(2) provide sufficient resources to the appro-
priate State agency to enforce such laws and regula-
tions prescribed pursuant to such laws.
(b) MODEL STATUTE.—It is the sense of the Con-
gress 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 appro-
priate, a model statute to carry out the goals described
in subsection (a) which would include the following:
(1) LICENSING
REQUIREMENTS.—A require-
ment 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 ap-
prove—
(i) the business record, the fee struc-
ture, and the capital adequacy of the busi-
ness seeking the license; and
(ii) the competence, experience, integ-
rity, and financial ability of any individual
who—
(I) is a director, officer, or super-
visory employee of such business; or
(II) owns or controls such busi-
ness; 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 con-
duct of any federally or State licensed or
regulated business,
may be grounds for the denial of any such li-
cense by the appropriate State agency.
(3) PROCEDURES
TO
ENSURE
COMPLIANCE
WITH FEDERAL CASH TRANSACTION REPORTING RE-
QUIREMENTS.—A civil or criminal penalty for oper-
ating any business referred to in paragraph (1)
without establishing and complying with appropriate
procedures to ensure compliance with subchapter II
of chapter 53 of title 31, United States Code (relat-
ing to records and reports on monetary instruments
transactions).
(4) CRIMINAL PENALTIES FOR OPERATION OF
BUSINESS WITHOUT A LICENSE.—A criminal penalty
for operating any business referred to in paragraph
(1) without a license within the State after the end
of an appropriate transition period beginning on the
date of the enactment of such model statute by the
State.
(c) STUDY REQUIRED.—The Secretary of the Treas-
ury shall conduct a study of—
(1) the progress made by the several States in
developing and enacting a model statute which—
(A) meets the requirements of subsection
(b); and
(B) furthers the goals of—
(i) preventing money laundering by
businesses which are required to be li-
censed under any such statute; and
(ii) protecting the payment system, in-
cluding the receipt, payment, collection,
and clearing of checks, from fraud and
abuse by such businesses; and
(2) the adequacy of—
(A) the activity of the several States in en-
forcing the requirements of such statute; and
(B) the resources made available to the ap-
propriate State agencies for such enforcement
activity.
(d) REPORT REQUIRED.—Before the end of the 3-
year period beginning on the date of the enactment of this
Act and by the end of each of the first 2 1-year periods
beginning after the end of such 3-year period, the Sec-
retary of the Treasury shall submit a report to the Con-
gress containing the findings and recommendations of the
Secretary in connection with the study under subsection
(c), together with such recommendations for legislative
and administrative action as the Secretary may determine
to be appropriate.
(e) RECOMMENDATIONS IN CASES OF INADEQUATE
REGULATION AND ENFORCEMENT BY STATES.—If the
Secretary of the Treasury determines that any State has
been unable to—
(1) enact a statute which meets the require-
ments described in subsection (b);
(2) undertake adequate activity to enforce such
statute; or
(3) make adequate resources available to the
appropriate State agency for such enforcement activ-
ity,
the report submitted pursuant to subsection (d) shall con-
tain recommendations of the Secretary which are designed
to facilitate the enactment and enforcement by the State
of such a statute.
(f) FEDERAL FUNDING STUDY.—
(1) STUDY REQUIRED.—The Secretary of the
Treasury shall conduct a study to identify possible
available sources of Federal funding to cover costs
which will be incurred by the States in carrying out
the purposes of this section.
(2) REPORT.—The Secretary of the Treasury
shall submit a report to the Congress on the study
conducted pursuant to paragraph (1) before the end
of the 18-month period beginning on the date of the
enactment of this Act.
SEC. 8. REGISTRATION OF MONEY TRANSMITTING BUSI-
NESSES TO PROMOTE EFFECTIVE LAW EN-
FORCEMENT.
(a) FINDINGS AND PURPOSES.—
(1) FINDINGS.—The Congress hereby finds the
following:
(A) Money transmitting businesses are
subject to the recordkeeping and reporting re-
quirements of subchapter II of chapter 53 of
title 31, United States Code.
