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(1) COURT
OF
COMPETENT
JURISDICTION.—
Section 3127(2) of title 18, United States Code, is
amended by striking subparagraph (A) and inserting
the following:
‘‘(A) any district court of the United
States (including a magistrate judge of such a
court) or any United States court of appeals
having jurisdiction over the offense being inves-
tigated; or’’.
(2) PEN REGISTER.—Section 3127(3) of title
18, United States Code, is amended—
(A) by striking ‘‘electronic or other im-
pulses’’ and all that follows through ‘‘is at-
tached’’ and inserting ‘‘dialing, routing, ad-
dressing, or signaling information transmitted
by an instrument or facility from which a wire
or electronic communication is transmitted, pro-
vided, however, that such information shall not
include the contents of any communication’’;
and
(B) by inserting ‘‘or process’’ after ‘‘de-
vice’’ each place it appears.
(3) 
TRAP
AND
TRACE
DEVICE.—Section
3127(4) of title 18, United States Code, is
amended—
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(A) by striking ‘‘of an instrument’’ and all
that follows through the semicolon and insert-
ing ‘‘or other dialing, routing, addressing, and
signaling information reasonably likely to iden-
tify the source of a wire or electronic commu-
nication, provided, however, that such informa-
tion shall not include the contents of any com-
munication;’’; and
(B) by inserting ‘‘or process’’ after ‘‘a de-
vice’’.
(4) 
CONFORMING
AMENDMENT.—Section
3127(1) of title 18, United States Code, is
amended—
(A) by striking ‘‘and’’; and
(B) by inserting ‘‘, and ‘contents’ ’’ after
‘‘electronic communication service’’.
(5) TECHNICAL AMENDMENT.—Section 3124(d)
of title 18, United States Code, is amended by strik-
ing ‘‘the terms of’’.
(6) 
CONFORMING
AMENDMENT.—Section
3124(b) of title 18, United States Code, is amended
by inserting ‘‘or other facility’’ after ‘‘the appro-
priate line’’.
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SEC. 217. INTERCEPTION OF COMPUTER TRESPASSER COM-
MUNICATIONS.
Chapter 119 of title 18, United States Code, is
amended—
(1) in section 2510—
(A) in paragraph (18), by striking ‘‘and’’
at the end;
(B) in paragraph (19), by striking the pe-
riod and inserting a semicolon; and
(C) by inserting after paragraph (19) the
following:
‘‘(20) ‘protected computer’ has the meaning set
forth in section 1030; and
‘‘(21) ‘computer trespasser’—
‘‘(A) means a person who accesses a pro-
tected computer without authorization and thus
has no reasonable expectation of privacy in any
communication transmitted to, through, or from
the protected computer; and
‘‘(B) does not include a person known by
the owner or operator of the protected computer
to have an existing contractual relationship with
the owner or operator of the protected computer
for access to all or part of the protected com-
puter.’’; and
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(2) in section 2511(2), by inserting at the end
the following:
‘‘(i) It shall not be unlawful under this chapter for
a person acting under color of law to intercept the wire
or electronic communications of a computer trespasser
transmitted to, through, or from the protected computer,
if—
‘‘(I) the owner or operator of the protected
computer authorizes the interception of the com-
puter trespasser’s communications on the protected
computer;
‘‘(II) the person acting under color of law is
lawfully engaged in an investigation;
‘‘(III) the person acting under color of law has
reasonable grounds to believe that the contents of
the computer trespasser’s communications will be
relevant to the investigation; and
‘‘(IV) such interception does not acquire com-
munications other than those transmitted to or from
the computer trespasser.’’.
SEC. 218. FOREIGN INTELLIGENCE INFORMATION.
Sections 104(a)(7)(B) and section 303(a)(7)(B) (50
U.S.C. 1804(a)(7)(B) and 1823(a)(7)(B)) of the Foreign
Intelligence Surveillance Act of 1978 are each amended
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by striking ‘‘the purpose’’ and inserting ‘‘a significant pur-
pose’’.
SEC. 219. SINGLE-JURISDICTION SEARCH WARRANTS FOR
TERRORISM.
Rule 41(a) of the Federal Rules of Criminal Proce-
dure is amended by inserting after ‘‘executed’’ the fol-
lowing: ‘‘and (3) in an investigation of domestic terrorism
or international terrorism (as defined in section 2331 of
title 18, United States Code), by a Federal magistrate
judge in any district in which activities related to the ter-
rorism may have occurred, for a search of property or for
a person within or outside the district’’.
SEC. 220. NATIONWIDE SERVICE OF SEARCH WARRANTS
FOR ELECTRONIC EVIDENCE.
(a) IN GENERAL.—Chapter 121 of title 18, United
States Code, is amended—
(1) in section 2703, by striking ‘‘under the
Federal Rules of Criminal Procedure’’ every place it
appears and inserting ‘‘using the procedures de-
scribed in the Federal Rules of Criminal Procedure
by a court with jurisdiction over the offense under
investigation’’; and
(2) in section 2711—
(A) in paragraph (1), by striking ‘‘and’’;
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(B) in paragraph (2), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by inserting at the end the following:
‘‘(3) the term ‘court of competent jurisdiction’
has the meaning assigned by section 3127, and in-
cludes any Federal court within that definition,
without geographic limitation.’’.
(b) CONFORMING AMENDMENT.—Section 2703(d) of
title 18, United States Code, is amended by striking ‘‘de-
scribed in section 3127(2)(A)’’.
SEC. 221. TRADE SANCTIONS.
(a) IN GENERAL.—The Trade Sanctions Reform and
Export Enhancement Act of 2000 (Public Law 106–387;
114 Stat. 1549A–67) is amended—
(1) by amending section 904(2)(C) to read as
follows:
‘‘(C) used to facilitate the design, develop-
ment, or production of chemical or biological
weapons, missiles, or weapons of mass destruc-
tion.’’;
(2) in section 906(a)(1)—
(A) by inserting ‘‘, the Taliban or the ter-
ritory 
of 
Afghanistan 
controlled 
by 
the
Taliban,’’ after ‘‘Cuba’’; and
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(B) by inserting ‘‘, or in the territory of
Afghanistan controlled by the Taliban,’’ after
‘‘within such country’’; and
(3) in section 906(a)(2), by inserting ‘‘, or to
any other entity in Syria or North Korea’’ after
‘‘Korea’’.
(b) APPLICATION OF THE TRADE SANCTIONS RE-
FORM AND EXPORT ENHANCEMENT ACT.—Nothing in the
Trade Sanctions Reform and Export Enhancement Act of
2000 shall limit the application or scope of any law estab-
lishing criminal or civil penalties, including any executive
order or regulation promulgated pursuant to such laws (or
similar or successor laws), for the unlawful export of any
agricultural commodity, medicine, or medical device to—
(1) a foreign organization, group, or person
designated pursuant to Executive Order 12947 of
January 23, 1995, as amended;
(2) a Foreign Terrorist Organization pursuant
to the Antiterrorism and Effective Death Penalty
Act of 1996 (Public Law 104–132);
(3) a foreign organization, group, or person
designated pursuant to Executive Order 13224 (Sep-
tember 23, 2001);
(4) any narcotics trafficking entity designated
pursuant to Executive Order 12978 (October 21,
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1995) or the Foreign Narcotics Kingpin Designation
Act (Public Law 106–120); or
(5) any foreign organization, group, or persons
subject to any restriction for its involvement in
weapons of mass destruction or missile proliferation.
SEC. 222. ASSISTANCE TO LAW ENFORCEMENT AGENCIES.
Nothing in this Act shall impose any additional tech-
nical obligation or requirement on a provider of a wire or
electronic communication service or other person to fur-
nish facilities or technical assistance. A provider of a wire
or electronic communication service, landlord, custodian,
or other person who furnishes facilities or technical assist-
ance pursuant to section 216 shall be reasonably com-
pensated for such reasonable expenditures incurred in pro-
viding such facilities or assistance.
SEC. 223. CIVIL LIABILITY FOR CERTAIN UNAUTHORIZED
DISCLOSURES.
(a) Section 2520 of title 18, United States Code, is
amended—
(1) in subsection (a), after ‘‘entity’’, by insert-
ing ‘‘, other than the United States,’’;
(2) by adding at the end the following:
‘‘(f) ADMINISTRATIVE DISCIPLINE.—If a court or ap-
propriate department or agency determines that the
United States or any of its departments or agencies has
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violated any provision of this chapter, and the court or
appropriate department or agency finds that the cir-
cumstances surrounding the violation raise serious ques-
tions about whether or not an officer or employee of the
United States acted willfully or intentionally with respect
to the violation, the department or agency shall, upon re-
ceipt of a true and correct copy of the decision and find-
ings of the court or appropriate department or agency
promptly initiate a proceeding to determine whether dis-
ciplinary action against the officer or employee is war-
ranted. If the head of the department or agency involved
determines that disciplinary action is not warranted, he
or she shall notify the Inspector General with jurisdiction
over the department or agency concerned and shall provide
the Inspector General with the reasons for such deter-
mination.’’; and
(3) by adding a new subsection (g), as follows:
‘‘(g) IMPROPER DISCLOSURE IS VIOLATION.—Any
willful disclosure or use by an investigative or law enforce-
ment officer or governmental entity of information beyond
the extent permitted by section 2517 is a violation of this
chapter for purposes of section 2520(a).
(b) Section 2707 of title 18, United States Code, is
amended—
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(1) in subsection (a), after ‘‘entity’’, by insert-
ing ‘‘, other than the United States,’’;
(2) by striking subsection (d) and inserting the
following:
‘‘(d) ADMINISTRATIVE DISCIPLINE.—If a court or
appropriate department or agency determines that the
United States or any of its departments or agencies has
violated any provision of this chapter, and the court or
appropriate department or agency finds that the cir-
cumstances surrounding the violation raise serious ques-
tions about whether or not an officer or employee of the
United States acted willfully or intentionally with respect
to the violation, the department or agency shall, upon re-
ceipt of a true and correct copy of the decision and find-
ings of the court or appropriate department or agency
promptly initiate a proceeding to determine whether dis-
ciplinary action against the officer or employee is war-
ranted. If the head of the department or agency involved
determines that disciplinary action is not warranted, he
or she shall notify the Inspector General with jurisdiction
over the department or agency concerned and shall provide
the Inspector General with the reasons for such deter-
mination.’’; and
(3) by adding a new subsection (g), as follows:
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of chapter 119 of this title or of the above specific provi-
sions of title 50, the Court may assess as damages—
‘‘(1) actual damages, but not less than
$10,000, whichever amount is greater; and
‘‘(2) litigation costs, reasonably incurred.
‘‘(b) PROCEDURES.—(1) Any action against the
United States under this section may be commenced only
after a claim is presented to the appropriate department
or agency under the procedures of the Federal Tort
Claims Act, as set forth in title 28, United States Code.
‘‘(2) Any action against the United States
under this section shall be forever barred unless it
is presented in writing to the appropriate Federal
agency within 2 years after such claim accrues or
unless action is begun within 6 months after the
date of mailing, by certified or registered mail, of
notice of final denial of the claim by the agency to
which it was presented. The claim shall accrue on
the date upon which the claimant first has a reason-
able opportunity to discover the violation.’’.
‘‘(3) Any action under this section shall be tried to
the court without a jury.
‘‘(4) Notwithstanding any other provision of law, the
procedures set forth in section 106(f), 305(g), or 405(f)
of the Foreign Intelligence Surveillance Act of 1978 (50
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U.S.C. 1801 et seq.) shall be the exclusive means by which
materials governed by those sections may be reviewed.
‘‘(5) An amount equal to any award against the
United States under this section shall be reimbursed by
the department or agency concerned to the fund described
in section 1304 of title 31, United States Code, out of
any appropriation, fund, or other account (excluding any
part of such appropriation, fund, or account that is avail-
able for the enforcement of any Federal law) that is avail-
able for the operating expenses of the department or agen-
cy concerned.
‘‘(c) ADMINISTRATIVE DISCIPLINE.—If a court or ap-
propriate department or agency determines that the
United States or any of its departments or agencies has
violated any provision of this chapter, and the court or
appropriate department or agency finds that the cir-
cumstances surrounding the violation raise serious ques-
tions about whether or not an officer or employee of the
United States acted willfully or intentionally with respect
to the possible violation, the department or agency shall,
upon receipt of a true and correct copy of the decision
and findings of the court or appropriate department or
agency promptly initiate a proceeding to determine wheth-
er disciplinary action against the officer or employee is
warranted. If the head of the department or agency in-
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volved determines that disciplinary action is not war-
ranted, he or she shall notify the Inspector General with
jurisdiction over the department or agency concerned and
shall provide the Inspector General with the reasons for
such determination.
‘‘(d) EXCLUSIVE REMEDY.—Any action against the
United States under this subsection shall be the exclusive
remedy against the United States for any claims within
the purview of this section.
‘‘(e) STAY OF PROCEEDINGS.—(1) Upon the motion
of the United States, the court shall stay any action com-
menced under this section if the court determines that civil
discovery will adversely affect the ability of the Govern-
ment to conduct a related investigation or the prosecution
of a related criminal case. Such a stay shall toll the limita-
tions periods of paragraph (2) of subsection (b).
‘‘(2) In this subsection, the terms ‘related criminal
case’ and ‘related investigation’ mean an actual prosecu-
tion or investigation in progress at the time at which the
request for the stay or any subsequent motion to lift the
stay is made. In determining whether an investigation or
a criminal case is related to an action commenced under
this section, the court shall consider the degree of simi-
larity between the parties, witnesses, facts, and cir-
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cumstances involved in the 2 proceedings, without requir-
ing that any one or more factors be identical.
‘‘(3) In requesting a stay under paragraph (1), the
Government may, in appropriate cases, submit evidence ex
parte in order to avoid disclosing any matter that may
adversely affect a related investigation or a related crimi-
nal case. If the Government makes such an ex parte sub-
mission, the plaintiff shall be given an opportunity to
make a submission to the court, not ex parte, and the
court may, in its discretion, request further information
from either party.’’.
(2) The table of sections at the beginning of chapter
121 is amended to read as follows:
‘‘2712. Civil action against the United States.’’.
SEC. 224. SUNSET.
(a) IN GENERAL.—Except as provided in subsection
(b), this title and the amendments made by this title
(other than sections 203(a), 203(c), 205, 208, 210, 211,
213, 216, 219, 221, and 222, and the amendments made
by those sections) shall cease to have effect on December
31, 2005.
(b) EXCEPTION.—With respect to any particular for-
eign intelligence investigation that began before the date
on which the provisions referred to in subsection (a) cease
to have effect, or with respect to any particular offense
or potential offense that began or occurred before the date
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on which such provisions cease to have effect, such provi-
sions shall continue in effect.
SEC. 225. IMMUNITY FOR COMPLIANCE WITH FISA WIRE-
TAP.
Section 105 of the Foreign Intelligence Surveillance
Act of 1978 (50 U.S.C. 1805) is amended by inserting
after subsection (g) the following:
‘‘(h) No cause of action shall lie in any court against
any provider of a wire or electronic communication service,
landlord, custodian, or other person (including any officer,
employee, agent, or other specified person thereof) that
furnishes any information, facilities, or technical assist-
ance in accordance with a court order or request for emer-
gency assistance under this Act.’’.
TITLE 
III—INTERNATIONAL
MONEY LAUNDERING ABATE-
MENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘International Money
Laundering Abatement and Financial Anti-Terrorism Act
of 2001’’.
SEC. 302. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds that—
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(1) money laundering, estimated by the Inter-
national Monetary Fund to amount to between 2
and 5 percent of global gross domestic product,
which is at least $600,000,000,000 annually, pro-
vides the financial fuel that permits transnational
criminal enterprises to conduct and expand their op-
erations to the detriment of the safety and security
of American citizens;
(2) money laundering, and the defects in finan-
cial transparency on which money launderers rely,
are critical to the financing of global terrorism and
the provision of funds for terrorist attacks;
(3) money launderers subvert legitimate finan-
cial mechanisms and banking relationships by using
them as protective covering for the movement of
criminal proceeds and the financing of crime and
terrorism, and, by so doing, can threaten the safety
of United States citizens and undermine the integ-
rity of United States financial institutions and of the
global financial and trading systems upon which
prosperity and growth depend;
(4) certain jurisdictions outside of the United
States that offer ‘‘offshore’’ banking and related fa-
cilities designed to provide anonymity, coupled with
weak financial supervisory and enforcement regimes,
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provide essential tools to disguise ownership and
movement of criminal funds, derived from, or used
to commit, offenses ranging from narcotics traf-
ficking, terrorism, arms smuggling, and trafficking
in human beings, to financial frauds that prey on
law-abiding citizens;
(5) transactions involving such offshore juris-
dictions make it difficult for law enforcement offi-
cials and regulators to follow the trail of money
earned by criminals, organized international criminal
enterprises, and global terrorist organizations;
(6) correspondent banking facilities are one of
the banking mechanisms susceptible in some cir-
cumstances to manipulation by foreign banks to per-
mit the laundering of funds by hiding the identity of
real parties in interest to financial transactions;
(7) private banking services can be susceptible
to manipulation by money launderers, for example
corrupt foreign government officials, particularly if
those services include the creation of offshore ac-
counts and facilities for large personal funds trans-
fers to channel funds into accounts around the
globe;
(8) United States anti-money laundering efforts
are impeded by outmoded and inadequate statutory
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provisions that make investigations, prosecutions,
and forfeitures more difficult, particularly in cases
in which money laundering involves foreign persons,
foreign banks, or foreign countries;
(9) the ability to mount effective counter-meas-
ures to international money launderers requires na-
tional, as well as bilateral and multilateral action,
using tools specially designed for that effort; and
(10) the Basle Committee on Banking Regula-
tion and Supervisory Practices and the Financial
Action Task Force on Money Laundering, of both of
which the United States is a member, have each
adopted international anti-money laundering prin-
ciples and recommendations.
