I
103D CONGRESS
1ST SESSION
H. R. 3385
To protect the integrity of the Nation’s financial system from international
counterfeiting and economic terrorism, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 27, 1993
Mr. LEACH (for himself and Mr. BACHUS of Alabama) introduced the follow-
ing bill; which was referred jointly to the Committees on Banking, Fi-
nance and Urban Affairs, Foreign Affairs, and the Judiciary
A BILL
To protect the integrity of the Nation’s financial system
from international counterfeiting and economic terrorism,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘International Counter-
feiting Deterrence Act of 1993’’.
SEC. 2. INTERNATIONAL COUNTERFEITING DETERRENCE
STRIKE FORCE.
(a) ESTABLISHMENT.—There is hereby established
the International Counterfeiting Deterrence Strike Force
(hereafter in this Act referred to as the ‘‘Strike Force’’).
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Strike Force shall be
composed of 9 members as follows:
(A) The Secretary of the Treasury or a
designee of the Secretary.
(B) The Director of the Bureau of Engrav-
ing and Printing or a designee of the Director.
(C) The Chairman of the Board of Gov-
ernors of the Federal Reserve System or a des-
ignee of the Chairman.
(D) The Director of the United States Se-
cret Service or a designee of the Director.
(E) The Director of the Federal Bureau of
Investigation or a designee of the Director.
(F) The Director of the Central Intel-
ligence Agency or a designee of the Director.
(G) The Secretary of State or a designee
of the Secretary.
(H) The Attorney General or a designee of
the Attorney General.
(I) The Assistant Secretary of the Treas-
ury for Enforcement.
(2) CHAIRPERSON.—The Chairperson of the
Strike Force shall be the Secretary of the Treasury.
(c) DUTIES.—
(1) IN GENERAL.—The Strike Force shall—
(A) assess the extent to which United
States currency is being counterfeited outside
the United States and the manner in which,
and the countries in which, such counterfeiting
takes place;
(B) assess the probable effect of such
counterfeiting on the United States and other
countries and the extent to which such activities
pose a threat to the domestic economy of the
United States, the payment system, and United
States financial institutions; and
(C) assess the extent to which counterfeit-
ing of United States currency which is engaged
in within and without the United States is mo-
tivated by economic terrorism with the intent to
disrupt the economy.
(2) INTERNATIONAL COOPERATION AND AGREE-
MENTS.—The Strike Force shall—
(A) consider various means for achieving
greater international coordination and coopera-
tion in combating counterfeiting which occurs
outside of the country whose currency is the ob-
ject of the counterfeit; and
(B) 
propose 
international 
agreements
which the Strike Force considers appropriate
for achieving such coordination and coopera-
tion.
(3) ANNUAL REPORT.—The Strike Force shall
submit an annual report to the Congress on the
state of counterfeiting of United States currency in
the world and the activities of the Strike Force
under this section for the year covered by the report.
(d) EXECUTIVE DIRECTOR.—The Secretary of the
Treasury shall appoint an executive director of the Strike
Force from among employees of the Department of the
Treasury.
(e) NO ADDITIONAL PAY OR BENEFITS.—No officer
or employee of the Federal Government shall be entitled
to any additional pay or benefits by reason of service with
the Strike Force.
(f) COSTS AND EXPENSES.—The costs and expenses
incurred by the Strike Force after September 30, 1993,
shall be shared on a pro rata basis by the agencies and
department’s represented on the Strike Force on the basis
of each such agency’s or department’s total budget for the
preceding fiscal year.
(g) ASSISTANCE
FROM
OTHER
AGENCIES.—The
head of any element of the intelligence community and the
Secretary of Defense may provide the Strike Force with
such assistance as is appropriate to assist the Strike Force
in carrying out its functions.
SEC. 3. STUDIES OF COUNTERFEIT DETERRENCE AND EN-
HANCED 
DETECTION 
AND 
ENFORCEMENT
TECHNIQUES.
(a) IN GENERAL.—The Strike Force shall conduct a
study of all available technological devices and methods
which may be used to enhance detection and enforcement
techniques and procedures.
