H. R. 3474—86
‘‘(1) has the meaning given to such term in section
19(b)(1)(A) of the Federal Reserve Act; and
‘‘(2) includes—
‘‘(A) any branch, agency, or commercial lending com-
pany (as such terms are defined in section 1(b) of the
International Banking Act of 1978);
‘‘(B) any corporation chartered under section 25A of
the Federal Reserve Act; and
‘‘(C) any corporation having an agreement or undertak-
ing with the Board of Governors of the Federal Reserve
System under section 25 of the Federal Reserve Act.’’.
(b) REPORT REDUCTION GOAL; REPORTS.—
(1) IN GENERAL.—In implementing the amendment made
by subsection (a), the Secretary of the Treasury shall seek
to reduce, within a reasonable period of time, the number
of reports required to be filed in the aggregate by depository
institutions pursuant to section 5313(a) of title 31, United
States Code, by at least 30 percent of the number filed during
the year preceding the date of enactment of this Act.
(2) INTERIM REPORT.—The Secretary of the Treasury shall
submit a report to the Congress not later than the end of
the 180-day period beginning on the date of enactment of this
Act on the progress made by the Secretary in implementing
the amendment made by subsection (a).
(3) ANNUAL REPORT.—The Secretary of the Treasury shall
submit an annual report to the Congress after the end of
each of the first 5 calendar years which begin after the date
of enactment of this Act on the extent to which the Secretary
has reduced the overall number of currency transaction reports
filed with the Secretary pursuant to section 5313(a) of title
31, United States Code, consistent with the purposes of such
section and effective law enforcement.
(c) STREAMLINED CURRENCY TRANSACTION REPORTS.—The Sec-
retary of the Treasury shall take such action as may be appropriate
to—
(1) redesign the format of reports required to be filed under
section 5313(a) of title 31, United States Code, by any financial
institution (as defined in section 5312(a)(2) of such title) to
eliminate the need to report information which has little or
no value for law enforcement purposes; and
(2) reduce the time and effort required to prepare such
report for filing by any such financial institution under such
section.
SEC. 403. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS TRANS-
ACTIONS.
(a) IN GENERAL.—Section 5318(g) of title 31, United States
Code, is amended by adding at the end the following new paragraph:
‘‘(4) 
SINGLE
DESIGNEE
FOR
REPORTING
SUSPICIOUS
TRANSACTIONS.—
‘‘(A) IN GENERAL.—In requiring reports under para-
graph (1) of suspicious transactions, the Secretary of the
Treasury shall designate, to the extent practicable and
appropriate, a single officer or agency of the United States
to whom such reports shall be made.
‘‘(B) DUTY OF DESIGNEE.—The officer or agency of the
United States designated by the Secretary of the Treasury
H. R. 3474—87
pursuant to subparagraph (A) shall refer any report of
a suspicious transaction to any appropriate law enforce-
ment or supervisory agency.
‘‘(C) COORDINATION WITH OTHER REPORTING REQUIRE-
MENTS.—Subparagraph (A) shall not be construed as
precluding any supervisory agency for any financial institu-
tion from requiring the financial institution to submit any
information or report to the agency or another agency
pursuant to any other applicable provision of law.’’.
(b) REPORTS.—
(1) REPORTS
REQUIRED.—The Secretary of the Treasury
shall submit an annual report to the Congress at the times
required under paragraph (2) on the number of suspicious
transactions reported to the officer or agency designated under
section 5318(g)(4)(A) of title 31, United States Code, during
the period covered by the report and the disposition of such
reports.
(2) TIME
FOR
SUBMITTING
REPORTS.—The 1st report
required under paragraph (1) shall be filed before the end
of the 1-year period beginning on the date of enactment of
the Money Laundering Suppression Act of 1994 and each subse-
quent report shall be filed within 90 days after the end of
each of the 5 calendar years which begin after such date of
enactment.
(c) DESIGNATION REQUIRED TO BE MADE EXPEDITIOUSLY.—The
initial designation of an officer or agency of the United States
pursuant to the amendment made by subsection (a) shall be made
before the end of the 180-day period beginning on the date of
enactment of this Act.
SEC. 404. IMPROVEMENT OF IDENTIFICATION OF MONEY LAUNDERING
SCHEMES.
(a) ENHANCED TRAINING, EXAMINATIONS, AND REFERRALS BY
BANKING AGENCIES.—Before the end of the 6-month period begin-
ning on the date of enactment of this Act, each appropriate Federal
banking agency shall, in consultation with the Secretary of the
Treasury and other appropriate law enforcement agencies—
(1) review and enhance training and examination proce-
dures to improve the identification of money laundering
schemes involving depository institutions; and
(2) review and enhance procedures for referring cases to
any appropriate law enforcement agency.
(b) IMPROVED
REPORTING
OF
CRIMINAL
SCHEMES
BY
LAW
ENFORCEMENT AGENCIES.—The Secretary of the Treasury and each
appropriate law enforcement agency shall provide, on a regular
basis, information regarding money laundering schemes and activi-
ties involving depository institutions to each appropriate Federal
banking agency in order to enhance each agency’s ability to examine
for and identify money laundering activity.
(c) REPORT TO CONGRESS.—The Financial Institutions Examina-
tion Council shall submit a report on the progress made in carrying
out subsection (a) and the usefulness of information received pursu-
ant to subsection (b) to the Congress by the end of the 1-year
period beginning on the date of enactment of this Act.
