H. R. 3474—90
(5) CRIMINAL PENALTIES FOR OPERATION OF BUSINESS WITH-
OUT A LICENSE.—A criminal penalty for operating any business
referred to in paragraph (1) without a license within the State
after the end of an appropriate transition period beginning
on the date of enactment of such model statute by the State.
(c) STUDY REQUIRED.—The Secretary of the Treasury shall con-
duct a study of—
(1) the progress made by the several States in developing
and enacting a model statute which—
(A) meets the requirements of subsection (b); and
(B) furthers the goals of—
(i) preventing money laundering by businesses
which are required to be licensed under any such stat-
ute; and
(ii) protecting the payment system, including the
receipt, payment, collection, and clearing of checks,
from fraud and abuse by such businesses; and
(2) the adequacy of—
(A) the activity of the several States in enforcing the
requirements of such statute; and
(B) the resources made available to the appropriate
State agencies for such enforcement activity.
(d) REPORT REQUIRED.—Not later than the end of the 3-year
period beginning on the date of enactment of this Act and not
later than the end of each of the first two 1-year periods beginning
after the end of such 3-year period, the Secretary of the Treasury
shall submit a report to the Congress containing the findings and
recommendations of the Secretary in connection with the study
under subsection (c), together with such recommendations for legis-
lative and administrative action as the Secretary may determine
to be appropriate.
(e) RECOMMENDATIONS IN CASES OF INADEQUATE REGULATION
AND ENFORCEMENT BY STATES.—If the Secretary of the Treasury
determines that any State has been unable to—
(1) enact a statute which meets the requirements described
in subsection (b);
(2) undertake adequate activity to enforce such statute;
or
(3) make adequate resources available to the appropriate
State agency for such enforcement activity,
the report submitted pursuant to subsection (d) shall contain rec-
ommendations of the Secretary which are designed to facilitate
the enactment and enforcement by the State of such a statute.
(f) FEDERAL FUNDING STUDY.—
(1) STUDY REQUIRED.—The Secretary of the Treasury shall
conduct a study to identify possible available sources of Federal
funding to cover costs which will be incurred by the States
in carrying out the purposes of this section.
(2) REPORT.—The Secretary of the Treasury shall submit
a report to the Congress on the study conducted pursuant
to paragraph (1) not later than the end of the 18-month period
beginning on the date of enactment of this Act.
SEC. 408. REGISTRATION OF MONEY TRANSMITTING BUSINESSES TO
PROMOTE EFFECTIVE LAW ENFORCEMENT.
(a) FINDINGS AND PURPOSES.—
(1) FINDINGS.—The Congress hereby finds the following:
H. R. 3474—91
(A) Money transmitting businesses are subject to the
recordkeeping and reporting requirements of subchapter
II of chapter 53 of title 31, United States Code.
(B) Money transmitting businesses are largely unregu-
lated businesses and are frequently used in sophisticated
schemes to—
(i) transfer large amounts of money which are
the proceeds of unlawful enterprises; and
(ii) evade the requirements of such subchapter II,
the Internal Revenue Code of 1986, and other laws
of the United States.
(C) Information on the identity of money transmitting
businesses and the names of the persons who own or con-
trol, or are officers or employees of, a money transmitting
business would have a high degree of usefulness in crimi-
nal, tax, or regulatory investigations and proceedings.
(2) PURPOSE.—It is the purpose of this section to establish
a registration requirement for businesses engaged in providing
check cashing, currency exchange, or money transmitting or
remittance services, or issuing or redeeming money orders,
travelers’ checks, and other similar instruments to assist the
Secretary of the Treasury, the Attorney General, and other
supervisory and law enforcement agencies to effectively enforce
the criminal, tax, and regulatory laws and prevent such money
transmitting businesses from engaging in illegal activities.
(b) IN GENERAL.—Subchapter II of chapter 53 of title 31, United
States Code, is amended by adding at the end the following new
section:
‘‘§ 5330. Registration of money transmitting businesses
‘‘(a) REGISTRATION
WITH
SECRETARY
OF
THE
TREASURY
REQUIRED.—
‘‘(1) IN
GENERAL.—Any person who owns or controls a
money transmitting business shall register the business
(whether or not the business is licensed as a money transmit-
ting business in any State) with the Secretary of the Treasury
not later than the end of the 180-day period beginning on
the later of—
‘‘(A) the date of enactment of the Money Laundering
Suppression Act of 1994; or
‘‘(B) the date on which 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 regulation, the form and manner for register-
ing a money transmitting business pursuant to paragraph (1).
‘‘(3) BUSINESSES REMAIN SUBJECT TO STATE LAW.—This sec-
tion shall not be construed as superseding any requirement
of State law relating to money transmitting businesses operat-
ing in such State.
‘‘(4) FALSE AND INCOMPLETE INFORMATION.—The filing of
false or materially incomplete information 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 registration of a money
transmitting business under subsection (a) shall include the follow-
ing information:
H. R. 3474—92
‘‘(1) The name and location of the business.
