States Code.
``(2) Identification document.--The term `identification
document' has the same meaning as in section 1028(d).
``(3) Means of identification.--The term `means of
identification' has the same meaning as in section
1028(d).''.
(b) Technical and Conforming Amendments.--
(1) Title 18, united states code.--Section 1956(c)(7)(D) of
title 18, United States Code, is amended by striking ``1014
(relating to fraudulent loan'' and inserting ``section 1008
(relating to false statements concerning the identity of
customers of financial institutions), section 1014 (relating
to fraudulent loan''.
(2) Table of sections.--The table of sections for chapter
47 of title 18, United States Code, is amended by inserting
after the item relating to section 1007 the following:
``1008. False statements concerning the identity of customers of
financial institutions.''.
SEC. 119. VERIFICATION OF IDENTIFICATION.
(a) In General.--Section 5318 of title 31, United States
Code, is amended by adding at the end the following new
subsection:
``(i) Identification and Verification of Accountholders.--
``(1) In general.--Subject to the requirements of this
subsection, the Secretary of the Treasury shall prescribe
regulations setting forth the minimum standards regarding
customer identification that shall apply in connection with
the opening of an account at a financial institution.
``(2) Minimum requirements.--The regulations shall, at a
minimum, require financial institutions to implement
procedures for--
``(A) verifying the identity of any person seeking to open
an account to the extent reasonable and practicable;
``(B) maintaining records of the information used to verify
a person's identity, including name, address, and other
identifying information;
``(C) consulting lists of known or suspected terrorists or
terrorist organizations provided to the financial institution
by any government agency to determine whether a person
seeking to open an account appears on any such list.
``(3) Factors to be considered.--In prescribing regulations
under this subsection, the Secretary shall take into
consideration the various types of accounts maintained by
various types of financial institutions, the various methods
of opening accounts, and the various types of identifying
information available.
``(4) Certain financial institutions.--In the case of any
financial institution the business of which is engaging in
financial activities described in section 4(k) of the Bank
Holding Company Act of 1956 (including financial activities
subject to the jurisdiction of the Commodity Futures Trading
Commission), the regulations prescribed by the Secretary
under paragraph (1) shall be prescribed jointly with each
Federal functional regulator (as defined in section 509 of
the Gramm-Leach-Bliley Act, including the Commodity Futures
Trading Commission) appropriate for such financial
institution.
``(5) Exemptions.--The Secretary of the Treasury (and, in
the case of any financial institution described in paragraph
(4), any Federal agency described in such paragraph) may, by
regulation or order, exempt any financial institution or type
of account from the requirements of any regulation prescribed
under this subsection in accordance with such standards and
procedures as the Secretary may prescribe.
``(6) Effective date.--Final regulations prescribed under
this subsection shall take effect before the end of the 1-
year period beginning on the date of the enactment of the
Financial Anti-Terrorism Act of 2001.''.
(b) Study and Report Required.--Within 6 months after the
date of the enactment of this Act, the Secretary of the
Treasury, in consultation with the Federal functional
regulators (as defined in section 509 of the Gramm-Leach-
Bliley Act) and other appropriate Government agencies, shall
submit a report to the Congress containing recommendations
for--
(1) determining the most timely and effective way to
require foreign nationals to provide domestic financial
institutions and agencies with appropriate and accurate
information, comparable to that which is required of United
States nationals, concerning their identity, address, and
other related information necessary to enable such
institutions and agencies to comply with the requirements of
this section;
(2) requiring foreign nationals to apply for and obtain,
before opening an account with a domestic financial
institution, an identification number which would function
similarly to a Social Security number or tax identification
number; and
(3) establishing a system for domestic financial
institutions and agencies to review information maintained by
relevant Government agencies for purposes of verifying the
identities of foreign nationals seeking to open accounts at
those institutions and agencies.
SEC. 120. CONSIDERATION OF ANTI-MONEY LAUNDERING RECORD.
(a) Bank Holding Company Act of 1956.--
(1) In general.--Section 3(c) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the
end the following new paragraph:
``(6) Money laundering.--In every case the Board shall take
into consideration the effectiveness of the company or
companies in combatting and preventing money laundering
activities, including in overseas branches.''.
(2) Scope of application.--The amendment made by paragraph
(1) shall apply with respect to any application submitted to
the Board of Governors of the Federal Reserve System under
section 3 of the Bank Holding Company Act of 1956 after
December 31, 2000, which has not been approved by the Board
before the date of the enactment of this Act.
(b) Mergers Subject to Review Under Federal Deposit
Insurance Act.--
(1) In general.--Section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) is amended--
(A) by redesignating paragraph (11) as paragraph (12); and
(B) by inserting after paragraph (10), the following new
paragraph:
``(11) Money laundering.--In every case, the responsible
agency shall take into consideration the effectiveness of any
insured depository institution involved in the proposed
merger transaction in combatting and preventing money
laundering activities, including in overseas branches.''.
(2) Scope of application.--The amendment made by paragraph
(1) shall apply with respect to any application submitted to
the responsible agency under section 18(c) of the Federal
Deposit Insurance Act after December 31, 2000, which has not
been approved by all appropriate responsible agencies before
the date of the enactment of this Act.
SEC. 121. REPORTING OF SUSPICIOUS ACTIVITIES BY INFORMAL
UNDERGROUND BANKING SYSTEMS, SUCH AS HAWALAS.
(a) Definition for Subchapter.--Subparagraph (R) of section
5312(a)(2) of title 31, United States Code, is amended to
read as follows:
``(R) a licensed sender of money or any other person who
engages as a business in the transmission of funds, including
through an informal value transfer banking system or network
of people facilitating the transfer of value domestically or
internationally outside of the conventional financial
institutions system;''.
(b) Money Transmitting Business.--Section 5330(d)(1)(A) of
title 31, United States Code, is amended by inserting before
the semicolon the following: ``or any other person who
engages as a business in the transmission of funds, including
through an informal value transfer banking system or network
of people facilitating the transfer of value domestically or
internationally outside of the conventional financial
institutions system''.
(c) Applicability of Rules.--Section 5318 of title 31,
United States Code, as amended by this Act, is amended by
adding at the end the following:
``(l) Applicability of Rules.--Any rules prescribed
pursuant to the authority contained in section 21 of the
Federal Deposit Insurance Act shall apply, in addition to any
other financial institution to which such rules apply, to any
person that engages as a business in the transmission of
funds, including through an informal value transfer banking
system or network of people facilitating the transfer of
value domestically or internationally outside of the
conventional financial institutions system.''.
(d) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Treasury shall
report to Congress on the need for any additional legislation
relating to--
(1) informal value transfer banking systems or networks of
people facilitating the transfer of value domestically or
internationally outside of the conventional financial
institutions system;
(2) anti-money laundering controls; and
(3) regulatory controls relating to underground money
movement and banking systems, such as the system referred to
as ``hawala'', including whether the threshold for the filing
of suspicious activity reports under section 5318(g) of title
31, United States Code should be lowered in the case of such
systems.
SEC. 122. UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE
FACILITIES.
Section 11 of the Federal Reserve Act (12 U.S.C. 248) is
amended by adding at the end the following:
``(q) Uniform Protection Authority for Federal Reserve
Facilities.--
``(1) Notwithstanding any other provision of law, to
authorize personnel to act as law enforcement officers to
protect and safeguard the premises, grounds, property,
personnel, including members of the Board, of the Board, or
any Federal reserve bank, and operations conducted by or on
behalf of the Board or a reserve bank.
``(2) The Board may, subject to the regulations prescribed
under paragraph (5), delegate authority to a Federal reserve
bank to
[[Page H6909]]
authorize personnel to act as law enforcement officers to
protect and safeguard the bank's premises, grounds, property,
personnel, and operations conducted by or on behalf of the
bank.
``(3) Law enforcement officers designated or authorized by
the Board or a reserve bank under paragraph (1) or (2) are
authorized while on duty to carry firearms and make arrests
without warrants for any offense against the United States
committed in their presence, or for any felony cognizable
under the laws of the United States committed or being
committed within the buildings and grounds of the Board or a
reserve bank if they have reasonable grounds to believe that
the person to be arrested has committed or is committing such
a felony. Such officers shall have access to law enforcement
information that may be necessary for the protection of the
property or personnel of the Board or a reserve bank.
``(4) For purposes of this subsection, the term `law
enforcement officers' means personnel who have successfully
completed law enforcement training and are authorized to
carry firearms and make arrests pursuant to this subsection.
``(5) The law enforcement authorities provided for in this
subsection may be exercised only pursuant to regulations
prescribed by the Board and approved by the Attorney
General.''.
SEC. 123. REPORTS RELATING TO COINS AND CURRENCY RECEIVED IN
NONFINANCIAL TRADE OR BUSINESS.
(a) Reports Required.--Subchapter II of chapter 53 of title
31, United States Code, is amended by inserting after section
5332 (as added by section 112 of this title) the following
new section:
``SEC. 5333. REPORTS RELATING TO COINS AND CURRENCY RECEIVED
IN NONFINANCIAL TRADE OR BUSINESS.
``(a) Coin and Currency Receipts of More Than $10,000.--Any
person--
``(1) who is engaged in a trade or business; and
``(2) who, in the course of such trade or business,
receives more than $10,000 in coins or currency in 1
transaction (or 2 or more related transactions),
shall file a report described in subsection (b) with respect
to such transaction (or related transactions) with the
Financial Crimes Enforcement Network at such time and in such
manner as the Secretary may, by regulation, prescribe.
``(b) Form and Manner of Reports.--A report is described in
this subsection if such report--
``(1) is in such form as the Secretary may prescribe;
``(2) contains--
``(A) the name and address, and such other identification
information as the Secretary may require, of the person from
whom the coins or currency was received;
``(B) the amount of coins or currency received;
``(C) the date and nature of the transaction; and
``(D) such other information, including the identification
of the person filing the report, as the Secretary may
prescribe.
``(c) Exceptions.--
``(1) Amounts received by financial institutions.--
Subsection (a) shall not apply to amounts received in a
transaction reported under section 5313 and regulations
prescribed under such section.
``(2) Transactions occurring outside the united states.--
Except to the extent provided in regulations prescribed by
the Secretary, subsection (a) shall not apply to any
transaction if the entire transaction occurs outside the
United States.
``(d) Currency Includes Foreign Currency and Certain
Monetary Instruments.--
``(1) In general.--For purposes of this section, the term
`currency' includes--
``(A) foreign currency; and
``(B) to the extent provided in regulations prescribed by
the Secretary, any monetary instrument (whether or not in
bearer form) with a face amount of not more than $10,000.
``(2) Scope of application.--Paragraph (1)(B) shall not
apply to any check drawn on the account of the writer in a
financial institution referred to in subparagraph (A), (B),
(C), (D), (E), (F), (G), (J), (K), (R), or (S) of section
5312(a)(2).''.
(b) Prohibition on Structuring Transactions.--
(1) In general.--Section 5324 of title 31, United States
Code, is amended--
(A) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(B) by inserting after subsection (a) the following new
subsection:
``(b) Domestic Coin and Currency Transactions Involving
Nonfinancial Trades or Businesses.--No person shall for the
purpose of evading the report requirements of section 5333 or
any regulation prescribed under such section--
``(1) cause or attempt to cause a nonfinancial trade or
business to fail to file a report required under section 5333
or any regulation prescribed under such section;
``(2) cause or attempt to cause a nonfinancial trade or
business to file a report required under section 5333 or any
regulation prescribed under such section that contains a
material omission or misstatement of fact; or
``(3) structure or assist in structuring, or attempt to
structure or assist in structuring, any transaction with 1 or
more nonfinancial trades or businesses.'.
(2) Technical and conforming amendments.--
(A) The heading for subsection (a) of section 5324 of title
31, United States Code, is amended by inserting ``Involving
Financial Institutions'' after ``Transactions'.
(B) Section 5317(c) of title 31, United States Code, is
amended by striking ``5324(b)'' and inserting ``5324(c)''.
(c) Definition of Nonfinancial Trade or Business.--
(1) In general.--Section 5312(a) of title 31, United States
Code, is amended--
(A) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(B) by inserting after paragraph (3) the following new
paragraph:
``(4) Nonfinancial trade or business.--The term
`nonfinancial trade or business' means any trade or business
other than a financial institution that is subject to the
reporting requirements of section 5313 and regulations
prescribed under such section.''.
(2) Technical and conforming amendments.--
(A) Section 5312(a)(3)(C) of title 31, United States Code,
is amended by striking ``section 5316,'' and inserting
``sections 5333 and 5316,''.
(B) Subsections (a) through (f) of section 5318 of title
31, United States Code, and sections 5321, 5326, and 5328 of
such title are each amended--
(i) by inserting ``or nonfinancial trade or business''
after ``financial institution'' each place such term appears;
and
(ii) by inserting ``or nonfinancial trades or businesses''
after ``financial institutions'' each place such term
appears.
(C) Section 981(a)(1)(A) of title 18, United States Code,
is amended by striking ``5313(a) or 5324(a) of title 31,''
and inserting ``5313(a) or 5333 of title 31, or subsection
(a) or (b) of section 5324 of such title,''.
(D) Section 982(a)(1) of title 18, United States Code, is
amended by inserting ``5333,'' after ``5313(a),''.
