(II) owns or controls such busi-
ness;
(B) as a condition for the issuance and
continued validity of the license the business
may not impose, charge, or collect any fee for
cashing or redeeming any travelers’ check,
check, money order or similar instrument in ex-
cess of the amount which is equal to the greater
of—
(i) an amount equal to 1.5 per-
cent of the face amount of such check
or money order (not to exceed $8); or
(ii) 50 cents; and
(C) 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,
be grounds for the denial of any such license 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, within the State, any business re-
ferred to in paragraph (1) after the effective date of
the model statute without a license issued 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 1-year period beginning after
the end of such period, the Secretary of the Treasury shall
submit a report to the Congress containing the findings
and recommendations of the Secretary in connection with
the study under subsection (c), together with such rec-
ommendations for legislative and administrative action as
the Secretary may determine to be appropriate, including
any recommendation pursuant to subsection (e).
(e) RECOMMENDATIONS FOR INCENTIVES OR SANC-
TIONS IN CASES OF INADEQUATE REGULATION AND EN-
FORCEMENT BY STATES.—If the Secretary of the Treas-
ury determines that any State has failed—
(1) to enact a statute which meets the require-
ments described in subsection (b);
(2) to undertake adequate activity to enforce
such statute; or
(3) to 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 for legislation establishing incen-
tives which may be provided or sanctions which may be
imposed to remedy such failure.
Æ