‘‘(2) The name and address of each person who—
‘‘(A) owns or controls the business;
‘‘(B) is a director or officer of the business; or
‘‘(C) otherwise participates in the conduct of the affairs
of the business.
‘‘(3) The name and address of any depository institution
at which the business maintains a transaction account (as
defined in section 19(b)(1)(C) of the Federal Reserve Act).
‘‘(4) An estimate of the volume of business in the coming
year (which shall be reported annually to the Secretary).
‘‘(5) Such other information as the Secretary of the Treas-
ury may require.
‘‘(c) AGENTS OF MONEY TRANSMITTING BUSINESSES.—
‘‘(1) MAINTENANCE OF LISTS OF AGENTS OF MONEY TRANSMIT-
TING BUSINESSES.—Pursuant to regulations which the Secretary
of the Treasury shall prescribe, each money transmitting busi-
ness shall—
‘‘(A) maintain a list containing the names and
addresses of all persons authorized to act as an agent
for such business in connection with activities described
in subsection (d)(1)(A) and such other information about
such agents as the Secretary may require; and
‘‘(B) make the list and other information available on
request to any appropriate law enforcement agency.
‘‘(2) TREATMENT OF AGENT AS MONEY TRANSMITTING BUSI-
NESS.—The Secretary of the Treasury shall prescribe regula-
tions establishing, on the basis of such criteria as the Secretary
determines to be appropriate, a threshold point for treating
an agent of a money transmitting business as a money
transmitting business for purposes of this section.
‘‘(d) DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
‘‘(1) MONEY
TRANSMITTING
BUSINESS.—The term ‘money
transmitting business’ means any business other than the
United States Postal Service which—
‘‘(A) provides check cashing, currency exchange, or
money transmitting or remittance services, or issues or
redeems money orders, travelers’ checks, and other similar
instruments;
‘‘(B) is required to file reports under section 5313;
and
‘‘(C) is not a depository institution (as defined in section
5313(g)).
‘‘(2) MONEY
TRANSMITTING
SERVICE.—The term ‘money
transmitting service’ includes accepting currency or funds
denominated in the currency of any country and transmitting
the currency or funds, or the value of the currency or funds,
by any means through a financial agency or institution, a
Federal reserve bank or other facility of the Board of Governors
of the Federal Reserve System, or an electronic funds transfer
network.
‘‘(e) CIVIL PENALTY FOR FAILURE TO COMPLY WITH REGISTRA-
TION REQUIREMENTS.—
‘‘(1) IN GENERAL.—Any person who fails to comply with
any requirement of this section or any regulation prescribed
H. R. 3474—93
under this section shall be liable to the United States for
a civil penalty of $5,000 for each such violation.
‘‘(2) 
CONTINUING
VIOLATION.—Each 
day 
a 
violation
described in paragraph (1) continues shall constitute a separate
violation for purposes of such paragraph.
‘‘(3) ASSESSMENTS.—Any penalty imposed under this sub-
section shall be assessed and collected by the Secretary of
the Treasury in the manner provided in section 5321 and
any such assessment shall be subject to the provisions of such
section.’’.
(c) CRIMINAL PENALTY FOR FAILURE TO COMPLY WITH REG-
ISTRATION REQUIREMENTS.—Section 1960(b)(1) of title 18, United
States Code, is amended to read as follows:
‘‘(1) the term ‘illegal money transmitting business’ means
a money transmitting business which affects interstate or for-
eign commerce in any manner or degree and—
‘‘(A) is intentionally operated without an appropriate
money transmitting license in a State where such operation
is punishable as a misdemeanor or a felony under State
law; or
‘‘(B) fails to comply with the money transmitting busi-
ness registration requirements under section 5330 of title
31, United States Code, or regulations prescribed under
such section;’’.
(d) CLERICAL AMENDMENT.—The table of sections for chapter
53 of title 31, United States Code, is amended by inserting after
the item relating to section 5329 (as added by section 311) the
following new item:
‘‘5330. Registration of money transmitting businesses.’’.
SEC. 409. UNIFORM FEDERAL REGULATION OF CASINOS.
Section 5312(a)(2) of title 31, United States Code, is amended—
(1) by redesignating subparagraphs (X) and (Y) as subpara-
graphs (Y) and (Z), respectively; and
(2) by inserting after subparagraph (W) the following new
subparagraph:
‘‘(X) a casino, gambling casino, or gaming establish-
ment with an annual gaming revenue of more than
$1,000,000 which—
‘‘(i) is licensed as a casino, gambling casino, or
gaming establishment under the laws of any State
or any political subdivision of any State; or
‘‘(ii) is an Indian gaming operation conducted
under or pursuant to the Indian Gaming Regulatory
Act other than an operation which is limited to class
I gaming (as defined in section 4(6) of such Act);’’.
SEC. 410. AUTHORITY TO GRANT EXEMPTIONS TO STATES WITH EFFEC-
TIVE REGULATION AND ENFORCEMENT.
(a) IN GENERAL.—Section 5318(a) of title 31, United States
Code, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (4);
(2) by redesignating paragraph (5) as paragraph (6); and
(3) by inserting after paragraph (4) the following new
paragraph: