feiture pending trial, and to deposit that property in
the registry of the court, or with the United States
Marshals Service or the Secretary of the Treasury,
in an interest-bearing account. Failure to comply
with an order under this subsection, or an order to
repatriate property under subsection (p), shall be
punishable as a civil or criminal contempt of court,
and may also result in an enhancement of the sen-
tence for the offense giving rise to the forfeiture
under the obstruction of justice provision of section
3C1.1 of the Federal Sentencing Guidelines.’’.
SEC. 18. 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. 19. BULK CASH SMUGGLING.
(a) FINDINGS.—The Congress hereby finds the fol-
lowing:
(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.
(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 it can be smug-
gled 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 the
subchapter 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
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 of subchapter II of
chapter 53 of title 31, United States Code, are in-
sufficient to provide a deterrent to the laundering of
criminal proceeds. In particular, in cases where the
only criminal violation under current law is a report-
ing 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) PURPOSE.—The purposes of this Section are to
make the act of smuggling bulk cash itself a criminal of-
fense, to authorize forfeiture of any smuggled cash and
other monetary instruments, together with any other prop-
erty involved in the smuggling offense, to emphasize the
seriousness of the act of bulk cash smuggling, and to pre-
scribe guidelines for determining the amount of property
subject to forfeiture in various situations.
(c) ENACTMENT OF BULK CASH SMUGGLING OF-
FENSE.—Subchapter II of chapter 53 of title 31, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘SEC. 5331. BULK CASH SMUGGLING.
‘‘(a) CRIMINAL OFFENSE.—Whoever, with the intent
to evade a currency reporting requirement under section
5316, knowingly conceals more than $10,000 in currency
or other monetary instruments on his person or in any
conveyance, article of luggage, merchandise, or other con-
tainer, and transports or transfers or attempts to trans-
port or transfer such currency or monetary instruments
from a place within the United States to a place outside
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 offense and subject to punish-
ment pursuant to subsection (b). For purposes of this sec-
tion, ‘monetary instruments’ has the meaning set forth in
section 5312(a)(3) and the regulations prescribed under
such section.
‘‘(b) PENALTY.—A person convicted of a currency
smuggling offense under subsection (a), or a conspiracy
to commit such offense, shall be imprisoned for not more
than 5 years. In addition, the court, in imposing sentence,
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 sub-
section (d) of this section. The seizure, restraint and for-
feiture of property under this section shall be governed
by section 413 of the Controlled Substances Act. If any
property subject to forfeiture is unavailable, and the de-
fendant has insufficient substitute property that may be
forfeited pursuant to section 413(p) of the Controlled Sub-
stances Act, the court shall enter a personal money judg-
ment against the defendant in an amount equal to the
value of the unavailable property.
‘‘(c) SEIZURE OF SMUGGLING CASH.—Any property
involved in a violation of subsection (a), or a conspiracy
to commit such violation, and any property traceable
thereto, may be seized and, subject to subsection (d) of
this section, forfeited to the United States. The seizure
and forfeiture shall be governed by the procedures gov-
erning civil forfeitures in money laundering cases pursuant
to Section 981(a)(1)(A) of title 18, United States Code.
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 con-
ceal or transport the currency or other monetary instru-
ment, and any other property used or intended to be used
to facilitate the offense, shall be considered property in-
volved in the offense.
‘‘(d) PROPORTIONALITY OF FORFEITURE.—Upon a
showing by the property owner by a preponderance of the
evidence that the currency or monetary instruments in-
volved in the offense giving rise to the forfeiture were de-
rived from a legitimate source, and were intended for a
lawful purpose, the court shall reduce the forfeiture to the
maximum amount that is not grossly disproportional to
the gravity of the offense. In determining the amount of
the forfeiture, the court shall consider all aggravating and
mitigating facts and circumstances that have a bearing on
the gravity of the offense. Such circumstances include, but
are not limited to, the following: the value of the currency
or other monetary instruments involved in the offense; ef-
forts by the person committing the offense to structure
currency transactions, conceal property, or otherwise ob-
struct justice; and whether the offense is part of a pattern
of repeated violations of Federal law.’’.
