II 

109TH CONGRESS 

2D SESSION S. 2402 

To improve the prohibitions on money laundering, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 13, 2006 

Mr. GRASSLEY (for himself, Mr. KYL, Mr. CORNYN, Mr. DEWINE, and Mr. 

GRAHAM) introduced the following bill; which was read twice and referred 

to the Committee on the Judiciary 

A BILL 

To improve the prohibitions on money laundering, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Combating Money 

5 Laundering and Terrorist Financing Act of 2006’’. 

6 TITLE I—MONEY LAUNDERING 

7 SEC. 101. SPECIFIED UNLAWFUL ACTIVITY. 

8 Section 1956(c)(7) of title 18, United States Code, 

9 is amended to read as follows: 


ycherry on PROD1PC64 with BILLS
2 

•S 2402 IS

1 ‘‘(7) the term ‘specified unlawful activity’ 

2 means— 

3 ‘‘(A) any act or activity constituting an of4 fense in violation of the laws of the United 

5 States or any State punishable by imprisonment 

6 for a term exceeding 1 year; and 

7 ‘‘(B) any act or activity occurring outside 

8 of the United States that would constitute an 

9 offense covered under subparagraph (A) if the 

10 act or activity had occurred within the jurisdic11 tion of the United States or any State;’’. 

12 SEC. 102. MAKING THE DOMESTIC MONEY LAUNDERING 

13 STATUTE APPLY TO ‘‘REVERSE MONEY LAUN14 DERING’’ AND INTERSTATE TRANSPOR15 TATION. 

16 (a) IN GENERAL.—Section 1957 of title 18, United 

17 States Code, is amended— 

18 (1) in the heading, by inserting ‘‘or in sup19 port of criminal activity’’ after ‘‘specified 

20 unlawful activity’’; 

21 (2) in subsection (a), by striking ‘‘Whoever’’ 

22 and inserting the following: 

23 ‘‘(1) Whoever’’; and 

24 (3) by adding at the end the following: 

25 ‘‘(2) Whoever— 


ycherry on PROD1PC64 with BILLS
3 

•S 2402 IS

1 ‘‘(A) in any of the circumstances set forth in 

2 subsection (d)— 

3 ‘‘(i) conducts or attempts to conduct a 

4 monetary transaction involving property of a 

5 value that is greater than $10,000; or 

6 ‘‘(ii) transports, attempts to transport, or 

7 conspires to transport property of a value that 

8 is greater than $10,000; 

9 ‘‘(B) in or affecting interstate commerce; and 

10 ‘‘(C) either— 

11 ‘‘(i) knowing that the property was derived 

12 from some form of unlawful activity; or 

13 ‘‘(ii) with the intent to promote the car14 rying on of specified unlawful activity; 

15 shall be fined under this title, imprisoned for a term of 

16 years not to exceed the statutory maximum for the unlaw17 ful activity from which the property was derived or the 

18 unlawful activity being promoted, or both.’’. 

19 (b) CHAPTER ANALYSIS.—The item relating to sec20 tion 1957 in the table of sections for chapter 95 of title 

21 18, United States Code, is amended to read as follows: 

‘‘1957. Engaging in monetary transactions in property derived from specified 

unlawful activity or in support of criminal activity.’’. 


ycherry on PROD1PC64 with BILLS
4 

•S 2402 IS

1 SEC. 103. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY 

2 LAUNDERING CASES. 

3 (a) IN GENERAL.—Section 986 of title 18, United 

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘(e) PROCEDURE FOR ISSUING SUBPOENAS.—The 

7 Attorney General, the Secretary of the Treasury, or the 

8 Secretary of Homeland Security may issue a subpoena in 

9 any investigation of a violation of sections 1956, 1957 or 

10 1960, or sections 5316, 5324, 5331 or 5332 of title 31, 

11 United States Code, in the manner set forth under section 

12 3486.’’. 

