II 

115TH CONGRESS 

1ST SESSION S. 1241 

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

IN THE SENATE OF THE UNITED STATES 

MAY 25, 2017 

Mr. GRASSLEY (for himself, Mrs. FEINSTEIN, Mr. CORNYN, and Mr. WHITEHOUSE) 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Combating Money Laundering, Terrorist Financing, and 

6 Counterfeiting Act of 2017’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Transportation or transhipment of blank checks in bearer form. 

Sec. 3. Bulk cash smuggling. 

Sec. 4. Section 1957 violations involving commingled funds and aggregated 

transactions. 


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Sec. 5. Charging money laundering as a course of conduct. 

Sec. 6. Illegal money services businesses. 

Sec. 7. Concealment money laundering. 

Sec. 8. Freezing bank accounts of persons arrested for offenses involving the 

movement of money across international borders. 

Sec. 9. Prohibiting money laundering through hawalas, other informal value 

transfer systems, and closely related transactions. 

Sec. 10. Technical amendment to restore wiretap authority for certain money 

laundering and counterfeiting offenses. 

Sec. 11. Making the international money laundering statute apply to tax evasion. 

Sec. 12. Conduct in aid of counterfeiting. 

Sec. 13. Prepaid access devices, digital currencies, or other similar instruments. 

Sec. 14. Administrative subpoenas for money laundering cases. 

Sec. 15. Obtaining foreign bank records from banks with United States correspondent accounts. 

Sec. 16. Danger pay allowance. 

Sec. 17. Clarification of Secret Service authority to investigate money laundering. 

Sec. 18. Prohibition on concealment of ownership of account. 

Sec. 19. Prohibition on concealment of the source of assets in monetary transactions. 

Sec. 20. Rule of construction. 

1 SEC. 2. TRANSPORTATION OR TRANSHIPMENT OF BLANK 

2 CHECKS IN BEARER FORM. 

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

4 amended by adding at the end the following: 

5 ‘‘(e) MONETARY INSTRUMENTS WITH AMOUNT LEFT

6 BLANK.—For purposes of this section, a monetary instru7 ment in bearer form that has the amount left blank, such 

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

9 considered to have a value of more than $10,000 if the 

10 instrument was drawn on an account that contained, or 

11 was intended to contain more than $10,000 at the time— 

12 ‘‘(1) the instrument was transported; or 

13 ‘‘(2) the instrument was negotiated or was in14 tended to be negotiated.’’. 


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1 SEC. 3. BULK CASH SMUGGLING. 

2 Section 5332(b) of title 31, United States Code, is 

3 amended— 

4 (1) in paragraph (1), by striking ‘‘5 years’’ and 

5 inserting ‘‘10 years’’; 

6 (2) by redesignating paragraphs (2), (3), and 

7 (4), as paragraphs (3), (4), and (5), respectively; 

8 (3) by inserting after paragraph (1) the fol9 lowing: 

10 ‘‘(2) FINE.— 

11 ‘‘(A) IN GENERAL.—Whoever violates this 

12 section shall be fined under title 18. 

13 ‘‘(B) ENHANCED FINE FOR AGGRAVATED

14 CASES.—Whoever violates this section while vio15 lating another law of the United States, other 

16 than section 5316 or 5324(c) of this title, or as 

17 a part of a pattern of any unlawful activity, in18 cluding a violation of section 5316 or 5324(c) 

19 of this title, shall be fined double the amount 

20 provided in subsection (b)(3) or (c)(3) of sec21 tion 3571 of title 18.’’; and 

22 (4) in paragraph (5), as redesignated, by strik23 ing ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. 


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1 SEC. 4. SECTION 1957 VIOLATIONS INVOLVING COMMIN2 GLED FUNDS AND AGGREGATED TRANS3 ACTIONS. 

4 Section 1957 of title 18, United States Code, is 

5 amended by adding at the end the following: 

6 ‘‘(g) In a prosecution for an offense under this sec7 tion, the Government may satisfy the $10,000 monetary 

8 transaction value requirement under subsection (a) by 

9 showing that— 

10 ‘‘(1) the monetary transaction involved the 

11 transfer, withdrawal, encumbrance, or other disposi12 tion of more than $10,000 from an account in which 

13 more than $10,000 in proceeds of specified unlawful 

14 activity was commingled with other funds; or 

15 ‘‘(2) the defendant conducted a series of mone16 tary transactions in amounts of not more than 

17 $10,000 that— 

18 ‘‘(A) exceeded $10,000 in the aggregate; 

19 and 

20 ‘‘(B) were closely related to each other as 

21 demonstrated by factors such as— 

22 ‘‘(i) the time period between the 

23 transactions; 

24 ‘‘(ii) the identity of the parties in25 volved; 


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1 ‘‘(iii) the nature or purpose of the 

2 transactions; and 

3 ‘‘(iv) the manner in which the trans4 actions were conducted.’’. 

5 SEC. 5. CHARGING MONEY LAUNDERING AS A COURSE OF 

6 CONDUCT. 

7 Section 1956 of title 18, United States Code, is 

8 amended— 

9 (1) in subsection (h), by striking ‘‘or section 

10 1957’’ and inserting ‘‘, section 1957, or section 

11 1960’’; and 

12 (2) by adding at the end the following: 

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

14 this section that are part of the same scheme or con15 tinuing course of conduct may be charged, at the election 

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

17 information.’’. 