(d) CHAPTER ANALYSIS.—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 5330 the following new item:
‘‘5331. Bulk Cash Smuggling.’’.
(e) CURRENCY REPORTING VIOLATIONS.—Section
5317(c) of title 31, United States Code, is amended to
read as follows:
‘‘(c) FORFEITURE OF PROPERTY INVOLVED IN CER-
TAIN OFFENSES.—
‘‘(1) IN
GENERAL.— The court in imposing
sentence for any violation of section 5313, 5316, or
5324, 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 thereto. Forfeitures under this paragraph
shall be governed by the procedures set forth in sec-
tion 413 of the Controlled Substances Act, and the
guidelines set forth in paragraph (3).
‘‘(2) SEIZURE OF PROPERTY.—Any property in-
volved in a violation of section 5313, 5316, or 5324,
or any conspiracy to commit such violation, and any
property traceable thereto, may be seized and, sub-
ject to paragraph (3), forfeited to the United States
in accordance with the procedures governing civil
forfeitures in money laundering cases pursuant to
section 981(a)(1)(A) of title 18, United States Code.
‘‘(3) SHOWING OF LEGITIMATE SOURCE.—Upon
a showing by the property owner by a preponderance
of the evidence that the currency or monetary in-
struments involved in the offense giving rise to the
forfeiture were derived from a legitimate source, and
were intended for a lawful purpose, the court shall
reduce the forfeiture to the maximum amount that
is not grossly disproportional to the gravity of the
offense.
‘‘(4) FACTORS CONSIDERED BY THE COURT.—
‘‘(A) IN
GENERAL.—In determining the
amount of the forfeiture, the court shall con-
sider all aggravating and mitigating facts and
circumstances that have a bearing on the grav-
ity of the offense.
‘‘(B) CERTAIN FACTORS SPECIFICALLY IN-
CLUDED.—The facts and circumstances consid-
ered under subparagraph (A) shall include the
following:
‘‘(i) The value of the currency or
other monetary instruments involved in the
offense.
‘‘(ii) Efforts by the person committing
the offense to structure currency trans-
actions, conceal property, or otherwise ob-
struct justice.
‘‘(iii) Whether the offense is part of a
pattern of repeated violations of Federal
law.’’.
(f) CONFORMING AMENDMENTS.—
(1) Section 981(a)(1)(A) of title 18, United
States Code, is amended by striking ‘‘of section
5313(a) or 5324(a) of title 31, or’’.
(2) Section 982(a)(1) of title 18, United States
Code, is amended by striking ‘‘of 5313(a), 5316, or
5324 of title 31, or’’.–
SEC. 20. CURRENCY COURIERS.
Section 1957 of title 18, United States Code, is
amended by adding the following new subsection at the
end:
‘‘(g) Any person who conceals more than $10,000 in
currency on his person or in any vehicle, in any compart-
ment or container within any vehicle, or in any container
placed in a common carrier, and transports, attempts to
transport, or conspires to transport such currency in inter-
state commerce on any public road or highway, or on any
bus, train, airplane, vessel or other common carrier, know-
ing that the currency was derived from some form of un-
lawful activity, or knowing that the currency was intended
to be used to promote some form of unlawful activity, shall
be punished as provided in subsection (b). The defendant’s
knowledge may be established by proof that the defendant
was willfully blind to the source or intended use of the
currency. For purposes of this subsection, a person con-
ceals currency ‘‘on his person’’ if he conceals it in any
article of clothing, luggage, backpack, or other container
that he carries with him.’’.
SEC. 21. VIOLATIONS OF SECTION 6050I OF THE INTERNAL
REVENUE CODE OF 1986.
