Union Calendar No. 241

103D CONGRESS

2D SESSION H. R. 3235

[Report No. 103–438]

A BILL

To amend subchapter II of chapter 53 of title 31,

poses.antimoney laundering laws, and for other purUnited States Code, to improve enforcement of

MARCH 21, 1994

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 241

103D CONGRESS

2D SESSION H. R. 3235

[Report No. 103–438]

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, Ms.

VELA ́ZQUEZ, and Mr. HINCHEY

MARCH 21, 1994

Additional sponsors: Mr. WYNN, Mr. TORRES, Mr. MINGE, and Mr. KLEIN

MARCH 21, 1994

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on October 7, 1993]

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.
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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 ‘‘Money Laundering Suppression Act of 1994’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

Sec. 2. Reform of CTR exemption requirements to reduce number and size of reports consistent with effective law enforcement.

Sec. 3. Single designee for reporting of suspicious transactions.

Sec. 4. Improvement of identification of money laundering schemes.

Sec. 5. Negotiable instruments drawn on foreign banks subject to recordkeeping

and reporting requirements.

Sec. 6. Imposition of civil money penalties by appropriate Federal banking agencies.

Sec. 7. Uniform State licensing and regulation of check cashing, currency exchange, and money transmitting businesses.

Sec. 8. Registration of money transmitting businesses to promote effective law enforcement.

Sec. 9. Uniform Federal regulation of casinos.

Sec. 10. Uniform Federal administration of recordkeeping and reporting requirements.

Sec. 11. Criminal and civil penalty for structuring domestic and international

transactions.

Sec. 12. GAO study of cashiers’ checks.

Sec. 13. Technical corrections.

7 SEC. 2. REFORM OF CTR EXEMPTION REQUIREMENTS TO

8 REDUCE NUMBER AND SIZE OF REPORTS

9 CONSISTENT WITH EFFECTIVE LAW EN10 FORCEMENT.

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

12 States Code, is amended by adding at the end the following

13 new subsections:

14 ‘‘(d) MANDATORY EXEMPTIONS FROM REPORTING RE15 QUIREMENTS.—
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1 ‘‘(1) IN GENERAL.—The Secretary of the Treas2 ury shall exempt, pursuant to section 5318(a)(5), a

3 depository institution from the reporting require4 ments of subsection (a) with respect to transactions

5 between the depository institution and the following

6 categories of entities:

7 ‘‘(A) Another depository institution.

8 ‘‘(B) A department or agency of the United

9 States, any State, or any political subdivision of

10 any State.

11 ‘‘(C) Any entity established under the laws

12 of the United States, any State, or any political

13 subdivision of any State, or under an interstate

14 compact between 2 or more States, which exer15 cises governmental authority on behalf of the

16 United States, the State, or the political subdivi17 sion.

18 ‘‘(D) Any business or category of business

19 the reports on which have little or no value for

20 law enforcement purposes.

21 ‘‘(2) NOTICE OF EXEMPTION.—The Secretary of

22 the Treasury shall publish in the Federal Register at

23 such times as the Secretary determines to be appro24 priate (but not less frequently than once each year)

25 a list of all the entities whose transactions with a de-
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1 pository institution are exempt under this subsection

2 from the reporting requirements of subsection (a).

3 ‘‘(e) DISCRETIONARY EXEMPTIONS FROM REPORTING

4 REQUIREMENTS.—

5 ‘‘(1) IN GENERAL.—The Secretary of the Treas6 ury may exempt, pursuant to section 5318(a)(5), a

7 depository institution from the reporting require8 ments of subsection (a) with respect to transactions

9 between the depository institution and a qualified

10 business customer of the institution on the basis of in11 formation submitted to the Secretary by the institu12 tion in accordance with procedures which the Sec13 retary shall establish.

14 ‘‘(2) QUALIFIED BUSINESS CUSTOMER DE15 FINED.—For purposes of this subsection, the term

16 ‘qualified business customer’ means a business

17 which—

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

19 defined in section 19(b)(1)(C) of the Federal Re20 serve Act) at the depository institution;

21 ‘‘(B) frequently engages in transactions

22 with the depository institution which are subject

23 to the reporting requirements of subsection (a);

24 and
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1 ‘‘(C) meets criteria which the Secretary de2 termines are sufficient to ensure that the pur3 poses of this subchapter are carried out without

4 requiring a report with respect to such trans5 actions.

6 ‘‘(3) CRITERIA FOR EXEMPTION.—The Secretary

7 of the Treasury shall establish, by regulation, the cri8 teria for granting and maintaining an exemption

9 under paragraph (1).

10 ‘‘(4) GUIDELINES.—

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

12 Treasury shall establish guidelines for depository

13 institutions to follow in selecting customers for

14 an exemption under this subsection.

15 ‘‘(B) CONTENTS.—The guidelines may in16 clude a description of the types of businesses or

17 an itemization of specific businesses for which no

18 exemption will be granted under this subsection

19 to any depository institution.

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

21 Treasury shall prescribe regulations requiring each

22 depository institution to—

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

24 qualified business customers of such institution
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1 with respect to whom an exemption has been

2 granted under this subsection; and

3 ‘‘(B) upon the completion of such review, re4 submit information about such customers, with

5 such modifications as the institution determines

6 to be appropriate, to the Secretary for the Sec7 retary’s approval.

8 ‘‘(6) 2-YEAR PHASE-IN PROVISION.—During the

9 2-year period beginning on the date of the enactment

10 of the Money Laundering Suppression Act of 1994,

11 this subsection shall be applied by the Secretary on

12 the basis of such criteria as the Secretary determines

13 to be appropriate to achieve an orderly implementa14 tion of the requirements of this subsection.

15 ‘‘(f) PROVISIONS APPLICABLE TO MANDATORY AND

16 DISCRETIONARY EXEMPTIONS.—

17 ‘‘(1) LIMITATION ON LIABILITY OF DEPOSITORY

18 INSTITUTIONS.—No depository institution shall be

19 subject to any penalty which may be imposed under

20 this subchapter for the failure of the institution to file

21 a report with respect to a transaction with a cus22 tomer for whom an exemption has been granted under

23 subsection (d) or (e) unless the institution—

24 ‘‘(A) knowingly files false or incomplete in25 formation to the Secretary with respect to the
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1 transaction or the customer engaging in the

2 transaction; or

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

4 exemption is granted or the transaction is en5 tered into that the customer or the transaction

6 does not meet the criteria established for grant7 ing such exemption.

8 ‘‘(2) COORDINATION WITH OTHER PROVISIONS.—

9 Any exemption granted by the Secretary of the Treas10 ury under section 5318(a) in accordance with this

11 section, and any transaction which is subject to such

12 exemption, shall be subject to any other provision of

13 law applicable to such exemption, including—

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

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

16 any time; and

17 ‘‘(B) any requirement to report, or any au18 thority to require a report on, any possible viola19 tion of any law or regulation or any suspected

20 criminal activity.

21 ‘‘(g) DEPOSITORY INSTITUTION DEFINED.—For pur22 poses of this section, the term ‘depository institution’—

23 ‘‘(1) has the meaning given to such term in sec24 tion 19(b)(1)(A) of the Federal Reserve Act; and

25 ‘‘(2) includes—
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1 ‘‘(A) any branch, agency, or commercial

2 lending company (as such terms are defined in

3 section 1(b) of the International Banking Act of

4 1978);

5 ‘‘(B) any corporation chartered under sec6 tion 25A of the Federal Reserve Act; and

7 ‘‘(C) any corporation having an agreement

8 or undertaking with the Board of Governors of

9 the Federal Reserve System under section 25 of

10 the Federal Reserve Act.’’.

11 (b) REPORT REDUCTION GOAL; REPORTS.—

12 (1) IN GENERAL.—In implementing the amend13 ment made by subsection (a), the Secretary of the

14 Treasury shall seek to reduce, within a reasonable pe15 riod of time, the number of reports required to be filed

16 in the aggregate by depository institutions pursuant

17 to section 5313(a) of title 31, United States Code, by

18 at least 30 percent of the number filed during the

19 year preceding the date of the enactment of this Act.

