II

106TH CONGRESS

2D SESSION S. 2972

To combat international money laundering and protect the United States

financial system, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 27, 2000

Mr. KERRY (for himself, Mr. GRASSLEY, Mr. SARBANES, Mr. LEVIN, and Mr.

ROCKEFELLER) introduced the following bill; which was read twice and

referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To combat international money laundering and protect the

United States financial system, 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 ‘‘International Counter-Money Laundering and Foreign

6 Anticorruption Act of 2000’’.

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. Findings and purposes.
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TITLE I—INTERNATIONAL COUNTER-MONEY LAUNDERING

MEASURES

Sec. 101. Special measures for jurisdictions, financial institutions, or international transactions of primary money laundering concern.

TITLE II—CURRENCY TRANSACTION REPORTING AMENDMENTS

AND RELATED IMPROVEMENTS

Sec. 201. Amendments relating to reporting of suspicious activities.

Sec. 202. Penalties for violations of geographic targeting orders and certain

recordkeeping requirements, and lengthening effective period of

geographic targeting orders.

Sec. 203. Authorization to include suspicions of illegal activity in written employment references.

Sec. 204. Bank Secrecy Act Advisory Group.

Sec. 205. Agency reports on reconciling penalty amounts.

TITLE III—ANTICORRUPTION MEASURES

Sec. 301. Corruption of foreign governments and ruling elites.

Sec. 302. Support for the Financial Action Task Force on Money Laundering.

1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—The Congress finds as follows:

3 (1) Money laundering, estimated by the Inter4 national Monetary Fund to amount to between 2

5 and 5 percent of global gross domestic product

6 which is at least $600,000,000,000 annually, pro7 vides the financial fuel that permits transnational

8 criminal enterprises to conduct and expand their op9 erations to the detriment of the safety and security

10 of American citizens.

11 (2) Money launderers subvert legitimate finan12 cial mechanisms and banking relationships by using

13 them as protective covering for the movement of

14 criminal proceeds and, by so doing, can undermine

15 the integrity of our financial institutions and of the
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1 global financial and trading systems upon which our

2 prosperity and growth depend.

3 (3) Money launderers rely upon the existence

4 and use of certain jurisdictions outside the United

5 States that offer bank secrecy and special tax or

6 regulatory advantages to nonresidents, and often

7 complement those advantages with weak financial

8 supervisory and regulatory regimes.

9 (4) Certain kinds of transactions involving such

10 offshore jurisdictions—for example, those trans11 actions specifically designed to offer anonymity or

12 the avoidance of regulatory scrutiny—make it dif13 ficult for law enforcement officials and regulators to

14 follow the trail of money earned by criminals and or15 ganized international criminal enterprises that un16 dermine United States national interests and traffic

17 in human misery, whether they are narcotics dealers,

18 terrorists, arms smugglers, traffickers in human

19 beings, or those whose frauds prey upon law abiding

20 citizens.

21 (5) Certain banking relationships between fi22 nancial institutions in the United States and finan23 cial institutions located in such offshore jurisdic24 tions, such as correspondent and payable-through

25 accounts, are particularly vulnerable to abuse be-
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1 cause of the difficulty in obtaining accurate informa2 tion about the beneficial owners whose funds pass

3 through such accounts.

4 (6) The ability to mount effective counter-meas5 ures to international money launderers requires na6 tional, as well as bilateral and multilateral action,

7 using tools specially designed for that effort.

8 (7) The Basle Committee on Banking Regula9 tion and Supervisory Practices and the Financial

10 Action Task Force on Money Laundering, both of

11 which the United States is a member, have each

12 adopted international anti-money laundering prin13 ciples and recommendations.

14 (b) PURPOSES.—The purposes of this Act are as fol15 lows:

16 (1) To ensure that banking transactions and fi17 nancial relationships, the conduct of such trans18 actions and relationships, or both, do not contravene

19 the purposes of subchapter II of chapter 53 of title

20 31, United States Code, section 21 of the Federal

21 Deposit Insurance Act, and chapter 2 of title I of

22 Public Law 91–508, or facilitate the evasion of any

23 such provision, to ensure that the purposes of such

24 subchapter II continue to be fulfilled, and to guard
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1 against international money laundering and other fi2 nancial crimes.

