II 

Calendar No. 160 

116TH CONGRESS 

1ST SESSION S. 1883 

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

IN THE SENATE OF THE UNITED STATES 

JUNE 18, 2019 

Mr. GRASSLEY (for himself, Mrs. FEINSTEIN, Mr. CORNYN, Mr. WHITEHOUSE, and Ms. KLOBUCHAR) introduced the following bill; which was 

read twice and referred to the Committee on the Judiciary 

JULY 23, 2019 

Reported by Mr. GRAHAM, with an amendment 

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

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, Terrorist Financing, and 

6 Counterfeiting Act of 2019’’. 


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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Transportation or transhipment of blank checks in bearer form. 

Sec. 3. Bulk cash smuggling. 

Sec. 4. Section 1957 violations involving commingled funds and aggregated 

transactions. 

Sec. 5. Charging money laundering as a course of conduct. 

Sec. 6. Illegal money services businesses. 

Sec. 7. Concealment money laundering. 

Sec. 8. Freezing bank accounts of persons arrested for offenses involving the 

movement of money across international borders. 

Sec. 9. Prohibiting money laundering through hawalas, other informal value 

transfer systems, and closely related transactions. 

Sec. 10. Technical amendment to restore wiretap authority for certain money 

laundering and counterfeiting offenses. 

Sec. 11. Making the international money laundering statute apply to tax evasion. 

Sec. 12. Conduct in aid of counterfeiting. 

Sec. 13. Administrative subpoenas for money laundering cases. 

Sec. 14. Obtaining foreign bank records from banks with United States correspondent accounts. 

Sec. 15. Danger pay allowance. 

Sec. 16. Clarification of Secret Service authority to investigate money laundering. 

Sec. 17. Prohibition on concealment of ownership of account. 

Sec. 18. Prohibition on concealment of the source of assets in monetary transactions. 

Sec. 19. Rule of construction. 

3 SEC. 2. TRANSPORTATION OR TRANSHIPMENT OF BLANK 

4 CHECKS IN BEARER FORM. 

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

6 amended by adding at the end the following: 

7 ‘‘(e) MONETARY INSTRUMENTS WITH AMOUNT LEFT

8 BLANK.—For purposes of this section, a monetary instru9 ment in bearer form that has the amount left blank, such 

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

11 considered to have a value of more than $10,000 if the 

12 instrument was drawn on an account that contained, or 

13 was intended to contain more than $10,000 at the time— 


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1 ‘‘(1) the instrument was transported; or 

2 ‘‘(2) the instrument was negotiated or was in3 tended to be negotiated.’’. 

4 SEC. 3. BULK CASH SMUGGLING. 

5 Section 5332(b) of title 31, United States Code, is 

6 amended— 

7 (1) in paragraph (1), by striking ‘‘5 years’’ and 

8 inserting ‘‘10 years’’; 

9 (2) by redesignating paragraphs (2), (3), and 

10 (4), as paragraphs (3), (4), and (5), respectively; 

11 (3) by inserting after paragraph (1) the fol12 lowing: 

13 ‘‘(2) FINE.— 

14 ‘‘(A) IN GENERAL.—Whoever violates this 

15 section shall be fined under title 18. 

16 ‘‘(B) ENHANCED FINE FOR AGGRAVATED

17 CASES.—Whoever violates this section while vio18 lating another law of the United States, other 

19 than section 5316 or 5324(c) of this title, or as 

20 a part of a pattern of any unlawful activity, in21 cluding a violation of section 5316 or 5324(c) 

22 of this title, shall be fined double the amount 

23 provided in subsection (b)(3) or (c)(3) of sec24 tion 3571 of title 18.’’; and 


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1 (4) in paragraph (5), as redesignated, by strik2 ing ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. 

3 SEC. 4. SECTION 1957 VIOLATIONS INVOLVING COMMIN4 GLED FUNDS AND AGGREGATED TRANS5 ACTIONS. 

6 Section 1957 of title 18, United States Code, is 

7 amended by adding at the end the following: 

8 ‘‘(g) In a prosecution for an offense under this sec9 tion, the Government may satisfy the $10,000 monetary 

10 transaction value requirement under subsection (a) by 

11 showing that— 

12 ‘‘(1) the monetary transaction involved the 

13 transfer, withdrawal, encumbrance, or other disposi14 tion of more than $10,000 from an account in which 

15 more than $10,000 in proceeds of specified unlawful 

16 activity was commingled with other funds; or 

17 ‘‘(2) the defendant conducted a series of mone18 tary transactions in amounts of not more than 

19 $10,000 that— 

20 ‘‘(A) exceeded $10,000 in the aggregate; 

21 and 

22 ‘‘(B) were closely related to each other as 

23 demonstrated by factors such as— 

24 ‘‘(i) the time period between the 

25 transactions; 


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1 ‘‘(ii) the identity of the parties in2 volved; 

3 ‘‘(iii) the nature or purpose of the 

4 transactions; and 

5 ‘‘(iv) the manner in which the trans6 actions were conducted.’’. 

7 SEC. 5. CHARGING MONEY LAUNDERING AS A COURSE OF 

8 CONDUCT. 

9 Section 1956 of title 18, United States Code, is 

10 amended— 

11 (1) in subsection (h), by striking ‘‘or section 

12 1957’’ and inserting ‘‘, section 1957, or section 

13 1960’’; and 

14 (2) by adding at the end the following: 

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

16 this section that are part of the same scheme or con17 tinuing course of conduct may be charged, at the election 

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

19 information.’’. 

20 SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES. 

21 (a) IN GENERAL.—Section 1960 of title 18, United 

22 States Code, is amended by striking subsections (a) and 

23 (b) and inserting the following: 


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1 ‘‘(a) OFFENSE.—Whoever knowingly conducts, con2 trols, manages, supervises, directs, or owns all or part of 

3 a covered money services business that— 

4 ‘‘(1) is operated without an appropriate license 

5 in a State where such operation is punishable as a 

6 misdemeanor or a felony under State law, whether 

7 or not the person knows that the operation is re8 quired to be licensed or that the operation is so pun9 ishable; 

10 ‘‘(2) fails to comply with the money services 

11 business registration requirements under section 

12 5330 of title 31, or regulations prescribed under 

13 that section, whether or not the person knows that 

14 the operation is required to comply with those reg15 istration requirements; or 

16 ‘‘(3) otherwise engages in a transaction involv17 ing funds that the person knows have been derived 

18 from a criminal offense or are intended to be used 

19 to promote or support unlawful activity, 

20 shall be punished as provided in subsection (b). 

21 ‘‘(b) CRIMINAL PENALTY.—Any person who vio22 lates— 

23 ‘‘(1) subsection (a) shall be fined in accordance 

24 with this title, imprisoned for not more than 5 years, 

25 or both; and 


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1 ‘‘(2) subsection (a) by conducting, controlling, 

2 managing, supervising, directing, or owning all or 

3 part of a covered money services business that en4 gaged in activity as a covered money services busi5 ness involving more than $1,000,000 during a 12- 

6 month period, or by engaging in a transaction or 

7 transactions involving more than $1,000,000 during 

8 a 12-month period, shall be fined double the amount 

9 provided in subsection (b)(3) or (c)(3) (as applica10 ble) of section 3571, imprisoned for not more than 

11 10 years, or both. 

12 ‘‘(c) DEFINITIONS.—In this section— 

13 ‘‘(1) the term ‘covered money services business’ 

14 means a money services business that— 

15 ‘‘(A) operates on behalf of the public; and 

16 ‘‘(B) affects interstate or foreign commerce 

17 in any manner or degree; 

18 ‘‘(2) the term ‘money services business’— 

19 ‘‘(A) has the meaning given the term in 

20 section 5330 of title 31 and any regulations 

21 prescribed under that section; and 

22 ‘‘(B) includes a person that engages in the 

23 transfer, transportation, or exchange of cur24 rency, funds, or value that substitutes for curVerDate Sep 11 2014 23:52 Jul 23, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6401 E:\BILLS\S1883.RS S1883

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1 rency by any and all means, even when not per2 formed for profit; and 

3 ‘‘(3) the term ‘State’ means any State of the 

4 United States, the District of Columbia, the North5 ern Mariana Islands, and any commonwealth, terri6 tory, or possession of the United States.’’. 

