IB
Union Calendar No. 410
106TH CONGRESS
2D SESSION
H. R. 3886
[Report No. 106–728]
To combat international money laundering, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 9, 2000
Mr. LEACH (for himself, Mr. LAFALCE, Mrs. ROUKEMA, and Mr. VENTO) in-
troduced the following bill; which was referred to the Committee on
Banking and Financial Services
JULY 11, 2000
Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on March 9, 2000]
A BILL
To combat international money laundering, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘International Counter-Money Laundering and Foreign
Anticorruption Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I—INTERNATIONAL COUNTER-MONEY LAUNDERING
MEASURES
Sec. 101. Special measures for jurisdictions, financial institutions, or inter-
national transactions of primary money laundering concern.
TITLE II—CURRENCY TRANSACTION REPORTING AMENDMENTS AND
RELATED IMPROVEMENTS
Sec. 201. Amendments relating to reporting of suspicious activities.
Sec. 202. Penalties for violations of geographic targeting orders and certain rec-
ordkeeping requirements, and lengthening effective period of geo-
graphic targeting orders.
Sec. 203. Authorization to include suspicions of illegal activity in written em-
ployment references.
Sec. 204. Bank Secrecy Act Advisory Group.
Sec. 205. Agency reports on reconciling penalty amounts.
TITLE III—ANTICORRUPTION MEASURES
Sec. 301. Corruption of foreign governments and ruling elites.
Sec. 302. Support for the Financial Action Task Force on Money Laundering.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds as follows:
(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, provides the finan-
cial fuel that permits transnational criminal enter-
prises to conduct and expand their operations to the
detriment of the safety and security of American citi-
zens.
(2) Money launderers subvert legitimate finan-
cial mechanisms and banking relationships by using
them as protective covering for the movement of
criminal proceeds and, by so doing, can undermine
the integrity of our financial institutions and of the
global financial and trading systems upon which our
prosperity and growth depend.
(3) Money launderers rely upon the existence
and use of certain jurisdictions outside the United
States that offer bank secrecy and special tax or regu-
latory advantages to nonresidents, and often com-
plement those advantages with weak financial super-
visory and regulatory regimes.
(4) Certain kinds of transactions involving such
offshore jurisdictions—for example, those transactions
specifically designed to offer anonymity or the avoid-
ance of regulatory scrutiny—make it difficult for law
enforcement officials and regulators to follow the trail
of money earned by criminals and organized inter-
national criminal enterprises that undermine United
States national interests and traffic in human mis-
ery, whether they are narcotics dealers, terrorists,
arms smugglers, traffickers in human beings, or those
whose frauds prey upon law abiding citizens.
(5) Certain banking relationships between finan-
cial institutions in the United States and financial
institutions located in such offshore jurisdictions, such
as correspondent and payable-through accounts, are
particularly vulnerable to abuse because of the dif-
ficulty in obtaining accurate information about the
beneficial owners whose funds pass through such ac-
counts.
(6) 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.
(7) The Basle Committee on Banking Regulation
and Supervisory Practices and the Financial Action
Task Force on Money Laundering, both of which the
United States is a member, have each adopted inter-
national anti-money laundering principles and rec-
ommendations.
(b) PURPOSES.—The purposes of this Act are as fol-
lows:
(1) To ensure that banking transactions and fi-
nancial relationships, the conduct of such trans-
actions and relationships, or both, do not contravene
the purposes of subchapter II of chapter 53 of title 31,
United States Code, section 21 of the Federal Deposit
Insurance Act, and chapter 2 of title I of Public Law
91–508, or facilitate the evasion of any such provi-
sion, to ensure that the purposes of such subchapter
II continue to be fulfilled, and to guard against inter-
national money laundering and other financial
crimes.
(2) To provide a clear national mandate for sub-
jecting to special scrutiny those foreign jurisdictions,
financial institutions operating outside the United
States, and classes of international transactions that
pose particular, identifiable opportunities for money
laundering.
(3) To provide the Secretary of the Treasury
with broad discretionary authority to take certain
measures tailored to the particular money laundering
problems presented by specific foreign jurisdictions,
financial institutions operating outside the United
States, and classes of international transactions.
(4) To provide domestic financial institutions
with guidance on particular foreign jurisdictions, fi-
nancial institutions operating outside the United
States, and classes of international transactions that
are of primary money laundering concern to the
United States government.
(5) To clarify the terms of the safe harbor from
civil liability for filing suspicious activity reports.
