H. R. 1756
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-eight
An Act
To amend chapter 53 of title 31, United States Code, to require the development
and implementation by the Secretary of the Treasury of a national money launder-
ing and related financial crimes strategy to combat money laundering and related
financial crimes, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Money Laundering and Financial
Crimes Strategy Act of 1998’’.
SEC. 2. MONEY LAUNDERING AND RELATED FINANCIAL CRIMES.
(a) IN GENERAL.—Chapter 53 of title 31, United States Code
is amended by adding at the end the following new subchapter:
‘‘SUBCHAPTER III—MONEY LAUNDERING AND RELATED
FINANCIAL CRIMES
‘‘§ 5340. Definitions
‘‘For purposes of this subchapter, the following definitions shall
apply:
‘‘(1) DEPARTMENT
OF
THE
TREASURY
LAW
ENFORCEMENT
ORGANIZATIONS.—The term ‘Department of the Treasury law
enforcement organizations’ has the meaning given to such term
in section 9703(p)(1).
‘‘(2) MONEY LAUNDERING AND RELATED FINANCIAL CRIME.—
The term ‘money laundering and related financial crime’—
‘‘(A) means the movement of illicit cash or cash equiva-
lent proceeds into, out of, or through the United States,
or into, out of, or through United States financial institu-
tions, as defined in section 5312 of title 31, United States
Code; or
‘‘(B) has the meaning given that term (or the term
used for an equivalent offense) under State and local crimi-
nal statutes pertaining to the movement of illicit cash
or cash equivalent proceeds.
‘‘(3) SECRETARY.—The term ‘Secretary’ means the Secretary
of the Treasury.
‘‘(4) ATTORNEY
GENERAL.—The term ‘Attorney General’
means the Attorney General of the United States.
H. R. 1756—2
‘‘PART 1—NATIONAL MONEY LAUNDERING AND RELATED FINANCIAL
CRIMES STRATEGY
‘‘§ 5341. National money laundering and related financial
crimes strategy
‘‘(a) DEVELOPMENT AND TRANSMITTAL TO CONGRESS.—
‘‘(1) DEVELOPMENT.—The President, acting through the Sec-
retary and in consultation with the Attorney General, shall
develop a national strategy for combating money laundering
and related financial crimes.
‘‘(2) TRANSMITTAL TO CONGRESS.—By February 1 of 1999,
2000, 2001, 2002, and 2003, the President shall submit a
national strategy developed in accordance with paragraph (1)
to the Congress.
‘‘(3) SEPARATE PRESENTATION OF CLASSIFIED MATERIAL.—
Any part of the strategy that involves information which is
properly classified under criteria established by Executive
Order shall be submitted to the Congress separately in classi-
fied form.
‘‘(b) DEVELOPMENT OF STRATEGY.—The national strategy for
combating money laundering and related financial crimes shall
address any area the President, acting through the Secretary and
in consultation with the Attorney General, considers appropriate,
including the following:
‘‘(1) GOALS, OBJECTIVES, AND PRIORITIES.—Comprehensive,
research-based goals, objectives, and priorities for reducing
money laundering and related financial crime in the United
States.
‘‘(2) PREVENTION.—Coordination of regulatory and other
efforts to prevent the exploitation of financial systems in the
United States for money laundering and related financial
crimes, including a requirement that the Secretary shall—
‘‘(A) regularly review enforcement efforts under this
subchapter and other provisions of law and, when appro-
priate, modify existing regulations or prescribe new regula-
tions for purposes of preventing such criminal activity;
and
‘‘(B) coordinate prevention efforts and other enforce-
ment action with the Board of Governors of the Federal
Reserve System, the Securities and Exchange Commission,
the Federal Trade Commission, other Federal banking
agencies, the National Credit Union Administration Board,
and such other Federal agencies as the Secretary, in con-
sultation with the Attorney General, determines to be
appropriate.
‘‘(3) DETECTION AND PROSECUTION INITIATIVES.—A descrip-
tion of operational initiatives to improve detection and prosecu-
tion of money laundering and related financial crimes and
the seizure and forfeiture of proceeds and instrumentalities
derived from such crimes.
‘‘(4) ENHANCEMENT OF THE ROLE OF THE PRIVATE FINANCIAL
SECTOR
IN
PREVENTION.—The enhancement of partnerships
between the private financial sector and law enforcement agen-
cies with regard to the prevention and detection of money
laundering and related financial crimes, including providing
incentives to strengthen internal controls and to adopt on an
industrywide basis more effective policies.
H. R. 1756—3
‘‘(5) ENHANCEMENT
OF
INTERGOVERNMENTAL
COOPERA-
TION.—The enhancement of—
‘‘(A) cooperative efforts between the Federal Govern-
ment and State and local officials, including State and
local prosecutors and other law enforcement officials; and
‘‘(B) cooperative efforts among the several States and
between State and local officials, including State and local
prosecutors and other law enforcement officials,
for financial crimes control which could be utilized or should
be encouraged.
‘‘(6) PROJECT AND BUDGET PRIORITIES.—A 3-year projection
for program and budget priorities and achievable projects for
reductions in financial crimes.
‘‘(7) ASSESSMENT OF FUNDING.—A complete assessment of
how the proposed budget is intended to implement the strategy
and whether the funding levels contained in the proposed
budget are sufficient to implement the strategy.
‘‘(8) DESIGNATED
AREAS.—A description of geographical
areas designated as ‘high-risk money laundering and related
financial crime areas’ in accordance with, but not limited to,
section 5342.
‘‘(9) PERSONS
CONSULTED.—Persons or officers consulted
by the Secretary pursuant to subsection (d).
‘‘(10) DATA REGARDING TRENDS IN MONEY LAUNDERING AND
RELATED FINANCIAL CRIMES.—The need for additional informa-
tion necessary for the purpose of developing and analyzing
data in order to ascertain financial crime trends.
‘‘(11) IMPROVED
COMMUNICATIONS
SYSTEMS.—A plan for
enhancing the compatibility of automated information and
facilitating access of the Federal Government and State and
local governments to timely, accurate, and complete informa-
tion.
‘‘(c) EFFECTIVENESS REPORT.—At the time each national strat-
egy for combating financial crimes is transmitted by the President
to the Congress (other than the first transmission of any such
strategy) pursuant to subsection (a), the Secretary shall submit
a report containing an evaluation of the effectiveness of policies
to combat money laundering and related financial crimes.
‘‘(d) CONSULTATIONS.—In addition to the consultations required
under this section with the Attorney General, in developing the
national strategy for combating money laundering and related
financial crimes, the Secretary shall consult with—
‘‘(1) the Board of Governors of the Federal Reserve System
and other Federal banking agencies and the National Credit
Union Administration Board;
‘‘(2) State and local officials, including State and local
prosecutors;
‘‘(3) the Securities and Exchange Commission;
‘‘(4) the Commodities and Futures Trading Commission;
‘‘(5) the Director of the Office of National Drug Control
Policy, with respect to money laundering and related financial
crimes involving the proceeds of drug trafficking;
‘‘(6) the Chief of the United States Postal Inspection Serv-
ice;
‘‘(7) to the extent appropriate, State and local officials
responsible for financial institution and financial market regu-
lation;