II 

112TH CONGRESS 

1ST SESSION S. 1731 

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

IN THE SENATE OF THE UNITED STATES 

OCTOBER 18, 2011 

Mr. GRASSLEY (for himself and Mrs. FEINSTEIN) 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 2011’’. 

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. Specified unlawful activity. 

Sec. 3. Interstate transportation of criminal proceeds and reverse money laundering. 

Sec. 4. Transportation or transhipment of blank checks in bearer form. 

Sec. 5. Bulk cash smuggling. 


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Sec. 6. Section 1957 violations involving commingled funds and structured 

transactions. 

Sec. 7. Charging money laundering as a course of conduct. 

Sec. 8. Illegal money transmitting businesses. 

Sec. 9. Knowledge that property is from the proceeds of a specific felony. 

Sec. 10. Extraterritorial jurisdiction. 

Sec. 11. Freezing bank accounts of persons arrested for offenses involving the 

movement of money across international borders. 

Sec. 12. Making the international money laundering statute apply to tax evasion. 

Sec. 13. Prohibiting money laundering through hawalas, other informal value 

transfer systems, and closely related transactions. 

Sec. 14. Technical amendment to restore wiretap authority for certain money 

laundering and counterfeiting offenses. 

Sec. 15. Conduct in aid of counterfeiting. 

Sec. 16. Prepaid access devices, digital currencies, or other similar instruments. 

Sec. 17. Procedure for issuing subpoenas in money laundering cases. 

Sec. 18. Danger pay allowance. 

Sec. 19. United States Secret Service use of proceeds derived from criminal investigations. 

Sec. 20. Authority of Secret Service to arrest persons in violation of money 

laundering laws. 

Sec. 21. Law enforcement regulations and cooperation. 

Sec. 22. Rule of construction. 

1 SEC. 2. SPECIFIED UNLAWFUL ACTIVITY. 

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

3 is amended to read as follows: 

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

5 means any act or activity constituting an offense in 

6 violation of the laws of the United States punishable 

7 by imprisonment for a term exceeding 1 year;’’. 

8 SEC. 3. INTERSTATE TRANSPORTATION OF CRIMINAL PRO9 CEEDS AND REVERSE MONEY LAUNDERING. 

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

11 United States Code, is amended to read as follows: 

12 ‘‘(a)(1) Whoever, in any of the circumstances set 

13 forth in subsection (d)— 


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1 ‘‘(A) knowingly conducts or attempts to conduct 

2 a monetary transaction involving the proceeds of 

3 some form of unlawful activity that is of a value 

4 greater than $10,000 and is derived from specified 

5 unlawful activity; or 

6 ‘‘(B) conducts or attempts to conduct a mone7 tary transaction involving property of a value great8 er than $10,000, with the intent to promote the car9 rying on of specified unlawful activity, 

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

11 ‘‘(2) Whoever, in any of the circumstances set forth 

12 in subsection (d), transports, attempts to transport, or 

13 conspires to transport more than $10,000 in currency, 

14 monetary instruments in bearer form, or precious metals 

15 and jewels in interstate commerce— 

16 ‘‘(A) knowing that the property being trans17 ported was derived from some form of unlawful ac18 tivity; or 

19 ‘‘(B) knowing that the property being trans20 ported was intended to be used to promote some 

21 form of unlawful activity, 

22 shall be punished as provided in subsection (b).’’. 

23 (b) PENALTY.—Section 1957(b) of title 18, United 

24 States Code, is amended— 


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1 (1) in paragraph (1), by striking ‘‘paragraph 

2 (2)’’ and inserting ‘‘paragraphs (2) and (3)’’; and 

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

4 ‘‘(3) The maximum period of incarceration for 

5 a person convicted of an offense under subsection 

6 (a)(1)(B) shall not exceed the statutory maximum 

7 for the offense being promoted.’’. 

8 (c) CONFORMING AMENDMENT.—Section 1957(f) of 

9 title 18, United States Code, is amended— 

10 (1) in paragraph (2), by striking ‘‘; and’’ and 

11 by inserting a semicolon; 

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

13 inserting ‘‘; and’’; and 

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

15 ‘‘(4) the term ‘conducts’ has the meaning given 

16 that term in section 1956 of this title.’’. 

