I

103D CONGRESS

1ST SESSION H. R. 3235

To amend subchapter II of chapter 53 of title 31, United States Code,

to improve enforcement of antimoney laundering laws, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 7, 1993

Mr. GONZALEZ (for himself and Mr. NEAL of North Carolina) introduced the

following bill; which was referred to the Committee on Banking, Finance

and Urban Affairs

NOVEMBER 10, 1993

Additional sponsors: Mr. FLAKE, Mr. KANJORSKI, Mr. PICKLE, Mr.

VELA ́ZQUEZ, and Mr. HINCHEY

A BILL

To amend subchapter II of chapter 53 of title 31, United

States Code, to improve enforcement of antimoney laundering laws, 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 ‘‘Antimoney Laundering

5 Act of 1993’’.
2

•HR 3235 SC

1 SEC. 2. REFORM OF CTR EXEMPTION REQUIREMENTS TO

2 REDUCE NUMBER AND SIZE OF REPORTS

3 CONSISTENT WITH EFFECTIVE LAW EN4 FORCEMENT.

5 (a) IN GENERAL.—Section 5313 of title 31, United

6 States Code, is amended by adding at the end the follow7 ing new subsections:

8 ‘‘(d) MANDATORY EXEMPTIONS FROM REPORTING

9 REQUIREMENTS.—

10 ‘‘(1) IN GENERAL.—The Secretary of the

11 Treasury shall exempt, pursuant to section

12 5318(a)(5), a depository institution from the report13 ing requirements of subsection (a) (and regulations

14 prescribed under such subsection) with respect to

15 transactions between the depository institution and

16 the following categories of entities:

17 ‘‘(A) Another depository institution.

18 ‘‘(B) A department or agency of the

19 United States, any State, or any political sub20 division of any State, including any entity es21 tablished under the laws of the United States,

22 any State, or any political subdivision of any

23 State, or under an interstate compact between

24 2 or more States, which exercises governmental

25 authority on behalf of the United States, the

26 State, or the political subdivision.
3

•HR 3235 SC

1 ‘‘(C) Any business or category of business

2 the reports on which have little or no value for

3 law enforcement purposes.

4 ‘‘(2) NOTICE OF EXEMPTION.—The Secretary

5 of the Treasury shall publish in the Federal Register

6 at such times as the Secretary determines to be ap7 propriate (but not less frequently than once each

8 year) a list of all the entities whose transactions

9 with a depository institution are exempt under this

10 subsection from the reporting requirements of sub11 section (a) (and regulations prescribed under such

12 subsection).

13 ‘‘(e) DISCRETIONARY EXEMPTIONS FROM REPORT14 ING REQUIREMENTS.—

15 ‘‘(1) IN GENERAL.—The Secretary of the

16 Treasury may exempt, pursuant to section

17 5318(a)(5), a depository institution from the report18 ing requirements of subsection (a) (and regulations

19 prescribed under such subsection) with respect to

20 transactions between the depository institution and a

21 qualified business customer of the institution on the

22 basis of information submitted to the Secretary by

23 the institution in accordance with procedures which

24 the Secretary shall establish.
4

•HR 3235 SC

1 ‘‘(2) QUALIFIED BUSINESS CUSTOMER DE2 FINED.—For purposes of this subsection, the term

3 ‘qualified business customer’ means a business

4 which—

5 ‘‘(A) maintains a transaction account (as

6 defined in section 19(b)(1)(C) of the Federal

7 Reserve Act) at the depository institution;

8 ‘‘(B) frequently engages in transactions

9 with the depository institution which are subject

10 to the reporting requirements of subsection (a)

11 (and regulations prescribed under such sub12 section); and

13 ‘‘(C) meets criteria which the Secretary de14 termines are sufficient to ensure that the pur15 poses of this subchapter are carried out without

16 requiring a report with respect to such trans17 actions.

18 ‘‘(3) CRITERIA FOR EXEMPTION.—The Sec19 retary of the Treasury shall establish, by regulation,

20 the criteria for granting and maintaining an exemp21 tion under paragraph (1).

22 ‘‘(4) GUIDELINES.—

23 ‘‘(A) IN GENERAL.—The Secretary of the

24 Treasury shall establish guidelines for deposi-
5

•HR 3235 SC

1 tory institutions to follow in selecting customers

2 for an exemption under this subsection.

3 ‘‘(B) CONTENTS.—The guidelines may in4 clude a description of the types of businesses or

5 an itemization of specific businesses for which

6 no exemption will be granted under this sub7 section to any depository institution.

8 ‘‘(5) ANNUAL REVIEW.—The Secretary of the

9 Treasury shall prescribe regulations requiring each

10 depository institution to—

11 ‘‘(A) review, at least once each year, the

12 qualified business customers of such institution

13 with respect to whom an exemption has been

14 granted under this subsection; and

15 ‘‘(B) upon the completion of such review,

16 resubmit information about such customers,

17 with such modifications as the institution deter18 mines to be appropriate, to the Secretary for

19 the Secretary’s approval.

20 ‘‘(f) PROVISIONS APPLICABLE TO MANDATORY AND

21 DISCRETIONARY EXEMPTIONS.—

22 ‘‘(1) LIMITATION ON LIABILITY OF DEPOSITORY

23 INSTITUTIONS.—No depository institution shall be

24 subject to any penalty which may be imposed under

25 this subchapter for the failure of the institution to
6

•HR 3235 SC

1 file a report with respect to a transaction with a cus2 tomer for whom an exemption has been granted

3 under subsection (d) or (e) unless the institution—

4 ‘‘(A) files false or incomplete information

5 to the Secretary with respect to the transaction

6 or the customer engaging in the transaction; or

7 ‘‘(B) has reason to believe at the time the

8 exemption is granted or the transaction is en9 tered into that the customer or the transaction

10 does not meet the criteria established for grant11 ing such exemption.

12 ‘‘(2) COORDINATION WITH OTHER PROVI13 SIONS.—Any exemption granted by the Secretary of

14 the Treasury under section 5318(a) in accordance

15 with this section, and any transaction which is sub16 ject to such exemption, shall be subject to any other

17 provision of law applicable to such exemption, in18 cluding—

19 ‘‘(A) the authority of the Secretary, under

20 section 5318(a)(5), to revoke such exemption at

21 any time; and

22 ‘‘(B) any requirement to report, or any au23 thority to require a report on, any possible vio24 lation of any law or regulation or any suspected

25 criminal activity.
7

•HR 3235 SC

1 ‘‘(g) DEPOSITORY INSTITUTION DEFINED.—For pur2 poses of this section, the term ‘depository institution’ has

3 the meaning given to such term in section 19(b)(1)(A) of

4 the Federal Reserve Act.’’.

5 (b) REPORT REDUCTION GOAL; REPORTS.—

6 (1) IN GENERAL.—In implementing the amend7 ment made by subsection (a), the Secretary of the

8 Treasury shall seek to reduce, within a reasonable

9 period of time, the number of reports required to be

10 filed in the aggregate by depository institutions pur11 suant to section 5313(a) of title 31, United States

12 Code, by at least 30 percent of the number filed dur13 ing the year preceding the date of the enactment of

14 this Act.

15 (2) INTERIM REPORT.—The Secretary of the

16 Treasury shall submit a report to the Congress not

17 later than the end of the 180-day period beginning

18 on the date of the enactment of this Act on the

19 progress made by the Secretary in implementing the

20 amendment made by subsection (a).

21 (3) ANNUAL REPORT.—The Secretary of the

22 Treasury shall submit an annual report to the Con23 gress after the end of each of the first 5 calendar

24 years which begin after the date of the enactment of

25 this Act on the extent to which the Secretary has re-
8

•HR 3235 SC

1 duced the overall number of currency transaction re2 ports filed with the Secretary pursuant to section

3 5313(a) of title 31, United States Code, consistently

4 with the purposes of such section and effective law

5 enforcement.

6 (c) STREAMLINED CURRENCY TRANSACTION RE7 PORTS.—The Secretary of the Treasury shall take such

8 action as may be appropriate to redesign the format of

9 reports required to be filed by any depository institution

10 under section 5313(a) of title 31, United States Code, to

11 eliminate the need to report information which has little

12 or no value for law enforcement purposes and reduce the

13 time and effort required to prepare such report for filing

14 by any depository institution under such section.

15 SEC. 3. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS

16 TRANSACTIONS.

17 (a) IN GENERAL.—Section 5318(g) of title 31,

18 United States Code, is amended by adding at the end the

19 following new paragraph:

20 ‘‘(4) SINGLE DESIGNEE FOR REPORTING SUS21 PICIOUS TRANSACTIONS.—

22 ‘‘(A) IN GENERAL.—In requiring reports

23 under paragraph (1) of suspicious transactions,

24 the Secretary of the Treasury shall designate,

25 to the extent practicable and appropriate, a sin-
9

•HR 3235 SC

1 gle officer or agency of the United States to

2 whom such reports shall be made.

3 ‘‘(B) DUTY OF DESIGNEE.—The officer or

4 agency of the United States designated by the

5 Secretary of the Treasury pursuant to subpara6 graph (A) shall refer any report of a suspicious

7 transaction to the appropriate law enforcement

8 or supervisory agency.

9 ‘‘(C) COORDINATION WITH OTHER RE10 PORTING REQUIREMENTS.—Subparagraph (A)

11 shall not be construed as precluding any super12 visory agency for any financial institution from

13 requiring the financial institution to submit any

14 information or report to the agency or another

15 agency pursuant to any provision of law other

16 than this subsection.

17 ‘‘(D) REPORTS.—

18 ‘‘(i) REPORTS REQUIRED.—The Sec19 retary of the Treasury shall submit an an20 nual report to the Congress at the times

21 required under clause (ii) on the number of

22 suspicious transactions reported to the offi23 cer or agency designated under subpara24 graph (A) during the period covered by the

25 report and the disposition of such reports.
10

•HR 3235 SC

1 ‘‘(ii) TIME FOR SUBMITTING RE2 PORTS.—The 1st report required under

3 clause (i) shall be filed before the end of

4 the 1-year period beginning on the date of

5 the enactment of the Antimoney Launder6 ing Act of 1993 and each subsequent re7 port shall be filed within 90 days after the

8 end of each of the 5 calendar years which

9 begin after such date of enactment.’’.

10 (b) DESIGNATION REQUIRED TO BE MADE EXPEDI11 TIOUSLY.—The initial designation of an officer or agency

12 of the United States pursuant to the amendment made

13 by subsection (a) shall be made before the end of the 180-

14 day period beginning on the date of the enactment of this

15 Act.

16 SEC. 4. BANKING AGENCY PILOT PROGRAMS TO IDENTIFY

17 MONEY LAUNDERING SCHEMES.

18 Before the end of the 6-month period beginning on

19 the date of the enactment of this Act, the Comptroller of

20 the Currency and the Board of Governors of the Federal

21 Reserve System shall each establish a pilot program de22 signed to test the feasibility of using examiners employed

23 by the agency to identify money laundering schemes in24 volving depository institutions for which the agency is the
11

•HR 3235 SC

1 appropriate Federal banking agency (as defined in section

2 3(q) of the Federal Deposit Insurance Act.