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

21 Treasury shall submit a report to the Congress not

22 later than the end of the 180-day period beginning on

23 the date of the enactment of this Act on the progress

24 made by the Secretary in implementing the amend25 ment made by subsection (a).
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1 (3) ANNUAL REPORT.—The Secretary of the

2 Treasury shall submit an annual report to the Con3 gress after the end of each of the first 5 calendar years

4 which begin after the date of the enactment of this Act

5 on the extent to which the Secretary has reduced the

6 overall number of currency transaction reports filed

7 with the Secretary pursuant to section 5313(a) of title

8 31, United States Code, consistently with the purposes

9 of such section and effective law enforcement.

10 (c) STREAMLINED CURRENCY TRANSACTION RE11 PORTS.—The Secretary of the Treasury shall take such ac12 tion as may be appropriate to redesign the format of reports

13 required to be filed by any financial institution (as defined

14 in section 5312(a)(2) of title 31, United States Code) under

15 section 5313(a) of title 31, United States Code, to eliminate

16 the need to report information which has little or no value

17 for law enforcement purposes and reduce the time and effort

18 required to prepare such report for filing by any such fi19 nancial institution under such section.

20 SEC. 3. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS

21 TRANSACTIONS.

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

23 States Code, is amended by adding at the end the following

24 new paragraph:
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1 ‘‘(4) SINGLE DESIGNEE FOR REPORTING SUS2 PICIOUS TRANSACTIONS.—

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

4 under paragraph (1) of suspicious transactions,

5 the Secretary of the Treasury shall designate, to

6 the extent practicable and appropriate, a single

7 officer or agency of the United States to whom

8 such reports shall be made.

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

10 agency of the United States designated by the

11 Secretary of the Treasury pursuant to subpara12 graph (A) shall refer any report of a suspicious

13 transaction to any appropriate law enforcement

14 or supervisory agency.

15 ‘‘(C) COORDINATION WITH OTHER REPORT16 ING REQUIREMENTS.—Subparagraph (A) shall

17 not be construed as precluding any supervisory

18 agency for any financial institution from requir19 ing the financial institution to submit any infor20 mation or report to the agency or another agency

21 pursuant to any provision of law other than this

22 subsection.’’.

23 (b) REPORTS.—

24 (1) REPORTS REQUIRED.—The Secretary of the

25 Treasury shall submit an annual report to the Con-
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1 gress at the times required under paragraph (2) on

2 the number of suspicious transactions reported to the

3 officer or agency designated under section

4 5318(g)(4)(A) of title 31, United States Code, during

5 the period covered by the report and the disposition

6 of such reports.

7 (2) TIME FOR SUBMITTING REPORTS.—The 1st

8 report required under paragraph (1) shall be filed be9 fore the end of the 1-year period beginning on the

10 date of the enactment of the Money Laundering Sup11 pression Act of 1994 and each subsequent report shall

12 be filed within 90 days after the end of each of the

13 5 calendar years which begin after such date of enact14 ment.

15 (c) DESIGNATION REQUIRED TO BE MADE EXPEDI16 TIOUSLY.—The initial designation of an officer or agency

17 of the United States pursuant to the amendment made by

18 subsection (a) shall be made before the end of the 180-day

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

20 SEC. 4. IMPROVEMENT OF IDENTIFICATION OF MONEY

21 LAUNDERING SCHEMES.

22 (a) ENHANCED TRAINING, EXAMINATIONS, AND RE23 FERRALS BY BANKING AGENCIES.—Before the end of the 6-

24 month period beginning on the date of the enactment of this

25 Act, each appropriate Federal banking agency shall, in con-
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1 sultation with the Secretary of the Treasury and other ap2 propriate law enforcement agencies—

3 (1) review and enhance training and examina4 tion procedures to improve the identification of

5 money laundering schemes involving depository insti6 tutions; and

7 (2) review and enhance procedures for referring

8 cases to any appropriate law enforcement agency.

9 (b) IMPROVED REPORTING OF CRIMINAL SCHEMES BY

10 LAW ENFORCEMENT AGENCIES.—The Secretary of the

11 Treasury and each appropriate law enforcement agency

12 shall provide, on a regular basis, information regarding

13 money laundering schemes and activities involving deposi14 tory institutions to each appropriate Federal banking agen15 cy in order to enhance the agency’s ability to examine for

16 and identify money laundering activity.

17 (c) REPORT TO CONGRESS.—The Financial Institu18 tions Examination Council shall submit a report on the

19 progress made in carrying out subsection (a) and the useful20 ness of information received pursuant to subsection (b) to

21 the Congress by the end of the 1-year period beginning on

22 the date of the enactment of this Act.

23 (d) DEFINITIONS.—The terms ‘‘appropriate Federal

24 banking agency’’ and ‘‘Federal banking agencies’’ have the
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1 same meanings as in section 3 of the Federal Deposit Insur2 ance 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, is

7 amended—

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

10 (2) by striking the period at the end of subpara11 graph (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 for purposes of section

16 5316, checks, drafts, notes, money orders, and

17 other similar instruments which are drawn on or

18 by a foreign financial institution and are not in

19 bearer form.’’.

20 SEC. 6. IMPOSITION OF CIVIL MONEY PENALTIES BY AP21 PROPRIATE FEDERAL BANKING AGENCIES.

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

23 amended by adding at the end the following new subsection:

24 ‘‘(e) DELEGATION OF ASSESSMENT AUTHORITY TO

25 BANKING AGENCIES.—
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1 ‘‘(1) IN GENERAL.—The Secretary of the Treas2 ury 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 any

12 term or condition imposed by the Secretary of the

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

14 section shall apply to an appropriate Federal banking

15 agency to which is delegated any authority of the Sec16 retary under this section in the same manner such

17 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
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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, AND

7 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, travel17 ers’ checks, and other similar instruments; and

18 (B) are not depository institutions (as de19 fined in section 19(b)(1)(A) of the Federal Re20 serve Act); and

21 (2) provide sufficient resources to the appro22 priate State agency to enforce such laws and regula23 tions prescribed pursuant to such laws.

24 (b) MODEL STATUTE.—It is the sense of the Congress

25 that the several States should develop, through the auspices
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1 of the National Conference of Commissioners on Uniform

2 State Laws, the American Law Institute, or such other

3 forum as the States may determine to be appropriate, a

4 model statute to carry out the goals described in subsection

5 (a) which would include the following:

6 (1) LICENSING REQUIREMENTS.—A requirement

7 that any business described in subsection (a)(1) be li8 censed and regulated by an appropriate State agency

9 in order to engage in any such activity within the

10 State.

11 (2) LICENSING STANDARDS.—A requirement

12 that—

13 (A) in order for any business described in

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

15 appropriate State agency shall review and ap16 prove—

17 (i) the business record, the fee struc18 ture, and the capital adequacy of the busi19 ness seeking the license; and

20 (ii) the competence, experience, integ21 rity, and financial ability of any individ22 ual who—

23 (I) is a director, officer, or super24 visory employee of such business; or
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1 (II) owns or controls such busi2 ness; and

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

4 seeking the license or any person referred to in

5 subparagraph (A)(ii), of—

6 (i) any criminal activity;

7 (ii) any fraud or other act of personal

8 dishonesty;

9 (iii) any act, omission, or practice

10 which constitutes a breach of a fiduciary

11 duty; or

12 (iv) any suspension or removal, by any

13 agency or department of the United States

14 or any State, from participation in the con15 duct of any federally or State licensed or

16 regulated business,

17 may be grounds for the denial of any such li18 cense by the appropriate State agency.

19 (3) PROCEDURES TO ENSURE COMPLIANCE WITH

20 FEDERAL CASH TRANSACTION REPORTING REQUIRE21 MENTS.—A civil or criminal penalty for operating

22 any business referred to in paragraph (1) without es23 tablishing and complying with appropriate proce24 dures to ensure compliance with subchapter II of

25 chapter 53 of title 31, United States Code (relating to
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1 records and reports on monetary instruments trans2 actions).

3 (4) CRIMINAL PENALTIES FOR OPERATION OF

4 BUSINESS WITHOUT A LICENSE.—A criminal penalty

5 for operating any business referred to in paragraph

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

7 of an appropriate transition period beginning on the

8 date of the enactment of such model statute by the

9 State.

10 (c) STUDY REQUIRED.—The Secretary of the Treasury

11 shall conduct a study of—

12 (1) the progress made by the several States in de13 veloping and enacting a model statute which—

14 (A) meets the requirements of subsection (b);

15 and

16 (B) furthers the goals of—

17 (i) preventing money laundering by

18 businesses which are required to be licensed

19 under any such statute; and

20 (ii) protecting the payment system, in21 cluding the receipt, payment, collection, and

22 clearing of checks, from fraud and abuse by

23 such businesses; and

24 (2) the adequacy of—
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1 (A) the activity of the several States in en2 forcing the requirements of such statute; and

3 (B) the resources made available to the ap4 propriate State agencies for such enforcement ac5 tivity.

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

7 period beginning on the date of the enactment of this Act

8 and by the end of each of the first 2 1-year periods begin9 ning after the end of such 3-year period, the Secretary of

10 the Treasury shall submit a report to the Congress contain11 ing the findings and recommendations of the Secretary in

12 connection with the study under subsection (c), together

13 with such recommendations for legislative and administra14 tive action as the Secretary may determine to be appro15 priate.

16 (e) RECOMMENDATIONS IN CASES OF INADEQUATE

17 REGULATION AND ENFORCEMENT BY STATES.—If the Sec18 retary of the Treasury determines that any State has been

19 unable to—

20 (1) enact a statute which meets the requirements

21 described in subsection (b);

22 (2) undertake adequate activity to enforce such

23 statute; or

24 (3) make adequate resources available to the ap25 propriate State agency for such enforcement activity,
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1 the report submitted pursuant to subsection (d) shall con2 tain recommendations of the Secretary which are designed

3 to facilitate the enactment and enforcement by the State of

4 such a statute.

5 (f) FEDERAL FUNDING STUDY.—

6 (1) STUDY REQUIRED.—The Secretary of the

7 Treasury shall conduct a study to identify possible

8 available sources of Federal funding to cover costs

9 which will be incurred by the States in carrying out

10 the purposes of this section.

11 (2) REPORT.—The Secretary of the Treasury

12 shall submit a report to the Congress on the study

13 conducted pursuant to paragraph (1) before the end

14 of the 18-month period beginning on the date of the

15 enactment of this Act.

16 SEC. 8. REGISTRATION OF MONEY TRANSMITTING BUSI17 NESSES TO PROMOTE EFFECTIVE LAW EN18 FORCEMENT.

19 (a) FINDINGS AND PURPOSES.—

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

21 following:

22 (A) Money transmitting businesses are sub23 ject to the recordkeeping and reporting require24 ments of subchapter II of chapter 53 of title 31,

25 United States Code.
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1 (B) Money transmitting businesses are

2 largely unregulated businesses and are frequently

3 used in sophisticated schemes to—

4 (i) transfer large amounts of money

5 which are the proceeds of unlawful enter6 prises; and

7 (ii) evade the requirements of such sub8 chapter II, the Internal Revenue Code of

9 1986, and other laws of the United States.

10 (C) Information on the identity of money

11 transmitting businesses and the names of the

12 persons who own or control, or are officers or

13 employees of, a money transmitting business

14 would have a high degree of usefulness in crimi15 nal, tax, or regulatory investigations and pro16 ceedings.

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

18 to establish a registration requirement for businesses

19 engaged in providing check cashing, currency ex20 change, or money transmitting or remittance services,

21 or issuing or redeeming money orders, travelers’

22 checks, and other similar instruments to assist the

23 Secretary of the Treasury, the Attorney General, and

24 other supervisory and law enforcement agencies to ef25 fectively enforce the criminal, tax, and regulatory
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1 laws and prevent such money transmitting businesses

2 from engaging in illegal activities.

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

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

5 the following new section:

6 ‘‘§ 5329. Registration of money transmitting businesses

7 ‘‘(a) REGISTRATION WITH SECRETARY OF THE TREAS8 URY REQUIRED.—

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

10 controls a money transmitting business which is not

11 a depository institution (as defined in section

12 19(b)(1)(A) of the Federal Reserve Act) shall register

13 the business (whether or not the business is licensed

14 as a money transmitting business in any State) with

15 the Secretary of the Treasury before the end of the

16 180-day period beginning on the later of—

17 ‘‘(A) the date of the enactment of the Money

18 Laundering Suppression Act of 1994; or

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

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

21 Subject to the requirements of subsection (b), the Sec22 retary of the Treasury shall prescribe, by regulation,

23 the form and manner for registering a money trans24 mitting business pursuant to paragraph (1).
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1 ‘‘(3) BUSINESSES REMAIN SUBJECT TO STATE

2 LAW.—This section shall not be construed as supersed3 ing any requirement of State law relating to money

4 transmitting businesses operating in such State.

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

6 The filing of false or materially incomplete informa7 tion in connection with the registration of a money

8 transmitting business shall be considered as a failure

9 to comply with the requirements of this subchapter.

10 ‘‘(b) CONTENTS OF REGISTRATION.—The registration

11 of a money transmitting business under subsection (a) shall

12 include the following information:

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

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

15 who—

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

17 ‘‘(B) is an director or officer of the business;

18 or

19 ‘‘(C) otherwise participates in the conduct

20 of the affairs of the business.

21 ‘‘(3) The name and address of any depository in22 stitution at which the business maintains a trans23 action account (as defined in section 19(b)(1)(C) of

24 the Federal Reserve Act).
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1 ‘‘(4) An estimate of the volume of business in the

2 coming year (which shall be reported annually to the

3 Secretary).

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

5 the Treasury may require.

6 ‘‘(c) AGENTS OF MONEY TRANSMITTING BUSI7 NESSES.—

8 ‘‘(1) MAINTENANCE OF LISTS OF AGENTS OF

9 MONEY TRANSMITTING BUSINESSES.—Pursuant to

10 regulations which the Secretary of the Treasury shall

11 prescribe, each money transmitting business shall—

12 ‘‘(A) maintain a list containing the names

13 and addresses of all persons authorized to act as

14 an agent for such business in connection with ac15 tivities described in subsection (d)(1)(A) and

16 such other information about such agents as the

17 Secretary may require; and

18 ‘‘(B) make the list and other information

19 available on request to any appropriate law en20 forcement agency.

21 ‘‘(2) TREATMENT OF AGENT AS MONEY TRANS22 MITTING BUSINESS.—The Secretary of the Treasury

23 shall prescribe regulations establishing, on the basis of

24 such criteria as the Secretary determines to be appro25 priate, a threshold point for treating an agent of a
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1 money transmitting business as a money transmit2 ting business for purposes of this section.

3 ‘‘(d) DEFINITIONS.—For purposes of this section:

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

5 term ‘money transmitting business’ means any busi6 ness other than the United States Postal Service

7 which—

8 ‘‘(A) provides check cashing, currency ex9 change, or money transmitting or remittance

10 services, or issues or redeems money orders, trav11 elers’ checks, and other similar instruments;

12 ‘‘(B) is required to file reports under section

13 5313; and

14 ‘‘(C) is not a depository institution (as de15 fined in section 19(b)(1)(A) of the Federal Re16 serve Act).

17 ‘‘(2) MONEY TRANSMITTING SERVICE.—The term

18 ‘money transmitting service’ includes accepting cur19 rency or funds denominated in the currency of any

20 country and transmitting the currency or funds, or

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

22 through a financial agency or institution, a Federal

23 reserve bank or other facility of the Board of Gov24 ernors of the Federal Reserve System, or an electronic

25 funds transfer network.
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1 ‘‘(e) CIVIL PENALTY FOR FAILURE TO COMPLY WITH

2 REGISTRATION REQUIREMENTS.—

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

4 comply with the money transmitting business reg5 istration requirements under subsection (a) or regula6 tions prescribed under such subsection shall be liable

7 to the United States for a civil penalty of $5,000 for

8 each such violation.

9 ‘‘(2) CONTINUING VIOLATION.—Each day a vio10 lation described in paragraph (1) continues shall con11 stitute a separate violation for purposes of such para12 graph.

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

14 under this subsection shall be assessed and collected by

15 the Secretary of the Treasury in the manner provided

16 in section 5321 and any such assessment shall be sub17 ject to the provisions of such section.’’.

18 (c) CRIMINAL PENALTY FOR FAILURE TO COMPLY

19 WITH REGISTRATION REQUIREMENTS.—Section 1960(b)(1)

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

21 follows:

22 ‘‘(1) the term ‘illegal money transmitting busi23 ness’ means a money transmitting business which af24 fects interstate or foreign commerce in any manner or

25 degree and—
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1 ‘‘(A) is intentionally operated without an

2 appropriate money transmitting license in a

3 State where such operation is punishable as a

4 misdemeanor or a felony under State law; or

5 ‘‘(B) fails to comply with the money trans6 mitting business registration requirements under

7 section 5329 of title 31, United States Code, or

8 regulations prescribed under such section;’’.

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

10 18, United States Code, is amended by striking ‘‘or of sec11 tion 1956 or 1957 of this title,’’ and inserting ‘‘, or of sec12 tion 1956, 1957, or 1960 of this title,’’.

13 (e) CLERICAL AMENDMENT.—The table of sections for

14 chapter 53 of title 31, United States Code, is amended by

15 inserting after the item relating to section 5328 the follow16 ing new item:

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

17 SEC. 9. UNIFORM FEDERAL REGULATION OF CASINOS.

18 AMENDMENT TO DEFINITION OF FINANCIAL INSTITU19 TION TO SPECIFICALLY INCLUDE CERTAIN CASINOS.—Sec20 tion 5312(a)(2) of title 31, United States Code, is amend21 ed—

22 (1) by redesignating subparagraphs (X) and (Y)

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

24 (2) by inserting after subparagraph (W) the fol25 lowing new subparagraph:
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1 ‘‘(X) a casino, gambling casino, or gaming

2 establishment with an annual gaming revenue of

3 more than $1,000,000 which—

4 ‘‘(i) is licensed as a casino or gambling

5 casino under the laws of any State or any

6 political subdivision of any State; or

7 ‘‘(ii) is an Indian gaming operation

8 conducted under or pursuant to the Indian

9 Gaming Regulatory Act other than an oper10 ation which is limited to class I gaming (as

11 defined in section 4(6) of such Act);’’.

12 SEC. 10. UNIFORM FEDERAL ADMINISTRATION OF RECORD13 KEEPING AND REPORTING REQUIREMENTS.

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

15 States Code, is amended by adding at the end the following

16 new subsection:

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

18 ‘‘(1) NO EXEMPTIONS.—No exemption from any

19 recordkeeping or reporting requirement of this sub20 chapter, including paragraph (1), or of any regula21 tion prescribed pursuant to this subchapter may be

22 granted to—

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

24 of a State on behalf of any financial institution

25 which but, for such exemption, would be required
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1 to maintain records or file reports under this

2 subchapter or regulations prescribed by the Sec3 retary of the Treasury pursuant to this sub4 chapter; or

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

6 that any State, any political subdivision of any

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

8 of any such State or political subdivision regu9 lates or examines such institution.

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

11 FEDERAL AGENCY.—Any report required under this

12 subchapter or regulations prescribed by the Secretary

13 of the Treasury pursuant to this subchapter shall be

14 filed by the person required to make the report with

15 the Secretary of the Treasury or an officer or agency

16 of the United States designated by the Secretary to re17 ceive such report.’’.

18 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

19 Section 5318(a) of title 31, United States Code, is amend20 ed—

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

22 ‘‘subsection (b)(2)’’; and

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

24 provided in subsection (i),’’ before ‘‘prescribe an ap25 propriate exemption’’.
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1 (c) REVOCATION OF PRIOR EXEMPTION.—Any exemp2 tion granted under subchapter II of chapter 53 of title 31,

3 United States Code, by the Secretary of the Treasury before

4 the date of the enactment of the Money Laundering Sup5 pression Act of 1994 to any State or local government on

6 behalf of any financial institution (as defined in such sub7 chapter) is hereby revoked as of the end of the 30-day period

8 beginning on the date of the enactment of this Act.

9 SEC. 11. CRIMINAL AND CIVIL PENALTY FOR STRUCTURING

10 DOMESTIC AND INTERNATIONAL TRANS11 ACTIONS.

12 (a) CRIMINAL PENALTY.—Section 5324 of title 31,

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

14 following new subsection:

15 ‘‘(c) CRIMINAL PENALTY.—

16 ‘‘(1) IN GENERAL.—Whoever violates this section

17 shall be fined in accordance with title 18, United

18 States Code, imprisoned for not more than 5 years,

19 or both.

20 ‘‘(2) ENHANCED PENALTY FOR AGGRAVATED

21 CASES.—Whoever violates this section while violating

22 another law of the United States or as part of a pat23 tern of any illegal activity involving more than

24 $100,000 in a 12-month period shall be fined twice

25 the amount provided in subsection (b)(3) or (c)(3) (as
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1 the case may be) of section 3571 of title 18, United

2 States Code, imprisoned for not more than 10 years,

3 or both.’’.

4 (b) AMENDMENT RELATING TO CIVIL PENALTY.—Sec5 tion 5321(a)(4)(A) of title 31, United States Code, is

6 amended by striking ‘‘willfully’’.

7 (c) TECHNICAL AND CONFORMING AMENDMENT.—Sub8 sections (a) and (b) of section 5322 of title 31, United States

9 Code, are amended by inserting ‘‘or 5324’’ after ‘‘section

10 5315’’ each place such term appears.

11 SEC. 12. GAO STUDY OF CASHIERS’ CHECKS.

12 (a) STUDY REQUIRED.—The Comptroller General of

13 the United States shall conduct a study to—

14 (1) determine the extent to which the practice of

15 issuing of cashiers’ checks by financial institutions is

16 vulnerable to money laundering schemes;

17 (2) determine the extent to which additional rec18 ordkeeping requirements should be imposed on finan19 cial institutions which issue cashiers’ checks; and

20 (3) analyze such other factors relating to the use

21 and regulation of cashiers’ checks as the Comptroller

22 General determines to be appropriate.

23 (b) REPORT REQUIRED.—Before the end of the 6-

24 month period beginning on the date of the enactment of this
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1 Act, the Comptroller General shall submit a report to the

2 Congress containing—

3 (1) the findings and conclusions of the Comptrol4 ler General in connection with the study conducted

5 pursuant to subsection (a); and

6 (2) such recommendations for legislative and ad7 ministrative action as the Comptroller General may

8 determine to be appropriate.

9 SEC. 13. TECHNICAL CORRECTIONS.

10 (a) TITLE 31, U.S.C., AMENDMENTS.—

11 (1) Section 5321(a)(5)(A) of title 31, United

12 States Code, is amended by inserting ‘‘any violation

13 of’’ after ‘‘causing’’.

14 (2) Section 5324(a) of title 31, United States

15 Code, is amended—

16 (A) by striking ‘‘section 5313(a), section

17 5325, or the regulations issued thereunder or sec18 tion 5325 or regulations prescribed under such

19 section 5325’’ each place such term appears and

20 inserting ‘‘section 5313(a) or 5325 or any regu21 lation prescribed under any such section’’; and

22 (B) by striking ‘‘with respect to such trans23 action’’.

24 (b) AMENDMENT RELATING TO TITLE 31, U.S.C.—
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1 (1) Effective as of the date of the enactment of

2 the Annunzio-Wylie Anti-Money Laundering Act, sec3 tion 1517(b) of such Act is amended by striking

4 ‘‘5314’’ and inserting ‘‘5318’’.

5 (2) Section 5239 of the Revised Statutes of the

6 United States is amended by redesignating the 2d

7 subsection (c) (as added by section 1502(a) of the An8 nunzio-Wylie Anti-Money Laundering Act) as sub9 section (d).

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