I
107TH CONGRESS
1ST SESSION
H. R. 3004
To combat the financing of terrorism and other financial crimes, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 3, 2001
Mr. OXLEY (for himself, Mr. LAFALCE, Mr. LEACH, Mrs. MALONEY of New
York, Mrs. ROUKEMA, Mr. BENTSEN, Ms. HOOLEY of Oregon, Mr. BE-
REUTER, Mr. BAKER, Mr. BACHUS, Mr. KING, Mrs. KELLY, Mr.
GILLMOR, Mr. CANTOR, Mr. RILEY, Mr. LATOURETTE, Mr. GREEN of
Wisconsin, and Mr. GRUCCI) introduced the following bill; which was re-
ferred to the Committee on Financial Services, and in addition to the
Committees on the Judiciary, and Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To combat the financing of terrorism and other financial
crimes, 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
‘‘Financial Anti-Terrorism Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—STRENGTHENING LAW ENFORCEMENT
Sec. 101. Bulk cash smuggling into or out of the United States.
Sec. 102. Forfeiture in currency reporting cases.
Sec. 103. Interstate currency couriers.
Sec. 104. Illegal money transmitting businesses.
Sec. 105. Long-arm jurisdiction over foreign money launderers.
Sec. 106. Laundering money through a foreign bank.
Sec. 107. Specified unlawful activity for money laundering.
Sec. 108. Laundering the proceeds of terrorism.
Sec. 109. Violations of reporting requirements for nonfinancial trades and busi-
ness.
Sec. 110. Proceeds of foreign crimes.
Sec. 111. Transfer of reporting requirements from section 6050I of the Inter-
nal Revenue Code of 1986 to title 31, United States Code.
Sec. 112. Penalties for violations of geographic targeting orders and certain
record keeping requirements.
Sec. 113. Exclusion of aliens involved in money laundering.
Sec. 114. Standing to contest forfeiture of funds deposited into foreign bank
that has a correspondent account in the United States.
Sec. 115. Subpoenas for records regarding funds in correspondent bank ac-
counts.
Sec. 116. Financial crimes enforcement network.
Sec. 117. Customs service border searches.
Sec. 118. Prohibition on false statements to financial institutions concerning
the identity of a customer.
Sec. 119. Verification of identification.
TITLE II—PUBLIC-PRIVATE COOPERATION
Sec. 201. Establishment of highly secure website.
Sec. 202. Report on improvements in data access.
Sec. 203. Reports to the financial services industry on suspicious financial ac-
tivities.
Sec. 204. Efficient use of currency transaction report system.
Sec. 205. Public-Private Task Force on Terrorist Financing Issues.
Sec. 206. Deadline for suspicious activity reporting requirements for registered
brokers and dealers.
Sec. 207. Amendments relating to reporting of suspicious activities.
Sec. 208. Authorization to include suspicions of illegal activity in written em-
ployment references.
TITLE III—COMBATTING INTERNATIONAL MONEY LAUNDERING
Sec. 301. Special measures for jurisdictions, financial institutions, or inter-
national transactions of primary money laundering concern.
Sec. 302. International cooperation in investigations of money laundering, fi-
nancial crimes, and the finances of terrorist groups.
Sec. 303. Prohibition on acceptance of any bank instrument for unlawful Inter-
net gambling.
Sec. 304. Internet gambling in or through foreign jurisdictions.
TITLE IV—CURRENCY PROTECTION
Sec. 401. Counterfeiting domestic currency and obligations.
Sec. 402. Counterfeiting foreign currency and obligations.
Sec. 403. Production of documents.
Sec. 404. Reimbursement.
TITLE I—STRENGTHENING LAW
ENFORCEMENT
SEC. 101. BULK CASH SMUGGLING INTO OR OUT OF THE
UNITED STATES.
(a) ENACTMENT OF BULK CASH SMUGGLING OF-
FENSE.—Subchapter II of chapter 53 of title 31, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 5331. Bulk cash smuggling into or out of the
United States
‘‘(a) CRIMINAL OFFENSE.—
‘‘(1) IN GENERAL.—Whoever, with the intent to
evade a currency reporting requirement under sec-
tion 5316, knowingly conceals more than $10,000 in
currency or other monetary instruments on the per-
son of such individual or in any conveyance, article
of luggage, merchandise, or other container, and
transports or transfers or attempts to transport or
transfer such currency or monetary instruments
from a place within the United States to a place out-
side of the United States, or from a place outside
the United States to a place within the United
States, shall be guilty of a currency smuggling of-
fense and subject to punishment pursuant to sub-
section (b).