3 SEC. 5. NEGOTIABLE INSTRUMENTS DRAWN ON FOREIGN

4 BANKS SUBJECT TO RECORDKEEPING AND

5 REPORTING REQUIREMENTS.

6 Section 5312(a)(3) of title 31, United States Code,

7 is amended—

8 (1) by striking ‘‘and’’ at the end of subpara9 graph (A);

10 (2) by striking the period at the end of sub11 paragraph (B) and inserting ‘‘; and’’; and

12 (3) by adding at the end the following new sub13 paragraph:

14 ‘‘(C) as the Secretary of the Treasury shall

15 provide by regulation, checks, drafts, notes,

16 money orders, and other similar instruments

17 which are drawn on or by a foreign financial in18 stitution and are not in bearer form.’’.

19 SEC. 6. IMPOSITION OF CIVIL MONEY PENALTIES BY AP20 PROPRIATE FEDERAL BANKING AGENCIES.

21 Section 5321 of title 31, United States Code, is

22 amended by adding at the end the following new sub23 section:

24 ‘‘(e) DELEGATION OF ASSESSMENT AUTHORITY TO

25 BANKING AGENCIES.—
12

•HR 3235 SC

1 ‘‘(1) IN GENERAL.—The Secretary of the

2 Treasury shall delegate, in accordance with section

3 5318(a)(1) and subject to such terms and conditions

4 as the Secretary may impose in accordance with

5 paragraph (3), any authority of the Secretary to as6 sess a civil money penalty under this section on de7 pository institutions (as defined in section 3 of the

8 Federal Deposit Insurance Act) to the appropriate

9 Federal banking agencies (as defined in such section

10 3).

11 ‘‘(2) AUTHORITY OF AGENCIES.—Subject to

12 any term or condition imposed by the Secretary of

13 the Treasury under paragraph (3), the provisions of

14 this section shall apply to an appropriate Federal

15 banking agency to which is delegated any authority

16 of the Secretary under this section in the same man17 ner such provisions apply to the Secretary.

18 ‘‘(3) TERMS AND CONDITIONS.—

19 ‘‘(A) IN GENERAL.—The Secretary of the

20 Treasury shall prescribe by regulation the terms

21 and conditions which shall apply to any delega22 tion under paragraph (1).

23 ‘‘(B) MAXIMUM DOLLAR AMOUNT.—The

24 terms and conditions authorized under subpara25 graph (A) may include, in the Secretary’s sole
13

•HR 3235 SC

1 discretion, a limitation on the amount of any

2 civil penalty which may be assessed by an ap3 propriate Federal banking agency pursuant to a

4 delegation under paragraph (1).’’.

5 SEC. 7. UNIFORM STATE LICENSING AND REGULATION OF

6 CHECK CASHING, CURRENCY EXCHANGE,

7 AND MONEY TRANSMITTING BUSINESSES.

8 (a) UNIFORM LAWS AND ENFORCEMENT.—For pur9 poses of preventing money laundering and protecting the

10 payment system from fraud and abuse, it is the sense of

11 the Congress that the several States should—

12 (1) establish uniform laws for licensing and reg13 ulating businesses which—

14 (A) provide check cashing, currency ex15 change, or money transmitting or remittance

16 services, or issue or redeem money orders, trav17 elers’ checks, and other similar instruments;

18 and

19 (B) are not depository institutions (as de20 fined in section 19(b)(1)(A) of the Federal Re21 serve Act); and

22 (2) provide sufficient resources to the appro23 priate State agency to enforce such laws and regula24 tions prescribed pursuant to such laws.
14

•HR 3235 SC

1 (b) MODEL STATUTE.—It is the sense of the Con2 gress that the several States should develop, through the

3 auspices of the National Conference of Commissioners on

4 Uniform State Laws, the American Law Institute, or such

5 other forum as the States may determine to be appro6 priate, a model statute to carry out the goals described

7 in subsection (a) which would include the following:

8 (1) LICENSING REQUIREMENTS.—A require9 ment that any business described in subsection

10 (a)(1) be licensed and regulated by an appropriate

11 State agency in order to engage in any such activity

12 within the State.

