I

107TH CONGRESS

1ST SESSION H. R. 1114

To combat international money laundering and protect the United States

financial system, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 20, 2001

Mr. LAFALCE (for himself and Ms. VELA ́ZQUEZ) introduced the following bill;

which was referred to the Committee on Financial Services

A BILL

To combat international money laundering and protect the

United States financial system, 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 ‘‘International Counter-Money Laundering and Foreign

6 Anticorruption Act of 2001’’.

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. Findings and purposes.

TITLE I—INTERNATIONAL COUNTER-MONEY LAUNDERING

MEASURES
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Sec. 101. Special measures for jurisdictions, financial institutions, or international transactions of primary money laundering concern.

TITLE II—CURRENCY TRANSACTION REPORTING AMENDMENTS

AND RELATED IMPROVEMENTS

Sec. 201. Amendments relating to reporting of suspicious activities.

Sec. 202. Penalties for violations of geographic targeting orders and certain

recordkeeping requirements, and lengthening effective period of

geographic targeting orders.

Sec. 203. Authorization to include suspicions of illegal activity in written employment references.

Sec. 204. Bank Secrecy Act Advisory Group.

Sec. 205. Agency reports on reconciling penalty amounts.

TITLE III—ANTICORRUPTION MEASURES

Sec. 301. Corruption of foreign governments and ruling elites.

Sec. 302. Support for the Financial Action Task Force on Money Laundering.

1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—The Congress finds as follows:

3 (1) Money laundering, estimated by the Inter4 national Monetary Fund to amount to between 2

5 and 5 percent of global gross domestic product

6 which is at least $600,000,000,000 annually, pro7 vides the financial fuel that permits transnational

8 criminal enterprises to conduct and expand their op9 erations to the detriment of the safety and security

10 of American citizens.

11 (2) Money launderers subvert legitimate finan12 cial mechanisms and banking relationships by using

13 them as protective covering for the movement of

14 criminal proceeds and, by so doing, can undermine

15 the integrity of our financial institutions and of the

16 global financial and trading systems upon which our

17 prosperity and growth depend.
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1 (3) Money launderers rely upon the existence

2 and use of certain jurisdictions outside the United

3 States that offer bank secrecy and special tax or

4 regulatory advantages to nonresidents, and often

5 complement those advantages with weak financial

6 supervisory and regulatory regimes.

7 (4) Certain kinds of transactions involving such

8 offshore jurisdictions—for example, those trans9 actions specifically designed to offer anonymity or

10 the avoidance of regulatory scrutiny—make it dif11 ficult for law enforcement officials and regulators to

12 follow the trail of money earned by criminals and or13 ganized international criminal enterprises that un14 dermine United States national interests and traffic

15 in human misery, whether they are narcotics dealers,

16 terrorists, arms smugglers, traffickers in human

17 beings, or those whose frauds prey upon law abiding

18 citizens.

19 (5) Certain banking relationships between fi20 nancial institutions in the United States and finan21 cial institutions located in such offshore jurisdic22 tions, such as correspondent and payable-through

23 accounts, are particularly vulnerable to abuse be24 cause of the difficulty in obtaining accurate informa-
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1 tion about the beneficial owners whose funds pass

2 through such accounts.

3 (6) The ability to mount effective counter-meas4 ures to international money launderers requires na5 tional, as well as bilateral and multilateral action,

6 using tools specially designed for that effort.

7 (7) The Basle Committee on Banking Regula8 tion and Supervisory Practices and the Financial

9 Action Task Force on Money Laundering, both of

10 which the United States is a member, have each

11 adopted international anti-money laundering prin12 ciples and recommendations.

