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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 473 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Combating Money 
Laundering and Terrorist Financing Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                       TITLE I--MONEY LAUNDERING

Sec. 101. Specified unlawful activity.
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.

                       TITLE I--MONEY LAUNDERING

SEC. 101. SPECIFIED UNLAWFUL ACTIVITY.

    Section 1956(c)(7) of title 18, United States Code, is amended to 
read as follows:
            ``(7) the term `specified unlawful activity' means--
                    ``(A) any act or activity constituting an offense 
                in violation of the laws of the United States or any 
                State punishable by imprisonment for a term exceeding 1 
                year; and
                    ``(B) any act or activity occurring outside of the 
                United States that would constitute an offense covered 
                under subparagraph (A) if the act or activity had 
                occurred within the jurisdiction of the United States 
                or any State;''.

SEC. 102. MAKING THE DOMESTIC MONEY LAUNDERING STATUTE APPLY TO 
              ``REVERSE MONEY LAUNDERING'' AND INTERSTATE 
              TRANSPORTATION.

    (a) In General.--Section 1957 of title 18, United States Code, is 
amended--
            (1) in the heading, by inserting ``or in support of 
        criminal activity'' after ``specified unlawful activity'';
            (2) in subsection (a), by striking ``Whoever'' and 
        inserting the following:
            ``(1) Whoever''; and
            (3) by adding at the end the following:
    ``(2) Whoever--
            ``(A) in any of the circumstances set forth in subsection 
        (d)--
                    ``(i) conducts or attempts to conduct a monetary 
                transaction involving property of a value that is 
                greater than $10,000; or
                    ``(ii) transports, attempts to transport, or 
                conspires to transport property of a value that is 
                greater than $10,000;
            ``(B) in or affecting interstate commerce; and
            ``(C) either--
                    ``(i) knowing that the property was derived from 
                some form of unlawful activity; or
                    ``(ii) with the intent to promote the carrying on 
                of specified unlawful activity;
shall be fined under this title, imprisoned for a term of years not to 
exceed the statutory maximum for the unlawful activity from which the 
property was derived or the unlawful activity being promoted, or 
both.''.
    (b) Chapter Analysis.--The item relating to section 1957 in the 
table of sections for chapter 95 of title 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.''.

SEC. 103. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY LAUNDERING CASES.

    (a) In General.--Section 986 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(e) Procedure for Issuing Subpoenas.--The Attorney General, the 
Secretary of the Treasury, or the Secretary of Homeland Security may 
issue a subpoena in any investigation of a violation of sections 1956, 
1957 or 1960, or sections 5316, 5324, 5331 or 5332 of title 31, United 
States Code, in the manner set forth under section 3486.''.
    (b) Grand Jury and Trial Subpoenas.--Section 5318(k)(3)(A)(i) of 
title 31, United States Code, is amended--
            (1) by striking ``related to such correspondent account'';
            (2) by striking ``or the Attorney General'' and inserting 
        ``, the Attorney General, or the Secretary of Homeland 
        Security''; and
            (3) by adding at the end the following:
                            ``(iii) Grand jury or trial subpoena.--In 
                        addition to a subpoena issued by the Attorney 
                        General, Secretary of the Treasury, or the 
                        Secretary of Homeland Security under clause 
                        (i), a subpoena under clause (i) includes a 
                        grand jury or trial subpoena requested by the 
                        Government.''.
    (c) Fair Credit Reporting Act Amendment.--Section 604(a)(1) of the 
Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is amended--
            (1) by striking ``or''; and
            (2) by inserting before the period the following: ``, or an 
        investigative subpoena issued under section 5318 of title 31, 
        United States Code''.
    (d) Obstruction of Justice.--Section 1510(b) of title 18, United 
States Code, is amended--
            (1) in paragraph (2)(A), by inserting ``or an investigative 
        subpoena issued under section 5318 of title 31, United States 
        Code'' after ``grand jury subpoena''; and
            (2) in paragraph (3)(B), by inserting ``, an investigative 
        subpoena issued under section 5318 of title 31, United States 
        Code,'' after ``grand jury subpoena''.
    (e) Right to Financial Privacy Act.--Section 1120 of the Right to 
Financial Privacy Act of 1978 (12 U.S.C. 3420) is amended--
            (1) in subsection (a)(1), by inserting ``or to the 
        Government'' after ``to the grand jury''; and
            (2) in subsection (b)(1), by inserting ``, or an 
        investigative subpoena issued pursuant to section 5318 of title 
        31, United States Code,'' after ``grand jury subpoena''.