(B) Money transmitting businesses are
largely unregulated businesses and are fre-
quently used in sophisticated schemes to—
(i) transfer large amounts of money
which are the proceeds of unlawful enter-
prises; and
(ii) evade the requirements of such
subchapter II, the Internal Revenue Code
of 1986, and other laws of the United
States.
(C) Information on the identity of money
transmitting businesses and the names of the
persons who own or control, or are officers or
employees of, a money transmitting business
would have a high degree of usefulness in crimi-
nal, tax, or regulatory investigations and pro-
ceedings.
(2) PURPOSE.—It is the purpose of this section
to establish a registration requirement for businesses
engaged in providing check cashing, currency ex-
change, or money transmitting or remittance serv-
ices, or issuing or redeeming money orders, travel-
ers’ checks, and other similar instruments to assist
the Secretary of the Treasury, the Attorney General,
and other supervisory and law enforcement agencies
to effectively enforce the criminal, tax, and regu-
latory laws and prevent such money transmitting
businesses from engaging in illegal activities.
(b) IN GENERAL.—Subchapter II of chapter 53 of
title 31, United States Code, is amended by adding at the
end the following new section:
‘‘§ 5329. Registration of money transmitting busi-
nesses
‘‘(a) REGISTRATION
WITH
SECRETARY
OF
THE
TREASURY REQUIRED.—
‘‘(1) IN GENERAL.—Any person who owns or
controls a money transmitting business which is not
a depository institution (as defined in section
19(b)(1)(A) of the Federal Reserve Act) shall reg-
ister the business (whether or not the business is li-
‘‘(1) The name and location of the business.
‘‘(2) The name and address of each person
who—
‘‘(A) owns or controls the business;
‘‘(B) is an director or officer of the busi-
ness; or
‘‘(C) otherwise participates in the conduct
of the affairs of the business.
‘‘(3) The name and address of any depository
institution at which the business maintains a trans-
action account (as defined in section 19(b)(1)(C) of
the Federal Reserve Act).
‘‘(4) An estimate of the volume of business in
the coming year (which shall be reported annually to
the Secretary).
‘‘(5) Such other information as the Secretary of
the Treasury may require.
‘‘(c) AGENTS
OF
MONEY
TRANSMITTING
BUSI-
NESSES.—
‘‘(1) MAINTENANCE OF LISTS OF AGENTS OF
MONEY
TRANSMITTING
BUSINESSES.—Pursuant to
regulations which the Secretary of the Treasury
shall prescribe, each money transmitting business
shall—
‘‘(A) maintain a list containing the names
and addresses of all persons authorized to act
as an agent for such business in connection
with activities described in subsection (d)(1)(A)
and such other information about such agents
as the Secretary may require; and
‘‘(B) make the list and other information
available on request to any appropriate law en-
forcement agency.
‘‘(2) TREATMENT OF AGENT AS MONEY TRANS-
MITTING BUSINESS.—The Secretary of the Treasury
shall prescribe regulations establishing, on the basis
of such criteria as the Secretary determines to be
appropriate, a threshold point for treating an agent
of a money transmitting business as a money trans-
mitting business for purposes of this section.
‘‘(d) DEFINITIONS.—For purposes of this section:
‘‘(1) MONEY
TRANSMITTING
BUSINESS.—The
term ‘money transmitting business’ means any busi-
ness other than the United States Postal Service
which—
‘‘(A) provides check cashing, currency ex-
change, or money transmitting or remittance
services, or issues or redeems money orders,
travelers’ checks, and other similar instruments;
‘‘(B) is required to file reports under sec-
tion 5313; and
‘‘(C) is not a depository institution (as de-
fined in section 19(b)(1)(A) of the Federal Re-
serve Act).
‘‘(2) MONEY
TRANSMITTING
SERVICE.—The
term ‘money transmitting service’ includes accepting
currency or funds denominated in the currency of
any country and transmitting the currency or funds,
or the value of the currency or funds, by any means
through a financial agency or institution, a Federal
reserve bank or other facility of the Board of Gov-
ernors of the Federal Reserve System, or an elec-
tronic funds transfer network.
