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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3697 Introduced in Senate (IS)]

<DOC>

117th CONGRESS
  2d Session
                                S. 3697

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 17, 2022

 Mr. Grassley (for himself, Mr. Whitehouse, Mr. Cornyn, Ms. Klobuchar, 
and Mrs. Feinstein) introduced the following bill; which was read twice 
             and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Combating Money 
Laundering, Terrorist Financing, and Counterfeiting Act of 2022''.
    (b) Table of Contents.--The table of contents for 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.

SEC. 2. TRANSPORTATION OR TRANSHIPMENT OF BLANK CHECKS IN BEARER FORM.

    Section 5316 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(e) Monetary Instruments With Amount Left Blank.--For purposes of 
this section, a monetary instrument in bearer form that has the amount 
left blank, such that the amount could be filled in by the bearer, and 
that is possessed by the bearer for the purpose of avoiding a reporting 
requirement, shall be considered to have a value of more than $10,000 
if the instrument was drawn on an account that contained, or was 
intended to contain more than $10,000 at the time--
            ``(1) the instrument was transported; or
            ``(2) the instrument was negotiated or was intended to be 
        negotiated.''.

SEC. 3. BULK CASH SMUGGLING.

    Section 5332(b) of title 31, United States Code, is amended--
            (1) in paragraph (1), by striking ``5 years'' and inserting 
        ``10 years'';
            (2) by redesignating paragraphs (2), (3), and (4), as 
        paragraphs (3), (4), and (5), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Fine.--
                    ``(A) In general.--Whoever violates this section 
                shall be fined under title 18.
                    ``(B) Enhanced fine for aggravated cases.--Whoever 
                violates this section while violating another law of 
                the United States, other than section 5316 or 5324(c) 
                of this title, or as a part of a pattern of any 
                unlawful activity, including a violation of section 
                5316 or 5324(c) of this title, shall be fined double 
                the amount provided in subsection (b)(3) or (c)(3) (as 
                applicable) of section 3571 of title 18.''; and
            (4) in paragraph (5), as redesignated, by striking 
        ``paragraph (2)'' and inserting ``paragraph (3)''.

SEC. 4. SECTION 1957 VIOLATIONS INVOLVING COMMINGLED FUNDS AND 
              AGGREGATED TRANSACTIONS.

    Section 1957 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(g) In a prosecution for an offense under this section, the 
Government may satisfy the $10,000 monetary transaction value 
requirement under subsection (a) by showing that--
            ``(1) the monetary transaction involved the transfer, 
        withdrawal, encumbrance, or other disposition of more than 
        $10,000 from an account in which more than $10,000 in proceeds 
        of specified unlawful activity was commingled with other funds; 
        or
            ``(2) the defendant conducted a series of monetary 
        transactions in amounts of not more than $10,000 that--
                    ``(A) exceeded $10,000 in the aggregate; and
                    ``(B) were closely related to each other as 
                demonstrated by factors such as--
                            ``(i) the time period between the 
                        transactions;
                            ``(ii) the identity of the parties 
                        involved;
                            ``(iii) the nature or purpose of the 
                        transactions; and
                            ``(iv) the manner in which the transactions 
                        were conducted.''.

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

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

SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES.

    (a) In General.--Section 1960 of title 18, United States Code, is 
amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) Offense.--Whoever knowingly conducts, controls, manages, 
supervises, directs, or owns all or part of a covered money services 
business that--
            ``(1) is operated without an appropriate license in a State 
        where such operation is punishable as a misdemeanor or a felony 
        under State law, whether or not the person knows that the 
        operation is required to be licensed or that the operation is 
        so punishable;
            ``(2) fails to comply with the money services business 
        registration requirements under section 5330 of title 31, or 
        regulations prescribed under that section, whether or not the 
        person knows that the operation is required to comply with 
        those registration requirements; or
            ``(3) otherwise engages in a transaction involving funds 
        that the person knows have been derived from a criminal offense 
        or are intended to be used to promote or support unlawful 
        activity,
shall be punished as provided in subsection (b).
    ``(b) Criminal Penalty.--Any person who violates--
            ``(1) subsection (a) shall be fined in accordance with this 
        title, imprisoned for not more than 5 years, or both; and
            ``(2) subsection (a) by conducting, controlling, managing, 
        supervising, directing, or owning all or part of a covered 
        money services business that engaged in activity as a covered 
        money services business involving more than $1,000,000 during a 
        12-month period, or by engaging in a transaction or 
        transactions involving more than $1,000,000 during a 12-month 
        period, shall be fined double the amount provided in subsection 
        (b)(3) or (c)(3) (as applicable) of section 3571, imprisoned 
        for not more than 10 years, or both.
    ``(c) Definitions.--In this section--
            ``(1) the term `covered money services business' means a 
        money services business that--
                    ``(A) operates on behalf of the public; and
                    ``(B) affects interstate or foreign commerce in any 
                manner or degree;
            ``(2) the term `money services business'--
                    ``(A) has the meaning given the term in section 
                5330 of title 31 and any regulations prescribed under 
                that section; and
                    ``(B) includes a person that engages in the 
                transfer, transportation, or exchange of currency, 
                funds, or value that substitutes for currency by any 
                and all means, even when not performed for profit; and
            ``(3) the term `State' means any State of the United 
        States, the District of Columbia, the Northern Mariana Islands, 
        and any commonwealth, territory, or possession of the United 
        States.''.
    (b) Technical and Conforming Amendments.--
            (1) Section 1960 of title 18, united states code.--
                    (A) Section heading.--Section 1960 of title 18, 
                United States Code, is amended in the section heading--
                            (i) by striking ``unlicensed'' and 
                        inserting ``illegal''; and
                            (ii) by striking ``transmitting'' and 
                        inserting ``services''.
                    (B) Table of sections.--The table of sections for 
                chapter 95 of title 18, United States Code, is amended 
                by striking the item relating to section 1960 and 
                inserting the following:

``1960. Prohibition of illegal money services businesses.''.
            (2) Section 5330 of title 31, united states code.--
                    (A) Headings.--Section 5330 of title 31, United 
                States Code, is amended--
                            (i) in the section heading, by striking 
                        ``transmitting'' and inserting ``services'';
                            (ii) in subsection (c)--
                                    (I) in the subsection heading, by 
                                striking ``Transmitting'' and inserting 
                                ``Services'';
                                    (II) in paragraph (1), in the 
                                paragraph heading, by striking 
                                ``transmitting'' and inserting 
                                ``services''; and
                                    (III) in paragraph (2), in the 
                                paragraph heading, by striking 
                                ``transmitting'' and inserting 
                                ``services''; and
                            (iii) in subsection (d)(1), in the 
                        paragraph heading, by striking ``transmitting'' 
                        and inserting ``services''.
                    (B) Text.--Section 5330 of title 31, United States 
                Code, is amended--
                            (i) by striking ``money transmitting 
                        business'' each place that term appears and 
                        inserting ``money services business''; and
                            (ii) in subsection (a)(3), by striking 
                        ``money transmitting businesses'' and inserting 
                        ``a money services business''.
                    (C) Table of sections.--The table of sections for 
                subchapter II of chapter 53 of title 31, United States 
                Code, is amended by striking the item relating to 
                section 5330 and inserting the following:

``5330. Registration of money services businesses.''.

SEC. 7. PROHIBITING MONEY LAUNDERING THROUGH HAWALAS, OTHER INFORMAL 
              VALUE TRANSFER SYSTEMS, AND CLOSELY RELATED TRANSACTIONS.

    The matter following section 1956(a)(1)(B)(ii) of title 18, United 
States Code, is amended by striking ``For purposes of this paragraph, a 
financial transaction'' and inserting ``For purposes of this paragraph 
and section 1957, a financial transaction or a monetary transaction, as 
applicable,''.

SEC. 8. TECHNICAL AMENDMENT TO RESTORE WIRETAP AUTHORITY FOR CERTAIN 
              MONEY LAUNDERING AND COUNTERFEITING OFFENSES.

