I
107TH CONGRESS
1ST SESSION
H. R. 2979
To enhance the ability of law enforcement to combat money laundering,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 2, 2001
Mrs. ROUKEMA introduced the following bill; which was referred to the Com-
mittee on the Judiciary, and in addition to the Committees on Ways and
Means, Financial Services, and Energy and Commerce, for a period to
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To enhance the ability of law enforcement to combat money
laundering, 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 ‘‘Money Laundering Act
of 2001’’.
SEC. 2. TABLE OF CONTENTS.
The table of sections for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Illegal money transmitting businesses.
Sec. 4. Long-arm jurisdiction over foreign money launderers.
Sec. 5. Laundering money through a foreign bank.
Sec. 6. Specified unlawful activity for money laundering.
Sec. 7. Criminal forfeiture for money laundering conspiracies.
Sec. 8. Subpoenas for bank records.
Sec. 9. Charging money laundering as a course of conduct.
Sec. 10. Venue in money laundering cases.
Sec. 11. Technical amendment to restore wiretap authority for certain money
laundering offenses.
Sec. 12. Knowledge that the property is the proceeds of a specific felony.
Sec. 13. Money purchased on the black market.
Sec. 14. Money laundering transactions; commingled accounts.
Sec. 15. Fungible property in bank accounts.
Sec. 16. Discovery procedure for locating laundered money.
Sec. 17. Repatriation of property placed beyond the jurisdiction of the court.
Sec. 18. Laundering the proceeds of terrorism.
Sec. 19. Bulk cash smuggling.
Sec. 20. Currency couriers.
Sec. 21. Violations of section 6050I of the Internal Revenue Code of 1986.
Sec. 22. Proceeds of foreign crimes.
Sec. 23. Authorization to share recovered property with cooperating foreign
governments.
Sec. 24. Recovery of criminal proceeds from third parties.
Sec. 25. Criminal forfeiture of property in government custody.
Sec. 26. Restraint of property subject to criminal forfeiture.
Sec. 27. Non-abatement of forfeiture when defendant dies pending appeal.
Sec. 28. Transfer of reporting requirements from section 6050I of the Internal
Revenue Code of 1986 to title 31, United States Code.
Sec. 29. Penalties for violations of geographic targeting orders and certain
record keeping requirements.
Sec. 30. Exclusion of aliens involved in money laundering.
Sec. 31. Miscellaneous minor and technical amendments.
Sec. 32. Additional minor amendments.
Sec. 33. Availability of tax records.
Sec. 34. Investigative subpoenas.
Sec. 35. Collection of criminal forfeiture judgment.
Sec. 36. Standing to contest forfeiture of funds deposited into foreign bank that
has a correspondent account in the United States.
Sec. 37. Subpoenas for records regarding funds in correspondent bank ac-
counts.
Sec. 38. Corporation represented by a fugitive.
Sec. 39. Enforcement of foreign judgment.
SEC. 3. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) SCIENTER REQUIREMENT FOR SECTION 1960
VIOLATION.—Section 1960 of title 18, United States
Code, is amended by adding at the end the following new
section:
‘‘(c) For the purposes of proving a violation of this
section involving an illegal money transmitting business
as defined in subsection (b)(1)(A) or (b)(1)(B), it shall
be sufficient for the Government to prove that the defend-
ant knew that the money transmitting business lacked a
license required by State law, failed to comply with the
money transmitting business registration requirements of
31 U.S.C. 5330 or the regulations thereunder, or both.
It shall not be necessary to show that the defendant knew
that the operation of such a business without the required
license or registration was an offense punishable as a fel-
ony or misdemeanor.’’.
(b) 
SEIZURE
OF
ILLEGALLY
TRANSMITTED
FUNDS.—Section 981(a)(1)(A) of title 18, United States
Code, is amended by striking ‘‘or 1957’’ and inserting
‘‘, 1957 or 1960’’.
SEC. 4. LONG-ARM JURISDICTION OVER FOREIGN MONEY
LAUNDERERS.
Section 1956(b) of title 18, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) by inserting ‘‘, or section 1957’’ after ‘‘or
(a)(3)’’; and
(4) by adding at the end the following:
‘‘(2) For purposes of adjudicating an action
filed or enforcing a penalty ordered under this sec-
tion, the district courts shall have jurisdiction over
any foreign person, including any financial institu-
tion authorized under the laws of a foreign country,
against whom the action is brought, if service of
process upon such foreign person is made under the
Federal Rules of Civil Procedure or the laws of the
country where the foreign person is found, and
‘‘(A) the foreign person commits an offense
under subsection (a) involving a financial trans-
action that occurs in whole or in part in the
United States;
‘‘(B) the foreign person converts to such
person’s own use property in which the United
States has an ownership interest by virtue of
the entry of an order of forfeiture by a court
of the United States; or
‘‘(C) the foreign person is a financial insti-
tution that maintains a correspondent bank ac-
count at a financial institution in the United
States.
‘‘(3) The court may issue a pretrial restraining
order or take any other action necessary to ensure
that any bank account or other property held by the
defendant in the United States is available to satisfy
a judgment under this section.’’.
SEC. 5. LAUNDERING MONEY THROUGH A FOREIGN BANK.
Section 1956(c)(6) of title 18, United States Code,
is amended to read as follows:
‘‘(6) the term ‘financial institution’ includes any
financial institution described in section 5312(a)(2)
of title 31, United States Code, or the regulations
promulgated thereunder, as well as any foreign
bank, as defined in paragraph (7) of section 1(b) of
the International Banking Act of 1978 (12 U.S.C.
3101(7)).’’.
SEC. 6. SPECIFIED UNLAWFUL ACTIVITY FOR MONEY LAUN-
DERING.
(a) IN GENERAL.—Section 1956(c)(7) of title 18,
United States Code, is amended—
(1) in subparagraph (B)—
(A) by striking clause (ii) and inserting the
following new clause:
‘‘(ii) any act or acts constituting a
crime of violence, as defined in section 16
of this title;’’; and
(B) by inserting after clause (iii) the fol-
lowing new clauses:
‘‘(iv) fraud or any scheme to defraud
committed against an individual or entity
(other than a foreign government or gov-
ernment entity) provided such conduct
would constitute a fraud or scheme to de-
fraud under the laws of the United States
or its constituent parts if committed in the
United States;
‘‘(v) fraud or any scheme to defraud
against a foreign government or foreign
government entity, provided such conduct
would constitute a violation of Title 18 of
the United States Code if it were com-
mitted in interstate commerce in the
United States and against the United
States government or a United States gov-
ernmental entity;
‘‘(vi) bribery of a public official, or
the misappropriation, theft, or embezzle-
ment of public funds by or for the benefit
of a public official;
‘‘(vii) smuggling or export control vio-
lations involving munitions listed in the
United States Munitions List or tech-
nologies with military applications as de-
(3) in paragraph (E), by striking ‘‘or’’ and in-
serting ‘‘, or the Clean Air Act (42 U.S.C. 7401 et
seq.), or any wildlife protection offense, as defined in
section 49,’’ after ‘‘the Resources Conservation and
Recovery Act (42 U.S.C. 6901 et seq.)’’.
(4) by inserting the following after paragraph
(F):
‘‘(G) any violation of the Archeological Re-
sources Protection Act (16 U.S.C. 470aa, et
seq.), or the Native American Graves Protection
and Repatriation Act (25 U.S.C. 3001, et seq.).
(b)(1) BURGLARY
AND EMBEZZLEMENT.—Section
1961(1)(A) of title 18, United States Code, is amended
by inserting ‘‘burglary, embezzlement,’’ after ‘‘robbery,’’.
(2) ALIEN SMUGGLING.—Section 1961(1)(F) of title
18, United States Code, is amended by inserting ‘‘and
274A’’ after ‘‘274’’.
(c) WILDLIFE PROTECTION OFFENSE.—
(1) Chapter 3 of title 18, United States Code,
is amended by inserting the following after section
48:
‘‘SEC. 49. DEFINITION OF WILDLIFE PROTECTION OFFENSE.