13 (b) PURPOSES.—The purposes of this Act are as fol14 lows:

15 (1) To ensure that banking transactions and fi16 nancial relationships, the conduct of such trans17 actions and relationships, or both, do not contravene

18 the purposes of subchapter II of chapter 53 of title

19 31, United States Code, section 21 of the Federal

20 Deposit Insurance Act, and chapter 2 of title I of

21 Public Law 91–508, or facilitate the evasion of any

22 such provision, to ensure that the purposes of such

23 subchapter II continue to be fulfilled, and to guard

24 against international money laundering and other fi25 nancial crimes.
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1 (2) To provide a clear national mandate for

2 subjecting to special scrutiny those foreign jurisdic3 tions, financial institutions operating outside the

4 United States, and classes of international trans5 actions that pose particular, identifiable opportuni6 ties for money laundering.

7 (3) To provide the Secretary of the Treasury

8 with broad discretionary authority to take certain

9 measures tailored to the particular money laun10 dering problems presented by specific foreign juris11 dictions, financial institutions operating outside the

12 United States, and classes of international trans13 actions.

14 (4) To provide domestic financial institutions

15 with guidance on particular foreign jurisdictions, fi16 nancial institutions operating outside the United

17 States, and classes of international transactions that

18 are of primary money laundering concern to the

19 United States Government.

20 (5) To clarify the terms of the safe harbor from

21 civil liability for filing suspicious activity reports.

22 (6) To strengthen the Secretary’s authority to

23 issue and administer geographic targeting orders,

24 and to clarify that violations of such orders or any

25 other requirement imposed under the authority con-
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1 tained in chapter 2 of title I of Public Law 91–508

2 and subchapters II and III of chapter 53 of title 31,

3 United States Code, may result in criminal and civil

4 penalties.

5 (7) To strengthen the ability of financial insti6 tutions to maintain the integrity of their employee

7 population.

8 (8) To strengthen measures to prevent the use

9 of the United States financial system for personal

10 gain by corrupt foreign officials and to facilitate the

11 repatriation of any stolen assets to the citizens of

12 countries to whom such assets belong.

13 TITLE I—INTERNATIONAL COUN14 TER–MONEY LAUNDERING

15 MEASURES

16 SEC. 101. SPECIAL MEASURES FOR JURISDICTIONS, FINAN17 CIAL INSTITUTIONS, OR INTERNATIONAL

18 TRANSACTIONS OF PRIMARY MONEY LAUN19 DERING CONCERN.

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

21 title 31, United States Code, is amended by inserting after

22 section 5318 the following new section:
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1 ‘‘§ 5318A. Special measures for jurisdictions, financial

2 institutions, or international transactions

3 of primary money laundering concern

4 ‘‘(a) INTERNATIONAL COUNTER-MONEY LAUN5 DERING REQUIREMENTS.—

6 ‘‘(1) IN GENERAL.—The Secretary may require

7 domestic financial institutions and domestic financial

8 agencies to take 1 or more of the special measures

9 described in subsection (b) if the Secretary finds

10 that reasonable grounds exist for concluding that a

11 jurisdiction outside the United States, 1 or more fi12 nancial institutions operating outside the United

13 States, or 1 or more classes of transactions within,

14 or involving, a jurisdiction outside the United States

15 is of primary money laundering concern, in accord16 ance with subsection (c).

17 ‘‘(2) FORM OF REQUIREMENT.—The special

18 measures described in subsection (b) may be im19 posed by regulation, order, or otherwise as permitted

20 by law, and in such sequence or combination, as the

21 Secretary shall determine.

22 ‘‘(3) PROCESS FOR SELECTING SPECIAL MEAS23 URES.—

24 ‘‘(A) CONSULTATION.—In selecting which

25 special measure or measures to take under this

26 subsection, the Secretary shall consult with the
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1 Chairman of the Board of Governors of the

2 Federal Reserve System and, in the Secretary’s

3 sole discretion, such other agencies and inter4 ested parties as the Secretary may find to be

5 appropriate.

6 ‘‘(B) FACTORS.—The Secretary also shall

7 consider—

8 ‘‘(i) whether similar action has been

9 or is being taken by other nations or multi10 lateral groups;

11 ‘‘(ii) whether the imposition of any

12 particular special measure would create a

13 significant competitive disadvantage, in14 cluding any undue cost or burden associ15 ated with compliance, for financial institu16 tions organized or licensed in the United

17 States; and

18 ‘‘(iii) the extent to which the action

19 would have a significant adverse systemic

20 impact on the international payment, clear21 ance and settlement system, or on legiti22 mate business activities involving the par23 ticular jurisdiction, institution, or class of

24 transactions.
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1 ‘‘(4) NO LIMITATION ON OTHER AUTHORITY.—

2 This section shall not be construed as superseding or

3 otherwise restricting any other authority granted to

4 the Secretary, or to any other agency, by this sub5 chapter or otherwise.

6 ‘‘(b) SPECIAL MEASURES.—The special measures re7 ferred to in subsection (a), with respect to a jurisdiction

8 outside the United States, financial institution operating

9 outside the United States, or class of transaction within,

10 or involving, a jurisdiction outside the United States, are

11 as follows:

12 ‘‘(1) RECORDKEEPING AND REPORTING OF

13 CERTAIN FINANCIAL TRANSACTIONS.—

14 ‘‘(A) IN GENERAL.—The Secretary may re15 quire any domestic financial institution or do16 mestic financial agency to maintain records, file

17 reports, or both, concerning the aggregate

18 amount of transactions, or concerning each

19 transaction, with respect to a jurisdiction out20 side the United States, 1 or more financial in21 stitutions operating outside the United States,

22 or 1 or more classes of transactions within, or

23 involving, a jurisdiction outside the United

24 States, if the Secretary finds any such jurisdic-
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1 tion, institution, or class of transactions to be

2 of primary money laundering concern.

3 ‘‘(B) FORM OF RECORDS AND REPORTS.—

4 Such records and reports shall be made and re5 tained at such time, in such manner, and for

6 such period of time, as the Secretary shall de7 termine, and shall include such information as

8 the Secretary may determine, including—

9 ‘‘(i) the identity and address of the

10 participants in a transaction or relation11 ship, including the identity of the origi12 nator of any funds transfer;

13 ‘‘(ii) the legal capacity in which a par14 ticipant in any transaction is acting;

15 ‘‘(iii) information concerning the bene16 ficial ownership of the funds involved in

17 any transaction, in accordance with steps

18 the Secretary has determined to be reason19 able and practicable to obtain and retain

20 such information; and

21 ‘‘(iv) a description of any transaction.

22 ‘‘(2) INFORMATION RELATING TO BENEFICIAL

23 OWNERSHIP.—In addition to any other requirement

24 under any other law, the Secretary may require any

25 domestic financial institution or domestic financial
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1 agency to take such steps as the Secretary may de2 termine to be reasonable and practicable to obtain

3 and retain information concerning the beneficial

4 ownership of any account opened or maintained in

5 the United States by a foreign person (other than a

6 foreign entity whose shares are subject to public re7 porting requirements or are listed and traded on a

8 regulated exchange or trading market), or a rep9 resentative of such a foreign person, that involves a

10 jurisdiction outside the United States, 1 or more fi11 nancial institutions operating outside the United

12 States, or 1 or more classes of transactions within,

13 or involving, a jurisdiction outside the United States,

14 if the Secretary finds any such jurisdiction, institu15 tion, or transaction to be of primary money laun16 dering concern.

17 ‘‘(3) INFORMATION RELATING TO CERTAIN PAY18 ABLE-THROUGH ACCOUNTS.—If the Secretary finds

19 a jurisdiction outside the United States, 1 or more

20 financial institutions operating outside the United

21 States, or 1 or more classes of transactions within,

22 or involving, a jurisdiction outside the United States

23 to be of primary money laundering concern, the Sec24 retary may require any domestic financial institution

25 or domestic financial agency that opens or maintains
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1 a payable-through account in the United States for

2 a foreign financial institution involving any such ju3 risdiction or any such financial institution operating

4 outside the United States, or a payable-through ac5 count through which any such transaction may be

6 conducted, as a condition of opening or maintaining

7 such account, to—

8 ‘‘(A) identify each customer (and rep9 resentative of such customer) of such financial