3 (2) To provide a clear national mandate for

4 subjecting to special scrutiny those foreign jurisdic5 tions, financial institutions operating outside the

6 United States, and classes of international trans7 actions that pose particular, identifiable opportuni8 ties for money laundering.

9 (3) To provide the Secretary of the Treasury

10 with broad discretionary authority to take certain

11 measures tailored to the particular money laun12 dering problems presented by specific foreign juris13 dictions, financial institutions operating outside the

14 United States, and classes of international trans15 actions.

16 (4) To provide domestic financial institutions

17 with guidance on particular foreign jurisdictions, fi18 nancial institutions operating outside the United

19 States, and classes of international transactions that

20 are of primary money laundering concern to the

21 United States government.

22 (5) To clarify the terms of the safe harbor from

23 civil liability for filing suspicious activity reports.

24 (6) To strengthen the Secretary’s authority to

25 issue and administer geographic targeting orders,
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1 and to clarify that violations of such orders or any

2 other requirement imposed under the authority con3 tained in chapter 2 of title I of Public Law 91–508

4 and subchapters II and III of chapter 53 of title

5 31, United States Code, may result in criminal and

6 civil penalties.

7 (7) To strengthen the ability of financial insti8 tutions to maintain the integrity of their employee

9 population.

10 (8) To strengthen measures to prevent the use

11 of the United States financial system for personal

12 gain by corrupt foreign officials and to facilitate the

13 repatriation of any stolen assets to the citizens of

14 countries to whom such assets belong.

15 TITLE I—INTERNATIONAL

16 COUNTER–MONEY LAUNDER17 ING MEASURES

18 SEC. 101. SPECIAL MEASURES FOR JURISDICTIONS, FINAN19 CIAL INSTITUTIONS, OR INTERNATIONAL

20 TRANSACTIONS OF PRIMARY MONEY LAUN21 DERING CONCERN.

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

23 title 31, United States Code, is amended by inserting after

24 section 5318 the following new section:
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1 ‘‘§ 5318A. Special measures for jurisdictions, financial

2 institutions, or international transactions

3 of primary money laundering concern

4 ‘‘(a) INTERNATIONAL COUNTER-MONEY LAUN5 DERING REQUIREMENTS.—

6 ‘‘(1) IN GENERAL.—The Secretary may require

7 domestic financial institutions and domestic financial

8 agencies to take 1 or more of the special measures

9 described in subsection (b) if the Secretary finds

10 that reasonable grounds exist for concluding that a

11 jurisdiction outside the United States, 1 or more fi12 nancial institutions operating outside the United

13 States, or 1 or more classes of transactions within,

14 or involving, a jurisdiction outside the United States

15 is of primary money laundering concern, in accord16 ance with subsection (c).

17 ‘‘(2) FORM OF REQUIREMENT.—The special

18 measures described in subsection (b) may be im19 posed by regulation, order, or otherwise as permitted

20 by law, and in such sequence or combination, as the

21 Secretary shall determine.

22 ‘‘(3) PROCESS FOR SELECTING SPECIAL MEAS23 URES.—

24 ‘‘(A) CONSULTATION.—In selecting which

25 special measure or measures to take under this

26 subsection, the Secretary shall consult with the
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1 Chairman of the Board of Governors of the

2 Federal Reserve System and, in the Secretary’s

3 sole discretion, such other agencies and inter4 ested parties as the Secretary may find to be

5 appropriate.

6 ‘‘(B) FACTORS.—The Secretary also shall

7 consider—

8 ‘‘(i) whether similar action has been

9 or is being taken by other nations or multi10 lateral groups;

11 ‘‘(ii) whether the imposition of any

12 particular special measure would create a

13 significant competitive disadvantage, in14 cluding any undue cost or burden associ15 ated with compliance, for financial institu16 tions organized or licensed in the United

17 States; and

18 ‘‘(iii) the extent to which the action

19 would have a significant adverse systemic

20 impact on the international payment, clear21 ance and settlement system, or on legiti22 mate business activities involving the par23 ticular jurisdiction, institution, or class of

24 transactions.
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1 ‘‘(4) NO LIMITATION ON OTHER AUTHORITY.—

2 This section shall not be construed as superseding or

3 otherwise restricting any other authority granted to

4 the Secretary, or to any other agency, by this sub5 chapter or otherwise.

6 ‘‘(b) SPECIAL MEASURES.—The special measures re7 ferred to in subsection (a), with respect to a jurisdiction

8 outside the United States, financial institution operating

9 outside the United States, or class of transaction within,

10 or involving, a jurisdiction outside the United States, are

11 as follows:

12 ‘‘(1) RECORDKEEPING AND REPORTING OF

13 CERTAIN FINANCIAL TRANSACTIONS.—

14 ‘‘(A) IN GENERAL.—The Secretary may re15 quire any domestic financial institution or do16 mestic financial agency to maintain records, file

17 reports, or both, concerning the aggregate

18 amount of transactions, or concerning each

19 transaction, with respect to a jurisdiction out20 side the United States, 1 or more financial in21 stitutions operating outside the United States,

22 or 1 or more classes of transactions within, or

23 involving, a jurisdiction outside the United

24 States, if the Secretary finds any such jurisdic-
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1 tion, institution, or class of transactions to be

2 of primary money laundering concern.

3 ‘‘(B) FORM OF RECORDS AND REPORTS.—

4 Such records and reports shall be made and re5 tained at such time, in such manner, and for

6 such period of time, as the Secretary shall de7 termine, and shall include such information as

8 the Secretary may determine, including—

9 ‘‘(i) the identity and address of the

10 participants in a transaction or relation11 ship, including the identity of the origi12 nator of any funds transfer;

13 ‘‘(ii) the legal capacity in which a par14 ticipant in any transaction is acting;

15 ‘‘(iii) the identity of the beneficial

16 owner of the funds involved in any trans17 action; and

18 ‘‘(iv) a description of any transaction.

19 ‘‘(2) INFORMATION RELATING TO BENEFICIAL

20 OWNERSHIP.—In addition to any other requirement

21 under any other law, the Secretary may require any

22 domestic financial institution or domestic financial

23 agency to take such steps as the Secretary may de24 termine to be reasonable and practicable to obtain

25 and retain information concerning the beneficial
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1 ownership of any account opened or maintained in

2 the United States by a foreign person (other than

3 a foreign entity whose shares are subject to public

4 reporting requirements or are listed and traded on

5 a regulated exchange or trading market), or a rep6 resentative of such a foreign person, that involves

7 a jurisdiction outside the United States, 1 or more

8 financial institutions operating outside the United

9 States, or 1 or more classes of transactions within,

10 or involving, a jurisdiction outside the United States,

11 if the Secretary finds any such jurisdiction, institu12 tion, or transaction to be of primary money laun13 dering concern.

14 ‘‘(3) INFORMATION RELATING TO CERTAIN PAY15 ABLE-THROUGH ACCOUNTS.—If the Secretary finds

16 a jurisdiction outside the United States, 1 or more

17 financial institutions operating outside the United

18 States, or 1 or more classes of transactions within,

19 or involving, a jurisdiction outside the United States

20 to be of primary money laundering concern, the Sec21 retary may require any domestic financial institution

22 or domestic financial agency that opens or maintains

23 a payable-through account in the United States for

24 a foreign financial institution involving any such ju25 risdiction or any such financial institution operating
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1 outside the United States, or a payable-through ac2 count through which any such transaction may be

3 conducted, as a condition of opening or maintaining

4 such account, to—

5 ‘‘(A) identify each customer (and rep6 resentative of such customer) of such financial

7 institution who is permitted to use, or whose

8 transactions are routed through, such payable9 through account; and

10 ‘‘(B) obtain, with respect to each such cus11 tomer (and each such representative), the same

12 information that the depository institution ob13 tains in the ordinary course of business with re14 spect to its customers residing in the United