7 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

8 (1) SECTION 1960 OF TITLE 18, UNITED STATES

9 CODE.— 

10 (A) SECTION HEADING.—Section 1960 of 

11 title 18, United States Code, is amended in the 

12 section heading— 

13 (i) by striking ‘‘unlicensed’’ and 

14 inserting ‘‘illegal’’; and 

15 (ii) by striking ‘‘transmitting’’ and 

16 inserting ‘‘services’’. 

17 (B) TABLE OF SECTIONS.—The table of 

18 sections for chapter 95 of title 18, United 

19 States Code, is amended by striking the item 

20 relating to section 1960 and inserting the fol21 lowing: 

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

22 (2) SECTION 5330 OF TITLE 31, UNITED STATES

23 CODE.— 

24 (A) HEADINGS.—Section 5330 of title 31, 

25 United States Code, is amended— 


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1 (i) in the section heading, by striking 

2 ‘‘transmitting’’ and inserting ‘‘serv3 ices’’; 

4 (ii) in subsection (c)— 

5 (I) in the subsection heading, by 

6 striking ‘‘TRANSMITTING’’ and insert7 ing ‘‘SERVICES’’; 

8 (II) in paragraph (1), in the 

9 paragraph heading, by striking 

10 ‘‘TRANSMITTING’’ and inserting 

11 ‘‘SERVICES’’; and 

12 (III) in paragraph (2), in the 

13 paragraph heading, by striking 

14 ‘‘TRANSMITTING’’ and inserting 

15 ‘‘SERVICES’’; and 

16 (iii) in subsection (d)(1), in the para17 graph heading, by striking ‘‘TRANSMIT18 TING’’ and inserting ‘‘SERVICES’’. 

19 (B) TEXT.—Section 5330 of title 31, 

20 United States Code, is amended— 

21 (i) by striking ‘‘money transmitting 

22 business’’ each place that term appears 

23 and inserting ‘‘money services business’’; 

24 and 


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1 (ii) in subsection (a)(3), by striking 

2 ‘‘money transmitting businesses’’ and in3 serting ‘‘a money services business’’. 

4 (C) TABLE OF SECTIONS.—The table of 

5 sections for subchapter II of chapter 53 of title 

6 31, United States Code, is amended by striking 

7 the item relating to section 5330 and inserting 

8 the following: 

‘‘5330. Registration of money services businesses.’’. 

9 SEC. 7. CONCEALMENT MONEY LAUNDERING. 

10 Section 1956(a) of title 18, United States Code, is 

11 amended— 

12 (1) in paragraph (1)(B), by striking ‘‘knowing 

13 that’’ and all that follows through ‘‘Federal law,’’ 

14 and inserting the following: 

15 ‘‘(B) knowing that the transaction— 

16 ‘‘(i) conceals or disguises, or is intended to 

17 conceal or disguise, the nature, source, location, 

18 ownership, or control of the proceeds of some 

19 form of unlawful activity; or 

20 ‘‘(ii) avoids, or is intended to avoid, a 

21 transaction reporting requirement under State 

22 or Federal law,’’; and 

23 (2) in paragraph (2)(B), by striking ‘‘knowing 

24 that’’ and all that follows through ‘‘Federal law,’’ 

25 and inserting the following: 


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1 ‘‘(B) knowing that— 

2 ‘‘(i) the monetary instrument or funds in3 volved in the transportation, transmission, or 

4 transfer represent the proceeds of some form of 

5 unlawful activity; and 

6 ‘‘(ii) the transportation, transmission, or 

7 transfer— 

8 ‘‘(I) conceals or disguises, or is in9 tended to conceal or disguise, the nature, 

10 source, location, ownership, or control of 

11 the proceeds of some form of unlawful ac12 tivity; or 

13 ‘‘(II) avoids, or is intended to avoid, a 

14 transaction reporting requirement under 

15 State or Federal law,’’. 

16 SEC. 8. FREEZING BANK ACCOUNTS OF PERSONS AR17 RESTED FOR OFFENSES INVOLVING THE 

18 MOVEMENT OF MONEY ACROSS INTER19 NATIONAL BORDERS. 

20 Section 981(b) of title 18, United States Code, is 

21 amended by adding at the end the following: 

22 ‘‘(5)(A) If a person is arrested or charged in connec23 tion with an offense described in subparagraph (C) involv24 ing the movement of funds into or out of the United 

25 States, the Attorney General may apply to any Federal 


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1 judge or magistrate judge in the district in which the ar2 rest is made or the charges are filed for an ex parte order 

3 restraining any account held by the person arrested or 

4 charged for not more than 30 days, except that such 30- 

5 day time period may be extended for good cause shown 

6 at a hearing conducted in the manner provided in Rule 

7 43(c) of the Federal Rules of Civil Procedure. The court 

8 may receive and consider evidence and information sub9 mitted by the Government that would be inadmissible 

10 under the Federal Rules of Evidence. 

11 ‘‘(B) The application for the restraining order re12 ferred to in subparagraph (A) shall— 

13 ‘‘(i) identify the offense for which the person 

14 has been arrested or charged; 

15 ‘‘(ii) identify the location and description of the 

16 accounts to be restrained; and 

17 ‘‘(iii) state that the restraining order is needed 

18 to prevent the removal of the funds in the account 

19 by the person arrested or charged, or by other per20 sons associated with that person, during the time 

21 needed by the Government to conduct such inves22 tigation as may be necessary to establish whether 

23 there is probable cause to believe that the funds in 

24 the accounts are subject to forfeiture in connection 

25 with the commission of any criminal offense. 


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1 ‘‘(C) A restraining order may be issued under sub2 paragraph (A) if a person is arrested or charged with any 

3 offense for which forfeiture is authorized under— 

4 ‘‘(i) this title; 

5 ‘‘(ii) title 31; or 

6 ‘‘(iii) the Controlled Substances Act (21 U.S.C. 

7 801 et seq.). 

8 ‘‘(D) For purposes of this paragraph— 

9 ‘‘(i) the term ‘account’ includes any safe deposit 

10 box and any account (as defined in paragraphs (1) 

11 and (2) of section 5318A(e) of title 31) at any fi12 nancial institution; and 

13 ‘‘(ii) the term ‘account held by the person ar14 rested or charged’ includes an account held in the 

15 name of that person, and any account over which 

16 that person has effective control as a signatory or 

17 otherwise. 

18 ‘‘(E) Restraint under this paragraph shall not be 

19 deemed a seizure for purposes of section 983(a). 

20 ‘‘(F) A restraining order issued under this paragraph 

21 may be executed in any district in which the subject ac22 count is found, or transmitted to the central authority of 

23 any foreign State for service in accordance with any treaty 

24 or other international agreement.’’. 


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1 SEC. 9. PROHIBITING MONEY LAUNDERING THROUGH 

2 HAWALAS, OTHER INFORMAL VALUE TRANS3 FER SYSTEMS, AND CLOSELY RELATED 

4 TRANSACTIONS. 

5 The matter following section 1956(a)(1)(B)(ii) of 

6 title 18, United States Code, is amended by striking ‘‘For 

7 purposes of this paragraph, a financial transaction’’ and 

8 inserting ‘‘For purposes of this paragraph and section 

9 1957, a financial transaction or a monetary transaction, 

10 as applicable,’’. 