13 (b) GRAND JURY AND TRIAL SUBPOENAS.—Section 

14 5318(k)(3)(A)(i) of title 31, United States Code, is 

15 amended— 

16 (1) by striking ‘‘related to such correspondent 

17 account’’; 

18 (2) by striking ‘‘or the Attorney General’’ and 

19 inserting ‘‘, the Attorney General, or the Secretary 

20 of Homeland Security’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(iii) GRAND JURY OR TRIAL SUB23 POENA.—In addition to a subpoena issued 

24 by the Attorney General, Secretary of the 

25 Treasury, or the Secretary of Homeland 

26 Security under clause (i), a subpoena 


ycherry on PROD1PC64 with BILLS
5 

•S 2402 IS

1 under clause (i) includes a grand jury or 

2 trial subpoena requested by the Govern3 ment.’’. 

4 (c) FAIR CREDIT REPORTING ACT AMENDMENT.— 

5 Section 604(a)(1) of the Fair Credit Reporting Act (15 

6 U.S.C. 1681b(a)(1)) is amended— 

7 (1) by striking ‘‘or’’; and 

8 (2) by inserting before the period the following: 

9 ‘‘, or an investigative subpoena issued under section 

10 5318 of title 31, United States Code’’. 

11 (d) OBSTRUCTION OF JUSTICE.—Section 1510(b) of 

12 title 18, United States Code, is amended— 

13 (1) in paragraph (2)(A), by inserting ‘‘or an in14 vestigative subpoena issued under section 5318 of 

15 title 31, United States Code’’ after ‘‘grand jury sub16 poena’’; and 

17 (2) in paragraph (3)(B), by inserting ‘‘, an in18 vestigative subpoena issued under section 5318 of 

19 title 31, United States Code,’’ after ‘‘grand jury sub20 poena’’. 

21 (e) RIGHT TO FINANCIAL PRIVACY ACT.—Section 

22 1120 of the Right to Financial Privacy Act of 1978 (12 

23 U.S.C. 3420) is amended— 

24 (1) in subsection (a)(1), by inserting ‘‘or to the 

25 Government’’ after ‘‘to the grand jury’’; and 


ycherry on PROD1PC64 with BILLS
6 

•S 2402 IS

1 (2) in subsection (b)(1), by inserting ‘‘, or an 

2 investigative subpoena issued pursuant to section 

3 5318 of title 31, United States Code,’’ after ‘‘grand 

4 jury subpoena’’. 

5 SEC. 104. TRANSPORTATION OR TRANSHIPMENT OF BLANK 

6 CHECKS IN BEARER FORM. 

7 Section 5316 of title 31, United States Code, is 

8 amended by adding at the end the following: 

9 ‘‘(e) MONETARY INSTRUMENTS WITH AMOUNT LEFT

10 BLANK.—For purposes of this section, a monetary instru11 ment in bearer form that has the amount left blank, such 

12 that the amount could be filled in by the bearer, shall be 

13 considered to have a value equal to the highest value of 

14 the funds in the account on which the monetary instru15 ment is drawn during the time period the monetary instru16 ment was being transported or the time period it was ne17 gotiated or was intended to be negotiated.’’. 

18 SEC. 105. BULK CASH SMUGGLING. 

19 Section 5332(a) of title 31, United States Code, is 

20 amended— 

21 (1) in subsection (b)(1), by striking ‘‘5 years’’ 

22 and inserting ‘‘10 years’’; and 

23 (2) by adding the end the following: 

24 ‘‘(d) INVESTIGATIVE AUTHORITY.—Violations of this 

25 section may be investigated by the Attorney General, the 


ycherry on PROD1PC64 with BILLS
7 

•S 2402 IS

1 Secretary of the Treasury, the Secretary of Homeland Se2 curity, and the Postal Service.’’. 

3 SEC. 106. VIOLATIONS INVOLVING COMMINGLED FUNDS 

4 AND STRUCTURED TRANSACTIONS. 

5 Section 1957(f) of title 18, United States Code, is 

6 amended— 

7 (1) in paragraph (2) by striking ‘‘and’’ at the 

8 end; 

9 (2) in paragraph (3), by striking the period and 

10 inserting a semicolon; and 

11 (3) by adding at the end the following: 

12 ‘‘(4) the term ‘monetary transaction in crimi13 nally derived property that is of a value greater than 

14 $10,000’ includes— 

15 ‘‘(A) a monetary transaction involving the 

16 transfer, withdrawal, encumbrance or other dis17 position of more than $10,000 from a bank ac18 count in which more than $10,000 in proceeds 

19 of specified unlawful activity have been commin20 gled with other funds; 