13 (2) LICENSING STANDARDS.—A requirement

14 that—

15 (A) in order for any business described in

16 subsection (a)(1) to be licensed in the State, the

17 appropriate State agency shall review and ap18 prove—

19 (i) the business record and the capital

20 adequacy of the business seeking the li21 cense; and

22 (ii) the competence, experience, integ23 rity, and financial ability of any individual

24 who—
15

•HR 3235 SC

1 (I) is a director, officer, or super2 visory employee of such business; or

3 (II) owns or controls such busi4 ness; and

5 (B) any record, on the part of any business

6 seeking the license or any person referred to in

7 subparagraph (A)(ii), of—

8 (i) any criminal activity;

9 (ii) any fraud or other act of personal

10 dishonesty;

11 (iii) any act, omission, or practice

12 which constitutes a breach of a fiduciary

13 duty; or

14 (iv) any suspension or removal, by any

15 agency or department of the United States

16 or any State, from participation in the con17 duct of any federally or State licensed or

18 regulated business,

19 may be grounds for the denial of any such li20 cense by the appropriate State agency.

21 (3) PROCEDURES TO ENSURE COMPLIANCE

22 WITH FEDERAL CASH TRANSACTION REPORTING RE23 QUIREMENTS.—A civil or criminal penalty for oper24 ating any business referred to in paragraph (1)

25 without establishing and complying with appropriate
16

•HR 3235 SC

1 procedures to ensure compliance with subchapter II

2 of chapter 53 of title 31, United States Code (relat3 ing to records and reports on monetary instruments

4 transactions).

5 (4) CRIMINAL PENALTIES FOR OPERATION OF

6 BUSINESS WITHOUT A LICENSE.—A criminal penalty

7 for operating any business referred to in paragraph

8 (1) without a license within the State after the end

9 of an appropriate transition period beginning on the

10 date of the enactment of such model statute by the

11 State.

12 (c) STUDY REQUIRED.—The Secretary of the Treas13 ury shall conduct a study of—

14 (1) the progress made by the several States in

15 developing and enacting a model statute which—

16 (A) meets the requirements of subsection

17 (b); and

18 (B) furthers the goals of—

19 (i) preventing money laundering by

20 businesses which are required to be li21 censed under any such statute; and

22 (ii) protecting the payment system, in23 cluding the receipt, payment, collection,

24 and clearing of checks, from fraud and

25 abuse by such businesses; and
17

•HR 3235 SC

1 (2) the adequacy of—

2 (A) the activity of the several States in en3 forcing the requirements of such statute; and

4 (B) the resources made available to the ap5 propriate State agencies for such enforcement

6 activity.

7 (d) REPORT REQUIRED.—Before the end of the 3-

8 year period beginning on the date of the enactment of this

9 Act and by the end of each of the first 2 1-year periods

10 beginning after the end of such 3-year period, the Sec11 retary of the Treasury shall submit a report to the Con12 gress containing the findings and recommendations of the

13 Secretary in connection with the study under subsection

14 (c), together with such recommendations for legislative

15 and administrative action as the Secretary may determine

16 to be appropriate, including any recommendation pursu17 ant to subsection (e).

18 (e) RECOMMENDATIONS FOR INCENTIVES OR SANC19 TIONS IN CASES OF INADEQUATE REGULATION AND EN20 FORCEMENT BY STATES.—If the Secretary of the Treas21 ury determines that any State has failed—

22 (1) to enact a statute which meets the require23 ments described in subsection (b);

24 (2) to undertake adequate activity to enforce

25 such statute; or
18

•HR 3235 SC

1 (3) to make adequate resources available to the

2 appropriate State agency for such enforcement activ3 ity,

4 the report submitted pursuant to subsection (d) shall con5 tain recommendations for legislation establishing incen6 tives which may be provided or sanctions which may be

7 imposed to remedy such failure.