17 (d) STATUTORY HEADING.—Section 1957 of title 18, 

18 United States Code, is amended, in the section heading, 

19 by inserting ‘‘or in support of criminal activity’’ 

20 after ‘‘specified unlawful activity’’. 

21 (e) CHAPTER ANALYSIS.—The item relating to sec22 tion 1957 in the table of sections for chapter 95 of title 

23 18, United States Code, is amended to read as follows: 

‘‘1957. Conducting monetary transactions in property derived from specified unlawful activity or in support of criminal activity.’’. 


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1 SEC. 4. 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 in excess of $10,000 if the in10 strument was drawn on an account that contained or was 

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

12 instrument was transported or the time period it was ne13 gotiated or was intended to be negotiated.’’. 

14 SEC. 5. BULK CASH SMUGGLING. 

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

16 amended— 

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

18 inserting ‘‘10 years’’; 

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

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

21 and 

22 (3) by inserting after paragraph (1) the fol23 lowing: 

24 ‘‘(2) FINE.— 

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

26 section shall be fined under title 18. 


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1 ‘‘(B) ENHANCED FINE FOR AGGRAVATED

2 CASES.—Whoever violates this section while vio3 lating another law of the United States, other 

4 than section 5316 or 5324(c), or as a part of 

5 a pattern of any unlawful activity, including a 

6 violation of section 5316 or 5324(c), shall be 

7 fined twice the amount provided in subsection 

8 (b)(3) or (c)(3) of section 3571 of title 18.’’. 

9 SEC. 6. SECTION 1957 VIOLATIONS INVOLVING COMMIN10 GLED FUNDS AND STRUCTURED TRANS11 ACTIONS. 

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

13 amended by adding at the end the following: 

14 ‘‘(g) The Government may satisfy the $10,000 re15 quirement in subsection (a)(1) by showing that— 

16 ‘‘(1) the monetary transaction involved the 

17 transfer, withdrawal, encumbrance, or other disposi18 tion of more than $10,000 from an account in which 

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

20 activity was commingled with other funds; or 

21 ‘‘(2) the defendant conducted a series of mone22 tary transactions in amounts under $10,000 that ex23 ceeded $10,000 in the aggregate and that were 

24 closely related to each other in terms of such factors 

25 as time, the identity of the parties involved, the naVerDate Mar 15 2010 02:58 Oct 19, 2011 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1731.IS S1731

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1 ture or purpose of the transactions or the manner in 

2 which they were conducted.’’. 

3 SEC. 7. CHARGING MONEY LAUNDERING AS A COURSE OF 

4 CONDUCT. 

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

6 States Code, is amended by adding at the end the fol7 lowing: 

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

9 this section that are part of the same scheme or con10 tinuing course of conduct may be charged, at the election 

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

12 information.’’. 

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

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

15 1957’’ and inserting ‘‘, section 1957, or section 1960’’. 

16 SEC. 8. ILLEGAL MONEY TRANSMITTING BUSINESSES. 

17 (a) MONEY TRANSMITTING BUSINESS DEFINED.— 

18 Section 1960(b)(2) of title 18, United States Code, is 

19 amended to read as follows: 

20 ‘‘(2) the term ‘money transmitting business’ 

21 means any business other than the United States 

22 Postal Service, which provides check cashing, cur23 rency exchange, money transmitting or remittance 

24 services, or issues, sells, or redeems money orders, 

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1 rencies, or other similar instruments, or any other 

2 person or association of persons, formal or informal, 

3 engaging as a business in transporting, transferring, 

4 exchanging, or transmitting currency or funds in 

5 any form, including any person or association of per6 sons, formal or informal, engaging as a business in 

7 any informal money transfer system, monetary value 

8 represented in digital electronic format, or any net9 work of people who engage as a business in facili10 tating the transfer of money domestically or inter11 nationally outside of the conventional financial insti12 tutions system.’’. 

13 (b) GENERAL INTENT REQUIREMENT.—Section 

14 1960(b)(1)(B) of title 18, United States Code, is amended 

15 by inserting the following before the semicolon: ‘‘, whether 

16 or not the defendant knew that the operation was required 

17 to comply with such registration requirements’’. 