(b) PURPOSES.—The purposes of this title are—
(1) to increase the strength of United States
measures to prevent, detect, and prosecute inter-
national money laundering and the financing of ter-
rorism;
(2) to ensure that—
(A) banking transactions and financial re-
lationships and the conduct of such transactions
and relationships, do not contravene the pur-
poses of subchapter II of chapter 53 of title 31,
United States Code, section 21 of the Federal
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Deposit Insurance Act, or chapter 2 of title I
of Public Law 91–508 (84 Stat. 1116), or fa-
cilitate the evasion of any such provision; and
(B) the purposes of such provisions of law
continue to be fulfilled, and such provisions of
law are effectively and efficiently administered;
(3) to strengthen the provisions put into place
by the Money Laundering Control Act of 1986 (18
U.S.C. 981 note), especially with respect to crimes
by non-United States nationals and foreign financial
institutions;
(4) to provide a clear national mandate for sub-
jecting to special scrutiny those foreign jurisdictions,
financial institutions operating outside of the United
States, and classes of international transactions or
types of accounts that pose particular, identifiable
opportunities for criminal abuse;
(5) to provide the Secretary of the Treasury (in
this title referred to as the ‘‘Secretary’’) with broad
discretion, subject to the safeguards provided by the
Administrative Procedure Act under title 5, United
States Code, to take measures tailored to the par-
ticular money laundering problems presented by spe-
cific foreign jurisdictions, financial institutions oper-
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ating outside of the United States, and classes of
international transactions or types of accounts;
(6) to ensure that the employment of such
measures by the Secretary permits appropriate op-
portunity for comment by affected financial institu-
tions;
(7) to provide guidance to domestic financial in-
stitutions on particular foreign jurisdictions, finan-
cial institutions operating outside of the United
States, and classes of international transactions that
are of primary money laundering concern to the
United States Government;
(8) to ensure that the forfeiture of any assets
in connection with the anti-terrorist efforts of the
United States permits for adequate challenge con-
sistent with providing due process rights;
(9) to clarify the terms of the safe harbor from
civil liability for filing suspicious activity reports;
(10) to strengthen the authority of the Sec-
retary to issue and administer geographic targeting
orders, and to clarify that violations of such orders
or any other requirement imposed under the author-
ity contained in chapter 2 of title I of Public Law
91–508 and subchapters II and III of chapter 53 of
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title 31, United States Code, may result in criminal
and civil penalties;
(11) to ensure that all appropriate elements of
the financial services industry are subject to appro-
priate requirements to report potential money laun-
dering transactions to proper authorities, and that
jurisdictional disputes do not hinder examination of
compliance by financial institutions with relevant re-
porting requirements;
(12) to strengthen the ability of financial insti-
tutions to maintain the integrity of their employee
population; and
(13) to strengthen measures to prevent the use
of the United States financial system for personal
gain by corrupt foreign officials and to facilitate the
repatriation of any stolen assets to the citizens of
countries to whom such assets belong.
SEC. 303. 4-YEAR CONGRESSIONAL REVIEW; EXPEDITED
CONSIDERATION.
(a) IN GENERAL.—Effective on and after the first
day of fiscal year 2005, the provisions of this title and
the amendments made by this title shall terminate if the
Congress enacts a joint resolution, the text after the re-
solving clause of which is as follows: ‘‘That provisions of
the International Money Laundering Abatement and Anti-
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Terrorist Financing Act of 2001, and the amendments
made thereby, shall no longer have the force of law.’’.
(b) EXPEDITED CONSIDERATION.—Any joint resolu-
tion submitted pursuant to this section should be consid-
ered by the Congress expeditiously. In particular, it shall
be considered in the Senate in accordance with the provi-
sions of section 601(b) of the International Security As-
sistance and Arms Control Act of 1976.
Subtitle A—International Counter
Money Laundering and Related
Measures
SEC. 311. SPECIAL MEASURES FOR JURISDICTIONS, FINAN-
CIAL 
INSTITUTIONS, 
OR 
INTERNATIONAL
TRANSACTIONS OF PRIMARY MONEY LAUN-
DERING CONCERN.
(a) IN GENERAL.—Subchapter II of chapter 53 of
title 31, United States Code, is amended by inserting after
section 5318 the following new section:
‘‘§ 5318A. Special measures for jurisdictions, financial
institutions, or international transactions
of primary money laundering concern
‘‘(a) 
INTERNATIONAL
COUNTER-MONEY
LAUN-
DERING REQUIREMENTS.—
‘‘(1) IN
GENERAL.—The Secretary of the
Treasury may require domestic financial institutions
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‘‘(A) shall be issued together with a notice
of proposed rulemaking relating to the imposi-
tion of such special measure; and
‘‘(B) may not remain in effect for more
than 120 days, except pursuant to a rule pro-
mulgated on or before the end of the 120-day
period beginning on the date of issuance of
such order.
‘‘(4) PROCESS FOR SELECTING SPECIAL MEAS-
URES.—In selecting which special measure or meas-
ures to take under this subsection, the Secretary of
the Treasury—
‘‘(A) shall consult with the Chairman of
the Board of Governors of the Federal Reserve
System, any other appropriate Federal banking
agency, as defined in section 3 of the Federal
Deposit Insurance Act, the Secretary of State,
the Securities and Exchange Commission, the
Commodity Futures Trading Commission, the
National Credit Union Administration Board,
and in the sole discretion of the Secretary, such
other agencies and interested parties as the
Secretary may find to be appropriate; and
‘‘(B) shall consider—
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‘‘(i) whether similar action has been
or is being taken by other nations or multi-
lateral groups;
‘‘(ii) whether the imposition of any
particular special measure would create a
significant competitive disadvantage, in-
cluding any undue cost or burden associ-
ated with compliance, for financial institu-
tions organized or licensed in the United
States;
‘‘(iii) the extent to which the action or
the timing of the action would have a sig-
nificant adverse systemic impact on the
international payment, clearance, and set-
tlement system, or on legitimate business
activities involving the particular jurisdic-
tion, institution, or class of transactions;
and
‘‘(iv) the effect of the action on
United States national security and foreign
policy.
‘‘(5) NO LIMITATION ON OTHER AUTHORITY.—
This section shall not be construed as superseding or
otherwise restricting any other authority granted to
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the Secretary, or to any other agency, by this sub-
chapter or otherwise.
‘‘(b) SPECIAL MEASURES.—The special measures re-
ferred to in subsection (a), with respect to a jurisdiction
outside of the United States, financial institution oper-
ating outside of the United States, class of transaction
within, or involving, a jurisdiction outside of the United
States, or 1 or more types of accounts are as follows:
‘‘(1) RECORDKEEPING
AND
REPORTING
OF
CERTAIN FINANCIAL TRANSACTIONS.—
‘‘(A) IN GENERAL.—The Secretary of the
Treasury may require any domestic financial in-
stitution or domestic financial agency to main-
tain records, file reports, or both, concerning
the aggregate amount of transactions, or con-
cerning each transaction, with respect to a ju-
risdiction outside of the United States, 1 or
more financial institutions operating outside of
the United States, 1 or more classes of trans-
actions within, or involving, a jurisdiction out-
side of the United States, or 1 or more types
of accounts if the Secretary finds any such ju-
risdiction, institution, or class of transactions to
be of primary money laundering concern.
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‘‘(B) FORM OF RECORDS AND REPORTS.—
Such records and reports shall be made and re-
tained at such time, in such manner, and for
such period of time, as the Secretary shall de-
termine, and shall include such information as
the Secretary may determine, including—
‘‘(i) the identity and address of the
participants in a transaction or relation-
ship, including the identity of the origi-
nator of any funds transfer;
‘‘(ii) the legal capacity in which a par-
ticipant in any transaction is acting;
‘‘(iii) the identity of the beneficial
owner of the funds involved in any trans-
action, in accordance with such procedures
as the Secretary determines to be reason-
able and practicable to obtain and retain
the information; and
‘‘(iv) a description of any transaction.
‘‘(2) INFORMATION RELATING TO BENEFICIAL
OWNERSHIP.—In addition to any other requirement
under any other provision of law, the Secretary may
require any domestic financial institution or domes-
tic financial agency to take such steps as the Sec-
retary may determine to be reasonable and prac-
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ticable to obtain and retain information concerning
the beneficial ownership of any account opened or
maintained in the United States by a foreign person
(other than a foreign entity whose shares are subject
to public reporting requirements or are listed and
traded on a regulated exchange or trading market),
or a representative of such a foreign person, that in-
volves a jurisdiction outside of the United States, 1
or more financial institutions operating outside of
the United States, 1 or more classes of transactions
within, or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts if the
Secretary finds any such jurisdiction, institution, or
transaction or type of account to be of primary
money laundering concern.
‘‘(3) INFORMATION RELATING TO CERTAIN PAY-
ABLE-THROUGH ACCOUNTS.—If the Secretary finds
a jurisdiction outside of the United States, 1 or
more financial institutions operating outside of the
United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside of the
United States to be of primary money laundering
concern, the Secretary may require any domestic fi-
nancial institution or domestic financial agency that
opens or maintains a payable-through account in the
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United States for a foreign financial institution in-
volving any such jurisdiction or any such financial
institution operating outside of the United States, or
a payable through account through which any such
transaction may be conducted, as a condition of
opening or maintaining such account—
‘‘(A) to identify each customer (and rep-
resentative of such customer) of such financial
institution who is permitted to use, or whose
transactions are routed through, such payable-
through account; and
‘‘(B) to obtain, with respect to each such
customer (and each such representative), infor-
mation that is substantially comparable to that
which the depository institution obtains in the
ordinary course of business with respect to its
customers residing in the United States.
‘‘(4) INFORMATION RELATING TO CERTAIN COR-
RESPONDENT ACCOUNTS.—If the Secretary finds a
jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United
States, or 1 or more classes of transactions within,
or involving, a jurisdiction outside of the United
States to be of primary money laundering concern,
the Secretary may require any domestic financial in-
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stitution or domestic financial agency that opens or
maintains a correspondent account in the United
States for a foreign financial institution involving
any such jurisdiction or any such financial institu-
tion operating outside of the United States, or a cor-
respondent account through which any such trans-
action may be conducted, as a condition of opening
or maintaining such account—
‘‘(A) to identify each customer (and rep-
resentative of such customer) of any such finan-
cial institution who is permitted to use, or
whose transactions are routed through, such
correspondent account; and
‘‘(B) to obtain, with respect to each such
customer (and each such representative), infor-
mation that is substantially comparable to that
which the depository institution obtains in the
ordinary course of business with respect to its
customers residing in the United States.
‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN-
ING OR MAINTAINING CERTAIN CORRESPONDENT OR
PAYABLE-THROUGH
ACCOUNTS.—If the Secretary
finds a jurisdiction outside of the United States, 1
or more financial institutions operating outside of
the United States, or 1 or more classes of trans-
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actions within, or involving, a jurisdiction outside of
the United States to be of primary money laun-
dering concern, the Secretary, in consultation with
the Secretary of State, the Attorney General, and
the Chairman of the Board of Governors of the Fed-
eral Reserve System, may prohibit, or impose condi-
tions upon, the opening or maintaining in the United
States of a correspondent account or payable-
through account by any domestic financial institu-
tion or domestic financial agency for or on behalf of
a foreign banking institution, if such correspondent
account or payable-through account involves any
such jurisdiction or institution, or if any such trans-
action may be conducted through such cor-
respondent account or payable-through account.
‘‘(c) CONSULTATIONS
AND INFORMATION TO BE
CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS,
TYPES OF ACCOUNTS, OR TRANSACTIONS TO BE OF PRI-
MARY MONEY LAUNDERING CONCERN.—
‘‘(1) IN GENERAL.—In making a finding that
reasonable grounds exist for concluding that a juris-
diction outside of the United States, 1 or more fi-
nancial institutions operating outside of the United
States, 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States,
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or 1 or more types of accounts is of primary money
laundering concern so as to authorize the Secretary
of the Treasury to take 1 or more of the special
measures described in subsection (b), the Secretary
shall consult with the Secretary of State and the At-
torney General.
‘‘(2) ADDITIONAL CONSIDERATIONS.—In mak-
ing a finding described in paragraph (1), the Sec-
retary shall consider in addition such information as
the Secretary determines to be relevant, including
the following potentially relevant factors:
‘‘(A) JURISDICTIONAL
FACTORS.—In the
case of a particular jurisdiction—
‘‘(i) evidence that organized criminal
groups, international terrorists, or both,
have transacted business in that jurisdic-
tion;
‘‘(ii) the extent to which that jurisdic-
tion or financial institutions operating in
that jurisdiction offer bank secrecy or spe-
cial regulatory advantages to nonresidents
or nondomiciliaries of that jurisdiction;
‘‘(iii) the substance and quality of ad-
ministration of the bank supervisory and
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counter-money laundering laws of that ju-
risdiction;
‘‘(iv) the relationship between the vol-
ume of financial transactions occurring in
that jurisdiction and the size of the econ-
omy of the jurisdiction;
‘‘(v) the extent to which that jurisdic-
tion is characterized as an offshore bank-
ing or secrecy haven by credible inter-
national organizations or multilateral ex-
pert groups;
‘‘(vi) whether the United States has a
mutual legal assistance treaty with that ju-
risdiction, and the experience of United
States law enforcement officials and regu-
latory officials in obtaining information
about transactions originating in or routed
through or to such jurisdiction; and
‘‘(vii) the extent to which that juris-
diction is characterized by high levels of of-
ficial or institutional corruption.
‘‘(B) INSTITUTIONAL
FACTORS.—In the
case of a decision to apply 1 or more of the spe-
cial measures described in subsection (b) only
to a financial institution or institutions, or to a
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transaction or class of transactions, or to a type
of account, or to all 3, within or involving a
particular jurisdiction—
‘‘(i) the extent to which such financial
institutions, transactions, or types of ac-
counts are used to facilitate or promote
money laundering in or through the juris-
diction;
‘‘(ii) the extent to which such institu-
tions, transactions, or types of accounts
are used for legitimate business purposes
in the jurisdiction; and
‘‘(iii) the extent to which such action
is sufficient to ensure, with respect to
transactions involving the jurisdiction and
institutions operating in the jurisdiction,
that the purposes of this subchapter con-
tinue to be fulfilled, and to guard against
international money laundering and other
financial crimes.
‘‘(d) NOTIFICATION
OF SPECIAL MEASURES IN-
VOKED BY THE SECRETARY.—Not later than 10 days
after the date of any action taken by the Secretary of the
Treasury under subsection (a)(1), the Secretary shall no-
tify, in writing, the Committee on Financial Services of
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the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate of any
such action.
‘‘(e) DEFINITIONS.—Notwithstanding any other pro-
vision of this subchapter, for purposes of this section and
subsections (i) and (j) of section 5318, the following defi-
nitions shall apply:
‘‘(1) BANK DEFINITIONS.—The following defini-
tions shall apply with respect to a bank:
‘‘(A) ACCOUNT.—The term ‘account’—
‘‘(i) means a formal banking or busi-
ness relationship established to provide
regular services, dealings, and other finan-
cial transactions; and
‘‘(ii) includes a demand deposit, sav-
ings deposit, or other transaction or asset
account and a credit account or other ex-
tension of credit.
‘‘(B) CORRESPONDENT
ACCOUNT.—The
term ‘correspondent account’ means an account
established to receive deposits from, make pay-
ments on behalf of a foreign financial institu-
tion, or handle other financial transactions re-
lated to such institution.
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‘‘(C) PAYABLE-THROUGH ACCOUNT.—The
term ‘payable-through account’ means an ac-
count, including a transaction account (as de-
fined in section 19(b)(1)(C) of the Federal Re-
serve Act), opened at a depository institution by
a foreign financial institution by means of
which the foreign financial institution permits
its customers to engage, either directly or
through a subaccount, in banking activities
usual in connection with the business of bank-
ing in the United States.
‘‘(2) DEFINITIONS
APPLICABLE
TO
INSTITU-
TIONS OTHER THAN BANKS.—With respect to any fi-
nancial institution other than a bank, the Secretary
shall, after consultation with the appropriate Fed-
eral functional regulators (as defined in section 509
of the Gramm-Leach-Bliley Act), define by regula-
tion the term ‘account’, and shall include within the
meaning of that term, to the extent, if any, that the
Secretary deems appropriate, arrangements similar
to payable-through and correspondent accounts.
‘‘(3) REGULATORY DEFINITION OF BENEFICIAL
OWNERSHIP.—The Secretary shall promulgate regu-
lations defining beneficial ownership of an account
for purposes of this section and subsections (i) and
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(j) of section 5318. Such regulations shall address
issues related to an individual’s authority to fund,
direct, or manage the account (including, without
limitation, the power to direct payments into or out
of the account), and an individual’s material interest
in the income or corpus of the account, and shall en-
sure that the identification of individuals under this
section does not extend to any individual whose ben-
eficial interest in the income or corpus of the ac-
count is immaterial.’’.
‘‘(4) OTHER TERMS.—The Secretary may, by
regulation, further define the terms in paragraphs
(1), (2), and (3), and define other terms for the pur-
poses of this section, as the Secretary deems appro-
priate.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter II of chapter 53 of title 31, United States
Code, is amended by inserting after the item relating to
section 5318 the following new item:
‘‘5318A. Special measures for jurisdictions, financial institutions, or inter-
national transactions of primary money laundering concern.’’.
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SEC. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT
ACCOUNTS 
AND 
PRIVATE 
BANKING 
AC-
COUNTS.
(a) IN GENERAL.—Section 5318 of title 31, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘(i) DUE DILIGENCE FOR UNITED STATES PRIVATE
BANKING AND CORRESPONDENT BANK ACCOUNTS IN-
VOLVING FOREIGN PERSONS.—
‘‘(1) IN GENERAL.—Each financial institution
that establishes, maintains, administers, or manages
a private banking account or a correspondent ac-
count in the United States for a non-United States
person, including a foreign individual visiting the
United States, or a representative of a non-United
States person shall establish appropriate, specific,
and, where necessary, enhanced, due diligence poli-
cies, procedures, and controls that are reasonably
designed to detect and report instances of money
laundering through those accounts.
‘‘(2) ADDITIONAL
STANDARDS
FOR
CERTAIN
CORRESPONDENT ACCOUNTS.—
‘‘(A) IN
GENERAL.—Subparagraph (B)
shall apply if a correspondent account is re-
quested or maintained by, or on behalf of, a
foreign bank operating—
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‘‘(i) under an offshore banking li-
cense; or
‘‘(ii) under a banking license issued
by a foreign country that has been
designated—
‘‘(I) as noncooperative with inter-
national anti-money laundering prin-
ciples or procedures by an intergov-
ernmental group or organization of
which the United States is a member,
with which designation the United
States representative to the group or
organization concurs; or
‘‘(II) by the Secretary of the
Treasury as warranting special meas-
ures due to money laundering con-
cerns.
‘‘(B) POLICIES, PROCEDURES, AND
CON-
TROLS.—The enhanced due diligence policies,
procedures, and controls required under para-
graph (1) shall, at a minimum, ensure that the
financial institution in the United States takes
reasonable steps—
‘‘(i) to ascertain for any such foreign
bank, the shares of which are not publicly
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traded, the identity of each of the owners
of the foreign bank, and the nature and
extent of the ownership interest of each
such owner;
‘‘(ii) to conduct enhanced scrutiny of
such account to guard against money laun-
dering and report any suspicious trans-
actions under subsection (g); and
‘‘(iii) to ascertain whether such for-
eign bank provides correspondent accounts
to other foreign banks and, if so, the iden-
tity of those foreign banks and related due
diligence information, as appropriate under
paragraph (1).
‘‘(3) MINIMUM STANDARDS FOR PRIVATE BANK-
ING ACCOUNTS.—If a private banking account is re-
quested or maintained by, or on behalf of, a non-
United States person, then the due diligence policies,
procedures, and controls required under paragraph
(1) shall, at a minimum, ensure that the financial
institution takes reasonable steps—
‘‘(A) to ascertain the identity of the nomi-
nal and beneficial owners of, and the source of
funds deposited into, such account as needed to
guard against money laundering and report any
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suspicious transactions under subsection (g);
and
‘‘(B) to conduct enhanced scrutiny of any
such account that is requested or maintained
by, or on behalf of, a senior foreign political fig-
ure, or any immediate family member or close
associate of a senior foreign political figure that
is reasonably designed to detect and report
transactions that may involve the proceeds of
foreign corruption.
‘‘(4) DEFINITION.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) OFFSHORE BANKING LICENSE.—The
term ‘offshore banking license’ means a license
to conduct banking activities which, as a condi-
tion of the license, prohibits the licensed entity
from conducting banking activities with the citi-
zens of, or with the local currency of, the coun-
try which issued the license.’’.
‘‘(B) PRIVATE
BANKING
ACCOUNT.—The
term ‘private banking account’ means an ac-
count (or any combination of accounts) that—
‘‘(i) requires a minimum aggregate
deposits of funds or other assets of not less
than $1,000,000;
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‘‘(ii) is established on behalf of 1 or
more individuals who have a direct or ben-
eficial ownership interest in the account;
and
‘‘(iii) is assigned to, or is administered
or managed by, in whole or in part, an of-
ficer, employee, or agent of a financial in-
stitution acting as a liaison between the fi-
nancial institution and the direct or bene-
ficial owner of the account.’’.
(b) REGULATORY
AUTHORITY
AND
EFFECTIVE
DATE.—
(1) REGULATORY AUTHORITY.—Not later than
180 days after the date of enactment of this Act, the
Secretary, in consultation with the appropriate Fed-
eral functional regulators (as defined in section 509
of the Gramm-Leach-Bliley Act) of the affected fi-
nancial institutions, shall further delineate, by regu-
lation, the due diligence policies, procedures, and
controls required under section 5318(i)(1) of title
31, United States Code, as added by this section.
(2) EFFECTIVE DATE.—Section 5318(i) of title
31, United States Code, as added by this section,
shall take effect 270 days after the date of enact-
ment of this Act, whether or not final regulations
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are issued under paragraph (1), and the failure to
issue such regulations shall in no way affect the en-
forceability of this section or the amendments made
by this section. Section 5318(i) of title 31, United
States Code, as added by this section, shall apply
with respect to accounts covered by that section
5318(i), that are opened before, on, or after the date
of enactment of this Act.
SEC. 
313. 
PROHIBITION 
ON 
UNITED 
STATES 
COR-
RESPONDENT 
ACCOUNTS 
WITH 
FOREIGN
SHELL BANKS.
(a) IN GENERAL.—Section 5318 of title 31, United
States Code, as amended by this title, is amended by add-
ing at the end the following:
‘‘(j) PROHIBITION
ON
UNITED
STATES
COR-
RESPONDENT
ACCOUNTS
WITH
FOREIGN
SHELL
BANKS.—
‘‘(1) IN GENERAL.—A financial institution de-
scribed in subparagraphs (A) through (G) of section
5312(a)(2) (in this subsection referred to as a ‘cov-
ered financial institution’) shall not establish, main-
tain, administer, or manage a correspondent account
in the United States for, or on behalf of, a foreign
bank that does not have a physical presence in any
country.
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‘‘(2) PREVENTION
OF
INDIRECT
SERVICE
TO
FOREIGN SHELL BANKS.—A covered financial insti-
tution shall take reasonable steps to ensure that any
correspondent account established, maintained, ad-
ministered, or managed by that covered financial in-
stitution in the United States for a foreign bank is
not being used by that foreign bank to indirectly
provide banking services to another foreign bank
that does not have a physical presence in any coun-
try. The Secretary of the Treasury shall, by regula-
tion, delineate the reasonable steps necessary to
comply with this paragraph.
‘‘(3) EXCEPTION.—Paragraphs (1) and (2) do
not prohibit a covered financial institution from pro-
viding a correspondent account to a foreign bank, if
the foreign bank—
‘‘(A) is an affiliate of a depository institu-
tion, credit union, or foreign bank that main-
tains a physical presence in the United States
or a foreign country, as applicable; and
‘‘(B) is subject to supervision by a banking
authority in the country regulating the affili-
ated depository institution, credit union, or for-
eign bank described in subparagraph (A), as
applicable.
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‘‘(4) DEFINITIONS.—For purposes of this
subsection—
‘‘(A) the term ‘affiliate’ means a foreign
bank that is controlled by or is under common
control with a depository institution, credit
union, or foreign bank; and
‘‘(B) the term ‘physical presence’ means a
place of business that—
‘‘(i) is maintained by a foreign bank;
‘‘(ii) is located at a fixed address
(other than solely an electronic address) in
a country in which the foreign bank is au-
thorized to conduct banking activities, at
which location the foreign bank—
‘‘(I) employs 1 or more individ-
uals on a full-time basis; and
‘‘(II) maintains operating records
related to its banking activities; and
‘‘(iii) is subject to inspection by the
banking authority which licensed the for-
eign bank to conduct banking activities.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect at the end of the 60-day
period beginning on the date of enactment of this Act.
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SEC. 314. COOPERATIVE EFFORTS TO DETER MONEY LAUN-
DERING.
(a) COOPERATION AMONG FINANCIAL INSTITUTIONS,
REGULATORY AUTHORITIES, AND LAW ENFORCEMENT
AUTHORITIES.—
(1) REGULATIONS.—The Secretary shall, within
120 days after the date of enactment of this Act,
adopt regulations to encourage further cooperation
among financial institutions, their regulatory au-
thorities, and law enforcement authorities, with the
specific purpose of encouraging regulatory authori-
ties and law enforcement authorities to share with
financial institutions information regarding individ-
uals, entities, and organizations engaged in or rea-
sonably suspected based on credible evidence of en-
gaging in terrorist acts or money laundering activi-
ties.
(2) COOPERATION AND INFORMATION SHARING
PROCEDURES.—The regulations adopted under para-
graph (1) may include or create procedures for co-
operation and information sharing focusing on—
(A) matters specifically related to the fi-
nances of terrorist groups, the means by which
terrorist groups transfer funds around the
world and within the United States, including
through the use of charitable organizations,
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nonprofit organizations, and nongovernmental
organizations, and the extent to which financial
institutions in the United States are unwittingly
involved in such finances and the extent to
which such institutions are at risk as a result;
(B) the relationship, particularly the finan-
cial relationship, between international narcotics
traffickers and foreign terrorist organizations,
the extent to which their memberships overlap
and engage in joint activities, and the extent to
which they cooperate with each other in raising
and transferring funds for their respective pur-
poses; and
(C) means of facilitating the identification
of accounts and transactions involving terrorist
groups and facilitating the exchange of informa-
tion concerning such accounts and transactions
between financial institutions and law enforce-
ment organizations.
(3) CONTENTS.—The regulations adopted pur-
suant to paragraph (1) may—
(A) require that each financial institution
designate 1 or more persons to receive informa-
tion concerning, and to monitor accounts of in-
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dividuals, entities, and organizations identified,
pursuant to paragraph (1); and
(B) further establish procedures for the
protection of the shared information, consistent
with the capacity, size, and nature of the insti-
tution to which the particular procedures apply.
(4) RULE OF CONSTRUCTION.—The receipt of
information by a financial institution pursuant to
this section shall not relieve or otherwise modify the
obligations of the financial institution with respect
to any other person or account.
(5) USE
OF
INFORMATION.—Information re-
ceived by a financial institution pursuant to this sec-
tion shall not be used for any purpose other than
identifying and reporting on activities that may in-
volve terrorist acts or money laundering activities.
(b) COOPERATION
AMONG
FINANCIAL
INSTITU-
TIONS.—Upon notice provided to the Secretary, 2 or more
financial institutions and any association of financial insti-
tutions may share information with one another regarding
individuals, entities, organizations, and countries sus-
pected of possible terrorist or money laundering activities.
A financial institution or association that transmits, re-
ceives, or shares such information for the purposes of
identifying and reporting activities that may involve ter-
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rorist acts or money laundering activities shall not be lia-
ble to any person under any law or regulation of the
United States, any constitution, law, or regulation of any
State or political subdivision thereof, or under any con-
tract or other legally enforceable agreement (including any
arbitration agreement), for such disclosure or for any fail-
ure to provide notice of such disclosure to the person who
is the subject of such disclosure, or any other person iden-
tified in the disclosure, except where such transmission,
receipt, or sharing violates this section or regulations pro-
mulgated pursuant to this section.
(c) RULE OF CONSTRUCTION.—Compliance with the
provisions of this title requiring or allowing financial insti-
tutions and any association of financial institutions to dis-
close or share information regarding individuals, entities,
and organizations engaged in or suspected of engaging in
terrorist acts or money laundering activities shall not con-
stitute a violation of the provisions of title V of the
Gramm-Leach-Bliley Act (Public Law 106–102).
(d) REPORTS TO THE FINANCIAL SERVICES INDUS-
TRY ON SUSPICIOUS FINANCIAL ACTIVITIES.—At least
semiannually, the Secretary shall—
(1) publish a report containing a detailed anal-
ysis identifying patterns of suspicious activity and
other investigative insights derived from suspicious
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activity reports and investigations conducted by Fed-
eral, State, and local law enforcement agencies to
the extent appropriate; and
(2) distribute such report to financial institu-
tions (as defined in section 5312 of title 31, United
States Code).
SEC. 315. INCLUSION OF FOREIGN CORRUPTION OFFENSES
AS MONEY LAUNDERING CRIMES.
Section 1956(c)(7) of title 18, United States Code,
is amended—
(1) in subparagraph (B)—
(A) in clause (ii), by striking ‘‘or destruc-
tion of property by means of explosive or fire’’
and inserting ‘‘destruction of property by means
of explosive or fire, or a crime of violence (as
defined in section 16)’’;
(B) in clause (iii), by striking ‘‘1978’’ and
inserting ‘‘1978)’’; and
(C) by adding at the end the following:
‘‘(iv) bribery of a public official, or
the misappropriation, theft, or embezzle-
ment of public funds by or for the benefit
of a public official;
‘‘(v) smuggling or export control viola-
tions involving—
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‘‘(I) an item controlled on the
United States Munitions List estab-
lished under section 38 of the Arms
Export Control Act (22 U.S.C. 2778);
or
‘‘(II) an item controlled under
regulations under the Export Admin-
istration 
Regulations 
(15 
C.F.R.
Parts 730–774); or
‘‘(vi) an offense with respect to which
the United States would be obligated by a
multilateral treaty, either to extradite the
alleged offender or to submit the case for
prosecution, if the offender were found
within the territory of the United States;’’;
and
(2) in subparagraph (D)—
(A) by inserting ‘‘section 541 (relating to
goods falsely classified),’’ before ‘‘section 542’’;
(B) by inserting ‘‘section 922(1) (relating
to the unlawful importation of firearms), sec-
tion 924(n) (relating to firearms trafficking),’’
before ‘‘section 956’’;
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(C) by inserting ‘‘section 1030 (relating to
computer fraud and abuse),’’ before ‘‘1032’’;
and
(D) by inserting ‘‘any felony violation of
the Foreign Agents Registration Act of 1938,’’
before ‘‘or any felony violation of the Foreign
Corrupt Practices Act’’.
SEC. 316. ANTI-TERRORIST FORFEITURE PROTECTION.
(a) RIGHT TO CONTEST.—An owner of property that
is confiscated under any provision of law relating to the
confiscation of assets of suspected international terrorists,
may contest that confiscation by filing a claim in the man-
ner set forth in the Federal Rules of Civil Procedure (Sup-
plemental Rules for Certain Admiralty and Maritime
Claims), and asserting as an affirmative defense that—
(1) the property is not subject to confiscation
under such provision of law; or
(2) the innocent owner provisions of section
983(d) of title 18, United States Code, apply to the
case.
(b) EVIDENCE.—In considering a claim filed under
this section, a court may admit evidence that is otherwise
inadmissible under the Federal Rules of Evidence, if the
court determines that the evidence is reliable, and that
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compliance with the Federal Rules of Evidence may jeop-
ardize the national security interests of the United States.
(c) CLARIFICATIONS.—
(1) PROTECTION OF RIGHTS.—The exclusion of
certain provisions of Federal law from the definition
of the term ‘‘civil forfeiture statute’’ in section
983(i) of title 18, United States Code, shall not be
construed to deny an owner of property the right to
contest the confiscation of assets of suspected inter-
national terrorists under—
(A) subsection (a) of this section;
(B) the Constitution; or
(C) subchapter II of chapter 5 of title 5,
United States Code (commonly known as the
‘‘Administrative Procedure Act’’).
(2) SAVINGS CLAUSE.—Nothing in this section
shall limit or otherwise affect any other remedies
that may be available to an owner of property under
section 983 of title 18, United States Code, or any
other provision of law.
(d) TECHNICAL CORRECTION.—Section 983(i)(2)(D)
of title 18, United States Code, is amended by inserting
‘‘or the International Emergency Economic Powers Act
(IEEPA) (50 U.S.C. 1701 et seq.)’’ before the semicolon.
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SEC. 317. LONG-ARM JURISDICTION OVER FOREIGN MONEY
LAUNDERERS.
Section 1956(b) of title 18, United States Code, is
amended—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and mov-
ing the margins 2 ems to the right;
(2) by inserting after ‘‘(b)’’ the following:
‘‘PENALTIES.—
‘‘(1) IN GENERAL.—’’;
(3) by inserting ‘‘, or section 1957’’ after ‘‘or
(a)(3)’’; and
(4) by adding at the end the following:
‘‘(2) JURISDICTION OVER FOREIGN PERSONS.—
For purposes of adjudicating an action filed or en-
forcing a penalty ordered under this section, the dis-
trict courts shall have jurisdiction over any foreign
person, including any financial institution authorized
under the laws of a foreign country, against whom
the action is brought, if service of process upon the
foreign person is made under the Federal Rules of
Civil Procedure or the laws of the country in which
the foreign person is found, and—
‘‘(A) the foreign person commits an offense
under subsection (a) involving a financial trans-
100
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action that occurs in whole or in part in the
United States;
‘‘(B) the foreign person converts, to his or
her 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 bank account at a fi-
nancial institution in the United States.
‘‘(3) COURT
AUTHORITY
OVER
ASSETS.—A
court described in paragraph (2) may issue a pre-
trial restraining order or take any other action nec-
essary 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.
‘‘(4) FEDERAL RECEIVER.—
‘‘(A) IN GENERAL.—A court described in
paragraph (2) may appoint a Federal Receiver,
in accordance with subparagraph (B) of this
paragraph, to collect, marshal, and take cus-
tody, control, and possession of all assets of the
defendant, wherever located, to satisfy a civil
judgment under this subsection, a forfeiture
judgment under section 981 or 982, or a crimi-
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nal sentence under section 1957 or subsection
(a) of this section, including an order of restitu-
tion to any victim of a specified unlawful activ-
ity.
‘‘(B) APPOINTMENT AND AUTHORITY.—A
Federal Receiver described in subparagraph
(A)—
‘‘(i) may be appointed upon applica-
tion of a Federal prosecutor or a Federal
or State regulator, by the court having ju-
risdiction over the defendant in the case;
‘‘(ii) shall be an officer of the court,
and the powers of the Federal Receiver
shall include the powers set out in section
754 of title 28, United States Code; and
‘‘(iii) shall have standing equivalent to
that of a Federal prosecutor for the pur-
pose of submitting requests to obtain infor-
mation 
regarding 
the 
assets 
of 
the
defendant—
‘‘(I) from the Financial Crimes
Enforcement Network of the Depart-
ment of the Treasury; or
‘‘(II) from a foreign country pur-
suant to a mutual legal assistance
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treaty, multilateral agreement, or
other arrangement for international
law enforcement assistance, provided
that such requests are in accordance
with the policies and procedures of the
Attorney General.’’.
SEC. 318. LAUNDERING MONEY THROUGH A FOREIGN
BANK.
Section 1956(c) of title 18, United States Code, is
amended by striking paragraph (6) and inserting the fol-
lowing:
‘‘(6) the term ‘financial institution’ includes—
‘‘(A) any financial institution, as defined in
section 5312(a)(2) of title 31, United States
Code, or the regulations promulgated there-
under; and
‘‘(B) any foreign bank, as defined in sec-
tion 1 of the International Banking Act of 1978
(12 U.S.C. 3101).’’.
SEC. 319. FORFEITURE OF FUNDS IN UNITED STATES
INTERBANK ACCOUNTS.
(a) FORFEITURE FROM UNITED STATES INTERBANK
ACCOUNT.—Section 981 of title 18, United States Code,
is amended by adding at the end the following:
‘‘(k) INTERBANK ACCOUNTS.—
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‘‘(1) IN GENERAL.—
‘‘(A) IN GENERAL.—For the purpose of a
forfeiture under this section or under the Con-
trolled Substances Act (21 U.S.C. 801 et seq.),
if funds are deposited into an account at a for-
eign bank, and that foreign bank has an inter-
bank account in the United States with a cov-
ered financial institution (as defined in section
5318(j)(1) of title 31), the funds shall be
deemed to have been deposited into the inter-
bank account in the United States, and any re-
straining order, seizure warrant, or arrest war-
rant in rem regarding the funds may be served
on the covered financial institution, and funds
in the interbank account, up to the value of the
funds deposited into the account at the foreign
bank, may be restrained, seized, or arrested.
‘‘(B) AUTHORITY TO SUSPEND.—The At-
torney General, in consultation with the Sec-
retary of the Treasury, may suspend or termi-
nate a forfeiture under this section if the Attor-
ney General determines that a conflict of law
exists between the laws of the jurisdiction in
which the foreign bank is located and the laws
of the United States with respect to liabilities
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arising from the restraint, seizure, or arrest of
such funds, and that such suspension or termi-
nation would be in the interest of justice and
would not harm the national interests of the
United States.
‘‘(2) NO REQUIREMENT FOR GOVERNMENT TO
TRACE
FUNDS.—If a forfeiture action is brought
against funds that are restrained, seized, or arrested
under paragraph (1), it shall not be necessary for
the Government to establish that the funds are di-
rectly traceable to the funds that were deposited into
the foreign bank, nor shall it be necessary for the
Government to rely on the application of section
984.
‘‘(3) CLAIMS
BROUGHT
BY
OWNER
OF
THE
FUNDS.—If a forfeiture action is instituted against
funds restrained, seized, or arrested under para-
graph (1), the owner of the funds deposited into the
account at the foreign bank may contest the for-
feiture by filing a claim under section 983.
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) INTERBANK
ACCOUNT.—The term
‘interbank account’ has the same meaning as in
section 984(c)(2)(B).
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‘‘(B) OWNER.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the term ‘owner’—
‘‘(I) means the person who was
the owner, as that term is defined in
section 983(d)(6), of the funds that
were deposited into the foreign bank
at the time such funds were deposited;
and
‘‘(II) does not include either the
foreign bank or any financial institu-
tion acting as an intermediary in the
transfer of the funds into the inter-
bank account.
‘‘(ii) EXCEPTION.—The foreign bank
may be considered the ‘owner’ of the funds
(and no other person shall qualify as the
owner of such funds) only if—
‘‘(I) the basis for the forfeiture
action is wrongdoing committed by
the foreign bank; or
‘‘(II) the foreign bank estab-
lishes, by a preponderance of the evi-
dence, that prior to the restraint, sei-
zure, or arrest of the funds, the for-
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eign bank had discharged all or part
of its obligation to the prior owner of
the funds, in which case the foreign
bank shall be deemed the owner of the
funds to the extent of such discharged
obligation.’’.
(b) BANK RECORDS.—Section 5318 of title 31,
United States Code, as amended by this title, is amended
by adding at the end the following:
‘‘(k) BANK RECORDS RELATED
TO ANTI-MONEY
LAUNDERING PROGRAMS.—
‘‘(1) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) APPROPRIATE
FEDERAL
BANKING
AGENCY.—The term ‘appropriate Federal bank-
ing agency’ has the same meaning as in section
3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
‘‘(B) INCORPORATED
TERM.—The term
‘correspondent account’ has the same meaning
as in section 5318A(f)(1)(B).
‘‘(2) 120-HOUR
RULE.—Not later than 120
hours after receiving a request by an appropriate
Federal banking agency for information related to
anti-money laundering compliance by a covered fi-
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nancial institution or a customer of such institution,
a covered financial institution shall provide to the
appropriate Federal banking agency, or make avail-
able at a location specified by the representative of
the appropriate Federal banking agency, information
and account documentation for any account opened,
maintained, administered or managed in the United
States by the covered financial institution.
‘‘(3) FOREIGN BANK RECORDS.—
‘‘(A) 
SUMMONS
OR
SUBPOENA
OF
RECORDS.—
‘‘(i) IN GENERAL.—The Secretary of
the Treasury or the Attorney General may
issue a summons or subpoena to any for-
eign bank that maintains a correspondent
account in the United States and request
records related to such correspondent ac-
count, including records maintained out-
side of the United States relating to the
deposit of funds into the foreign bank.
‘‘(ii) SERVICE OF SUMMONS OR SUB-
POENA.—A summons or subpoena referred
to in clause (i) may be served on the for-
eign bank in the United States if the for-
eign bank has a representative in the
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United States, or in a foreign country pur-
suant to any mutual legal assistance trea-
ty, multilateral agreement, or other request
for international law enforcement assist-
ance.
‘‘(B) ACCEPTANCE OF SERVICE.—
‘‘(i) MAINTAINING RECORDS IN THE
UNITED
STATES.—Any covered financial
institution 
which 
maintains 
a 
cor-
respondent account in the United States
for a foreign bank shall maintain records
in the United States identifying the owners
of such foreign bank and the name and ad-
dress of a person who resides in the United
States and is authorized to accept service
of legal process for records regarding the
correspondent account.
‘‘(ii) LAW ENFORCEMENT REQUEST.—
Upon receipt of a written request from a
Federal law enforcement officer for infor-
mation required to be maintained under
this paragraph, the covered financial insti-
tution shall provide the information to the
requesting officer not later than 7 days
after receipt of the request.
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‘‘(C) TERMINATION
OF
CORRESPONDENT
RELATIONSHIP.—
‘‘(i) TERMINATION UPON RECEIPT OF
NOTICE.—A covered financial institution
shall terminate any correspondent relation-
ship with a foreign bank not later than 10
business days after receipt of written no-
tice from the Secretary or the Attorney
General (in each case, after consultation
with the other) that the foreign bank has
failed—
‘‘(I) to comply with a summons
or subpoena issued under subpara-
graph (A); or
‘‘(II) to initiate proceedings in a
United States court contesting such
summons or subpoena.
‘‘(ii) LIMITATION
ON
LIABILITY.—A
covered financial institution shall not be
liable to any person in any court or arbi-
tration proceeding for terminating a cor-
respondent relationship in accordance with
this subsection.
‘‘(iii) FAILURE TO TERMINATE RELA-
TIONSHIP.—Failure to terminate a cor-
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respondent relationship in accordance with
this subsection shall render the covered fi-
nancial institution liable for a civil penalty
of up to $10,000 per day until the cor-
respondent relationship is so terminated.’’.
(c) GRACE PERIOD.—Financial institutions shall
have 60 days from the date of enactment of this Act to
comply with the provisions of section 5318(k) of title 31,
United States Code, as added by this section.
(d) AUTHORITY TO ORDER CONVICTED CRIMINAL
TO RETURN PROPERTY LOCATED ABROAD.—
(1) FORFEITURE OF SUBSTITUTE PROPERTY.—
Section 413(p) of the Controlled Substances Act (21
U.S.C. 853) is amended to read as follows:
‘‘(p) FORFEITURE OF SUBSTITUTE PROPERTY.—
‘‘(1) IN GENERAL.—Paragraph (2) of this sub-
section shall apply, if any property described in sub-
section (a), as a result of any act or omission of the
defendant—
‘‘(A) cannot be located upon the exercise of
due diligence;
‘‘(B) has been transferred or sold to, or
deposited with, a third party;
‘‘(C) has been placed beyond the jurisdic-
tion of the court;
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‘‘(D) has been substantially diminished in
value; or
‘‘(E) has been commingled with other
property which cannot be divided without dif-
ficulty.
‘‘(2) SUBSTITUTE PROPERTY.—In any case de-
scribed in any of subparagraphs (A) through (E) of
paragraph (1), the court shall order the forfeiture of
any other property of the defendant, up to the value
of any property described in subparagraphs (A)
through (E) of paragraph (1), as applicable.
‘‘(3) RETURN
OF
PROPERTY
TO
JURISDIC-
TION.—In the case of property described in para-
graph (1)(C), the court may, in addition to any
other action authorized by this subsection, order the
defendant to return the property to the jurisdiction
of the court so that the property may be seized and
forfeited.’’.
(2) PROTECTIVE
ORDERS.—Section 413(e) of
the Controlled Substances Act (21 U.S.C. 853(e)) is
amended by adding at the end the following:
‘‘(4) ORDER TO REPATRIATE AND DEPOSIT.—
‘‘(A) IN GENERAL.—Pursuant to its au-
thority to enter a pretrial restraining order
under this section, the court may order a de-
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fendant to repatriate any property that may be
seized and forfeited, and to deposit that prop-
erty pending trial in the registry of the court,
or with the United States Marshals Service or
the Secretary of the Treasury, in an interest-
bearing account, if appropriate.
‘‘(B) FAILURE
TO
COMPLY.—Failure to
comply with an order under this subsection, or
an order to repatriate property under sub-
section (p), shall be punishable as a civil or
criminal contempt of court, and may also result
in an enhancement of the sentence of the de-
fendant under the obstruction of justice provi-
sion of the Federal Sentencing Guidelines.’’.
SEC. 320. PROCEEDS OF FOREIGN CRIMES.
Section 981(a)(1)(B) of title 18, United States Code,
is amended to read as follows:
‘‘(B) Any property, real or personal, within the
jurisdiction of the United States, constituting, de-
rived from, or traceable to, any proceeds obtained di-
rectly or indirectly from an offense against a foreign
nation, or any property used to facilitate such an of-
fense, if the offense—
‘‘(i) involves the manufacture, importation,
sale, or distribution of a controlled substance
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(as that term is defined for purposes of the
Controlled Substances Act), or any other con-
duct described in section 1956(c)(7)(B);
‘‘(ii) would be punishable within the juris-
diction of the foreign nation by death or impris-
onment for a term exceeding 1 year; and
‘‘(iii) would be punishable under the laws
of the United States by imprisonment for a
term exceeding 1 year, if the act or activity con-
stituting the offense had occurred within the ju-
risdiction of the United States.’’.
SEC. 321. FINANCIAL INSTITUTIONS SPECIFIED IN SUB-
CHAPTER II OF CHAPTER 53 OF TITLE 31,
UNITED STATES CODE.
(a) CREDIT UNIONS.—Subparagraph (E) of section
5312(2) of title 31, United States Code, is amended to
read as follows:
‘‘(E) any credit union;’’.
(b) FUTURES COMMISSION MERCHANT; COMMODITY
TRADING ADVISOR; COMMODITY POOL OPERATOR.—Sec-
tion 5312 of title 31, United States Code, is amended by
adding at the end the following new subsection:
‘‘(c) ADDITIONAL DEFINITIONS.—For purposes of
this subchapter, the following definitions shall apply:
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‘‘(1) CERTAIN
INSTITUTIONS
INCLUDED
IN
DEFINITION.—The term ‘financial institution’ (as
defined in subsection (a)) includes the following:
‘‘(A) Any futures commission merchant,
commodity trading advisor, or commodity pool
operator registered, or required to register,
under the Commodity Exchange Act.’’.
(c) CFTC INCLUDED.—For purposes of this Act and
any amendment made by this Act to any other provision
of law, the term ‘‘Federal functional regulator’’ includes
the Commodity Futures Trading Commission.
SEC. 322. CORPORATION REPRESENTED BY A FUGITIVE.
Section 2466 of title 18, United States Code, is
amended by designating the present matter as subsection
(a), and adding at the end the following:
‘‘(b) Subsection (a) may be applied to a claim filed
by a corporation if any majority shareholder, or individual
filing the claim on behalf of the corporation is a person
to whom subsection (a) applies.’’.
SEC. 323. ENFORCEMENT OF FOREIGN JUDGMENTS.
Section 2467 of title 28, United States Code, is
amended—
(1) in subsection (d), by adding the following
after paragraph (2):
‘‘(3) PRESERVATION OF PROPERTY.—
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‘‘(A) IN GENERAL.—To preserve the avail-
ability of property subject to a foreign forfeiture
or confiscation judgment, the Government may
apply for, and the court may issue, a restrain-
ing order pursuant to section 983(j) of title 18,
at any time before or after an application is
filed pursuant to subsection (c)(1) of this sec-
tion.
‘‘(B) EVIDENCE.—The court, in issuing a
restraining order under subparagraph (A)—
‘‘(i) may rely on information set forth
in an affidavit describing the nature of the
proceeding or investigation underway in
the foreign country, and setting forth a
reasonable basis to believe that the prop-
erty to be restrained will be named in a
judgment of forfeiture at the conclusion of
such proceeding; or
‘‘(ii) may register and enforce a re-
straining order that has been issued by a
court of competent jurisdiction in the for-
eign country and certified by the Attorney
General pursuant to subsection (b)(2).
‘‘(C) LIMIT
ON
GROUNDS
FOR
OBJEC-
TION.—No person may object to a restraining
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order under subparagraph (A) on any ground
that is the subject of parallel litigation involving
the same property that is pending in a foreign
court.’’;
(2) in subsection (b)(1)(C), by striking ‘‘estab-
lishing that the defendant received notice of the pro-
ceedings in sufficient time to enable the defendant’’
and inserting ‘‘establishing that the foreign nation
took steps, in accordance with the principles of due
process, to give notice of the proceedings to all per-
sons with an interest in the property in sufficient
time to enable such persons’’;
(3) in subsection (d)(1)(D), by striking ‘‘the de-
fendant in the proceedings in the foreign court did
not receive notice’’ and inserting ‘‘the foreign nation
did not take steps, in accordance with the principles
of due process, to give notice of the proceedings to
a person with an interest in the property’’; and
(4) in subsection (a)(2)(A), by inserting ‘‘, any
violation of foreign law that would constitute a viola-
tion or an offense for which property could be for-
feited under Federal law if the offense were com-
mitted in the United States’’ after ‘‘United Nations
Convention’’.
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SEC. 324. REPORT AND RECOMMENDATION.
Not later than 30 months after the date of enactment
of this Act, the Secretary, in consultation with the Attor-
ney General, the Federal banking agencies (as defined at
section 3 of the Federal Deposit Insurance Act), the Na-
tional Credit Union Administration Board, the Securities
and Exchange Commission, and such other agencies as the
Secretary may determine, at the discretion of the Sec-
retary, shall evaluate the operations of the provisions of
this subtitle and make recommendations to Congress as
to any legislative action with respect to this subtitle as
the Secretary may determine to be necessary or advisable.
