H. R. 1756—4
‘‘(8) any other State or local government authority, to the
extent appropriate;
‘‘(9) any other Federal Government authority or instrumen-
tality, to the extent appropriate; and
‘‘(10) representatives of the private financial services sector,
to the extent appropriate.
‘‘§ 5342. High-risk money laundering and related financial
crime areas
‘‘(a) FINDINGS AND PURPOSE.—
‘‘(1) FINDINGS.—The Congress finds the following:
‘‘(A) Money laundering and related financial crimes
frequently appear to be concentrated in particular
geographic areas, financial systems, industry sectors, or
financial institutions.
‘‘(B) While the Secretary has the responsibility to act
with regard to Federal offenses which are being committed
in a particular locality or are directed at a single institu-
tion, because modern financial systems and institutions
are interconnected to a degree which was not possible
until recently, money laundering and other related finan-
cial crimes are likely to have local, State, national, and
international effects wherever they are committed.
‘‘(2) PURPOSE AND OBJECTIVE.—It is the purpose of this
section to provide a mechanism for designating any area where
money laundering or a related financial crime appears to be
occurring at a higher than average rate such that—
‘‘(A) a comprehensive approach to the problem of such
crime in such area can be developed, in cooperation with
State and local law enforcement agencies, which utilizes
the authority of the Secretary to prevent such activity;
or
‘‘(B) such area can be targeted for law enforcement
action.
‘‘(b) ELEMENT OF NATIONAL STRATEGY.—The designation of cer-
tain areas as areas in which money laundering and related financial
crimes are extensive or present a substantial risk shall be an
element of the national strategy developed pursuant to section
5341(b).
‘‘(c) DESIGNATION OF AREAS.—
‘‘(1) DESIGNATION BY SECRETARY.—The Secretary, after tak-
ing into consideration the factors specified in subsection (d),
shall designate any geographical area, industry, sector, or
institution in the United States in which money laundering
and related financial crimes are extensive or present a substan-
tial risk as a ‘high-risk money laundering and related financial
crimes area’.
‘‘(2) CASE-BY-CASE DETERMINATION IN CONSULTATION WITH
THE ATTORNEY GENERAL.—In addition to the factors specified
in subsection (d), any designation of any area under paragraph
(1) shall be made on the basis of a determination by the
Secretary, in consultation with the Attorney General, that the
particular area, industry, sector, or institution is being victim-
ized by, or is particularly vulnerable to, money laundering
and related financial crimes.
‘‘(3) SPECIFIC
INITIATIVES.—Any head of a department,
bureau, or law enforcement agency, including any State or
H. R. 1756—5
local prosecutor, involved in the detection, prevention, and
suppression of money laundering and related financial crimes
and any State or local official or prosecutor may submit—
‘‘(A) a written request for the designation of any area
as a high-risk money laundering and related financial
crimes area; or
‘‘(B) a written request for funding under section 5351
for a specific prevention or enforcement initiative, or to
determine the extent of financial criminal activity, in an
area.
‘‘(d) FACTORS.—In considering the designation of any area as
a high-risk money laundering and related financial crimes area,
the Secretary shall, to the extent appropriate and in consultation
with the Attorney General, take into account the following factors:
‘‘(1) The population of the area.
‘‘(2) The number of bank and nonbank financial institution
transactions which originate in such area or involve institutions
located in such area.
‘‘(3) The number of stock or commodities transactions which
originate in such area or involve institutions located in such
area.
‘‘(4) Whether the area is a key transportation hub with
any international ports or airports or an extensive highway
system.
‘‘(5) Whether the area is an international center for banking
or commerce.
‘‘(6) The extent to which financial crimes and financial
crime-related activities in such area are having a harmful
impact in other areas of the country.
‘‘(7) The number or nature of requests for information
or analytical assistance which—
‘‘(A) are made to the analytical component of the
Department of the Treasury; and
‘‘(B) originate from law enforcement or regulatory
authorities located in such area or involve institutions or
businesses located in such area or residents of such area.
‘‘(8) The volume or nature of suspicious activity reports
originating in the area.
‘‘(9) The volume or nature of currency transaction reports
or reports of cross-border movements of currency or monetary
instruments originating in, or transported through, the area.
‘‘(10) Whether, and how often, the area has been the subject
of a geographical targeting order.
‘‘(11) Observed changes in trends and patterns of money
laundering activity.
‘‘(12) Unusual patterns, anomalies, growth, or other
changes in the volume or nature of core economic statistics
or indicators.
‘‘(13) Statistics or indicators of unusual or unexplained
volumes of cash transactions.
‘‘(14) Unusual patterns, anomalies, or changes in the vol-
ume or nature of transactions conducted through financial
institutions operating within or outside the United States.
‘‘(15) The extent to which State and local governments
and State and local law enforcement agencies have committed
resources to respond to the financial crime problem in the
area and the degree to which the commitment of such resources
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reflects a determination by such government and agencies to
address the problem aggressively.
‘‘(16) The extent to which a significant increase in the
allocation of Federal resources to combat financial crimes in
such area is necessary to provide an adequate State and local
response to financial crimes and financial crime-related activi-
ties in such area.
‘‘PART 2—FINANCIAL CRIME-FREE COMMUNITIES SUPPORT PROGRAM
‘‘§ 5351. Establishment of financial crime-free communities
support program
‘‘(a) ESTABLISHMENT.—The Secretary of the Treasury, in con-
sultation with the Attorney General, shall establish a program
to support local law enforcement efforts in the development and
implementation of a program for the detection, prevention, and
suppression of money laundering and related financial crimes.
‘‘(b) PROGRAM.—In carrying out the program, the Secretary
of the Treasury, in consultation with the Attorney General, shall—
‘‘(1) make and track grants to grant recipients;
‘‘(2) provide for technical assistance and training, data
collection, and dissemination of information on state-of-the-
art practices that the Secretary determines to be effective in
detecting, preventing, and suppressing money laundering and
related financial crimes; and
‘‘(3) provide for the general administration of the program.
‘‘(c) ADMINISTRATION.—The Secretary shall appoint an adminis-
trator to carry out the program.
‘‘(d) CONTRACTING.—The Secretary may employ any necessary
staff and may enter into contracts or agreements with Federal
and State law enforcement agencies to delegate authority for the
execution of grants and for such other activities necessary to carry
out this chapter.
‘‘§ 5352. Program authorization
‘‘(a) GRANT ELIGIBILITY.—To be eligible to receive an initial
grant or a renewal grant under this part, a State or local law
enforcement agency or prosecutor shall meet each of the following
criteria:
‘‘(1) APPLICATION.—The State or local law enforcement
agency or prosecutor shall submit an application to the Sec-
retary in accordance with section 5353(a)(2).
‘‘(2) ACCOUNTABILITY.—The State or local law enforcement
agency or prosecutor shall—
‘‘(A) establish a system to measure and report out-
comes—
‘‘(i) consistent with common indicators and evalua-
tion protocols established by the Secretary, in consulta-
tion with the Attorney General; and
‘‘(ii) approved by the Secretary;
‘‘(B) conduct biennial surveys (or incorporate local sur-
veys in existence at the time of the evaluation) to measure
the progress and effectiveness of the coalition; and
‘‘(C) provide assurances that the entity conducting an
evaluation under this paragraph, or from which the
applicant receives information, has experience in gathering
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data related to money laundering and related financial
crimes.
‘‘(b) GRANT AMOUNTS.—
‘‘(1) GRANTS.—
‘‘(A) IN
GENERAL.—Subject to subparagraph (D), for
a fiscal year, the Secretary of the Treasury, in consultation
with the Attorney General, may grant to an eligible
applicant under this section for that fiscal year, an amount
determined by the Secretary of the Treasury, in consulta-
tion with the Attorney General, to be appropriate.
‘‘(B) SUSPENSION OF GRANTS.—If such grant recipient
fails to continue to meet the criteria specified in subsection
(a), the Secretary may suspend the grant, after providing
written notice to the grant recipient and an opportunity
to appeal.
‘‘(C) RENEWAL GRANTS.—Subject to subparagraph (D),
the Secretary may award a renewal grant to a grant recipi-
ent under this subparagraph for each fiscal year following
the fiscal year for which an initial grant is awarded.
‘‘(D) LIMITATION.—The amount of a grant award under
this paragraph may not exceed $750,000 for a fiscal year.
‘‘(2) GRANT AWARDS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary may, with respect to a community, make
a grant to one eligible applicant that represents that
community.
‘‘(B) EXCEPTION.—The Secretary may make a grant
to more than one eligible applicant that represent a commu-
nity if—
‘‘(i) the eligible coalitions demonstrate that the
coalitions are collaborating with one another; and
‘‘(ii) each of the coalitions has independently met
the requirements set forth in subsection (a).
‘‘(c) CONDITION RELATING
TO PROCEEDS
OF ASSET FORFEIT-
URES.—
‘‘(1) IN GENERAL.—No grant may be made or renewed under
this part to any State or local law enforcement agency or
prosecutor unless the agency or prosecutor agrees to donate
to the Secretary of the Treasury for the program established
under this part any amount received by such agency or prosecu-
tor (after the grant is made) pursuant to any criminal or
civil forfeiture under chapter 46 of title 18, United States
Code, or any similar provision of State law.
‘‘(2) SCOPE OF APPLICATION.—Paragraph (1) shall not apply
to any amount received by a State or local law enforcement
agency or prosecutor pursuant to any criminal or civil forfeiture
referred to in such paragraph in excess of the aggregate amount
of grants received by such agency or prosecutor under this
part.
‘‘(d) ROLLING GRANT APPLICATION PERIODS.—In establishing
the program under this part, the Secretary shall take such action
as may be necessary to ensure, to the extent practicable, that—
‘‘(1) applications for grants under this part may be filed
at any time during a fiscal year; and
‘‘(2) some portion of the funds appropriated under this
part for any such fiscal year will remain available for grant
applications filed later in the fiscal year.