8 SEC. 8. REGISTRATION OF MONEY TRANSMITTING BUSI9 NESSES TO PROMOTE EFFECTIVE LAW EN10 FORCEMENT.

11 (a) FINDINGS AND PURPOSES.—

12 (1) FINDINGS.—The Congress hereby finds the

13 following:

14 (A) Money transmitting businesses are

15 subject to the recordkeeping and reporting re16 quirements of subchapter II of chapter 53 of

17 title 31, United States Code.

18 (B) Money transmitting businesses are

19 largely unregulated businesses and are fre20 quently used in sophisticated schemes to—

21 (i) transfer large amounts of money

22 which are the proceeds of unlawful enter23 prises; and

24 (ii) evade the requirements of such

25 subchapter II, the Internal Revenue Code
19

•HR 3235 SC

1 of 1986, and other laws of the United

2 States.

3 (C) Information on the identity of money

4 transmitting businesses and the names of the

5 persons who own or control, or are officers or

6 employees of, a money transmitting business

7 would have a high degree of usefulness in crimi8 nal, tax, or regulatory investigations and pro9 ceedings.

10 (2) PURPOSE.—It is the purpose of this section

11 to establish a registration requirement for businesses

12 engaged in providing check cashing, currency ex13 change, or money transmitting or remittance serv14 ices, or issuing or redeeming money orders, travel15 ers’ checks, and other similar instruments to assist

16 the Secretary of the Treasury, the Attorney General,

17 and other supervisory and law enforcement agencies

18 to effectively enforce the criminal, tax, and regu19 latory laws and prevent such money transmitting

20 businesses from engaging in illegal activities.

21 (b) IN GENERAL.—Subchapter II of chapter 53 of

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

23 end the following new section:
20

•HR 3235 SC

1 ‘‘§ 5329. Registration of money transmitting busi2 nesses

3 ‘‘(a) REGISTRATION WITH SECRETARY OF THE

4 TREASURY REQUIRED.—

5 ‘‘(1) IN GENERAL.—Any person who owns or

6 controls a money transmitting business which is not

7 a depository institution (as defined in section

8 19(b)(1)(A) of the Federal Reserve Act) shall reg9 ister the business (whether or not the business is li10 censed as a money transmitting business in any

11 State) with the Secretary of the Treasury before the

12 end of the 180-day period beginning on the later

13 of—

14 ‘‘(A) the date of the enactment of this Act;

15 or

16 ‘‘(B) the date the business is established.

17 ‘‘(2) FORM AND MANNER OF REGISTRATION.—

18 Subject to the requirements of subsection (b), the

19 Secretary of the Treasury shall prescribe, in regula20 tions, the form and manner for registering a money

21 transmitting business pursuant to paragraph (1).

22 ‘‘(3) BUSINESSES REMAIN SUBJECT TO STATE

23 LAW.—This section shall not be construed as super24 seding any requirement of State law relating to

25 money transmitting businesses operating in such

26 State.
21

•HR 3235 SC

1 ‘‘(4) FALSE AND INCOMPLETE INFORMATION.—

2 The filing of false or materially incomplete informa3 tion in connection with the registration of a money

4 transmitting business shall be considered as a failure

5 to comply with the requirements of this subsection.

6 ‘‘(b) CONTENTS OF REGISTRATION.—The registra7 tion of a money transmitting business under subsection

8 (a) shall include the following information:

9 ‘‘(1) The name and location of the business.

10 ‘‘(2) The name and address of each person

11 who—

12 ‘‘(A) owns or controls the business;

13 ‘‘(B) is an director or officer of the busi14 ness; or

15 ‘‘(C) otherwise participates in the conduct

16 of the affairs of the business.

17 ‘‘(3) The name and address of any depository

18 institution at which the business maintains a trans19 action account (as defined in section 19(b)(1)(C) of

20 the Federal Reserve Act).

21 ‘‘(4) Such other information as the Secretary of

22 the Treasury may require.

