II

105TH CONGRESS

2D SESSION S. 2165

To amend title 31 of the United States Code to improve methods for

preventing financial crimes, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 11, 1998

Mr. GRASSLEY introduced the following bill; which was read twice and referred

to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend title 31 of the United States Code to improve

methods for preventing financial crimes, 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 ‘‘Money Laundering De5 terrence Act of 1998’’.

6 SEC. 2. FINDINGS AND PURPOSES.

7 (a) FINDINGS.—The Congress finds that—

8 (1) the dollar amount involved in international

9 money laundering likely exceeds $500,000,000,000

10 annually;
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1 (2) organized crime groups are continually de2 vising new methods to launder the proceeds of illegal

3 activities in an effort to subvert the transaction re4 porting requirements of subchapter II of chapter 53

5 of title 31, United States Code, and chapter 2 of

6 Public Law 91–508;

7 (3) a number of methods to launder the pro8 ceeds of criminal activity were identified and de9 scribed in congressional hearings, including the use

10 of financial service providers which are not deposi11 tory institutions, such as money transmitters and

12 check cashing services, the purchase and resale of

13 durable goods, and the exchange of foreign currency

14 in the so-called ‘‘black market’’;

15 (4) recent successes in combating domestic

16 money laundering have involved the application of

17 the heretofore seldom-used authority granted to the

18 Secretary of the Treasury and the cooperative

19 efforts of Federal, State, and local law enforcement

20 agencies; and

21 (5) such successes have been exemplified by the

22 implementation of the geographic targeting order in

23 New York City and through the work of the El

24 Dorado task force, a group comprised of agents of

25 Department of the Treasury law enforcement agen-
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1 cies, New York State troopers, and New York City

2 police officers.

3 (b) PURPOSES.—The purposes of this Act are—

4 (1) to amend subchapter II of chapter 53 of

5 title 31, United States Code, to provide the law en6 forcement community with the necessary legal au7 thority to combat money laundering;

8 (2) to broaden the law enforcement commu9 nity’s access to transactional information already

10 being collected which relate to coins and currency re11 ceived in a nonfinancial trade or business; and

12 (3) to express the sense of the Congress that

13 the Secretary of the Treasury should expedite the

14 development and implementation of controls de15 signed to deter money laundering activities at cer16 tain types of financial institutions.

17 SEC. 3. AMENDMENTS RELATING TO REPORTING OF SUS18 PICIOUS ACTIVITIES.

19 (a) AMENDMENT RELATING TO CIVIL LIABILITY IM20 MUNITY FOR DISCLOSURES.—Section 5318(g)(3) of title

21 31, United States Code, is amended to read as follows:

22 ‘‘(3) LIABILITY FOR DISCLOSURES.—

23 ‘‘(A) IN GENERAL.—Notwithstanding any

24 other provision of law, an exempted entity, as

25 defined in subparagraph (B), shall not be liable
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1 to any person under any law or regulation of

2 the United States, any constitution, law, or reg3 ulation of any State or political subdivision

4 thereof, or under any contract or other legally

5 enforceable agreement (including any arbitra6 tion agreement), for a disclosure described in

7 subparagraph (B)(i), or for any failure to notify

8 the person who is the subject of the disclosure

9 or any other person identified in the disclosure.

10 ‘‘(B) EXEMPTED ENTITIES.—For purposes

11 of this paragraph, the term ‘exempted entity’

12 means—

13 ‘‘(i) any financial institution that—

14 ‘‘(I) makes a disclosure of any

15 possible violation of law or regulation

16 to an appropriate government agency;

17 or

18 ‘‘(II) makes a disclosure pursu19 ant to this subsection or any other au20 thority;

21 ‘‘(ii) any director, officer, employee, or

22 agent of an institution referred to in clause

23 (i) who makes, or requires another to make

24 a disclosure referred to in clause (i); and
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1 ‘‘(iii) any independent public account2 ant who audits any such financial institu3 tion and makes a disclosure described in

4 clause (i).’’.

