# Housing and Community Development Act of 1992/Title XV/Subtitle A
## SUBTITLE A—TERMINATION OF CHARTERS, INSURANCE AND OFFICES
### SEC. 1501. AUTHORITY TO APPOINT CONSERVATOR FOR DEPOSITORY INSTITUTIONS CONVICTED OF MONEY LAUNDERING.

    (a) INSURED DEPOSITORY INSTITUTIONS—
       Section 11(c)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1821(c)(5)) is amended by adding at the end the following new subparagraph:
                   ``(M) MONEY LAUNDERING OFFENSE— The Attorney General notifies the appropriate Federal banking agency or the Corporation in writing that the insured depository institution has been found guilty of a criminal offense under section 1956 or 1957 of title 18, United States Code, or section 5322 of title 31, United States Code.´´.
    (b) INSURED CREDIT UNIONS—
       Section 206(h)(1) of the Federal Credit Union Act (12 U.S.C. 1786(h)(1)) is amended—
          (1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and
          (2) by inserting after subparagraph (B) the following new subparagraph:
                   ``(C) the Attorney General notifies the Board in writing that an insured credit union has been found guilty of a criminal offense under section 1956 or 1957 of title 18, United States Code, or section 5322 of title 31, United States Code;´´.
    (c) EFFECTIVE DATE—
       The amendments made by this section shall take effect on December 20, 1992.

### SEC. 1502. REVOKING CHARTER OF FEDERAL DEPOSITORY INSTITUTIONS CONVICTED OF MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES.

    (a) NATIONAL BANKS—
       Section 5239 of the Revised Statutes (12 U.S.C. 93) is amended by adding at the end the following:
             ``(c) FORFEITURE OF FRANCHISE FOR MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES—
                ``(1) IN GENERAL—
                   ``(A) CONVICTION OF TITLE 18 OFFENSES—
                      ``(i) DUTY TO NOTIFY— If a national bank, a Federal branch, or Federal agency has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Comptroller of the Currency a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision.
                      ``(ii) NOTICE OF TERMINATION; PRETERMINATION HEARING— After receiving written notification from the Attorney General of such a conviction, the Comptroller of the Currency shall issue to the national bank, Federal branch, or Federal agency a notice of the Comptroller's intention to terminate all rights, privileges, and franchises of the bank, Federal branch, or Federal agency and schedule a pretermination hearing.
                   ``(B) CONVICTION OF TITLE 31 OFFENSES— If a national bank, a Federal branch, or a Federal agency is convicted of any criminal offense under section 5322 of title 31, United States Code, after receiving written notification from the Attorney General, the Comptroller of the Currency may issue to the national bank, Federal branch, or Federal agency a notice of the Comptroller's intention to terminate all rights, privileges, and franchises of the bank, Federal branch, or Federal agency and schedule a pretermination hearing.
                   ``(C) JUDICIAL REVIEW— Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this subsection.
                ``(2) FACTORS TO BE CONSIDERED— In determining whether a franchise shall be forfeited under paragraph (1), the Comptroller of the Currency shall take into account the following factors:
                   ``(A) The extent to which directors or senior executive officers of the national bank, Federal branch, or Federal agency knew of, or were involved in, the commission of the money laundering offense of which the bank, Federal branch, or Federal agency was found guilty.
                   ``(B) The extent to which the offense occurred despite the existence of policies and procedures within the national bank, Federal branch, or Federal agency which were designed to prevent the occurrence of any such offense.
                   ``(C) The extent to which the national bank, Federal branch, or Federal agency has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the bank, Federal branch, or Federal agency was found guilty.
                   ``(D) The extent to which the national bank, Federal branch, or Federal agency has implemented additional internal controls (since the commission of the offense of which the bank, Federal branch, or Federal agency was found guilty) to prevent the occurrence of any other money laundering offense.
                   ``(E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the forfeiture of the franchise.
                ``(3) SUCCESSOR LIABILITY— This subsection shall not apply to a successor to the interests of, or a person who acquires, a bank, a Federal branch, or a Federal agency that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection.
                ``(4) DEFINITION— The term ``senior executive officer´´ has the same meaning as in regulations prescribed under section 32(f) of the Federal Deposit Insurance Act.´´.
    (b) FEDERAL SAVINGS ASSOCIATIONS—
       Section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) is amended by adding at the end the following:
             ``(w) FORFEITURE OF FRANCHISE FOR MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES—
                ``(1) IN GENERAL—
                   ``(A) CONVICTION OF TITLE 18 OFFENSE—
                      ``(I) DUTY TO NOTIFY— If a Federal savings association has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Director a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision.
                      ``(II) NOTICE OF TERMINATION; PRETERMINATION HEARING— After receiving written notification from the Attorney General of such a conviction, the Director shall issue to the savings association a notice of the Director's intention to terminate all rights, privileges, and franchises of the savings association and schedule a pretermination hearing.
                   ``(B) CONVICTION OF TITLE 31 OFFENSES— If a Federal savings association is convicted of any criminal offense under section 5322 of title 31, United States Code, after receiving written notification from the Attorney General, the Director may issue to the savings association a notice of the Director's intention to terminate all rights, privileges, and franchises of the savings association and schedule a pretermination hearing.
                   ``(C) JUDICIAL REVIEW— Subsection (d)(1)(B)(vii) shall apply to any proceeding under this subsection.
                ``(2) FACTORS TO BE CONSIDERED— In determining whether a franchise shall be forfeited under paragraph (1), the Director shall take into account the following factors:
                   ``(A) The extent to which directors or senior executive officers of the savings association knew of, were involved in, the commission of the money laundering offense of which the association was found guilty.
                   ``(B) The extent to which the offense occurred despite the existence of policies and procedures within the savings association which were designed to prevent the occurrence of any such offense.
                   ``(C) The extent to which the savings association has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the association was found guilty.
                   ``(D) The extent to which the savings association has implemented additional internal controls (since the commission of the offense of which the savings association was found guilty) to prevent the occurrence of any other money laundering offense.
                   ``(E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the forfeiture of the franchise.
                ``(3) SUCCESSOR LIABILITY— This subsection shall not apply to a successor to the interests of, or a person who acquires, a savings association that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection.
                ``(4) DEFINITION— The term ``senior executive officer´´ has the same meaning as in regulations prescribed under section 32(f) of the Federal Deposit Insurance Act.´´.
    (c) FEDERAL CREDIT UNIONS—
       Title I of the Federal Credit Union Act (12 U.S.C. 1752 et seq.) is amended by adding at the end the following new section:
          ``SEC. 131. FORFEITURE OF ORGANIZATION CERTIFICATE FOR MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES.
             ``(a) FORFEITURE OF FRANCHISE FOR MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES—
                ``(1) CONVICTION OF TITLE 18 OFFENSES—
                   ``(A) DUTY TO NOTIFY— If a credit union has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Board a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision.
                   ``(B) NOTICE OF TERMINATION; PRETERMINATION HEARING— After receiving written notification from the Attorney General of such a conviction, the Board shall issue to such credit union a notice of its intention to terminate all rights, privileges, and franchises of the credit union and schedule a pretermination hearing.
                ``(2) CONVICTION OF TITLE 31 OFFENSES— If a credit union is convicted of any criminal offense under section 5322 of title 31, United States Code, after receiving written notification from the Attorney General, the Board may issue to such credit union a notice of its intention to terminate all rights, privileges, and franchises of the credit union and schedule a pretermination hearing.
                ``(3) JUDICIAL REVIEW— Section 206(j) shall apply to any proceeding under this section.
             ``(b) FACTORS TO BE CONSIDERED— In determining whether a franchise shall be forfeited under subsection (a), the Board shall take into account the following factors:
                ``(1) The extent to which directors, committee members, or senior executive officers (as defined by the Board in regulations which the Board shall prescribe) of the credit union knew of, or were involved in, the commission of the money laundering offense of which the credit union was found guilty.
                ``(2) The extent to which the offense occurred despite the existence of policies and procedures within the credit union which were designed to prevent the occurrence of any such offense.
                ``(3) The extent to which the credit union has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the credit union was found guilty.
                ``(4) The extent to which the credit union has implemented additional internal controls (since the commission of the offense of which the credit union was found guilty) to prevent the occurrence of any other money laundering offense.
                ``(5) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the forfeiture of the franchise.
             ``(c) SUCCESSOR LIABILITY— This section shall not apply to a successor to the interests of, or a person who acquires, a credit union that violated a provision of law described in subsection (a), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this section or regulations prescribed under this section.´´.

### SEC. 1503. TERMINATING INSURANCE OF STATE DEPOSITORY INSTITUTIONS CONVICTED OF MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES.

    (a) STATE BANKS AND SAVINGS ASSOCIATIONS—
          (1) IN GENERAL—
             Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end the following new subsection:
             ``(w) TERMINATION OF INSURANCE FOR MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES—
                ``(1) IN GENERAL—
                   ``(A) CONVICTION OF TITLE 18 OFFENSES—
                      ``(i) DUTY TO NOTIFY— If an insured State depository institution has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Corporation a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision.
                      ``(ii) NOTICE OF TERMINATION; PRETERMINATION HEARING— After receipt of written notification from the Attorney General by the Corporation of such a conviction, the Board of Directors shall issue to the insured depository institution a notice of its intention to terminate the insured status of the insured depository institution and schedule a hearing on the matter, which shall be conducted in all respects as a termination hearing pursuant to paragraphs (3) through (5) of subsection (a).
                   ``(B) CONVICTION OF TITLE 31 OFFENSES— If an insured State depository institution is convicted of any criminal offense under section 5322 of title 31, United States Code, after receipt of written notification from the Attorney General by the Corporation, the Board of Directors may initiate proceedings to terminate the insured status of the insured depository institution in the manner described in subparagraph (A).
                   ``(C) NOTICE TO STATE SUPERVISOR— The Corporation shall simultaneously transmit a copy of any notice issued under this paragraph to the appropriate State financial institutions supervisor.
                ``(2) FACTORS TO BE CONSIDERED— In determining whether to terminate insurance under paragraph (1), the Board of Directors shall take into account the following factors:
                   ``(A) The extent to which directors or senior executive officers of the depository institution knew of, or were involved in, the commission of the money laundering offense of which the institution was found guilty.
                   ``(B) The extent to which the offense occurred despite the existence of policies and procedures within the depository institution which were designed to prevent the occurrence of any such offense.
                   ``(C) The extent to which the depository institution has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the institution was found guilty.
                   ``(D) The extent to which the depository institution has implemented additional internal controls (since the commission of the offense of which the depository institution was found guilty) to prevent the occurrence of any other money laundering offense.
                   ``(E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the termination of insurance.
                ``(3) NOTICE TO STATE BANKING SUPERVISOR AND PUBLIC— When the order to terminate insured status initiated pursuant to this subsection is final, the Board of Directors shall—
                   ``(A) notify the State banking supervisor of any State depository institution described in paragraph (1) and the Office of Thrift Supervision, where appropriate, at least 10 days prior to the effective date of the order of termination of the insured status of such depository institution, including a State branch of a foreign bank; and
                   ``(B) publish notice of the termination of the insured status of the depository institution in the Federal Register.
                ``(4) TEMPORARY INSURANCE OF PREVIOUSLY INSURED DEPOSITS— Upon termination of the insured status of any State depository institution pursuant to paragraph (1), the deposits of such depository institution shall be treated in accordance with subsection (a)(7).
                ``(5) SUCCESSOR LIABILITY— This subsection shall not apply to a successor to the interests of, or a person who acquires, an insured depository institution that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection.
                ``(6) DEFINITION— The term ``senior executive officer´´ has the same meaning as in regulations prescribed under section 32(f) of this Act.´´.
          (2) TECHNICAL AMENDMENT—
             Section 8(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1818(a)(3)) is amended by inserting ``of this subsection or subsection (w)´´ after ``subparagraph (B)´´.
    (b) STATE CREDIT UNIONS—
       Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended by adding at the end the following new subsection:
             ``(v) TERMINATION OF INSURANCE FOR MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES—
                ``(1) IN GENERAL—
                   ``(A) CONVICTION OF TITLE 18 OFFENSES—
                      ``(i) DUTY TO NOTIFY— If an insured State credit union has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Board a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision.
                      ``(ii) NOTICE OF TERMINATION— After written notification from the Attorney General to the Board of such a conviction, the Board shall issue to such insured credit union a notice of its intention to terminate the insured status of the insured credit union and schedule a hearing on the matter, which shall be conducted as a termination hearing pursuant to subsection (b) of this section, except that no period for correction shall apply to a notice issued under this subparagraph.
                   ``(B) CONVICTION OF TITLE 31 OFFENSES— If a credit union is convicted of any criminal offense under section 5322 of title 31, United States Code, after prior written notification from the Attorney General, the Board may initiate proceedings to terminate the insured status of such credit union in the manner described in subparagraph (A).
                   ``(C) NOTICE TO STATE SUPERVISOR— The Board shall simultaneously transmit a copy of any notice under this paragraph to the appropriate State financial institutions supervisor.
                ``(2) FACTORS TO BE CONSIDERED— In determining whether to terminate insurance under paragraph (1), the Board shall take into account the following factors:
                   ``(A) The extent to which directors, committee members, or senior executive officers (as defined by the Board in regulations which the Board shall prescribe) of the credit union knew of, or were involved in, the commission of the money laundering offense of which the credit union was found guilty.
                   ``(B) The extent to which the offense occurred despite the existence of policies and procedures within the credit union which were designed to prevent the occurrence of any such offense.
                   ``(C) The extent to which the credit union has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the credit union was found guilty.
                   ``(D) The extent to which the credit union has implemented additional internal controls (since the commission of the offense of which the credit union was found guilty) to prevent the occurrence of any other money laundering offense.
                   ``(E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the termination of insurance.
                ``(3) NOTICE TO STATE CREDIT UNION SUPERVISOR AND PUBLIC— When the order to terminate insured status initiated pursuant to this subsection is final, the Board shall—
                   ``(A) notify the commission, board, or authority (if any) having supervision of the credit union described in paragraph (1) at least 10 days prior to the effective date of the order of the termination of the insured status of such credit union; and
                   ``(B) publish notice of the termination of the insured status of the credit union.
                ``(4) TEMPORARY INSURANCE OF PREVIOUSLY INSURED DEPOSITS— Upon termination of the insured status of any State credit union pursuant to paragraph (1), the deposits of such credit union shall be treated in accordance with section 206(d)(2).
                ``(5) SUCCESSOR LIABILITY— This subsection shall not apply to a successor to the interests of, or a person who acquires, an insured credit union that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection.´´.

### SEC. 1504. REMOVING PARTIES INVOLVED IN CURRENCY REPORTING VIOLATIONS.

    (a) FDIC-INSURED INSTITUTIONS—
          (1) VIOLATION OF REPORTING REQUIREMENTS—
             Section 8(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(2)) is amended to read as follows:
                ``(2) SPECIFIC VIOLATIONS—
                   ``(A) IN GENERAL— Whenever the appropriate Federal banking agency determines that—
                      ``(i) an institution-affiliated party has committed a violation of any provision of subchapter II of chapter 53 of title 31, United States Code, and such violation was not inadvertent or unintentional;
                      ``(ii) an officer or director of an insured depository institution has knowledge that an institution-affiliated party of the insured depository institution has violated any such provision or any provision of law referred to in subsection (g)(1)(A)(ii); or
                      ``(iii) an officer or director of an insured depository institution has committed any violation of the Depository Institution Management Interlocks Act,
                   ``the agency may serve upon such party, officer, or director a written notice of the agency's intention to remove such party from office.
                   ``(B) FACTORS TO BE CONSIDERED— In determining whether an officer or director should be removed as a result of the application of subparagraph (A)(ii), the agency shall consider whether the officer or director took appropriate action to stop, or to prevent the recurrence of, a violation described in such subparagraph.´´.
          (2) CERTAIN FELONY CHARGES—
             Section 8(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(g)(1)) is amended to read as follows:
                ``(1) SUSPENSION OR PROHIBITION—
                   ``(A) IN GENERAL— Whenever any institution-affiliated party is charged in any information, indictment, or complaint, with the commission of or participation in—
                      ``(i) a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under State or Federal law, or
                      ``(ii) a criminal violation of section 1956, 1957, or 1960 of title 18, United States Code, or section 5322 of title 31, United States Code,
                   ``the appropriate Federal banking agency may, if continued service or participation by such party may pose a threat to the interests of the depository institution's depositors or may threaten to impair public confidence in the depository institution, by written notice served upon such party, suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of the depository institution.
                   ``(B) PROVISIONS APPLICABLE TO NOTICE—
                      ``(i) COPY— A copy of any notice under subparagraph (A) shall also be served upon the depository institution.
                      ``(ii) EFFECTIVE PERIOD— A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in such subparagraph is finally disposed of or until terminated by the agency.
                   ``(C) REMOVAL OR PROHIBITION—
                      ``(i) IN GENERAL— If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against an institution-affiliated party in connection with a crime described in subparagraph (A)(i), at such time as such judgment is not subject to further appellate review, the appropriate Federal banking agency may, if continued service or participation by such party may pose a threat to the interests of the depository institution's depositors or may threaten to impair public confidence in the depository institution, issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the depository institution without the prior written consent of the appropriate agency.
                      ``(ii) REQUIRED FOR CERTAIN OFFENSES— In the case of a judgment of conviction or agreement against an institution-affiliated party in connection with a violation described in subparagraph (A)(ii), the appropriate Federal banking agency shall issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the depository institution without the prior written consent of the appropriate agency.
                   ``(D) PROVISIONS APPLICABLE TO ORDER—
                      ``(i) COPY— A copy of any order under subparagraph (C) shall also be served upon the depository institution, whereupon the institution-affiliated party who is subject to the order (if a director or an officer) shall cease to be a director or officer of such depository institution.
                      ``(ii) EFFECT OF ACQUITTAL— A finding of not guilty or other disposition of the charge shall not preclude the agency from instituting proceedings after such finding or disposition to remove such party from office or to prohibit further participation in depository institution affairs, pursuant to paragraph (1), (2), or (3) of subsection (e) of this section.
                      ``(iii) EFFECTIVE PERIOD— Any notice of suspension or order of removal issued under this paragraph shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (3) unless terminated by the agency.´´.
    (b) CREDIT UNIONS—
          (1) VIOLATION OF REPORTING REQUIREMENTS—
             Section 206(g)(2) of the Federal Credit Union Act (12 U.S.C. 1786(g)(2)) is amended to read as follows:
                ``(2) SPECIFIC VIOLATIONS—
                   ``(A) IN GENERAL— Whenever the Board determines that—
                      ``(i) an institution-affiliated party has committed a violation of any provision of subchapter II of chapter 53 of title 31, United States Code, unless such violation was inadvertent or unintentional;
                      ``(ii) an officer or director of an insured credit union has knowledge that an institution-affiliated party of the insured credit union has violated any such provision or any provision of law referred to in subsection (i)(1)(A)(ii); or
                      ``(iii) an officer or director of an insured credit union has committed any violation of the Depository Institution Management Interlocks Act,
                   ``the Board may serve upon such party, officer, or director a written notice of the Board's intention to remove such officer or director from office.
                   ``(B) FACTORS TO BE CONSIDERED— In determining whether an officer or director should be removed as a result of the application of subparagraph (A)(ii), the Board shall consider whether the officer or director took appropriate action to stop, or to prevent the recurrence of, a violation described in such subparagraph.´´.
          (2) CERTAIN FELONY CHARGES—
             Section 206(i)(1) of the Federal Credit Union Act (12 U.S.C. 1786(i)(1)) is amended to read as follows:
                ``(1) SUSPENSION OR PROHIBITION AUTHORIZED—
                   ``(A) IN GENERAL— Whenever any institution-affiliated party is charged in any information, indictment, or complaint, with the commission of or participation in—
                      ``(i) a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under State or Federal law, or
                      ``(ii) a criminal violation of section 1956, 1957, or 1960 of title 18, United States Code, or section 5322 of title 31, United States Code,
                   ``the Board may, if continued service or participation by such party may pose a threat to the interests of the credit union's members or may threaten to impair public confidence in the credit union, by written notice served upon such party, suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of the credit union.
                   ``(B) PROVISIONS APPLICABLE TO NOTICE—
                      ``(i) COPY— A copy of any notice under subparagraph (A) shall also be served upon the credit union.
                      ``(ii) EFFECTIVE PERIOD— A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in such subparagraph is finally disposed of or until terminated by the Board.
                   ``(C) REMOVAL OR PROHIBITION—
                      ``(i) IN GENERAL— If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against an institution-affiliated party in connection with a crime described in subparagraph (A)(i), at such time as such judgment is not subject to further appellate review, the Board may, if continued service or participation by such party may pose a threat to the interests of the credit union's members or may threaten to impair public confidence in the credit union, issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the credit union without the prior written consent of the Board.
                      ``(ii) REQUIRED FOR CERTAIN OFFENSES—In the case of a judgment of conviction or agreement against an institution-affiliated party in connection with a violation described in subparagraph (A)(ii), the Board shall issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the credit union without the prior written consent of the Board.
                   ``(D) PROVISIONS APPLICABLE TO ORDER—
                      ``(i) COPY— A copy of any order under subparagraph (C) shall also be served upon such credit union, whereupon such party (if a director or an officer) shall cease to be a director or officer of such credit union.
                      ``(ii) EFFECT OF ACQUITTAL— A finding of not guilty or other disposition of the charge shall not preclude the Board from instituting proceedings after such finding or disposition to remove such party from office or to prohibit further participation in credit union affairs, pursuant to paragraph (1), (2), or (3) of subsection (g) of this section.
                      ``(iii) EFFECTIVE PERIOD— Any notice of suspension or order of removal issued under this paragraph shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (3) unless terminated by the Board.´´.
    (c) ATTORNEY GENERAL NOTICE REQUIREMENT—
       Section 1956 of title 18, United States Code, is amended by adding at the end the following new subsection:
             ``(g) NOTICE OF CONVICTION OF FINANCIAL INSTITUTIONS— If any financial institution or any officer, director, or employee of any financial institution has been found guilty of an offense under this section, section 1957 or 1960 of this title, or section 5322 of title 31, the Attorney General shall provide written notice of such fact to the appropriate regulatory agency for the financial institution.´´.
    (d) TECHNICAL CORRECTIONS TO PROVISIONS RELATING TO MONEY LAUNDERING ENFORCEMENT ACTIVITIES—
          (1) Section 5318(a)(1) of title 31, United States Code, is amended—
                (A) by striking ``or the Postal Inspection Service´´; and
                (B) by inserting ``United States´´ before ``Postal Service´´.
          (2) Section 5322(a) of title 31, United States Code, is amended by striking ``imprisonment´´ and inserting ``imprisoned for´´.