11 SEC. 10. TECHNICAL AMENDMENT TO RESTORE WIRETAP 

12 AUTHORITY FOR CERTAIN MONEY LAUN13 DERING AND COUNTERFEITING OFFENSES. 

14 (a) CURRENCY REPORTING OFFENSES.—Section 

15 2516(1)(g) of title 18, United States Code, is amended 

16 by striking ‘‘or section 5324 of title 31, United States 

17 Code (relating to structuring transactions to evade report18 ing requirement prohibited)’’ and inserting ‘‘or section 

19 5324, 5331, or 5332 of that title (relating to evasion of 

20 Federal transaction reporting requirements)’’. 

21 (b) MONEY LAUNDERING.—Section 2516(1)(c) of 

22 title 18, United States Code, is amended by inserting ‘‘sec23 tion 1960 (relating to illegal money services businesses),’’ 

24 before ‘‘section 659’’. 


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1 (c) COUNTERFEITING.—Section 2516(1)(d) of title 

2 18, United States Code, is amended by striking ‘‘or 473’’ 

3 and inserting ‘‘473, 474, or 474A’’. 

4 SEC. 11. MAKING THE INTERNATIONAL MONEY LAUN5 DERING STATUTE APPLY TO TAX EVASION. 

6 Section 1956(a)(2)(A) of title 18, United States 

7 Code, is amended— 

8 (1) by inserting ‘‘(i)’’ before ‘‘with the intent to 

9 promote’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(ii) with the intent to engage in conduct 

12 constituting a violation of section 7201 or 7206 

13 of the Internal Revenue Code of 1986; or’’. 

14 SEC. 12. CONDUCT IN AID OF COUNTERFEITING. 

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

16 States Code, is amended by inserting after the paragraph 

17 beginning ‘‘Whoever has in his control, custody, or posses18 sion any plate’’ the following: 

19 ‘‘Whoever, with intent to defraud, has custody, con20 trol, or possession of any material, tool, machinery, or 

21 other equipment that can be used to make, alter, forge, 

22 or counterfeit any obligation or other security of the 

23 United States or any part of such obligation or security, 

24 except under the authority of the Secretary of the Treas25 ury; or’’. 


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1 (b) FOREIGN OBLIGATIONS AND SECURITIES.—Sec2 tion 481 of title 18, United States Code, is amended by 

3 inserting after the paragraph beginning ‘‘Whoever, with 

4 intent to defraud’’ the following: 

5 ‘‘Whoever, with intent to defraud, has custody, con6 trol, or possession of any material, tool, machinery, or 

7 other equipment that can be used to make, alter, forge, 

8 or counterfeit any obligation or other security of any for9 eign government, bank, or corporation; or’’. 

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

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

12 inserting ‘‘474, or 474A’’. 

13 (d) STRENGTHENING DETERRENTS TO COUNTER14 FEITING.—Section 474A of title 18, United States Code, 

15 is amended— 

16 (1) in subsection (a), by inserting ‘‘, custody,’’ 

17 after ‘‘control’’; 

18 (2) in subsection (b)— 

19 (A) by inserting ‘‘, custody,’’ after ‘‘con20 trol’’; and 

21 (B) by striking ‘‘any essentially identical 

22 feature or device adapted to the making of any 

23 such obligation or security,’’ and inserting ‘‘any 

24 material or other thing made after or in simili25 tude of any such deterrent,’’; and 


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

2 ‘‘(d) Whoever has in his control, custody, or posses3 sion any obligation or security of the United States or any 

4 foreign government from which the ink or other distinctive 

5 counterfeit deterrent has been completely or partially re6 moved, except under the authority of the Secretary of the 

7 Treasury, is guilty of a class B felony.’’. 

8 SEC. 13. ADMINISTRATIVE SUBPOENAS FOR MONEY LAUN9 DERING CASES. 

10 Section 3486(a) of title 18, United States Code, is 

11 amended— 

12 (1) in paragraph (1)(A)— 

13 (A) in the matter preceding clause (i), by 

14 striking ‘‘of’’ and inserting ‘‘relating to’’; 

15 (B) in clause (ii), by striking ‘‘or’’; 

16 (C) in clause (iii)— 

17 (i) by striking ‘‘section 3056’’ and in18 serting ‘‘section 3056(a)’’; and 

19 (ii) by striking ‘‘the Treasury,’’ and 

20 inserting ‘‘Homeland Security; or’’; and 

21 (D) by inserting after clause (iii) the fol22 lowing: 

23 ‘‘(iv) an offense under section 1956, 

24 1957, or 1960 of this title, or section 

25 5313, 5316, 5324, 5331, or 5332 of title 


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1 31, or an offense against a foreign nation 

2 constituting specified unlawful activity 

3 under section 1956 of this title, or a crimi4 nal or civil forfeiture based upon an of5 fense enumerated in this subparagraph or 

6 for which enforcement could be brought 

7 under section 2467 of title 28, the Attor8 ney General, the Secretary of Homeland 

9 Security, or the Secretary of the Treas10 ury,’’; and 

11 (2) in paragraph (6)(B)— 

12 (A) in clause (iii), by striking ‘‘or’’ at the 

13 end; 

14 (B) in clause (iv), by striking the period 

15 and inserting ‘‘; or’’; and 

16 (C) by adding at the end following: 

17 ‘‘(v) dissipation, destruction, removal, transfer, 

18 damage, encumbrance, or other unavailability of 

19 property that may become subject to forfeiture or an 

20 enforcement action under section 2467 of title 28.’’. 

21 SEC. 14. OBTAINING FOREIGN BANK RECORDS FROM 

22 BANKS WITH UNITED STATES CORRESPON23 DENT ACCOUNTS. 

24 (a) GRAND JURY AND TRIAL SUBPOENAS.—Section 

25 5318(k) of title 31, United States Code, is amended— 


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1 (1) in paragraph (1)— 

2 (A) by redesignating subparagraph (B) as 

3 subparagraph (C); and 

4 (B) by inserting after subparagraph (A) 

5 the following: 

6 ‘‘(B) COVERED FINANCIAL INSTITUTION.— 

7 The term ‘covered financial institution’ means 

8 an institution referred to in subsection (j)(1).’’; 

9 and 

10 (2) by striking paragraph (3) and inserting the 

11 following: 

12 ‘‘(3) FOREIGN BANK RECORDS.— 

13 ‘‘(A) SUBPOENA OF RECORDS.— 

14 ‘‘(i) IN GENERAL.—Notwithstanding 

15 subsection (b), the Secretary of the Treas16 ury or the Attorney General may issue a 

17 subpoena to any foreign bank that main18 tains a correspondent account in the 

19 United States and request any records re20 lating to the correspondent account or any 

21 account at the foreign bank, including 

22 records maintained outside of the United 

23 States, that are the subject of any— 


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1 ‘‘(I) investigation of a violation of 

2 a criminal law of the United States; 

3 or 

4 ‘‘(II) civil forfeiture action. 

5 ‘‘(ii) PRODUCTION OF RECORDS.—The 

6 foreign bank on which a subpoena de7 scribed in clause (i) is served shall produce 

8 all requested records and authenticate all 

9 requested records with testimony in the 

10 manner described in— 

11 ‘‘(I) rule 902(12) of the Federal 

12 Rules of Evidence; or 

13 ‘‘(II) section 3505 of title 18. 

14 ‘‘(iii) ISSUANCE AND SERVICE OF SUB15 POENA.—A subpoena described in clause 

16 (i)— 

17 ‘‘(I) shall designate— 

18 ‘‘(aa) a return date; and 

19 ‘‘(bb) the judicial district in 

20 which the related investigation is 

21 proceeding; and 

22 ‘‘(II) may be served— 

23 ‘‘(aa) in person; 

24 ‘‘(bb) by mail or fax in the 

25 United States if the foreign bank 


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1 has a representative in the 

2 United States; or 

3 ‘‘(cc) in a foreign country 

4 under any mutual legal assist5 ance treaty, multilateral agree6 ment, or other request for inter7 national legal or law enforcement 

8 assistance. 

9 ‘‘(iv) RELIEF FROM SUBPOENA.— 

10 ‘‘(I) IN GENERAL.—At any time 

11 before the return date of the subpoena 

12 described in clause (i), the foreign 

13 bank on which the subpoena is served 

14 may petition the district court of the 

15 United States for the judicial district 

16 in which the related investigation is 

17 proceeding, as designated in the sub18 poena, to modify or quash— 

19 ‘‘(aa) the subpoena; or 

20 ‘‘(bb) the prohibition against 

21 disclosure described in subpara22 graph (C). 

23 ‘‘(II) CONFLICT WITH FOREIGN

24 SECRECY OR CONFIDENTIALITY.—An 

25 assertion that compliance with the 


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1 subpoena would conflict with a provi2 sion of foreign secrecy or confiden3 tiality law shall not be a basis for 

4 quashing or modifying the subpoena. 

5 ‘‘(B) ACCEPTANCE OF SERVICE.— 

6 ‘‘(i) MAINTAINING RECORDS IN THE

7 UNITED STATES.—Any covered financial 

8 institution that maintains a correspondent 

9 account in the United States for a foreign 

10 bank shall maintain records in the United 

11 States identifying— 

12 ‘‘(I) the owners of such foreign 

13 bank; and 

14 ‘‘(II) the name and address of a 

15 person who— 

16 ‘‘(aa) resides in the United 

17 States; and 

18 ‘‘(bb) is authorized to accept 

19 service of legal process for 

20 records covered under this sub21 section. 

22 ‘‘(ii) LAW ENFORCEMENT REQUEST.— 

23 Upon receipt of a written request from a 

24 Federal law enforcement officer for infor25 mation required to be maintained under 


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1 this paragraph, a covered financial institu2 tion shall provide the information to the 

3 requesting officer not later than 7 days 

4 after receipt of the request. 

5 ‘‘(C) NONDISCLOSURE OF SUBPOENA.— 

6 ‘‘(i) IN GENERAL.—No officer, direc7 tor, partner, employee, or shareholder of, 

8 or agent or attorney for, a foreign bank on 

9 which a subpoena is served under this 

10 paragraph shall, directly or indirectly, no11 tify any account holder involved or any 

12 person named in the subpoena issued 

13 under subparagraph (A)(i) and served on 

14 such an institution about the existence or 

15 contents of such subpoena. 

16 ‘‘(ii) DAMAGES.—Upon application by 

17 the Attorney General for a violation of this 

18 subparagraph, a foreign bank on which a 

19 subpoena is served under this paragraph 

20 shall be liable to the United States Govern21 ment for a civil penalty in an amount 

22 equal to— 

23 ‘‘(I) double the amount of the 

24 suspected criminal proceeds sent 

25 through the correspondent account of 


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1 the foreign bank in the related inves2 tigation; or 

3 ‘‘(II) if no such proceeds can be 

4 identified, $250,000. 

5 ‘‘(D) ENFORCEMENT.— 

6 ‘‘(i) IN GENERAL.—If a foreign bank 

7 fails to obey a subpoena issued under sub8 paragraph (A)(i), the Attorney General 

9 may invoke the aid of the district court of 

10 the United States for the judicial district 

11 in which the investigation or related pro12 ceeding is occurring to compel compliance 

13 with the subpoena. 

14 ‘‘(ii) COURT ORDERS AND CONTEMPT

15 OF COURT.—The court may— 

16 ‘‘(I) issue an order requiring the 

17 foreign bank to appear before the Sec18 retary of the Treasury or the Attorney 

19 General to produce— 

20 ‘‘(aa) certified records, in 

21 accordance with— 

22 ‘‘(AA) rule 902(12) of 

23 the Federal Rules of Evi24 dence; or 


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1 ‘‘(BB) section 3505 of 

2 title 18; or 

3 ‘‘(bb) testimony regarding 

4 the production of such records; 

5 and 

6 ‘‘(II) punish any failure to obey 

7 an order issued under subclause (I) as 

8 contempt of court. 

9 ‘‘(iii) SERVICE OF PROCESS.—All 

10 process in a case under this subparagraph 

11 shall be served on the foreign bank in the 

12 same manner as described in subparagraph 

13 (A)(iii). 

14 ‘‘(E) TERMINATION OF CORRESPONDENT

15 RELATIONSHIP.— 

16 ‘‘(i) TERMINATION UPON RECEIPT OF

17 NOTICE.—A covered financial institution 

18 shall terminate any correspondent relation19 ship with a foreign bank not later than 10 

20 business days after the date on which the 

21 covered financial institution receives writ22 ten notice from the Secretary of the Treas23 ury or the Attorney General if, after con24 sultation with the other, the Secretary of 

25 the Treasury or Attorney General, as apVerDate Sep 11 2014 23:52 Jul 23, 2019 Jkt 089200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\S1883.RS S1883

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1 plicable, determines that the foreign bank 

2 has failed— 

3 ‘‘(I) to comply with a subpoena 

4 issued under subparagraph (A)(i); or 

5 ‘‘(II) to prevail in proceedings be6 fore— 

7 ‘‘(aa) the appropriate dis8 trict court of the United States 

9 after challenging such a sub10 poena under subparagraph 

11 (A)(iv)(I); or 

12 ‘‘(bb) a court of appeals of 

13 the United States after appealing 

14 a decision of a district court of 

15 the United States under item 

16 (aa). 

17 ‘‘(ii) LIMITATION ON LIABILITY.—A 

18 covered financial institution shall not be 

19 liable to any person in any court or arbi20 tration proceeding for terminating a cor21 respondent relationship under this sub22 paragraph or complying with a nondisclo23 sure order under subparagraph (C). 

24 ‘‘(iii) FAILURE TO TERMINATE RELA25 TIONSHIP.—A covered financial institution 


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1 that fails to terminate a correspondent re2 lationship under clause (i) shall be liable 

3 for a civil penalty in an amount that is not 

4 more than $10,000 for each day that the 

5 covered financial institution fails to termi6 nate the relationship. 

7 ‘‘(F) ENFORCEMENT OF CIVIL PEN8 ALTIES.—Upon application by the United 

9 States, any funds held in the correspondent ac10 count of a foreign bank that is maintained in 

11 the United States with a covered financial insti12 tution may be seized by the United States to 

13 satisfy any civil penalties that are imposed— 

14 ‘‘(i) under subparagraph (C)(ii); or 

15 ‘‘(ii) by the court for contempt under 

16 subparagraph (D).’’. 

17 (b) FAIR CREDIT REPORTING ACT AMENDMENT.— 

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

19 U.S.C. 1681b(a)(1)) is amended— 

20 (1) by striking ‘‘, or a’’ and inserting ‘‘, a’’; and 

21 (2) by inserting ‘‘, or a subpoena issued in ac22 cordance with section 5318 of title 31, United States 

23 Code, or section 3486 of title 18, United States 

24 Code’’ after ‘‘grand jury’’. 


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1 (c) OBSTRUCTION OF JUSTICE.—Section 

2 1510(b)(3)(B) of title 18, United States Code, is amend3 ed— 

4 (1) in the matter preceding clause (i), by strik5 ing ‘‘or a Department of Justice subpoena (issued 

6 under section 3486 of title 18)’’ and inserting ‘‘, a 

7 subpoena issued under section 3486 of this title, or 

8 an order or subpoena issued in accordance with sec9 tion 3512 of this title, section 5318 of title 31, or 

10 section 1782 of title 28,’’; and 

11 (2) in clause (i) by inserting ‘‘, 1960, or an of12 fense against a foreign nation constituting specified 

13 unlawful activity under section 1956, or a foreign of14 fense for which enforcement of a foreign forfeiture 

15 judgment could be brought under section 2467 of 

16 title 28’’ after ‘‘1957’’. 