(6) To strengthen the Secretary’s authority to
issue and administer geographic targeting orders, and
to clarify that violations of such orders or any other
requirement imposed under the authority contained
in chapter 2 of title I of Public Law 91–508 and sub-
chapters II and III of chapter 53 of title 31, United
States Code, may result in criminal and civil pen-
alties.
(7) To strengthen the ability of financial institu-
tions to maintain the integrity of their employee pop-
ulation.
(8) To strengthen measures to prevent the use of
the United States financial system for personal gain
by corrupt foreign officials and to facilitate the repa-
triation of any stolen assets to the citizens of coun-
tries to whom such assets belong.
TITLE I—INTERNATIONAL COUN-
TER–MONEY 
LAUNDERING
MEASURES
SEC. 101. 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 sec-
tion 5318 the following new section:
‘‘§ 5318A. Special measures for jurisdictions, financial
institutions, or international transactions
of primary money laundering concern
‘‘(a) INTERNATIONAL COUNTER-MONEY LAUNDERING
REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary may require
domestic financial institutions and domestic financial
agencies to take 1 or more of the special measures de-
scribed in subsection (b) if the Secretary finds that
reasonable grounds exist for concluding that a juris-
diction outside the United States, 1 or more financial
institutions operating outside the United States, or 1
or more classes of transactions within, or involving,
a jurisdiction outside the United States is of primary
money laundering concern, in accordance with sub-
section (c).
‘‘(2) FORM
OF
REQUIREMENT.—The special
measures described in subsection (b) may be imposed
by regulation, order, or otherwise as permitted by
law, and in such sequence or combination, as the Sec-
retary shall determine.
‘‘(3) PROCESS FOR SELECTING SPECIAL MEAS-
URES.—
‘‘(A) CONSULTATION.—In selecting which
special measure or measures to take under this
subsection, the Secretary shall consult with the
Chairman of the Board of Governors of the Fed-
eral Reserve System and, in the Secretary’s sole
discretion, such other agencies and interested
parties as the Secretary may find to be appro-
priate.
‘‘(B) FACTORS.—The Secretary also shall
consider—
‘‘(i) whether similar action has been or
is being taken by other nations or multilat-
eral groups;
‘‘(ii) whether the imposition of any
particular special measure would create a
significant competitive disadvantage, in-
cluding any undue cost or burden associated
with compliance, for financial institutions
organized or licensed in the United States;
and
‘‘(iii) the extent to which the action
would have a significant adverse systemic
impact on the international payment, clear-
ance and settlement system, or on legitimate
business activities involving the particular
jurisdiction, institution, or class of trans-
actions.
‘‘(4) NO LIMITATION ON OTHER AUTHORITY.—
This section shall not be construed as superseding or
otherwise restricting any other authority granted to
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 the United States, financial institution operating
outside the United States, or class of transaction within,
or involving, a jurisdiction outside the United States, are
as follows:
‘‘(1) RECORDKEEPING AND REPORTING OF CER-
TAIN FINANCIAL TRANSACTIONS.—
‘‘(A) IN GENERAL.—The Secretary may re-
quire any domestic financial institution or do-
mestic financial agency to maintain records, file
reports, or both, concerning the aggregate
amount of transactions, or concerning each
transaction, with respect to a jurisdiction out-
side the United States, 1 or more financial insti-
tutions operating outside the United States, or 1
or more classes of transactions within, or involv-
ing, a jurisdiction outside the United States, if
the Secretary finds any such jurisdiction, insti-
tution, or class of transactions to be of primary
money laundering concern.
‘‘(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 deter-
mine, 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;
information that the depository institution ob-
tains in the ordinary course of business with re-
spect to its customers residing in the United
States.
‘‘(4) INFORMATION RELATING TO CERTAIN COR-
RESPONDENT ACCOUNTS.—If the Secretary finds a ju-
risdiction outside the United States, 1 or more finan-
cial institutions operating outside the United States,
or 1 or more classes of transactions within, or involv-
ing, a jurisdiction outside the United States to be of
primary money laundering concern, the Secretary
may require any domestic financial institution or do-
mestic financial agency that opens or maintains a
correspondent account in the United States for a for-
eign financial institution involving any such jurisdic-
tion or any such financial institution operating out-
side the United States, or a correspondent account
through which any such transaction may be con-
ducted, as a condition of opening or maintaining
such account, to—
‘‘(A) identify each customer (and represent-
ative of such customer) of any such financial in-
stitution who is permitted to use, or whose trans-
actions are routed through, such correspondent
account; and
‘‘(B) obtain, with respect to each such cus-
tomer (and each such representative), the same
information that the depository institution ob-
tains in the ordinary course with respect to its
customers residing in the United States.
‘‘(5) PROHIBITIONS OR CONDITIONS ON OPENING
OR MAINTAINING CERTAIN CORRESPONDENT OR PAY-
ABLE-THROUGH ACCOUNTS.—If the Secretary finds a
jurisdiction outside the United States, 1 or more fi-
nancial institutions operating outside the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside the United States to
be of primary money laundering concern, the Sec-
retary, in consultation with the Secretary of State,
the Attorney General, and the Chairman of the Board
of Governors of the Federal Reserve System, may pro-
hibit, or impose conditions upon, the opening or
maintaining in the United States of a correspondent
account or payable-through account by any domestic
financial institution or domestic financial agency for
or on behalf of a foreign banking institution if such
correspondent account or payable-through account in-
volves any such jurisdiction or institution, or if any
such transaction may be conducted through such cor-
respondent account or payable-through account.
‘‘(c) CONSULTATIONS AND INFORMATION TO BE CON-
SIDERED IN FINDING JURISDICTIONS, INSTITUTIONS, OR
TRANSACTIONS TO BE OF PRIMARY MONEY LAUNDERING
CONCERN.—
‘‘(1) IN GENERAL.—In making a finding that
reasonable grounds exist for concluding that a juris-
diction outside the United States, 1 or more financial
institutions operating outside the United States, or 1
or more classes of transactions within, or involving,
a jurisdiction outside the United States is of primary
money laundering concern so as to authorize the Sec-
retary to invoke 1 or more of the special measures of
subsection (b), the Secretary shall consult with the
Secretary of State, the Attorney General, the Sec-
retary of Commerce, and the United States Trade
Representative.
‘‘(2) INFORMATION.—The Secretary also shall
consider such information as the Secretary considers
to be relevant, including the following potentially rel-
evant factors:
‘‘(A) 
In 
the 
case 
of 
a 
particular
jurisdiction—
‘‘(i) the extent to which that jurisdic-
tion or financial institutions operating
therein offer bank secrecy or special tax or
regulatory advantages to nonresidents or
nondomiciliaries of such jurisdiction;
‘‘(ii) the substance and quality of ad-
ministration of that jurisdiction’s bank su-
pervisory and counter-money laundering
laws;
‘‘(iii) the relationship between the vol-
ume of financial transactions occurring in
that jurisdiction and the size of the jurisdic-
tion’s economy;
‘‘(iv) the extent to which that jurisdic-
tion is characterized as a tax haven or off-
shore banking or secrecy haven by credible
international organizations or multilateral
expert groups;
‘‘(v) whether the United States has a
mutual legal assistance treaty with that ju-
risdiction, and the experience of United
States law enforcement officials, regulatory
officials, and tax administrators in obtain-
ing information about transactions origi-
nating in or routed through or to such ju-
risdiction; and
‘‘(vi) the extent to which that jurisdic-
tion is characterized by high levels of offi-
cial or institutional corruption.
‘‘(B) In the case of a decision to apply 1 or
more of the special measures described in sub-
section (b) only to a financial institution or in-
stitutions, or to a transaction or class of trans-
actions, or to both, within, or involving, a par-
ticular jurisdiction—
‘‘(i) the extent to which such financial
institutions or transactions are used to fa-
cilitate or promote money laundering in or
through the jurisdiction;
‘‘(ii) the extent to which such institu-
tions or transactions are used for legitimate
business purposes in such jurisdiction; and
‘‘(iii) the extent to which such action is
sufficient to ensure, with respect to trans-
actions involving such jurisdiction and in-
stitutions operating in such 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 INVOKED
BY THE SECRETARY.—Within 10 days after the date of any
action taken by the Secretary under subsection (a)(1), the
Secretary shall notify, in writing, the Committee on Bank-
ing and Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Af-
fairs of the Senate of any such action.
‘‘(e) DEFINITIONS.—Notwithstanding any other provi-
sion of this subchapter, for purposes of this section, the fol-
lowing definitions shall apply:
‘‘(1) DEFINED TERMS.—
‘‘(A) BANK
DEFINITIONS.—The following
definitions shall apply with respect to a bank:
‘‘(i) ACCOUNT.—The term ‘account’—
‘‘(I) means a formal banking or
business relationship established to
provide regular services, dealings, and
other financial transactions; and
‘‘(II) includes a demand deposit,
savings deposit, or other transaction or
asset account and a credit account or
other extension of credit.