SEC. 104. TRANSPORTATION OR TRANSHIPMENT OF BLANK CHECKS IN BEARER 
              FORM.

    Section 5316 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(e) Monetary Instruments With Amount Left Blank.--For purposes of 
this section, a monetary instrument in bearer form that has the amount 
left blank, such that the amount could be filled in by the bearer, 
shall be considered to have a value equal to the highest value of the 
funds in the account on which the monetary instrument is drawn during 
the time period the monetary instrument was being transported or the 
time period it was negotiated or was intended to be negotiated.''.

SEC. 105. BULK CASH SMUGGLING.

    Section 5332 of title 31, United States Code, is amended--
            (1) in subsection (b)(1), by striking ``5 years'' and 
        inserting ``10 years''; and
            (2) by adding the end the following:
    ``(d) Investigative Authority.--Violations of this section may be 
investigated by the Attorney General, the Secretary of the Treasury, 
the Secretary of Homeland Security, and the Postal Service.''.

SEC. 106. VIOLATIONS INVOLVING COMMINGLED FUNDS AND STRUCTURED 
              TRANSACTIONS.

    Section 1957(f) of title 18, United States Code, is amended--
            (1) in paragraph (2) by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(4) the term `monetary transaction in criminally derived 
        property that is of a value greater than $10,000' includes--
                    ``(A) a monetary transaction involving the 
                transfer, withdrawal, encumbrance or other disposition 
                of more than $10,000 from a bank account in which more 
                than $10,000 in proceeds of specified unlawful activity 
                have been commingled with other funds;
                    ``(B) a series of monetary transactions in amounts 
                under $10,000 that exceed $10,000 in the aggregate and 
                that are closely related to each other in terms of such 
                factors as time, the identity of the parties involved, 
                the nature and purpose of the transactions, and the 
                manner in which they are conducted; and
                    ``(C) any financial transaction covered under 
                section 1956(j) that involves more than $10,000 in 
                proceeds of specified unlawful activity; and
            ``(5) the term `monetary transaction involving property of 
        a value that is greater than $10,000' includes a series of 
        monetary transactions in amounts under $10,000 that exceed 
        $10,000 in the aggregate and that are closely related to each 
        other in terms of such factors as time, the identity of the 
        parties involved, the nature and purpose of the transactions, 
        and the manner in which they are conducted.''.

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

    (a) In General.--Section 1956 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(j) Multiple Violations.--Multiple violations of this section 
that are part of the same scheme or continuing course of conduct may be 
charged, at the election of the Government, in a single count in an 
indictment or information.''.
    (b) Conspiracies.--Section 1956(h) of title 18, United States Code, 
is amended by striking ``or section 1957'' and inserting ``, section 
1957, or section 1960''.

SEC. 108. ILLEGAL MONEY TRANSMITTING BUSINESSES.

    (a) Technical Amendments.--
            (1) In general.--Section 1960 of title 18, United States 
        Code, is amended--
                    (A) in the heading by striking ``unlicensed'' and 
                inserting ``illegal'';
                    (B) in subsection (a), by striking ``unlicensed'' 
                and inserting ``illegal''; and
                    (C) in subsection (b)(1), by striking 
                ``unlicensed'' and inserting ``illegal''.
            (2) Chapter analysis.--The item relating to section 1960 in 
        the table of sections for chapter 95 of title 18, United States 
        Code, is amended to read as follows:

``1960. Prohibition of illegal money transmitting businesses.''.
    (b) Definition of Business To Include Informal Value Transfer 
Systems and Money Brokers for Drug Cartels.--Section 1960(b) of title 
18, United States Code, is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(4) the term `business' includes any person or 
        association of persons, formal or informal, licensed or 
        unlicenced, that provides money transmitting services on behalf 
        of any third party in return for remuneration or other 
        consideration.''.
    (c) Prohibition of Unlicensed Money Transmitting Businesses.--
Section 1960(b)(1)(B) of title 18, United States Code, is amended by 
inserting the following before the semicolon: ``, whether or not the 
defendant knew that the operation was required to comply with such 
registration requirements''.
    (d) Authority To Investigate.--Section 1960 of title 18, United 
States Code, is amended by adding at the end the following:
    ``(c) Authority To Investigate.--Violations of this section may be 
investigated by the Attorney General, the Secretary of the Treasury, 
and the Secretary of Homeland Security.''.