17 (d) RIGHT TO FINANCIAL PRIVACY ACT.—Section 

18 1120(b)(1)(A) of the Right to Financial Privacy Act of 

19 1978 (12 U.S.C. 3420(b)(1)(A)) is amended— 

20 (1) by striking ‘‘or 1957’’ and inserting ‘‘, 

21 1957, or 1960’’; and 

22 (2) by striking ‘‘and 5324’’ and inserting ‘‘, 

23 5322, 5324, 5331, and 5332’’. 


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1 SEC. 15. DANGER PAY ALLOWANCE. 

2 Section 151 of the Foreign Relations Authorization 

3 Act, Fiscal Years 1990 and 1991 (5 U.S.C. 5928 note) 

4 is amended by striking ‘‘Drug Enforcement Administra5 tion or Federal Bureau of Investigation’’ and inserting 

6 ‘‘Drug Enforcement Administration, the Federal Bureau 

7 of Investigation, U.S. Immigration and Customs Enforce8 ment, U.S. Customs and Border Protection, or the United 

9 States Secret Service’’. 

10 SEC. 16. CLARIFICATION OF SECRET SERVICE AUTHORITY 

11 TO INVESTIGATE MONEY LAUNDERING. 

12 Section 3056(b)(3) of title 18, United States Code, 

13 is amended— 

14 (1) by inserting ‘‘money laundering, structured 

15 transactions,’’ after ‘‘documents or devices,’’; and 

16 (2) by striking ‘‘federally insured’’. 

17 SEC. 17. PROHIBITION ON CONCEALMENT OF OWNERSHIP 

18 OF ACCOUNT. 

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

20 title 31, United States Code, is amended by adding at the 

21 end the following: 

22 ‘‘§ 5333. Prohibition on concealment of ownership of 

23 account 

24 ‘‘(a) IN GENERAL.—No person shall knowingly con25 ceal, falsify, or misrepresent, or attempt to conceal, falsify, 

26 or misrepresent, from or to a financial institution, a mateVerDate Sep 11 2014 23:52 Jul 23, 2019 Jkt 089200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6401 E:\BILLS\S1883.RS S1883

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1 rial fact concerning the ownership or control of an account 

2 or assets held in an account with a financial institution. 

3 ‘‘(b) PENALTIES.—A person convicted of an offense 

4 under subsection (a), or a conspiracy to commit such of5 fense, shall be imprisoned for not more than 10 years, 

6 fined not more than $1,000,000, or both. 

7 ‘‘(c) FORFEITURE.— 

8 ‘‘(1) CRIMINAL FORFEITURE.— 

9 ‘‘(A) IN GENERAL.—The court, in impos10 ing penalties under subsection (b), shall order 

11 that the defendant forfeit to the United States 

12 any property involved in the offense, or a con13 spiracy to commit such offense, and any prop14 erty traceable thereto. 

15 ‘‘(B) PROCEDURE.—Section 413 of the 

16 Controlled Substances Act (21 U.S.C. 853) 

17 shall govern the seizure, restraint, and for18 feiture of property under this paragraph. 

19 ‘‘(2) CIVIL FORFEITURE.— 

20 ‘‘(A) IN GENERAL.—Any property involved 

21 in a violation of subsection (a), or a conspiracy 

22 to commit such violation, and any property 

23 traceable thereto may be seized and forfeited to 

24 the United States. 


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1 ‘‘(B) PROCEDURE.—Seizures and forfeit2 ures under this paragraph shall be governed by 

3 the provisions of chapter 46 of title 18 relating 

4 to civil forfeitures, except that such duties, 

5 under customs laws described in section 981(d) 

6 of title 18, given to the Secretary of the Treas7 ury shall be performed by such officers, agents, 

8 and other persons as designated by the Sec9 retary of Homeland Security or the Attorney 

10 General. 

11 ‘‘(3) TREATMENT OF CERTAIN PROPERTY AS

12 INVOLVED IN THE OFFENSE.—In this subsection, 

13 the term ‘property involved in’ includes any assets 

14 credited to, attempted to be credited to, or contained 

15 in the account. 

16 ‘‘(d) FINANCIAL INSTITUTION.—In this section, the 

17 term ‘financial institution’ means any entity defined under 

18 section 5312(a)(2), or the regulations promulgated under 

19 this title, that is required to— 

20 ‘‘(1) implement a customer identification pro21 gram under this title, or the regulations promul22 gated under this title; or 

23 ‘‘(2) conduct customer due diligence under this 

24 title, or the regulations promulgated under this 

25 title.’’. 


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1 (b) TABLE OF SECTIONS.—The table of sections for 

2 subchapter II of chapter 53 of title 31, United States 

3 Code, is amended by adding at the end the following: 

‘‘5333. Prohibition on concealment of ownership of account.’’. 

4 SEC. 18. PROHIBITION ON CONCEALMENT OF THE SOURCE 

5 OF ASSETS IN MONETARY TRANSACTIONS. 

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

7 title 31, United States Code, as amended by section 17 

8 of this Act, is amended by adding at the end the following: 

9 ‘‘§ 5334. Prohibition on concealment of the source of 

10 assets in monetary transactions 

11 ‘‘(a) IN GENERAL.—No person shall knowingly con12 ceal, falsify, or misrepresent, or attempt to conceal, falsify, 

13 or misrepresent, from or to a financial institution, a mate14 rial fact concerning the ownership or control of assets in15 volved in a monetary transaction if— 

16 ‘‘(1) the person or entity who owns or controls 

17 such assets is a senior foreign political figure, or any 

18 immediate family member or close associate of a 

19 senior foreign political figure, as set forth in this 

20 title or the regulations promulgated under this title; 

21 and 

22 ‘‘(2) the aggregate value of the assets involved 

23 in one or more such transactions is not less than 

24 $1,000,000. 


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1 ‘‘(b) SOURCE OF FUNDS.—No person shall knowingly 

2 conceal, falsify, or misrepresent, or attempt to conceal, fal3 sify, or misrepresent, from or to a financial institution, 

4 a material fact concerning the source of funds in a mone5 tary transaction that— 

6 ‘‘(1) involves an entity found to be a primary 

7 money laundering concern under section 5318A or 

8 the regulations promulgated under this title; and 

9 ‘‘(2) violates the prohibitions or conditions pre10 scribed under section 5318A(b)(5) or the regulations 

11 promulgated under this title. 

12 ‘‘(c) PENALTIES.—A person convicted of an offense 

13 under subsection (a) or (b), or a conspiracy to commit 

14 such offense, shall be imprisoned for not more than 10 

15 years, fined not more than $1,000,000, or both. 

16 ‘‘(d) FORFEITURE.— 

17 ‘‘(1) CRIMINAL FORFEITURE.— 

18 ‘‘(A) IN GENERAL.—The court, in impos19 ing sentence under subsection (c), shall order 

20 that the defendant forfeit to the United States 

21 any property involved in the offense and any 

22 property traceable thereto. 

23 ‘‘(B) PROCEDURE.—The seizure, restraint, 

24 and forfeiture of property under this paragraph 


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1 shall be governed by section 413 of the Con2 trolled Substances Act (21 U.S.C. 853). 

3 ‘‘(2) CIVIL FORFEITURE.— 

4 ‘‘(A) IN GENERAL.—Any property involved 

5 in a violation of subsection (a) or (b), or a con6 spiracy to commit such violation, and any prop7 erty traceable thereto may be seized and for8 feited to the United States. 

9 ‘‘(B) PROCEDURE.—Seizures and forfeit10 ures under this paragraph shall be governed by 

11 the provisions of chapter 46 of title 18, relating 

12 to civil forfeitures, except that such duties, 

13 under the customs laws described in section 

14 981(d) of title 18, given to the Secretary of the 

15 Treasury shall be performed by such officers, 

16 agents, and other persons as may be designated 

17 for that purpose by the Secretary of Homeland 

18 Security or the Attorney General. 

19 ‘‘(e) DEFINITIONS.—In this section— 

20 ‘‘(1) the term ‘financial institution’ has the 

21 meaning given the term in section 5312(a)(2) of this 

22 title; and 

23 ‘‘(2) the term ‘monetary transaction’ means the 

24 deposit, withdrawal, transfer, or exchange, in or af25 fecting interstate or foreign commerce, of funds or 


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1 a monetary instrument (as defined in section 

2 1956(c)(5) of title 18) by, through, or to a financial 

3 institution (as defined in section 1956(c)(6) of title 

4 18)— 

5 ‘‘(A) including any transaction that would 

6 be a financial transaction under section 

7 1956(c)(4)(B) of title 18; and 

8 ‘‘(B) not including any transaction nec9 essary to preserve a person’s right to represen10 tation as guaranteed by the Sixth Amendment 

11 to the Constitution of the United States.’’. 

12 (b) TABLE OF SECTIONS.—The table of sections for 

13 subchapter II of chapter 53 of title 31, United States 

14 Code, as amended by section 17 of this Act, is amended 

15 by adding at the end the following: 

‘‘5334. Prohibition on concealment of the source of assets in monetary transactions.’’. 

16 SEC. 19. RULE OF CONSTRUCTION. 

17 Nothing in this Act, or any amendment made by this 

18 Act, shall be construed to apply to the authorized law en19 forcement, protective, or intelligence activities of the 

20 United States or of an intelligence agency of the United 

21 States. 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Combating Money Laundering, Terrorist Financing, and 

4 Counterfeiting Act of 2019’’. 

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

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Transportation or transhipment of blank checks in bearer form. 

Sec. 3. Bulk cash smuggling. 

Sec. 4. Section 1957 violations involving commingled funds and aggregated transactions. 

Sec. 5. Charging money laundering as a course of conduct. 

Sec. 6. Illegal money services businesses. 

Sec. 7. Prohibiting money laundering through hawalas, other informal value 

transfer systems, and closely related transactions. 

Sec. 8. Technical amendment to restore wiretap authority for certain money 

laundering and counterfeiting offenses. 

Sec. 9. Making the international money laundering statute apply to tax evasion. 

Sec. 10. Conduct in aid of counterfeiting. 

Sec. 11. Danger pay allowance. 

Sec. 12. Clarification of Secret Service authority to investigate money laundering. 

Sec. 13. Remittances and money laundering threat analysis. 

Sec. 14. Rule of construction. 

7 SEC. 2. TRANSPORTATION OR TRANSHIPMENT OF BLANK 

8 CHECKS IN BEARER FORM. 

9 Section 5316 of title 31, United States Code, is amend10 ed by adding at the end the following: 

11 ‘‘(e) MONETARY INSTRUMENTS WITH AMOUNT LEFT

12 BLANK.—For purposes of this section, a monetary instru13 ment in bearer form that has the amount left blank, such 

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

15 considered to have a value of more than $10,000 if the in16 strument was drawn on an account that contained, or was 

17 intended to contain more than $10,000 at the time— 


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1 ‘‘(1) the instrument was transported; or 

2 ‘‘(2) the instrument was negotiated or was in3 tended to be negotiated.’’. 

4 SEC. 3. BULK CASH SMUGGLING. 

5 Section 5332(b) of title 31, United States Code, is 

6 amended— 

7 (1) in paragraph (1), by striking ‘‘5 years’’ and 

8 inserting ‘‘10 years’’; 

9 (2) by redesignating paragraphs (2), (3), and 

10 (4), as paragraphs (3), (4), and (5), respectively; 

11 (3) by inserting after paragraph (1) the fol12 lowing: 

13 ‘‘(2) FINE.— 

14 ‘‘(A) IN GENERAL.—Whoever violates this 

15 section shall be fined under title 18. 

16 ‘‘(B) ENHANCED FINE FOR AGGRAVATED

17 CASES.—Whoever violates this section while vio18 lating another law of the United States, other 

19 than section 5316 or 5324(c) of this title, or as 

20 a part of a pattern of any unlawful activity, in21 cluding a violation of section 5316 or 5324(c) of 

22 this title, shall be fined double the amount pro23 vided in subsection (b)(3) or (c)(3) (as applica24 ble) of section 3571 of title 18.’’; and 


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1 (4) in paragraph (5), as redesignated, by strik2 ing ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. 

3 SEC. 4. SECTION 1957 VIOLATIONS INVOLVING COMMIN4 GLED FUNDS AND AGGREGATED TRANS5 ACTIONS. 

6 Section 1957 of title 18, United States Code, is amend7 ed by adding at the end the following: 

8 ‘‘(g) In a prosecution for an offense under this section, 

9 the Government may satisfy the $10,000 monetary trans10 action value requirement under subsection (a) by showing 

11 that— 

12 ‘‘(1) the monetary transaction involved the 

13 transfer, withdrawal, encumbrance, or other disposi14 tion of more than $10,000 from an account in which 

15 more than $10,000 in proceeds of specified unlawful 

16 activity was commingled with other funds; or 

17 ‘‘(2) the defendant conducted a series of mone18 tary transactions in amounts of not more than 

19 $10,000 that— 

20 ‘‘(A) exceeded $10,000 in the aggregate; and 

21 ‘‘(B) were closely related to each other as 

22 demonstrated by factors such as— 

23 ‘‘(i) the time period between the trans24 actions; 


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1 ‘‘(ii) the identity of the parties in2 volved; 

3 ‘‘(iii) the nature or purpose of the 

4 transactions; and 

5 ‘‘(iv) the manner in which the trans6 actions were conducted.’’. 

7 SEC. 5. CHARGING MONEY LAUNDERING AS A COURSE OF 

8 CONDUCT. 

9 Section 1956 of title 18, United States Code, is amend10 ed— 

11 (1) in subsection (h), by striking ‘‘or section 

12 1957’’ and inserting ‘‘, section 1957, or section 1960’’; 

13 and 

14 (2) by adding at the end the following: 

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

16 this section that are part of the same scheme or continuing 

17 course of conduct may be charged, at the election of the Gov18 ernment, in a single count in an indictment or informa19 tion.’’. 

20 SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES. 

21 (a) IN GENERAL.—Section 1960 of title 18, United 

22 States Code, is amended by striking subsections (a) and (b) 

23 and inserting the following: 


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1 ‘‘(a) OFFENSE.—Whoever knowingly conducts, con2 trols, manages, supervises, directs, or owns all or part of 

3 a covered money services business that— 

4 ‘‘(1) is operated without an appropriate license 

5 in a State where such operation is punishable as a 

6 misdemeanor or a felony under State law, whether or 

7 not the person knows that the operation is required 

8 to be licensed or that the operation is so punishable; 

9 ‘‘(2) fails to comply with the money services 

10 business registration requirements under section 5330 

11 of title 31, or regulations prescribed under that sec12 tion, whether or not the person knows that the oper13 ation is required to comply with those registration re14 quirements; or 

15 ‘‘(3) otherwise engages in a transaction involv16 ing funds that the person knows have been derived 

17 from a criminal offense or are intended to be used to 

18 promote or support unlawful activity, 

19 shall be punished as provided in subsection (b). 

20 ‘‘(b) CRIMINAL PENALTY.—Any person who violates— 

21 ‘‘(1) subsection (a) shall be fined in accordance 

22 with this title, imprisoned for not more than 5 years, 

23 or both; and 

24 ‘‘(2) subsection (a) by conducting, controlling, 

25 managing, supervising, directing, or owning all or 


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1 part of a covered money services business that en2 gaged in activity as a covered money services business 

3 involving more than $1,000,000 during a 12-month 

4 period, or by engaging in a transaction or trans5 actions involving more than $1,000,000 during a 12- 

6 month period, shall be fined double the amount pro7 vided in subsection (b)(3) or (c)(3) (as applicable) of 

8 section 3571, imprisoned for not more than 10 years, 

9 or both. 

