IIA
103D CONGRESS
2D SESSION
H. R. 3235
IN THE SENATE OF THE UNITED STATES
MARCH 23 (legislative day, FEBRUARY 22), 1994
Received; read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
AN ACT
To amend subchapter II of chapter 53 of title 31, United
States Code, to improve enforcement of antimoney laun-
dering laws, 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
‘‘Money Laundering Suppression Act of 1994’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Reform of CTR exemption requirements to reduce number and size of
reports consistent with effective law enforcement.
Sec. 3. Single designee for reporting of suspicious transactions.
Sec. 4. Improvement of identification of money laundering schemes.
Sec. 5. Negotiable instruments drawn on foreign banks subject to recordkeeping
and reporting requirements.
Sec. 6. Imposition of civil money penalties by appropriate Federal banking
agencies.
Sec. 7. Uniform State licensing and regulation of check cashing, currency ex-
change, and money transmitting businesses.
Sec. 8. Registration of money transmitting businesses to promote effective law
enforcement.
Sec. 9. Uniform Federal regulation of casinos.
Sec. 10. Uniform Federal administration of recordkeeping and reporting re-
quirements.
Sec. 11. Criminal and civil penalty for structuring domestic and international
transactions.
Sec. 12. GAO study of cashiers’ checks.
Sec. 13. Technical corrections.
SEC. 2. REFORM OF CTR EXEMPTION REQUIREMENTS TO
REDUCE NUMBER AND SIZE OF REPORTS
CONSISTENT 
WITH 
EFFECTIVE 
LAW 
EN-
FORCEMENT.
(a) IN GENERAL.—Section 5313 of title 31, United
States Code, is amended by adding at the end the follow-
ing new subsections:
‘‘(d) MANDATORY EXEMPTIONS FROM REPORTING
REQUIREMENTS.—
‘‘(1) IN
GENERAL.—The Secretary of the
Treasury 
shall 
exempt, 
pursuant 
to 
section
5318(a)(5), a depository institution from the report-
ing requirements of subsection (a) with respect to
transactions between the depository institution and
the following categories of entities:
‘‘(A) Another depository institution.
‘‘(B) A department or agency of the
United States, any State, or any political sub-
division 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 exer-
cises governmental authority on behalf of the
United States, the State, or the political sub-
division.
‘‘(D) Any business or category of business
the reports on which have little or no value for
law enforcement purposes.
‘‘(2) NOTICE OF EXEMPTION.—The Secretary
of the Treasury shall publish in the Federal Register
at such times as the Secretary determines to be ap-
propriate (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 sub-
section (a).
‘‘(e) DISCRETIONARY EXEMPTIONS FROM REPORT-
ING REQUIREMENTS.—
‘‘(1) IN
GENERAL.—The Secretary of the
Treasury 
may 
exempt, 
pursuant 
to 
section
5318(a)(5), a depository institution from the report-
ing requirements of subsection (a) with respect to
transactions between the depository institution and a
qualified business customer of the institution on the
basis of information submitted to the Secretary by
the institution in accordance with procedures which
the Secretary shall establish.
‘‘(2) QUALIFIED
BUSINESS
CUSTOMER
DE-
FINED.—For purposes 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 depository 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 de-
termines are sufficient to ensure that the pur-
poses of this subchapter are carried out without
requiring a report with respect to such trans-
actions.
‘‘(3) CRITERIA
FOR
EXEMPTION.—The Sec-
retary of the Treasury shall establish, by regulation,
the criteria for granting and maintaining an exemp-
tion under paragraph (1).
‘‘(4) GUIDELINES.—
‘‘(A) IN GENERAL.—The Secretary of the
Treasury shall establish guidelines for deposi-
tory institutions to follow in selecting customers
for an exemption under this subsection.
‘‘(B) CONTENTS.—The guidelines may in-
clude a description of the types of businesses or
an itemization of specific businesses for which
no exemption will be granted under this sub-
section 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 business 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 deter-
mines 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 the enact-
ment of the Money Laundering Suppression Act of
1994, this subsection shall be applied by the Sec-
retary on the basis of such criteria as the Secretary
determines to be appropriate to achieve an orderly
implementation of the requirements of this sub-
section.
‘‘(f) PROVISIONS APPLICABLE TO MANDATORY AND
DISCRETIONARY EXEMPTIONS.—
‘‘(1) LIMITATION ON LIABILITY OF DEPOSITORY
INSTITUTIONS.—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 cus-
tomer for whom an exemption has been granted
under subsection (d) or (e) unless the institution—
‘‘(A) knowingly files false or incomplete in-
formation 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 en-
tered into that the customer or the transaction
does not meet the criteria established for grant-
ing such exemption.
‘‘(2) COORDINATION
WITH
OTHER
PROVI-
SIONS.—Any exemption granted by the Secretary of
the Treasury under section 5318(a) in accordance
with this section, and any transaction which is sub-
ject to such exemption, shall be subject to any other
provision of law applicable to such exemption, in-
cluding—
‘‘(A) the authority of the Secretary, under
section 5318(a)(5), to revoke such exemption at
any time; and
‘‘(B) any requirement to report, or any au-
thority to require a report on, any possible vio-
lation of any law or regulation or any suspected
criminal activity.