SEC. 325. CONCENTRATION ACCOUNTS AT FINANCIAL IN-
STITUTIONS.
Section 5318(h) of title 31, United States Code, as
amended by section 202 of this title, is amended by adding
at the end the following:
‘‘(3) CONCENTRATION
ACCOUNTS.—The Sec-
retary may prescribe regulations under this sub-
section that govern maintenance of concentration ac-
counts by financial institutions, in order to ensure
that such accounts are not used to prevent associa-
tion of the identity of an individual customer with
the movement of funds of which the customer is the
direct or beneficial owner, which regulations shall, at
a minimum—
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‘‘(A) prohibit financial institutions from al-
lowing clients to direct transactions that move
their funds into, out of, or through the con-
centration accounts of the financial institution;
‘‘(B) prohibit financial institutions and
their employees from informing customers of
the existence of, or the means of identifying,
the concentration accounts of the institution;
and
‘‘(C) require each financial institution to
establish written procedures governing the doc-
umentation of all transactions involving a con-
centration account, which procedures shall en-
sure that, any time a transaction involving a
concentration account commingles funds belong-
ing to 1 or more customers, the identity of, and
specific amount belonging to, each customer is
documented.’’.
SEC. 326. VERIFICATION OF IDENTIFICATION.
(a) IN GENERAL.—Section 5318 of title 31, United
States Code, as amended by this title, is amended by add-
ing at the end the following:
‘‘(l) 
IDENTIFICATION
AND
VERIFICATION
OF
ACCOUNTHOLDERS.—
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‘‘(1) IN
GENERAL.—Subject to the require-
ments of this subsection, the Secretary of the Treas-
ury shall prescribe regulations setting forth the min-
imum standards for financial institutions and their
customers regarding the identity of the customer
that shall apply in connection with the opening of an
account at a financial institution.
‘‘(2) MINIMUM
REQUIREMENTS.—The regula-
tions shall, at a minimum, require financial institu-
tions to implement, and customers (after being given
adequate notice) to comply with, reasonable proce-
dures for—
‘‘(A) verifying the identity of any person
seeking to open an account to the extent rea-
sonable and practicable;
‘‘(B) maintaining records of the informa-
tion used to verify a person’s identity, including
name, address, and other identifying informa-
tion; and
‘‘(C) consulting lists of known or suspected
terrorists or terrorist organizations provided to
the financial institution by any government
agency to determine whether a person seeking
to open an account appears on any such list.
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‘‘(3) FACTORS
TO
BE
CONSIDERED.—In pre-
scribing regulations under this subsection, the Sec-
retary shall take into consideration the various types
of accounts maintained by various types of financial
institutions, the various methods of opening ac-
counts, and the various types of identifying informa-
tion available.
‘‘(4) CERTAIN
FINANCIAL
INSTITUTIONS.—In
the case of any financial institution the business of
which is engaging in financial activities described in
section 4(k) of the Bank Holding Company Act of
1956 (including financial activities subject to the ju-
risdiction of the Commodity Futures Trading Com-
mission), the regulations prescribed by the Secretary
under paragraph (1) shall be prescribed jointly with
each Federal functional regulator (as defined in sec-
tion 509 of the Gramm-Leach-Bliley Act, including
the Commodity Futures Trading Commission) ap-
propriate for such financial institution.
‘‘(5) EXEMPTIONS.—The Secretary (and, in the
case of any financial institution described in para-
graph (4), any Federal agency described in such
paragraph) may, by regulation or order, exempt any
financial institution or type of account from the re-
quirements of any regulation prescribed under this
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subsection in accordance with such standards and
procedures as the Secretary may prescribe.
‘‘(6) EFFECTIVE DATE.—Final regulations pre-
scribed under this subsection shall take effect before
the end of the 1-year period beginning on the date
of enactment of the International Money Laundering
Abatement and Financial Anti-Terrorism Act of
2001.’’.
(b) STUDY
AND REPORT REQUIRED.—Within 6
months after the date of enactment of this Act, the Sec-
retary, in consultation with the Federal functional regu-
lators (as defined in section 509 of the Gramm-Leach-Bli-
ley Act) and other appropriate Government agencies, shall
submit a report to the Congress containing recommenda-
tions for—
(1) determining the most timely and effective
way to require foreign nationals to provide domestic
financial institutions and agencies with appropriate
and accurate information, comparable to that which
is required of United States nationals, concerning
the identity, address, and other related information
about such foreign nationals necessary to enable
such institutions and agencies to comply with the re-
quirements of this section;
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(2) requiring foreign nationals to apply for and
obtain, before opening an account with a domestic
financial institution, an identification number which
would function similarly to a Social Security number
or tax identification number; and
(3) establishing a system for domestic financial
institutions and agencies to review information
maintained by relevant Government agencies for
purposes of verifying the identities of foreign nation-
als seeking to open accounts at those institutions
and agencies.
SEC. 327. CONSIDERATION OF ANTI-MONEY LAUNDERING
RECORD.
(a) BANK HOLDING COMPANY ACT OF 1956.—
(1) IN
GENERAL.—Section 3(c) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1842(c))
is amended by adding at the end the following new
paragraph:
‘‘(6) MONEY LAUNDERING.—In every case, the
Board shall take into consideration the effectiveness
of the company or companies in combatting money
laundering 
activities, 
including 
in 
overseas
branches.’’.
(2) SCOPE OF APPLICATION.—The amendment made
by paragraph (1) shall apply with respect to any applica-
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tion submitted to the Board of Governors of the Federal
Reserve System under section 3 of the Bank Holding
Company Act of 1956 after December 31, 2001, which
has not been approved by the Board before the date of
enactment of this Act.
(b) MERGERS SUBJECT TO REVIEW UNDER FED-
ERAL DEPOSIT INSURANCE ACT.—
(1) IN GENERAL.—Section 18(c) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(c)) is
amended—
(A) by redesignating paragraph (11) as
paragraph (12); and
(B) by inserting after paragraph (10), the
following new paragraph:
‘‘(11) MONEY LAUNDERING.—In every case, the
responsible agency, shall take into consideration the
effectiveness of any insured depository institution in-
volved in the proposed merger transaction in com-
batting money laundering activities, including in
overseas branches.’’.
(2) SCOPE OF APPLICATION.—The amendment
made by paragraph (1) shall apply with respect to
any application submitted to the responsible agency
under section 18(c) of the Federal Deposit Insur-
ance Act after December 31, 2001, which has not
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been approved by all appropriate responsible agen-
cies before the date of enactment of this Act.
SEC. 328. INTERNATIONAL COOPERATION ON IDENTIFICA-
TION OF ORIGINATORS OF WIRE TRANSFERS.
The Secretary shall—
(1) in consultation with the Attorney General
and the Secretary of State, take all reasonable steps
to encourage foreign governments to require the in-
clusion of the name of the originator in wire transfer
instructions sent to the United States and other
countries, with the information to remain with the
transfer from its origination until the point of dis-
bursement; and
(2) report annually to the Committee on Finan-
cial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate on—
(A) progress toward the goal enumerated
in paragraph (1), as well as impediments to im-
plementation and an estimated compliance rate;
and
(B) impediments to instituting a regime in
which all appropriate identification, as defined
by the Secretary, about wire transfer recipients
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shall be included with wire transfers from their
point of origination until disbursement.
SEC. 329. CRIMINAL PENALTIES.
Any person who is an official or employee of any de-
partment, agency, bureau, office, commission, or other en-
tity of the Federal Government, and any other person who
is acting for or on behalf of any such entity, who, directly
or indirectly, in connection with the administration of this
title, corruptly demands, seeks, receives, accepts, or agrees
to receive or accept anything of value personally or for
any other person or entity in return for—
(1) being influenced in the performance of any
official act;
(2) being influenced to commit or aid in the
committing, or to collude in, or allow, any fraud, or
make opportunity for the commission of any fraud,
on the United States; or
(3) being induced to do or omit to do any act
in violation of the official duty of such official or
person,
shall be fined in an amount not more than 3 times the
monetary equivalent of the thing of value, or imprisoned
for not more than 15 years, or both. A violation of this
section shall be subject to chapter 227 of title 18, United
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States Code, and the provisions of the United States Sen-
tencing Guidelines.
SEC. 330. INTERNATIONAL COOPERATION IN INVESTIGA-
TIONS OF MONEY LAUNDERING, FINANCIAL
CRIMES, AND THE FINANCES OF TERRORIST
GROUPS.
(a) NEGOTIATIONS.—It is the sense of the Congress
that the President should direct the Secretary of State,
the Attorney General, or the Secretary of the Treasury,
as appropriate, and in consultation with the Board of Gov-
ernors of the Federal Reserve System, to seek to enter
into negotiations with the appropriate financial super-
visory agencies and other officials of any foreign country
the financial institutions of which do business with United
States financial institutions or which may be utilized by
any foreign terrorist organization (as designated under
section 219 of the Immigration and Nationality Act), any
person who is a member or representative of any such or-
ganization, or any person engaged in money laundering
or financial or other crimes.
(b) PURPOSES OF NEGOTIATIONS.—It is the sense of
the Congress that, in carrying out any negotiations de-
scribed in paragraph (1), the President should direct the
Secretary of State, the Attorney General, or the Secretary
of the Treasury, as appropriate, to seek to enter into and
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further cooperative efforts, voluntary information ex-
changes, the use of letters rogatory, mutual legal assist-
ance treaties, and international agreements to—
(1) ensure that foreign banks and other finan-
cial institutions maintain adequate records of trans-
action and account information relating to any for-
eign terrorist organization (as designated under sec-
tion 219 of the Immigration and Nationality Act),
any person who is a member or representative of any
such organization, or any person engaged in money
laundering or financial or other crimes; and
(2) establish a mechanism whereby such records
may be made available to United States law enforce-
ment officials and domestic financial institution su-
pervisors, when appropriate.
Subtitle 
B—Bank 
Secrecy 
Act
Amendments and Related Im-
provements
SEC. 351. AMENDMENTS RELATING TO REPORTING OF SUS-
PICIOUS ACTIVITIES.
(a) AMENDMENT RELATING TO CIVIL LIABILITY IM-
MUNITY FOR DISCLOSURES.—Section 5318(g)(3) of title
31, United States Code, is amended to read as follows:
‘‘(3) LIABILITY FOR DISCLOSURES.—
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‘‘(A) IN GENERAL.—Any financial institu-
tion that makes a voluntary disclosure of any
possible violation of law or regulation to a gov-
ernment agency or makes a disclosure pursuant
to this subsection or any other authority, and
any director, officer, employee, or agent of such
institution who makes, or requires another to
make any such disclosure, shall not be liable to
any person under any law or regulation of the
United States, any constitution, law, or regula-
tion of any State or political subdivision of any
State, or under any contract or other legally en-
forceable agreement (including any arbitration
agreement), for such disclosure or for any fail-
ure to provide notice of such disclosure to the
person who is the subject of such disclosure or
any other person identified in the disclosure.
‘‘(B) RULE OF CONSTRUCTION.—Subpara-
graph (A) shall not be construed as creating—
‘‘(i) any inference that the term ‘per-
son’, as used in such subparagraph, may
be construed more broadly than its ordi-
nary usage so as to include any govern-
ment or agency of government; or
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‘‘(ii) any immunity against, or other-
wise affecting, any civil or criminal action
brought by any government or agency of
government to enforce any constitution,
law, or regulation of such government or
agency.’’.
(b) PROHIBITION
ON NOTIFICATION
OF DISCLO-
SURES.—Section 5318(g)(2) of title 31, United States
Code, is amended to read as follows:
‘‘(2) NOTIFICATION PROHIBITED.—
‘‘(A) IN GENERAL.—If a financial institu-
tion or any director, officer, employee, or agent
of any financial institution, voluntarily or pur-
suant to this section or any other authority, re-
ports a suspicious transaction to a government
agency—
‘‘(i) the financial institution, director,
officer, employee, or agent may not notify
any person involved in the transaction that
the transaction has been reported; and
‘‘(ii) no officer or employee of the
Federal Government or of any State, local,
tribal, or territorial government within the
United States, who has any knowledge that
such report was made may disclose to any
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person involved in the transaction that the
transaction has been reported, other than
as necessary to fulfill the official duties of
such officer or employee.
‘‘(B) DISCLOSURES IN CERTAIN EMPLOY-
MENT REFERENCES.—
‘‘(i) RULE OF CONSTRUCTION.—Not-
withstanding the application of subpara-
graph (A) in any other context, subpara-
graph (A) shall not be construed as prohib-
iting any financial institution, or any direc-
tor, officer, employee, or agent of such in-
stitution, from including information that
was included in a report to which subpara-
graph (A) applies—
‘‘(I) in a written employment ref-
erence that is provided in accordance
with section 18(w) of the Federal De-
posit Insurance Act in response to a
request from another financial institu-
tion; or
‘‘(II) in a written termination no-
tice or employment reference that is
provided in accordance with the rules
of a self-regulatory organization reg-
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istered with the Securities and Ex-
change Commission or the Commodity
Futures Trading Commission,
except that such written reference or notice
may not disclose that such information was
also included in any such report, or that
such report was made.
‘‘(ii) INFORMATION NOT REQUIRED.—
Clause (i) shall not be construed, by itself,
to create any affirmative duty to include
any information described in clause (i) in
any employment reference or termination
notice referred to in clause (i).’’.
SEC. 352. ANTI-MONEY LAUNDERING PROGRAMS.
(a) IN GENERAL.—Section 5318(h) of title 31,
United States Code, is amended to read as follows:
‘‘(h) ANTI-MONEY LAUNDERING PROGRAMS.—
‘‘(1) IN GENERAL.—In order to guard against
money laundering through financial institutions,
each financial institution shall establish anti-money
laundering programs, including, at a minimum—
‘‘(A) the development of internal policies,
procedures, and controls;
‘‘(B) the designation of a compliance offi-
cer;
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‘‘(C) an ongoing employee training pro-
gram; and
‘‘(D) an independent audit function to test
programs.
‘‘(2) REGULATIONS.—The Secretary of the
Treasury, after consultation with the appropriate
Federal functional regulator (as defined in section
509 of the Gramm-Leach-Bliley Act), may prescribe
minimum standards for programs established under
paragraph (1), and may exempt from the application
of those standards any financial institution that is
not subject to the provisions of the rules contained
in part 103 of title 31, of the Code of Federal Regu-
lations, or any successor rule thereto, for so long as
such financial institution is not subject to the provi-
sions of such rules.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect at the end of the 180-day
period beginning on the date of enactment of this Act.
(c) DATE OF APPLICATION OF REGULATIONS; FAC-
TORS TO BE TAKEN INTO ACCOUNT.—Before the end of
the 180-day period beginning on the date of enactment
of this Act, the Secretary shall prescribe regulations that
consider the extent to which the requirements imposed
under this section are commensurate with the size, loca-
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tion, and activities of the financial institutions to which
such regulations apply.
SEC. 353. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC
TARGETING ORDERS AND CERTAIN RECORD-
KEEPING 
REQUIREMENTS, 
AND 
LENGTH-
ENING EFFECTIVE PERIOD OF GEOGRAPHIC
TARGETING ORDERS.
(a) CIVIL PENALTY FOR VIOLATION OF TARGETING
ORDER.—Section 5321(a)(1) of title 31, United States
Code, is amended—
(1) by inserting ‘‘or order issued’’ after ‘‘sub-
chapter or a regulation prescribed’’; and
(2) by inserting ‘‘, or willfully violating a regu-
lation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law
91–508,’’ after ‘‘sections 5314 and 5315)’’.
(b) CRIMINAL PENALTIES FOR VIOLATION OF TAR-
GETING ORDER.—Section 5322 of title 31, United States
Code, is amended—
(1) in subsection (a)—
(A) by inserting ‘‘or order issued’’ after
‘‘willfully violating this subchapter or a regula-
tion prescribed’’; and
(B) by inserting ‘‘, or willfully violating a
regulation prescribed under section 21 of the
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Federal Deposit Insurance Act or section 123
of Public Law 91–508,’’ after ‘‘under section
5315 or 5324)’’; and
(2) in subsection (b)—
(A) by inserting ‘‘or order issued’’ after
‘‘willfully violating this subchapter or a regula-
tion prescribed’’; and
(B) by inserting ‘‘or willfully violating a
regulation prescribed under section 21 of the
Federal Deposit Insurance Act or section 123
of Public Law 91–508,’’ after ‘‘under section
5315 or 5324),’’.
(c) STRUCTURING TRANSACTIONS TO EVADE TAR-
GETING ORDER OR CERTAIN RECORDKEEPING REQUIRE-
MENTS.—Section 5324(a) of title 31, United States Code,
is amended—
(1) by inserting a comma after ‘‘shall’’;
(2) by striking ‘‘section—’’ and inserting ‘‘sec-
tion, the reporting or recordkeeping requirements
imposed by any order issued under section 5326, or
the recordkeeping requirements imposed by any reg-
ulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law
91–508—’’;
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(3) in paragraph (1), by inserting ‘‘, to file a
report or to maintain a record required by an order
issued under section 5326, or to maintain a record
required pursuant to any regulation prescribed
under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91–508’’ after
‘‘regulation prescribed under any such section’’; and
(4) in paragraph (2), by inserting ‘‘, to file a
report or to maintain a record required by any order
issued under section 5326, or to maintain a record
required pursuant to any regulation prescribed
under section 5326, or to maintain a record required
pursuant to any regulation prescribed under section
21 of the Federal Deposit Insurance Act or section
123 of Public Law 91–508,’’ after ‘‘regulation pre-
scribed under any such section’’.