(c) Clerical Amendment.--The tables of sections for chapter
53 of title 31, United States Code, is amended by inserting
after the item relating to section 5332 (as added by section
112 of this title) the following new item:
``5333. Reports relating to coins and currency received in nonfinancial
trade or business.''.
(f) Regulations.--Regulations which the Secretary of the
Treasury determines are necessary to implement this section
shall be published in final form before the end of the 6-
month period beginning on the date of the enactment of this
Act.
TITLE II--PUBLIC-PRIVATE COOPERATION
SEC. 201. ESTABLISHMENT OF HIGHLY SECURE NETWORK.
(a) In General.--The Secretary of the Treasury shall
establish a highly secure network in the Financial Crimes
Enforcement Network that--
(1) allows financial institutions to file reports required
under subchapter II or III of chapter 53 of title 31, United
States Code, chapter 2 of title I of Public Law 91-508, or
section 21 of the Federal Deposit Insurance Act through the
network; and
(2) provides financial institutions with alerts and other
information regarding suspicious activities that warrant
immediate and enhanced scrutiny.
(b) Expedited Development.--The Secretary of the Treasury
shall take such action as may be necessary to ensure that the
website required under subsection (a) is fully operational
before the end of the 9-month period beginning on the date of
the enactment of this Act.
SEC. 202. REPORT ON IMPROVEMENTS IN DATA ACCESS AND OTHER
ISSUES.
Before the end of the 6-month period beginning on the date
of the enactment of this Act, the Secretary of the Treasury,
after consulting with appropriate Federal functional
regulators (as defined in section 509 of the Gramm-Leach-
Bliley Act), shall report to the Congress on the following
issues:
(1) Data collection and analysis.--Progress made since such
date of enactment in meeting the requirements of section
310(c) of title 31, United States Code (as added by this
Act).
(2) Barriers to exchange of financial crime information.--
Technical, legal, and other barriers to the exchange of
financial crime prevention and detection information among
and between Federal law enforcement agencies, including an
identification of all Federal law enforcement data systems
between which or among which data cannot be shared for
whatever reason.
(3) Private banking.--Private banking activities in the
United States, including information on the following:
(A) The nature and extent of private banking activities in
the United States.
(B) Regulatory efforts to monitor private banking
activities and ensure that such activities are conducted in
compliance with subchapter II of chapter 53 of title 31,
United States Code, and section 21 of the Federal Deposit
Insurance Act.
(C) With regard to financial institutions that offer
private banking services, the policies and procedures of such
institutions that are designed to ensure compliance with the
requirements of subchapter II of chapter 53 of title 31,
United States Code, and section 21 of the Federal Deposit
Insurance Act with respect to private banking activity.
[[Page H6910]]
SEC. 203. REPORTS TO THE FINANCIAL SERVICES INDUSTRY ON
SUSPICIOUS FINANCIAL ACTIVITIES.
At least once each calendar quarter, the Secretary of the
Treasury shall--
(1) publish a report containing a detailed analysis
identifying patterns of suspicious activity and other
investigative insights derived from suspicious activity
reports and investigations conducted by Federal, State, and
local law enforcement agencies to the extent appropriate; and
(2) distribute such report to financial institutions (as
defined in section 5312 of title 31, United States Code).
SEC. 204. EFFICIENT USE OF CURRENCY TRANSACTION REPORT
SYSTEM.
(a) Findings.--The Congress finds the following:
(1) The Congress established the currency transaction
reporting requirements in 1970 because the Congress found
then that such reports have a high degree of usefulness in
criminal, tax, and regulatory investigations and proceedings
and the usefulness of such reports has only increased in the
years since the requirements were established.
(2) In 1994, in response to reports and testimony that
excess amounts of currency transaction reports were
interfering with effective law enforcement, the Congress
reformed the currency transaction report exemption
requirements to provide--
(A) mandatory exemptions for certain reports that had
little usefulness for law enforcement, such as cash transfers
between depository institutions and cash deposits from
government agencies; and
(B) discretionary authority for the Secretary of the
Treasury to provide exemptions, subject to criteria and
guidelines established by the Secretary, for financial
institutions with regard to regular business customers that
maintain accounts at an institution into which frequent cash
deposits are made.
(3) Today there is evidence that some financial
institutions are not utilizing the exemption system, or are
filing reports even if there is an exemption in effect, with
the result that the volume of currency transaction reports is
once again interfering with effective law enforcement.
