113
(III) class III Internet gaming ac-
tivities shall be lawful only if such ac-
tivities are—
(aa) located in a State that
permits Internet gambling;
(bb) conducted in conform-
ance with a tribal-State compact
pursuant to section 11(d)(3) of the
Indian Gaming Regulatory Act;
and
(cc) the person placing or
transmitting the wager or bet is
located in a jurisdiction that per-
mits Internet gambling.
(ii) RULE OF CONSTRUCTION.—No pro-
vision of this section shall be construed as
altering, superseding, or otherwise affecting
the application of the Indian Gaming Regu-
latory Act.
(D) BANKING REGULATORS.—Before initi-
ating any proceeding under this paragraph with
respect to a violation or potential violation of
subsection (e) by an insured depository institu-
tion (as defined in section 3 of the Federal De-
posit Insurance Act), the Attorney General of the
114
United States or an attorney general of a State
(or other appropriate State official) shall—
(i) notify the appropriate Federal
banking agency (as defined in such section)
of such violation or potential violation; and
(ii) allow such agency a reasonable
time to issue an order to such insured de-
pository institution under section 8(x) of
the Federal Deposit Insurance Act.
(3) EXPEDITED PROCEEDINGS.—In addition to
any proceeding under paragraph (2), a district court
may, in exigent circumstances, enter a temporary re-
straining order against a person alleged to be in vio-
lation of this section upon application of the United
States under paragraph (2)(A), or the attorney gen-
eral (or other appropriate State official) of an af-
fected State under paragraph (2)(B), in accordance
with Rule 65(b) of the Federal Rules of Civil Proce-
dure.
(4) LIMITATION.—No provision of this section
shall be construed as authorizing an injunction
against an interactive computer service (as defined in
section 230(f) of the Communications Act of 1934)
unless such interactive computer service is acting in
concert or participation with a person who violates
115
this section and such service receives actual notice of
the order.
(d) CRIMINAL PENALTY.—
(1) IN GENERAL.—Whoever violates this section
shall be fined under title 18, United States Code, or
imprisoned for not more than 5 years, or both.
(2) PERMANENT INJUNCTION.—Upon conviction
of a person under this subsection, the court may enter
a permanent injunction enjoining such person from
placing, receiving, or otherwise making bets or wagers
or sending, receiving, or inviting information assist-
ing in the placing of bets or wagers.
(e) CIRCUMVENTIONS PROHIBITED.—Notwithstanding
subsection (b)(2), a creditor, credit card issuer, financial
institution, operator of a terminal at which an electronic
fund transfer may be initiated, money transmitting busi-
ness, or international, national, regional, or local network
utilized to effect a credit transaction, electronic fund trans-
fer, or money transmitting service, or any participant in
such network, may be liable under this section if such cred-
itor, issuer, institution, operator, business, network, or par-
ticipant has actual knowledge and control of bets and
wagers—
(1) operates, manages, supervises, or directs an
Internet website at which unlawful bets or wagers
116
may be placed, received, or otherwise made or at
which unlawful bets or wagers are offered to be
placed, received, or otherwise made; or
(2) owns or controls, or is owned or controlled
by, any person who operates, manages, supervises, or
directs an Internet website at which unlawful bets or
wagers may be placed, received, or otherwise made or
at which unlawful bets or wagers are offered to be
placed, received, or otherwise made.
(f) ENFORCEMENT ACTIONS.—Section 8 of the Federal
Deposit Insurance Act (12 U.S.C. 1818) is amended by add-
ing at the end the following new subsection:
‘‘(x) DEPOSITORY
INSTITUTION
INVOLVEMENT
IN
INTERNET GAMBLING.—If any appropriate Federal bank-
ing agency determines that any insured depository institu-
tion is engaged in any of the following activities, the agency
may issue an order to such institution prohibiting such in-
stitution from continuing to engage in any of the following
activities:
‘‘(1) Extending credit, or facilitating an exten-
sion of credit, electronic fund transfer, or money
transmitting service with the actual knowledge that
any person is violating section 3(a) of the Unlawful
Internet Gambling Funding Prohibition Act in con-
117
nection with such extension of credit, electronic fund
transfer, or money transmitting service.
‘‘(2) Paying, transferring, or collecting on any
check, draft, or other instrument drawn on any depos-
itory institution with the actual knowledge that any
person is violating section 3(a) of the Unlawful Inter-
net Gambling Funding Prohibition Act in connection
with such check, draft, or other instrument.’’.
SEC. 308. INTERNET GAMBLING IN OR THROUGH FOREIGN
JURISDICTIONS.