10 institution who is permitted to use, or whose

11 transactions are routed through, such payable12 through account; and

13 ‘‘(B) obtain, with respect to each such cus14 tomer (and each such representative), the same

15 information that the depository institution ob16 tains in the ordinary course of business with re17 spect to its customers residing in the United

18 States.

19 ‘‘(4) INFORMATION RELATING TO CERTAIN COR20 RESPONDENT ACCOUNTS.—If the Secretary finds a

21 jurisdiction outside the United States, 1 or more fi22 nancial institutions operating outside the United

23 States, or 1 or more classes of transactions within,

24 or involving, a jurisdiction outside the United States

25 to be of primary money laundering concern, the Sec-
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1 retary may require any domestic financial institution

2 or domestic financial agency that opens or maintains

3 a correspondent account in the United States for a

4 foreign financial institution involving any such juris5 diction or any such financial institution operating

6 outside the United States, or a correspondent ac7 count through which any such transaction may be

8 conducted, as a condition of opening or maintaining

9 such account, to—

10 ‘‘(A) identify each customer (and rep11 resentative of such customer) of any such finan12 cial institution who is permitted to use, or

13 whose transactions are routed through, such

14 correspondent account; and

15 ‘‘(B) obtain, with respect to each such cus16 tomer (and each such representative), the same

17 information that the depository institution ob18 tains in the ordinary course with respect to its

19 customers residing in the United States.

20 ‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN21 ING OR MAINTAINING CERTAIN CORRESPONDENT OR

22 PAYABLE-THROUGH ACCOUNTS.—If the Secretary

23 finds a jurisdiction outside the United States, 1 or

24 more financial institutions operating outside the

25 United States, or 1 or more classes of transactions
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1 within, or involving, a jurisdiction outside the United

2 States to be of primary money laundering concern,

3 the Secretary, in consultation with the Secretary of

4 State, the Attorney General, and the Chairman of

5 the Board of Governors of the Federal Reserve Sys6 tem, may prohibit, or impose conditions upon, the

7 opening or maintaining in the United States of a

8 correspondent account or payable-through account

9 by any domestic financial institution or domestic fi10 nancial agency for or on behalf of a foreign banking

11 institution if such correspondent account or payable12 through account involves any such jurisdiction or in13 stitution, or if any such transaction may be con14 ducted through such correspondent account or pay15 able-through account.

16 ‘‘(c) CONSULTATIONS AND INFORMATION TO BE

17 CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS,

18 OR TRANSACTIONS TO BE OF PRIMARY MONEY LAUN19 DERING CONCERN.—

20 ‘‘(1) IN GENERAL.—In making a finding that

21 reasonable grounds exist for concluding that a juris22 diction outside the United States, 1 or more finan23 cial institutions operating outside the United States,

24 or 1 or more classes of transactions within, or in25 volving, a jurisdiction outside the United States is of
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1 primary money laundering concern so as to author2 ize the Secretary to invoke 1 or more of the special

3 measures of subsection (b), the Secretary shall con4 sult with the Secretary of State, the Attorney Gen5 eral, the Secretary of Commerce, and the United

6 States Trade Representative.

7 ‘‘(2) INFORMATION.—The Secretary also shall

8 consider such information as the Secretary considers

9 to be relevant, including the following potentially rel10 evant factors:

11 ‘‘(A) In the case of a particular

12 jurisdiction—

13 ‘‘(i) the extent to which that jurisdic14 tion or financial institutions operating

15 therein offer bank secrecy or special tax or

16 regulatory advantages to nonresidents or

17 nondomiciliaries of such jurisdiction;

18 ‘‘(ii) the substance and quality of ad19 ministration of that jurisdiction’s bank su20 pervisory and counter-money laundering

21 laws;

22 ‘‘(iii) the relationship between the vol23 ume of financial transactions occurring in

24 that jurisdiction and the size of the juris25 diction’s economy;
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1 ‘‘(iv) the extent to which that jurisdic2 tion is characterized as a tax haven or off3 shore banking or secrecy haven by credible

4 international organizations or multilateral

5 expert groups;

6 ‘‘(v) whether the United States has a

7 mutual legal assistance treaty with that ju8 risdiction, and the experience of United

9 States law enforcement officials, regulatory

10 officials, and tax administrators in obtain11 ing information about transactions origi12 nating in or routed through or to such ju13 risdiction; and

14 ‘‘(vi) the extent to which that jurisdic15 tion is characterized by high levels of offi16 cial or institutional corruption.