23 ‘‘(c) DEFINITIONS.—For purposes of this section—

24 ‘‘(1) MONEY TRANSMITTING BUSINESS.—The

25 term ‘money transmitting business’ means any busi-
22

•HR 3235 SC

1 ness other than the United States Postal Service

2 which—

3 ‘‘(A) provides check cashing, currency ex4 change, or money transmitting or remittance

5 services, or issues or redeems money orders,

6 travelers’ checks, and other similar instruments;

7 ‘‘(B) is required to file reports under sec8 tion 5313; and

9 ‘‘(C) is not a depository institution (as de10 fined in section 19(b)(1)(A) of the Federal Re11 serve Act).

12 ‘‘(2) MONEY TRANSMITTING SERVICE.—The

13 term ‘money transmitting service’ includes accepting

14 currency or funds denominated in the currency of

15 any country and transmitting the currency or funds,

16 or the value of the currency or funds, by any means

17 through a financial agency or institution, a Federal

18 reserve bank or other facility of the Board of Gov19 ernors of the Federal Reserve System, or an elec20 tronic funds transfer network.

21 ‘‘(d) CIVIL PENALTY FOR FAILURE TO COMPLY

22 WITH REGISTRATION REQUIREMENTS.—

23 ‘‘(1) IN GENERAL.—Any person who fails to

24 comply with the money transmitting business reg25 istration requirements under subsection (a) or regu-
23

•HR 3235 SC

1 lations prescribed under such subsection shall be lia2 ble to the United States for a civil penalty of $5,000

3 for each such violation.

4 ‘‘(2) CONTINUING VIOLATION.—Each day a vio5 lation described in paragraph (1) continues shall

6 constitute a separate violation for purposes of such

7 paragraph.

8 ‘‘(3) ASSESSMENTS.—Any penalty imposed

9 under this subsection shall be assessed and collected

10 by the Secretary of the Treasury in the manner pro11 vided in section 5321 and any such assessment shall

12 be subject to the provisions of such section.’’.

13 (c) CRIMINAL PENALTY FOR FAILURE TO COMPLY

14 WITH REGISTRATION REQUIREMENTS.—Section

15 1960(b)(1) of title 18, United States Code, is amended

16 to read as follows:

17 ‘‘(1) the term ‘illegal money transmitting busi18 ness’ means a money transmitting business which

19 affects interstate or foreign commerce in any man20 ner or degree and—

21 ‘‘(A) is intentionally operated without an

22 appropriate money transmitting license in a

23 State where such operation is punishable as a

24 misdemeanor or a felony under State law; or
24

•HR 3235 SC

1 ‘‘(B) fails to comply with the money trans2 mitting business registration requirements

3 under section 5329 of title 31, United States

4 Code, or regulations prescribed under such sec5 tion;’’.

6 (d) CIVIL FORFEITURE.—Section 981(a)(1)(A) of

7 title 18, United States Code, is amended by striking ‘‘or

8 of section 1956 or 1957 of this title,’’ and inserting ‘‘,

9 of section 1956, 1957, or 1960 of this title,’’.

10 (e) CLERICAL AMENDMENT.—The table of sections

11 for chapter 53 of title 31, United States Code, is amended

12 by inserting after the item relating to section 5328 the

13 following new item:

‘‘5329. Registration of money transmitting businesses.’’.

14 SEC. 9. UNIFORM FEDERAL REGULATION OF CASINOS.

15 AMENDMENT TO DEFINITION OF FINANCIAL INSTI16 TUTION TO SPECIFICALLY INCLUDE CERTAIN CASINOS.—

17 Section 5312(a)(2) of title 31, United States Code, is

18 amended—

19 (1) by redesignating subparagraphs (X) and

20 (Y) as subparagraphs (Y) and (Z), respectively; and

21 (2) by inserting after subparagraph (W) the fol22 lowing new subparagraph:

23 ‘‘(X) a casino, gambling casino, or gaming

24 establishment with an annual gaming revenue

25 of more than $1,000,000 which—
25

•HR 3235 SC

1 ‘‘(i) is licensed as a casino or gam2 bling casino under the laws of any State or

3 any political subdivision of any State; or

4 ‘‘(ii) is an Indian gaming operation

5 conducted under or pursuant to the Indian

6 Gaming Regulatory Act other than an op7 eration which is limited to class I gaming

8 (as defined in section 4(6) of such Act).’’.

