II 

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 

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’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. 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. 


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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. 

1 SEC. 2. TRANSPORTATION OR TRANSHIPMENT OF BLANK 

2 CHECKS IN BEARER FORM. 

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

4 amended by adding at the end the following: 

5 ‘‘(e) MONETARY INSTRUMENTS WITH AMOUNT LEFT

6 BLANK.—For purposes of this section, a monetary instru7 ment in bearer form that has the amount left blank, such 

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

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

10 instrument was drawn on an account that contained, or 

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

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

13 ‘‘(2) the instrument was negotiated or was in14 tended to be negotiated.’’. 


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1 SEC. 3. BULK CASH SMUGGLING. 

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

3 amended— 

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

5 inserting ‘‘10 years’’; 

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

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

8 (3) by inserting after paragraph (1) the fol9 lowing: 

10 ‘‘(2) FINE.— 

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

12 section shall be fined under title 18. 

13 ‘‘(B) ENHANCED FINE FOR AGGRAVATED

14 CASES.—Whoever violates this section while vio15 lating another law of the United States, other 

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

17 a part of a pattern of any unlawful activity, in18 cluding a violation of section 5316 or 5324(c) 

19 of this title, shall be fined double the amount 

20 provided in subsection (b)(3) or (c)(3) of sec21 tion 3571 of title 18.’’; and 

22 (4) in paragraph (5), as redesignated, by strik23 ing ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. 


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1 SEC. 4. SECTION 1957 VIOLATIONS INVOLVING COMMIN2 GLED FUNDS AND AGGREGATED TRANS3 ACTIONS. 

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

5 amended by adding at the end the following: 

6 ‘‘(g) In a prosecution for an offense under this sec7 tion, the Government may satisfy the $10,000 monetary 

8 transaction value requirement under subsection (a) by 

9 showing that— 

10 ‘‘(1) the monetary transaction involved the 

11 transfer, withdrawal, encumbrance, or other disposi12 tion of more than $10,000 from an account in which 

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

14 activity was commingled with other funds; or 

15 ‘‘(2) the defendant conducted a series of mone16 tary transactions in amounts of not more than 

17 $10,000 that— 

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

19 and 

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

21 demonstrated by factors such as— 

22 ‘‘(i) the time period between the 

23 transactions; 

24 ‘‘(ii) the identity of the parties in25 volved; 


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

2 transactions; and 

3 ‘‘(iv) the manner in which the trans4 actions were conducted.’’. 

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

6 CONDUCT. 

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

8 amended— 

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

10 1957’’ and inserting ‘‘, section 1957, or section 

11 1960’’; and 

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

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

14 this section that are part of the same scheme or con15 tinuing course of conduct may be charged, at the election 

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

17 information.’’. 

18 SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES. 

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

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

21 (b) and inserting the following: 

22 ‘‘(a) OFFENSE.—Whoever knowingly conducts, con23 trols, manages, supervises, directs, or owns all or part of 

24 a covered money services business that— 


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

2 in a State where such operation is punishable as a 

3 misdemeanor or a felony under State law, whether 

4 or not the person knows that the operation is re5 quired to be licensed or that the operation is so pun6 ishable; 

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

8 business registration requirements under section 

9 5330 of title 31, or regulations prescribed under 

10 that section, whether or not the person knows that 

11 the operation is required to comply with those reg12 istration requirements; or 

13 ‘‘(3) otherwise engages in a transaction involv14 ing funds that the person knows have been derived 

15 from a criminal offense or are intended to be used 

16 to promote or support unlawful activity, 

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

18 ‘‘(b) CRIMINAL PENALTY.—Any person who vio19 lates— 

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

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

22 or both; and 

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

24 managing, supervising, directing, or owning all or 

25 part of a covered money services business that enVerDate Sep 11 2014 04:24 Jun 20, 2019 Jkt 034408 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1883.IS S1883

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1 gaged in activity as a covered money services busi2 ness involving more than $1,000,000 during a 12- 

3 month period, or by engaging in a transaction or 

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

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

6 provided in subsection (b)(3) or (c)(3) (as applica7 ble) of section 3571, imprisoned for not more than 

8 10 years, or both. 

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

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

11 means a money services business that— 

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

13 ‘‘(B) affects interstate or foreign commerce 

14 in any manner or degree; 

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

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

17 section 5330 of title 31 and any regulations 

18 prescribed under that section; and 

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

20 transfer, transportation, or exchange of cur21 rency, funds, or value that substitutes for cur22 rency by any and all means, even when not per23 formed for profit; and 

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

25 United States, the District of Columbia, the NorthVerDate Sep 11 2014 04:24 Jun 20, 2019 Jkt 034408 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1883.IS S1883

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1 ern Mariana Islands, and any commonwealth, terri2 tory, or possession of the United States.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

5 CODE.— 

6 (A) SECTION HEADING.—Section 1960 of 

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

8 section heading— 

9 (i) by striking ‘‘unlicensed’’ and 

10 inserting ‘‘illegal’’; and 

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

12 inserting ‘‘services’’. 

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

14 sections for chapter 95 of title 18, United 

15 States Code, is amended by striking the item 

16 relating to section 1960 and inserting the fol17 lowing: 

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

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

19 CODE.— 

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

21 United States Code, is amended— 

22 (i) in the section heading, by striking 

23 ‘‘transmitting’’ and inserting ‘‘serv24 ices’’; 

25 (ii) in subsection (c)— 


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1 (I) in the subsection heading, by 

2 striking ‘‘TRANSMITTING’’ and insert3 ing ‘‘SERVICES’’; 

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

5 paragraph heading, by striking 

6 ‘‘TRANSMITTING’’ and inserting 

7 ‘‘SERVICES’’; and 

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

9 paragraph heading, by striking 

10 ‘‘TRANSMITTING’’ and inserting 

11 ‘‘SERVICES’’; and 

12 (iii) in subsection (d)(1), in the para13 graph heading, by striking ‘‘TRANSMIT14 TING’’ and inserting ‘‘SERVICES’’. 

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

16 United States Code, is amended— 

17 (i) by striking ‘‘money transmitting 

18 business’’ each place that term appears 

19 and inserting ‘‘money services business’’; 

20 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 

25 sections for subchapter II of chapter 53 of title 


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1 31, United States Code, is amended by striking 

2 the item relating to section 5330 and inserting 

3 the following: 

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

4 SEC. 7. CONCEALMENT MONEY LAUNDERING. 

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

6 amended— 

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

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

9 and inserting the following: 

10 ‘‘(B) knowing that the transaction— 

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

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

13 ownership, or control of the proceeds of some 

14 form of unlawful activity; or 

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

16 transaction reporting requirement under State 

17 or Federal law,’’; and 

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

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

20 and inserting the following: 

21 ‘‘(B) knowing that— 

22 ‘‘(i) the monetary instrument or funds in23 volved in the transportation, transmission, or 

24 transfer represent the proceeds of some form of 

25 unlawful activity; and 


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

2 transfer— 

3 ‘‘(I) conceals or disguises, or is in4 tended to conceal or disguise, the nature, 

5 source, location, ownership, or control of 

6 the proceeds of some form of unlawful ac7 tivity; or 

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

9 transaction reporting requirement under 

10 State or Federal law,’’. 

11 SEC. 8. FREEZING BANK ACCOUNTS OF PERSONS AR12 RESTED FOR OFFENSES INVOLVING THE 

13 MOVEMENT OF MONEY ACROSS INTER14 NATIONAL BORDERS. 

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

16 amended by adding at the end the following: 

17 ‘‘(5)(A) If a person is arrested or charged in connec18 tion with an offense described in subparagraph (C) involv19 ing the movement of funds into or out of the United 

20 States, the Attorney General may apply to any Federal 

21 judge or magistrate judge in the district in which the ar22 rest is made or the charges are filed for an ex parte order 

23 restraining any account held by the person arrested or 

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

25 day time period may be extended for good cause shown 


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1 at a hearing conducted in the manner provided in Rule 

2 43(c) of the Federal Rules of Civil Procedure. The court 

3 may receive and consider evidence and information sub4 mitted by the Government that would be inadmissible 

5 under the Federal Rules of Evidence. 

6 ‘‘(B) The application for the restraining order re7 ferred to in subparagraph (A) shall— 

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

9 has been arrested or charged; 

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

11 accounts to be restrained; and 

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

13 to prevent the removal of the funds in the account 

14 by the person arrested or charged, or by other per15 sons associated with that person, during the time 

16 needed by the Government to conduct such inves17 tigation as may be necessary to establish whether 

18 there is probable cause to believe that the funds in 

19 the accounts are subject to forfeiture in connection 

20 with the commission of any criminal offense. 

21 ‘‘(C) A restraining order may be issued under sub22 paragraph (A) if a person is arrested or charged with any 

23 offense for which forfeiture is authorized under— 

24 ‘‘(i) this title; 

25 ‘‘(ii) title 31; or 


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

2 801 et seq.). 

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

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

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

6 and (2) of section 5318A(e) of title 31) at any fi7 nancial institution; and 

8 ‘‘(ii) the term ‘account held by the person ar9 rested or charged’ includes an account held in the 

10 name of that person, and any account over which 

11 that person has effective control as a signatory or 

12 otherwise. 

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

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

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

16 may be executed in any district in which the subject ac17 count is found, or transmitted to the central authority of 

18 any foreign State for service in accordance with any treaty 

19 or other international agreement.’’. 

20 SEC. 9. PROHIBITING MONEY LAUNDERING THROUGH 

21 HAWALAS, OTHER INFORMAL VALUE TRANS22 FER SYSTEMS, AND CLOSELY RELATED 

23 TRANSACTIONS. 

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

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


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

2 inserting ‘‘For purposes of this paragraph and section 

3 1957, a financial transaction or a monetary transaction, 

4 as applicable,’’. 

5 SEC. 10. TECHNICAL AMENDMENT TO RESTORE WIRETAP 

6 AUTHORITY FOR CERTAIN MONEY LAUN7 DERING AND COUNTERFEITING OFFENSES. 

8 (a) CURRENCY REPORTING OFFENSES.—Section 

9 2516(1)(g) of title 18, United States Code, is amended 

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

11 Code (relating to structuring transactions to evade report12 ing requirement prohibited)’’ and inserting ‘‘or section 

13 5324, 5331, or 5332 of that title (relating to evasion of 

14 Federal transaction reporting requirements)’’. 

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

16 title 18, United States Code, is amended by inserting ‘‘sec17 tion 1960 (relating to illegal money services businesses),’’ 

18 before ‘‘section 659’’. 

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

20 18, United States Code, is amended by striking ‘‘or 473’’ 

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

22 SEC. 11. MAKING THE INTERNATIONAL MONEY LAUN23 DERING STATUTE APPLY TO TAX EVASION. 

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

25 Code, is amended— 


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

2 promote’’; and 

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

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

5 constituting a violation of section 7201 or 7206 

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

7 SEC. 12. CONDUCT IN AID OF COUNTERFEITING. 

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

9 States Code, is amended by inserting after the paragraph 

10 beginning ‘‘Whoever has in his control, custody, or posses11 sion any plate’’ the following: 

12 ‘‘Whoever, with intent to defraud, has custody, con13 trol, or possession of any material, tool, machinery, or 

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

15 or counterfeit any obligation or other security of the 

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

17 except under the authority of the Secretary of the Treas18 ury; or’’. 

19 (b) FOREIGN OBLIGATIONS AND SECURITIES.—Sec20 tion 481 of title 18, United States Code, is amended by 

21 inserting after the paragraph beginning ‘‘Whoever, with 

22 intent to defraud’’ the following: 

23 ‘‘Whoever, with intent to defraud, has custody, con24 trol, or possession of any material, tool, machinery, or 

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


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1 or counterfeit any obligation or other security of any for2 eign government, bank, or corporation; or’’. 

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

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

5 inserting ‘‘474, or 474A’’. 

6 (d) STRENGTHENING DETERRENTS TO COUNTER7 FEITING.—Section 474A of title 18, United States Code, 

8 is amended— 

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

10 after ‘‘control’’; 

11 (2) in subsection (b)— 

12 (A) by inserting ‘‘, custody,’’ after ‘‘con13 trol’’; and 

14 (B) by striking ‘‘any essentially identical 

15 feature or device adapted to the making of any 

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

17 material or other thing made after or in simili18 tude of any such deterrent,’’; and 

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

20 ‘‘(d) Whoever has in his control, custody, or posses21 sion any obligation or security of the United States or any 

22 foreign government from which the ink or other distinctive 

23 counterfeit deterrent has been completely or partially re24 moved, except under the authority of the Secretary of the 

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


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1 SEC. 13. ADMINISTRATIVE SUBPOENAS FOR MONEY LAUN2 DERING CASES. 

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

4 amended— 

5 (1) in paragraph (1)(A)— 

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

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

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

9 (C) in clause (iii)— 

10 (i) by striking ‘‘section 3056’’ and in11 serting ‘‘section 3056(a)’’; and 

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

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

14 (D) by inserting after clause (iii) the fol15 lowing: 

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

17 1957, or 1960 of this title, or section 

18 5313, 5316, 5324, 5331, or 5332 of title 

19 31, or an offense against a foreign nation 

20 constituting specified unlawful activity 

21 under section 1956 of this title, or a crimi22 nal or civil forfeiture based upon an of23 fense enumerated in this subparagraph or 

24 for which enforcement could be brought 

25 under section 2467 of title 28, the Attor26 ney General, the Secretary of Homeland 


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1 Security, or the Secretary of the Treas2 ury,’’; and 

3 (2) in paragraph (6)(B)— 

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

5 end; 

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

7 and inserting ‘‘; or’’; and 

8 (C) by adding at the end following: 

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

10 damage, encumbrance, or other unavailability of 

11 property that may become subject to forfeiture or an 

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

13 SEC. 14. OBTAINING FOREIGN BANK RECORDS FROM 

14 BANKS WITH UNITED STATES CORRESPON15 DENT ACCOUNTS. 

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

17 5318(k) of title 31, United States Code, is amended— 

18 (1) in paragraph (1)— 

19 (A) by redesignating subparagraph (B) as 

20 subparagraph (C); and 

21 (B) by inserting after subparagraph (A) 

22 the following: 

23 ‘‘(B) COVERED FINANCIAL INSTITUTION.— 

24 The term ‘covered financial institution’ means 


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

2 and 

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

4 following: 

5 ‘‘(3) FOREIGN BANK RECORDS.— 

6 ‘‘(A) SUBPOENA OF RECORDS.— 

7 ‘‘(i) IN GENERAL.—Notwithstanding 

8 subsection (b), the Secretary of the Treas9 ury or the Attorney General may issue a 

10 subpoena to any foreign bank that main11 tains a correspondent account in the 

12 United States and request any records re13 lating to the correspondent account or any 

14 account at the foreign bank, including 

15 records maintained outside of the United 

16 States, that are the subject of any— 

17 ‘‘(I) investigation of a violation of 

18 a criminal law of the United States; 

19 or 

20 ‘‘(II) civil forfeiture action. 

21 ‘‘(ii) PRODUCTION OF RECORDS.—The 

22 foreign bank on which a subpoena de23 scribed in clause (i) is served shall produce 

24 all requested records and authenticate all 


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1 requested records with testimony in the 

2 manner described in— 

3 ‘‘(I) rule 902(12) of the Federal 

4 Rules of Evidence; or 

5 ‘‘(II) section 3505 of title 18. 

6 ‘‘(iii) ISSUANCE AND SERVICE OF SUB7 POENA.—A subpoena described in clause 

8 (i)— 

9 ‘‘(I) shall designate— 

10 ‘‘(aa) a return date; and 

11 ‘‘(bb) the judicial district in 

12 which the related investigation is 

13 proceeding; and 

14 ‘‘(II) may be served— 

15 ‘‘(aa) in person; 

16 ‘‘(bb) by mail or fax in the 

17 United States if the foreign bank 

18 has a representative in the 

19 United States; or 

20 ‘‘(cc) in a foreign country 

21 under any mutual legal assist22 ance treaty, multilateral agree23 ment, or other request for inter24 national legal or law enforcement 

25 assistance. 


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1 ‘‘(iv) RELIEF FROM SUBPOENA.— 

2 ‘‘(I) IN GENERAL.—At any time 

3 before the return date of the subpoena 

4 described in clause (i), the foreign 

5 bank on which the subpoena is served 

6 may petition the district court of the 

7 United States for the judicial district 

8 in which the related investigation is 

9 proceeding, as designated in the sub10 poena, to modify or quash— 

11 ‘‘(aa) the subpoena; or 

12 ‘‘(bb) the prohibition against 

13 disclosure described in subpara14 graph (C). 