18 (c) TECHNICAL AMENDMENTS.—Section 1960 of title 

19 18, United States Code, is amended— 

20 (1) in the section heading, by striking ‘‘unli21 censed’’ and inserting ‘‘illegal’’; 

22 (2) in subsection (a), by striking ‘‘unlicensed’’ 

23 and inserting ‘‘illegal’’; 

24 (3) in subsection (b)(1), by striking ‘‘unli25 censed’’ and inserting ‘‘illegal’’; and 


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1 (4) in subsection (b)(1)(C), by inserting ‘‘, ex2 change,’’ after ‘‘transportation’’. 

3 SEC. 9. KNOWLEDGE THAT PROPERTY IS FROM THE PRO4 CEEDS OF A SPECIFIC FELONY. 

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

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

7 and regardless of whether or not the person knew that 

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

9 the end. 

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

11 1956(a) of title 18, United States Code, is amended— 

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

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

14 and inserting the following: 

15 ‘‘(B) knowing that the transaction— 

16 ‘‘(i) conceals or disguises, or is in17 tended to conceal or disguise, the nature, 

18 source, location, ownership, or control of 

19 the proceeds of some form of unlawful ac20 tivity; or 

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

22 transaction reporting requirement under 

23 State or Federal law,’’; and 


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

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

3 and inserting the following: 

4 ‘‘(B) knowing that the monetary instru5 ment or funds involved in the transportation, 

6 transmission, or transfer represent the proceeds 

7 of some form of unlawful activity, and knowing 

8 that such transportation, transmission, or 

9 transfer— 

10 ‘‘(i) conceals or disguises, or is in11 tended to conceal or disguise, the nature, 

12 source, location, ownership, or control of 

13 the proceeds of some form of unlawful ac14 tivity; or 

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

16 transaction reporting requirement under 

17 State or Federal law,’’. 

18 SEC. 10. EXTRATERRITORIAL JURISDICTION. 

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

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

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

22 States’’. 


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1 SEC. 11. FREEZING BANK ACCOUNTS OF PERSONS AR2 RESTED FOR OFFENSES INVOLVING THE 

3 MOVEMENT OF MONEY ACROSS INTER4 NATIONAL BORDERS. 

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

6 amended by adding at the end the following: 

7 ‘‘(5)(A) If a person is arrested or charged in 

8 connection with an offense described in subpara9 graph (C) involving the movement of funds into or 

10 out of the United States, the Attorney General may 

11 apply to any Federal judge or magistrate judge in 

12 the district in which the arrest is made or where the 

13 charges are filed for an ex parte order restraining 

14 any account held by the person arrested or charged 

15 for not more than 30 days, except that such 30-day 

16 time period may be extended for good cause shown 

17 at a hearing conducted in the manner provided in 

18 Rule 43(e) of the Federal Rules of Civil Procedure. 

19 The court may receive and consider evidence and in20 formation submitted by the Government that would 

21 be inadmissible under the Federal Rules of Evi22 dence. 

23 ‘‘(B) The application for the restraining order 

24 referred to in subparagraph (A) shall— 

25 ‘‘(i) identify the offense for which the per26 son has been arrested or charged; 


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1 ‘‘(ii) identify the location and description 

2 of the accounts to be restrained; and 

3 ‘‘(iii) state that the restraining order is 

4 needed to prevent the removal of the funds in 

5 the account by the person arrested or charged, 

6 or by others associated with such person, dur7 ing the time needed by the Government to con8 duct such investigation as may be necessary to 

9 establish whether there is probable cause to be10 lieve that the funds in the accounts are subject 

11 to forfeiture in connection with the commission 

12 of any criminal offense. 

13 ‘‘(C) A restraining order may be issued pursu14 ant to subparagraph (A) if a person is arrested or 

15 charged with any offense for which forfeiture is au16 thorized under this title, title 31, or the Controlled 

17 Substances Act. 

18 ‘‘(D) For purposes of this section— 

19 ‘‘(i) the term ‘account’ includes any safe 

20 deposit box and any account (as defined in 

21 paragraphs (1) and (2) of section 5318A(e) of 

22 title 31) at any financial institution; and 

23 ‘‘(ii) the term ‘account held by the person 

24 arrested or charged’ includes an account held in 

25 the name of such person, and any account over 


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1 which such person has effective control as a sig2 natory or otherwise. 