17 ‘‘(B) In the case of a decision to apply 1

18 or more of the special measures described in

19 subsection (b) only to a financial institution or

20 institutions, or to a transaction or class of

21 transactions, or to both, within, or involving, a

22 particular jurisdiction—

23 ‘‘(i) the extent to which such financial

24 institutions or transactions are used to fa-
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1 cilitate or promote money laundering in or

2 through the jurisdiction;

3 ‘‘(ii) the extent to which such institu4 tions or transactions are used for legiti5 mate business purposes in such jurisdic6 tion; and

7 ‘‘(iii) the extent to which such action

8 is sufficient to ensure, with respect to

9 transactions involving such jurisdiction and

10 institutions operating in such jurisdiction,

11 that the purposes of this subchapter con12 tinue to be fulfilled, and to guard against

13 international money laundering and other

14 financial crimes.

15 ‘‘(d) NOTIFICATION OF SPECIAL MEASURES IN16 VOKED BY THE SECRETARY.—Within 10 days after the

17 date of any action taken by the Secretary under subsection

18 (a)(1), the Secretary shall notify, in writing, the Com19 mittee on Banking and Financial Services of the House

20 of Representatives and the Committee on Banking, Hous21 ing, and Urban Affairs of the Senate of any such action.

22 ‘‘(e) DEFINITIONS.—Notwithstanding any other pro23 vision of this subchapter, for purposes of this section, the

24 following definitions shall apply:

25 ‘‘(1) DEFINED TERMS.—
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1 ‘‘(A) BANK DEFINITIONS.—The following

2 definitions shall apply with respect to a bank:

3 ‘‘(i) ACCOUNT.—The term ‘account’—

4 ‘‘(I) means a formal banking or

5 business relationship established to

6 provide regular services, dealings, and

7 other financial transactions; and

8 ‘‘(II) includes a demand deposit,

9 savings deposit, or other transaction

10 or asset account and a credit account

11 or other extension of credit.

12 ‘‘(ii) CORRESPONDENT ACCOUNT.—

13 The term ‘correspondent account’ means

14 an account established to receive deposits

15 from and make payments on behalf of a

16 foreign financial institution.

17 ‘‘(iii) PAYABLE-THROUGH ACCOUNT.—

18 The term ‘payable-through account’ means

19 an account, including a transaction ac20 count (as defined in section 19(b)(1)(C) of

21 the Federal Reserve Act), opened at a de22 pository institution by a foreign financial

23 institution by means of which the foreign

24 financial institution permits its customers

25 to engage, either directly or through a sub-
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1 account, in banking activities usual in con2 nection with the business of banking in the

3 United States.

4 ‘‘(B) DEFINITIONS APPLICABLE TO INSTI5 TUTIONS OTHER THAN BANKS.—With respect

6 to any financial institution other than a bank,

7 the Secretary shall define, by regulation, order,

8 or otherwise as permitted by law, the term ‘ac9 count’ and shall include within the meaning of

10 such term arrangements similar to payable11 through and correspondent accounts.