21 ‘‘(B) a series of monetary transactions in 

22 amounts under $10,000 that exceed $10,000 in 

23 the aggregate and that are closely related to 

24 each other in terms of such factors as time, the 

25 identity of the parties involved, the nature and 


ycherry on PROD1PC64 with BILLS
8 

•S 2402 IS

1 purpose of the transactions, and the manner in 

2 which they are conducted; and 

3 ‘‘(C) any financial transaction covered 

4 under section 1956(j) that involves more than 

5 $10,000 in proceeds of specified unlawful activ6 ity; and 

7 ‘‘(5) the term ‘monetary transaction involving 

8 property of a value that is greater than $10,000’ in9 cludes a series of monetary transactions in amounts 

10 under $10,000 that exceed $10,000 in the aggregate 

11 and that are closely related to each other in terms 

12 of such factors as time, the identity of the parties 

13 involved, the nature and purpose of the transactions, 

14 and the manner in which they are conducted.’’. 

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

16 CONDUCT. 

17 (a) IN GENERAL.—Section 1956 of title 18, United 

18 States Code, is amended by adding at the end the fol19 lowing: 

20 ‘‘(j) MULTIPLE VIOLATIONS.—Multiple violations of 

21 this section that are part of the same scheme or con22 tinuing course of conduct may be charged, at the election 

23 of the Government, in a single count in an indictment or 

24 information.’’. 


ycherry on PROD1PC64 with BILLS
9 

•S 2402 IS

1 (b) CONSPIRACIES.—Section 1956(h) of title 18, 

2 United States Code, is amended by striking ‘‘or section 

3 1957’’ and inserting ‘‘, section 1957, or section 1960’’. 

4 SEC. 108. ILLEGAL MONEY TRANSMITTING BUSINESSES. 

5 (a) TECHNICAL AMENDMENTS.— 

6 (1) IN GENERAL.—Section 1960 of title 18, 

7 United States Code, is amended— 

8 (A) in the heading by striking ‘‘unli9 censed’’ and inserting ‘‘illegal’’; 

10 (B) in subsection (a), by striking ‘‘unli11 censed’’ and inserting ‘‘illegal’’; 

12 (C) in subsection (b)(1), by striking ‘‘unli13 censed’’ and inserting ‘‘illegal’’; and 

14 (D) in subsection (b)(1)(C), by striking ‘‘to 

15 be used to be used’’ and inserting ‘‘to be used’’. 

16 (2) CHAPTER ANALYSIS.—The item relating to 

17 section 1960 in the table of sections for chapter 95 

18 of title 18, United States Code, is amended to read 

19 as follows: 

‘‘1960. Prohibition of illegal money transmitting businesses.’’. 

20 (b) DEFINITION OF BUSINESS TO INCLUDE INFOR21 MAL VALUE TRANSFER SYSTEMS AND MONEY BROKERS

22 FOR DRUG CARTELS.—Section 1960(b) of title 18, United 

23 States Code, is amended— 

24 (1) in paragraph (2), by striking ‘‘and’’ at the 

25 end; 


ycherry on PROD1PC64 with BILLS
10 

•S 2402 IS

1 (2) in paragraph (3), by striking the period and 

2 inserting ‘‘; and’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(4) the term ‘business’ includes any person or 

5 association of persons, formal or informal, licensed 

6 or unlicenced, that provides money transmitting 

7 services on behalf of any third party in return for 

8 remuneration or other consideration.’’. 

9 (c) PROHIBITION OF UNLICENSED MONEY TRANS10 MITTING BUSINESSES.—Section 1960(b)(1)(B) of title 18, 

11 United States Code, is amended by inserting the following 

12 before the semicolon: ‘‘, whether or not the defendant 

13 knew that the operation was required to comply with such 

14 registration requirements’’. 

15 (d) AUTHORITY TO INVESTIGATE.—Section 1960 of 

16 title 18, United States Code, is amended by adding at the 

17 end the following: 

18 ‘‘(c) AUTHORITY TO INVESTIGATE.—Violations of 

19 this section may be investigated by the Attorney General, 

20 the Secretary of the Treasury, and the Secretary of Home21 land Security.’’. 