(b) Study and Report.--
(1) Study required.--The Secretary of the Treasury shall
conduct a study of--
(A) the possible expansion of the statutory exemption
system in effect under 5313 of title 31, United States Code;
and
(B) methods for improving financial institution utilization
of the statutory exemption provisions as a way of reducing
the submission of currency transaction reports that have
little or no value for law enforcement purposes, including
improvements in the systems in effect at financial
institutions for regular review of the exemption procedures
used at the institution and the training of personnel in its
effective use.
(2) Report required.--The Secretary of the Treasury shall
submit a report to the Congress before the end of the 90-day
period beginning on the date of the enactment of this Act
containing the findings and conclusions of the Secretary with
regard to the study required under subsection (a) and such
recommendations for legislative or administrative action as
the Secretary determines to be appropriate.
SEC. 205. PUBLIC-PRIVATE TASK FORCE ON TERRORIST FINANCING
ISSUES.
Section 1564 of the Annunzio--Wylie Anti-Money Laundering
Act (31 U.S.C. 5311 note) is amended by adding at the end the
following new subsection:
``(d) Terrorist Financing Issues.--
``(1) In general.--The Secretary of the Treasury shall
provide, either within the Bank Secrecy Act Advisory Group,
or as a subcommittee or other adjunct of the Advisory Group,
for a task force of representatives from agencies and
officers represented on the Advisory Group, a representative
of the Director of the Office of Homeland Security, and
representatives of financial institutions, private
organizations that represent the financial services industry,
and other interested parties to focus on--
``(A) issues specifically related to the finances of
terrorist groups, the means terrorist groups use to transfer
funds around the world and within the United States,
including through the use of charitable organizations,
nonprofit organizations, and nongovernmental organizations,
and the extent to which financial institutions in the United
States are unwittingly involved in such finances and the
extent to which such institutions are at risk as a result;
``(B) the relationship, particularly the financial
relationship, between international narcotics traffickers and
foreign terrorist organizations, the extent to which their
memberships overlap and engage in joint activities, and the
extent to which they cooperate with each other in raising and
transferring funds for their respective purposes; and
``(C) means of facilitating the identification of accounts
and transactions involving terrorist groups and facilitating
the exchange of information concerning such accounts and
transactions between financial institutions and law
enforcement organizations.
``(2) Applicability of other provisions.--Sections 552,
552a, and 552b of title 5, United States Code, and the
Federal Advisory Committee Act shall not apply to the task
force established pursuant to paragraph (1).''.
SEC. 206. SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS.
(a) Deadline for Suspicious Activity Reporting Requirements
for Registered Brokers and Dealers.--The Secretary of the
Treasury, in consultation with the Securities and Exchange
Commission, shall publish proposed regulations in the Federal
Register before January 1, 2002, requiring brokers and
dealers registered with the Securities and Exchange
Commission under the Securities Exchange Act of 1934 to
submit suspicious activity reports under section 5318(g) of
title 31, United States Code. Such regulations shall be
published in final form no later than June 1, 2002.
(b) Suspicious Activity Reporting Requirements for Futures
Commission Merchants, Commodity Trading Advisors, and
Commodity Pool Operators.--The Secretary of the Treasury, in
consultation with the Commodity Futures Trading Commission,
may prescribe regulations requiring futures commission
merchants, commodity trading advisors, and commodity pool
operators registered under the Commodity Exchange Act to
submit suspicious activity reports under section 5318(g) of
title 31, United States Code.
SEC. 207. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS
ACTIVITIES.
(a) Amendment Relating to Civil Liability Immunity for
Disclosures.--Section 5318(g)(3) of title 31, United States
Code, is amended to read as follows:
``(3) Liability for disclosures.--
``(A) In general.--Any financial institution that makes a
voluntary disclosure of any possible violation of law or
regulation to a government agency or makes a disclosure
pursuant to this subsection or any other authority, and any
director, officer, employee, or agent of such institution who
makes, or requires another to make any such disclosure, shall
not be liable to any person under any law or regulation of
the United States, any constitution, law, or regulation of
any State or political subdivision of any State, or under any
contract or other legally enforceable agreement (including
any arbitration agreement), for such disclosure or for any
failure to provide notice of such disclosure to any person.
``(B) Rule of construction.--Subparagraph (A) shall not be
construed as creating--
``(i) any inference that the term `person', as used in such
subparagraph, may be construed more broadly than its ordinary
usage so to include any government or agency of government;
or
``(ii) any immunity against, or otherwise affecting, any
civil or criminal action brought by any government or agency
of government to enforce any constitution, law, or regulation
of such government or agency.''.