15 ‘‘(II) CONFLICT WITH FOREIGN

16 SECRECY OR CONFIDENTIALITY.—An 

17 assertion that compliance with the 

18 subpoena would conflict with a provi19 sion of foreign secrecy or confiden20 tiality law shall not be a basis for 

21 quashing or modifying the subpoena. 

22 ‘‘(B) ACCEPTANCE OF SERVICE.— 

23 ‘‘(i) MAINTAINING RECORDS IN THE

24 UNITED STATES.—Any covered financial 

25 institution that maintains a correspondent 


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1 account in the United States for a foreign 

2 bank shall maintain records in the United 

3 States identifying— 

4 ‘‘(I) the owners of such foreign 

5 bank; and 

6 ‘‘(II) the name and address of a 

7 person who— 

8 ‘‘(aa) resides in the United 

9 States; and 

10 ‘‘(bb) is authorized to accept 

11 service of legal process for 

12 records covered under this sub13 section. 

14 ‘‘(ii) LAW ENFORCEMENT REQUEST.— 

15 Upon receipt of a written request from a 

16 Federal law enforcement officer for infor17 mation required to be maintained under 

18 this paragraph, a covered financial institu19 tion shall provide the information to the 

20 requesting officer not later than 7 days 

21 after receipt of the request. 

22 ‘‘(C) NONDISCLOSURE OF SUBPOENA.— 

23 ‘‘(i) IN GENERAL.—No officer, direc24 tor, partner, employee, or shareholder of, 

25 or agent or attorney for, a foreign bank on 


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1 which a subpoena is served under this 

2 paragraph shall, directly or indirectly, no3 tify any account holder involved or any 

4 person named in the subpoena issued 

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

6 such an institution about the existence or 

7 contents of such subpoena. 

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

9 the Attorney General for a violation of this 

10 subparagraph, a foreign bank on which a 

11 subpoena is served under this paragraph 

12 shall be liable to the United States Govern13 ment for a civil penalty in an amount 

14 equal to— 

15 ‘‘(I) double the amount of the 

16 suspected criminal proceeds sent 

17 through the correspondent account of 

18 the foreign bank in the related inves19 tigation; or 

20 ‘‘(II) if no such proceeds can be 

21 identified, $250,000. 

22 ‘‘(D) ENFORCEMENT.— 

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

24 fails to obey a subpoena issued under sub25 paragraph (A)(i), the Attorney General 


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1 may invoke the aid of the district court of 

2 the United States for the judicial district 

3 in which the investigation or related pro4 ceeding is occurring to compel compliance 

5 with the subpoena. 

6 ‘‘(ii) COURT ORDERS AND CONTEMPT

7 OF COURT.—The court may— 

8 ‘‘(I) issue an order requiring the 

9 foreign bank to appear before the Sec10 retary of the Treasury or the Attorney 

11 General to produce— 

12 ‘‘(aa) certified records, in 

13 accordance with— 

14 ‘‘(AA) rule 902(12) of 

15 the Federal Rules of Evi16 dence; or 

17 ‘‘(BB) section 3505 of 

18 title 18; or 

19 ‘‘(bb) testimony regarding 

20 the production of such records; 

21 and 

22 ‘‘(II) punish any failure to obey 

23 an order issued under subclause (I) as 

24 contempt of court. 


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1 ‘‘(iii) SERVICE OF PROCESS.—All 

2 process in a case under this subparagraph 

3 shall be served on the foreign bank in the 

4 same manner as described in subparagraph 

5 (A)(iii). 

6 ‘‘(E) TERMINATION OF CORRESPONDENT

7 RELATIONSHIP.— 

8 ‘‘(i) TERMINATION UPON RECEIPT OF

9 NOTICE.—A covered financial institution 

10 shall terminate any correspondent relation11 ship with a foreign bank not later than 10 

12 business days after the date on which the 

13 covered financial institution receives writ14 ten notice from the Secretary of the Treas15 ury or the Attorney General if, after con16 sultation with the other, the Secretary of 

17 the Treasury or Attorney General, as ap18 plicable, determines that the foreign bank 

19 has failed— 

20 ‘‘(I) to comply with a subpoena 

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

22 ‘‘(II) to prevail in proceedings be23 fore— 

24 ‘‘(aa) the appropriate dis25 trict court of the United States 


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1 after challenging such a sub2 poena under subparagraph 

3 (A)(iv)(I); or 

4 ‘‘(bb) a court of appeals of 

5 the United States after appealing 

6 a decision of a district court of 

7 the United States under item 

8 (aa). 