5 (b) PROHIBITION ON NOTIFICATION OF DISCLO6 SURES.—Section 5318(g)(2) of title 31, United States

7 Code, is amended to read as follows:

8 ‘‘(2) NOTIFICATION PROHIBITED.—

9 ‘‘(A) IN GENERAL.—If a financial institu10 tion, any director, officer, employee, or agent of

11 any financial institution, or any independent

12 public accountant who audits any such financial

13 institution, voluntarily or pursuant to this sec14 tion or any other authority, reports a suspicious

15 transaction to an appropriate government agen16 cy—

17 ‘‘(i) the financial institution, director,

18 officer, employee, agent, or accountant

19 may not notify any person involved in the

20 transaction that the transaction has been

21 reported and may not disclose any infor22 mation included in the report to any such

23 person; and

24 ‘‘(ii) no other person, including any

25 officer or employee of any government,
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1 who has any knowledge that such report

2 was made, may disclose to any other per3 son or government agency the fact that

4 such report was made.

5 ‘‘(B) EXCEPTION FOR USE BY GOVERN6 MENT OFFICERS IN OFFICIAL CAPACITY.—Para7 graph (1) does not apply to the use or disclo8 sure by an officer or employee of an appropriate

9 government agency of any report under this

10 subsection, or information included in the re11 port, to the extent that the use is made solely

12 in conjunction with the performance of the offi13 cial duties of the officer or employee to conduct

14 or assist in the conduct of a law enforcement or

15 regulatory inquiry, investigation, or proceeding.

16 ‘‘(C) COORDINATION WITH PARAGRAPH

17 (5).—Subparagraph (A) shall not be construed

18 to prohibit any financial institution, or any di19 rector, officer, employee, or agent of a financial

20 institution, from including, in a written employ21 ment reference that is provided in accordance

22 with paragraph (5) in response to a request

23 from another financial institution, information

24 that was included in a report to which subpara25 graph (A) applies, but such written employment
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1 reference may not disclose that the information

2 was also included in any such report or that a

3 report was made.’’.

4 (c) AUTHORIZATION TO INCLUDE SUSPICIONS OF IL5 LEGAL ACTIVITY IN EMPLOYMENT REFERENCES.—Sec6 tion 5318(g) of title 31, United States Code, is amended

7 by adding at the end the following new paragraph:

8 ‘‘(5) EMPLOYMENT REFERENCES MAY INCLUDE

9 SUSPICIONS OF INVOLVEMENT IN ILLEGAL ACTIV10 ITY.—

11 ‘‘(A) IN GENERAL.—Notwithstanding any

12 other provision of law, and subject to subpara13 graph (B) of this paragraph and paragraph

14 (2)(C), any financial institution, and any direc15 tor, officer, employee, or agent of a financial in16 stitution, may disclose, in any written employ17 ment reference relating to a current or former

18 institution-affiliated party of the institution

19 that is provided to another financial institution

20 in response to a request from the other institu21 tion, information concerning the possible in22 volvement of the institution-affiliated party in

23 any suspicious transaction relevant to a possible

24 violation of law or regulation.
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1 ‘‘(B) LIMIT ON LIABILITY FOR DISCLO2 SURES.—A financial institution, and any direc3 tor, officer, employee, or agent of the institu4 tion, shall not be liable to any person under any

5 law or regulation of the United States, any con6 stitution, law, or regulation of any State or po7 litical subdivision thereof, or under any contract

8 or other legally enforceable agreement (includ9 ing any arbitration agreement), for any disclo10 sure under subparagraph (A), to the extent

11 that—

12 ‘‘(i) the disclosure does not contain in13 formation that the institution, director, of14 ficer, employee, agent, or accountant

15 knows to be false; and

16 ‘‘(ii) the institution, director, officer,

17 employee, agent, or accountant has not

18 acted with malice or with reckless dis19 regard for the truth in making the disclo20 sure.

21 ‘‘(C) INSTITUTION-AFFILIATED PARTY DE22 FINED.—For purposes of this paragraph, the

23 term ‘institution-affiliated party’ has the same

24 meaning as in section 3(u) of the Federal De25 posit Insurance Act, except that section 3(u)
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1 shall be applied by substituting the term ‘finan2 cial institution’ for the term ‘insured depository

3 institution’.’’.

4 (d) AMENDMENTS RELATING TO AVAILABILITY OF

5 SUSPICIOUS ACTIVITY REPORTS FOR OTHER AGEN6 CIES.—Section 5319 of title 31, United States Code, is

7 amended—

8 (1) in the first sentence, by striking ‘‘5314, or

9 5316’’ and inserting ‘‘5313A, 5314, 5316, or

10 5318(g)’’;

11 (2) in the last sentence, by inserting ‘‘under

12 section 5313, 5313A, 5314, 5316, or 5318(g)’’ after

13 ‘‘records of reports’’; and

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

15 Secretary of the Treasury may permit the dissemi16 nation of information in any such report to any self17 regulatory organization (as defined in section

18 3(a)(26) of the Securities Exchange Act of 1934), if

19 the Securities and Exchange Commission determines

20 that the dissemination is necessary or appropriate to

21 permit the self-regulatory organization to perform

22 its functions under the Securities Exchange Act of

23 1934 and regulations prescribed under that Act.’’.
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1 SEC. 4. EXPANSION OF SCOPE OF SUMMONS POWER.

2 Section 5318(b)(1) of title 31, United States Code,

3 is amended by inserting ‘‘examinations to determine com4 pliance with the requirements of this subchapter, section

5 21 of the Federal Deposit Insurance Act, and chapter 2

6 of Public Law 91–508 and regulations prescribed pursu7 ant to those provisions, investigations relating to reports

8 filed by financial institutions or other persons pursuant

9 to any such provision or regulation, and’’ after ‘‘in connec10 tion with’’.

11 SEC. 5. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TAR12 GETING ORDERS AND CERTAIN RECORD13 KEEPING REQUIREMENTS.

14 (a) CIVIL PENALTY FOR VIOLATION OF TARGETING

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

16 Code, is amended by inserting ‘‘or order issued’’ after

17 ‘‘regulation prescribed’’.

18 (b) CRIMINAL PENALTIES FOR VIOLATION OF TAR19 GETING ORDER.—Subsections (a) and (b) of section 5322

20 of title 31, United States Code, are amended by inserting

21 ‘‘or order issued’’ after ‘‘regulation prescribed’’ each place

22 that term appears.

23 (c) STRUCTURING TRANSACTIONS TO EVADE TAR24 GETING ORDER OR CERTAIN RECORDKEEPING REQUIRE25 MENTS.—Section 5324(a) of title 31, United States Code,

26 is amended—
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1 (1) by inserting a comma after ‘‘shall’’;

2 (2) by striking ‘‘section—’’ and inserting ‘‘sec3 tion, the reporting requirements imposed by any

4 order issued under section 5326, or the record5 keeping requirements imposed by any regulation pre6 scribed under section 21 of the Federal Deposit In7 surance Act or section 123 of Public Law

8 91–508—’’; and

9 (3) in paragraphs (1) and (2), by inserting

10 ‘‘, to file a report required by any order issued under

11 section 5326, or to maintain a record required pur12 suant to any regulation prescribed under section 21

13 of the Federal Deposit Insurance Act or section 123

14 of Public Law 91–508’’ after ‘‘regulation prescribed

15 under any such section’’ each place that term ap16 pears.

17 (d) INCREASE IN CIVIL PENALTIES FOR VIOLATION

18 OF CERTAIN RECORDKEEPING REQUIREMENTS.—

19 (1) FEDERAL DEPOSIT INSURANCE ACT.—Sec20 tion 21(j)(1) of the Federal Deposit Insurance Act

21 (12 U.S.C. 1829b(j)(1)) is amended by striking

22 ‘‘$10,000’’ and inserting ‘‘the greater of—

23 ‘‘(A) the amount (not to exceed $100,000)

24 involved in the transaction (if any) with respect

25 to which the violation occurred; or
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1 ‘‘(B) $25,000’’.

2 (2) PUBLIC LAW 91–508.—Section 125(a) of

3 Public Law 91–508 (12 U.S.C. 1955(a)) is amended

4 by striking ‘‘$10,000’’ and inserting ‘‘the greater

5 of—

6 ‘‘(1) the amount (not to exceed $100,000) in7 volved in the transaction (if any) with respect to

8 which the violation occurred; or

9 ‘‘(2) $25,000’’.

10 (e) CRIMINAL PENALTIES FOR VIOLATION OF CER11 TAIN RECORDKEEPING REQUIREMENTS.—

12 (1) SECTION 126.—Section 126 of Public Law

13 91–508 (12 U.S.C. 1956) is amended to read as fol14 lows:

15 ‘‘SEC. 126. CRIMINAL PENALTY.

16 ‘‘A person that willfully violates this chapter, section

17 21 of the Federal Deposit Insurance Act, or a regulation

18 prescribed under this chapter or that section 21, shall be

19 fined not more than $250,000, or imprisoned for not more

20 than 5 years, or both.’’.

21 (2) SECTION 127.—Section 127 of Public Law

22 91–508 (12 U.S.C. 1957) is amended to read as fol23 lows:
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1 ‘‘SEC. 127. ADDITIONAL CRIMINAL PENALTY IN CERTAIN

2 CASES.

3 ‘‘A person that willfully violates this chapter, section

4 21 of the Federal Deposit Insurance Act, or a regulation

5 prescribed under this chapter or that section 21, while vio6 lating another law of the United States or as part of a

7 pattern of any illegal activity involving more than

8 $100,000 in a 12-month period, shall be fined not more

9 than $500,000, imprisoned for not more than 10 years,

10 or both.’’.

11 SEC. 6. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

12 Section 407(d) of the Money Laundering Suppression

13 Act of 1994 (31 U.S.C. 5311 note) is amended by striking

14 ‘‘subsection (c)’’ and inserting ‘‘subsection (c)(2)’’.

15 SEC. 7. LIMITED EXEMPTION FROM PAPERWORK REDUC16 TION ACT.

17 Section 3518(c)(1) of title 44, United States Code,

18 is amended—

19 (1) by redesignating subparagraphs (C) and

20 (D) as subparagraphs (D) and (E), respectively; and

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

23 ‘‘(C) pursuant to regulations prescribed or or24 ders issued by the Secretary of the Treasury under

25 section 5318(h) or 5326 of title 31;’’.
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1 SEC. 8. TRANSFER OF REPORTING REQUIREMENTS FROM

2 SECTION 6050I OF THE INTERNAL REVENUE

3 CODE OF 1986 TO TITLE 31, UNITED STATES

4 CODE.

5 (a) REENACTMENT OF SECTION 6050I.—Subchapter

6 2 of chapter 53 of title 31, United States Code, is amend7 ed by inserting after section 5313 the following new sec8 tion:

9 ‘‘SEC. 5313A. REPORTS RELATING TO COINS AND CUR10 RENCY RECEIVED IN NONFINANCIAL TRADE

11 OR BUSINESS.

12 ‘‘(a) COIN AND CURRENCY RECEIPTS OF MORE

13 THAN $10,000.—Any person—

14 ‘‘(1) who is engaged in a trade or business; and

15 ‘‘(2) who, in the course of that trade or busi16 ness, receives more than $10,000 in coins or cur17 rency in 1 transaction (or 2 or more related trans18 actions),

19 shall file a report described in subsection (b) with respect

20 to the transaction (or related transactions) at such time

21 as the Secretary may by regulation prescribe.

22 ‘‘(b) FORM AND MANNER OF REPORTS.—A report is

23 described in this subsection if the report—

24 ‘‘(1) is in such form as the Secretary may pre25 scribe;

26 ‘‘(2) contains—
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1 ‘‘(A) the name, address, and taxpayer

2 identification number of the person from whom

3 the coins or currency was received;

4 ‘‘(B) the amount of coins or currency re5 ceived;

6 ‘‘(C) the date and nature of the trans7 action; and

8 ‘‘(D) such other information as the Sec9 retary may prescribe.

10 ‘‘(c) EXCEPTIONS.—

11 ‘‘(1) AMOUNTS RECEIVED BY FINANCIAL INSTI12 TUTIONS.—Subsection (a) does not apply to

13 amounts received in a transaction reported under

14 section 5313 and regulations prescribed under that

15 section.

16 ‘‘(2) TRANSACTIONS OCCURRING OUTSIDE THE

17 UNITED STATES.—Except to the extent provided in

18 regulations prescribed by the Secretary, subsection

19 (a) does not apply to any transaction if the entire

20 transaction occurs outside of the United States.

21 ‘‘(d) CURRENCY INCLUDES FOREIGN CURRENCY AND

22 CERTAIN MONETARY INSTRUMENTS.—

23 ‘‘(1) IN GENERAL.—For purposes of this sec24 tion, the term ‘currency’ includes—

25 ‘‘(A) foreign currency; and
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1 ‘‘(B) to the extent provided in regulations

2 prescribed by the Secretary, any monetary in3 strument (whether or not in bearer form) with

4 a face amount of not more than $10,000.

5 ‘‘(2) SCOPE OF APPLICATION.—Paragraph

6 (1)(B) does not apply to any check drawn on the ac7 count of the writer in a financial institution referred

8 to in subparagraph (A), (B), (C), (D), (E), (F), (G),

9 (J), (K), (R), or (S) of section 5312(a)(2).

10 ‘‘(e) COINS OR CURRENCY RECEIVED BY CRIMINAL

11 COURT CLERKS.—

12 ‘‘(1) IN GENERAL.—Each clerk of a Federal or

13 State criminal court who receives more than $10,000

14 in coins or currency as bail for any individual

15 charged with a specified criminal offense shall file a

16 report described in paragraph (2) (at such time as

17 the Secretary may by regulation prescribe) with re18 spect to the receipt of such bail.

19 ‘‘(2) REPORT.—A report is described in this

20 paragraph if the report—

21 ‘‘(A) is in such form as the Secretary may

22 prescribe; and

23 ‘‘(B) contains—

24 ‘‘(i) the name, address, and taxpayer

25 identification number of—
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1 ‘‘(I) the individual charged with

2 the specified criminal offense; and

3 ‘‘(II) each person posting the bail

4 (other than a person licensed as a bail

5 bondsman);

6 ‘‘(ii) the amount of coins or currency

7 received;

8 ‘‘(iii) the date on which the coins or

9 currency were received; and

10 ‘‘(iv) such other information as the

11 Secretary may prescribe.

12 ‘‘(3) SPECIFIED CRIMINAL OFFENSE.—For pur13 poses of this subsection, the term ‘specified criminal

14 offense’ means—

15 ‘‘(A) any Federal criminal offense involv16 ing a controlled substance;

17 ‘‘(B) racketeering (as defined in section

18 1951, 1952, or 1955 of title 18, United States

19 Code);

20 ‘‘(C) money laundering (as defined in sec21 tion 1956 or 1957 of title 18, United States

22 Code); and

23 ‘‘(D) any State criminal offense that is

24 substantially similar to an offense described in
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1 subparagraph (A), (B), or (C) of this para2 graph.

3 ‘‘(4) INFORMATION TO FEDERAL PROSECU4 TORS.—Each clerk required to include in a report

5 under paragraph (1) the information described in

6 paragraph (2)(B) with respect to an individual de7 scribed in paragraph (2)(B)(i)(I) shall furnish (at

8 such time as the Secretary may by regulation pre9 scribe) a written statement showing such informa10 tion to the United States Attorney for the jurisdic11 tion in which the individual resides and the jurisdic12 tion in which the specified criminal offense occurred.

13 ‘‘(5) INFORMATION TO PAYORS OF BAIL.—Each

14 clerk required to file a report under paragraph (1)

15 shall furnish (at such time as the Secretary may by

16 regulation prescribe) to each person whose name is

17 required to be set forth in the report by reason of

18 paragraph (2)(B)(i)(II) a written statement show19 ing—

20 ‘‘(A) the name and address of the clerk’s

21 office required to file the report; and

22 ‘‘(B) the aggregate amount of coins and

23 currency described in paragraph (1) received by

24 the clerk.’’.
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1 (b) PROHIBITION ON STRUCTURING TRANS2 ACTIONS.—

3 (1) IN GENERAL.—Section 5324 of title 31,

4 United States Code, is amended—

5 (A) by redesignating subsections (b) and

6 (c) as subsections (c) and (d), respectively; and

7 (B) by inserting after subsection (a) the

8 following new subsection:

9 ‘‘(b) DOMESTIC COIN AND CURRENCY TRANS10 ACTIONS INVOLVING NONFINANCIAL TRADES OR BUSI11 NESSES.—No person shall, for the purpose of evading the

12 reporting requirements of section 5313A or any regulation

13 prescribed under that section—

14 ‘‘(1) cause or attempt to cause a nonfinancial

15 trade or business to fail to file a report required

16 under section 5313A or any regulation prescribed

17 under that section;

18 ‘‘(2) cause or attempt to cause a nonfinancial

19 trade or business to file a report required under sec20 tion 5313A or any regulation prescribed under that

21 section that contains a material omission or

22 misstatement of fact; or

23 ‘‘(3) structure or assist in structuring, or at24 tempt to structure or assist in structuring, any
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1 transaction with 1 or more nonfinancial trades or

2 businesses.’’.

3 (2) TECHNICAL AND CONFORMING AMEND4 MENTS.—Title 31, United States Code, is amend5 ed—

6 (A) in the subsection heading for section

7 5324(a), by inserting ‘‘INVOLVING FINANCIAL

8 INSTITUTIONS’’ after ‘‘TRANSACTIONS’’; and

9 (B) in section 5317(c), by striking

10 ‘‘5324(b)’’ and inserting ‘‘5324(c)’’.

11 (c) DEFINITION OF NONFINANCIAL TRADE OR BUSI12 NESS.—

13 (1) IN GENERAL.—Section 5312(a) of title 31,

14 United States Code, is amended—

15 (A) by redesignating paragraphs (4) and

16 (5) as paragraphs (5) and (6), respectively; and

17 (B) by inserting after paragraph (3) the

18 following new paragraph:

19 ‘‘(4) The term ‘nonfinancial trade or business’

20 means any trade or business, other than a financial

21 institution, that is subject to the reporting require22 ments of section 5313 and regulations prescribed

23 under that section.’’.

24 (2) TECHNICAL AND CONFORMING AMEND25 MENTS.—
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1 (A) TITLE 31.—Title 31, United States

2 Code, is amended—

3 (i) in section 5312(a)(3)(C), by strik4 ing ‘‘section 5316,’’ and inserting ‘‘sections

5 5313A and 5316,’’; and

6 (ii) in subsections (a) through (f) of

7 section 5318, and in sections 5326 and

8 5328, by inserting ‘‘or nonfinancial trade

9 or business’’ after ‘‘financial institution’’

10 each place that term appears.

11 (B) TITLE 18.—Title 18, United States

12 Code, is amended—

13 (i) in section 981(a)(1)(A), by striking

14 ‘‘5313(a) or 5324(a) of title 31,’’ and in15 serting ‘‘5313(a) or 5313A of title 31, of

16 subsection (a) or (b) of section 5324 of

17 title 31,’’; and

18 (ii) in section 982(a)(1), by inserting

19 ‘‘5313A,’’ after ‘‘5313(a),’’.

20 (d) REPEAL OF DUPLICATE PROVISION.—Section

21 6050I of the Internal Revenue Code of 1986 is repealed.

22 (e) CLERICAL AMENDMENTS.—

23 (1) TITLE 31.—The table of sections for chap24 ter 53 of title 31, United States Code, is amended
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1 by inserting after the item relating to section 5313

2 the following new item:

‘‘5313A. Reports relating to coins and currency received in nonfinancial trade

or business.’’.

3 (2) INTERNAL REVENUE CODE OF 1986.—The

4 Internal Revenue Code of 1986 is amended—

5 (A) in the table of sections for subpart B

6 of part III of subchapter A of chapter 61, by

7 striking the item relating to section 6050I;

8 (B) in section 6103—

9 (i) in subsection (l), by striking para10 graph (15);

11 (ii) in subsection (p)(3)(A), by strik12 ing ‘‘(15),’’;

13 (iii) in subsection (p)(4), in the mate14 rial preceding subparagraph (A), by strik15 ing ‘‘(12)’’ and all that follows through

16 ‘‘(16)’’ and inserting ‘‘(12), or (16)’’; and

17 (iv) in subsection (p)(4)(F)(ii), by

18 striking ‘‘(14), or (15)’’ and inserting ‘‘or

19 (14)’’;

20 (C) in section 6721(e)(2)—

21 (i) in subparagraph (A), by striking

22 ‘‘6050I,’’ and by adding ‘‘or’’ at the end;

23 (ii) in subparagraph (B), by striking

24 ‘‘or’’ at the end and inserting ‘‘and’’; and
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1 (iii) by striking subparagraph (C);

2 (D) in section 6724(d)(1)(B), by striking

3 clause (iv), and by redesignating clauses (v)

4 through the first clause designated as clause

5 (xv) as clauses (iv) through (xiv), respectively;

6 (E) in section 6724(d)(2), by striking sub7 paragraph (K), and by redesignating subpara8 graphs (L) through (Z) as subparagraphs (K)

9 through (Y), respectively; and

10 (F) in section 7203, by striking the last

11 sentence.

12 (f) REGULATIONS; EFFECTIVE DATE.—

13 (1) REGULATIONS.—Regulations that the Sec14 retary of the Treasury determines are necessary to

15 implement this section shall be published in final

16 form before the end of the 6-month period beginning

17 on the date of enactment of this Act.

18 (2) EFFECTIVE DATE.—The amendments made

19 by this section shall take effect at the end of the 6-

20 month period beginning on the date on which the

21 regulations referred to in paragraph (1) are pub22 lished in final form.

23 SEC. 9. SENSE OF THE CONGRESS.

24 It is the sense of the Congress that the Secretary of

25 the Treasury should, in conjunction with the Board of
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1 Governors of the Federal Reserve System, expedite the

2 promulgation of ‘‘know your customer’’ regulations for fi3 nancial institutions.

Æ