18 SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES. 

19 (a) IN GENERAL.—Section 1960 of title 18, United 

20 States Code, is amended by striking subsections (a) and 

21 (b) and inserting the following: 

22 ‘‘(a) OFFENSE.—Whoever knowingly conducts, con23 trols, manages, supervises, directs, or owns all or part of 

24 a covered money services business that— 


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1 ‘‘(1) is operated without an appropriate license 

2 in a State where such operation is punishable as a 

3 misdemeanor or a felony under State law, whether 

4 or not the person knows that the operation is re5 quired to be licensed or that the operation is so pun6 ishable; 

7 ‘‘(2) fails to comply with the money services 

8 business registration requirements under section 

9 5330 of title 31, or regulations prescribed under 

10 that section, whether or not the person knows that 

11 the operation is required to comply with those reg12 istration requirements; or 

13 ‘‘(3) otherwise engages in a transaction involv14 ing funds that the person knows have been derived 

15 from a criminal offense or are intended to be used 

16 to promote or support unlawful activity, 

17 shall be punished as provided in subsection (b). 

18 ‘‘(b) CRIMINAL PENALTY.—Any person who vio19 lates— 

20 ‘‘(1) subsection (a) shall be fined in accordance 

21 with this title, imprisoned for not more than 5 years, 

22 or both; and 

23 ‘‘(2) subsection (a) by conducting, controlling, 

24 managing, supervising, directing, or owning all or 

25 part of a covered money services business that enVerDate Sep 11 2014 04:45 Jun 01, 2017 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1241.IS S1241

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1 gaged in activity as a covered money services busi2 ness involving more than $1,000,000 during a 12- 

3 month period, or by engaging in a transaction or 

4 transactions involving more than $1,000,000 during 

5 a 12-month period, shall be fined double the amount 

6 provided in subsection (b)(3) or (c)(3) (as applica7 ble) of section 3571, imprisoned for not more than 

8 10 years, or both. 

9 ‘‘(c) DEFINITIONS.—In this section— 

10 ‘‘(1) the term ‘covered money services business’ 

11 means a money services business, as defined in sec12 tion 5330 of title 31 or any regulations prescribed 

13 under that section, that— 

14 ‘‘(A) operates on behalf of the public; and 

15 ‘‘(B) affects interstate or foreign commerce 

16 in any manner or degree; and 

17 ‘‘(2) the term ‘State’ means any State of the 

18 United States, the District of Columbia, the North19 ern Mariana Islands, and any commonwealth, terri20 tory, or possession of the United States.’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

22 (1) SECTION 1960 OF TITLE 18, UNITED STATES

23 CODE.— 


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1 (A) SECTION HEADING.—Section 1960 of 

2 title 18, United States Code, is amended in the 

3 section heading— 

4 (i) by striking ‘‘unlicensed’’ and 

5 inserting ‘‘illegal’’; and 

6 (ii) by striking ‘‘transmitting’’ and 

7 inserting ‘‘services’’. 

8 (B) TABLE OF SECTIONS.—The table of 

9 sections for chapter 95 of title 18, United 

10 States Code, is amended by striking the item 

11 relating to section 1960 and inserting the fol12 lowing: 

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

13 (2) SECTION 5330 OF TITLE 31, UNITED STATES

14 CODE.— 

15 (A) HEADINGS.—Section 5330 of title 31, 

16 United States Code, is amended— 

17 (i) in the section heading, by striking 

18 ‘‘transmitting’’ and inserting ‘‘serv19 ices’’; 

20 (ii) in subsection (c)— 

21 (I) in the subsection heading, by 

22 striking ‘‘TRANSMITTING’’ and insert23 ing ‘‘SERVICES’’; 

24 (II) in paragraph (1), in the 

25 paragraph heading, by striking 


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1 ‘‘TRANSMITTING’’ and inserting 

2 ‘‘SERVICES’’; and 

3 (III) in paragraph (2), in the 

4 paragraph heading, by striking 

5 ‘‘TRANSMITTING’’ and inserting 

6 ‘‘SERVICES’’; and 

7 (iii) in subsection (d)(1), in the para8 graph heading, by striking ‘‘TRANSMIT9 TING’’ and inserting ‘‘SERVICES’’. 

10 (B) TEXT.—Section 5330 of title 31, 

11 United States Code, is amended— 

12 (i) by striking ‘‘money transmitting 

13 business’’ each place that term appears 

14 and inserting ‘‘money services business’’; 

15 and 

16 (ii) in subsection (a)(3), by striking 

17 ‘‘money transmitting businesses’’ and in18 serting ‘‘a money services business’’. 

19 (C) TABLE OF SECTIONS.—The table of 

20 sections for subchapter II of chapter 53 of title 

21 31, United States Code, is amended by striking 

22 the item relating to section 5330 and inserting 

23 the following: 

‘‘5330. Registration of money services businesses.’’. 


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1 SEC. 7. CONCEALMENT MONEY LAUNDERING. 

2 Section 1956(a) of title 18, United States Code, is 

3 amended— 

4 (1) in paragraph (1)(B), by striking ‘‘knowing 

5 that’’ and all that follows through ‘‘Federal law,’’ 

6 and inserting the following: 

7 ‘‘(B) knowing that the transaction— 

8 ‘‘(i) conceals or disguises, or is intended to 

9 conceal or disguise, the nature, source, location, 

10 ownership, or control of the proceeds of some 

11 form of unlawful activity; or 

12 ‘‘(ii) avoids, or is intended to avoid, a 

13 transaction reporting requirement under State 

14 or Federal law,’’; and 

15 (2) in paragraph (2)(B), by striking ‘‘knowing 

16 that’’ and all that follows through ‘‘Federal law,’’ 

17 and inserting the following: 

18 ‘‘(B) knowing that— 

19 ‘‘(i) the monetary instrument or funds in20 volved in the transportation, transmission, or 

21 transfer represent the proceeds of some form of 

22 unlawful activity; and 

23 ‘‘(ii) the transportation, transmission, or 

24 transfer— 

25 ‘‘(I) conceals or disguises, or is in26 tended to conceal or disguise, the nature, 


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1 source, location, ownership, or control of 

2 the proceeds of some form of unlawful ac3 tivity; or 

4 ‘‘(II) avoids, or is intended to avoid, a 

5 transaction reporting requirement under 

6 State or Federal law,’’. 

7 SEC. 8. FREEZING BANK ACCOUNTS OF PERSONS AR8 RESTED FOR OFFENSES INVOLVING THE 

9 MOVEMENT OF MONEY ACROSS INTER10 NATIONAL BORDERS. 

11 Section 981(b) of title 18, United States Code, is 

12 amended by adding at the end the following: 

13 ‘‘(5)(A) If a person is arrested or charged in connec14 tion with an offense described in subparagraph (C) involv15 ing the movement of funds into or out of the United 

16 States, the Attorney General may apply to any Federal 

17 judge or magistrate judge in the district in which the ar18 rest is made or the charges are filed for an ex parte order 

19 restraining any account held by the person arrested or 

20 charged for not more than 30 days, except that such 30- 

21 day time period may be extended for good cause shown 

22 at a hearing conducted in the manner provided in Rule 

23 43(c) of the Federal Rules of Civil Procedure. The court 

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1 mitted by the Government that would be inadmissible 

2 under the Federal Rules of Evidence. 

3 ‘‘(B) The application for the restraining order re4 ferred to in subparagraph (A) shall— 

5 ‘‘(i) identify the offense for which the person 

6 has been arrested or charged; 

7 ‘‘(ii) identify the location and description of the 

8 accounts to be restrained; and 

9 ‘‘(iii) state that the restraining order is needed 

10 to prevent the removal of the funds in the account 

11 by the person arrested or charged, or by other per12 sons associated with that person, during the time 

13 needed by the Government to conduct such inves14 tigation as may be necessary to establish whether 

15 there is probable cause to believe that the funds in 

16 the accounts are subject to forfeiture in connection 

17 with the commission of any criminal offense. 

18 ‘‘(C) A restraining order may be issued under sub19 paragraph (A) if a person is arrested or charged with any 

20 offense for which forfeiture is authorized under— 

21 ‘‘(i) this title; 

22 ‘‘(ii) title 31; or 

23 ‘‘(iii) the Controlled Substances Act (21 U.S.C. 

24 801 et seq.). 

25 ‘‘(D) For purposes of this paragraph— 


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1 ‘‘(i) the term ‘account’ includes any safe deposit 

2 box and any account (as defined in paragraphs (1) 

3 and (2) of section 5318A(e) of title 31) at any fi4 nancial institution; and 

5 ‘‘(ii) the term ‘account held by the person ar6 rested or charged’ includes an account held in the 

7 name of that person, and any account over which 

8 that person has effective control as a signatory or 

9 otherwise. 

10 ‘‘(E) Restraint under this paragraph shall not be 

11 deemed a seizure for purposes of section 983(a). 

12 ‘‘(F) A restraining order issued under this paragraph 

13 may be executed in any district in which the subject ac14 count is found, or transmitted to the central authority of 

15 any foreign State for service in accordance with any treaty 

16 or other international agreement.’’. 

17 SEC. 9. PROHIBITING MONEY LAUNDERING THROUGH 

18 HAWALAS, OTHER INFORMAL VALUE TRANS19 FER SYSTEMS, AND CLOSELY RELATED 

20 TRANSACTIONS. 

21 The matter following section 1956(a)(1)(B)(ii) of 

22 title 18, United States Code, is amended by striking ‘‘For 

23 purposes of this paragraph, a financial transaction’’ and 

24 inserting ‘‘For purposes of this paragraph and section 


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1 1957, a financial transaction or a monetary transaction, 

2 as applicable,’’. 

3 SEC. 10. TECHNICAL AMENDMENT TO RESTORE WIRETAP 

4 AUTHORITY FOR CERTAIN MONEY LAUN5 DERING AND COUNTERFEITING OFFENSES. 

6 (a) CURRENCY REPORTING OFFENSES.—Section 

7 2516(1)(g) of title 18, United States Code, is amended 

8 by striking ‘‘or section 5324 of title 31, United States 

9 Code (relating to structuring transactions to evade report10 ing requirement prohibited)’’ and inserting ‘‘or section 

11 5324, 5331, or 5332 of that title (relating to evasion of 

12 Federal transaction reporting requirements)’’. 

13 (b) MONEY LAUNDERING.—Section 2516(1)(c) of 

14 title 18, United States Code, is amended by inserting ‘‘sec15 tion 1960 (relating to illegal money services businesses),’’ 

16 before ‘‘section 659’’. 