‘‘(ii) CORRESPONDENT ACCOUNT.—The
term ‘correspondent account’ means an ac-
count established to receive deposits from
and make payments on behalf of a foreign
financial institution.
‘‘(iii) PAYABLE-THROUGH ACCOUNT.—
The term ‘payable-through account’ means
an account, including a transaction account
(as defined in section 19(b)(1)(C) of the
Federal Reserve Act), opened at a deposi-
tory institution by a foreign financial insti-
tution by means of which the foreign finan-
cial institution permits its customers to en-
gage, either directly or through a sub-ac-
count, in banking activities usual in con-
nection with the business of banking in the
United States.
‘‘(B) DEFINITIONS APPLICABLE TO INSTITU-
TIONS
OTHER
THAN
BANKS.—With respect to
any financial institution other than a bank, the
Secretary shall define, by regulation, order, or
otherwise as permitted by law, the term ‘account’
and shall include within the meaning of such
term arrangements similar to payable-through
and correspondent accounts.
‘‘(2) OTHER
TERMS.—The Secretary may, by
regulation, order, or otherwise as permitted by law,
further define the terms in paragraph (1) and define
other terms for the purposes of this section, as the Sec-
retary deems appropriate.’’.
(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 international
transactions of primary money laundering concern.’’.
TITLE 
II—CURRENCY 
TRANS-
ACTION REPORTING AMEND-
MENTS 
AND 
RELATED 
IM-
PROVEMENTS
SEC. 201. AMENDMENTS RELATING TO REPORTING OF SUS-
PICIOUS ACTIVITIES.
(a) AMENDMENT RELATING TO CIVIL LIABILITY IMMU-
NITY FOR DISCLOSURES.—Section 5318(g)(3) of title 31,
United States Code, is amended to read as follows:
‘‘(3) LIABILITY FOR DISCLOSURES.—
‘‘(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 failure
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 ordinary
usage so to include any government or
agency of government; or
‘‘(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 agen-
cy.’’.
(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 Fed-
eral Government or of any state, local, trib-
al, or territorial government within the
United States, who has any knowledge that
such report was made may disclose to any
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.—Notwithstanding the ap-
plication of subparagraph (A) in any other con-
text, subparagraph (A) shall not be construed as
prohibiting any financial institution, or any di-
rector, officer, employee, or agent of such institu-
tion, from including, in a written employment
reference that is provided in accordance with sec-
tion 18(v) of the Federal Deposit Insurance Act
in response to a request from another financial
institution or a written termination notice or
employment reference that is provided in accord-
ance with the rules of the self-regulatory organi-
zations registered with the Securities and Ex-
change Commission, information that was in-
cluded in a report to which subparagraph (A)
applies, but such written employment reference
may not disclose that such information was also
included in any such report or that such report
was made.’’.
SEC. 202. 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 De-
posit Insurance Act or section 123 of Public Law 91–
508,’’ after ‘‘section 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
Federal Deposit Insurance Act or section 123 of
Public Law 91–508,’’ after ‘‘under section 5315
or 5324)’’;
(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 im-
posed by any order issued under section 5326, or the
recordkeeping requirements imposed by any regula-
tion prescribed under section 21 of the Federal De-
posit Insurance Act or section 123 of Public Law 91–
508—’’;
(3) in paragraph (1) by inserting ‘‘, to file a re-
port or to maintain a record required by an order
issued under section 5326, or to maintain a record re-
quired 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 re-
port or to maintain a record required by any order
issued under section 5326, or to maintain a record re-
quired pursuant to any regulation prescribed under
section 5326, or to maintain a record required pursu-
ant 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’’.
(d) LENGTHENING
EFFECTIVE
PERIOD
OF
GEO-
GRAPHIC TARGETING ORDERS.—Section 5326(d) of title 31,
United States Code, is amended by striking ‘‘60’’ after
‘‘shall be effective for more than’’ and inserting ‘‘180’’.
SEC. 203. 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 following
new paragraph:
‘‘(v) WRITTEN EMPLOYMENT REFERENCES MAY CON-
TAIN SUSPICIONS OF INVOLVEMENT IN ILLEGAL ACTIV-
ITY.—
‘‘(1) IN GENERAL.—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 relating to a current or former institution-
affiliated party of such institution which is provided
to another insured depository institution in response
to a request from such other institution, information
concerning the possible involvement of such institu-
tion-affiliated party in potentially unlawful activity.