### SEC. 1505. UNAUTHORIZED PARTICIPATION.

    Section 19(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1829(a)(1)) is amended by inserting ``or money laundering´´ after ``breach of trust´´.

### SEC. 1506. ACCESS BY STATE FINANCIAL INSTITUTION SUPERVISORS TO CURRENCY TRANSACTIONS REPORTS.

    Section 5319 of title 31, United States Code, is amended—
          (1) in the first sentence, by striking ``to an agency´´ and inserting ``to an agency, including any State financial institutions supervisory agency,´´; and
          (2) by inserting after the second sentence the following new sentence: ``The Secretary may only require reports on the use of such information by any State financial institutions supervisory agency for other than supervisory purposes.´´.

### SEC. 1507. RESTRICTING STATE BRANCHES AND AGENCIES OF FOREIGN BANKS CONVICTED OF MONEY LAUNDERING OFFENSES.

    Section 7 of the International Banking Act of 1978 (12 U.S.C. 3105) is amended by inserting after subsection (h) the following new subsection:
             ``(i) PROCEEDINGS RELATED TO CONVICTION FOR MONEY LAUNDERING OFFENSES—
                ``(1) NOTICE OF INTENTION TO ISSUE ORDER— If the Board finds or receives written notice from the Attorney General that—
                   ``(A) any foreign bank which operates a State agency, a State branch which is not an insured branch, or a State commercial lending company subsidiary;
                   ``(B) any State agency;
                   ``(C) any State branch which is not an insured branch; or
                   ``(D) any State commercial lending subsidiary,
                ``has been found guilty of any money laundering offense, the Board shall issue a notice to the agency, branch, or subsidiary of the Board's intention to commence a termination proceeding under subsection (e).
                ``(2) DEFINITIONS— For purposes of this subsection—
                   ``(A) INSURED BRANCH— The term `insured branch' has the meaning given such term in section 3(s) of the Federal Deposit Insurance Act.
                   ``(B) MONEY LAUNDERING OFFENSE DEFINED— The term `money laundering offense' means any criminal offense under section 1956 or 1957 of title 18, United States Code, or under section 5322 of title 31, United States Code.´´.