(b) Prohibition on Notification of Disclosures.--Section
5318(g)(2) of title 31, United States Code, is amended to
read as follows:
``(2) Notification prohibited.--
``(A) In general.--If a financial institution or any
director, officer, employee, or agent of any financial
institution, voluntarily or pursuant to this section or any
other authority, reports a suspicious transaction to a
government agency--
``(i) the financial institution, director, officer,
employee, or agent may not notify any person involved in the
transaction that the transaction has been reported; and
``(ii) no officer or employee of the Federal Government or
of any State, local, tribal, or territorial government within
the United States, who has any knowledge that such report was
made may disclose to any person involved in the transaction
that the transaction has been reported other than as
necessary to fulfill the official duties of such officer or
employee.
``(B) Disclosures in certain employment references.--
Notwithstanding the application of subparagraph (A) in any
other context, subparagraph (A) shall not be construed as
prohibiting any financial institution, or any director,
officer, employee, or agent of such institution, from
including, in a written employment reference that is provided
in accordance with section 18(v) of the Federal Deposit
Insurance Act in response to a request from another financial
institution or a written termination notice or employment
reference that is provided in accordance with the rules of
the self-regulatory organizations registered with the
Securities and Exchange Commission or the Commodity Futures
Trading Commission, information that was included in a report
to which subparagraph (A) applies, but such written
employment reference may not disclose that such information
was also included in any such report or that such report was
made.''.
SEC. 208. AUTHORIZATION TO INCLUDE SUSPICIONS OF ILLEGAL
ACTIVITY IN WRITTEN EMPLOYMENT REFERENCES.
Section 18 of the Federal Deposit Insurance Act (12 U.S.C.
1828) is amended by adding at the end the following new
subsection:
``(w) Written Employment References May Contain Suspicions
of Involvement in Illegal Activity.--
``(1) In general.--Notwithstanding any other provision of
law, any insured depository institution, and any director,
officer, employee, or agent of such institution, may disclose
in any written employment reference relating to a current or
former institution-affiliated party of such institution which
is provided to another insured depository institution in
response to a request from such other institution,
information concerning the possible involvement of such
[[Page H6911]]
institution-affiliated party in potentially unlawful
activity, to the extent--
``(A) the disclosure does not contain information which the
institution, director, officer, employee, or agent knows to
be false; and
``(B) the institution, director, officer, employee, or
agent has not acted with malice or with reckless disregard
for the truth in making the disclosure.
``(2) Definition.--For purposes of this subsection, the
term `insured depository institution' includes any uninsured
branch or agency of a foreign bank.''.
SEC. 209. INTERNATIONAL COOPERATION ON IDENTIFICATION OF
ORIGINATORS OF WIRE TRANSFERS.
The Secretary of the Treasury shall--
(1) in consultation with the Attorney General and the
Secretary of State, take all reasonable steps to encourage
foreign governments to require the inclusion of the name of
the originator in wire transfer instructions sent to the
United States and other countries, with the information to
remain with the transfer from its origination until the point
of disbursement; and
(2) report annually to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on--
(A) progress toward the goal enumerated in paragraph (1),
as well as impediments to implementation and an estimated
compliance rate; and
(B) impediments to instituting a regime in which all
appropriate identification, as defined by the Secretary,
about wire transfer recipients shall be included with wire
transfers from their point of origination until disbursement.
SEC. 210. CHECK TRUNCATION STUDY.
Before the end of the 180-day period beginning on the date
of the enactment of this Act, the Secretary of the Treasury,
in consultation with the Attorney General and the Board of
Governors of the Federal Reserve System, shall conduct a
study of the impact on--
(1) crime prevention (including money laundering and
terrorism);
(2) law enforcement;
(3) the financial services industry (including the
technical, operational, and economic impact on the industry)
and customers of such industry;
(4) the payment system (including the liquidity, stability,
and efficiency of the payment system and the ability to
monitor and access the flow of funds); and
(5) the consumer protection laws,
of any policy of the Board of Governors of the Federal
Reserve System relating to the promotion of check
electronification, through truncation or other means, or
migration away from paper checks. The study shall also
include an analysis of the benefits and burdens of promoting
check electronification on the foregoing entities.
TITLE III--COMBATTING INTERNATIONAL MONEY LAUNDERING
SEC. 301. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL
INSTITUTIONS, OR INTERNATIONAL TRANSACTIONS OF
PRIMARY MONEY LAUNDERING CONCERN.