‘‘(a) As used in this title, the term ‘wildlife protection
offense’ means any violation of a provision of this chapter
or of any Act listed in subsection (b), or any regulation
promulgated thereunder, that may be prosecuted as a
criminal offense.
‘‘(b) The statutes referred to in subsection (a) include
the following:
‘‘(1) the Lacey Act (16 U.S.C. 3371–78 and 18
U.S.C. 42;
‘‘(2) the Endangered Species Act (16 U.S.C.
1538);
‘‘(3) the Marine Mammal Protection Act (16
U.S.C. 1372);
‘‘(4) the African Elephant Conservation Act (16
U.S.C. 4222–23);
‘‘(5) the Wild Exotic Bird Conservation Act (16
U.S.C. 4910);
‘‘(6) the Eagle Protection Act (16 U.S.C. 668);
‘‘(7) the Migratory Bird Treaty Act (16 U.S.C.
703);
‘‘(8) the Migratory Bird Conservation Stamp
Act (16 U.S.C. 718f);
‘‘(9) the Airborne Hunting Act (16 U.S.C.
742j–1);
‘‘(10) the Antarctic Conservation Act (16
U.S.C. 2403);
‘‘(11) the National Wildlife Refuge System Ad-
ministration Act (16 U.S.C. 668dd);
‘‘(12) the Rhinoceros and Tiger Conservation
Act (16 U.S.C. 5305a);
‘‘(13) the Federal Cave Resources Protection
Act (16 U.S.C. 4306); or
‘‘(14) the Antarctic Marine Living Resources
Convention (16 U.S.C. 2435).’’.
(2) The Chapter Analysis for Chapter 3 of title
18, United States Code, is amended by inserting
‘‘49. Definition of wildlife protection offense’’ after
the analysis for section 48.
SEC. 7. CRIMINAL FORFEITURE FOR MONEY LAUNDERING
CONSPIRACIES.
Section 982(a)(1) of title 18, United States Code, is
amended by inserting ‘‘, or a conspiracy to commit any
such offense’’ after ‘‘of this title’’.
SEC. 8. SUBPOENAS FOR BANK RECORDS.
Section 986 of title 18, United States Code, is
amended—
(1) in subsection (a)—
(A) by inserting ‘‘(1)’’ before ‘‘At any
time’’;
(B) by striking ‘‘section 1956, 1957, or
1960 of this title, section 5322 or 5324 of title
31, United States Code’’ and inserting ‘‘section
981 or 982 of this title’’;
(C) by striking ‘‘in rem’’; and
(D) by striking the last sentence and in-
serting the following:
‘‘(2) The United States may request the Clerk
of the Court in any district where a civil forfeiture
action may be filed pursuant to 28 U.S.C. 1355(b)
to issue a subpoena duces tecum under paragraph
(1) before the filing of the verified complaint.’’.
(2) in subsection (c), by inserting ‘‘or the Fed-
eral Rules of Criminal Procedure’’ after ‘‘Proce-
dure’’.
SEC. 9. CHARGING MONEY LAUNDERING AS A COURSE OF
CONDUCT.
Section 1956(h) of title 18, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ before ‘‘Any person’’;
and
(2) by adding at the end the following new
paragraph:
‘‘(2) Any person who commits multiple viola-
tions of this section or Section 1957 that are part
of the same scheme or continuing course of conduct
may be charged, at the election of the Government,
in a single count in an indictment or information.’’.
SEC. 10. VENUE IN MONEY LAUNDERING CASES.
Section 1956 of title 18, United States Code, is
amended by adding at the end the following:
‘‘(i) VENUE.—
‘‘(1) Except as provided in paragraph (2), a
prosecution for an offense under this section or sec-
tion 1957 may be brought in—
‘‘(A) any district in which the financial or
monetary transaction is conducted, or
‘‘(B) any district where a prosecution for
the underlying specified unlawful activity could
be brought, if the defendant participated in the
transfer of the proceeds of the specified unlaw-
ful activity from that district to the district
where the financial or monetary transaction is
conducted.