12 ‘‘(2) OTHER TERMS.—The Secretary may, by

13 regulation, order, or otherwise as permitted by law,

14 further define the terms in paragraph (1) and define

15 other terms for the purposes of this section, as the

16 Secretary deems appropriate.’’.

17 (b) CLERICAL AMENDMENT.—The table of sections

18 for subchapter II of chapter 53 of title 31, United States

19 Code, is amended by inserting after the item relating to

20 section 5318 the following new item:

‘‘5318A. Special measures for jurisdictions, financial institutions, or international transactions of primary money laundering concern.’’.
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1 TITLE II—CURRENCY TRANS2 ACTION REPORTING AMEND3 MENTS AND RELATED IM4 PROVEMENTS

5 SEC. 201. AMENDMENTS RELATING TO REPORTING OF SUS6 PICIOUS ACTIVITIES.

7 (a) AMENDMENT RELATING TO CIVIL LIABILITY IM8 MUNITY FOR DISCLOSURES.—Section 5318(g)(3) of title

9 31, United States Code, is amended to read as follows:

10 ‘‘(3) LIABILITY FOR DISCLOSURES.—

11 ‘‘(A) IN GENERAL.—Any financial institu12 tion that makes a voluntary disclosure of any

13 possible violation of law or regulation to a gov14 ernment agency or makes a disclosure pursuant

15 to this subsection or any other authority, and

16 any director, officer, employee, or agent of such

17 institution who makes, or requires another to

18 make any such disclosure, shall not be liable to

19 any person under any law or regulation of the

20 United States, any constitution, law, or regula21 tion of any State or political subdivision of any

22 State, or under any contract or other legally en23 forceable agreement (including any arbitration

24 agreement), for such disclosure or for any fail25 ure to provide notice of such disclosure to the
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1 person who is the subject of such disclosure or

2 any other person identified in the disclosure.

3 ‘‘(B) RULE OF CONSTRUCTION.—Subpara4 graph (A) shall not be construed as creating—

5 ‘‘(i) any inference that the term ‘per6 son’, as used in such subparagraph, may

7 be construed more broadly than its ordi8 nary usage so to include any government

9 or agency of government; or

10 ‘‘(ii) any immunity against, or other11 wise affecting, any civil or criminal action

12 brought by any government or agency of

13 government to enforce any constitution,

14 law, or regulation of such government or

15 agency.’’.

16 (b) PROHIBITION ON NOTIFICATION OF DISCLO17 SURES.—Section 5318(g)(2) of title 31, United States

18 Code, is amended to read as follows:

19 ‘‘(2) NOTIFICATION PROHIBITED.—

20 ‘‘(A) IN GENERAL.—If a financial institu21 tion or any director, officer, employee, or agent

22 of any financial institution, voluntarily or pur23 suant to this section or any other authority, re24 ports a suspicious transaction to a government

25 agency—
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1 ‘‘(i) the financial institution, director,

2 officer, employee, or agent may not notify

3 any person involved in the transaction that

4 the transaction has been reported; and

5 ‘‘(ii) no officer or employee of the

6 Federal Government or of any State, local,

7 tribal, or territorial government within the

8 United States, who has any knowledge that

9 such report was made may disclose to any

10 person involved in the transaction that the

11 transaction has been reported other than

12 as necessary to fulfill the official duties of

13 such officer or employee.

14 ‘‘(B) DISCLOSURES IN CERTAIN EMPLOY15 MENT REFERENCES.—Notwithstanding the ap16 plication of subparagraph (A) in any other con17 text, subparagraph (A) shall not be construed

18 as prohibiting any financial institution, or any

19 director, officer, employee, or agent of such in20 stitution, from including, in a written employ21 ment reference that is provided in accordance

22 with section 18(v) of the Federal Deposit Insur23 ance Act in response to a request from another

24 financial institution or a written termination

25 notice or employment reference that is provided
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1 in accordance with the rules of the self-regu2 latory organizations registered with the Securi3 ties and Exchange Commission, information

4 that was included in a report to which subpara5 graph (A) applies, but such written employment

6 reference may not disclose that such informa7 tion was also included in any such report or

8 that such report was made.’’.