(a) In General.--Subchapter II of chapter 53 of title 31,
United States Code, is amended by inserting after section
5318 the following new section:
``Sec. 5318A. Special measures for jurisdictions, financial
institutions, or international transactions of primary
money laundering concern
``(a) International Counter-Money Laundering
Requirements.--
``(1) In general.--The Secretary may require domestic
financial institutions and domestic financial agencies to
take 1 or more of the special measures described in
subsection (b) if the Secretary finds that reasonable grounds
exist for concluding that a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts is of
primary money laundering concern, in accordance with
subsection (c).
``(2) Form of requirement.--The special measures described
in--
``(A) subsection (b) may be imposed in such sequence or
combination as the Secretary shall determine;
``(B) paragraphs (1) through (4) of subsection (b) may be
imposed by regulation, order, or otherwise as permitted by
law; and
``(C) subsection (b)(5) may be imposed only by regulation.
``(3) Duration of orders; rulemaking.--Any order by which a
special measure described in paragraphs (1) through (4) of
subsection (b) is imposed (other than an order described in
section 5326)--
``(A) shall be issued together with a notice of proposed
rulemaking relating to the imposition of such special
measure; and
``(B) may not remain in effect for more than 120 days,
except pursuant to a regulation prescribed on or before the
end of the 120-day period beginning on the date of issuance
of such order.
``(4) Process for selecting special measures.--In selecting
which special measure or measures to take under this
subsection, the Secretary--
``(A) shall consult with the Chairman of the Board of
Governors of the Federal Reserve System, any other
appropriate Federal banking agency (as defined in section 3
of the Federal Deposit Insurance Act), the Secretary of
State, the Securities and Exchange Commission, the Commodity
Futures Trading Commission, the National Credit Union
Administration Board, and in the sole discretion of the
Secretary such other agencies and interested parties as the
Secretary may find to be appropriate; and
``(B) shall consider--
``(i) whether similar action has been or is being taken by
other nations or multilateral groups;
``(ii) whether the imposition of any particular special
measure would create a significant competitive disadvantage,
including any undue cost or burden associated with
compliance, for financial institutions organized or licensed
in the United States;
``(iii) the extent to which the action or the timing of the
action would have a significant adverse systemic impact on
the international payment, clearance, and settlement system,
or on legitimate business activities involving the particular
jurisdiction, institution, or class of transactions; and
``(iv) the effect on national security and foreign policy.
``(5) No limitation on other authority.--This section shall
not be construed as superseding or otherwise restricting any
other authority granted to the Secretary, or to any other
agency, by this subchapter or otherwise.
``(b) Special Measures.--The special measures referred to
in subsection (a), with respect to a jurisdiction outside of
the United States, financial institution operating outside of
the United States, class of transaction within, or involving,
a jurisdiction outside of the United States, or 1 or more
types of accounts are as follows:
``(1) Recordkeeping and reporting of certain financial
transactions.--
``(A) In general.--The Secretary may require any domestic
financial institution or domestic financial agency to
maintain records, file reports, or both, concerning the
aggregate amount of transactions, or concerning each
transaction, with respect to a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts if the
Secretary finds any such jurisdiction, institution, or class
of transactions to be of primary money laundering concern.
``(B) Form of records and reports.--Such records and
reports shall be made and retained at such time, in such
manner, and for such period of time, as the Secretary shall
determine, and shall include such information as the
Secretary may determine, including--
``(i) the identity and address of the participants in a
transaction or relationship, including the identity of the
originator of any funds transfer;
``(ii) the legal capacity in which a participant in any
transaction is acting;
``(iii) the identity of the beneficial owner of the funds
involved in any transaction, in accordance with such
procedures as the Secretary determines to be reasonable and
practicable to obtain and retain the information; and
``(iv) a description of any transaction.
``(2) Information relating to beneficial ownership.--In
addition to any other requirement under any other provision
of law, the Secretary may require any domestic financial
institution or domestic financial agency to take such steps
as the Secretary may determine to be reasonable and
practicable to obtain and retain information concerning the
beneficial ownership of any account opened or maintained in
the United States by a foreign person (other than a foreign
entity whose shares are subject to public reporting
requirements or are listed and traded on a regulated exchange
or trading market), or a representative of such a foreign
person, that involves a jurisdiction outside of the United
States, 1 or more financial institutions operating outside of
the United States, 1 or more classes of transactions within,
or involving, a jurisdiction outside of the United States, or
1 or more types of accounts if the Secretary finds any such
jurisdiction, institution, transaction, or account to be of
primary money laundering concern.