17 (c) COUNTERFEITING.—Section 2516(1)(d) of title 

18 18, United States Code, is amended by striking ‘‘or 473’’ 

19 and inserting ‘‘473, 474, or 474A’’. 

20 SEC. 11. MAKING THE INTERNATIONAL MONEY LAUN21 DERING STATUTE APPLY TO TAX EVASION. 

22 Section 1956(a)(2)(A) of title 18, United States 

23 Code, is amended— 

24 (1) by inserting ‘‘(i)’’ before ‘‘with the intent to 

25 promote’’; and 


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1 (2) by adding at the end the following: 

2 ‘‘(ii) with the intent to engage in conduct 

3 constituting a violation of section 7201 or 7206 

4 of the Internal Revenue Code of 1986; or’’. 

5 SEC. 12. CONDUCT IN AID OF COUNTERFEITING. 

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

7 States Code, is amended by inserting after the paragraph 

8 beginning ‘‘Whoever has in his control, custody, or posses9 sion any plate’’ the following: 

10 ‘‘Whoever, with intent to defraud, has custody, con11 trol, or possession of any material, tool, machinery, or 

12 other equipment that can be used to make, alter, forge, 

13 or counterfeit any obligation or other security of the 

14 United States or any part of such obligation or security, 

15 except under the authority of the Secretary of the Treas16 ury; or’’. 

17 (b) FOREIGN OBLIGATIONS AND SECURITIES.—Sec18 tion 481 of title 18, United States Code, is amended by 

19 inserting after the paragraph beginning ‘‘Whoever, with 

20 intent to defraud’’ the following: 

21 ‘‘Whoever, with intent to defraud, has custody, con22 trol, or possession of any material, tool, machinery, or 

23 other equipment that can be used to make, alter, forge, 

24 or counterfeit any obligation or other security of any for25 eign government, bank, or corporation; or’’. 


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

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

3 inserting ‘‘474, or 474A’’. 

4 (d) STRENGTHENING DETERRENTS TO COUNTER5 FEITING.—Section 474A of title 18, United States Code, 

6 is amended— 

7 (1) in subsection (a), by inserting ‘‘, custody,’’ 

8 after ‘‘control’’; 

9 (2) in subsection (b)— 

10 (A) by inserting ‘‘, custody,’’ after ‘‘con11 trol’’; and 

12 (B) by striking ‘‘any essentially identical 

13 feature or device adapted to the making of any 

14 such obligation or security,’’ and inserting ‘‘any 

15 material or other thing made after or in simili16 tude of any such deterrent,’’; and 

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

18 ‘‘(d) Whoever has in his control, custody, or posses19 sion any obligation or security of the United States or any 

20 foreign government from which the ink or other distinctive 

21 counterfeit deterrent has been completely or partially re22 moved, except under the authority of the Secretary of the 

23 Treasury, is guilty of a class B felony.’’. 


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1 SEC. 13. PREPAID ACCESS DEVICES, DIGITAL CURRENCIES, 

2 OR OTHER SIMILAR INSTRUMENTS. 

3 (a) IN GENERAL.—Section 5312(a) of title 31, 

4 United States Code, is amended— 

5 (1) in paragraph (2)(K)— 

6 (A) by inserting ‘‘prepaid access devices, 

7 digital currency,’’ after ‘‘money orders,’’; and 

8 (B) by inserting before the semicolon at 

9 the end the following: ‘‘, or any digital ex10 changer or tumbler of digital currency’’; 

11 (2) in paragraph (3)(B), by inserting ‘‘prepaid 

12 access devices,’’ after ‘‘delivery,’’; and 

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

14 ‘‘(7) ‘prepaid access device’ means an electronic 

15 device or vehicle, such as a card, plate, code, num16 ber, electronic serial number, mobile identification 

17 number, personal identification number, or other in18 strument, that provides a portal to funds or the 

19 value of funds that have been paid in advance and 

20 can be retrievable and transferable at some point in 

21 the future.’’. 

22 (b) GAO REPORT.—Not later than 18 months after 

23 the date of enactment of this Act, the Comptroller General 

24 of the United States shall submit to Congress a report 

25 on— 


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1 (1) the impact the amendments made by sub2 section (a) have had on law enforcement, the prepaid 

3 access industry, and consumers; and 

4 (2) the implementation and enforcement of the 

5 final rule entitled ‘‘Bank Secrecy Act Regulations— 

6 Definitions and Other Regulations Relating to Pre7 paid Access’’ (76 Fed. Reg. 45403 (July 19, 2011)) 

8 by the Department of the Treasury. 

9 (c) CUSTOMS AND BORDER PROTECTION STRATEGY

10 FOR PREPAID ACCESS DEVICES.—Not later than 18 

11 months after the date of enactment of this Act, the Sec12 retary of Homeland Security, in consultation with the 

13 Commissioner of U.S. Customs and Border Protection, 

14 shall submit to Congress a report— 

15 (1) detailing a strategy to interdict and detect 

16 prepaid access devices, digital currencies, or other 

17 similar instruments, at border crossings and other 

18 ports of entry for the United States; and 

19 (2) that includes an assessment of infrastruc20 ture needed to carry out the strategy detailed in 

21 paragraph (1). 

22 SEC. 14. ADMINISTRATIVE SUBPOENAS FOR MONEY LAUN23 DERING CASES. 

24 Section 3486(a) of title 18, United States Code, is 

25 amended— 


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1 (1) in paragraph (1)(A)— 

2 (A) in the matter preceding clause (i), by 

3 striking ‘‘of’’ and inserting ‘‘relating to’’; 

4 (B) in clause (ii), by striking ‘‘or’’; 

5 (C) in clause (iii)— 

6 (i) by striking ‘‘section 3056’’ and in7 serting ‘‘section 3056(a)’’; and 

8 (ii) by striking ‘‘the Treasury,’’ and 

9 inserting ‘‘Homeland Security; or’’; and 

10 (D) by inserting after clause (iii) the fol11 lowing: 

12 ‘‘(iv) an offense under section 1956, 

13 1957, or 1960 of this title, or section 

14 5313, 5316, 5324, 5331, or 5332 of title 

15 31, or an offense against a foreign nation 

16 constituting specified unlawful activity 

17 under section 1956 of this title, or a crimi18 nal or civil forfeiture based upon an of19 fense enumerated in this subparagraph or 

20 for which enforcement could be brought 

21 under section 2467 of title 28, the Attor22 ney General, the Secretary of Homeland 

23 Security, or the Secretary of the Treas24 ury,’’; and 

25 (2) in paragraph (6)(B)— 


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1 (A) in clause (iii), by striking ‘‘or’’ at the 

2 end; 

3 (B) in clause (iv), by striking the period 

4 and inserting ‘‘; or’’; and 

5 (C) by adding at the end following: 

6 ‘‘(v) dissipation, destruction, removal, transfer, 

7 damage, encumbrance, or other unavailability of 

8 property that may become subject to forfeiture or an 

9 enforcement action under 2467 of title 28.’’. 

10 SEC. 15. OBTAINING FOREIGN BANK RECORDS FROM 

11 BANKS WITH UNITED STATES COR12 RESPONDENT ACCOUNTS. 

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

14 5318(k) of title 31, United States Code, is amended— 

15 (1) in paragraph (1)— 

16 (A) by redesignating subparagraph (B) as 

17 subparagraph (C); and 

18 (B) by inserting after subparagraph (A) 

19 the following: 

20 ‘‘(B) COVERED FINANCIAL INSTITUTION.— 

21 The term ‘covered financial institution’ means 

22 an institution referred to in subsection (j)(1).’’; 

23 and 

24 (2) by striking paragraph (3) and inserting the 

25 following: 


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1 ‘‘(3) FOREIGN BANK RECORDS.— 

2 ‘‘(A) SUBPOENA OF RECORDS.— 

3 ‘‘(i) IN GENERAL.—Notwithstanding 

4 subsection (b), the Secretary of the Treas5 ury or the Attorney General may issue a 

6 subpoena to any foreign bank that main7 tains a correspondent account in the 

8 United States and request any records re9 lating to the correspondent account or any 

10 account at the foreign bank, including 

11 records maintained outside of the United 

12 States, that are the subject of any— 

13 ‘‘(I) investigation of a violation of 

14 a criminal law of the United States; 

15 or 

16 ‘‘(II) civil forfeiture action. 

17 ‘‘(ii) PRODUCTION OF RECORDS.—The 

18 foreign bank on which a subpoena de19 scribed in clause (i) is served shall produce 

20 all requested records and authenticate all 

21 requested records with testimony in the 

22 manner described in— 

23 ‘‘(I) rule 902(12) of the Federal 

24 Rules of Evidence; or 

25 ‘‘(II) section 3505 of title 18. 


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1 ‘‘(iii) ISSUANCE AND SERVICE OF SUB2 POENA.—A subpoena described in clause 

3 (i)— 

4 ‘‘(I) shall designate— 

5 ‘‘(aa) a return date; and 

6 ‘‘(bb) the judicial district in 

7 which the related investigation is 

8 proceeding; and 

9 ‘‘(II) may be served— 

10 ‘‘(aa) in person; 

11 ‘‘(bb) by mail or fax in the 

12 United States if the foreign bank 

13 has a representative in the 

14 United States; or 

15 ‘‘(cc) in a foreign country 

16 under any mutual legal assist17 ance treaty, multilateral agree18 ment, or other request for inter19 national legal or law enforcement 

20 assistance. 

21 ‘‘(iv) RELIEF FROM SUBPOENA.— 

22 ‘‘(I) IN GENERAL.—At any time 

23 before the return date of the subpoena 

24 described in clause (i), the foreign 

25 bank on which the subpoena is served 


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1 may petition the district court of the 

2 United States for the judicial district 

3 in which the related investigation is 

4 proceeding, as designated in the sub5 poena, to modify or quash— 

6 ‘‘(aa) the subpoena; or 

7 ‘‘(bb) the prohibition against 

8 disclosure described in subpara9 graph (C). 

10 ‘‘(II) CONFLICT WITH FOREIGN

11 SECRECY OR CONFIDENTIALITY.—An 

12 assertion that compliance with the 

13 subpoena would conflict with a provi14 sion of foreign secrecy or confiden15 tiality law shall not be a basis for 

16 quashing or modifying the subpoena. 

17 ‘‘(B) ACCEPTANCE OF SERVICE.— 

18 ‘‘(i) MAINTAINING RECORDS IN THE

19 UNITED STATES.—Any covered financial 

20 institution that maintains a correspondent 

21 account in the United States for a foreign 

22 bank shall maintain records in the United 

23 States identifying— 

24 ‘‘(I) the owners of such foreign 

25 bank; and 


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1 ‘‘(II) the name and address of a 

2 person who— 

3 ‘‘(aa) resides in the United 

4 States; and 

5 ‘‘(bb) is authorized to accept 

6 service of legal process for 

7 records covered under this sub8 section. 

9 ‘‘(ii) LAW ENFORCEMENT REQUEST.— 

10 Upon receipt of a written request from a 

11 Federal law enforcement officer for infor12 mation required to be maintained under 

13 this paragraph, a covered financial institu14 tion shall provide the information to the 

15 requesting officer not later than 7 days 

16 after receipt of the request. 

17 ‘‘(C) NONDISCLOSURE OF SUBPOENA.— 

18 ‘‘(i) IN GENERAL.—No officer, direc19 tor, partner, employee, or shareholder of, 

20 or agent or attorney for, a foreign bank on 

21 which a subpoena is served under this 

22 paragraph shall, directly or indirectly, no23 tify any account holder involved or any 

24 person named in the subpoena issued 

25 under subparagraph (A)(i) and served on 


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•S 1241 IS

1 such an institution about the existence or 

2 contents of such subpoena. 

3 ‘‘(ii) DAMAGES.—Upon application by 

4 the Attorney General for a violation of this 

5 subparagraph, a foreign bank on which a 

6 subpoena is served under this paragraph 

7 shall be liable to the United States Govern8 ment for a civil penalty in an amount 

9 equal to— 

10 ‘‘(I) double the amount of the 

11 suspected criminal proceeds sent 

12 through the correspondent account of 

13 the foreign bank in the related inves14 tigation; or 

15 ‘‘(II) if no such proceeds can be 

16 identified, $250,000. 

17 ‘‘(D) ENFORCEMENT.— 

18 ‘‘(i) IN GENERAL.—If a foreign bank 

19 fails to obey a subpoena issued under sub20 paragraph (A)(i), the Attorney General 

21 may invoke the aid of the district court of 

22 the United States for the judicial district 

23 in which the investigation or related pro24 ceeding is occurring to compel compliance 

25 with the subpoena. 


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•S 1241 IS

1 ‘‘(ii) COURT ORDERS AND CONTEMPT

2 OF COURT.—The court may— 

3 ‘‘(I) issue an order requiring the 

4 foreign bank to appear before the Sec5 retary of the Treasury or the Attorney 

6 General to produce— 

7 ‘‘(aa) certified records, in 

8 accordance with— 

9 ‘‘(AA) rule 902(12) of 

10 the Federal Rules of Evi11 dence; or 

12 ‘‘(BB) section 3505 of 

13 title 18; or 

14 ‘‘(bb) testimony regarding 

15 the production of such records; 

16 and 

17 ‘‘(II) punish any failure to obey 

18 an order issued under subclause (I) as 

19 contempt of court. 

20 ‘‘(iii) SERVICE OF PROCESS.—All 

21 process in a case under this subparagraph 

22 shall be served on the foreign bank in the 

23 same manner as described in subparagraph 

24 (A)(iii). 


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•S 1241 IS

1 ‘‘(E) TERMINATION OF CORRESPONDENT

2 RELATIONSHIP.— 

3 ‘‘(i) TERMINATION UPON RECEIPT OF

4 NOTICE.—A covered financial institution 

5 shall terminate any correspondent relation6 ship with a foreign bank not later than 10 

7 business days after the date on which the 

8 covered financial institution receives writ9 ten notice from the Secretary of the Treas10 ury or the Attorney General if, after con11 sultation with the other, the Secretary of 

12 the Treasury or Attorney General, as ap13 plicable, determines that the foreign bank 

14 has failed— 

15 ‘‘(I) to comply with a subpoena 

16 issued under subparagraph (A)(i); or 

17 ‘‘(II) to prevail in proceedings be18 fore— 

19 ‘‘(aa) the appropriate dis20 trict court of the United States 

21 after challenging such a sub22 poena under subparagraph 

23 (A)(iv)(I); or 

24 ‘‘(bb) a court of appeals of 

25 the United States after appealing 


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•S 1241 IS

1 a decision of a district court of 

2 the United States under item 

3 (aa). 

4 ‘‘(ii) LIMITATION ON LIABILITY.—A 

5 covered financial institution shall not be 

6 liable to any person in any court or arbi7 tration proceeding for terminating a cor8 respondent relationship under this sub9 paragraph or complying with a nondisclo10 sure order under subparagraph (C). 

11 ‘‘(iii) FAILURE TO TERMINATE RELA12 TIONSHIP.—A covered financial institution 

13 that fails to terminate a correspondent re14 lationship under clause (i) shall be liable, 

15 for a civil penalty in an amount that is not 

16 more than $10,000 for each day that the 

17 covered financial institution fails to termi18 nate the relationship. 

19 ‘‘(F) ENFORCEMENT OF CIVIL PEN20 ALTIES.—Upon application by the United 

21 States, any funds held in the correspondent ac22 count of a foreign bank that is maintained in 

23 the United States with a covered financial insti24 tution may be seized by the United States to 

25 satisfy any civil penalties that are imposed— 


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•S 1241 IS

1 ‘‘(i) under subparagraph (C)(ii); or 

2 ‘‘(ii) by the court for contempt under 

3 subparagraph (D).’’. 

4 (b) 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 a’’ and inserting ‘‘, a’’; and 

8 (2) by inserting ‘‘, or a subpoena issued in ac9 cordance with section 5318 of title 31, United States 

10 Code, or section 3486 of title 18, United States 

11 Code’’ after ‘‘grand jury’’. 

12 (c) OBSTRUCTION OF JUSTICE.—Section 

13 1510(b)(3)(B) of title 18, United States Code, is amend14 ed— 

15 (1) in the matter preceding clause (i), by strik16 ing ‘‘or a Department of Justice subpoena (issued 

17 under section 3486 of title 18)’’ and inserting ‘‘, a 

18 subpoena issued under section 3486 of this title, or 

19 an order or subpoena issued in accordance with sec20 tion 3512 of this title, section 5318 of title 31, or 

21 section 1782 of title 28,’’; and 

22 (2) in clause (i) by inserting ‘‘, 1960, or an of23 fense against a foreign nation constituting specified 

24 unlawful activity under section 1956, or a foreign of25 fense for which enforcement of a foreign forfeiture 


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•S 1241 IS

1 judgment could be brought under section 2467 of 

2 title 28’’ after ‘‘1957’’. 

3 (d) RIGHT TO FINANCIAL PRIVACY ACT.—Section 

4 1120(b)(1)(A) of the Right to Financial Privacy Act of 

5 1978 (12 U.S.C. 3420(b)(1)(A)) is amended— 

6 (1) by striking ‘‘or 1957’’ and inserting ‘‘, 

7 1957, or 1960’’; and 

8 (2) by striking ‘‘and 5324’’ and inserting ‘‘, 

9 5322, 5324, 5331, and 5332’’. 

10 SEC. 16. DANGER PAY ALLOWANCE. 

11 Section 151 of the Foreign Relations Authorization 

12 Act, Fiscal Years 1990 and 1991 (5 U.S.C. 5928 note) 

13 is amended by striking ‘‘Drug Enforcement Administra14 tion or Federal Bureau of Investigation’’ and inserting 

15 ‘‘Drug Enforcement Administration, the Federal Bureau 

16 of Investigation, U.S. Immigration and Customs Enforce17 ment, U.S. Customs and Border Protection, or the United 

18 States Secret Service’’. 

19 SEC. 17. CLARIFICATION OF SECRET SERVICE AUTHORITY 

20 TO INVESTIGATE MONEY LAUNDERING. 

21 Section 3056(b)(3) of title 18, United States Code, 

22 is amended— 

23 (1) by inserting ‘‘money laundering, structured 

24 transactions,’’ after ‘‘documents or devices,’’; and 

25 (2) by striking ‘‘federally insured’’. 


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•S 1241 IS

1 SEC. 18. PROHIBITION ON CONCEALMENT OF OWNERSHIP 

2 OF ACCOUNT. 

3 (a) IN GENERAL.—Subchapter II of chapter 53 of 

4 title 31, United States Code, is amended by adding at the 

5 end the following: 

6 ‘‘§ 5333. Prohibition on concealment of ownership of 

7 account 

8 ‘‘(a) IN GENERAL.—No person shall knowingly con9 ceal, falsify, or misrepresent, or attempt to conceal, falsify, 

10 or misrepresent, from or to a financial institution, a mate11 rial fact concerning the ownership or control of an account 

12 or assets held in an account with a financial institution. 

13 ‘‘(b) PENALTIES.—A person convicted of an offense 

14 under subsection (a), or a conspiracy to commit such of15 fense, shall be imprisoned for not more than 10 years, 

16 fined not more than $1,000,000, or both. 

17 ‘‘(c) FORFEITURE.— 

18 ‘‘(1) CRIMINAL FORFEITURE.— 

19 ‘‘(A) IN GENERAL.—The court, in impos20 ing penalties under subsection (b), shall order 

21 that the defendant forfeit to the United States 

22 any property involved in the offense, or a con23 spiracy to commit such offense, and any prop24 erty traceable thereto. 

25 ‘‘(B) PROCEDURE.—Section 413 of the 

26 Controlled Substances Act (21 U.S.C. 853) 


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•S 1241 IS

1 shall govern the seizure, restraint, and for2 feiture of property under this paragraph. 

3 ‘‘(2) CIVIL FORFEITURE.— 

4 ‘‘(A) IN GENERAL.—Any property involved 

5 in a violation of subsection (a), or a conspiracy 

6 to commit such violation, and any property 

7 traceable thereto may be seized and forfeited to 

8 the United States. 

9 ‘‘(B) PROCEDURE.—Seizures and forfeit10 ures under this paragraph shall be governed by 

11 the provisions of chapter 46 of title 18 relating 

12 to civil forfeitures, except that such duties, 

13 under customs laws described in section 981(d) 

14 of title 18, given to the Secretary of the Treas15 ury shall be performed by such officers, agents, 

16 and other persons as designated by the Sec17 retary of Homeland Security or the Attorney 

18 General. 

19 ‘‘(3) TREATMENT OF CERTAIN PROPERTY AS

20 INVOLVED IN THE OFFENSE.—In this subsection, 

21 the term ‘property involved in’ includes any assets 

22 credited to, attempted to be credited to, or contained 

23 in the account. 

24 ‘‘(d) FINANCIAL INSTITUTION.—In this section, the 

25 term ‘financial institution’ means any entity defined under 


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•S 1241 IS

1 section 5312(a)(2), or the regulations promulgated under 

2 this title, that is required to— 

3 ‘‘(1) implement a customer identification pro4 gram under this title, or the regulations promul5 gated under this title; or 

6 ‘‘(2) conduct customer due diligence under this 

7 title, or the regulations promulgated under this 

8 title.’’. 

9 (b) TABLE OF SECTIONS.—The table of sections for 

10 subchapter II of chapter 53 of title 31, United States 

11 Code, is amended by adding at the end the following: 

‘‘5333. Prohibition on concealment of ownership of account.’’. 

12 SEC. 19. PROHIBITION ON CONCEALMENT OF THE SOURCE 

13 OF ASSETS IN MONETARY TRANSACTIONS. 

14 (a) IN GENERAL.—Subchapter II of chapter 53 of 

15 title 31, United States Code, as amended by section 18 

16 of this Act, is amended by adding at the end the following: 

17 ‘‘§ 5334. Prohibition on concealment of the source of 

18 assets in monetary transactions 

19 ‘‘(a) IN GENERAL.—No person shall knowingly con20 ceal, falsify, or misrepresent, or attempt to conceal, falsify, 

21 or misrepresent, from or to a financial institution, a mate22 rial fact concerning the ownership or control of assets in23 volved in a monetary transaction if— 

24 ‘‘(1) the person or entity who owns or controls 

25 such assets is a senior foreign political figure, or any 


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•S 1241 IS

1 immediate family member or close associate of a 

2 senior foreign political figure, as set forth in this 

3 title or the regulations promulgated under this title; 

4 and 

5 ‘‘(2) the aggregate value of the assets involved 

6 in one or more such transactions is not less than 

7 $1,000,000. 

8 ‘‘(b) SOURCE OF FUNDS.—No person shall knowingly 

9 conceal, falsify, or misrepresent, or attempt to conceal, fal10 sify, or misrepresent, from or to a financial institution, 

11 a material fact concerning the source of funds in a mone12 tary transaction that— 

13 ‘‘(1) involves an entity found to be a primary 

14 money laundering concern under section 5318A or 

15 the regulations promulgated under this title; and 

16 ‘‘(2) violates the prohibitions or conditions pre17 scribed under section 5318A(b)(5) of this title or the 

18 regulations promulgated under this title. 

19 ‘‘(c) PENALTIES.—A person convicted of an offense 

20 under subsection (a) or (b), or a conspiracy to commit 

21 such offense, shall be imprisoned for not more than 10 

22 years, fined not more than $1,000,000, or both. 

23 ‘‘(d) FORFEITURE.— 

24 ‘‘(1) CRIMINAL FORFEITURE.— 


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•S 1241 IS

1 ‘‘(A) IN GENERAL.—The court, in impos2 ing sentence under subsection (c), shall order 

3 that the defendant forfeit to the United States 

4 any property involved in the offense and any 

5 property traceable thereto. 

6 ‘‘(B) PROCEDURE.—The seizure, restraint, 

7 and forfeiture of property under this paragraph 

8 shall be governed by section 413 of the Con9 trolled Substances Act (21 U.S.C. 853). 

10 ‘‘(2) CIVIL FORFEITURE.— 

11 ‘‘(A) IN GENERAL.—Any property involved 

12 in a violation of subsection (a) or (b), or a con13 spiracy to commit such violation, and any prop14 erty traceable thereto may be seized and for15 feited to the United States. 

16 ‘‘(B) PROCEDURE.—Seizures and forfeit17 ures under this paragraph shall be governed by 

18 the provisions of chapter 46 of title 18, relating 

19 to civil forfeitures, except that such duties, 

20 under the customs laws described in section 

21 981(d) of title 18 given to the Secretary of the 

22 Treasury shall be performed by such officers, 

23 agents, and other persons as may be designated 

24 for that purpose by the Secretary of Homeland 

25 Security or the Attorney General. 


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•S 1241 IS

1 ‘‘(e) DEFINITIONS.—In this section— 

2 ‘‘(1) the term ‘financial institution’ has the 

3 meaning given the term in section 5312(a)(2) of this 

4 title; and 

5 ‘‘(2) the term ‘monetary transaction’ means the 

6 deposit, withdrawal, transfer, or exchange, in or af7 fecting interstate or foreign commerce, of funds or 

8 a monetary instrument (as defined in section 

9 1956(c)(5) of title 18) by, through, or to a financial 

10 institution (as defined in section 1956 of title 18)— 

11 ‘‘(A) including any transaction that would 

12 be a financial transaction under section 

13 1956(c)(4)(B) of title 18; and 

14 ‘‘(B) not including any transaction nec15 essary to preserve a person’s right to represen16 tation as guaranteed by the Sixth Amendment 

17 to the Constitution of the United States.’’. 

18 (b) TABLE OF SECTIONS.—The table of sections for 

19 subchapter II of chapter 53 of title 31, United States 

20 Code, as amended by section 18 of this Act, is amended 

21 by adding at the end the following: 

‘‘5334. Prohibition on concealment of the source of assets in monetary transactions.’’. 

22 SEC. 20. RULE OF CONSTRUCTION. 

23 Nothing in this Act, or any amendment made by this 

24 Act, shall be construed to apply to the authorized law enVerDate Sep 11 2014 04:45 Jun 01, 2017 Jkt 069200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1241.IS S1241

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•S 1241 IS

1 forcement, protective, or intelligence activities of the 

2 United States or of an intelligence agency of the United 

3 States. 

Æ 


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