9 SEC. 202. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC

10 TARGETING ORDERS AND CERTAIN RECORD11 KEEPING REQUIREMENTS, AND LENGTH12 ENING EFFECTIVE PERIOD OF GEOGRAPHIC

13 TARGETING ORDERS.

14 (a) CIVIL PENALTY FOR VIOLATION OF TARGETING

15 ORDER.—Section 5321(a)(1) of title 31, United States

16 Code, is amended—

17 (1) by inserting ‘‘or order issued’’ after ‘‘sub18 chapter or a regulation prescribed’’; and

19 (2) by inserting ‘‘, or willfully violating a regu20 lation prescribed under section 21 of the Federal

21 Deposit Insurance Act or section 123 of Public Law

22 91–508,’’ after ‘‘section 5314 and 5315)’’.

23 (b) CRIMINAL PENALTIES FOR VIOLATION OF TAR24 GETING ORDER.—Section 5322 of title 31, United States

25 Code, is amended—
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1 (1) in subsection (a)—

2 (A) by inserting ‘‘or order issued’’ after

3 ‘‘willfully violating this subchapter or a regula4 tion prescribed’’; and

5 (B) by inserting ‘‘, or willfully violating a

6 regulation prescribed under section 21 of the

7 Federal Deposit Insurance Act or section 123

8 of Public Law 91–508,’’ after ‘‘under section

9 5315 or 5324)’’;

10 (2) in subsection (b)—

11 (A) by inserting ‘‘or order issued’’ after

12 ‘‘willfully violating this subchapter or a regula13 tion prescribed’’; and

14 (B) by inserting ‘‘or willfully violating a

15 regulation prescribed under section 21 of the

16 Federal Deposit Insurance Act or section 123

17 of Public Law 91–508,’’ after ‘‘under section

18 5315 or 5324),’’.

19 (c) STRUCTURING TRANSACTIONS TO EVADE TAR20 GETING ORDER OR CERTAIN RECORDKEEPING REQUIRE21 MENTS.—Section 5324(a) of title 31, United States Code,

22 is amended—

23 (1) by inserting a comma after ‘‘shall’’;

24 (2) by striking ‘‘section—’’ and inserting ‘‘sec25 tion, the reporting or recordkeeping requirements
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1 imposed by any order issued under section 5326, or

2 the recordkeeping requirements imposed by any reg3 ulation prescribed under section 21 of the Federal

4 Deposit Insurance Act or section 123 of Public Law

5 91–508—’’;

6 (3) in paragraph (1) by inserting ‘‘, to file a re7 port or to maintain a record required by an order

8 issued under section 5326, or to maintain a record

9 required pursuant to any regulation prescribed

10 under section 21 of the Federal Deposit Insurance

11 Act or section 123 of Public Law 91–508’’ after

12 ‘‘regulation prescribed under any such section’’; and

13 (4) in paragraph (2) by inserting ‘‘, to file a re14 port or to maintain a record required by any order

15 issued under section 5326, or to maintain a record

16 required pursuant to any regulation prescribed

17 under section 5326, or to maintain a record required

18 pursuant to any regulation prescribed under section

19 21 of the Federal Deposit Insurance Act or section

20 123 of Public Law 91–508,’’ after ‘‘regulation pre21 scribed under any such section’’.

22 (d) LENGTHENING EFFECTIVE PERIOD OF GEO23 GRAPHIC TARGETING ORDERS.—Section 5326(d) of title

24 31, United States Code, is amended by striking ‘‘60’’ after

25 ‘‘shall be effective for more than’’ and inserting ‘‘180’’.
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1 SEC. 203. AUTHORIZATION TO INCLUDE SUSPICIONS OF IL2 LEGAL ACTIVITY IN WRITTEN EMPLOYMENT

3 REFERENCES.

4 Section 18 of the Federal Deposit Insurance Act (12

5 U.S.C. 1828) is amended by adding at the end the fol6 lowing new subsection:

7 ‘‘(v) WRITTEN EMPLOYMENT REFERENCES MAY

8 CONTAIN SUSPICIONS OF INVOLVEMENT IN ILLEGAL AC9 TIVITY.—

10 ‘‘(1) IN GENERAL.—Notwithstanding any other

11 provision of law, any insured depository institution,

12 and any director, officer, employee, or agent of such

13 institution, may disclose in any written employment

14 reference relating to a current or former institution15 affiliated party of such institution which is provided

16 to another insured depository institution in response

17 to a request from such other institution, information

18 concerning the possible involvement of such institu19 tion-affiliated party in potentially unlawful activity.