``(3) Information relating to certain payable-through
accounts.--If the Secretary finds a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States to be of primary money laundering concern,
the Secretary may require any domestic financial institution
or domestic financial agency that opens or maintains a
payable-through account in the United States for a foreign
financial institution involving any such jurisdiction or any
such financial institution operating outside of the United
States, or a payable through account through which any such
transaction may be conducted, as a condition of opening or
maintaining such account--
``(A) to identify each customer (and representative of such
customer) of such financial institution who is permitted to
use, or whose transactions are routed through, such payable-
through account; and
``(B) to obtain, with respect to each such customer (and
each such representative), information that is substantially
comparable to that which the depository institution obtains
in the ordinary course of business with
[[Page H6912]]
respect to its customers residing in the United States.
``(4) Information relating to certain correspondent
accounts.--If the Secretary finds a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States to be of primary money laundering concern,
the Secretary may require any domestic financial institution
or domestic financial agency that opens or maintains a
correspondent account in the United States for a foreign
financial institution involving any such jurisdiction or any
such financial institution operating outside of the United
States, or a correspondent account through which any such
transaction may be conducted, as a condition of opening or
maintaining such account--
``(A) to identify each customer (and representative of such
customer) of any such financial institution who is permitted
to use, or whose transactions are routed through, such
correspondent account; and
``(B) to obtain, with respect to each such customer (and
each such representative), information that is substantially
comparable to that which the depository institution obtains
in the ordinary course of business with respect to its
customers residing in the United States.
``(5) Prohibitions or conditions on opening or maintaining
certain correspondent or payable-through accounts.--If the
Secretary finds a jurisdiction outside of the United States,
1 or more financial institutions operating outside of the
United States, or 1 or more classes of transactions within,
or involving, a jurisdiction outside of the United States to
be of primary money laundering concern, the Secretary, in
consultation with the Secretary of State, the Attorney
General, and the Chairman of the Board of Governors of the
Federal Reserve System, may prohibit, or impose conditions
upon, the opening or maintaining in the United States of a
correspondent account or payable- through account by any
domestic financial institution or domestic financial agency
for or on behalf of a foreign banking institution, if such
correspondent account or payable-through account involves any
such jurisdiction or institution, or if any such transaction
may be conducted through such correspondent account or
payable-through account.
``(c) Consultations and Information To Be Considered in
Finding Jurisdictions, Institutions, Types of Accounts, or
Transactions To Be of Primary Money Laundering Concern.--
``(1) In general.--In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts is of
primary money laundering concern so as to authorize the
Secretary to take 1 or more of the special measures described
in subsection (b), the Secretary shall consult with the
Secretary of State, and the Attorney General.
``(2) Additional considerations.--In making a finding
described in paragraph (1), the Secretary shall consider in
addition such information as the Secretary determines to be
relevant, including the following potentially relevant
factors:
``(A) Jurisdictional factors.--In the case of a particular
jurisdiction--
``(i) evidence that organized criminal groups,
international terrorists, or both, have transacted business
in that jurisdiction;
``(ii) the extent to which that jurisdiction or financial
institutions operating in that jurisdiction offer bank
secrecy or special regulatory advantages to nonresidents or
nondomiciliaries of that jurisdiction;
``(iii) the substance and quality of administration of the
bank supervisory and counter-money laundering laws of that
jurisdiction;
``(iv) the relationship between the volume of financial
transactions occurring in that jurisdiction and the size of
the economy of the jurisdiction;
``(v) the extent to which that jurisdiction is
characterized as an offshore banking or secrecy haven by
credible international organizations or multilateral expert
groups;
``(vi) whether the United States has a mutual legal
assistance treaty with that jurisdiction, and the experience
of United States law enforcement officials, and regulatory
officials in obtaining information about transactions
originating in or routed through or to such jurisdiction; and
``(vii) the extent to which that jurisdiction is
characterized by high levels of official or institutional
corruption.
``(B) Institutional factors.--In the case of a decision to
apply 1 or more of the special measures described in
subsection (b) only to a financial institution or
institutions, or to a transaction or class of transactions,
or to a type of account, or to all 3, within or involving a
particular jurisdiction--
``(i) the extent to which such financial institutions,
transactions, or types of accounts are used to facilitate or
promote money laundering in or through the jurisdiction;
``(ii) the extent to which such institutions, transactions,
or types of accounts are used for legitimate business
purposes in the jurisdiction; and
``(iii) the extent to which such action is sufficient to
ensure, with respect to transact |
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