(b) FACTORS TO BE STUDIED.—The study conducted
under subsection (a) shall include a study of—
(1) various types of fibers, planchettes, optically
variable ink, watermarks, and optically variable de-
vices which may be used in producing currency;
(2) various methods for achieving thread en-
hancement in currency;
(3) various means for redesigning images on
currency;
(4) other actions which may be taken to deter
the counterfeiting of United States currency;
(5) how much counterfeit currency has been de-
tected by the United States Government, including
the Board of Governors of the Federal Reserve Sys-
tem, and how much cost has been incurred by the
United States Government, including such Board,
with respect to counterfeit currency which has been
detected;
(6) methods and technologies that may be used
in the production of Federal reserve notes—
(A) to make such notes traceable through
the use of a scanning device; and
(B) to reduce the likelihood that the coun-
terfeiting of such notes can be achieved through
the use of color copying machines; and
(7) prudent measures which can be taken to
prevent the counterfeiting of United States currency
and to more readily identify circulating currency as
counterfeit.
(c) STUDY OF USES OF U.S. CURRENCY OVERSEAS
AND CORRELATION OF SUCH USES WITH COUNTERFEIT-
ING.—The Strike Force shall conduct a study of—
(1) the extent of the demand for United States
currency in other countries;
(2) the reasons why United States currency is
obtained and used in such countries;
(3) the extent to which such demand or use in-
volves $100 Federal reserve notes or any other par-
ticular denomination; and
(4) the merits of abolishing $100 Federal re-
serve notes or producing such notes in a different
form or manner or with a different design as a de-
terrence to international counterfeiting.
(d) REPORT.—
(1) IN GENERAL.—Before the end of the 18-
month period beginning on the date of the enact-
ment of this Act, the Strike Force shall submit a re-
port to the Committee on Banking, Finance and
Urban Affairs of the House of Representatives and
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate on the results of the studies con-
ducted pursuant to subsections (a) and (c).
(2) TREATMENT OF CERTAIN INFORMATION.—
If the Strike force determines that the inclusion of
any information in the report required under para-
graph (1) could reasonably be expected to interfere
with enforcement activities relating to counterfeiting
or to disclose technical information which would be
useful to persons engaged in counterfeiting, the in-
formation shall not be included in the report and
shall be made available to the committees described
in such paragraph in a form other than as a public
document.
SEC. 4. CHANGES IN DESIGN OF CURRENCY.
Section 5114 of title 31, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(d) CHANGES IN DESIGN OF CURRENCY.—
‘‘(1) CURRENCY
DESIGN
COMMISSION.—There
is hereby established the Currency Design Commis-
sion consisting of the Secretary of the Treasury, the
Chairman of the Board of Governors of the Federal
Reserve System, and the Director of the Bureau of
Engraving and Printing, the chairperson of which
shall be the Secretary of the Treasury.
‘‘(2) DESIGN CHANGES.—If any member of the
Currency Design Commission proposes that Federal
reserve notes of any denomination or any other
United States currency be redesigned, reformulated,
or otherwise produced in a different form or manner
for counterfeit deterrence purposes, and 1 other
member of the Commission concurs in such pro-
posal, the Secretary of the Treasury shall redesign,
reformulate, or otherwise produce such notes or
other currency in accordance with such proposal.
‘‘(3) ANCILLARY
ACTIONS.—The Secretary of
the Treasury shall take such other action under this
section and other provisions of law as may be nec-
essary to carry out the requirement of paragraph
(2).’’.
SEC. 5. FOREIGN OFFICES AUTHORIZED.
For purposes of carrying out this Act and to assist
any agency or department which is represented on the
Strike Force in any investigation or enforcement action
with respect to international counterfeiting, the Strike
Force may maintain offices outside the United States.
SEC. 6. ANTICOUNTERFEITING TRAINING TEAM.
The Director of the United States Secret Service, in
consultation with the other members of the Strike Force,
shall establish a team of experts to assist and provide
training to foreign governments, and agencies and depart-
ments of foreign governments, in developing and expand-
ing any such government’s, agency’s, or department’s ca-
pabilities for detecting counterfeited currency, in general,
and for investigating and prosecuting activities involving
counterfeiting.