20 ‘‘(2) DEFINITION.—For purposes of this sub21 section, the term ‘insured depository institution’ in22 cludes any uninsured branch or agency of a foreign

23 bank.’’.

24 SEC. 204. BANK SECRECY ACT ADVISORY GROUP.

25 Section 1564 of the Annunzio-Wylie Anti-Money

26 Laundering Act (31 U.S.C. 5311 note) is amended—
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1 (1) in subsection (a), by inserting ‘‘, of non2 governmental organizations advocating financial pri3 vacy,’’ after ‘‘Drug Control Policy’’; and

4 (2) in subsection (c), by inserting ‘‘, other than

5 subsections (a) and (d) of such Act which shall

6 apply’’ before the period at the end.

7 SEC. 205. AGENCY REPORTS ON RECONCILING PENALTY

8 AMOUNTS.

9 Before the end of the 1-year period beginning on the

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

11 Treasury and the Federal banking agencies (as defined in

12 section 3 of the Federal Deposit Insurance Act) shall each

13 submit their respective reports to the Congress containing

14 recommendations on possible legislation to conform the

15 penalties imposed on depository institutions (as defined in

16 section 3 of the Federal Deposit Insurance Act) for viola17 tions of subchapter II of chapter 53 of title 31, United

18 States Code, to the penalties imposed on such institutions

19 under section 8 of the Federal Deposit Insurance Act.

20 TITLE III—ANTICORRUPTION

21 MEASURES

22 SEC. 301. CORRUPTION OF FOREIGN GOVERNMENTS AND

23 RULING ELITES.

24 It is the sense of the Congress that, in deliberations

25 between the United States Government and any other
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•HR 1114 IH

1 country on money laundering and corruption issues, the

2 United States Government should—

3 (1) emphasize an approach that addresses not

4 only the laundering of the proceeds of traditional

5 criminal activity but also the increasingly endemic

6 problem of governmental corruption and the corrup7 tion of ruling elites;

8 (2) encourage the enactment and enforcement

9 of laws in such country to prevent money laundering

10 and systemic corruption;

11 (3) make clear that the United States will take

12 all steps necessary to identify the proceeds of foreign

13 government corruption which have been deposited in

14 United States financial institutions and return such

15 proceeds to the citizens of the country to whom such

16 assets belong; and

17 (4) advance policies and measures to promote

18 good government and to prevent and reduce corrup19 tion and money laundering, including through in20 structions to the United States Executive Director of

21 each international financial institution (as defined in

22 section 1701(c) of the International Financial Insti23 tutions Act) to advocate such policies as a system24 atic element of economic reform programs and ad25 vice to member governments.
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1 SEC. 302. SUPPORT FOR THE FINANCIAL ACTION TASK

2 FORCE ON MONEY LAUNDERING.

3 It is the sense of the Congress that—

4 (1) the United States should continue to ac5 tively and publicly support the objectives of the Fi6 nancial Action Task Force on Money Laundering

7 (hereafter in this section referred to as the

8 ‘‘FATF’’) with regard to combating international

9 money laundering;

10 (2) the FATF should identify noncooperative

11 jurisdictions in as expeditious a manner as possible

12 and publicly release a list directly naming those ju13 risdictions identified;

14 (3) the United States should support the public

15 release of the list naming noncooperative jurisdic16 tions identified by the FATF;

17 (4) the United States should encourage the

18 adoption of the necessary international action to en19 courage compliance by the identified noncooperative

20 jurisdictions; and

21 (5) the United States should take the necessary

22 countermeasures to protect the United States econ23 omy against money of unlawful origin and encourage

24 other nations to do the same.

Æ