II 

108TH CONGRESS 

1ST SESSION S. 1837

To combat money laundering and terrorist financing and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 6, 2003

Mr. GRASSLEY introduced the following bill; which was read twice and referred 

to the Committee on the Judiciary 

A BILL

To combat money laundering and terrorist financing 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. 

4 This Act may be cited as the ‘‘Combating Money 

5 Laundering and Terrorist Financing Act of 2003’’. 

6 SEC. 2. SPECIFIED ACTIVITIES FOR MONEY LAUNDERING. 

7 (a) RICO DEFINITIONS.—Section 1961(1) of title 

8 18, United States Code, is amended—

9 (1) in subparagraph (A), by inserting ‘‘bur10 glary, embezzlement,’’ after ‘‘robbery,’’; 

11 (2) in subparagraph (B), by—
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•S 1837 IS 

1 (A) inserting ‘‘section 1960 (relating to il2 legal money transmitters),’’ before ‘‘sections 

3 2251’’; 

4 (B) striking ‘‘1588’’ and inserting ‘‘1592’’; 

5 (C) inserting ‘‘and 1470’’ after ‘‘1461–

6 1465’’; and 

7 (D) inserting ‘‘2252A,’’ after ‘‘2252,’’; 

8 (3) in subparagraph (D), by striking ‘‘fraud in 

9 the sale of securities’’ and inserting ‘‘fraud in the 

10 purchase or sale of securities’’; and 

11 (4) in subparagraph (F), by inserting ‘‘and 

12 274A’’ after ‘‘274’’. 

13 (b) MONETARY INVESTMENTS.—Section 

14 1956(c)(7)(D) of title 18, United States Code, is amended 

15 by—

16 (1) inserting ‘‘, or section 2339C (relating to fi17 nancing of terrorism)’’ before ‘‘of this title’’; and 

18 (2) striking ‘‘or any felony violation of the For19 eign Corrupt Practices Act’’ and inserting ‘‘any fel20 ony violation of the Foreign Corrupt Practices Act, 

21 or any violation of section 208 of the Social Security 

22 Act (42 U.S.C. 408) (relating to obtaining funds 

23 through misuse of a social security number)’’. 

24 (c) CONFORMING AMENDMENTS.—
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•S 1837 IS 

1 (1) MONETARY INSTRUMENTS.—Section 

2 1956(e) of title 18, United States Code, is amended 

3 to read as follows: 

4 ‘‘(e) Violations of this section may be investigated by 

5 such components of the Department of Justice as the At6 torney General may direct, and by such components of the 

7 Department of the Treasury as the Secretary of the Treas8 ury may direct, as appropriate, and, with respect to of9 fenses over which the Department of Homeland Security 

10 has jurisdiction, by such components of the Department 

11 of Homeland Security as the Secretary of Homeland Secu12 rity may direct, with respect to the offenses over which 

13 the Social Security Administration has jurisdiction, as the 

14 Commissioner of Social Security may direct, and with re15 spect to offenses over which the United States Postal 

16 Service has jurisdiction, as the Postmaster General may 

17 direct. The authority under this subsection of the Sec18 retary of the Treasury, the Secretary of Homeland Secu19 rity, the Commissioner of Social Security, and the Post20 master General shall be exercised in accordance with an 

21 agreement which shall be entered into by the Secretary 

22 of the Treasury, the Secretary of Homeland Security, the 

23 Commissioner of Social Security, the Postmaster General, 

24 and the Attorney General. Violations of this section involv25 ing offenses described in subsection (c)(7)(E) may be in-
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•S 1837 IS 

1 vestigated by such components of the Department of Jus2 tice as the Attorney General may direct, and the National 

3 Enforcement Investigations Center of the Environmental 

4 Protection Agency.’’. 

5 (2) PROPERTY FROM UNLAWFUL ACTIVITY.—

6 Section 1957(e) of title 18, United States Code, is 

7 amended to read as follows: 

8 ‘‘(e) Violations of this section may be investigated by 

9 such components of the Department of Justice as the At10 torney General may direct, and by such components of the 

11 Department of the Treasury as the Secretary of the Treas12 ury may direct, as appropriate, and, with respect to of13 fenses over which the Department of Homeland Security 

14 has jurisdiction, by such components of the Department 

15 of Homeland Security as the Secretary of Homeland Secu16 rity may direct, and, with respect to offenses over which 

17 the United States Postal Service has jurisdiction, by the 

18 Postmaster General. The authority under this subsection 

19 of the Secretary of the Treasury, the Secretary of Home20 land Security, and the Postmaster General shall be exer21 cised in accordance with an agreement which shall be en22 tered into by the Secretary of the Treasury, the Secretary 

23 of Homeland Security, the Postmaster General, and the 

24 Attorney General.’’. 
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•S 1837 IS 

1 SEC. 3. ILLEGAL MONEY TRANSMITTING BUSINESSES. 

2 (a) TECHNICAL AMENDMENTS.—Section 1960 of 

3 title 18, United States Code, is amended—

4 (1) in the caption by striking ‘‘unlicensed’’ and 

5 inserting ‘‘illegal’’; 

6 (2) in subsection (a), by striking ‘‘unlicensed’’ 

7 and inserting ‘‘illegal’’; 

8 (3) in subsection (b)(1), by striking ‘‘unli9 censed’’ and inserting ‘‘illegal’’; and 

10 (4) in subsection (b)(1)(C), by striking ‘‘to be 

11 used to be used’’ and inserting ‘‘to be used’’. 

12 (b) PROHIBITION OF UNLICENSED MONEY TRANSMIT13 TING BUSINESSES.—Section 1960(b)(1)(B) of title 18, 

14 United States Code, is amended by inserting the following 

15 before the semicolon: ‘‘, whether or not the defendant 

16 knew that the operation was required to comply with such 

17 registration requirements’’.

18 (c) AUTHORITY TO INVESTIGATE.—Section 1960 of 

19 title 18, United States Code, is amended by adding at the 

20 end the following: 

21 ‘‘(c) Violations of this section may be investigated by 

22 the Attorney General, the Secretary of the Treasury, and 

23 the Secretary of the Department of Homeland Security.’’. 
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•S 1837 IS 

1 SEC. 4. ASSETS OF PERSONS COMMITTING TERRORIST 

2 ACTS AGAINST FOREIGN COUNTRIES OR 

3 INTERNATIONAL ORGANIZATIONS. 

4 Section 981(a)(1)(G) of title 18, United States Code, 

5 is amended by—

6 (1) striking ‘‘or’’ at the end of clause (ii); 

7 (2) striking the period at the end of clause (iii) 

8 and inserting ‘‘; or’’; and 

9 (3) inserting after clause (iii) the following: 

10 ‘‘(iv) of any individual, entity, or or11 ganization engaged in planning or perpe12 trating any act of international terrorism 

13 (as defined in section 2331) against any 

14 international organization (as defined in 

15 section 209 of the State Department Basic 

16 Authorities Act of 1956 (22 U.S.C. 

17 4309(b))) or against any foreign govern18 ment. Where the property sought for for19 feiture is located beyond the territorial 

20 boundaries of the United States, an act in 

21 furtherance of such planning or perpetra22 tion must have occurred within the juris23 diction of the United States.’’. 
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•S 1837 IS 

1 SEC. 5. MONEY LAUNDERING THROUGH INFORMAL VALUE 

2 TRANSFER SYSTEMS. 

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

4 amended by adding at the end the following: 

5 ‘‘(4) A transaction described in paragraph (1) or a 

6 transportation, transmission, or transfer described in 

7 paragraph (2) shall be deemed to involve the proceeds of 

8 specified unlawful activity, if the transaction, transpor9 tation, transmission, or transfer is part of a single plan 

10 or arrangement whose purpose is described in either of 

11 those paragraphs and one part of such plan or arrange12 ment actually involves the proceeds of specified unlawful 

13 activity.’’. 