(d) LENGTHENING EFFECTIVE PERIOD
OF GEO-
GRAPHIC TARGETING ORDERS.—Section 5326(d) of title
31, United States Code, is amended by striking ‘‘more
than 60’’ and inserting ‘‘more than 180’’.
SEC. 354. ANTI-MONEY LAUNDERING STRATEGY.
Section 5341(b) of title 31, United States Code, is
amended by adding at the end the following:
‘‘(12) DATA
REGARDING
FUNDING
OF
TER-
RORISM.—Data concerning money laundering efforts
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related to the funding of acts of international ter-
rorism, and efforts directed at the prevention, detec-
tion, and prosecution of such funding.’’.
SEC. 355. AUTHORIZATION TO INCLUDE SUSPICIONS OF IL-
LEGAL ACTIVITY IN WRITTEN EMPLOYMENT
REFERENCES.
Section 18 of the Federal Deposit Insurance Act (12
U.S.C. 1828) is amended by adding at the end the fol-
lowing:
‘‘(w) WRITTEN EMPLOYMENT REFERENCES MAY
CONTAIN SUSPICIONS OF INVOLVEMENT IN ILLEGAL AC-
TIVITY.—
‘‘(1) 
AUTHORITY
TO
DISCLOSE
INFORMA-
TION.—Notwithstanding any other provision of law,
any insured depository institution, and any director,
officer, employee, or agent of such institution, may
disclose in any written employment reference relat-
ing to a current or former institution-affiliated party
of such institution which is provided to another in-
sured depository institution in response to a request
from such other institution, information concerning
the possible involvement of such institution-affiliated
party in potentially unlawful activity.
‘‘(2) INFORMATION
NOT
REQUIRED.—Nothing
in paragraph (1) shall be construed, by itself, to cre-
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ate any affirmative duty to include any information
described in paragraph (1) in any employment ref-
erence referred to in paragraph (1).
‘‘(3) 
MALICIOUS
INTENT.—Notwithstanding
any other provision of this subsection, voluntary dis-
closure made by an insured depository institution,
and any director, officer, employee, or agent of such
institution under this subsection concerning poten-
tially unlawful activity that is made with malicious
intent, shall not be shielded from liability from the
person identified in the disclosure.
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘insured depository institution’ in-
cludes any uninsured branch or agency of a foreign
bank.’’.
SEC. 356. REPORTING OF SUSPICIOUS ACTIVITIES BY SECU-
RITIES BROKERS AND DEALERS; INVEST-
MENT COMPANY STUDY.
(a) DEADLINE FOR SUSPICIOUS ACTIVITY REPORT-
ING REQUIREMENTS
FOR REGISTERED BROKERS
AND
DEALERS.—The Secretary, after consultation with the Se-
curities and Exchange Commission and the Board of Gov-
ernors of the Federal Reserve System, shall publish pro-
posed regulations in the Federal Register before January
1, 2002, requiring brokers and dealers registered with the
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Securities and Exchange Commission under the Securities
Exchange Act of 1934 to submit suspicious activity re-
ports under section 5318(g) of title 31, United States
Code. Such regulations shall be published in final form
not later than July 1, 2002.
(b) SUSPICIOUS ACTIVITY REPORTING REQUIRE-
MENTS FOR FUTURES COMMISSION MERCHANTS, COM-
MODITY TRADING ADVISORS, AND COMMODITY POOL OP-
ERATORS.—The Secretary, in consultation with the Com-
modity Futures Trading Commission, may prescribe regu-
lations requiring futures commission merchants, com-
modity trading advisors, and commodity pool operators
registered under the Commodity Exchange Act to submit
suspicious activity reports under section 5318(g) of title
31, United States Code.
(c) REPORT ON INVESTMENT COMPANIES.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Secretary, the
Board of Governors of the Federal Reserve System,
and the Securities and Exchange Commission shall
jointly submit a report to the Congress on rec-
ommendations for effective regulations to apply the
requirements of subchapter II of chapter 53 of title
31, United States Code, to investment companies
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pursuant to section 5312(a)(2)(I) of title 31, United
States Code.
(2) DEFINITION.—For purposes of this sub-
section, the term ‘‘investment company’’—
(A) has the same meaning as in section 3
of the Investment Company Act of 1940 (15
U.S.C. 80a–3); and
(B) includes any person that, but for the
exceptions provided for in paragraph (1) or (7)
of section 3(c) of the Investment Company Act
of 1940 (15 U.S.C. 80a–3(c)), would be an in-
vestment company.
(3) ADDITIONAL RECOMMENDATIONS.—The re-
port required by paragraph (1) may make different
recommendations for different types of entities cov-
ered by this subsection.
(4) BENEFICIAL
OWNERSHIP
OF
PERSONAL
HOLDING
COMPANIES.—The report described in
paragraph (1) shall also include recommendations as
to whether the Secretary should promulgate regula-
tions to treat any corporation or business or other
grantor trust whose assets are predominantly securi-
ties, bank certificates of deposit, or other securities
or investment instruments (other than such as relate
to operating subsidiaries of such corporation or
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trust) and that has 5 or fewer common shareholders
or holders of beneficial or other equity interest, as
a financial institution within the meaning of that
phrase in section 5312(a)(2)(I) and whether to re-
quire such corporations or trusts to disclose their
beneficial owners when opening accounts or initi-
ating funds transfers at any domestic financial insti-
tution.
SEC. 357. SPECIAL REPORT ON ADMINISTRATION OF BANK
SECRECY PROVISIONS.
(a) REPORT REQUIRED.—Not later than 6 months
after the date of enactment of this Act, the Secretary shall
submit a report to the Congress relating to the role of
the Internal Revenue Service in the administration of sub-
chapter II of chapter 53 of title 31, United States Code
(commonly known as the ‘‘Bank Secrecy Act’’).
(b) CONTENTS.—The report required by subsection
(a)—
(1) shall specifically address, and contain rec-
ommendations concerning—
(A) whether it is advisable to shift the
processing of information reporting to the De-
partment of the Treasury under the Bank Se-
crecy Act provisions to facilities other than
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those managed by the Internal Revenue Service;
and
(B) whether it remains reasonable and effi-
cient, in light of the objective of both anti-
money-laundering programs and Federal tax
administration, for the Internal Revenue Serv-
ice to retain authority and responsibility for
audit and examination of the compliance of
money services businesses and gaming institu-
tions with those Bank Secrecy Act provisions;
and
(2) shall, if the Secretary determines that the
information processing responsibility or the audit
and examination responsibility of the Internal Rev-
enue Service, or both, with respect to those Bank
Secrecy Act provisions should be transferred to other
agencies, include the specific recommendations of
the Secretary regarding the agency or agencies to
which any such function should be transferred, com-
plete with a budgetary and resources plan for expe-
ditiously accomplishing the transfer.
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SEC. 358. BANK SECRECY PROVISIONS AND ACTIVITIES OF
UNITED STATES INTELLIGENCE AGENCIES
TO FIGHT INTERNATIONAL TERRORISM.
(a) AMENDMENT RELATING TO THE PURPOSES OF
CHAPTER 53 OF TITLE 31, UNITED STATES CODE.—Sec-
tion 5311 of title 31, United States Code, is amended by
inserting before the period at the end the following: ‘‘, or
in the conduct of intelligence or counterintelligence activi-
ties, including analysis, to protect against international
terrorism’’.
(b) AMENDMENT RELATING TO REPORTING OF SUS-
PICIOUS ACTIVITIES.—Section 5318(g)(4)(B) of title 31,
United States Code, is amended by striking ‘‘or super-
visory agency’’ and inserting ‘‘, supervisory agency, or
United States intelligence agency for use in the conduct
of intelligence or counterintelligence activities, including
analysis, to protect against international terrorism’’.
(c) AMENDMENT RELATING
TO AVAILABILITY
OF
REPORTS.—Section 5319 of title 31, United States Code,
is amended to read as follows:
‘‘§ 5319. Availability of reports
‘‘The Secretary of the Treasury shall make informa-
tion in a report filed under this subchapter available to
an agency, including any State financial institutions su-
pervisory agency, United States intelligence agency or self-
regulatory organization registered with the Securities and
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Exchange Commission or the Commodity Futures Trading
Commission, upon request of the head of the agency or
organization. The report shall be available for a purpose
that is consistent with this subchapter. The Secretary may
only require reports on the use of such information by any
State financial institutions supervisory agency for other
than supervisory purposes or by United States intelligence
agencies. However, a report and records of reports are ex-
empt from disclosure under section 552 of title 5.’’.
(d) AMENDMENT RELATING TO THE PURPOSES OF
THE BANK SECRECY ACT PROVISIONS.—Section 21(a) of
the Federal Deposit Insurance Act (12 U.S.C. 1829b(a))
is amended to read as follows:
‘‘(a) CONGRESSIONAL FINDINGS AND DECLARATION
OF PURPOSE.—
‘‘(1) FINDINGS.—Congress finds that—
‘‘(A) adequate records maintained by in-
sured depository institutions have a high degree
of usefulness in criminal, tax, and regulatory
investigations or proceedings, and that, given
the threat posed to the security of the Nation
on and after the terrorist attacks against the
United States on September 11, 2001, such
records may also have a high degree of useful-
ness in the conduct of intelligence or counter-
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intelligence activities, including analysis, to pro-
tect against domestic and international ter-
rorism; and
‘‘(B) microfilm or other reproductions and
other records made by insured depository insti-
tutions of checks, as well as records kept by
such institutions, of the identity of persons
maintaining or authorized to act with respect to
accounts therein, have been of particular value
in proceedings described in subparagraph (A).
‘‘(2) PURPOSE.—It is the purpose of this sec-
tion to require the maintenance of appropriate types
of records by insured depository institutions in the
United States where such records have a high degree
of usefulness in criminal, tax, or regulatory inves-
tigations or proceedings, recognizes that, given the
threat posed to the security of the Nation on and
after the terrorist attacks against the United States
on September 11, 2001, such records may also have
a high degree of usefulness in the conduct of intel-
ligence or counterintelligence activities, including
analysis, to protect against international terrorism.’’.
(e) AMENDMENT RELATING TO THE PURPOSES OF
THE BANK SECRECY ACT.—Section 123(a) of Public Law
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91–508 (12 U.S.C. 1953(a)) is amended to read as fol-
lows:
‘‘(a) REGULATIONS.—If the Secretary determines
that the maintenance of appropriate records and proce-
dures by any uninsured bank or uninsured institution, or
any person engaging in the business of carrying on in the
United States any of the functions referred to in sub-
section (b), has a high degree of usefulness in criminal,
tax, or regulatory investigations or proceedings, and that,
given the threat posed to the security of the Nation on
and after the terrorist attacks against the United States
on September 11, 2001, such records may also have a high
degree of usefulness in the conduct of intelligence or coun-
terintelligence activities, including analysis, to protect
against international terrorism, he may by regulation re-
quire such bank, institution, or person.’’.
(f) AMENDMENTS TO THE RIGHT TO FINANCIAL PRI-
VACY ACT.—The Right to Financial Privacy Act of 1978
is amended—
(1) in section 1112(a) (12 U.S.C. 3412(a)), by
inserting ‘‘, or intelligence or counterintelligence ac-
tivity, investigation or analysis related to inter-
national terrorism’’ after ‘‘legitimate law enforce-
ment inquiry’’;
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(2) 
in 
section 
1114(a)(1) 
(12 
U.S.C.
3414(a)(1))—
(A) in subparagraph (A), by striking ‘‘or’’
at the end;
(B) in subparagraph (B), by striking the
period at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(C) a Government authority authorized to
conduct investigations of, or intelligence or
counterintelligence analyses related to, inter-
national terrorism for the purpose of con-
ducting such investigations or analyses.’’; and
(3) 
in 
section 
1120(a)(2) 
(12 
U.S.C.
3420(a)(2)), by inserting ‘‘, or for a purpose author-
ized by section 1112(a)’’ before the semicolon at the
end.
(g) AMENDMENT TO THE FAIR CREDIT REPORTING
ACT.—
(1) IN GENERAL.—The Fair Credit Reporting
Act (15 U.S.C. 1681 et seq.) is amended—
(A) by redesignating the second of the 2
sections designated as section 624 (15 U.S.C.
1681u) (relating to disclosure to FBI for coun-
terintelligence purposes) as section 625; and
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(B) by adding at the end the following new
section:
‘‘§ 626. Disclosures to governmental agencies for
counterterrorism purposes
‘‘(a) DISCLOSURE.—Notwithstanding section 604 or
any other provision of this title, a consumer reporting
agency shall furnish a consumer report of a consumer and
all other information in a consumer’s file to a government
agency authorized to conduct investigations of, or intel-
ligence or counterintelligence activities or analysis related
to, international terrorism when presented with a written
certification by such government agency that such infor-
mation is necessary for the agency’s conduct or such inves-
tigation, activity or analysis.
‘‘(b) FORM
OF CERTIFICATION.—The certification
described in subsection (a) shall be signed by a supervisory
official designated by the head of a Federal agency or an
officer of a Federal agency whose appointment to office
is required to be made by the President, by and with the
advice and consent of the Senate.
‘‘(c) CONFIDENTIALITY.—No consumer reporting
agency, or officer, employee, or agent of such consumer
reporting agency, shall disclose to any person, or specify
in any consumer report, that a government agency has
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sought or obtained access to information under subsection
(a).
‘‘(d) RULE OF CONSTRUCTION.—Nothing in section
625 shall be construed to limit the authority of the Direc-
tor of the Federal Bureau of Investigation under this sec-
tion.
‘‘(e) SAFE HARBOR.—Notwithstanding any other
provision of this title, any consumer reporting agency or
agent or employee thereof making disclosure of consumer
reports or other information pursuant to this section in
good-faith reliance upon a certification of a governmental
agency pursuant to the provisions of this section shall not
be liable to any person for such disclosure under this sub-
chapter, the constitution of any State, or any law or regu-
lation of any State or any political subdivision of any
State.’’.
(2) CLERICAL AMENDMENTS.—The table of sec-
tions for the Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended—
(A) by redesignating the second of the 2
items designated as section 624 as section 625;
and
(B) by inserting after the item relating to
section 625 (as so redesignated) the following
new item:
‘‘626. Disclosures to governmental agencies for counterterrorism purposes.’’.
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(h) APPLICATION OF AMENDMENTS.—The amend-
ments made by this section shall apply with respect to re-
ports filed or records maintained on, before, or after the
date of enactment of this Act.
SEC. 359. REPORTING OF SUSPICIOUS ACTIVITIES BY UN-
DERGROUND BANKING SYSTEMS.
(a) 
DEFINITION
FOR
SUBCHAPTER.—Section
5312(a)(2)(R) of title 31, United States Code, is amended
to read as follows:
‘‘(R) a licensed sender of money or any
other person who engages as a business in the
transmission of funds, including any person
who engages as a business in an informal
money transfer system or any network of people
who engage as a business in facilitating the
transfer of money domestically or internation-
ally outside of the conventional financial institu-
tions system;’’.
(b) MONEY
TRANSMITTING
BUSINESS.—Section
5330(d)(1)(A) of title 31, United States Code, is amended
by inserting before the semicolon the following: ‘‘or any
other person who engages as a business in the trans-
mission of funds, including any person who engages as a
business in an informal money transfer system or any net-
work of people who engage as a business in facilitating
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the transfer of money domestically or internationally out-
side of the conventional financial institutions system;’’.
(c) APPLICABILITY OF RULES.—Section 5318 of title
31, United States Code, as amended by this title, is
amended by adding at the end the following:
‘‘(l) APPLICABILITY OF RULES.—Any rules promul-
gated pursuant to the authority contained in section 21
of the Federal Deposit Insurance Act (12 U.S.C. 1829b)
shall apply, in addition to any other financial institution
to which such rules apply, to any person that engages as
a business in the transmission of funds, including any per-
son who engages as a business in an informal money
transfer system or any network of people who engage as
a business in facilitating the transfer of money domesti-
cally or internationally outside of the conventional finan-
cial institutions system.’’.
(d) REPORT.—Not later than 1 year after the date
of enactment of this Act, the Secretary of the Treasury
shall report to Congress on the need for any additional
legislation relating to persons who engage as a business
in an informal money transfer system or any network of
people who engage as a business in facilitating the trans-
fer of money domestically or internationally outside of the
conventional financial institutions system, counter money
laundering and regulatory controls relating to under-
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ground money movement and banking systems, including
whether the threshold for the filing of suspicious activity
reports under section 5318(g) of title 31, United States
Code should be lowered in the case of such systems.
SEC. 360. USE OF AUTHORITY OF UNITED STATES EXECU-
TIVE DIRECTORS.