(d) DEFINITION.—For purposes of this section, the term ‘‘appro-
priate Federal banking agency’’ has the same meaning as in section
3 of the Federal Deposit Insurance Act.
H. R. 3474—88
SEC. 405. NEGOTIABLE INSTRUMENTS DRAWN ON FOREIGN BANKS
SUBJECT TO RECORDKEEPING AND REPORTING REQUIRE-
MENTS.
Section 5312(a)(3) of title 31, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ‘‘; and’’; and
(3) by adding at the end the following new subparagraph:
‘‘(C) as the Secretary of the Treasury shall provide
by regulation for purposes of section 5316, checks, drafts,
notes, money orders, and other similar instruments which
are drawn on or by a foreign financial institution and
are not in bearer form.’’.
SEC. 406. IMPOSITION OF CIVIL MONEY PENALTIES BY APPROPRIATE
FEDERAL BANKING AGENCIES.
Section 5321 of title 31, United States Code, is amended by
adding at the end the following new subsection:
‘‘(e) DELEGATION
OF
ASSESSMENT
AUTHORITY
TO
BANKING
AGENCIES.—
‘‘(1) IN GENERAL.—The Secretary of the Treasury shall dele-
gate, in accordance with section 5318(a)(1) and subject to such
terms and conditions as the Secretary may impose in accordance
with paragraph (3), any authority of the Secretary to assess
a civil money penalty under this section on depository institu-
tions (as defined in section 3 of the Federal Deposit Insurance
Act) to the appropriate Federal banking agencies (as defined
in such section 3).
‘‘(2) AUTHORITY
OF
AGENCIES.—Subject to any term or
condition imposed by the Secretary of the Treasury under
paragraph (3), the provisions of this section shall apply to
an appropriate Federal banking agency to which is delegated
any authority of the Secretary under this section in the same
manner such provisions apply to the Secretary.
‘‘(3) TERMS AND CONDITIONS.—
‘‘(A) IN GENERAL.—The Secretary of the Treasury shall
prescribe by regulation the terms and conditions which
shall apply to any delegation under paragraph (1).
‘‘(B) MAXIMUM DOLLAR AMOUNT.—The terms and condi-
tions authorized under subparagraph (A) may include, in
the Secretary’s sole discretion, a limitation on the amount
of any civil penalty which may be assessed by an appro-
priate Federal banking agency pursuant to a delegation
under paragraph (1).’’.
SEC. 407. UNIFORM STATE LICENSING AND REGULATION OF CHECK
CASHING, CURRENCY EXCHANGE, AND MONEY TRANSMIT-
TING BUSINESSES.
(a) UNIFORM
LAWS
AND
ENFORCEMENT.—For purposes of
preventing money laundering and protecting the payment system
from fraud and abuse, it is the sense of the Congress that the
several States should—
(1) establish uniform laws for licensing and regulating
businesses which—
(A) provide check cashing, currency exchange, or money
transmitting or remittance services, or issue or redeem
H. R. 3474—89
money orders, travelers’ checks, and other similar
instruments; and
(B) are not depository institutions (as defined in section
5313(g) of title 31, United States Code); and
(2) provide sufficient resources to the appropriate State
agency to enforce such laws and regulations prescribed pursu-
ant to such laws.
(b) MODEL STATUTE.—It is the sense of the Congress that
the several States should develop, through the auspices of the
National Conference of Commissioners on Uniform State Laws,
the American Law Institute, or such other forum as the States
may determine to be appropriate, a model statute to carry out
the goals described in subsection (a) which would include the
following:
(1) LICENSING
REQUIREMENTS.—A requirement that any
business described in subsection (a)(1) be licensed and regulated
by an appropriate State agency in order to engage in any
such activity within the State.
(2) LICENSING STANDARDS.—A requirement that—
(A) in order for any business described in subsection
(a)(1) to be licensed in the State, the appropriate State
agency shall review and approve—
(i) the business record and the capital adequacy
of the business seeking the license; and
(ii) the competence, experience, integrity, and
financial ability of any individual who—
(I) is a director, officer, or supervisory
employee of such business; or
(II) owns or controls such business; and
(B) any record, on the part of any business seeking
the license or any person referred to in subparagraph
(A)(ii), of—
(i) any criminal activity;
(ii) any fraud or other act of personal dishonesty;
(iii) any act, omission, or practice which constitutes
a breach of a fiduciary duty; or
(iv) any suspension or removal, by any agency
or department of the United States or any State, from
participation in the conduct of any federally or State
licensed or regulated business,
may be grounds for the denial of any such license by
the appropriate State agency.
(3) REPORTING REQUIREMENTS.—A requirement that any
business described in subsection (a)(1)—
(A) disclose to the appropriate State agency the fees
charged to consumers for services described in subsection
(a)(1)(A); and
(B) conspicuously disclose to the public, at each location
of such business, the fees charged to consumers for such
services.
(4) PROCEDURES
TO
ENSURE
COMPLIANCE
WITH
FEDERAL
CASH TRANSACTION REPORTING REQUIREMENTS.—A civil or crimi-
nal penalty for operating any business referred to in paragraph
(1) without establishing and complying with appropriate proce-
dures to ensure compliance with subchapter II of chapter 53
of title 31, United States Code (relating to records and reports
on monetary instruments transactions).