9 ‘‘(ii) LIMITATION ON LIABILITY.—A 

10 covered financial institution shall not be 

11 liable to any person in any court or arbi12 tration proceeding for terminating a cor13 respondent relationship under this sub14 paragraph or complying with a nondisclo15 sure order under subparagraph (C). 

16 ‘‘(iii) FAILURE TO TERMINATE RELA17 TIONSHIP.—A covered financial institution 

18 that fails to terminate a correspondent re19 lationship under clause (i) shall be liable 

20 for a civil penalty in an amount that is not 

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

22 covered financial institution fails to termi23 nate the relationship. 

24 ‘‘(F) ENFORCEMENT OF CIVIL PEN25 ALTIES.—Upon application by the United 


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1 States, any funds held in the correspondent ac2 count of a foreign bank that is maintained in 

3 the United States with a covered financial insti4 tution may be seized by the United States to 

5 satisfy any civil penalties that are imposed— 

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

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

8 subparagraph (D).’’. 

9 (b) FAIR CREDIT REPORTING ACT AMENDMENT.— 

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

11 U.S.C. 1681b(a)(1)) is amended— 

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

13 (2) by inserting ‘‘, or a subpoena issued in ac14 cordance with section 5318 of title 31, United States 

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

16 Code’’ after ‘‘grand jury’’. 

17 (c) OBSTRUCTION OF JUSTICE.—Section 

18 1510(b)(3)(B) of title 18, United States Code, is amend19 ed— 

20 (1) in the matter preceding clause (i), by strik21 ing ‘‘or a Department of Justice subpoena (issued 

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

23 subpoena issued under section 3486 of this title, or 

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1 tion 3512 of this title, section 5318 of title 31, or 

2 section 1782 of title 28,’’; and 

3 (2) in clause (i) by inserting ‘‘, 1960, or an of4 fense against a foreign nation constituting specified 

5 unlawful activity under section 1956, or a foreign of6 fense for which enforcement of a foreign forfeiture 

7 judgment could be brought under section 2467 of 

8 title 28’’ after ‘‘1957’’. 

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

10 1120(b)(1)(A) of the Right to Financial Privacy Act of 

11 1978 (12 U.S.C. 3420(b)(1)(A)) is amended— 

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

13 1957, or 1960’’; and 

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

15 5322, 5324, 5331, and 5332’’. 

16 SEC. 15. DANGER PAY ALLOWANCE. 

17 Section 151 of the Foreign Relations Authorization 

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

19 is amended by striking ‘‘Drug Enforcement Administra20 tion or Federal Bureau of Investigation’’ and inserting 

21 ‘‘Drug Enforcement Administration, the Federal Bureau 

22 of Investigation, U.S. Immigration and Customs Enforce23 ment, U.S. Customs and Border Protection, or the United 

24 States Secret Service’’. 


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1 SEC. 16. CLARIFICATION OF SECRET SERVICE AUTHORITY 

2 TO INVESTIGATE MONEY LAUNDERING. 

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

4 is amended— 

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

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

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

8 SEC. 17. PROHIBITION ON CONCEALMENT OF OWNERSHIP 

9 OF ACCOUNT. 

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

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

12 end the following: 

13 ‘‘§ 5333. Prohibition on concealment of ownership of 

14 account 

15 ‘‘(a) IN GENERAL.—No person shall knowingly con16 ceal, falsify, or misrepresent, or attempt to conceal, falsify, 

17 or misrepresent, from or to a financial institution, a mate18 rial fact concerning the ownership or control of an account 

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

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

21 under subsection (a), or a conspiracy to commit such of22 fense, shall be imprisoned for not more than 10 years, 

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

24 ‘‘(c) FORFEITURE.— 

25 ‘‘(1) CRIMINAL FORFEITURE.— 


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1 ‘‘(A) IN GENERAL.—The court, in impos2 ing penalties under subsection (b), shall order 

3 that the defendant forfeit to the United States 

4 any property involved in the offense, or a con5 spiracy to commit such offense, and any prop6 erty traceable thereto. 

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

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

9 shall govern the seizure, restraint, and for10 feiture of property under this paragraph. 

