impose conditions upon, the opening or maintaining
in the United States of a correspondent account or
payable-through account by a domestic financial in-
stitution or domestic financial agency for or on be-
half of a foreign banking institution if such cor-
respondent account or payable-through account in-
volves any such jurisdiction or institution, or if any
such transaction may be conducted through such
correspondent account or payable-through account.
‘‘(c) INFORMATION TO BE CONSIDERED 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 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 is of pri-
mary money laundering concern so as to allow the
Secretary to invoke 1 or more of the special meas-
ures of subsection (b), the Secretary shall consult
with the Secretary of State and the Attorney Gen-
eral.
‘‘(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 the 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 juris-
diction’s economy;
‘‘(iv) the extent to which the jurisdic-
tion is characterized as a tax haven or off-
shore banking or secrecy haven by credible
international organizations or multilateral
expert groups; and
‘‘(v) the experience of United States
law enforcement officials, regulatory offi-
cials, and tax administrators in obtaining
information about transactions originating
in or routed through or to such jurisdic-
tions;
‘‘(B) In the case of a decision to apply 1
or more of the special measures described in
subsection (b) only to a financial institution or
institutions, or to a transaction or class of
transactions, or to both, within or involving a
particular 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 legiti-
mate business purposes in such jurisdic-
tion; and
‘‘(iii) the extent to which such action
is sufficient to ensure, with respect to
transactions involving such jurisdiction and
institutions 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) DEFINITIONS.—Notwithstanding any other pro-
vision of this subchapter, for purposes of this section, the
following 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 account established to receive deposits
from and make payments on behalf of a
correspondent bank.
‘‘(iii) CORRESPONDENT
BANK.—The
term ‘correspondent bank’ means a deposi-
tory institution that accepts deposits from
another financial institution and provides
services on behalf of such other financial
institution.
‘‘(B) DEFINITIONS APPLICABLE TO INSTI-
TUTIONS 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 ‘ac-
count’ 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
Secretary 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 inter-
national 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 IM-
MUNITY 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.—Notwithstanding any
other provision of law—
‘‘(i) any financial institution that—
‘‘(I) makes a voluntary disclosure
of any possible violation of law or reg-
ulation to a government agency; or
‘‘(II) makes a disclosure pursu-
ant to this subsection or any other au-
thority;
‘‘(ii) any director, officer, employee, or
agent of such institution who makes, or re-
quires another to make any such disclo-
sure; and
‘‘(iii) any independent public account-
ant who audits any such financial institu-
tion and makes a disclosure described in
clause (i),
shall not be liable to any person under any law
or regulation of the United States, any con-
stitution, law, or regulation of any State or po-
litical subdivision of any State, or under any
contract or other legally enforceable agreement
(including any arbitration agreement), for such
disclosure or for any failure to notify the person
who is the subject of such disclosure or any
other person identified in the disclosure.
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply to a disclosure or communica-
tion required under Federal securities law,
other than provisions of law that specifically
refer to subchapter II of chapter 53 of title 31,
United States Code.
‘‘(C) 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 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
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, any director, officer, employee, or agent of
any financial institution, or any independent
public accountant who audits any financial in-
stitution, voluntarily or pursuant to this section
or any other authority, reports a suspicious
transaction to a government agency—
‘‘(i) the financial institution, director,
officer, employee, agent, or accountant
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
person involved in the transaction that the
transaction has been reported other than
as necessary to fulfill any such person’s
duties as required by law.
‘‘(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
director, officer, employee, or agent of such in-
stitution, from including, in a written employ-
ment reference that is provided in accordance
with section 18(v) of the Federal Deposit Insur-
ance Act in response to a request from another
financial institution or a written termination
notice or employment reference that is provided
in accordance with the rules of the self-regu-
latory organizations registered with the Securi-
ties and Exchange Commission, information
that was included in a report to which subpara-
graph (A) applies, but such written employment
reference may not disclose that such informa-
tion 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
Deposit 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
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—’’;
(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
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 re-
port 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 ‘‘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 fol-
lowing new paragraph:
‘‘(v) WRITTEN EMPLOYMENT REFERENCES MAY
CONTAIN SUSPICIONS OF INVOLVEMENT IN ILLEGAL AC-
TIVITY.—
‘‘(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.’’
Æ