14 SEC. 6. TECHNICAL CORRECTIONS TO FINANCING OF TER15 RORISM STATUTE. 

16 (a) CONCEALMENT.—Section 2339C(c)(2) of title 18, 

17 United States Code, is amended—

18 (1) by striking ‘‘resources, or funds’’ and in19 serting ‘‘resources, or any funds or proceeds of such 

20 funds’’; 

21 (2) in subparagraph (A), by striking ‘‘were pro22 vided’’ and inserting ‘‘are to be provided, or knowing 

23 that the support or resources were provided,’’; and 

24 (3) in subparagraph (B)—

25 (A) by striking ‘‘or any proceeds of such 

26 funds’’; and 
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1 (B) by striking ‘‘were provided or col2 lected’’ and inserting ‘‘are to be provided or col3 lected, or knowing that the funds were provided 

4 or collected,’’. 

5 (b) DEFINITIONS.—Section 2339C(e) is amended 

6 by—

7 (1) striking ‘‘and’’ at the end of paragraph 

8 (12); 

9 (2) redesignating paragraph (13) as paragraph 

10 (14); and 

11 (3) inserting after paragraph (12) the following 

12 new paragraph: 

13 ‘‘(13) the term ‘material support or resources’ 

14 has the same meaning as in section 2339A(b) of this 

15 title; and’’. 

16 (c) INTERNATIONAL TERRORISM.—Section 

17 2332b(g)(5)(B) of title 18, United States Code, is amend18 ed by inserting ‘‘)’’ after ‘‘2339C (relating to financing 

19 of terrorism’’. 

20 SEC. 7. MISCELLANEOUS AND TECHNICAL AMENDMENTS. 

21 (a) CRIMINAL FORFEITURE.—Section 982(b) of title 

22 18, United States Code, is amended in subsection (b)(2), 

23 by striking ‘‘The substitution’’ and inserting ‘‘With re24 spect to a forfeiture under subsection (a)(1), the substi25 tution’’. 
9

•S 1837 IS 

1 (b) TECHNICAL AMENDMENTS TO SECTIONS 1956 

2 AND 1957.—

3 (1) UNLAWFUL ACTIVITY.—Section 

4 1956(c)(7)(F) of title 18, United States Code, is 

5 amended by inserting ‘‘, as defined in section 24’’ 

6 before the period. 

7 (2) PROPERTY FROM UNLAWFUL ACTIVITY.—

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

9 amended—

10 (A) in subsection (a), by striking ‘‘engages 

11 or attempts to engage in’’ and inserting ‘‘con12 ducts or attempts to conduct’’; and 

13 (B) in subsection (f), by inserting the fol14 lowing after paragraph (3): 

15 ‘‘(4) the term ‘conducts’ has the same meaning 

16 as it does for purposes of section 1956 of this title.’’. 

17 (c) OBSTRUCTION OF JUSTICE.—Section 

18 1510(b)(3)(B) of title 18, United States Code, is amended 

19 by striking ‘‘or’’ the first time it appears and inserting 

20 ‘‘, a subpoena issued pursuant to section 1782 of title 28, 

21 or’’. 

22 SEC. 8. EXTENSION OF THE MONEY LAUNDERING AND FI23 NANCIAL CRIMES STRATEGY ACT OF 1998. 

24 (a) TRANSMITTAL TO CONGRESS.—Section 

25 5341(a)(2) of title 31, United States Code, is amended 
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1 by striking ‘‘and 2003’’ and inserting ‘‘2003, 2004, 2005, 

2 and 2006’’. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

4 5355 of title 31, United States Code is amended by insert5 ing after the item for fiscal year 2003 the following:

‘‘2004 ............................................. $15,000,000

‘‘2005 ............................................. $15,000,000

‘‘2006 ............................................. $15,000,000.’’.

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