Sections 981(a)(1)(A) and 982(a)(1) of title 18,
United States Code, are amended by inserting ‘‘section
6050I of the Internal Revenue Code of 1986 (26 U.S.C.
6050I), or’’ after ‘‘in violation of’’.
SEC. 22. 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, consti-
tuting, derived from, or traceable to, any pro-
ceeds obtained directly or indirectly from an of-
fense against a foreign nation, or any property
used to facilitate such offense, if—
‘‘(i) the offense involves the manufac-
ture, importation, sale, or distribution of a
controlled substance (as such term is de-
fined for the purposes of the Controlled
Substances Act), or any other conduct de-
scribed in section 1956(c)(7)(B),
‘‘(ii) the offense would be punishable
within the jurisdiction of the foreign nation
by death or imprisonment for a term ex-
ceeding one year, and
‘‘(iii) the offense would be punishable
under the laws of the United States by im-
prisonment for a term exceeding one year
if the act or activity constituting the of-
fense had occurred within the jurisdiction
of the United States.’’.
SEC. 23. AUTHORIZATION TO SHARE RECOVERED PROP-
ERTY WITH COOPERATING FOREIGN GOV-
ERNMENTS.
(a) IN GENERAL.—Section 981(i)(1) of title 18,
United States Code, is amended by striking ‘‘this chapter’’
and inserting ‘‘any provision of Federal law’’.
(b) CONFORMING AMENDMENT.—Section 511(e)(1)
of the Controlled Substances Act is amended by striking
‘‘; or’’ and all of subparagraph (E) and inserting a period.
SEC. 24. RECOVERY OF CRIMINAL PROCEEDS FROM THIRD
PARTIES.
Section 1956(b) of title 18, United States Code, as
amended by this Act, is further amended by adding the
following at the end:
‘‘(4) If property involved in a violation of sub-
section (a) is transferred to a third party who is not
a bona fide purchaser for value, the United States
may file a civil action against the transferee to re-
cover the property, or a sum of money equal to the
value of the property immediately before the trans-
fer, plus interest from the time of the transfer.
Venue for such action shall lie in any district in
which the violation of subsection (a) took place.’’. –
SEC. 25. CRIMINAL FORFEITURE OF PROPERTY IN GOVERN-
MENT CUSTODY.
Section 413(f) of the Controlled Substances Act (21
U.S.C. 853(f)) is amended by designating the present
matter as paragraph (1) and adding the following at the
end:
‘‘(2) If property subject to criminal forfeiture
under this section is already in the custody of the
United States or any agency thereof, it shall not be
necessary to seize or restrain the property for the
purpose of criminal forfeiture.
ably should have known that the financial
or other benefit was the product of such il-
licit activity, is inadmissible.
(b) 
CONFORMING
AMENDMENT.—Section
212(h)(1)(A)(i) of the Immigration and Nationality Act
of 1952, as amended (8 U.S.C. 1182), is amended by
striking ‘‘(D)(i) or (D)(ii)’’ and inserting ‘‘(E)(i) or
(E)(ii)’’.
SEC. 31. MISCELLANEOUS MINOR AND TECHNICAL AMEND-
MENTS.
(a) CRIMINAL FORFEITURE.—Section 982(b) of title
18, United States Code, is amended in subsection (b)(2),
by striking ‘‘The substitution’’ and inserting ‘‘With re-
spect to a forfeiture under subsection (a)(1), the substi-
tution’’.
(b) DEFINITION OF FINANCIAL INSTITUTION.—Sec-
tion 5312(a)(2) of title 31, United States Code, is amend-
ed by redesignating subparagraphs (Y) and (Z) as (Z) and
(AA), respectively, and by inserting the following new sub-
paragraph after subparagraph (X):
‘‘(Y) a bail bondsman;’’.
(c) TECHNICAL AMENDMENT.—Section 981(d) of
title 18, United States Code, is amended by striking ‘‘sale
of this section’’ and inserting ‘‘sale of such property’’.