22 SEC. 109. KNOWLEDGE THAT THE PROPERTY IS THE PRO23 CEEDS OF A SPECIFIC FELONY. 

24 (a) PROCEEDS OF A FELONY.—Section 1956(c)(1) of 

25 title 18, United States Code, is amended by inserting ‘‘, 


ycherry on PROD1PC64 with BILLS
11 

•S 2402 IS

1 and regardless of whether or not the person knew that 

2 the activity constituted a felony’’ before the semicolon at 

3 the end. 

4 (b) INTENT TO CONCEAL OR DISGUISE.—Section 

5 1956(a) of title 18, United States Code, is amended— 

6 (1) in paragraph (1)(B)(i), by striking ‘‘speci7 fied unlawful activity’’ and inserting ‘‘some form of 

8 unlawful activity’’; and 

9 (2) in paragraph (2)(B)(i), by striking ‘‘speci10 fied unlawful activity’’ and inserting ‘‘some form of 

11 unlawful activity’’. 

12 SEC. 110. EXTRATERRITORIAL JURISDICTION. 

13 Section 1956(f)(1) of title 18, United States Code, 

14 is amended by inserting ‘‘or has an effect in the United 

15 States’’ after ‘‘conduct occurs in part in the United 

16 States’’. 

17 SEC. 111. CONDUCT IN AID OF COUNTERFEITING. 

18 (a) IN GENERAL.—Section 474(a) of title 18, United 

19 States Code, is amended by inserting after the paragraph 

20 beginning ‘‘Whoever has in his control, custody, or posses21 sion any plate’’ the following: 

22 ‘‘Whoever, with intent to defraud, has custody, con23 trol, or possession of any material that can be used to 

24 make, alter, forge, or counterfeit any obligation or other 

25 security of the United States or any part of such obligaVerDate Aug 31 2005 00:05 Mar 14, 2006 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2402.IS S2402

ycherry on PROD1PC64 with BILLS
12 

•S 2402 IS

1 tion or security, except under the authority of the Sec2 retary of the Treasury; or’’. 

3 (b) FOREIGN OBLIGATIONS AND SECURITIES.—Sec4 tion 481 of title 18, United States Code, is amended by 

5 inserting after the paragraph beginning ‘‘Whoever, with 

6 intent to defraud’’ the following: 

7 ‘‘Whoever, with intent to defraud, has custody, con8 trol, or possession of any material that can be used to 

9 make, alter, forge, or counterfeit any obligation or other 

10 security of any foreign government, bank, or corporation; 

11 or’’. 

12 (c) COUNTERFEIT ACTS.—Section 470 of title 18, 

13 United States Code, is amended by striking ‘‘or 474’’ and 

14 inserting ‘‘474, or 474A’’. 

15 (d) MATERIALS USED IN COUNTERFEITING.—Sec16 tion 474A(b) of title 18, United States Code, is amended 

17 by striking ‘‘any essentially identical’’ and inserting ‘‘any 

18 thing or material made after or in the similitude of any’’. 

19 TITLE II—TECHNICAL 

20 AMENDMENTS 

21 SEC. 201. TECHNICAL AMENDMENTS TO SECTIONS 1956 AND 

22 1957. 

23 (a) UNLAWFUL ACTIVITY.—Section 1956(c) of title 

24 18, United States Code, is amended— 


ycherry on PROD1PC64 with BILLS
13 

•S 2402 IS

1 (1) in paragraph (2), by striking ‘‘‘conducts’’’ 

2 and inserting ‘‘‘conduct’’’; and 

3 (2) in paragraph (7)(F), by inserting ‘‘, as de4 fined in section 24(a)’’ before the semicolon. 

5 (b) PROPERTY FROM UNLAWFUL ACTIVITY.—Sec6 tion 1957 of title 18, United States Code, is amended— 

7 (1) in subsection (a), by striking ‘‘engages or 

8 attempts to engage in’’ and inserting ‘‘conducts or 

9 attempts to conduct’’; and 

10 (2) in subsection (f)— 

11 (A) in paragraph (2), by striking ‘‘and’’ at 

12 the end; 

13 (B) in paragraph (3), by striking the pe14 riod and inserting ‘‘; and’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(4) the term ‘conduct’ has the meaning given 

17 such term under section 1956(c)(2).’’. 

Æ 


ycherry on PROD1PC64 with BILLS