    (a) Currency Reporting Offenses.--Section 2516(1)(g) of title 18, 
United States Code, is amended by striking ``or section 5324 of title 
31, United States Code (relating to structuring transactions to evade 
reporting requirement prohibited)'' and inserting ``or section 5324 or 
5332 of that title (relating to evasion of Federal transaction 
reporting requirements)''.
    (b) Money Laundering.--Section 2516(1)(c) of title 18, United 
States Code, is amended by inserting ``section 1960 (relating to 
illegal money services businesses),'' before ``section 659''.
    (c) Counterfeiting.--Section 2516(1)(d) of title 18, United States 
Code, is amended by striking ``or 473'' and inserting ``473, 474, or 
474A''.

SEC. 9. MAKING THE INTERNATIONAL MONEY LAUNDERING STATUTE APPLY TO TAX 
              EVASION.

    Section 1956(a)(2)(A) of title 18, United States Code, is amended--
            (1) by inserting ``(i)'' before ``with the intent to 
        promote''; and
            (2) by adding at the end the following:
                    ``(ii) with the intent to engage in conduct 
                constituting a violation of section 7201 or 7206 of the 
                Internal Revenue Code of 1986; or''.

SEC. 10. CONDUCT IN AID OF COUNTERFEITING.

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

SEC. 11. DANGER PAY ALLOWANCE.

    Section 151 of the Foreign Relations Authorization Act, Fiscal 
Years 1990 and 1991 (5 U.S.C. 5928 note) is amended by striking ``or 
the United States Marshals Service'' and inserting ``the United States 
Marshals Service, U.S. Immigration and Customs Enforcement, U.S. 
Customs and Border Protection, or the United States Secret Service''.

SEC. 12. CLARIFICATION OF SECRET SERVICE AUTHORITY TO INVESTIGATE MONEY 
              LAUNDERING.

    Section 3056(b)(3) of title 18, United States Code, is amended--
            (1) by inserting ``money laundering, structured 
        transactions, unlicensed money transmitting,'' after 
        ``documents or devices,''; and
            (2) by striking ``federally insured''.

SEC. 13. REMITTANCES AND MONEY LAUNDERING THREAT ANALYSIS.

    (a) Definitions.--In this section--
            (1) the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on the Judiciary of the Senate;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Caucus on International Narcotics Control 
                of the Senate;
                    (D) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (E) the Committee on the Judiciary of the House of 
                Representatives;
                    (F) the Committee on Homeland Security of the House 
                of Representatives; and
                    (G) the Committee on Financial Services of the 
                House of Representatives;
            (2) the term ``drug kingpins, crime syndicates, and other 
        persons'', with respect to the use of remittances to finance 
        terrorism, narcotics trafficking, human trafficking, money 
        laundering, and other forms of illicit financing, domestically 
        or internationally, means any persons who--
                    (A) are connected to individuals and organizations 
                associated with financing terrorism, narcotics 
                trafficking, human trafficking, money laundering, and 
                other forms of illicit financing, domestically or 
                internationally; and
                    (B) have been designated as--
                            (i) a significant foreign narcotics 
                        trafficker under the Foreign Narcotics Kingpin 
                        Designation Act (21 U.S.C. 1901 et seq.);
                            (ii) a significant transnational criminal 
                        organization under Executive Order 13581 (76 
                        Fed. Reg. 44757, 84 Fed. Reg. 10255; relating 
                        to blocking property of transnational criminal 
                        organizations); or
                            (iii) a Specially Designated Global 
                        Terrorist under Executive Order 13224 (66 Fed. 
                        Reg. 49079, 67 Fed. Reg. 44751, 68 Fed. Reg. 
                        4075, 70 Fed. Reg. 8499; relating to blocking 
                        property and prohibiting transactions with 
                        persons who commit, threaten to commit, or 
                        support terrorism);
            (3) the term ``human trafficking'' has the meaning given 
        the term ``severe forms of trafficking in persons'' in section 
        103 of the Trafficking Victims Protection Act of 2000 (22 
        U.S.C. 7102);
            (4) the term ``money services business'' has the meaning 
        given the term in section 5330 of title 31, United States Code, 
        as amended by section 6(b)(2); and
            (5) the term ``money transmitting service'' has the meaning 
        given the term in section 5330 of title 31, United States Code.
    (b) Analysis.--
            (1) Requirement.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary of the Treasury, in 
        consultation with the Attorney General, the Secretary of 
        Homeland Security, and the head of any other appropriate 
        Federal law enforcement agency, shall submit to the appropriate 
        congressional committees a threat and operational analysis of 
        the use of remittances by drug kingpins, crime syndicates, and 
        other persons to finance terrorism, narcotics trafficking, 
        human trafficking, money laundering, and other forms of illicit 
        financing, domestically or internationally.
            (2) Contents.--The Secretary of the Treasury shall include 
        in the threat and operational analysis required under paragraph 
        (1) the following:
                    (A) Current and potential threats posed by 
                individuals and organized groups seeking--
                            (i) to exploit security vulnerabilities 
                        with respect to remittances and money 
                        transmitting services; or
                            (ii) to unlawfully use remittances to 
                        finance terrorism, narcotics trafficking, human 
                        trafficking, money laundering, or other forms 
                        of illicit financing, domestically or 
                        internationally.
                    (B) Methods and pathways used to exploit security 
                vulnerabilities.
                    (C) Challenges presented by identity theft in the 
                use of remittances and money transmitting services.
                    (D) Improvements needed to enhance cooperation 
                between and among Federal, State, and local officials, 
                including State regulators, State and local 
                prosecutors, and other law enforcement officials.
                    (E) Improvements needed to enhance cooperation 
                between money services businesses and Federal, State, 
                and local officials, including State regulators, State 
                and local prosecutors, and other law enforcement 
                officials.
            (3) Analysis requirements.--In compiling the threat and 
        operational analysis required under paragraph (1), the 
        Secretary of the Treasury, in consultation with the Attorney 
        General, the Secretary of Homeland Security, and the head of 
        any other appropriate Federal law enforcement agency, shall 
        consider and examine the personnel needs, technology needs, and 
        infrastructure needs of Federal law enforcement agencies.
    (c) Remittances Strategy and Implementation Plan.--
            (1) In general.--Not later than 180 days after the date on 
        which the Secretary of the Treasury submits the threat analysis 
        under subsection (b), and every 5 years thereafter for 10 
        years, the Secretary of the Treasury, in consultation with the 
        Attorney General, the Secretary of Homeland Security, and the 
        head of any other appropriate Federal law enforcement agency, 
        shall submit to the appropriate congressional committees a 
        remittances strategy and implementation plan.
            (2) Contents.--In preparing the remittances strategy and 
        implementation plan under paragraph (1), the Secretary of the 
        Treasury shall consider the following:
                    (A) The remittances threat and operational analysis 
                required under subsection (b), with an emphasis on 
                efforts to mitigate threats and challenges identified 
                in the analysis.
                    (B) Efforts to reduce the use of remittances and 
                money transmitting services by drug kingpins, crime 
                syndicates, and other persons to finance terrorism, 
                narcotics trafficking, human trafficking, money 
                laundering, and other forms of illicit financing, 
                domestically or internationally.
                    (C) Efforts to prevent human trafficking and the 
                unlawful movement of illicit drugs and other contraband 
                through the use of remittances and money transmitting 
                services, and standards against which the effectiveness 
                of those efforts may be determined.
                    (D) Efforts to focus collection and information 
                analysis to disrupt transnational criminal 
                organizations attempting to exploit security 
                vulnerabilities, and standards against which the 
                effectiveness of those efforts may be determined.
                    (E) Personnel, technology, and infrastructure needs 
                of Federal law enforcement agencies.
                    (F) Efforts to prevent, detect, investigate, and 
                mitigate money laundering activities through 
                remittances and money transmitting services, and 
                standards against which the effectiveness of those 
                efforts may be determined.
                    (G) The lawful use of remittances, the role that 
                remittances play in countries' economies, and how any 
                recommended measures would impose additional burdens on 
                remittances in light of their lawful uses.

SEC. 14. RULE OF CONSTRUCTION.

    Nothing in this Act, or any amendment made by this Act, shall be 
construed to apply to the authorized law enforcement, protective, or 
intelligence activities of the United States or of an intelligence 
agency of the United States.
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