9 SEC. 10. UNIFORM FEDERAL ADMINISTRATION OF RECORD10 KEEPING AND REPORTING REQUIREMENTS.

11 (a) IN GENERAL.—Section 5318 of title 31, United

12 States Code, is amended by adding at the end the follow13 ing new subsection:

14 ‘‘(i) UNIFORM ADMINISTRATION OF SUBCHAPTER.—

15 ‘‘(1) NO EXEMPTIONS.—No exemption from

16 any recordkeeping or reporting requirement of this

17 subchapter, including paragraph (1), or of any regu18 lation prescribed pursuant to this subchapter may be

19 granted to—

20 ‘‘(A) any State or any political subdivision

21 of a State on behalf of any financial institution

22 which but, for such exemption, would be re23 quired to maintain records or file reports under

24 this subchapter or regulations prescribed by the
26

•HR 3235 SC

1 Secretary of the Treasury pursuant to this sub2 chapter; or

3 ‘‘(B) any financial institution on the basis

4 that any State, any political subdivision of any

5 State, or any officer, agency, or other authority

6 of any such State or political subdivision regu7 lates or examines such institution.

8 ‘‘(2) REPORTS REQUIRED TO BE FILED WITH

9 FEDERAL AGENCY.—Any report required under this

10 subchapter or regulations prescribed by the Sec11 retary of the Treasury pursuant to this subchapter

12 shall be filed by the person required to make the re13 port with the Secretary of the Treasury or an officer

14 or agency of the United States designated by the

15 Secretary to receive such report.’’.

16 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

17 Section 5318(a) of title 31, United States Code, is amend18 ed—

19 (1) in paragraph (1), by inserting ‘‘or (i)’’ after

20 ‘‘subsection (b)(2)’’; and

21 (2) in paragraph (5), by inserting ‘‘except as

22 provided in subsection (i),’’ before ‘‘prescribe an ap23 propriate exemption’’.

24 (c) REVOCATION OF PRIOR EXEMPTION.—Any ex25 emption granted under subchapter II of chapter 53 of title
27

•HR 3235 SC

1 31, United States Code, by the Secretary of the Treasury

2 before the date of the enactment of the Antimoney Laun3 dering Act of 1993 to any State or local government on

4 behalf of any financial institution (as defined in such sub5 chapter) is hereby revoked as of the end of the 30-day

6 period beginning on the date of the enactment of this Act.

7 SEC. 11. TREASURY STUDY OF CASHIERS’ CHECKS.

8 (a) STUDY REQUIRED.—The Secretary of the Treas9 ury shall conduct a study to determine—

10 (1) the extent to which the practice of issuing

11 of cashiers’ checks by financial institutions is vulner12 able to money laundering schemes;

13 (2) the extent to which additional recordkeeping

14 requirements should be imposed on financial institu15 tions which issue cashiers’ checks; and

16 (3) such other factors relating to the use and

17 regulation of cashiers’ checks as the Secretary deter18 mines to be appropriate.

19 (b) REPORT REQUIRED.—Before the end of the 180-

20 day period beginning on the date of the enactment of this

21 Act, the Secretary of the Treasury shall submit a report

22 to the Congress containing—

23 (1) the findings and conclusions of the Sec24 retary in connection with the study conducted pursu25 ant to subsection (a); and
28

•HR 3235 SC

1 (2) such recommendations for legislative and

2 administrative action as the Secretary may deter3 mine to be appropriate.

Æ

HR 3235 SC——2

HR 3235 SC——3