SEC. 7. NEGOTIATIONS WITH COUNTRIES IN WHICH A SIG-
NIFICANT AMOUNT OF COUNTERFEITING OF
U.S. CURRENCY OCCURS.
(a) NEGOTIATIONS.—The Chairperson of the Strike
Force (hereafter in this section referred to as the ‘‘Chair-
person’’) shall seek to enter into negotiations with appro-
priate officials of any foreign country which the Chair-
person, in consultation with the heads of the other agen-
cies and departments represented on the Strike Force, has
reason to believe is a country in which a significant
amount of United States currency is counterfeited to nego-
tiate 1 or more international agreements with such coun-
try to—
(1) share information and technical expertise to
facilitate the detection of counterfeit currency of
such country or the United States within such coun-
try or the United States and the prosecution of the
parties responsible for such activity; and
(2) ensure cooperation between the law enforce-
ment officers of each party to the international
agreement in the investigation and prosecution of
counterfeiting activities.
(b) REPORTS.—
(1) INTERIM REPORT.—Before the end of the 1-
year period beginning on the date of the enactment
of this Act, the Chairperson shall submit an interim
report to the Committee on Banking, Finance and
Urban Affairs of the House of Representatives and
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate on any negotiations in which the
Chairperson is engaged pursuant to subsection (a)
and the progress in such negotiations.
(2) FINAL REPORT.—Before the end of the 2-
year period beginning on the date of the enactment
of this Act, the Chairperson shall submit a final re-
port to the President, the Committee on Banking,
Finance and Urban Affairs of the House of Rep-
resentatives, and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate on the outcome
of negotiations pursuant to subsection (a).
(3) 
IDENTIFICATION
OF
SUSPECT
COUN-
TRIES.—The final report submitted under paragraph
(2) shall identify each foreign country which—
(A) the Chairperson, in consultation with
the heads of the other agencies and depart-
ments represented on the Strike Force, has rea-
son to believe is a country in which a significant
amount of United States currency is counter-
feited; and
(B) has not reached an agreement de-
scribed in paragraphs (1) and (2) of subsection
(a) with the Chairperson.
(c) AUTHORITY OF THE PRESIDENT.—
(1) IN GENERAL.—If, after the end of the 2-
year period beginning on the date of the enactment
of this Act, the President determines, after consulta-
tion with the head of each agency or department
represented on the Strike Force, that a foreign
country—
(A) is a country in which a significant
amount of United States currency is counter-
feited;
(B) has not entered into an agreement de-
scribed in subsection (b) with the United
States; and
(C) is not negotiating in good faith to
reach any such agreement,
the President may take any action described in para-
graph (2) with respect to such country.
(2) ACTIONS
AUTHORIZED.—The actions de-
scribed in this paragraph are as follows:
(A) Prohibiting, by Executive order, Fed-
eral reserve banks, depository institutions, and
all other persons engaged within the United
States in the transfer of funds by any means,
including clearing checks, from—
(i) participating in any transfer of
funds, including wire and electronic funds
transfers, with any person of the foreign
country described in paragraph (1) and
any agency, department, or instrumentality
of the government of such country, includ-
ing the central bank of such country; or
(ii) accepting any deposit from or on
behalf of any such person, agency, depart-
ment, or instrumentality.
(B) Prohibiting, by Executive order, any
person of the foreign country described in para-
graph (1) and any agency, department, or in-
strumentality of the government of such coun-
try, including the central bank of such country,
from—
(i) participating in any wire or elec-
tronic fund transfer of funds with any
Federal reserve bank, depository institu-
tion, or other person within the United
States or otherwise participating in the
payment system in any way; or
SEC. 8. AWARDS AUTHORIZED FOR COUNTERFEITING
CASES.
Section 524(c)(1)(B) of title 28, United States Code,
is amended by striking ‘‘1956 and 1957’’ and inserting
‘‘470 through 492, 1956, and 1957’’.
SEC. 9. COUNTERFEITING UNITED STATES CURRENCY
ABROAD.