(a) IN GENERAL.—In deliberations between the United
States Government and any other country on money laun-
dering, corruption, and crime issues, the United States Gov-
ernment should—
(1) encourage cooperation by foreign govern-
ments and relevant international fora in identifying
whether Internet gambling operations are being used
for money laundering, corruption, or other crimes;
(2) advance policies that promote the cooperation
of foreign governments, through information sharing
or other measures, in the enforcement of this Act; and
(3) encourage the Financial Action Task Force
on Money Laundering, in its annual report on money
laundering typologies, to study the extent to which
118
Internet gambling operations are being used for
money laundering.
(b) REPORT REQUIRED.—The Secretary of the Treas-
ury shall submit an annual report to the Congress on the
deliberations between the United States and other countries
on issues relating to Internet gambling.
TITLE IV—CURRENCY
PROTECTION
SEC. 401. COUNTERFEITING DOMESTIC CURRENCY AND OB-
LIGATIONS.
(a) COUNTERFEIT ACTS COMMITTED OUTSIDE THE
UNITED STATES.—Section 470 of title 18, United States
Code, is amended—
(1) in paragraph (2), by inserting ‘‘analog, dig-
ital, or electronic image,’’ after ‘‘plate, stone,’’; and
(2) by striking ‘‘shall be fined under this title,
imprisoned not more than 20 years, or both’’ and in-
serting ‘‘shall be punished as is provided for the like
offense within the United States’’.
(b) OBLIGATIONS OR SECURITIES OF THE UNITED
STATES.—Section 471 of title 18, United States Code, is
amended by striking ‘‘fifteen years’’ and inserting ‘‘20
years’’.
(c) UTTERING COUNTERFEIT OBLIGATIONS OR SECU-
RITIES.—Section 472 of title 18, United States Code, is
119
amended by striking ‘‘fifteen years’’ and inserting ‘‘20
years’’.
(d) DEALING IN COUNTERFEIT OBLIGATIONS OR SE-
CURITIES.—Section 473 of title 18, United States Code, is
amended by striking ‘‘ten years’’ and inserting ‘‘20 years’’.
(e) PLATES, STONES, OR ANALOG, DIGITAL, OR ELEC-
TRONIC IMAGES FOR COUNTERFEITING OBLIGATIONS OR
SECURITIES.—
(1) IN
GENERAL.—Section 474(a) of title 18,
United States Code, is amended by inserting after the
second paragraph the following new paragraph:
‘‘Whoever, with intent to defraud, makes, executes, ac-
quires, scans, captures, records, receives, transmits, repro-
duces, sells, or has in such person’s control, custody, or pos-
session, an analog, digital, or electronic image of any obli-
gation or other security of the United States; or’’.
(2) 
AMENDMENT
TO
DEFINITION.—Section
474(b) of title 18, United States Code, is amended by
striking the first sentence and inserting the following
new sentence: ‘‘For purposes of this section, the term
‘analog, digital, or electronic image’ includes any
analog, digital, or electronic method used for the mak-
ing, execution, acquisition, scanning, capturing, re-
cording, retrieval, transmission, or reproduction of
120
any obligation or security, unless such use is author-
ized by the Secretary of the Treasury.’’.
(3) 
TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The heading for section 474 of title 18,
United States Code, is amended by striking ‘‘or
stones’’ and inserting ‘‘, stones, or analog,
digital, or electronic images’’.
(4) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 25 of title 18, United States Code,
is amended in the item relating to section 474 by
striking ‘‘or stones’’ and inserting ‘‘, stones, or ana-
log, digital, or electronic images’’.
(f) TAKING IMPRESSIONS OF TOOLS USED FOR OBLI-
GATIONS OR SECURITIES.—Section 476 of title 18, United
States Code, is amended—
(1) by inserting ‘‘analog, digital, or electronic
image,’’ after ‘‘impression, stamp,’’; and
(2) by striking ‘‘ten years’’ and inserting ‘‘25
years’’.
(g) POSSESSING OR SELLING IMPRESSIONS OF TOOLS
USED FOR OBLIGATIONS OR SECURITIES.—Section 477 of
title 18, United States Code, is amended—
(1) in the first paragraph, by inserting ‘‘analog,
digital, or electronic image,’’ after ‘‘imprint, stamp,’’;
121
(2) in the second paragraph, by inserting ‘‘ana-
log, digital, or electronic image,’’ after ‘‘imprint,
stamp,’’; and
(3) in the third paragraph, by striking ‘‘ten
years’’ and inserting ‘‘25 years’’.
(h) CONNECTING PARTS OF DIFFERENT NOTES.—Sec-
tion 484 of title 18, United States Code, is amended by
striking ‘‘five years’’ and inserting ‘‘10 years’’.
