II 

110TH CONGRESS 

1ST SESSION S. 473 

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

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 1, 2007 

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

to the Committee on the Judiciary 

A BILL 

To improve the prohibitions on money laundering, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Combating Money Laundering and Terrorist Financing 

6 Act of 2007’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—MONEY LAUNDERING 

Sec. 101. Specified unlawful activity. 


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Sec. 102. Making the domestic money laundering statute apply to ‘‘reverse 

money laundering’’ and interstate transportation. 

Sec. 103. Procedure for issuing subpoenas in money laundering cases. 

Sec. 104. Transportation or transhipment of blank checks in bearer form. 

Sec. 105. Bulk cash smuggling. 

Sec. 106. Violations involving commingled funds and structured transactions. 

Sec. 107. Charging money laundering as a course of conduct. 

Sec. 108. Illegal money transmitting businesses. 

Sec. 109. Knowledge that the property is the proceeds of a specific felony. 

Sec. 110. Extraterritorial jurisdiction. 

Sec. 111. Conduct in aid of counterfeiting. 

Sec. 112. Use of proceeds derived from criminal investigations. 

TITLE II—TECHNICAL AMENDMENTS 

Sec. 201. Technical amendments to sections 1956 and 1957 of title 18. 

1 TITLE I—MONEY LAUNDERING 

2 SEC. 101. SPECIFIED UNLAWFUL ACTIVITY. 

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

4 is amended to read as follows: 

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

6 means— 

7 ‘‘(A) any act or activity constituting an of8 fense in violation of the laws of the United 

9 States or any State punishable by imprisonment 

10 for a term exceeding 1 year; and 

11 ‘‘(B) any act or activity occurring outside 

12 of the United States that would constitute an 

13 offense covered under subparagraph (A) if the 

14 act or activity had occurred within the jurisdic15 tion of the United States or any State;’’. 


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1 SEC. 102. MAKING THE DOMESTIC MONEY LAUNDERING 

2 STATUTE APPLY TO ‘‘REVERSE MONEY LAUN3 DERING’’ AND INTERSTATE TRANSPOR4 TATION. 

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

6 States Code, is amended— 

7 (1) in the heading, by inserting ‘‘or in sup8 port of criminal activity’’ after ‘‘specified 

9 unlawful activity’’; 

10 (2) in subsection (a), by striking ‘‘Whoever’’ 

11 and inserting the following: 

12 ‘‘(1) Whoever’’; and 

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

14 ‘‘(2) Whoever— 

15 ‘‘(A) in any of the circumstances set forth in 

16 subsection (d)— 

17 ‘‘(i) conducts or attempts to conduct a 

18 monetary transaction involving property of a 

19 value that is greater than $10,000; or 

20 ‘‘(ii) transports, attempts to transport, or 

21 conspires to transport property of a value that 

22 is greater than $10,000; 

23 ‘‘(B) in or affecting interstate commerce; and 

24 ‘‘(C) either— 

25 ‘‘(i) knowing that the property was derived 

26 from some form of unlawful activity; or 


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1 ‘‘(ii) with the intent to promote the car2 rying on of specified unlawful activity; 

3 shall be fined under this title, imprisoned for a term of 

4 years not to exceed the statutory maximum for the unlaw5 ful activity from which the property was derived or the 

6 unlawful activity being promoted, or both.’’. 

7 (b) CHAPTER ANALYSIS.—The item relating to sec8 tion 1957 in the table of sections for chapter 95 of title 

9 18, United States Code, is amended to read as follows: 

‘‘1957. Engaging in monetary transactions in property derived from specified 

unlawful activity or in support of criminal activity.’’. 

10 SEC. 103. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY 

11 LAUNDERING CASES. 

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

13 States Code, is amended by adding at the end the fol14 lowing: 

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

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

17 Secretary of Homeland Security may issue a subpoena in 

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

19 1960, or sections 5316, 5324, 5331 or 5332 of title 31, 

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

21 3486.’’. 

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

23 5318(k)(3)(A)(i) of title 31, United States Code, is 

24 amended— 


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1 (1) by striking ‘‘related to such correspondent 

2 account’’; 

3 (2) by striking ‘‘or the Attorney General’’ and 

4 inserting ‘‘, the Attorney General, or the Secretary 

5 of Homeland Security’’; and 

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

7 ‘‘(iii) GRAND JURY OR TRIAL SUB8 POENA.—In addition to a subpoena issued 

9 by the Attorney General, Secretary of the 

10 Treasury, or the Secretary of Homeland 

11 Security under clause (i), a subpoena 

12 under clause (i) includes a grand jury or 

13 trial subpoena requested by the Govern14 ment.’’. 

15 (c) FAIR CREDIT REPORTING ACT AMENDMENT.— 

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

17 U.S.C. 1681b(a)(1)) is amended— 

18 (1) by striking ‘‘or’’; and 

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

20 ‘‘, or an investigative subpoena issued under section 

21 5318 of title 31, United States Code’’. 

22 (d) OBSTRUCTION OF JUSTICE.—Section 1510(b) of 

23 title 18, United States Code, is amended— 

24 (1) in paragraph (2)(A), by inserting ‘‘or an in25 vestigative subpoena issued under section 5318 of 


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1 title 31, United States Code’’ after ‘‘grand jury sub2 poena’’; and 

3 (2) in paragraph (3)(B), by inserting ‘‘, an in4 vestigative subpoena issued under section 5318 of 

5 title 31, United States Code,’’ after ‘‘grand jury sub6 poena’’. 

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

8 1120 of the Right to Financial Privacy Act of 1978 (12 

9 U.S.C. 3420) is amended— 

10 (1) in subsection (a)(1), by inserting ‘‘or to the 

11 Government’’ after ‘‘to the grand jury’’; and 

12 (2) in subsection (b)(1), by inserting ‘‘, or an 

13 investigative subpoena issued pursuant to section 

14 5318 of title 31, United States Code,’’ after ‘‘grand 

15 jury subpoena’’. 

16 SEC. 104. TRANSPORTATION OR TRANSHIPMENT OF BLANK 

17 CHECKS IN BEARER FORM. 

18 Section 5316 of title 31, United States Code, is 

19 amended by adding at the end the following: 

20 ‘‘(e) MONETARY INSTRUMENTS WITH AMOUNT LEFT

21 BLANK.—For purposes of this section, a monetary instru22 ment in bearer form that has the amount left blank, such 

23 that the amount could be filled in by the bearer, shall be 

24 considered to have a value equal to the highest value of 

25 the funds in the account on which the monetary instruVerDate Aug 31 2005 19:49 Feb 05, 2007 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S473.IS S473

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1 ment is drawn during the time period the monetary instru2 ment was being transported or the time period it was ne3 gotiated or was intended to be negotiated.’’. 

4 SEC. 105. BULK CASH SMUGGLING. 

5 Section 5332 of title 31, United States Code, is 

6 amended— 

7 (1) in subsection (b)(1), by striking ‘‘5 years’’ 

8 and inserting ‘‘10 years’’; and 

9 (2) by adding the end the following: 

10 ‘‘(d) INVESTIGATIVE AUTHORITY.—Violations of this 

11 section may be investigated by the Attorney General, the 

12 Secretary of the Treasury, the Secretary of Homeland Se13 curity, and the Postal Service.’’. 

14 SEC. 106. VIOLATIONS INVOLVING COMMINGLED FUNDS 

15 AND STRUCTURED TRANSACTIONS. 

16 Section 1957(f) of title 18, United States Code, is 

17 amended— 

18 (1) in paragraph (2) by striking ‘‘and’’ at the 

19 end; 

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

21 inserting a semicolon; and 

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

23 ‘‘(4) the term ‘monetary transaction in crimi24 nally derived property that is of a value greater than 

25 $10,000’ includes— 


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1 ‘‘(A) a monetary transaction involving the 

2 transfer, withdrawal, encumbrance or other dis3 position of more than $10,000 from a bank ac4 count in which more than $10,000 in proceeds 

5 of specified unlawful activity have been commin6 gled with other funds; 

7 ‘‘(B) a series of monetary transactions in 

8 amounts under $10,000 that exceed $10,000 in 

9 the aggregate and that are closely related to 

10 each other in terms of such factors as time, the 

11 identity of the parties involved, the nature and 

12 purpose of the transactions, and the manner in 

13 which they are conducted; and 

14 ‘‘(C) any financial transaction covered 

15 under section 1956(j) that involves more than 

16 $10,000 in proceeds of specified unlawful activ17 ity; and 

18 ‘‘(5) the term ‘monetary transaction involving 

19 property of a value that is greater than $10,000’ in20 cludes a series of monetary transactions in amounts 

21 under $10,000 that exceed $10,000 in the aggregate 

22 and that are closely related to each other in terms 

23 of such factors as time, the identity of the parties 

24 involved, the nature and purpose of the transactions, 

25 and the manner in which they are conducted.’’. 


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1 SEC. 107. CHARGING MONEY LAUNDERING AS A COURSE OF 

2 CONDUCT. 

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

4 States Code, is amended by adding at the end the fol5 lowing: 

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

7 this section that are part of the same scheme or con8 tinuing course of conduct may be charged, at the election 

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

10 information.’’. 

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

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

13 1957’’ and inserting ‘‘, section 1957, or section 1960’’. 

14 SEC. 108. ILLEGAL MONEY TRANSMITTING BUSINESSES. 

15 (a) TECHNICAL AMENDMENTS.— 

16 (1) IN GENERAL.—Section 1960 of title 18, 

17 United States Code, is amended— 

18 (A) in the heading by striking ‘‘unli19 censed’’ and inserting ‘‘illegal’’; 

20 (B) in subsection (a), by striking ‘‘unli21 censed’’ and inserting ‘‘illegal’’; and 

22 (C) in subsection (b)(1), by striking ‘‘unli23 censed’’ and inserting ‘‘illegal’’. 

24 (2) CHAPTER ANALYSIS.—The item relating to 

25 section 1960 in the table of sections for chapter 95 


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1 of title 18, United States Code, is amended to read 

2 as follows: 

‘‘1960. Prohibition of illegal money transmitting businesses.’’. 

3 (b) DEFINITION OF BUSINESS TO INCLUDE INFOR4 MAL VALUE TRANSFER SYSTEMS AND MONEY BROKERS

5 FOR DRUG CARTELS.—Section 1960(b) of title 18, United 

6 States Code, is amended— 

7 (1) in paragraph (2), by striking ‘‘and’’ at the 

8 end; 

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

10 inserting ‘‘; and’’; and 

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

12 ‘‘(4) the term ‘business’ includes any person or 

13 association of persons, formal or informal, licensed 

14 or unlicenced, that provides money transmitting 

15 services on behalf of any third party in return for 

16 remuneration or other consideration.’’. 

17 (c) PROHIBITION OF UNLICENSED MONEY TRANS18 MITTING BUSINESSES.—Section 1960(b)(1)(B) of title 18, 

19 United States Code, is amended by inserting the following 

20 before the semicolon: ‘‘, whether or not the defendant 

21 knew that the operation was required to comply with such 

22 registration requirements’’. 

23 (d) AUTHORITY TO INVESTIGATE.—Section 1960 of 

24 title 18, United States Code, is amended by adding at the 

25 end the following: 


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1 ‘‘(c) AUTHORITY TO INVESTIGATE.—Violations of 

2 this section may be investigated by the Attorney General, 

3 the Secretary of the Treasury, and the Secretary of Home4 land Security.’’. 

5 SEC. 109. KNOWLEDGE THAT THE PROPERTY IS THE PRO6 CEEDS OF A SPECIFIC FELONY. 

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

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

9 and regardless of whether or not the person knew that 

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

11 the end. 

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

13 1956(a) of title 18, United States Code, is amended— 

14 (1) in paragraph (1)(B)(i), by striking ‘‘speci15 fied unlawful activity’’ and inserting ‘‘some form of 

16 unlawful activity’’; and 

17 (2) in paragraph (2)(B)(i), by striking ‘‘speci18 fied unlawful activity’’ and inserting ‘‘some form of 

19 unlawful activity’’. 

20 SEC. 110. EXTRATERRITORIAL JURISDICTION. 

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

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

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

24 States’’. 


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1 SEC. 111. CONDUCT IN AID OF COUNTERFEITING. 

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

3 States Code, is amended by inserting after the paragraph 

4 beginning ‘‘Whoever has in his control, custody, or posses5 sion any plate’’ the following: 

6 ‘‘Whoever, with intent to defraud, has custody, con7 trol, or possession of any material that can be used to 

8 make, alter, forge, or counterfeit any obligation or other 

9 security of the United States or any part of such obliga10 tion or security, except under the authority of the Sec11 retary of the Treasury; or’’. 

12 (b) FOREIGN OBLIGATIONS AND SECURITIES.—Sec13 tion 481 of title 18, United States Code, is amended by 

14 inserting after the paragraph beginning ‘‘Whoever, with 

15 intent to defraud’’ the following: 

16 ‘‘Whoever, with intent to defraud, has custody, con17 trol, or possession of any material that can be used to 

18 make, alter, forge, or counterfeit any obligation or other 

19 security of any foreign government, bank, or corporation; 

20 or’’. 

21 (c) COUNTERFEIT ACTS.—Section 470 of title 18, 

22 United States Code, is amended by striking ‘‘or 474’’ and 

23 inserting ‘‘474, or 474A’’. 

24 (d) STRENGTHENING DETERRENTS TO COUNTER25 FEITING.—Section 474A of title 18, United States Code 

26 is amended— 


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1 (1) in subsection (a)— 

2 (A) by inserting ‘‘, custody,’’ after ‘‘con3 trol’’; 

4 (B) by inserting ‘‘, forging, or counter5 feiting’’ after ‘‘to the making’’; 

6 (C) by striking ‘‘such obligation’’ and in7 serting ‘‘obligation’’; and 

8 (D) by inserting ‘‘of the United States’’ 

9 after ‘‘or other security’’; 

10 (2) in subsection (b)— 

11 (A) by inserting ‘‘, custody,’’ after ‘‘con12 trol’’; 

13 (B) striking ‘‘any essentially identical fea14 ture or device’’ and inserting ‘‘any material or 

15 other thing made after or in the similitude of 

16 any such deterrent’’; and 

17 (C) by inserting ‘‘, forging, or counter18 feiting’’ after ‘‘to the making’’; 

19 (3) by redesignating subsection (c) as sub20 section (d); and 

21 (4) by inserting after subsection (b) the fol22 lowing: 

23 ‘‘(c) Whoever has in his control, custody, or posses24 sion any altered obligation or security of the United States 

25 or any foreign government adapted to the making, forging, 


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1 or counterfeiting of any obligation or security of the 

2 United States or any foreign government, except under the 

3 authority of the Secretary of the Treasury, is guilty of a 

4 class B felony.’’. 

5 SEC. 112. USE OF PROCEEDS DERIVED FROM CRIMINAL IN6 VESTIGATIONS. 

7 (a) AUTHORITY OF SECRET SERVICE.—During fiscal 

8 years 2008 through 2010, with respect to any undercover 

9 investigative operation of the United States Secret Service 

10 (in this section referred to as the ‘‘Secret Service’’) which 

11 is necessary for the detection and prosecution of crimes 

12 against the United States— 

13 (1) sums authorized in any such fiscal year to 

14 be appropriated for the Secret Service, including any 

15 unobligated balances available from prior fiscal 

16 years, may be used to purchase property, buildings, 

17 and other facilities, and to lease space, within the 

18 United States, the District of Columbia, and the ter19 ritories and possessions of the United States, with20 out regard to— 

21 (A) sections 1341 and 3324 of title 31 of 

22 the United States Code; 

23 (B) section 8141 of title 40 of the United 

24 States Code; 


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1 (C) sections 3732(a) and 3741 of the Re2 vised Statutes of the United States (41 U.S.C. 

3 11(a) and 22); and 

4 (D) sections 304(a) and 305 of the Fed5 eral Property and Administrative Services Act 

6 of 1949 (41 U.S.C. 254(a) and 255); 

7 (2) sums authorized in any such fiscal year to 

8 be appropriated for the Secret Service, including any 

9 unobligated balances available from prior fiscal 

10 years, may be used— 

11 (A) to establish or to acquire proprietary 

12 corporations or business entities as part of an 

13 undercover investigative operation; and 

14 (B) to operate such corporations or busi15 ness entities on a commercial basis, without re16 gard to sections 9102 and 9103 of title 31 of 

17 the United States Code; 

18 (3) sums authorized in any such fiscal year to 

19 be appropriated for the Secret Service, including any 

20 unobligated balances available from prior fiscal 

21 years, and the proceeds seized, earned, or otherwise 

22 accrued from any such undercover investigative op23 eration, may be deposited in banks or other financial 

24 institutions, without regard to— 


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1 (A) section 648 of title 18 of the United 

2 States Code; and 

3 (B) section 3302 of title 31 of the United 

4 States Code; and 

5 (4) proceeds seized, earned, or otherwise ac6 crued from any such undercover investigative oper7 ation may be used to offset the necessary and rea8 sonable expenses incurred in such operation, without 

9 regard to section 3302 of title 31 of the United 

10 States Code. 

11 (b) WRITTEN CERTIFICATION OF DIRECTOR RE12 QUIRED.— 

13 (1) IN GENERAL.—The authority granted under 

14 subsection (a) may be exercised only upon the writ15 ten certification of the Director of the Secret Service 

16 or the Director’s designee. 

17 (2) CONTENT OF CERTIFICATION.—Each cer18 tification issued under paragraph (1) shall state that 

19 any action authorized under paragraph (1), (2), (3), 

20 or (4) of subsection (a) is necessary to conduct the 

21 undercover investigative operation. 

22 (3) DURATION OF CERTIFICATION.—Each cer23 tification issued under paragraph (1) shall continue 

24 in effect for the duration of the undercover inves25 tigative operation, without regard to fiscal years. 


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1 (c) TRANSFER OF PROCEEDS TO TREASURY.—As 

2 soon as practicable after the proceeds from an undercover 

3 investigative operation with respect to which an action is 

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

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

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

7 proceeds, remaining at the time shall be deposited in the 

8 Treasury of the United States as miscellaneous receipts. 

9 (d) CORPORATIONS WITH A HIGH NET VALUE.— 

10 (1) IN GENERAL.—If a corporation or business 

11 entity established or acquired as part of an under12 cover investigative operation under subsection (a)(2) 

13 having a net value of over $50,000 is to be liq14 uidated, sold, or otherwise disposed of, the Secret 

15 Service, as much in advance as the Director of the 

16 Secret Service or the Director’s designee determines 

17 is practicable, shall report the circumstances of such 

18 liquidation, sale, or other disposition to the Sec19 retary of Homeland Security. 

20 (2) TRANSFER OF PROCEEDS TO TREASURY.— 

21 The proceeds of any liquidation, sale, or other dis22 position of any corporation or business entity under 

23 paragraph (1) shall, after all other obligations are 

24 met, be deposited in the Treasury of the United 

25 States as miscellaneous receipts. 


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1 (e) AUDITS.—The Secret Service shall— 

2 (1) conduct, on a quarterly basis, a detailed fi3 nancial audit of each completed undercover inves4 tigative operation where a written certification was 

5 issued pursuant to this section; and 

6 (2) report the results of each such audit in 

7 writing to the Secretary of Homeland Security. 

8 TITLE II—TECHNICAL 

9 AMENDMENTS 

10 SEC. 201. TECHNICAL AMENDMENTS TO SECTIONS 1956 AND 

11 1957 OF TITLE 18. 

12 (a) UNLAWFUL ACTIVITY.—Section 1956(c) of title 

13 18, United States Code, is amended— 

14 (1) in paragraph (2), by striking ‘‘ ‘conducts’ ’’ 

15 and inserting ‘‘ ‘conduct’ ’’; and 

16 (2) in paragraph (7)(F), by inserting ‘‘, as de17 fined in section 24(a)’’ before the semicolon. 

18 (b) PROPERTY FROM UNLAWFUL ACTIVITY.—Sec19 tion 1957 of title 18, United States Code, is amended— 

20 (1) in subsection (a), by striking ‘‘engages or 

21 attempts to engage in’’ and inserting ‘‘conducts or 

22 attempts to conduct’’; and 

23 (2) in subsection (f)— 

24 (A) in paragraph (2), by striking ‘‘and’’ at 

25 the end; 


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1 (B) in paragraph (3), by striking the pe2 riod and inserting ‘‘; and’’; and 

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

4 ‘‘(4) the term ‘conduct’ has the meaning given 

5 such term under section 1956(c)(2).’’. 

Æ 


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