(a) ACTION BY THE PRESIDENT.—If the President
determines that a particular foreign country has taken or
has committed to take actions that contribute to efforts
of the United States to respond to, deter, or prevent acts
of international terrorism, the Secretary may, consistent
with other applicable provisions of law, instruct the United
States Executive Director of each international financial
institution to use the voice and vote of the Executive Di-
rector to support any loan or other utilization of the funds
of respective institutions for such country, or any public
or private entity within such country.
(b) USE OF VOICE AND VOTE.—The Secretary may
instruct the United States Executive Director of each
international financial institution to aggressively use the
voice and vote of the Executive Director to require an au-
diting of disbursements at such institutions to ensure that
no funds are paid to persons who commit, threaten to
commit, or support terrorism.
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(c) DEFINITION.—For purposes of this section, the
term ‘‘international financial institution’’ means an insti-
tution described in section 1701(c)(2) of the International
Financial Institutions Act (22 U.S.C. 262r(c)(2)).
SEC. 361. FINANCIAL CRIMES ENFORCEMENT NETWORK.
(a) IN GENERAL.—Subchapter I of chapter 3 of title
31, United States Code, is amended—
(1) by redesignating section 310 as section 311;
and
(2) by inserting after section 309 the following
new section:
‘‘§ 310. Financial Crimes Enforcement Network
‘‘(a) IN GENERAL.—The Financial Crimes Enforce-
ment Network established by order of the Secretary of the
Treasury (Treasury Order Numbered 105-08, in this sec-
tion referred to as ‘FinCEN’) on April 25, 1990, shall be
a bureau in the Department of the Treasury.
‘‘(b) DIRECTOR.—
‘‘(1) APPOINTMENT.—The head of FinCEN
shall be the Director, who shall be appointed by the
Secretary of the Treasury.
‘‘(2) DUTIES
AND
POWERS.—The duties and
powers of the Director are as follows:
‘‘(A) Advise and make recommendations
on matters relating to financial intelligence, fi-
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nancial criminal activities, and other financial
activities to the Under Secretary of the Treas-
ury for Enforcement.
‘‘(B) Maintain a government-wide data ac-
cess service, with access, in accordance with ap-
plicable legal requirements, to the following:
‘‘(i) Information collected by the De-
partment of the Treasury, including report
information filed under subchapter II of
chapter 53 of this title (such as reports on
cash transactions, foreign financial agency
transactions and relationships, foreign cur-
rency transactions, exporting and import-
ing monetary instruments, and suspicious
activities), chapter 2 of title I of Public
Law 91–508, and section 21 of the Fed-
eral Deposit Insurance Act.
‘‘(ii) Information regarding national
and international currency flows.
‘‘(iii) Other records and data main-
tained by other Federal, State, local, and
foreign agencies, including financial and
other records developed in specific cases.
‘‘(iv) Other privately and publicly
available information.
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‘‘(C) Analyze and disseminate the available
data in accordance with applicable legal require-
ments and policies and guidelines established by
the Secretary of the Treasury and the Under
Secretary of the Treasury for Enforcement to—
‘‘(i) identify possible criminal activity
to appropriate Federal, State, local, and
foreign law enforcement agencies;
‘‘(ii) support ongoing criminal finan-
cial investigations and prosecutions and re-
lated proceedings, including civil and crimi-
nal tax and forfeiture proceedings;
‘‘(iii) identify possible instances of
noncompliance with subchapter II of chap-
ter 53 of this title, chapter 2 of title I of
Public Law 91–508, and section 21 of the
Federal Deposit Insurance Act to Federal
agencies with statutory responsibility for
enforcing compliance with such provisions
and other appropriate Federal regulatory
agencies;
‘‘(iv) evaluate and recommend possible
uses of special currency reporting require-
ments under section 5326;
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‘‘(v) determine emerging trends and
methods in money laundering and other fi-
nancial crimes;
‘‘(vi) support the conduct of intel-
ligence or counterintelligence activities, in-
cluding analysis, to protect against inter-
national terrorism; and
‘‘(vii) support government initiatives
against money laundering.
‘‘(D) Establish and maintain a financial
crimes communications center to furnish law
enforcement authorities with intelligence infor-
mation related to emerging or ongoing inves-
tigations and undercover operations.
‘‘(E) Furnish research, analytical, and in-
formational services to financial institutions,
appropriate Federal regulatory agencies with
regard to financial institutions, and appropriate
Federal, State, local, and foreign law enforce-
ment authorities, in accordance with policies
and guidelines established by the Secretary of
the Treasury or the Under Secretary of the
Treasury for Enforcement, in the interest of de-
tection, prevention, and prosecution of ter-
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rorism, organized crime, money laundering, and
other financial crimes.
‘‘(F) Assist Federal, State, local, and for-
eign law enforcement and regulatory authorities
in combatting the use of informal, nonbank net-
works and payment and barter system mecha-
nisms that permit the transfer of funds or the
equivalent of funds without records and without
compliance with criminal and tax laws.
‘‘(G) Provide computer and data support
and data analysis to the Secretary of the Treas-
ury for tracking and controlling foreign assets.
‘‘(H) Coordinate with financial intelligence
units in other countries on anti-terrorism and
anti-money laundering initiatives, and similar
efforts.
‘‘(I) Administer the requirements of sub-
chapter II of chapter 53 of this title, chapter 2
of title I of Public Law 91–508, and section 21
of the Federal Deposit Insurance Act, to the ex-
tent delegated such authority by the Secretary
of the Treasury.
‘‘(J) Such other duties and powers as the
Secretary of the Treasury may delegate or pre-
scribe.
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‘‘(c) REQUIREMENTS RELATING TO MAINTENANCE
AND USE OF DATA BANKS.—The Secretary of the Treas-
ury shall establish and maintain operating procedures with
respect to the government-wide data access service and the
financial crimes communications center maintained by
FinCEN which provide—
‘‘(1) for the coordinated and efficient trans-
mittal of information to, entry of information into,
and withdrawal of information from, the data main-
tenance 
system 
maintained 
by 
the 
Network,
including—
‘‘(A) the submission of reports through the
Internet or other secure network, whenever pos-
sible;
‘‘(B) the cataloguing of information in a
manner that facilitates rapid retrieval by law
enforcement personnel of meaningful data; and
‘‘(C) a procedure that provides for a
prompt initial review of suspicious activity re-
ports and other reports, or such other means as
the Secretary may provide, to identify informa-
tion that warrants immediate action; and
‘‘(2) in accordance with section 552a of title 5
and the Right to Financial Privacy Act of 1978, ap-
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propriate 
standards 
and 
guidelines 
for
determining—
‘‘(A) who is to be given access to the infor-
mation maintained by the Network;
‘‘(B) what limits are to be imposed on the
use of such information; and
‘‘(C) how information about activities or
relationships which involve or are closely associ-
ated with the exercise of constitutional rights is
to be screened out of the data maintenance sys-
tem.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for FinCEN such sums
as may be necessary for fiscal years 2002, 2003, 2004,
and 2005.’’.
(b) COMPLIANCE
WITH
REPORTING
REQUIRE-
MENTS.—The Secretary of the Treasury shall study meth-
ods for improving compliance with the reporting require-
ments established in section 5314 of title 31, United
States Code, and shall submit a report on such study to
the Congress by the end of the 6-month period beginning
on the date of enactment of this Act and each 1-year pe-
riod thereafter. The initial report shall include historical
data on compliance with such reporting requirements.
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(c) CLERICAL AMENDMENT.—The table of sections
for subchapter I of chapter 3 of title 31, United States
Code, is amended—
(1) by redesignating the item relating to section
310 as section 311; and
(2) by inserting after the item relating to sec-
tion 309 the following new item:
‘‘310. Financial Crimes Enforcement Network.’’.
SEC. 362. ESTABLISHMENT OF HIGHLY SECURE NETWORK.
(a) IN GENERAL.—The Secretary shall establish a
highly secure network in the Financial Crimes Enforce-
ment Network that—
(1) allows financial institutions to file reports
required under subchapter II or III of chapter 53 of
title 31, United States Code, chapter 2 of Public
Law 91–508, or section 21 of the Federal Deposit
Insurance Act through the secure network; and
(2) provides financial institutions with alerts
and other information regarding suspicious activities
that warrant immediate and enhanced scrutiny.
(b) EXPEDITED
DEVELOPMENT.—The Secretary
shall take such action as may be necessary to ensure that
the secure network required under subsection (a) is fully
operational before the end of the 9-month period begin-
ning on the date of enactment of this Act.
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SEC. 363. INCREASE IN CIVIL AND CRIMINAL PENALTIES
FOR MONEY LAUNDERING.
(a) CIVIL PENALTIES.—Section 5321(a) of title 31,
United States Code, is amended by adding at the end the
following:
‘‘(7) 
PENALTIES
FOR
INTERNATIONAL
COUNTER
MONEY
LAUNDERING
VIOLATIONS.—The
Secretary may impose a civil money penalty in an
amount equal to not less than 2 times the amount
of the transaction, but not more than $1,000,000,
on any financial institution or agency that violates
any provision of subsection (i) or (j) of section 5318
or any special measures imposed under section
5318A.’’.
(b) CRIMINAL PENALTIES.—Section 5322 of title 31,
United States Code, is amended by adding at the end the
following:
‘‘(d) A financial institution or agency that violates
any provision of subsection (i) or (j) of section 5318, or
any special measures imposed under section 5318A, or any
regulation prescribed under subsection (i) or (j) of section
5318 or section 5318A, shall be fined in an amount equal
to not less than 2 times the amount of the transaction,
but not more than $1,000,000.’’.
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SEC. 364. UNIFORM PROTECTION AUTHORITY FOR FED-
ERAL RESERVE FACILITIES.
Section 11 of the Federal Reserve Act (12 U.S.C.
248) is amended by adding at the end the following:
‘‘(q) UNIFORM PROTECTION AUTHORITY FOR FED-
ERAL RESERVE FACILITIES.—
‘‘(1) Notwithstanding any other provision of
law, to authorize personnel to act as law enforce-
ment officers to protect and safeguard the premises,
grounds, property, personnel, including members of
the Board, of the Board, or any Federal reserve
bank, and operations conducted by or on behalf of
the Board or a reserve bank.
‘‘(2) The Board may, subject to the regulations
prescribed under paragraph (5), delegate authority
to a Federal reserve bank to authorize personnel to
act as law enforcement officers to protect and safe-
guard the bank’s premises, grounds, property, per-
sonnel, and operations conducted by or on behalf of
the bank.
‘‘(3) Law enforcement officers designated or
authorized by the Board or a reserve bank under
paragraph (1) or (2) are authorized while on duty
to carry firearms and make arrests without warrants
for any offense against the United States committed
in their presence, or for any felony cognizable under
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the laws of the United States committed or being
committed within the buildings and grounds of the
Board or a reserve bank if they have reasonable
grounds to believe that the person to be arrested has
committed or is committing such a felony. Such offi-
cers shall have access to law enforcement informa-
tion that may be necessary for the protection of the
property or personnel of the Board or a reserve
bank.
‘‘(4) For purposes of this subsection, the term
‘law enforcement officers’ means personnel who have
successfully completed law enforcement training and
are authorized to carry firearms and make arrests
pursuant to this subsection.
‘‘(5) The law enforcement authorities provided
for in this subsection may be exercised only pursu-
ant to regulations prescribed by the Board and ap-
proved by the Attorney General.’’.
SEC. 365. REPORTS RELATING TO COINS AND CURRENCY
RECEIVED 
IN 
NONFINANCIAL 
TRADE 
OR
BUSINESS.
(a) REPORTS REQUIRED.—Subchapter II of chapter
53 of title 31, United States Code, is amended by adding
at the end the following new section:
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‘‘§ 5331. Reports relating to coins and currency re-
ceived in nonfinancial trade or business
‘‘(a) COIN
AND CURRENCY RECEIPTS
OF MORE
THAN $10,000.—Any person—
‘‘(1) who is engaged in a trade or business; and
‘‘(2) who, in the course of such trade or busi-
ness, receives more than $10,000 in coins or cur-
rency in 1 transaction (or 2 or more related trans-
actions),
shall file a report described in subsection (b) with respect
to such transaction (or related transactions) with the Fi-
nancial Crimes Enforcement Network at such time and
in such manner as the Secretary may, by regulation, pre-
scribe.
‘‘(b) FORM AND MANNER OF REPORTS.—A report is
described in this subsection if such report—
‘‘(1) is in such form as the Secretary may pre-
scribe;
‘‘(2) contains—
‘‘(A) the name and address, and such
other identification information as the Sec-
retary may require, of the person from whom
the coins or currency was received;
‘‘(B) the amount of coins or currency re-
ceived;
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‘‘(C) the date and nature of the trans-
action; and
‘‘(D) such other information, including the
identification of the person filing the report, as
the Secretary may prescribe.
‘‘(c) EXCEPTIONS.—
‘‘(1) AMOUNTS RECEIVED BY FINANCIAL INSTI-
TUTIONS.—Subsection 
(a) 
shall 
not 
apply 
to
amounts received in a transaction reported under
section 5313 and regulations prescribed under such
section.
‘‘(2) TRANSACTIONS OCCURRING OUTSIDE THE
UNITED STATES.—Except to the extent provided in
regulations prescribed by the Secretary, subsection
(a) shall not apply to any transaction if the entire
transaction occurs outside the United States.
‘‘(d) CURRENCY INCLUDES FOREIGN CURRENCY AND
CERTAIN MONETARY INSTRUMENTS.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘currency’ includes—
‘‘(A) foreign currency; and
‘‘(B) to the extent provided in regulations
prescribed by the Secretary, any monetary in-
strument (whether or not in bearer form) with
a face amount of not more than $10,000.
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‘‘(2) 
SCOPE
OF
APPLICATION.—Paragraph
(1)(B) shall not apply to any check drawn on the ac-
count of the writer in a financial institution referred
to in subparagraph (A), (B), (C), (D), (E), (F), (G),
(J), (K), (R), or (S) of section 5312(a)(2).’’.
(b) 
PROHIBITION
ON
STRUCTURING
TRANS-
ACTIONS.—
(1) IN
GENERAL.—Section 5324 of title 31,
United States Code, is amended—
(A) by redesignating subsections (b) and
(c) as subsections (c) and (d), respectively; and
(B) by inserting after subsection (a) the
following new subsection:
‘‘(b) DOMESTIC
COIN
AND
CURRENCY
TRANS-
ACTIONS INVOLVING NONFINANCIAL TRADES OR BUSI-
NESSES.—No person shall, for the purpose of evading the
report requirements of section 5333 or any regulation pre-
scribed under such section—
‘‘(1) cause or attempt to cause a nonfinancial
trade or business to fail to file a report required
under section 5333 or any regulation prescribed
under such section;
‘‘(2) cause or attempt to cause a nonfinancial
trade or business to file a report required under sec-
tion 5333 or any regulation prescribed under such
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section that contains a material omission or
misstatement of fact; or
‘‘(3) structure or assist in structuring, or at-
tempt to structure or assist in structuring, any
transaction with 1 or more nonfinancial trades or
businesses.’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
(A) The heading for subsection (a) of sec-
tion 5324 of title 31, United States Code, is
amended by inserting ‘‘INVOLVING FINANCIAL
INSTITUTIONS’’ after ‘‘TRANSACTIONS’.
(B) Section 5317(c) of title 31, United
States Code, is amended by striking ‘‘5324(b)’’
and inserting ‘‘5324(c)’’.
(c) DEFINITION OF NONFINANCIAL TRADE OR BUSI-
NESS.—
(1) IN GENERAL.—Section 5312(a) of title 31,
United States Code, is amended—
(A) by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively; and
(B) by inserting after paragraph (3) the
following new paragraph:
‘‘(4) NONFINANCIAL
TRADE
OR
BUSINESS.—
The term ‘nonfinancial trade or business’ means any
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trade or business other than a financial institution
that is subject to the reporting requirements of sec-
tion 5313 and regulations prescribed under such sec-
tion.’’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
(A) Section 5312(a)(3)(C) of title 31,
United States Code, is amended by striking
‘‘section 5316,’’ and inserting ‘‘sections 5333
and 5316,’’.
(B) Subsections (a) through (f) of section
5318 of title 31, United States Code, and sec-
tions 5321, 5326, and 5328 of such title are
each amended—
(i) by inserting ‘‘or nonfinancial trade
or business’’ after ‘‘financial institution’’
each place such term appears; and
(ii) by inserting ‘‘or nonfinancial
trades or businesses’’ after ‘‘financial insti-
tutions’’ each place such term appears.
(c) CLERICAL AMENDMENT.—The table of sections
for chapter 53 of title 31, United States Code, is amended
by inserting after the item relating to section 5332 (as
added by section 112 of this title) the following new item:
‘‘5331. Reports relating to coins and currency received in nonfinancial trade or
business.’’.
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(f) REGULATIONS.—Regulations which the Secretary
determines are necessary to implement this section shall
be published in final form before the end of the 6-month
period beginning on the date of enactment of this Act.
SEC. 366. EFFICIENT USE OF CURRENCY TRANSACTION RE-
PORT SYSTEM.
(a) FINDINGS.—The Congress finds the following:
(1) The Congress established the currency
transaction reporting requirements in 1970 because
the Congress found then that such reports have a
high degree of usefulness in criminal, tax, and regu-
latory investigations and proceedings and the useful-
ness of such reports has only increased in the years
since the requirements were established.