(i) BONDS AND OBLIGATIONS OF CERTAIN LENDING
AGENCIES.—The first and second paragraphs of section 493
of title 18, United States Code, are each amended by strik-
ing ‘‘five years’’ and inserting ‘‘10 years’’.
SEC. 402. COUNTERFEITING FOREIGN CURRENCY AND OB-
LIGATIONS.
(a) FOREIGN OBLIGATIONS OR SECURITIES.—Section
478 of title 18, United States Code, is amended by striking
‘‘five years’’ and inserting ‘‘20 years’’.
(b) UTTERING COUNTERFEIT FOREIGN OBLIGATIONS
OR SECURITIES.—Section 479 of title 18, United States
Code, is amended by striking ‘‘three years’’ and inserting
‘‘20 years’’.
(c) POSSESSING COUNTERFEIT FOREIGN OBLIGATIONS
OR SECURITIES.—Section 480 of title 18, United States
Code, is amended by striking ‘‘one year’’ and inserting ‘‘20
years’’.
122
(d) PLATES, STONES, OR ANALOG, DIGITAL, OR ELEC-
TRONIC IMAGES FOR COUNTERFEITING FOREIGN OBLIGA-
TIONS OR SECURITIES.—
(1) IN
GENERAL.—Section 481 of title 18,
United States Code, is amended by inserting after the
second paragraph the following new paragraph:
‘‘Whoever, with intent to defraud, makes, executes, ac-
quires, scans, captures, records, receives, transmits, repro-
duces, sells, or has in such person’s control, custody, or pos-
session, an analog, digital, or electronic image of any bond,
certificate, obligation, or other security of any foreign gov-
ernment, or of any treasury note, bill, or promise to pay,
lawfully issued by such foreign government and intended
to circulate as money; or’’.
(2) INCREASED SENTENCE.—The last paragraph
of section 481 of title 18, United States Code, is
amended by striking ‘‘five years’’ and inserting ‘‘25
years’’.
(3) 
TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The heading for section 481 of title 18,
United States Code, is amended by striking ‘‘or
stones’’ and inserting ‘‘, stones, or analog,
digital, or electronic images’’.
(4) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 25 of title 18, United States Code,
123
is amended in the item relating to section 481 by
striking ‘‘or stones’’ and inserting ‘‘, stones, or ana-
log, digital, or electronic images’’.
(e) FOREIGN BANK NOTES.—Section 482 of title 18,
United States Code, is amended by striking ‘‘two years’’
and inserting ‘‘20 years’’.
(f) 
UTTERING
COUNTERFEIT
FOREIGN
BANK
NOTES.—Section 483 of title 18, United States Code, is
amended by striking ‘‘one year’’ and inserting ‘‘20 years’’.
SEC. 403. PRODUCTION OF DOCUMENTS.
Section 5114(a) of title 31, United States Code (relat-
ing to engraving and printing currency and security docu-
ments), is amended—
(1) by striking ‘‘(a) The Secretary of the Treas-
ury’’ and inserting:
‘‘(a) AUTHORITY TO ENGRAVE AND PRINT.—
‘‘(1) IN GENERAL.—The Secretary of the Treas-
ury’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) ENGRAVING AND PRINTING FOR OTHER GOV-
ERNMENTS.—The Secretary of the Treasury may, if
the Secretary determines that it will not interfere
with engraving and printing needs of the United
States, produce currency, postage stamps, and other
124
security documents for foreign governments, subject to
a determination by the Secretary of State that such
production would be consistent with the foreign policy
of the United States.’’.
SEC. 404. REIMBURSEMENT.
Section 5143 of title 31, United States Code (relating
to payment for services of the Bureau of Engraving and
Printing), is amended—
(1) in the first sentence, by inserting ‘‘, any for-
eign government, or any territory of the United
States’’ after ‘‘agency’’;
(2) in the second sentence, by inserting ‘‘and
other’’ after ‘‘administrative’’; and
(3) in the last sentence, by inserting ‘‘, foreign
government, or territory of the United States’’ after
‘‘agency’’.
Union Calendar No. 151
107TH CONGRESS
1ST SESSION
H. R. 3004
[Report No. 107–250, Part I]
A BILL
To combat the financing of terrorism and other
financial crimes, and for other purposes.
OCTOBER 17, 2001
Reported from the Committee on Financial Services with
an amendment
OCTOBER 17, 2001
Referral to the Committees on the Judiciary and Ways
and Means extended for a period ending not later than
October 17, 2001
OCTOBER 17, 2001
Committees on the Judiciary and Ways and Means dis-
charged; committed to the Committee of the Whole
House on the State of the Union, and ordered to be
printed