‘‘(g) DEPOSITORY INSTITUTION DEFINED.—For pur-
poses of this section, the term ‘depository institution’—
‘‘(1) has the meaning given to such term in sec-
tion 19(b)(1)(A) of the Federal Reserve Act; and
‘‘(2) includes—
‘‘(A) any branch, agency, or commercial
lending company (as such terms are defined in
section 1(b) of the International Banking Act of
1978);
‘‘(B) any corporation chartered under sec-
tion 25A of the Federal Reserve Act; and
‘‘(C) any corporation having an agreement
or undertaking with the Board of Governors of
the Federal Reserve System under section 25 of
the Federal Reserve Act.’’.
(b) REPORT REDUCTION GOAL; REPORTS.—
(1) IN GENERAL.—In implementing the amend-
ment made by subsection (a), the Secretary of the
Treasury shall seek to reduce, within a reasonable
period of time, the number of reports required to be
filed in the aggregate by depository institutions pur-
suant to section 5313(a) of title 31, United States
Code, by at least 30 percent of the number filed dur-
ing the year preceding the date of the enactment of
this Act.
(2) INTERIM
REPORT.—The Secretary of the
Treasury shall submit a report to the Congress not
later than the end of the 180-day period beginning
on the date of the enactment of this Act on the
progress made by the Secretary in implementing the
amendment made by subsection (a).
(3) ANNUAL
REPORT.—The Secretary of the
Treasury shall submit an annual report to the Con-
gress after the end of each of the first 5 calendar
years which begin after the date of the enactment of
this Act on the extent to which the Secretary has re-
duced the overall number of currency transaction re-
ports filed with the Secretary pursuant to section
5313(a) of title 31, United States Code, consistently
with the purposes of such section and effective law
enforcement.
(c) STREAMLINED CURRENCY TRANSACTION RE-
PORTS.—The Secretary of the Treasury shall take such
action as may be appropriate to redesign the format of
reports required to be filed by any financial institution (as
defined in section 5312(a)(2) of title 31, United States
Code) under section 5313(a) of title 31, United States
Code, to eliminate the need to report information which
has little or no value for law enforcement purposes and
reduce the time and effort required to prepare such report
for filing by any such financial institution under such
section.
SEC. 3. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS
TRANSACTIONS.
(a) IN GENERAL.—Section 5318(g) of title 31,
United States Code, is amended by adding at the end the
following new paragraph:
‘‘(4) SINGLE DESIGNEE FOR REPORTING SUS-
PICIOUS TRANSACTIONS.—
‘‘(A) IN GENERAL.—In requiring reports
under paragraph (1) of suspicious transactions,
the Secretary of the Treasury shall designate,
to the extent practicable and appropriate, a sin-
gle officer or agency of the United States to
whom such reports shall be made.
‘‘(B) DUTY OF DESIGNEE.—The officer or
agency of the United States designated by the
Secretary of the Treasury pursuant to subpara-
graph (A) shall refer any report of a suspicious
transaction to any appropriate law enforcement
or supervisory agency.
‘‘(C) COORDINATION
WITH
OTHER
RE-
PORTING
REQUIREMENTS.—Subparagraph (A)
shall not be construed as precluding any super-
visory agency for any financial institution from
requiring the financial institution to submit any
information or report to the agency or another
agency pursuant to any provision of law other
than this subsection.’’.
(b) REPORTS.—
(1) REPORTS REQUIRED.—The Secretary of the
Treasury shall submit an annual report to the Con-
gress at the times required under paragraph (2) on
the number of suspicious transactions reported to
the officer or agency designated under section
5318(g)(4)(A) of title 31, United States Code, dur-
ing the period covered by the report and the disposi-
tion of such reports.
(2) TIME FOR SUBMITTING REPORTS.—The 1st
report required under paragraph (1) shall be filed
before the end of the 1-year period beginning on the
date of the enactment of the Money Laundering
Suppression Act of 1994 and each subsequent report
shall be filed within 90 days after the end of each
of the 5 calendar years which begin after such date
of enactment.
(c) DESIGNATION REQUIRED TO BE MADE EXPEDI-
TIOUSLY.—The initial designation of an officer or agency
of the United States pursuant to the amendment made
by subsection (a) shall be made before the end of the 180-
day period beginning on the date of the enactment of this
Act.
SEC. 4. IMPROVEMENT OF IDENTIFICATION OF MONEY
LAUNDERING SCHEMES.
(a) ENHANCED TRAINING, EXAMINATIONS, AND RE-
FERRALS BY BANKING AGENCIES.—Before the end of the
6-month period beginning on the date of the enactment
of this Act, each appropriate Federal banking agency
shall, in consultation with the Secretary of the Treasury
and other appropriate law enforcement agencies—
(1) review and enhance training and examina-
tion procedures to improve the identification of
money laundering schemes involving depository insti-
tutions; and
(2) review and enhance procedures for referring
cases to any appropriate law enforcement agency.