SEC. 109. KNOWLEDGE THAT THE PROPERTY IS THE PROCEEDS OF A SPECIFIC 
              FELONY.

    (a) Proceeds of a Felony.--Section 1956(c)(1) of title 18, United 
States Code, is amended by inserting ``, and regardless of whether or 
not the person knew that the activity constituted a felony'' before the 
semicolon at the end.
    (b) Intent To Conceal or Disguise.--Section 1956(a) of title 18, 
United States Code, is amended--
            (1) in paragraph (1)(B)(i), by striking ``specified 
        unlawful activity'' and inserting ``some form of unlawful 
        activity''; and
            (2) in paragraph (2)(B)(i), by striking ``specified 
        unlawful activity'' and inserting ``some form of unlawful 
        activity''.

SEC. 110. EXTRATERRITORIAL JURISDICTION.

    Section 1956(f)(1) of title 18, United States Code, is amended by 
inserting ``or has an effect in the United States'' after ``conduct 
occurs in part in the United States''.

SEC. 111. CONDUCT IN AID OF COUNTERFEITING.

    (a) In General.--Section 474(a) of title 18, United States Code, is 
amended by inserting after the paragraph beginning ``Whoever has in his 
control, custody, or possession any plate'' the following:
    ``Whoever, with intent to defraud, has custody, control, or 
possession of any material that can be used to make, alter, forge, or 
counterfeit any obligation or other security of the United States or 
any part of such obligation or security, except under the authority of 
the Secretary of the Treasury; or''.
    (b) Foreign Obligations and Securities.--Section 481 of title 18, 
United States Code, is amended by inserting after the paragraph 
beginning ``Whoever, with intent to defraud'' the following:
    ``Whoever, with intent to defraud, has custody, control, or 
possession of any material that can be used to make, alter, forge, or 
counterfeit any obligation or other security of any foreign government, 
bank, or corporation; or''.
    (c) Counterfeit Acts.--Section 470 of title 18, United States Code, 
is amended by striking ``or 474'' and inserting ``474, or 474A''.
    (d) Strengthening Deterrents to Counterfeiting.--Section 474A of 
title 18, United States Code is amended--
            (1) in subsection (a)--
                    (A) by inserting ``, custody,'' after ``control'';
                    (B) by inserting ``, forging, or counterfeiting'' 
                after ``to the making'';
                    (C) by striking ``such obligation'' and inserting 
                ``obligation''; and
                    (D) by inserting ``of the United States'' after 
                ``or other security'';
            (2) in subsection (b)--
                    (A) by inserting ``, custody,'' after ``control'';
                    (B) striking ``any essentially identical feature or 
                device'' and inserting ``any material or other thing 
                made after or in the similitude of any such 
                deterrent''; and
                    (C) by inserting ``, forging, or counterfeiting'' 
                after ``to the making'';
            (3) by redesignating subsection (c) as subsection (d); and
            (4) by inserting after subsection (b) the following:
    ``(c) Whoever has in his control, custody, or possession any 
altered obligation or security of the United States or any foreign 
government adapted to the making, forging, or counterfeiting of any 
obligation or security of the United States or any foreign government, 
except under the authority of the Secretary of the Treasury, is guilty 
of a class B felony.''.

SEC. 112. USE OF PROCEEDS DERIVED FROM CRIMINAL INVESTIGATIONS.

    (a) Authority of Secret Service.--During fiscal years 2008 through 
2010, with respect to any undercover investigative operation of the 
United States Secret Service (in this section referred to as the 
``Secret Service'') which is necessary for the detection and 
prosecution of crimes against the United States--
            (1) sums authorized in any such fiscal year to be 
        appropriated for the Secret Service, including any unobligated 
        balances available from prior fiscal years, may be used to 
        purchase property, buildings, and other facilities, and to 
        lease space, within the United States, the District of 
        Columbia, and the territories and possessions of the United 
        States, without regard to--
                    (A) sections 1341 and 3324 of title 31 of the 
                United States Code;
                    (B) section 8141 of title 40 of the United States 
                Code;
                    (C) sections 3732(a) and 3741 of the Revised 
                Statutes of the United States (41 U.S.C. 11(a) and 22); 
                and
                    (D) sections 304(a) and 305 of the Federal Property 
                and Administrative Services Act of 1949 (41 U.S.C. 
                254(a) and 255);
            (2) sums authorized in any such fiscal year to be 
        appropriated for the Secret Service, including any unobligated 
        balances available from prior fiscal years, may be used--
                    (A) to establish or to acquire proprietary 
                corporations or business entities as part of an 
                undercover investigative operation; and
                    (B) to operate such corporations or business 
                entities on a commercial basis, without regard to 
                sections 9102 and 9103 of title 31 of the United States 
                Code;
            (3) sums authorized in any such fiscal year to be 
        appropriated for the Secret Service, including any unobligated 
        balances available from prior fiscal years, and the proceeds 
        seized, earned, or otherwise accrued from any such undercover 
        investigative operation, may be deposited in banks or other 
        financial institutions, without regard to--
                    (A) section 648 of title 18 of the United States 
                Code; and
                    (B) section 3302 of title 31 of the United States 
                Code; and
            (4) proceeds seized, earned, or otherwise accrued from any 
        such undercover investigative operation may be used to offset 
        the necessary and reasonable expenses incurred in such 
        operation, without regard to section 3302 of title 31 of the 
        United States Code.
    (b) Written Certification of Director Required.--
            (1) In general.--The authority granted under subsection (a) 
        may be exercised only upon the written certification of the 
        Director of the Secret Service or the Director's designee.
            (2) Content of certification.--Each certification issued 
        under paragraph (1) shall state that any action authorized 
        under paragraph (1), (2), (3), or (4) of subsection (a) is 
        necessary to conduct the undercover investigative operation.
            (3) Duration of certification.--Each certification issued 
        under paragraph (1) shall continue in effect for the duration 
        of the undercover investigative operation, without regard to 
        fiscal years.
    (c) Transfer of Proceeds to Treasury.--As soon as practicable after 
the proceeds from an undercover investigative operation with respect to 
which an action is authorized and carried out under paragraphs (3) and 
(4) of subsection (a) are no longer necessary for the conduct of such 
operation, such proceeds, or the balance of such proceeds, remaining at 
the time shall be deposited in the Treasury of the United States as 
miscellaneous receipts.
    (d) Corporations With a High Net Value.--
            (1) In general.--If a corporation or business entity 
        established or acquired as part of an undercover investigative 
        operation under subsection (a)(2) having a net value of over 
        $50,000 is to be liquidated, sold, or otherwise disposed of, 
        the Secret Service, as much in advance as the Director of the 
        Secret Service or the Director's designee determines is 
        practicable, shall report the circumstances of such 
        liquidation, sale, or other disposition to the Secretary of 
        Homeland Security.
            (2) Transfer of proceeds to treasury.--The proceeds of any 
        liquidation, sale, or other disposition of any corporation or 
        business entity under paragraph (1) shall, after all other 
        obligations are met, be deposited in the Treasury of the United 
        States as miscellaneous receipts.
    (e) Audits.--The Secret Service shall--
            (1) conduct, on a quarterly basis, a detailed financial 
        audit of each completed undercover investigative operation 
        where a written certification was issued pursuant to this 
        section; and
            (2) report the results of each such audit in writing to the 
        Secretary of Homeland Security.

                     TITLE II--TECHNICAL AMENDMENTS

SEC. 201. TECHNICAL AMENDMENTS TO SECTIONS 1956 AND 1957 OF TITLE 18.

    (a) Unlawful Activity.--Section 1956(c) of title 18, United States 
Code, is amended--
            (1) in paragraph (2), by striking ```conducts''' and 
        inserting ```conduct'''; and
            (2) in paragraph (7)(F), by inserting ``, as defined in 
        section 24(a)'' before the semicolon.
    (b) Property From Unlawful Activity.--Section 1957 of title 18, 
United States Code, is amended--
            (1) in subsection (a), by striking ``engages or attempts to 
        engage in'' and inserting ``conducts or attempts to conduct''; 
        and
            (2) in subsection (f)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) the term `conduct' has the meaning given such term 
        under section 1956(c)(2).''.
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