(2) In 1994, in response to reports and testi-
mony that excess amounts of currency transaction
reports were interfering with effective law enforce-
ment, the Congress reformed the currency trans-
action report exemption requirements to provide—
(A) mandatory exemptions for certain re-
ports that had little usefulness for law enforce-
ment, such as cash transfers between depository
institutions and cash deposits from government
agencies; and
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(B) discretionary authority for the Sec-
retary of the Treasury to provide exemptions,
subject to criteria and guidelines established by
the Secretary, for financial institutions with re-
gard to regular business customers that main-
tain accounts at an institution into which fre-
quent cash deposits are made.
(3) Today there is evidence that some financial
institutions are not utilizing the exemption system,
or are filing reports even if there is an exemption in
effect, with the result that the volume of currency
transaction reports is once again interfering with ef-
fective law enforcement.
(b) STUDY AND REPORT.—
(1) STUDY
REQUIRED.—The Secretary shall
conduct a study of—
(A) the possible expansion of the statutory
exemption system in effect under section 5313
of title 31, United States Code; and
(B) methods for improving financial insti-
tution utilization of the statutory exemption
provisions as a way of reducing the submission
of currency transaction reports that have little
or no value for law enforcement purposes, in-
cluding improvements in the systems in effect
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at financial institutions for regular review of
the exemption procedures used at the institu-
tion and the training of personnel in its effec-
tive use.
(2) REPORT REQUIRED.—The Secretary of the
Treasury shall submit a report to the Congress be-
fore the end of the 1-year period beginning on the
date of enactment of this Act containing the findings
and conclusions of the Secretary with regard to the
study required under subsection (a), and such rec-
ommendations for legislative or administrative action
as the Secretary determines to be appropriate.
Subtitle C—Currency Crimes and
Protection
SEC. 371. BULK CASH SMUGGLING INTO OR OUT OF THE
UNITED STATES.
(a) FINDINGS.—The Congress finds the following:
(1) Effective enforcement of the currency re-
porting requirements of subchapter II of chapter 53
of title 31, United States Code, and the regulations
prescribed under such subchapter, has forced drug
dealers and other criminals engaged in cash-based
businesses to avoid using traditional financial insti-
tutions.
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(2) In their effort to avoid using traditional fi-
nancial institutions, drug dealers and other criminals
are forced to move large quantities of currency in
bulk form to and through the airports, border cross-
ings, and other ports of entry where the currency
can be smuggled out of the United States and placed
in a foreign financial institution or sold on the black
market.
(3) The transportation and smuggling of cash
in bulk form may now be the most common form of
money laundering, and the movement of large sums
of cash is one of the most reliable warning signs of
drug trafficking, terrorism, money laundering, rack-
eteering, tax evasion and similar crimes.
(4) The intentional transportation into or out of
the United States of large amounts of currency or
monetary instruments, in a manner designed to cir-
cumvent the mandatory reporting provisions of sub-
chapter II of chapter 53 of title 31, United States
Code,, is the equivalent of, and creates the same
harm as, the smuggling of goods.
(5) The arrest and prosecution of bulk cash
smugglers are important parts of law enforcement’s
effort to stop the laundering of criminal proceeds,
but the couriers who attempt to smuggle the cash
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out of the United States are typically low-level em-
ployees of large criminal organizations, and thus are
easily replaced. Accordingly, only the confiscation of
the smuggled bulk cash can effectively break the
cycle of criminal activity of which the laundering of
the bulk cash is a critical part.
(6) The current penalties for violations of the
currency reporting requirements are insufficient to
provide a deterrent to the laundering of criminal
proceeds. In particular, in cases where the only
criminal violation under current law is a reporting
offense, the law does not adequately provide for the
confiscation of smuggled currency. In contrast, if the
smuggling of bulk cash were itself an offense, the
cash could be confiscated as the corpus delicti of the
smuggling offense.
(b) PURPOSES.—The purposes of this section are—
(1) to make the act of smuggling bulk cash
itself a criminal offense;
(2) to authorize forfeiture of any cash or instru-
ments of the smuggling offense; and
(3) to emphasize the seriousness of the act of
bulk cash smuggling.
(c) ENACTMENT OF BULK CASH SMUGGLING OF-
FENSE.—Subchapter II of chapter 53 of title 31, United
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States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 5332. Bulk cash smuggling into or out of the
United States
‘‘(a) CRIMINAL OFFENSE.—
‘‘(1) IN GENERAL.—Whoever, with the intent to
evade a currency reporting requirement under sec-
tion 5316, knowingly conceals more than $10,000 in
currency or other monetary instruments on the per-
son of such individual or in any conveyance, article
of luggage, merchandise, or other container, and
transports or transfers or attempts to transport or
transfer such currency or monetary instruments
from a place within the United States to a place out-
side of the United States, or from a place outside
the United States to a place within the United
States, shall be guilty of a currency smuggling of-
fense and subject to punishment pursuant to sub-
section (b).
‘‘(2) CONCEALMENT
ON
PERSON.—For pur-
poses of this section, the concealment of currency on
the person of any individual includes concealment in
any article of clothing worn by the individual or in
any luggage, backpack, or other container worn or
carried by such individual.
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‘‘(b) PENALTY.—
‘‘(1) TERM OF IMPRISONMENT.—A person con-
victed of a currency smuggling offense under sub-
section (a), or a conspiracy to commit such offense,
shall be imprisoned for not more than 5 years.
‘‘(2) FORFEITURE.—In addition, the court, in
imposing sentence under paragraph (1), shall order
that the defendant forfeit to the United States, any
property, real or personal, involved in the offense,
and any property traceable to such property, subject
to subsection (d) of this section.
‘‘(3) PROCEDURE.—The seizure, restraint, and
forfeiture of property under this section shall be gov-
erned by section 413 of the Controlled Substances
Act.
‘‘(4) PERSONAL
MONEY
JUDGMENT.—If the
property subject to forfeiture under paragraph (2) is
unavailable, and the defendant has insufficient sub-
stitute property that may be forfeited pursuant to
section 413(p) of the Controlled Substances Act, the
court shall enter a personal money judgment against
the defendant for the amount that would be subject
to forfeiture.
‘‘(c) CIVIL FORFEITURE.—
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‘‘(1) IN GENERAL.—Any property involved in a
violation of subsection (a), or a conspiracy to com-
mit such violation, and any property traceable to
such violation or conspiracy, may be seized and, sub-
ject to subsection (d) of this section, forfeited to the
United States.
‘‘(2) PROCEDURE.—The seizure and forfeiture
shall be governed by the procedures governing civil
forfeitures in money laundering cases pursuant to
section 981(a)(1)(A) of title 18, United States Code.
‘‘(3) TREATMENT
OF
CERTAIN
PROPERTY
AS
INVOLVED IN THE OFFENSE.—For purposes of this
subsection and subsection (b), any currency or other
monetary instrument that is concealed or intended
to be concealed in violation of subsection (a) or a
conspiracy to commit such violation, any article, con-
tainer, or conveyance used, or intended to be used,
to conceal or transport the currency or other mone-
tary instrument, and any other property used, or in-
tended to be used, to facilitate the offense, shall be
considered property involved in the offense.’’.
(c) CLERICAL AMENDMENT.—The table of sections
for subchapter II of chapter 53 of title 31, United States
Code, is amended by inserting after the item relating to
section 5331, as added by this Act, the following new item:
‘‘5332. Bulk cash smuggling into or out of the United States.’’.
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SEC. 372. FORFEITURE IN CURRENCY REPORTING CASES.
(a) IN GENERAL.—Subsection (c) of section 5317 of
title 31, United States Code, is amended to read as fol-
lows:
‘‘(c) FORFEITURE.—
‘‘(1) CRIMINAL FORFEITURE.—
‘‘(A) IN GENERAL.—The court in imposing
sentence for any violation of section 5313,
5316, or 5324 of this title, or any conspiracy to
commit such violation, shall order the defendant
to forfeit all property, real or personal, involved
in the offense and any property traceable there-
to.
‘‘(B) PROCEDURE.—Forfeitures under this
paragraph shall be governed by the procedures
established in section 413 of the Controlled
Substances Act.
‘‘(2) CIVIL
FORFEITURE.—Any property in-
volved in a violation of section 5313, 5316, or 5324
of this title, or any conspiracy to commit any such
violation, and any property traceable to any such
violation or conspiracy, may be seized and forfeited
to the United States in accordance with the proce-
dures governing civil forfeitures in money laundering
cases pursuant to section 981(a)(1)(A) of title 18,
United States Code.’’.
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(b) CONFORMING AMENDMENTS.—
(1) Section 981(a)(1)(A) of title 18, United
States Code, is amended—
(A) by striking ‘‘of section 5313(a) or
5324(a) of title 31, or’’; and
(B) by striking ‘‘However’’ and all that fol-
lows through the end of the subparagraph.
(2) Section 982(a)(1) of title 18, United States
Code, is amended—
(A) by striking ‘‘of section 5313(a), 5316,
or 5324 of title 31, or’’; and
(B) by striking ‘‘However’’ and all that fol-
lows through the end of the paragraph.
SEC. 373. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) SCIENTER REQUIREMENT FOR SECTION 1960
VIOLATION.—Section 1960 of title 18, United States
Code, is amended to read as follows:
‘‘§ 1960. Prohibition of unlicensed money transmit-
ting businesses
‘‘(a) Whoever knowingly conducts, controls, manages,
supervises, directs, or owns all or part of an unlicensed
money transmitting business, shall be fined in accordance
with this title or imprisoned not more than 5 years, or
both.
‘‘(b) As used in this section—
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‘‘(1) the term ‘unlicensed money transmitting
business’ means a money transmitting business
which affects interstate or foreign commerce in any
manner or degree and—
‘‘(A) is operated without an appropriate
money transmitting license in a State where
such operation is punishable as a misdemeanor
or a felony under State law, whether or not the
defendant knew that the operation was required
to be licensed or that the operation was so pun-
ishable;
‘‘(B) fails to comply with the money trans-
mitting 
business 
registration 
requirements
under section 5330 of title 31, United States
Code, or regulations prescribed under such sec-
tion; or
‘‘(C) otherwise involves the transportation
or transmission of funds that are known to the
defendant to have been derived from a criminal
offense or are intended to be used to be used
to promote or support unlawful activity;
‘‘(2) the term ‘money transmitting’ includes
transferring funds on behalf of the public by any
and all means including but not limited to transfers
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within this country or to locations abroad by wire,
check, draft, facsimile, or courier; and
‘‘(3) the term ‘State’ means any State of the
United States, the District of Columbia, the North-
ern Mariana Islands, and any commonwealth, terri-
tory, or possession of the United States.’’.
(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’’.
(c) CLERICAL AMENDMENT.—The table of sections
for chapter 95 of title 18, United States Code, is amended
in the item relating to section 1960 by striking ‘‘illegal’’
and inserting ‘‘unlicensed’’.
SEC. 374. 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’’.
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(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 SE-
CURITIES.—Section 472 of title 18, United States Code,
is 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
ELECTRONIC IMAGES FOR COUNTERFEITING OBLIGA-
TIONS 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,
acquires, scans, captures, records, receives, transmits, re-
produces, sells, or has in such person’s control, custody,
or possession, an analog, digital, or electronic image of
any obligation or other security of the United States; or’’.
(2) AMENDMENT
TO
DEFINITION.—Section
474(b) of title 18, United States Code, is amended
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by striking the first sentence and inserting the fol-
lowing new sentence: ‘‘For purposes of this section,
the term ‘analog, digital, or electronic image’ in-
cludes any analog, digital, or electronic method used
for the making, execution, acquisition, scanning,
capturing, recording, retrieval, transmission, or re-
production of any obligation or security, unless such
use is authorized 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’’.
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(g) POSSESSING
OR
SELLING
IMPRESSIONS
OF
TOOLS USED FOR OBLIGATIONS OR SECURITIES.—Sec-
tion 477 of title 18, United States Code, is amended—
(1) in the first paragraph, by inserting ‘‘analog,
digital, 
or 
electronic 
image,’’ 
after 
‘‘imprint,
stamp,’’;
(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.—
Section 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 striking ‘‘five years’’ and inserting ‘‘10 years’’.
SEC. 375. COUNTERFEITING FOREIGN CURRENCY AND OB-
LIGATIONS.
(a) FOREIGN OBLIGATIONS OR SECURITIES.—Sec-
tion 478 of title 18, United States Code, is amended by
striking ‘‘five years’’ and inserting ‘‘20 years’’.
(b) UTTERING COUNTERFEIT FOREIGN OBLIGA-
TIONS OR SECURITIES.—Section 479 of title 18, United
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States Code, is amended by striking ‘‘three years’’ and
inserting ‘‘20 years’’.
(c) POSSESSING COUNTERFEIT FOREIGN OBLIGA-
TIONS OR SECURITIES.—Section 480 of title 18, United
States Code, is amended by striking ‘‘one year’’ and in-
serting ‘‘20 years’’.
(d) PLATES, STONES, OR ANALOG, DIGITAL, OR
ELECTRONIC IMAGES
FOR COUNTERFEITING FOREIGN
OBLIGATIONS 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,
acquires, scans, captures, records, receives, transmits, re-
produces, sells, or has in such person’s control, custody,
or possession, an analog, digital, or electronic image of
any bond, certificate, obligation, or other security of any
foreign government, or of any treasury note, bill, or prom-
ise to pay, lawfully issued by such foreign government and
intended to circulate as money; or’’.
(2) INCREASED
SENTENCE.—The last para-
graph of section 481 of title 18, United States Code,
is amended by striking ‘‘five years’’ and inserting
‘‘25 years’’.
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(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,
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. 376. LAUNDERING THE PROCEEDS OF TERRORISM.
Section 1956(c)(7)(D) of title 18, United States
Code, is amended by inserting ‘‘or 2339B’’ after ‘‘2339A’’.
SEC. 377. EXTRATERRITORIAL JURISDICTION.
Section 1029 of title 18, United States Code, is
amended by adding at the end the following:
‘‘(h) Any person who, outside the jurisdiction of the
United States, engages in any act that, if committed with-
in the jurisdiction of the United States, would constitute
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an offense under subsection (a) or (b) of this section, shall
be subject to the fines, penalties, imprisonment, and for-
feiture provided in this title if—
‘‘(1) the offense involves an access device
issued, owned, managed, or controlled by a financial
institution, account issuer, credit card system mem-
ber, or other entity within the jurisdiction of the
United States; and
‘‘(2) the person transports, delivers, conveys,
transfers to or through, or otherwise stores, secrets,
or holds within the jurisdiction of the United States,
any article used to assist in the commission of the
offense or the proceeds of such offense or property
derived therefrom.’’.
TITLE IV—PROTECTING THE
BORDER
Subtitle A—Protecting the
Northern Border
SEC. 401. ENSURING ADEQUATE PERSONNEL ON THE
NORTHERN BORDER.
The Attorney General is authorized to waive any
FTE cap on personnel assigned to the Immigration and
Naturalization Service on the Northern border.
SEC. 402. NORTHERN BORDER PERSONNEL.
There are authorized to be appropriated—
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(1) such sums as may be necessary to triple the
number of Border Patrol personnel (from the num-
ber authorized under current law), and the necessary
personnel and facilities to support such personnel, in
each State along the Northern Border;
(2) such sums as may be necessary to triple the
number of Customs Service personnel (from the
number authorized under current law), and the nec-
essary personnel and facilities to support such per-
sonnel, at ports of entry in each State along the
Northern Border;
(3) such sums as may be necessary to triple the
number of INS inspectors (from the number author-
ized on the date of the enactment of this Act), and
the necessary personnel and facilities to support
such personnel, at ports of entry in each State along
the Northern Border; and
(4) an additional $50,000,000 each to the Im-
migration and Naturalization Service and the United
States Customs Service for purposes of making im-
provements in technology for monitoring the North-
ern Border and acquiring additional equipment at
the Northern Border.
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SEC. 403. ACCESS BY THE DEPARTMENT OF STATE AND
THE INS TO CERTAIN IDENTIFYING INFORMA-
TION IN THE CRIMINAL HISTORY RECORDS
OF VISA APPLICANTS AND APPLICANTS FOR
ADMISSION TO THE UNITED STATES.
(a) AMENDMENT OF THE IMMIGRATION AND NA-
TIONALITY ACT.—Section 105 of the Immigration and
Nationality Act (8 U.S.C. 1105) is amended—
(1) in the section heading, by inserting ‘‘; DATA
EXCHANGE’’ after ‘‘SECURITY OFFICERS’’;
(2) by inserting ‘‘(a)’’ after ‘‘SEC. 105.’’;
(3) in subsection (a), by inserting ‘‘and border’’
after ‘‘internal’’ the second place it appears; and
(4) by adding at the end the following:
‘‘(b)(1) The Attorney General and the Director of the
Federal Bureau of Investigation shall provide the Depart-
ment of State and the Service access to the criminal his-
tory record information contained in the National Crime
Information Center’s Interstate Identification Index
(NCIC-III), Wanted Persons File, and to any other files
maintained by the National Crime Information Center
that may be mutually agreed upon by the Attorney Gen-
eral and the agency receiving the access, for the purpose
of determining whether or not a visa applicant or appli-
cant for admission has a criminal history record indexed
in any such file.