(a) IN GENERAL.—Chapter 25 of part I of title 18,
United States Code, is amended by inserting before sec-
tion 471 the following new section:
‘‘§ 470. Counterfeit acts committed outside the United
States
‘‘Whoever, outside the United States, engages in the
act of—
‘‘(1) making, dealing, or possessing any coun-
terfeit obligation or other security of the United
States; or
‘‘(2) making, dealing, or possessing any plate,
stone, digital information, or other thing, or any
part thereof, used to counterfeit such obligation or
security,
if such act would constitute a violation of section 471, 473,
or 474 of this title, if committed within the United States,
shall be fined under this title, imprisoned for not more
than 15 years, or both.’’.
(b) CLERICAL AMENDMENTS.—
(1) TABLE OF SECTIONS.—The table of sections
for chapter 25 of part I of title 18, United States
Code, is amended by inserting before the item relat-
ing to section 471 the following new item:
‘‘470. Counterfeit acts committed outside the United States.’’.
(2) TABLE OF CHAPTERS.—The table of chap-
ters for part I of title 18, United States Code, is
amended by striking the item relating to chapter 25
and inserting the following new item:
‘‘25. Counterfeiting and forgery ...................................................
470’’.
SEC. 10. SANCTIONS AGAINST STATE-SUPPORTED COUN-
TERFEITING.
(a) RECOMMENDATIONS
OF STRIKE FORCE.—The
Strike Force shall consider and recommend to the Con-
gress and the President sanctions which the Strike Force
determines to be appropriate against any foreign country
the government of which—
(1) engages in counterfeiting or other activities
in violation of section 470 of title 18, United States
Code; or
(2) knowingly or recklessly permits such coun-
terfeiting or activity to occur within such country
without conducting reasonably diligent investigations
or prosecutions of the persons or governmental units
involved in such conduct.
(b) PROHIBITION ON EX-IM BANK SUPPORT FOR
COUNTRIES
WHICH
SUPPORT
COUNTERFEITING
OF
UNITED STATES CURRENCY.—Section 2(b) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635(b)) is amended
by adding at the end the following new paragraph:
‘‘(12) PROHIBITION RELATING TO STATE-SUP-
PORTED
COUNTERFEITING.—The Bank may not
guarantee, insure, extend (or participate in the ex-
tension of) credit in connection with the export of
any good (other than food or an agricultural com-
modity) or service to any country if the President
determines that the government of such country—
‘‘(A) engages in counterfeiting or other ac-
tivities in violation of section 470 of title 18,
United States Code; or
‘‘(B) knowingly or recklessly permits such
counterfeiting or activity to occur within such
country without conducting reasonably diligent
investigations or prosecutions of the persons or
governmental units involved in such conduct.’’.
(c) LICENSE REQUIREMENT
FOR COUNTRIES IN-
VOLVED IN STATE-SUPPORTED COUNTERFEITING.—Sec-
tion 6(j)(1) of the Export Administration Act of 1979 (50
U.S.C. App. 2405) is amended by adding at the end the
following subparagraph:
‘‘(C) The government of such country—
‘‘(i) engages in counterfeiting or other
activities in violation of section 470 of title
18, United States Code; or
‘‘(ii) knowingly or recklessly permits
such counterfeiting or other activity to
occur within such country without conduct-
ing reasonably diligent investigations or
prosecutions of the persons or govern-
mental units involved in such conduct.’’.
(d) PROHIBITION
ON
FOREIGN
ASSISTANCE
TO
COUNTRIES INVOLVED IN STATE-SUPPORTED COUNTER-
FEITING.—Chapter 1 of part III of the Foreign Assistance
Act of 1961 (22 U.S.C. 2351 et seq.) is amended by in-
serting after section 620A the following new section:
‘‘SEC. 620B. PROHIBITION ON FOREIGN ASSISTANCE TO
COUNTRIES INVOLVED IN STATE-SUPPORTED
COUNTERFEITING.
‘‘The United States shall not provide any assistance
under this Act, the Agricultural Trade Development and
Assistance Act of 1954, or the Peace Corps Act to any
country if the President determines that the government
of such country—
‘‘(1) engages in counterfeiting or other activi-
ties in violation of section 470 of title 18, United
States Code; or
‘‘(2) knowingly or recklessly permits such coun-
terfeiting or activity to occur within such country
without conducting reasonably diligent investigations
or prosecutions of the persons or governmental units
involved in such conduct.’’.
Æ
HR 3385 IH——2