‘‘(e) CIVIL PENALTY
FOR FAILURE TO COMPLY
WITH REGISTRATION REQUIREMENTS.—
‘‘(1) IN GENERAL.—Any person who fails to
comply with the money transmitting business reg-
istration requirements under subsection (a) or regu-
lations prescribed under such subsection shall be lia-
ble to the United States for a civil penalty of $5,000
for each such violation.
‘‘(2) CONTINUING VIOLATION.—Each day a vio-
lation described in paragraph (1) continues shall
constitute a separate violation for purposes of such
paragraph.
‘‘(3) ASSESSMENTS.—Any penalty imposed
under this subsection shall be assessed and collected
by the Secretary of the Treasury in the manner pro-
vided in section 5321 and any such assessment shall
be subject to the provisions of such section.’’.
(c) CRIMINAL PENALTY FOR FAILURE TO COMPLY
WITH
REGISTRATION
REQUIREMENTS.—Section
1960(b)(1) of title 18, United States Code, is amended
to read as follows:
‘‘(1) the term ‘illegal money transmitting busi-
ness’ means a money transmitting business which
affects interstate or foreign commerce in any man-
ner or degree and—
‘‘(A) is intentionally operated without an
appropriate money transmitting license in a
State where such operation is punishable as a
misdemeanor or a felony under State law; or
‘‘(B) fails to comply with the money trans-
mitting 
business 
registration 
requirements
under section 5329 of title 31, United States
Code, or regulations prescribed under such
section;’’.
(d) CIVIL FORFEITURE.—Section 981(a)(1)(A) of
title 18, United States Code, is amended by striking ‘‘or
of section 1956 or 1957 of this title,’’ and inserting ‘‘,
or of section 1956, 1957, or 1960 of this title,’’.
(e) CLERICAL AMENDMENT.—The table of sections
for chapter 53 of title 31, United States Code, is amended
by inserting after the item relating to section 5328 the
following new item:
‘‘5329. Registration of money transmitting businesses.’’.
SEC. 9. UNIFORM FEDERAL REGULATION OF CASINOS.
AMENDMENT TO DEFINITION OF FINANCIAL INSTI-
TUTION TO SPECIFICALLY INCLUDE CERTAIN CASINOS.—
Section 5312(a)(2) of title 31, United States Code, is
amended—
(1) by redesignating subparagraphs (X) and
(Y) as subparagraphs (Y) and (Z), respectively; and
(2) by inserting after subparagraph (W) the fol-
lowing new subparagraph:
‘‘(X) a casino, gambling casino, or gaming
establishment with an annual gaming revenue
of more than $1,000,000 which—
‘‘(i) is licensed as a casino or gam-
bling casino under the laws of any State or
any political subdivision of any State; or
‘‘(ii) is an Indian gaming operation
conducted under or pursuant to the Indian
Gaming Regulatory Act other than an op-
eration which is limited to class I gaming
(as defined in section 4(6) of such Act);’’.
SEC. 10. UNIFORM FEDERAL ADMINISTRATION OF RECORD-
KEEPING AND REPORTING REQUIREMENTS.
(a) IN GENERAL.—Section 5318 of title 31, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(i) UNIFORM ADMINISTRATION OF SUBCHAPTER.—
‘‘(1) NO
EXEMPTIONS.—No exemption from
any recordkeeping or reporting requirement of this
subchapter, including paragraph (1), or of any regu-
lation prescribed pursuant to this subchapter may be
granted to—
‘‘(A) any State or any political subdivision
of a State on behalf of any financial institution
which but, for such exemption, would be re-
quired to maintain records or file reports under
this subchapter or regulations prescribed by the
Secretary of the Treasury pursuant to this sub-
chapter; or
‘‘(B) any financial institution on the basis
that any State, any political subdivision of any
State, or any officer, agency, or other authority