11 ‘‘(2) CIVIL FORFEITURE.— 

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

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

14 to commit such violation, and any property 

15 traceable thereto may be seized and forfeited to 

16 the United States. 

17 ‘‘(B) PROCEDURE.—Seizures and forfeit18 ures under this paragraph shall be governed by 

19 the provisions of chapter 46 of title 18 relating 

20 to civil forfeitures, except that such duties, 

21 under customs laws described in section 981(d) 

22 of title 18, given to the Secretary of the Treas23 ury shall be performed by such officers, agents, 

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1 retary of Homeland Security or the Attorney 

2 General. 

3 ‘‘(3) TREATMENT OF CERTAIN PROPERTY AS

4 INVOLVED IN THE OFFENSE.—In this subsection, 

5 the term ‘property involved in’ includes any assets 

6 credited to, attempted to be credited to, or contained 

7 in the account. 

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

9 term ‘financial institution’ means any entity defined under 

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

11 this title, that is required to— 

12 ‘‘(1) implement a customer identification pro13 gram under this title, or the regulations promul14 gated under this title; or 

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

16 title, or the regulations promulgated under this 

17 title.’’. 

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

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

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

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

21 SEC. 18. PROHIBITION ON CONCEALMENT OF THE SOURCE 

22 OF ASSETS IN MONETARY TRANSACTIONS. 

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

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

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


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1 ‘‘§ 5334. Prohibition on concealment of the source of 

2 assets in monetary transactions 

3 ‘‘(a) IN GENERAL.—No person shall knowingly con4 ceal, falsify, or misrepresent, or attempt to conceal, falsify, 

5 or misrepresent, from or to a financial institution, a mate6 rial fact concerning the ownership or control of assets in7 volved in a monetary transaction if— 

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

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

10 immediate family member or close associate of a 

11 senior foreign political figure, as set forth in this 

12 title or the regulations promulgated under this title; 

13 and 

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

15 in one or more such transactions is not less than 

16 $1,000,000. 

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

18 conceal, falsify, or misrepresent, or attempt to conceal, fal19 sify, or misrepresent, from or to a financial institution, 

20 a material fact concerning the source of funds in a mone21 tary transaction that— 

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

23 money laundering concern under section 5318A or 

24 the regulations promulgated under this title; and 


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•S 1883 IS

1 ‘‘(2) violates the prohibitions or conditions pre2 scribed under section 5318A(b)(5) or the regulations 

3 promulgated under this title. 

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

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

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

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

8 ‘‘(d) FORFEITURE.— 

9 ‘‘(1) CRIMINAL FORFEITURE.— 

10 ‘‘(A) IN GENERAL.—The court, in impos11 ing sentence under subsection (c), shall order 

12 that the defendant forfeit to the United States 

13 any property involved in the offense and any 

14 property traceable thereto. 

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

16 and forfeiture of property under this paragraph 

17 shall be governed by section 413 of the Con18 trolled Substances Act (21 U.S.C. 853). 

19 ‘‘(2) CIVIL FORFEITURE.— 

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

21 in a violation of subsection (a) or (b), or a con22 spiracy to commit such violation, and any prop23 erty traceable thereto may be seized and for24 feited to the United States. 


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•S 1883 IS

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 the customs laws described in section 

6 981(d) of title 18, given to the Secretary of the 

7 Treasury shall be performed by such officers, 

8 agents, and other persons as may be designated 

9 for that purpose by the Secretary of Homeland 

10 Security or the Attorney General. 

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

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

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

14 title; and 

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

16 deposit, withdrawal, transfer, or exchange, in or af17 fecting interstate or foreign commerce, of funds or 

18 a monetary instrument (as defined in section 

19 1956(c)(5) of title 18) by, through, or to a financial 

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

21 18)— 

22 ‘‘(A) including any transaction that would 

23 be a financial transaction under section 

24 1956(c)(4)(B) of title 18; and 


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1 ‘‘(B) not including any transaction nec2 essary to preserve a person’s right to represen3 tation as guaranteed by the Sixth Amendment 

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

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

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

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

8 by adding at the end the following: 

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

9 SEC. 19. RULE OF CONSTRUCTION. 

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

11 Act, shall be construed to apply to the authorized law en12 forcement, protective, or intelligence activities of the 

13 United States or of an intelligence agency of the United 

14 States. 

Æ 


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