‘‘(2) A prosecution for an attempt or conspiracy
offense under this section or section 1957 may be
brought in the district where venue would lie for the
completed offense under paragraph (1), or in any
other district where an act in furtherance of the at-
tempt or conspiracy took place.
‘‘(3) For purposes of this section, a transfer of
funds from one place to another, by wire or any
other means, shall constitute a single, continuing
transaction. Any person who conducts (as that term
is defined in subsection (c)(2)) any portion of the
transaction may be charged in any district in which
the transaction takes place.’’.
SEC. 11. TECHNICAL AMENDMENT TO RESTORE WIRETAP
AUTHORITY FOR CERTAIN MONEY LAUN-
DERING OFFENSES.
Section 2516(1)(g) of title 18, United States Code,
is amended by striking ‘‘a violation of section 5322 of title
31, United States Code (dealing with the reporting of cur-
rency transactions)’’ and inserting ‘‘a violation of section
5322 or 5324 of title 31, United States Code (dealing with
the reporting and illegal structuring of currency trans-
actions)’’.
SEC. 12. KNOWLEDGE THAT THE PROPERTY IS THE PRO-
CEEDS OF A SPECIFIC FELONY.
(a) PROCEEDS OF A FELONY.—Section 1956(c)(1) of
title 18, United States Code, is amended by inserting ‘‘,
and regardless of whether or not the person knew that
the activity constituted a felony’’ before the semicolon at
the end.
(b) INTENT TO CONCEAL OR DISGUISE.—Sections
1956(a)(1)(B)(i) and 1956(a)(2)(B)(i) are amended by
striking ‘‘specified unlawful activity’’ and inserting ‘‘some
form of unlawful activity’’.
SEC. 13. MONEY PURCHASED ON THE BLACK MARKET.
(a) IN GENERAL.—Section 981(a) of title 18, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘(3) A person asserting an innocent owner de-
fense under section 983(d) to the forfeiture of cur-
rency, monetary instruments or funds purchased or
received from a money broker must be a bona fide
purchaser for value without reason to know that the
currency, monetary instruments or funds were sub-
ject to forfeiture, and must establish that such per-
son took all reasonable affirmative steps to deter-
mine the source of the currency, monetary instru-
ments or funds, or to verify that the currency, mone-
tary instruments or funds were not derived from ille-
gal activity.
‘‘(4) For purposes of paragraph (3)—
‘‘(A) the term ‘money broker’ means any
person who sells or exchanges currency, mone-
tary instruments or funds, either in the United
States or in a foreign country, either independ-
ently, or through any parallel market, black
market, casa de cambio, or other currency ex-
change business;
‘‘(B) a person receives money from a
money broker if the person provides goods or
services to a customer and receives payment for
such goods or services from a money broker or
a person acting on behalf of a money broker;
‘‘(C) what constitutes ‘all reasonable af-
firmative steps’ depends on the facts and cir-
cumstances surrounding the transaction, but if
the money broker is a financial institution, as
defined in section 20 of this title, the purchaser
takes ‘all reasonable affirmative steps’ if the
purchaser conducts the transaction at the fi-
nancial institution during normal business
hours in an arms-length transaction and has no
reason to know that the currency, monetary in-
struments, or funds were derived from or used
to commit any unlawful activity.’’.
(b) APPLICATION.—The amendments made by this
section shall apply to any case pending on the effective
date of this Act.
SEC. 14. MONEY LAUNDERING TRANSACTIONS; COMMIN-
GLED ACCOUNTS.
(a) SECTION 1956.—Section 1956 of title 18, United
States Code, is amended by adding at the end the fol-
lowing new subsection:
‘‘(j) A transaction, transportation, transmission, or
transfer of funds shall be considered for the purposes of
this section to be one involving the proceeds of specified
unlawful activity, or property represented to be the pro-
ceeds of specified unlawful activity, if the transaction,
transportation, transmission, or transfer involves—
‘‘(1) funds directly traceable to the specified
unlawful activity, or represented to be directly trace-
able to the specified unlawful activity;
‘‘(2) a bank account in which the proceeds of
specified unlawful activity, or property represented
to be the proceeds of specified unlawful activity,
have been commingled with other funds; or
‘‘(3) 2 or more bank accounts, where the pro-
ceeds of specified unlawful activity, or property rep-
resented to be the proceeds of specified unlawful ac-
tivity, are deposited into 1 bank account and there
is a related contemporaneous or subsequent with-
drawal from, or debit to, another bank account con-
trolled by the same person, or by a person acting in
concert with that person.’’.