3 ‘‘(E) Restraint pursuant to this paragraph shall 

4 not be deemed a ‘seizure’ for purposes of subsection 

5 983(a) of this title. 

6 ‘‘(F) A restraining order issued pursuant to 

7 this paragraph may be executed in any district in 

8 which the subject account is found, or transmitted 

9 to the central authority of any foreign State for 

10 service in accordance with any treaty or other inter11 national agreement.’’. 

12 SEC. 12. MAKING THE INTERNATIONAL MONEY LAUN13 DERING STATUTE APPLY TO TAX EVASION. 

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

15 Code, is amended by— 

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

17 promote’’; and 

18 (2) adding at the end the following: 

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

20 constituting a violation of section 7201 or 7206 

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


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1 SEC. 13. PROHIBITING MONEY LAUNDERING THROUGH 

2 HAWALAS, OTHER INFORMAL VALUE TRANS3 FER SYSTEMS, AND CLOSELY RELATED 

4 TRANSACTIONS. 

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

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

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

8 inserting ‘‘For purposes of this paragraph and section 

9 1957, a financial transaction or a monetary transaction’’. 

10 SEC. 14. TECHNICAL AMENDMENT TO RESTORE WIRETAP 

11 AUTHORITY FOR CERTAIN MONEY LAUN12 DERING AND COUNTERFEITING OFFENSES. 

13 (a) CURRENCY REPORTING OFFENSES.—Section 

14 2516(1)(g) of title 18, United States Code, is amended 

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

16 Code (relating to structuring transactions to evade report17 ing requirement prohibited’’ and inserting ‘‘or sections 

18 5324 and 5332 of title 31, United States Code (relating 

19 to structuring financial transactions and bulk cash smug20 gling)’’. 

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

22 title 18, United States Code, is amended by inserting ‘‘sec23 tion 1960 (relating to illegal money transmitting busi24 nesses),’’ before ‘‘section 659’’. 


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

2 18, United States Code, is amended by striking ‘‘or 473’’ 

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

4 SEC. 15. CONDUCT IN AID OF COUNTERFEITING. 

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

6 States Code, is amended by inserting after the paragraph 

7 beginning ‘‘Whoever has in his control, custody, or posses8 sion any plate’’ the following: 

9 ‘‘Whoever, with intent to defraud, has custody, con10 trol, or possession of any material, tool, machinery, or 

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

12 or counterfeit any obligation or other security of the 

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

14 except under the authority of the Secretary of the Treas15 ury; or’’. 

16 (b) FOREIGN OBLIGATIONS AND SECURITIES.—Sec17 tion 481 of title 18, United States Code, is amended by 

18 inserting after the paragraph beginning ‘‘Whoever, with 

19 intent to defraud’’ the following: 

20 ‘‘Whoever, with intent to defraud, has custody, con21 trol, or possession of any material, tool, machinery, or 

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

23 or counterfeit any obligation or other security of any for24 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. 16. 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) by striking paragraph (1)(K) and inserting 

6 the following: 

7 ‘‘(K) an issuer, redeemer, or cashier or 

8 travelers’ checks, checks, money orders, prepaid 

9 access devices, digital currencies, or other simi10 lar instruments;’’; 

11 (2) in paragraph (3)(C), 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 value 

19 of funds that have been paid in advance and can be 

20 retrievable and transferable at some point in the fu21 ture.’’. 

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) has had on law enforcement, the prepaid 

3 access industry, and consumers; and 

4 (2) the implementation and enforcement by the 

5 Department of Treasury of the final rule on Defini6 tions and Other Regulations Relating to Prepaid Ac7 cess (76 Fed. Reg. 45403), issued July 26, 2011. 

8 (c) CUSTOMS AND BORDER PROTECTION STRATEGY

9 FOR PREPAID ACCESS DEVICES.—Not later than 18 

10 months after the date of enactment of this Act, the Sec11 retary of Homeland Security, in consultation with the 

12 Commission of the U.S. Customs and Border Protection, 

13 shall submit to Congress a report detailing a strategy to 

14 interdict and detect prepaid access devices, digital cur15 rencies, or other similar instruments, at border crossings 

16 and other ports of entry for the United States. The report 

17 shall include an assessment of infrastructure needs to 

18 carry out the strategy detailed in the report. 