(b) IMPROVED REPORTING OF CRIMINAL SCHEMES
BY LAW ENFORCEMENT AGENCIES.—The Secretary of
the Treasury and each appropriate law enforcement agen-
cy shall provide, on a regular basis, information regarding
money laundering schemes and activities involving deposi-
tory institutions to each appropriate Federal banking
agency in order to enhance the agency’s ability to examine
for and identify money laundering activity.
(c) REPORT TO CONGRESS.—The Financial Institu-
tions Examination Council shall submit a report on the
progress made in carrying out subsection (a) and the use-
fulness of information received pursuant to subsection (b)
to the Congress by the end of the 1-year period beginning
on the date of the enactment of this Act.
(d) DEFINITIONS.—The terms ‘‘appropriate Federal
banking agency’’ and ‘‘Federal banking agencies’’ have the
same meanings as in section 3 of the Federal Deposit In-
surance Act.
SEC. 5. NEGOTIABLE INSTRUMENTS DRAWN ON FOREIGN
BANKS SUBJECT TO RECORDKEEPING AND
REPORTING REQUIREMENTS.
Section 5312(a)(3) of title 31, United States Code,
is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) as the Secretary of the Treasury shall
provide by regulation for purposes of section
5316, checks, drafts, notes, money orders, and
other similar instruments which are drawn on
or by a foreign financial institution and are not
in bearer form.’’.
SEC. 6. IMPOSITION OF CIVIL MONEY PENALTIES BY AP-
PROPRIATE FEDERAL BANKING AGENCIES.
Section 5321 of title 31, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(e) DELEGATION OF ASSESSMENT AUTHORITY TO
BANKING AGENCIES.—
‘‘(1) IN
GENERAL.—The Secretary of the
Treasury shall delegate, in accordance with section
5318(a)(1) and subject to such terms and conditions
as the Secretary may impose in accordance with
paragraph (3), any authority of the Secretary to as-
sess a civil money penalty under this section on de-
pository institutions (as defined in section 3 of the
Federal Deposit Insurance Act) to the appropriate
Federal banking agencies (as defined in such section
3).
‘‘(2) AUTHORITY
OF
AGENCIES.—Subject to
any term or condition imposed by the Secretary of
the Treasury under paragraph (3), the provisions of
this section shall apply to an appropriate Federal
banking agency to which is delegated any authority
of the Secretary under this section in the same man-
ner such provisions apply to the Secretary.
‘‘(3) TERMS AND CONDITIONS.—
‘‘(A) IN GENERAL.—The Secretary of the
Treasury shall prescribe by regulation the terms
and conditions which shall apply to any delega-
tion under paragraph (1).
‘‘(B) MAXIMUM
DOLLAR
AMOUNT.—The
terms and conditions authorized under subpara-
graph (A) may include, in the Secretary’s sole
discretion, a limitation on the amount of any
civil penalty which may be assessed by an ap-
propriate Federal banking agency pursuant to a
delegation under paragraph (1).’’.
SEC. 7. UNIFORM STATE LICENSING AND REGULATION OF
CHECK 
CASHING, 
CURRENCY 
EXCHANGE,
AND MONEY TRANSMITTING BUSINESSES.
(a) UNIFORM LAWS AND ENFORCEMENT.—For pur-
poses of preventing money laundering and protecting the
payment system from fraud and abuse, it is the sense of
the Congress that the several States should—
(1) establish uniform laws for licensing and reg-
ulating businesses which—
(A) provide check cashing, currency ex-
change, or money transmitting or remittance
services, or issue or redeem money orders, trav-
elers’ checks, and other similar instruments;
and
(B) are not depository institutions (as de-
fined in section 19(b)(1)(A) of the Federal Re-
serve Act); and
censed as a money transmitting business in any
State) with the Secretary of the Treasury before the
end of the 180-day period beginning on the later
of—
‘‘(A) the date of the enactment of the
Money Laundering Suppression Act of 1994; or
‘‘(B) the date the business is established.
‘‘(2) FORM AND MANNER OF REGISTRATION.—
Subject to the requirements of subsection (b), the
Secretary of the Treasury shall prescribe, by regula-
tion, the form and manner for registering a money
transmitting business pursuant to paragraph (1).
‘‘(3) BUSINESSES REMAIN SUBJECT TO STATE
LAW.—This section shall not be construed as super-
seding any requirement of State law relating to
money transmitting businesses operating in such
State.
‘‘(4) FALSE AND INCOMPLETE INFORMATION.—
The filing of false or materially incomplete informa-
tion in connection with the registration of a money
transmitting business shall be considered as a failure
to comply with the requirements of this subchapter.
‘‘(b) CONTENTS OF REGISTRATION.—The registra-
tion of a money transmitting business under subsection
(a) shall include the following information: