H. R. 3474—82
SEC. 347. COMMERCIAL MORTGAGE RELATED SECURITIES.
(a) IN
GENERAL.—Section 3(a)(41)(A)(i) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)(41)(A)(i)) is amended—
(1) by striking ‘‘or on a residential’’ and inserting ‘‘on a
residential’’; and
(2) by inserting before the semicolon ‘‘, or on one or more
parcels of real estate upon which is located one or more commer-
cial structures’’.
(b) AMENDMENT TO THE REVISED STATUTES.—Paragraph Sev-
enth of section 5136 of the Revised Statutes (12 U.S.C. 24) is
amended in the twelfth sentence, by striking ‘‘(15 U.S.C.
78c(a)(41))), subject to such regulations’’ and inserting ‘‘(15 U.S.C.
78c(a)(41)). The exception provided for the securities described in
subparagraphs (A), (B), and (C) shall be subject to such regulations’’.
(c) REGULATIONS.—Not later than 1 year after the date of
enactment of this Act, the Comptroller of the Currency shall promul-
gate final regulations, in accordance with the thirteenth sentence
of Paragraph Seventh of section 5136 of the Revised Statutes (as
amended by subsection (b)), to carry out the amendments made
by this section.
(d) EFFECTIVE DATE.—The amendments made by this section
shall become effective upon the date of promulgation of final regula-
tions under subsection (c).
(e) STATE OPT OUT.—Notwithstanding the amendments made
by this section, a note that is directly secured by a first lien
on one or more parcels of real estate upon which is located one
or more commercial structures shall not be considered to be a
mortgage related security under section 3(a)(41) of the Securities
Exchange Act of 1934 in any State that, prior to the expiration
of 7 years after the date of enactment of this Act, enacts a statute
that specifically refers to this section and either prohibits or pro-
vides for a more limited authority to purchase, hold, or invest
in such securities by any person, trust, corporation, partnership,
association, business trust, or business entity or class thereof than
is provided by the amendments made by this subsection. The enact-
ment by any State of any statute of the type described in the
preceding sentence shall not affect the validity of any contractual
commitment to purchase, hold, or invest that was made prior there-
to, and shall not require the sale or other disposition of any securi-
ties acquired prior thereto.
SEC. 348. CLARIFYING AMENDMENT RELATING TO DATA COLLECTION.
Section 7(a)(9) of the Federal Deposit Insurance Act (12 U.S.C.
1817(a)(9)) is amended by adding at the end the following: ‘‘In
prescribing reporting and other requirements for the collection of
actual and accurate information pursuant to this paragraph, the
Corporation shall minimize the regulatory burden imposed upon
insured depository institutions that are well capitalized (as defined
in section 38) while taking into account the benefit of the informa-
tion to the Corporation, including the use of the information to
enable the Corporation to more accurately determine the total
amount of insured deposits in each insured depository institution
for purposes of compliance with this Act.’’.
H. R. 3474—83
SEC. 349. GUIDELINES FOR EXAMINATIONS.
(a) ADEQUACY OF STATE EXAMINATIONS.—Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by
adding at the end the following new paragraph:
‘‘(9) STANDARDS
FOR
DETERMINING
ADEQUACY
OF
STATE
EXAMINATIONS.—The Federal Financial Institutions Examina-
tion Council shall issue guidelines establishing standards to
be used at the discretion of the appropriate Federal banking
agency for purposes of making a determination under para-
graph (3).’’.
(b) EFFECTIVE DATE OF INITIAL GUIDELINES.—The initial guide-
lines required to be issued pursuant to the amendment made by
subsection (a) shall become effective not later than 1 year after
the date of enactment of this Act.
SEC. 350. REVISING REGULATORY REQUIREMENTS FOR TRANSFERS
OF ALL TYPES OF ASSETS WITH RECOURSE.
(a) REVIEW AND REVISION OF REGULATIONS.—
(1) IN GENERAL.—During the 180-day period beginning on
the date of enactment of this Act, each appropriate Federal
banking agency shall, consistent with the principles of safety
and soundness and the public interest—
(A) review the agency’s regulations and written policies
relating to transfers of assets with recourse by insured
depository institutions; and
(B) in consultation with the other Federal banking
agencies, promulgate regulations that better reflect the
exposure of an insured depository institution to credit risk
from transfers of assets with recourse.
(2) REGULATIONS REQUIRED.—Before the end of the 180-
day period beginning on the date of enactment of this Act,
each appropriate Federal banking agency shall prescribe the
regulations developed pursuant to paragraph (1)(B).
(b) REGULATIONS REQUIRED.—
(1) IN GENERAL.—After the end of the 180-day period begin-
ning on the date of enactment of this Act, the amount of
risk-based capital required to be maintained, under regulations
prescribed by the appropriate Federal banking agency, by any
insured depository institution with respect to assets transferred
with recourse by such institution may not exceed the maximum
amount of recourse for which such institution is contractually
liable under the recourse agreement.
(2) EXCEPTION FOR SAFETY AND SOUNDNESS.—The appro-
priate Federal banking agency may require any insured deposi-
tory institution to maintain risk-based capital in an amount
greater than the amount determined under paragraph (1), if
the agency determines, by regulation or order, that such higher
amount is necessary for safety and soundness reasons.
(c) COORDINATION WITH SECTION 208(b).—This section shall
not be construed as superseding the applicability of section 208(b).
(d) DEFINITIONS.—For purposes of this section, the terms
‘‘appropriate Federal banking agency’’, ‘‘Federal banking agency’’,
and ‘‘insured depository institution’’ have the same meanings as
in section 3 of the Federal Deposit Insurance Act.
H. R. 3474—84
TITLE IV—MONEY LAUNDERING
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Money Laundering Suppression
Act of 1994’’.
SEC. 402. REFORM OF CTR EXEMPTION REQUIREMENTS TO REDUCE
NUMBER AND SIZE OF REPORTS CONSISTENT WITH EFFEC-
TIVE LAW ENFORCEMENT.
(a) IN GENERAL.—Section 5313 of title 31, United States Code,
is amended by adding at the end the following new subsections:
‘‘(d) MANDATORY
EXEMPTIONS
FROM
REPORTING
REQUIRE-
MENTS.—
‘‘(1) IN
GENERAL.—The Secretary of the Treasury shall
exempt, pursuant to section 5318(a)(6), a depository institution
from the reporting requirements of subsection (a) with respect
to transactions between the depository institution and the fol-
lowing categories of entities:
‘‘(A) Another depository institution.
‘‘(B) A department or agency of the United States,
any State, or any political subdivision of any State.
‘‘(C) Any entity established under the laws of the
United States, any State, or any political subdivision of
any State, or under an interstate compact between 2 or
more States, which exercises governmental authority on
behalf of the United States or any such State or political
subdivision.
‘‘(D) Any business or category of business the reports
on which have little or no value for law enforcement pur-
poses.
‘‘(2) NOTICE OF EXEMPTION.—The Secretary of the Treasury
shall publish in the Federal Register at such times as the
Secretary determines to be appropriate (but not less frequently
than once each year) a list of all the entities whose transactions
with a depository institution are exempt under this subsection
from the reporting requirements of subsection (a).
‘‘(e) DISCRETIONARY EXEMPTIONS FROM REPORTING REQUIRE-
MENTS.—
‘‘(1) IN
GENERAL.—The Secretary of the Treasury may
exempt, pursuant to section 5318(a)(6), a depository institution
from the reporting requirements of subsection (a) with respect
to transactions between the depository institution and a quali-
fied business customer of the institution on the basis of informa-
tion submitted to the Secretary by the institution in accordance
with procedures which the Secretary shall establish.
‘‘(2) QUALIFIED
BUSINESS
CUSTOMER
DEFINED.—For pur-
poses of this subsection, the term ‘qualified business customer’
means a business which—
‘‘(A) maintains a transaction account (as defined in
section 19(b)(1)(C) of the Federal Reserve Act) at the deposi-
tory institution;
‘‘(B) frequently engages in transactions with the
depository institution which are subject to the reporting
requirements of subsection (a); and
‘‘(C) meets criteria which the Secretary determines are
sufficient to ensure that the purposes of this subchapter
H. R. 3474—85
are carried out without requiring a report with respect
to such transactions.
‘‘(3) CRITERIA FOR EXEMPTION.—The Secretary of the Treas-
ury shall establish, by regulation, the criteria for granting
and maintaining an exemption under paragraph (1).
‘‘(4) GUIDELINES.—
‘‘(A) IN GENERAL.—The Secretary of the Treasury shall
establish guidelines for depository institutions to follow
in selecting customers for an exemption under this
subsection.
‘‘(B) CONTENTS.—The guidelines may include a descrip-
tion of the types of businesses or an itemization of specific
businesses for which no exemption will be granted under
this subsection to any depository institution.
‘‘(5) ANNUAL REVIEW.—The Secretary of the Treasury shall
prescribe regulations requiring each depository institution to—
‘‘(A) review, at least once each year, the qualified busi-
ness customers of such institution with respect to whom
an exemption has been granted under this subsection; and
‘‘(B) upon the completion of such review, resubmit
information about such customers, with such modifications
as the institution determines to be appropriate, to the
Secretary for the Secretary’s approval.
‘‘(6) 2-YEAR PHASE-IN PROVISION.—During the 2-year period
beginning on the date of enactment of the Money Laundering
Suppression Act of 1994, this subsection shall be applied by
the Secretary on the basis of such criteria as the Secretary
determines to be appropriate to achieve an orderly implementa-
tion of the requirements of this subsection.
‘‘(f) PROVISIONS APPLICABLE TO MANDATORY AND DISCRETIONARY
EXEMPTIONS.—
‘‘(1) LIMITATION
ON
LIABILITY
OF
DEPOSITORY
INSTITU-
TIONS.—No depository institution shall be subject to any penalty
which may be imposed under this subchapter for the failure
of the institution to file a report with respect to a transaction
with a customer for whom an exemption has been granted
under subsection (d) or (e) unless the institution—
‘‘(A) knowingly files false or incomplete information
to the Secretary with respect to the transaction or the
customer engaging in the transaction; or
‘‘(B) has reason to believe at the time the exemption
is granted or the transaction is entered into that the cus-
tomer or the transaction does not meet the criteria estab-
lished for granting such exemption.
‘‘(2) COORDINATION WITH OTHER PROVISIONS.—Any exemp-
tion granted by the Secretary of the Treasury under section
5318(a) in accordance with this section, and any transaction
which is subject to such exemption, shall be subject to any
other provision of law applicable to such exemption, including—
‘‘(A) the authority of the Secretary, under section
5318(a)(6), to revoke such exemption at any time; and
‘‘(B) any requirement to report, or any authority to
require a report on, any possible violation of any law or
regulation or any suspected criminal activity.
‘‘(g) DEPOSITORY INSTITUTION DEFINED.—For purposes of this
section, the term ‘depository institution’—