I

104TH CONGRESS

2D SESSION H. R. 3007

To establish an interagency task force to design and implement a plan

for determining the extent to which United States currency is held

in foreign countries and estimating the extent to which such currency

is being counterfeited outside the United States, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 5, 1996

Mr. BACHUS (for himself, Mr. LEACH, and Mr. SPRATT) introduced the following bill; which was referred to the Committee on Banking and Financial Services, and in addition to the Committee on the Judiciary, for a

period to be subsequently determined by the Speaker, in each case for

consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To establish an interagency task force to design and implement a plan for determining the extent to which United

States currency is held in foreign countries and estimating the extent to which such currency is being counterfeited outside the United States, 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 ‘‘International Counter5 feiting Prevention Act of 1996’’.
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1 SEC. 2. INTERAGENCY TASK FORCE ON INTERNATIONAL

2 COUNTERFEITING OF UNITED STATES CUR3 RENCY.

4 (a) ESTABLISHMENT.—

5 (1) IN GENERAL.—The Secretary of the Treas6 ury, the Chairman of the Board of Governors of the

7 Federal Reserve System, and the Secretary of State

8 shall establish, and appoint the members of, an

9 interagency task force (hereafter in this Act referred

10 to as the ‘‘task force’’) to—

11 (A) monitor the use and holding of United

12 States currency in foreign countries;

13 (B) produce a statistically valid estimate of

14 the amount of counterfeit United States cur15 rency that is produced, passed, and possessed

16 outside the United States each year; and

17 (C) coordinate the activities of the agencies

18 represented on the task force in carrying out

19 the duties described in subparagraphs (A) and

20 (B).

21 (2) COMPOSITION OF TASK FORCE.—The task

22 force shall consist of the following:

23 (A) The Under Secretary of the Treasury

24 for Enforcement, or a designee of the Under

25 Secretary.
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1 (B) The Director of the United States Se2 cret Service, or a designee of the Director.

3 (C) The Director of the Bureau of Engrav4 ing and Printing, or a designee of the Director.

5 (D) Such other officers of the Department

6 of the Treasury, including any officer in any

7 bureau, office, or service within the department,

8 as the Secretary of the Treasury may determine

9 to be appropriate, or any designee of any such

10 officer.

11 (E) A member of the Board of Governors

12 of the Federal Reserve System as designated by

13 the Chairman of such Board, or a designee of

14 such member.

15 (F) The general counsel of the Board of

16 Governors of the Federal Reserve System, or a

17 designee of the general counsel.

18 (G) Such other officers of the Board of

19 Governors of the Federal Reserve System as the

20 Chairman of such Board may determine to be

21 appropriate, or a designee of any such officer.

22 (H) Such officers of the Department of

23 State as the Secretary of State may determine

24 to be appropriate, or a designee of any such of25 ficer.
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1 (3) REPRESENTATION OF OTHER AGENCIES

2 AND DEPARTMENTS.—

3 (A) IN GENERAL.—The Secretary of the

4 Treasury, the Chairman of the Board of Gov5 ernors of the Federal Reserve System, and the

6 Secretary of State may include representatives

7 of any other agency or department of the Unit8 ed States on the task force, with the concur9 rence of the head of such agency or depart10 ment.

11 (B) APPOINTMENT OF MEMBERS OF TASK

12 FORCE.—The representative of any agency or

13 department referred to in subparagraph (A)

14 shall consist of—

15 (i) the head of such agency or depart16 ment, or a designee of such head; and

17 (ii) such other officers of such agency

18 or department as the head of such agency

19 or department may determine to be appro20 priate, or a designee of any such officer.

21 (4) CHAIRPERSON.—The Secretary of the

22 Treasury shall serve as the chairperson of the task

23 force.

24 (b) EVALUATION AUDIT PLAN.—
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1 (1) IN GENERAL.—The task force shall estab2 lish an effective international evaluation audit plan

3 that is designed to enable the agencies represented

4 on the task force to carry out the duties described

5 in subparagraphs (A) and (B) of subsection (a)(1)

6 on a regular and thorough basis.

7 (2) SUBMISSION OF DETAILED WRITTEN SUM8 MARY.—The task force shall submit a detailed writ9 ten summary of the evaluation audit plan developed

10 pursuant to paragraph (1) to the Congress before

11 the end of the 6-month period beginning on the date

12 of the enactment of this Act.

13 (3) 1ST EVALUATION AUDIT UNDER PLAN.—

14 The task force shall begin the first evaluation audit

15 pursuant to the evaluation audit plan no later than

16 the end of the 1-year period beginning on the date

17 of the enactment of this Act.

18 (4) SUBSEQUENT EVALUATION AUDITS.—At

19 least 1 evaluation audit shall be performed pursuant

20 to the evaluation audit plan during each 2-year pe21 riod beginning after the date of the commencement

22 of the evaluation audit referred to in paragraph (3).

23 (c) REPORTS.—

24 (1) IN GENERAL.—The task force shall submit

25 a written report to the Committee on Banking and
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1 Financial Services of the House of Representatives

2 and the Committee on Banking, Housing, and

3 Urban Affairs of the Senate on the results of each

4 evaluation audit conducted pursuant to subsection

5 (b) within 90 days after the completion of the eval6 uation audit.

7 (2) CONTENTS.—In addition to such other in8 formation as the task force may determine to be ap9 propriate, each report submitted to the Congress

10 pursuant to paragraph (1) shall include the follow11 ing information:

12 (A) A detailed description of the evaluation

13 audit process and the methods used to detect

14 counterfeit currency.

15 (B) The method used to determine the cur16 rency sample examined in connection with the

17 evaluation audit and an analysis of the statis18 tical significance of the sample examined.

19 (C) A list of the countries, types of finan20 cial institutions, and other entities included.

21 (D) The total amount of United States

22 currency and the total quantity of each denomi23 nation found at each type of evaluation audit

24 site.
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1 (E) The total amount of counterfeit United

2 States currency and the total quantity of each

3 counterfeit denomination found at each type of

4 evaluation audit site.

5 (F) An analysis of the types of counterfeit

6 currency discovered and any recurring patterns

7 of counterfeiting, including currency that fits

8 the family of counterfeit currency designated by

9 the United States Secret Service as C—14342.

10 (3) CLASSIFICATION OF INFORMATION.—

11 (A) IN GENERAL.—To the greatest extent

12 possible, each report submitted to the Congress

13 under this subsection shall be submitted in an

14 unclassified form.

15 (B) CLASSIFIED AND UNCLASSIFIED

16 FORMS.—If, in the interest of submitting a

17 complete report under this subsection, the task

18 force determines that it is necessary to include

19 classified information in the report, the report

20 shall be submitted in a classified and an unclas21 sified form.
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1 SEC. 3. LAW ENFORCEMENT AND SENTENCING PROVISIONS

2 RELATING TO INTERNATIONAL COUNTER3 FEITING OF UNITED STATES CURRENCY.

4 (a) FINDINGS.—The Congress hereby finds the fol5 lowing:

6 (1) United States currency is being counter7 feited outside the United States.

8 (2) The 103d Congress enacted, with the ap9 proval of the President on September 13, 1994, sec10 tion 470 of title 18, United States Code, making

11 such activity a crime under the laws of the United

12 States.

13 (3) The expeditious posting of agents of the

14 United States Secret Service to overseas posts,

15 which is necessary for the effective enforcement of

16 section 470 and related criminal provisions, has been

17 delayed.

18 (4) While section 470 of title 18, United States

19 Code, provides for a maximum term of imprisonment

20 of 20 years as opposed to a maximum term of 15

21 years for domestic counterfeiting, the United States

22 Sentencing Commission has failed to provide, in its

23 sentencing guidelines, for an appropriate enhance24 ment of punishment for defendants convicted of

25 counterfeiting United States currency outside the

26 United States.
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1 (b) TIMELY CONSIDERATION OF REQUESTS FOR

2 CONCURRENCE IN CREATION OF OVERSEAS POSTS.—

3 (1) IN GENERAL.—The Secretary of State

4 shall—

5 (A) consider in a timely manner the re6 quest by the Secretary of the Treasury for the

7 placement of such number of agents of the

8 United States Secret Service as the Secretary of

9 the Treasury considers appropriate in posts in

10 overseas embassies; and

11 (B) reach an agreement with the Secretary

12 of the Treasury on such posts as soon as pos13 sible and, in any event, not later than Decem14 ber 31, 1996.

15 (2) COOPERATION OF TREASURY REQUIRED.—

16 The Secretary of the Treasury shall promptly pro17 vide any information requested by the Secretary of

18 State in connection with such requests.

19 (3) REPORTS REQUIRED.—The Secretary of the

20 Treasury and the Secretary of State shall each sub21 mit, by February 1, 1997, a written report to the

22 Committee on Banking and Financial Services of the

23 House of Representatives and the Committee on

24 Banking, Housing, and Urban Affairs of the Senate

25 explaining the reasons for the rejection, if any, of
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1 any proposed post and the reasons for the failure, if

2 any, to fill any approved post by such date.

3 (c) ENHANCED PENALTIES FOR INTERNATIONAL

4 COUNTERFEITING OF UNITED STATES CURRENCY.—Pur5 suant to the authority of the United States Sentencing

6 Commission under section 994 of title 28, United States

7 Code, the Commission shall amend the sentencing guide8 lines prescribed by the Commission to provide an appro9 priate enhancement of the punishment for a defendant

10 convicted under section 470 of title 18 of such Code.

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