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘insured depository institution’ in-
cludes any uninsured branch or agency of a foreign
bank.’’.
SEC. 204. BANK SECRECY ACT ADVISORY GROUP.
Section 1564 of the Annunzio-Wylie Anti-Money
Laundering Act (31 U.S.C. 5311 note) is amended—
(1) in subsection (a), by inserting ‘‘, of non-
governmental organizations advocating financial pri-
vacy,’’ after ‘‘Drug Control Policy’’; and
(2) in subsection (c), by inserting ‘‘, other than
subsections (a) and (d) of such Act which shall
apply’’ before the period at the end.
SEC. 205. AGENCY REPORTS ON RECONCILING PENALTY
AMOUNTS.
Before the end of the 1-year period beginning on the
date of the enactment of this Act, the Secretary of the Treas-
ury and the Federal banking agencies (as defined in section
3 of the Federal Deposit Insurance Act) shall each submit
their respective reports to the Congress containing rec-
ommendations on possible legislation to conform the pen-
alties imposed on depository institutions (as defined in sec-
tion 3 of the Federal Deposit Insurance Act) for violations
of subchapter II of chapter 53 of title 31, United States
Code, to the penalties imposed on such institutions under
section 8 of the Federal Deposit Insurance Act.
TITLE III—ANTICORRUPTION
MEASURES
SEC. 301. CORRUPTION OF FOREIGN GOVERNMENTS AND
RULING ELITES.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that, in deliberations between the United States
Government and any other country on money laundering
and corruption issues, the United States Government
should—
(1) emphasize an approach that addresses not
only the laundering of the proceeds of traditional
criminal activity but also the increasingly endemic
problem of governmental corruption and the corrup-
tion of ruling elites;
(2) encourage the enactment and enforcement of
laws in such country to prevent money laundering
and systemic corruption;
(3) make clear that the United States will take
all steps necessary to identify the proceeds of foreign
government corruption which have been deposited in
United States financial institutions and return such
proceeds to the citizens of the country to whom such
assets belong; and
(4) advance policies and measures to promote
good government and to prevent and reduce corrup-
tion and money laundering, including through in-
structions to the United States Executive Director of
each international financial institution (as defined in
section 1701(c) of the International Financial Insti-
tutions Act) to advocate such policies as a systematic
element of economic reform programs and advice to
member governments.
(b) GUIDANCE TO FINANCIAL INSTITUTIONS OPER-
ATING IN THE UNITED STATES ON TRANSACTIONS BY OR
ON BEHALF OF CORRUPT FOREIGN OFFICIALS.—The Sec-
retary of the Treasury, in consultation with the Attorney
General of the United States and the Federal functional reg-
ulators (as defined in section 509(2) of the Gramm-Leach-
Bliley Act), shall, before the end of the 180-day period be-
ginning on the date of the enactment of this Act, issue guid-
ance to financial institutions operating in the United
States on appropriate practices and procedures to reduce
the risk that such institutions may become depositories for,
or transmitters of, the proceeds of corruption by or on behalf
of senior foreign officials and their close associates.
SEC. 302. SUPPORT FOR THE FINANCIAL ACTION TASK
FORCE ON MONEY LAUNDERING.
It is the sense of the Congress that—
(1) the United States should continue to actively
and publicly support the objectives of the Financial
Action Task Force on Money Laundering (hereafter
in this section referred to as the ‘‘FATF’’) with re-
gard to combating international money laundering;
(2) the FATF should identify noncooperative ju-
risdictions in as expeditious a manner as possible
and publicly release a list directly naming those ju-
risdictions identified;
(3) the United States should support the public
release of the list naming noncooperative jurisdictions
identified by the FATF;
(4) the United States should encourage the adop-
tion of the necessary international action to encour-
age compliance by the identified noncooperative juris-
dictions; and
(5) the United States should take the necessary
countermeasures to protect the United States economy
against money of unlawful origin and encourage
other nations to do the same.
Amend the title so as to read: ‘‘A bill to combat
international money laundering and protect the United
States financial system, and for other purposes.’’.
Union Calendar No. 410
106TH CONGRESS
2D SESSION
H. R. 3886
[Report No. 106–728]
A BILL
To combat international money laundering, and for
other purposes.
JULY 11, 2000
Reported with amendments, committed to the Committee
of the Whole House on the State of the Union, and or-
dered to be printed