10 ‘‘(c) DEFINITIONS.—In this section— 

11 ‘‘(1) the term ‘covered money services business’ 

12 means a money services business that— 

13 ‘‘(A) operates on behalf of the public; and 

14 ‘‘(B) affects interstate or foreign commerce 

15 in any manner or degree; 

16 ‘‘(2) the term ‘money services business’— 

17 ‘‘(A) has the meaning given the term in sec18 tion 5330 of title 31 and any regulations pre19 scribed under that section; and 

20 ‘‘(B) includes a person that engages in the 

21 transfer, transportation, or exchange of currency, 

22 funds, or value that substitutes for currency by 

23 any and all means, even when not performed for 

24 profit; and 


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1 ‘‘(3) the term ‘State’ means any State of the 

2 United States, the District of Columbia, the Northern 

3 Mariana Islands, and any commonwealth, territory, 

4 or possession of the United States.’’. 

5 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

6 (1) SECTION 1960 OF TITLE 18, UNITED STATES

7 CODE.— 

8 (A) SECTION HEADING.—Section 1960 of 

9 title 18, United States Code, is amended in the 

10 section heading— 

11 (i) by striking ‘‘unlicensed’’ and in12 serting ‘‘illegal’’; and 

13 (ii) by striking ‘‘transmitting’’ and 

14 inserting ‘‘services’’. 

15 (B) TABLE OF SECTIONS.—The table of sec16 tions for chapter 95 of title 18, United States 

17 Code, is amended by striking the item relating to 

18 section 1960 and inserting the following: 

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

19 (2) SECTION 5330 OF TITLE 31, UNITED STATES

20 CODE.— 

21 (A) HEADINGS.—Section 5330 of title 31, 

22 United States Code, is amended— 

23 (i) in the section heading, by striking 

24 ‘‘transmitting’’ and inserting ‘‘serv25 ices’’; 


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1 (ii) in subsection (c)— 

2 (I) in the subsection heading, by 

3 striking ‘‘TRANSMITTING’’ and insert4 ing ‘‘SERVICES’’; 

5 (II) in paragraph (1), in the 

6 paragraph heading, by striking 

7 ‘‘TRANSMITTING’’ and inserting ‘‘SERV8 ICES’’; and 

9 (III) in paragraph (2), in the 

10 paragraph heading, by striking 

11 ‘‘TRANSMITTING’’ and inserting ‘‘SERV12 ICES’’; and 

13 (iii) in subsection (d)(1), in the para14 graph heading, by striking ‘‘TRANSMITTING’’ 

15 and inserting ‘‘SERVICES’’. 

16 (B) TEXT.—Section 5330 of title 31, United 

17 States Code, is amended— 

18 (i) by striking ‘‘money transmitting 

19 business’’ each place that term appears and 

20 inserting ‘‘money services business’’; and 

21 (ii) in subsection (a)(3), by striking 

22 ‘‘money transmitting businesses’’ and in23 serting ‘‘a money services business’’. 

24 (C) TABLE OF SECTIONS.—The table of sec25 tions for subchapter II of chapter 53 of title 31, 


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1 United States Code, is amended by striking the 

2 item relating to section 5330 and inserting the 

3 following: 

‘‘5330. Registration of money services businesses.’’. 

4 SEC. 7. PROHIBITING MONEY LAUNDERING THROUGH 

5 HAWALAS, OTHER INFORMAL VALUE TRANS6 FER SYSTEMS, AND CLOSELY RELATED 

7 TRANSACTIONS. 

8 The matter following section 1956(a)(1)(B)(ii) of title 

9 18, United States Code, is amended by striking ‘‘For pur10 poses of this paragraph, a financial transaction’’ and in11 serting ‘‘For purposes of this paragraph and section 1957, 

12 a financial transaction or a monetary transaction, as ap13 plicable,’’. 

14 SEC. 8. TECHNICAL AMENDMENT TO RESTORE WIRETAP AU15 THORITY FOR CERTAIN MONEY LAUNDERING 

16 AND COUNTERFEITING OFFENSES. 

17 (a) CURRENCY REPORTING OFFENSES.—Section 

18 2516(1)(g) of title 18, United States Code, is amended by 

19 striking ‘‘or section 5324 of title 31, United States Code 

20 (relating to structuring transactions to evade reporting re21 quirement prohibited)’’ and inserting ‘‘or section 5324 or 

22 5332 of that title (relating to evasion of Federal transaction 

23 reporting requirements)’’. 

24 (b) MONEY LAUNDERING.—Section 2516(1)(c) of title 

25 18, United States Code, is amended by inserting ‘‘section 


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1 1960 (relating to illegal money services businesses),’’ before 

2 ‘‘section 659’’. 

3 (c) COUNTERFEITING.—Section 2516(1)(d) of title 18, 

4 United States Code, is amended by striking ‘‘or 473’’ and 

5 inserting ‘‘473, 474, or 474A’’. 

6 SEC. 9. MAKING THE INTERNATIONAL MONEY LAUNDERING 

7 STATUTE APPLY TO TAX EVASION. 

8 Section 1956(a)(2)(A) of title 18, United States Code, 

9 is amended— 

10 (1) by inserting ‘‘(i)’’ before ‘‘with the intent to 

11 promote’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(ii) with the intent to engage in conduct 

14 constituting a violation of section 7201 or 7206 

15 of the Internal Revenue Code of 1986; or’’. 

16 SEC. 10. CONDUCT IN AID OF COUNTERFEITING. 

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

18 States Code, is amended by inserting after the paragraph 

19 beginning ‘‘Whoever has in his control, custody, or posses20 sion any plate’’ the following: 

21 ‘‘Whoever, with intent to defraud, has custody, control, 

22 or possession of any material, tool, machinery, or other 

23 equipment that can be used to make, alter, forge, or counter24 feit any obligation or other security of the United States 


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1 or any part of such obligation or security, except under the 

2 authority of the Secretary of the Treasury; or’’. 

3 (b) FOREIGN OBLIGATIONS AND SECURITIES.—Section 

4 481 of title 18, United States Code, is amended by inserting 

5 after the paragraph beginning ‘‘Whoever, with intent to de6 fraud’’ the following: 

7 ‘‘Whoever, with intent to defraud, has custody, control, 

8 or possession of any material, tool, machinery, or other 

9 equipment that can be used to make, alter, forge, or counter10 feit any obligation or other security of any foreign govern11 ment, bank, or corporation; or’’. 

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

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

14 inserting ‘‘474, or 474A’’. 

15 (d) STRENGTHENING DETERRENTS TO COUNTER16 FEITING.—Section 474A of title 18, United States Code, is 

17 amended— 

18 (1) in subsection (a), by inserting ‘‘, custody,’’ 

19 after ‘‘control’’; 

20 (2) in subsection (b)— 

21 (A) by inserting ‘‘, custody,’’ after ‘‘con22 trol’’; and 

23 (B) by striking ‘‘any essentially identical 

24 feature or device adapted to the making of any 

25 such obligation or security,’’ and inserting ‘‘any 


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1 material or other thing made after or in simili2 tude of any such deterrent,’’; and 

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

4 ‘‘(d) Whoever has in his control, custody, or possession 

5 any obligation or security of the United States or any for6 eign government from which the ink or other distinctive 

7 counterfeit deterrent has been completely or partially re8 moved, except under the authority of the Secretary of the 

9 Treasury, is guilty of a class B felony.’’. 

10 SEC. 11. DANGER PAY ALLOWANCE. 

11 Section 151 of the Foreign Relations Authorization 

12 Act, Fiscal Years 1990 and 1991 (5 U.S.C. 5928 note) is 

13 amended by striking ‘‘Drug Enforcement Administration or 

14 Federal Bureau of Investigation’’ and inserting ‘‘Drug En15 forcement Administration, the Federal Bureau of Investiga16 tion, U.S. Immigration and Customs Enforcement, U.S. 