19 SEC. 17. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY 

20 LAUNDERING CASES. 

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

22 States Code, is amended by adding at the end the fol23 lowing: 

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

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


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1 Secretary of Homeland Security may issue a subpoena in 

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

3 1960, or sections 5316, 5324, 5331 or 5332 of title 31, 

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

5 3486.’’. 

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

7 5318(k)(3)(A) of title 31, United States Code, is amend8 ed— 

9 (1) in clause (i)— 

10 (A) by striking ‘‘related to such cor11 respondent account’’; and 

12 (B) by striking ‘‘or the Attorney General’’ 

13 and inserting ‘‘, the Attorney General, or the 

14 Secretary of Homeland Security’’; and 

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

16 ‘‘(iii) GRAND JURY OR TRIAL SUB17 POENA.—In addition to a subpoena issued 

18 by the Attorney General, Secretary of the 

19 Treasury, or the Secretary of Homeland 

20 Security under clause (i), a subpoena 

21 under clause (i) includes a grand jury or 

22 trial subpoena requested by the Govern23 ment.’’. 


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1 (c) FAIR CREDIT REPORTING ACT AMENDMENT.— 

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

3 U.S.C. 1681b(a)(1)) is amended— 

4 (1) by striking ‘‘or’’; and 

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

6 ‘‘, or a subpoena issued under section 5318 of title 

7 31 or section 3486 of title 18, United States Code’’. 

8 (d) OBSTRUCTION OF JUSTICE.—Section 

9 1510(b)(3)(B) of title 18, United States Code, is amend10 ed— 

11 (1) in the matter before clause (i), by striking 

12 ‘‘or a Department of Justice Subpoena (issued 

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

14 subpoena issued under section 3486 of title 18, or 

15 an order or subpoena issued pursuant to section 

16 3512 of title 18, section 5318 of title 31, or section 

17 1782 of title 28,’’; and 

18 (2) in clause (i), by inserting ‘‘, 1960, or an of19 fense against a foreign nation constituting specified 

20 unlawful activity under section 1956, or a foreign of21 fense for which enforcement of a foreign forfeiture 

22 judgment could be brought under section 2467 of 

23 title 28’’ after ‘‘1957’’. 


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

2 1120(b)(1)(A) of the Right to Financial Privacy Act of 

3 1978 (12 U.S.C. 3420(b)(1)(A)) is amended by striking— 

4 (1) ‘‘or 1957’’ and inserting ‘‘, 1957, or 1960’’; 

5 and 

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

7 5322, 5324, 5331, and 5332’’. 

8 SEC. 18. DANGER PAY ALLOWANCE. 

9 Section 151 of the Foreign Relations Authorization 

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

11 is amended by striking ‘‘Drug Enforcement Administra12 tion or Federal Bureau of Investigation’’ and inserting 

13 ‘‘Drug Enforcement Administration, Federal Bureau of 

14 Investigation, Immigration and Customs Enforcement, 

15 Customs and Border Protection, or United States Secret 

16 Service’’. 

17 SEC. 19. UNITED STATES SECRET SERVICE USE OF PRO18 CEEDS DERIVED FROM CRIMINAL INVESTIGA19 TIONS. 

20 (a) IN GENERAL.—With respect to any undercover 

21 investigative operation of the United States Secret Service 

22 (hereafter referred to in this section as the ‘‘Secret Serv23 ice’’) that is necessary for the detection and prosecution 

24 of crimes against the United States—– 


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1 (1) sums appropriated for the Secret Service, 

2 including unobligated balances available from prior 

3 fiscal years, may be used for purchasing property, 

4 buildings, and other facilities, and for leasing space, 

5 within the United States, the District of Columbia, 

6 and the territories and possessions of the United 

7 States, without regard to sections 1341 and 3324 of 

8 title 31, United States Code, section 8111 of title 

9 40, sections 3732(a) and 3741 of the Revised Stat10 utes of the United States (41 U.S.C. 11(a) and 22), 

11 and sections 304(a) and 305 of the Federal Prop12 erty and Administrative Services Act of 1949 (41 

13 U.S.C. 254(a) and 255); 

14 (2) sums appropriated for the Secret Service, 

15 including unobligated balances available from prior 

16 fiscal years, may be used to establish or to acquire 

17 proprietary corporations or business entities as part 

18 of such undercover operation, and to operate such 

19 corporations or business entities on a commercial 

20 basis, without regard to sections 9102 and 9103 of 

21 title 31, United States Code; 