15 States.

16 ‘‘(4) INFORMATION RELATING TO CERTAIN COR17 RESPONDENT ACCOUNTS.—If the Secretary finds a

18 jurisdiction outside the United States, 1 or more fi19 nancial institutions operating outside the United

20 States, or 1 or more classes of transactions within,

21 or involving, a jurisdiction outside the United States

22 to be of primary money laundering concern, the Sec23 retary may require any domestic financial institution

24 or domestic financial agency that opens or maintains

25 a correspondent account in the United States for a
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1 foreign financial institution involving any such juris2 diction or any such financial institution operating

3 outside the United States, or a correspondent ac4 count through which any such transaction may be

5 conducted, as a condition of opening or maintaining

6 such account, to—

7 ‘‘(A) identify each customer (and rep8 resentative of such customer) of any such finan9 cial institution who is permitted to use, or

10 whose transactions are routed through, such

11 correspondent account; and

12 ‘‘(B) obtain, with respect to each such cus13 tomer (and each such representative), the same

14 information that the depository institution ob15 tains in the ordinary course of business with re16 spect to its customers residing in the United

17 States.

18 ‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN19 ING OR MAINTAINING CERTAIN CORRESPONDENT OR

20 PAYABLE-THROUGH ACCOUNTS.—If the Secretary

21 finds a jurisdiction outside the United States, 1 or

22 more financial institutions operating outside the

23 United States, or 1 or more classes of transactions

24 within, or involving, a jurisdiction outside the United

25 States to be of primary money laundering concern,
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1 the Secretary, in consultation with the Secretary of

2 State, the Attorney General, and the Chairman of

3 the Board of Governors of the Federal Reserve Sys4 tem, may prohibit, or impose conditions upon, the

5 opening or maintaining in the United States of a

6 correspondent account or payable-through account

7 by any domestic financial institution or domestic fi8 nancial agency for or on behalf of a foreign banking

9 institution if such correspondent account or payable10 through account involves any such jurisdiction or in11 stitution, or if any such transaction may be con12 ducted through such correspondent account or pay13 able-through account.

14 ‘‘(c) CONSULTATIONS AND INFORMATION TO BE

15 CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS,

16 OR TRANSACTIONS TO BE OF PRIMARY MONEY LAUN17 DERING CONCERN.—

18 ‘‘(1) IN GENERAL.—In making a finding that

19 reasonable grounds exist for concluding that a juris20 diction outside the United States, 1 or more finan21 cial institutions operating outside the United States,

22 or 1 or more classes of transactions within, or in23 volving, a jurisdiction outside the United States is of

24 primary money laundering concern so as to author25 ize the Secretary to invoke 1 or more of the special
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1 measures of subsection (b), the Secretary shall con2 sult with the Secretary of State, the Attorney Gen3 eral, the Secretary of Commerce, and the United

4 States Trade Representative.

5 ‘‘(2) INFORMATION.—The Secretary also shall

6 consider such information as the Secretary considers

7 to be relevant, including the following potentially rel8 evant factors:

9 ‘‘(A) In the case of a particular

10 jurisdiction—

11 ‘‘(i) the extent to which that jurisdic12 tion or financial institutions operating

13 therein offer bank secrecy or special tax or

14 regulatory advantages to nonresidents or

15 nondomiciliaries of such jurisdiction;

16 ‘‘(ii) the substance and quality of ad17 ministration of that jurisdiction’s bank su18 pervisory and counter-money laundering

19 laws;

20 ‘‘(iii) the relationship between the vol21 ume of financial transactions occurring in

22 that jurisdiction and the size of the juris23 diction’s economy;

24 ‘‘(iv) the extent to which that jurisdic25 tion is characterized as a tax haven or off-
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1 shore banking or secrecy haven by credible

2 international organizations or multilateral

3 expert groups;

4 ‘‘(v) whether the United States has a

5 mutual legal assistance treaty with that ju6 risdiction, and the experience of United

7 States law enforcement officials, regulatory

8 officials, and tax administrators in obtain9 ing information about transactions origi10 nating in or routed through or to such ju11 risdiction; and

12 ‘‘(vi) the extent to which that jurisdic13 tion is characterized by high levels of offi14 cial or institutional corruption.

15 ‘‘(B) In the case of a decision to apply 1

16 or more of the special measures described in

17 subsection (b) only to a financial institution or

18 institutions, or to a transaction or class of

19 transactions, or to both, within, or involving, a

20 particular jurisdiction—

21 ‘‘(i) the extent to which such financial

22 institutions or transactions are used to fa23 cilitate or promote money laundering in or

24 through the jurisdiction;
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1 ‘‘(ii) the extent to which such institu2 tions or transactions are used for legiti3 mate business purposes in such jurisdic4 tion; and

5 ‘‘(iii) the extent to which such action

6 is sufficient to ensure, with respect to

7 transactions involving such jurisdiction and

8 institutions operating in such jurisdiction,

9 that the purposes of this subchapter con10 tinue to be fulfilled, and to guard against

11 international money laundering and other

12 financial crimes.

13 ‘‘(d) NOTIFICATION OF SPECIAL MEASURES IN14 VOKED BY THE SECRETARY.—Within 10 days after the

15 date of any action taken by the Secretary under subsection

16 (a)(1), the Secretary shall notify, in writing, the Com17 mittee on Banking and Financial Services of the House

18 of Representatives and the Committee on Banking, Hous19 ing, and Urban Affairs of the Senate of any such action.

20 ‘‘(e) DEFINITIONS.—Notwithstanding any other pro21 vision of this subchapter, for purposes of this section, the

22 following definitions shall apply:

23 ‘‘(1) DEFINED TERMS.—

24 ‘‘(A) BANK DEFINITIONS.—The following

25 definitions shall apply with respect to a bank:
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1 ‘‘(i) ACCOUNT.—The term ‘account’—

2 ‘‘(I) means a formal banking or

3 business relationship established to

4 provide regular services, dealings, and

5 other financial transactions; and

6 ‘‘(II) includes a demand deposit,

7 savings deposit, or other transaction

8 or asset account and a credit account

9 or other extension of credit.

10 ‘‘(ii) CORRESPONDENT ACCOUNT.—

11 The term ‘correspondent account’ means

12 an account established to receive deposits

13 from and make payments on behalf of a

14 foreign financial institution.

15 ‘‘(iii) PAYABLE-THROUGH ACCOUNT.—

16 The term ‘payable-through account’ means

17 an account, including a transaction ac18 count (as defined in section 19(b)(1)(C) of

19 the Federal Reserve Act), opened at a de20 pository institution by a foreign financial

21 institution by means of which the foreign

22 financial institution permits its customers

23 to engage, either directly or through a sub24 account, in banking activities usual in con-
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1 nection with the business of banking in the

2 United States.

3 ‘‘(B) DEFINITIONS APPLICABLE TO INSTI4 TUTIONS OTHER THAN BANKS.—With respect

5 to any financial institution other than a bank,

6 the Secretary shall define, by regulation, order,

7 or otherwise as permitted by law, the term ‘ac8 count’ and shall include within the meaning of

9 such term arrangements similar to payable10 through and correspondent accounts.

11 ‘‘(2) OTHER TERMS.—The Secretary may, by

12 regulation, order, or otherwise as permitted by law,

13 further define the terms in paragraph (1) and define

14 other terms for the purposes of this section, as the

15 Secretary deems appropriate.’’.

16 (b) CLERICAL AMENDMENT.—The table of sections

17 for subchapter II of chapter 53 of title 31, United States

18 Code, is amended by inserting after the item relating to

19 section 5318 the following new item:

‘‘5318A. Special measures for jurisdictions, financial institutions, or international transactions of primary money laundering concern.’’.
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1 TITLE II—CURRENCY TRANS2 ACTION REPORTING AMEND3 MENTS AND RELATED

4 IMPROVEMENTS

5 SEC. 201. AMENDMENTS RELATING TO REPORTING OF SUS6 PICIOUS ACTIVITIES.

7 (a) AMENDMENT RELATING TO CIVIL LIABILITY IM8 MUNITY FOR DISCLOSURES.—Section 5318(g)(3) of title

9 31, United States Code, is amended to read as follows:

10 ‘‘(3) LIABILITY FOR DISCLOSURES.—

11 ‘‘(A) IN GENERAL.—Any financial institu12 tion that makes a voluntary disclosure of any

13 possible violation of law or regulation to a gov14 ernment agency or makes a disclosure pursuant

15 to this subsection or any other authority, and

16 any director, officer, employee, or agent of such

17 institution who makes, or requires another to

18 make any such disclosure, shall not be liable to

19 any person under any law or regulation of the

20 United States, any constitution, law, or regula21 tion of any State or political subdivision of any

22 State, or under any contract or other legally en23 forceable agreement (including any arbitration

24 agreement), for such disclosure or for any fail25 ure to provide notice of such disclosure to the
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1 person who is the subject of such disclosure or

2 any other person identified in the disclosure.

3 ‘‘(B) RULE OF CONSTRUCTION.—Subpara4 graph (A) shall not be construed as creating—

5 ‘‘(i) any inference that the term ‘per6 son’, as used in such subparagraph, may

7 be construed more broadly than its ordi8 nary usage so to include any government

9 or agency of government; or

10 ‘‘(ii) any immunity against, or other11 wise affecting, any civil or criminal action

12 brought by any government or agency of

13 government to enforce any constitution,

14 law, or regulation of such government or

15 agency.’’.

16 (b) PROHIBITION ON NOTIFICATION OF DISCLO17 SURES.—Section 5318(g)(2) of title 31, United States

18 Code, is amended to read as follows:

19 ‘‘(2) NOTIFICATION PROHIBITED.—

20 ‘‘(A) IN GENERAL.—If a financial institu21 tion or any director, officer, employee, or agent

22 of any financial institution, voluntarily or pur23 suant to this section or any other authority, re24 ports a suspicious transaction to a government

25 agency—
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1 ‘‘(i) the financial institution, director,

2 officer, employee, or agent may not notify

3 any person involved in the transaction that

4 the transaction has been reported; and

5 ‘‘(ii) no officer or employee of the

6 Federal Government or of any state, local,

7 tribal, or territorial government within the

8 United States, who has any knowledge that

9 such report was made may disclose to any

10 person involved in the transaction that the

11 transaction has been reported other than

12 as necessary to fulfill the official duties of

13 such officer or employee.

14 ‘‘(B) DISCLOSURES IN CERTAIN EMPLOY15 MENT REFERENCES.—Notwithstanding the ap16 plication of subparagraph (A) in any other con17 text, subparagraph (A) shall not be construed

18 as prohibiting any financial institution, or any

19 director, officer, employee, or agent of such in20 stitution, from including, in a written employ21 ment reference that is provided in accordance

22 with section 18(v) of the Federal Deposit Insur23 ance Act in response to a request from another

24 financial institution or a written termination

25 notice or employment reference that is provided
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1 in accordance with the rules of the self-regu2 latory organizations registered with the Securi3 ties and Exchange Commission, information

4 that was included in a report to which subpara5 graph (A) applies, but such written employment

6 reference may not disclose that such informa7 tion was also included in any such report or

8 that such report was made.’’.

9 SEC. 202. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC

10 TARGETING ORDERS AND CERTAIN RECORD11 KEEPING REQUIREMENTS, AND LENGTH12 ENING EFFECTIVE PERIOD OF GEOGRAPHIC

13 TARGETING ORDERS.

14 (a) CIVIL PENALTY FOR VIOLATION OF TARGETING

15 ORDER.—Section 5321(a)(1) of title 31, United States

16 Code, is amended—

17 (1) by inserting ‘‘or order issued’’ after ‘‘sub18 chapter or a regulation prescribed’’; and

19 (2) by inserting ‘‘, or willfully violating a regu20 lation prescribed under section 21 of the Federal

21 Deposit Insurance Act or section 123 of Public Law

22 91–508,’’ after ‘‘section 5314 and 5315)’’.

23 (b) CRIMINAL PENALTIES FOR VIOLATION OF TAR24 GETING ORDER.—Section 5322 of title 31, United States

25 Code, is amended—
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1 (1) in subsection (a)—

2 (A) by inserting ‘‘or order issued’’ after

3 ‘‘willfully violating this subchapter or a regula4 tion prescribed’’; and

5 (B) by inserting ‘‘, or willfully violating a

6 regulation prescribed under section 21 of the

7 Federal Deposit Insurance Act or section 123

8 of Public Law 91–508,’’ after ‘‘under section

9 5315 or 5324)’’; and

10 (2) in subsection (b)—

11 (A) by inserting ‘‘or order issued’’ after

12 ‘‘willfully violating this subchapter or a regula13 tion prescribed’’; and

14 (B) by inserting ‘‘or willfully violating a

15 regulation prescribed under section 21 of the

16 Federal Deposit Insurance Act or section 123

17 of Public Law 91–508,’’ after ‘‘under section

18 5315 or 5324),’’.

19 (c) STRUCTURING TRANSACTIONS TO EVADE TAR20 GETING ORDER OR CERTAIN RECORDKEEPING REQUIRE21 MENTS.—Section 5324(a) of title 31, United States Code,

22 is amended—

23 (1) by inserting a comma after ‘‘shall’’;

24 (2) by striking ‘‘section—’’ and inserting ‘‘sec25 tion, the reporting or recordkeeping requirements
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1 imposed by any order issued under section 5326, or

2 the recordkeeping requirements imposed by any reg3 ulation prescribed under section 21 of the Federal

4 Deposit Insurance Act or section 123 of Public Law

5 91–508—’’;

6 (3) in paragraph (1) by inserting ‘‘, to file a re7 port or to maintain a record required by an order

8 issued under section 5326, or to maintain a record

9 required pursuant to any regulation prescribed

10 under section 21 of the Federal Deposit Insurance

11 Act or section 123 of Public Law 91–508’’ after

12 ‘‘regulation prescribed under any such section’’; and

13 (4) in paragraph (2) by inserting ‘‘, to file a re14 port or to maintain a record required by any order

15 issued under section 5326, or to maintain a record

16 required pursuant to any regulation prescribed

17 under section 5326, or to maintain a record required

18 pursuant to any regulation prescribed under section

19 21 of the Federal Deposit Insurance Act or section

20 123 of Public Law 91–508,’’ after ‘‘regulation pre21 scribed under any such section’’.

22 (d) LENGTHENING EFFECTIVE PERIOD OF GEO23 GRAPHIC TARGETING ORDERS.—Section 5326(d) of title

24 31, United States Code, is amended by striking ‘‘60’’ after

25 ‘‘shall be effective for more than’’ and inserting ‘‘180’’.
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1 SEC. 203. AUTHORIZATION TO INCLUDE SUSPICIONS OF IL2 LEGAL ACTIVITY IN WRITTEN EMPLOYMENT

3 REFERENCES.

4 Section 18 of the Federal Deposit Insurance Act (12

5 U.S.C. 1828) is amended by adding at the end the fol6 lowing new paragraph:

7 ‘‘(v) WRITTEN EMPLOYMENT REFERENCES MAY

8 CONTAIN SUSPICIONS OF INVOLVEMENT IN ILLEGAL AC9 TIVITY.—

10 ‘‘(1) IN GENERAL.—Notwithstanding any other

11 provision of law, any insured depository institution,

12 and any director, officer, employee, or agent of such

13 institution, may disclose in any written employment

14 reference relating to a current or former institution15 affiliated party of such institution which is provided

16 to another insured depository institution in response

17 to a request from such other institution, information

18 concerning the possible involvement of such institu19 tion-affiliated party in potentially unlawful activity.

20 ‘‘(2) DEFINITION.—For purposes of this sub21 section, the term ‘insured depository institution’ in22 cludes any uninsured branch or agency of a foreign

23 bank.’’.

24 SEC. 204. BANK SECRECY ACT ADVISORY GROUP.

25 Section 1564 of the Annunzio-Wylie Anti-Money

26 Laundering Act (31 U.S.C. 5311 note) is amended—
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1 (1) in subsection (a), by inserting ‘‘, of non2 governmental organizations advocating financial pri3 vacy,’’ after ‘‘Drug Control Policy’’; and

4 (2) in subsection (c), by inserting ‘‘, other than

5 subsections (a) and (d) of such Act which shall

6 apply’’ before the period at the end.

7 SEC. 205. AGENCY REPORTS ON RECONCILING PENALTY

8 AMOUNTS.

9 Before the end of the 1-year period beginning on the

10 date of the enactment of this Act, the Secretary of the

11 Treasury and the Federal banking agencies (as defined in

12 section 3 of the Federal Deposit Insurance Act) shall each

13 submit their respective reports to the Congress containing

14 recommendations on possible legislation to conform the

15 penalties imposed on depository institutions (as defined in

16 section 3 of the Federal Deposit Insurance Act) for viola17 tions of subchapter II of chapter 53 of title 31, United

18 States Code, to the penalties imposed on such institutions

19 under section 8 of the Federal Deposit Insurance Act.

20 TITLE III—ANTICORRUPTION

21 MEASURES

22 SEC. 301. CORRUPTION OF FOREIGN GOVERNMENTS AND

23 RULING ELITES.

24 (a) SENSE OF THE CONGRESS.—It is the sense of the

25 Congress that, in deliberations between the United States
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1 Government and any other country on money laundering

2 and corruption issues, the United States Government

3 should—

4 (1) emphasize an approach that addresses not

5 only the laundering of the proceeds of traditional

6 criminal activity but also the increasingly endemic

7 problem of governmental corruption and the corrup8 tion of ruling elites;

9 (2) encourage the enactment and enforcement

10 of laws in such country to prevent money laundering

11 and systemic corruption;

12 (3) make clear that the United States will take

13 all steps necessary to identify the proceeds of foreign

14 government corruption which have been deposited in

15 United States financial institutions and return such

16 proceeds to the citizens of the country to whom such

17 assets belong; and

18 (4) advance policies and measures to promote

19 good government and to prevent and reduce corrup20 tion and money laundering, including through in21 structions to the United States Executive Director of

22 each international financial institution (as defined in

23 section 1701(c) of the International Financial Insti24 tutions Act) to advocate such policies as a system-
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1 atic element of economic reform programs and ad2 vice to member governments.

3 (b) GUIDANCE TO FINANCIAL INSTITUTIONS OPER4 ATING IN THE UNITED STATES ON TRANSACTIONS BY OR

5 ON BEHALF OF CORRUPT FOREIGN OFFICIALS.—The

6 Secretary of the Treasury, in consultation with the Attor7 ney General of the United States and the Federal func8 tional regulators (as defined in section 509(2) of the

9 Gramm-Leach-Bliley Act), shall, before the end of the

10 180-day period beginning on the date of the enactment

11 of this Act, issue guidance to financial institutions oper12 ating in the United States on appropriate practices and

13 procedures to reduce the risk that such institutions may

14 become depositories for, or transmitters of, the proceeds

15 of corruption by or on behalf of senior foreign officials

16 and their close associates.

17 SEC. 302. SUPPORT FOR THE FINANCIAL ACTION TASK

18 FORCE ON MONEY LAUNDERING.

19 It is the sense of the Congress that—

20 (1) the United States should continue to ac21 tively and publicly support the objectives of the Fi22 nancial Action Task Force on Money Laundering

23 (hereafter in this section referred to as the

24 ‘‘FATF’’) with regard to combating international

25 money laundering;
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1 (2) the FATF should identify noncooperative

2 jurisdictions in as expeditious a manner as possible

3 and publicly release a list directly naming those ju4 risdictions identified;

5 (3) the United States should support the public

6 release of the list naming noncooperative jurisdic7 tions identified by the FATF;

8 (4) the United States should encourage the

9 adoption of the necessary international action to en10 courage compliance by the identified noncooperative

11 jurisdictions; and

12 (5) the United States should take the necessary

13 countermeasures to protect the United States econ14 omy against money of unlawful origin and encourage

15 other nations to do the same.

Æ