17 Customs and Border Protection, or the United States Secret 

18 Service’’. 

19 SEC. 12. CLARIFICATION OF SECRET SERVICE AUTHORITY 

20 TO INVESTIGATE MONEY LAUNDERING. 

21 Section 3056(b)(3) of title 18, United States Code, is 

22 amended— 

23 (1) by inserting ‘‘money laundering, structured 

24 transactions,’’ after ‘‘documents or devices,’’; and 

25 (2) by striking ‘‘federally insured’’. 


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1 SEC. 13. REMITTANCES AND MONEY LAUNDERING THREAT 

2 ANALYSIS. 

3 (a) DEFINITIONS.—In this section— 

4 (1) the term ‘‘appropriate congressional commit5 tees’’ means— 

6 (A) the Committee on the Judiciary of the 

7 Senate; 

8 (B) the Committee on Homeland Security 

9 and Governmental Affairs of the Senate; 

10 (C) the Caucus on International Narcotics 

11 Control of the Senate; 

12 (D) the Committee on Banking, Housing, 

13 and Urban Affairs of the Senate; 

14 (E) the Committee on the Judiciary of the 

15 House of Representatives; 

16 (F) the Committee on Homeland Security of 

17 the House of Representatives; and 

18 (G) the Committee on Financial Services of 

19 the House of Representatives; 

20 (2) the term ‘‘drug kingpins, crime syndicates, 

21 and other persons’’, with respect to the use of remit22 tances to finance terrorism, narcotics trafficking, 

23 human trafficking, money laundering, and other 

24 forms of illicit financing, domestically or internation25 ally, means any persons who— 


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1 (A) are connected to individuals and orga2 nizations associated with financing terrorism, 

3 narcotics trafficking, human trafficking, money 

4 laundering, and other forms of illicit financing, 

5 domestically or internationally; and 

6 (B) have been designated as— 

7 (i) a significant foreign narcotics traf8 ficker under the Foreign Narcotics Kingpin 

9 Designation Act (21 U.S.C. 1901 et seq.); 

10 (ii) a significant transnational crimi11 nal organization under Executive Order 

12 13581 (76 Fed. Reg. 44757, 84 Fed. Reg. 

13 10255; relating to blocking property of 

14 transnational criminal organizations); or 

15 (iii) a Specially Designated Global 

16 Terrorist under Executive Order 13224 (66 

17 Fed. Reg. 49079, 67 Fed. Reg. 44751, 68 

18 Fed. Reg. 4075, 70 Fed. Reg. 8499; relating 

19 to blocking property and prohibiting trans20 actions with persons who commit, threaten 

21 to commit, or support terrorism); 

22 (3) the term ‘‘human trafficking’’ has the mean23 ing given the term ‘‘severe forms of trafficking in per24 sons’’ in section 103 of the Trafficking Victims Pro25 tection Act of 2000 (22 U.S.C. 7102); 


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1 (4) the term ‘‘money services business’’ has the 

2 meaning given the term in section 5330 of title 31, 

3 United States Code, as amended by section 6(b)(2); 

4 and 

5 (5) the term ‘‘money transmitting service’’ has 

6 the meaning given the term in section 5330 of title 

7 31, United States Code. 

8 (b) ANALYSIS.— 

9 (1) REQUIREMENT.—Not later than 1 year after 

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

11 the Treasury, in consultation with the Attorney Gen12 eral, the Secretary of Homeland Security, and the 

13 head of any other appropriate Federal law enforce14 ment agency, shall submit to the appropriate congres15 sional committees a threat and operational analysis 

16 of the use of remittances by drug kingpins, crime syn17 dicates, and other persons to finance terrorism, nar18 cotics trafficking, human trafficking, money laun19 dering, and other forms of illicit financing, domesti20 cally or internationally. 

21 (2) CONTENTS.—The Secretary of the Treasury 

22 shall include in the threat and operational analysis 

23 required under paragraph (1) the following: 

24 (A) Current and potential threats posed by 

25 individuals and organized groups seeking— 


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1 (i) to exploit security vulnerabilities 

2 with respect to remittances and money 

3 transmitting services; or 

4 (ii) to unlawfully use remittances to fi5 nance terrorism, narcotics trafficking, 

6 human trafficking, money laundering, or 

7 other forms of illicit financing, domestically 

8 or internationally. 

9 (B) Methods and pathways used to exploit 

10 security vulnerabilities. 

11 (C) Challenges presented by identity theft in 

12 the use of remittances and money transmitting 

13 services. 

14 (D) Improvements needed to enhance co15 operation between and among Federal, State, 

16 and local officials, including State regulators, 

17 State and local prosecutors, and other law en18 forcement officials. 

19 (E) Improvements needed to enhance co20 operation between money services businesses and 

21 Federal, State, and local officials, including 

22 State regulators, State and local prosecutors, and 

23 other law enforcement officials. 

24 (3) ANALYSIS REQUIREMENTS.—In compiling 

25 the threat and operational analysis required under 


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1 paragraph (1), the Secretary of the Treasury, in con2 sultation with the Attorney General, the Secretary of 

3 Homeland Security, and the head of any other appro4 priate Federal law enforcement agency, shall consider 

5 and examine the personnel needs, technology needs, 

6 and infrastructure needs of Federal law enforcement 

7 agencies. 

8 (c) REMITTANCES STRATEGY AND IMPLEMENTATION

9 PLAN.— 

10 (1) IN GENERAL.—Not later than 180 days after 

11 the date on which the Secretary of the Treasury sub12 mits the threat analysis under subsection (b), and 

13 every 5 years thereafter for 10 years, the Secretary of 

14 the Treasury, in consultation with the Attorney Gen15 eral, the Secretary of Homeland Security, and the 

16 head of any other appropriate Federal law enforce17 ment agency, shall submit to the appropriate congres18 sional committees a remittances strategy and imple19 mentation plan. 

20 (2) CONTENTS.—In preparing the remittances 

21 strategy and implementation plan under paragraph 

22 (1), the Secretary of the Treasury shall consider the 

23 following: 

24 (A) The remittances threat and operational 

25 analysis required under subsection (b), with an 


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1 emphasis on efforts to mitigate threats and chal2 lenges identified in the analysis. 

3 (B) Efforts to reduce the use of remittances 

4 and money transmitting services by drug king5 pins, crime syndicates, and other persons to fi6 nance terrorism, narcotics trafficking, human 

7 trafficking, money laundering, and other forms 

8 of illicit financing, domestically or internation9 ally. 

10 (C) Efforts to prevent human trafficking 

11 and the unlawful movement of illicit drugs and 

12 other contraband through the use of remittances 

13 and money transmitting services, and standards 

14 against which the effectiveness of those efforts 

15 may be determined. 

16 (D) Efforts to focus collection and informa17 tion analysis to disrupt transnational criminal 

18 organizations attempting to exploit security 

19 vulnerabilities, and standards against which the 

20 effectiveness of those efforts may be determined. 

21 (E) Personnel, technology, and infrastruc22 ture needs of Federal law enforcement agencies. 

23 (F) Efforts to prevent, detect, investigate, 

24 and mitigate money laundering activities 

25 through remittances and money transmitting 


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1 services, and standards against which the effec2 tiveness of those efforts may be determined. 

3 (G) The lawful use of remittances, the role 

4 that remittances play in countries’ economies, 

5 and how any recommended measures would im6 pose additional burdens on remittances in light 

7 of their lawful uses. 

8 SEC. 14. RULE OF CONSTRUCTION. 

9 Nothing in this Act, or any amendment made by this 

10 Act, shall be construed to apply to the authorized law en11 forcement, protective, or intelligence activities of the United 

12 States or of an intelligence agency of the United States. 


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Calendar No. 160 

116TH CONGRESS 

1ST SESSION S. 1883 

A BILL 

To improve the prohibitions on money laundering, 

and for other purposes. 

JULY 23, 2019 

Reported with an amendment 


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