(b) SECTION 1957.—Section 1957(f) of title 18,
United States Code, is amended by inserting after para-
graph (3) the following new paragraph:
‘‘(4) the term ‘monetary transaction in crimi-
nally derived property that is of a value greater than
$10,000’ includes—
‘‘(A) a monetary transaction involving the
transfer, withdrawal, encumbrance or other dis-
position of more than $10,000 from a bank ac-
count in which more than $10,000 in proceeds
of specified unlawful activity have been commin-
gled with other funds;
‘‘(B) a series of monetary transactions in
amounts under $10,000 that exceed $10,000 in
the aggregate and that are closely related to
each other in terms of such factors as time, the
identity of the parties involved, the nature and
purpose of the transactions and the manner in
which they are conducted; and
‘‘(C) any financial transaction described in
Section 1956(j)(3) that involves more than
$10,000 in proceeds of specified unlawful activ-
ity.’’.
(c) TECHNICAL AMENDMENTS.—
(1) Section 1956(c)(7)(F) of title 18, United
States Code, is amended by inserting ‘‘, as defined
in section 24’’ before the period.
(2) Section 1957 of title 18, United States
Code, is amended—
(A) in subsection (a), by striking ‘‘engages
or attempts to engage in’’ and inserting ‘‘con-
ducts or attempts to conduct’’, and
(B) in subsection (f), by inserting after
paragraph (3) the following new paragraph:
‘‘(4) the term ‘conducts’ has the same meaning
as it does for purposes of Section 1956 of this
title.’’.
SEC. 15. FUNGIBLE PROPERTY IN BANK ACCOUNTS.
(a) IN GENERAL.—Section 984 of title 18, United
States Code, is amended by striking subsection (b) and
inserting the following new subsection:
‘‘(b) The provisions of this section may be invoked
only if the action for forfeiture was commenced by the sei-
zure or restraint of the property, or by the filing of a com-
plaint, within 2 years of the completion of the offense that
is the basis for the forfeiture.’’.
(b) APPLICATION.—The amendments made by this
section shall apply to any offense whether or not com-
mitted before the effective date of the Act.
SEC. 
16. 
DISCOVERY 
PROCEDURE 
FOR 
LOCATING
LAUNDERED MONEY.
Section 413(m) of the Controlled Substances Act (21
U.S.C. 853(m)) is amended by inserting before the period
at the end the following: ‘‘to the extent that the provisions
of the Rule are consistent with the purposes for which dis-
covery is conducted under this subsection. Because this
subsection applies only to matters occurring after the de-
fendant has been convicted and the property of the defend-
ant has been declared forfeited, the provisions of Rule 15
requiring the presence of the defendant at the deposition
or a waiver by the defendant of a right to be present shall
not apply’’.
SEC. 17. REPATRIATION OF PROPERTY PLACED BEYOND
THE JURISDICTION OF THE COURT.
(a) CRIMINAL FORFEITURE.—Section 413(p) of the
Controlled Substances Act (21 U.S.C. 853(p)) is amended
by adding at the end the following: ‘‘In the case of prop-
erty described in paragraph (3), the court may, in addi-
tion, order the defendant to return the property to the
jurisdiction of the court so that it may be seized and for-
feited.’’.
(b) 
PRETRIAL
RESTRAINING
ORDER.—Section
413(e) of the Controlled Substances Act (21 U.S.C.
853(e)) is amended by adding at the end the following:
‘‘(4) Pursuant to its authority to enter a pre-
trial restraining order under this section, including
its authority to restrain any property forfeitable as
substitute assets, the court may also order the de-
fendant to repatriate any property subject to for-