22 (3) sums appropriated for the Secret Service, 

23 including unobligated balances available from prior 

24 fiscal years and the proceeds from such undercover 

25 operation, may be deposited in banks or other finanVerDate Mar 15 2010 02:58 Oct 19, 2011 Jkt 019200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S1731.IS S1731

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1 cial institutions, without regard to section 648 of 

2 title 18, and section 3302 of title 31, United States 

3 Code; and 

4 (4) proceeds from such undercover operation 

5 may be used to offset necessary and reasonable ex6 penses incurred in such operation, without regard to 

7 section 3302 of title 31, United States Code. 

8 (b) WRITTEN CERTIFICATION.—The authority set 

9 forth in subsection (a) may be exercised only upon the 

10 written certification of the Director of the Secret Service 

11 or his designee that any action authorized by any para12 graph of such subsection is necessary for the conduct of 

13 an undercover investigative operation. Such certification 

14 shall continue in effect for the duration of such operation, 

15 without regard to fiscal years. 

16 (c) DEPOSIT OF PROCEEDS IN TREASURY.—As soon 

17 as practicable after the proceeds from an undercover in18 vestigative operation with respect to which an action is 

19 authorized and carried out under paragraphs (3) and (4) 

20 of subsection (a) are no longer necessary for the conduct 

21 of such operation, such proceeds or the balance of such 

22 proceeds remaining at the time shall be deposited in the 

23 Treasury of the United States as miscellaneous receipts. 

24 (d) REPORTING AND DEPOSIT OF PROCEEDS UPON

25 DISPOSITION OF CERTAIN BUSINESS ENTITIES.—If a corVerDate Mar 15 2010 02:58 Oct 19, 2011 Jkt 019200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S1731.IS S1731

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1 poration or business entity established or acquired as part 

2 of an undercover investigative operation under paragraph 

3 (2) of subsection (a) with a net value of over $50,000 is 

4 to be liquidated, sold, or otherwise disposed of, the Secret 

5 Service, as much in advance as the Director or designee 

6 determines is practicable, shall report the circumstance to 

7 the Secretary of Homeland Security. The proceeds of the 

8 liquidation, sale, or other disposition, after obligations are 

9 met, shall be deposited in the Treasury of the United 

10 States as miscellaneous receipts. 

11 (e) FINANCIAL AUDITS AND REPORTS.— 

12 (1) AUDITS.—The Secret Service shall conduct 

13 detailed financial audits of closed undercover inves14 tigative operations for which a written certification 

15 was made pursuant to subsection (b) on a quarterly 

16 basis and shall report the results of the audits in 

17 writing to the Secretary of Homeland Security. 

18 (2) REPORTS.—The Secretary of Homeland Se19 curity shall annually submit to the Committees on 

20 Appropriations of the Senate and House of Rep21 resentatives, at the time that the President’s budget 

22 is submitted under section 1105(a) of title 31, a 

23 summary of such audits. 


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1 SEC. 20. AUTHORITY OF SECRET SERVICE TO ARREST PER2 SONS IN VIOLATION OF MONEY LAUNDERING 

3 LAWS. 

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

5 is amended— 

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

7 transactions,’’ after ‘‘devices’’; and 

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

9 SEC. 21. LAW ENFORCEMENT REGULATIONS AND CO10 OPERATION. 

11 Not later than 1 year following the date of enactment 

12 of this Act, the Attorney General, Secretary of Treasury, 

13 and Secretary of Homeland Security, in consultation with 

14 the Director of National Intelligence, shall coordinate to— 

15 (1) promulgate regulations as necessary to im16 plement the provisions of this Act; and 

17 (2) issue other informal guidelines with respect 

18 to money laundering, terrorist financing, counter19 feiting, and other matters related to the provisions 

20 of this Act, including— 

21 (A) investigative guidelines; and 

22 (B) memorandum of understanding in re23 gards to investigations and investigative au24 thorities. 


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1 SEC. 22. RULE OF CONSTRUCTION. 

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

3 Act, shall be construed to apply to the authorized law en4 forcement, protective, or intelligence activities of the 

5 United States or of an intelligence agency of the United 

6 States. 

Æ 


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