‘‘(2) CONCEALMENT
ON
PERSON.—For pur-
poses of this section, the concealment of currency on
the person of any individual includes concealment in
any article of clothing worn by the individual or in
any luggage, backpack, or other container worn or
carried by such individual.
‘‘(b) PENALTY.—
‘‘(1) TERM OF IMPRISONMENT.—A person con-
victed of a currency smuggling offense under sub-
section (a), or a conspiracy to commit such offense,
shall be imprisoned for not more than 5 years.
‘‘(2) FORFEITURE.—In addition, the court, in
imposing sentence under paragraph (1), shall order
that the defendant forfeit to the United States, any
property, real or personal, involved in the offense,
and any property traceable to such property, subject
to subsection (d) of this section.
‘‘(3) PROCEDURE.—The seizure, restraint, and
forfeiture of property under this section shall be gov-
erned by section 413 of the Controlled Substances
Act.
‘‘(C) Whether the offense is part of a pat-
tern of repeated violations of Federal law.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subchapter II of chapter 53 of title 31, United
States Code, is amended by inserting after the item relat-
ing to section 5330, the following new item:
‘‘5331. Bulk cash smuggling into or out of the United States.’’.
SEC. 102. FORFEITURE IN CURRENCY REPORTING CASES.
(a) IN GENERAL.—Subsection (c) of section 5317 of
title 31, United States Code, is amended to read as fol-
lows:
‘‘(c) FORFEITURE.—
‘‘(1) IN GENERAL.—The court in imposing sen-
tence for any violation of section 5313, 5316, or
5324, or any conspiracy to commit such violation,
shall order the defendant to forfeit all property, real
or personal, involved in the offense and any property
traceable thereto.
‘‘(2) PROCEDURE.—Forfeitures under this sub-
section shall be governed by the procedures estab-
lished in section 413 of the Controlled Substances
Act and the guidelines established in paragraph (4).
‘‘(3) CIVIL
FORFEITURE.—Any property in-
volved in a violation of section 5313, 5316, or 5324,
or any conspiracy to commit any such violation, and
any property traceable to any such violation or con-
spiracy, may be seized and, subject to paragraph
(4), forfeited to the United States in accordance
with the procedures governing civil forfeitures in
money 
laundering 
cases 
pursuant 
to 
section
981(a)(1)(A) of title 18, United States Code.
‘‘(4) PROPORTIONALITY OF FORFEITURE.—
‘‘(A) IN GENERAL.—Upon a showing by
the property owner by a preponderance of the
evidence that any currency or monetary instru-
ments involved in the offense giving rise to the
forfeiture were derived from a legitimate source,
and were intended for a lawful purpose, the
court shall reduce the forfeiture to the max-
imum amount that is not grossly dispropor-
tional to the gravity of the offense.
‘‘(B) FACTORS
TO
BE
CONSIDERED.—In
determining the amount of the forfeiture, the
court shall consider all aggravating and miti-
gating facts and circumstances that have a
bearing on the gravity of the offense, including
the following:
‘‘(i) The value of the currency or
other monetary instruments involved in the
offense.
‘‘(ii) Efforts by the person committing
the offense to structure currency trans-
actions, conceal property, or otherwise ob-
struct justice.
‘‘(iii) Whether the offense is part of a
pattern of repeated violations of Federal
law.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
981(a)(1)(A) of title 18, United States Code, is amended
by striking ‘‘of section 5313(a) or 5324(a) of title 31, or’’.
(2) Section 982(a)(1) of title 18, United States Code,
is amended by striking ‘‘of 5313(a), 5316, or 5324 of title
31, or’’.
SEC. 103. INTERSTATE CURRENCY COURIERS.
Section 1957 of title 18, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(g) Any person who conceals more than $10,000 in
currency on his or her person, in any vehicle, in any com-
partment or container within any vehicle, or in any con-
tainer placed in a common carrier, and transports, at-
tempts to transport, or conspires to transport such cur-
rency in interstate commerce on any public road or high-
way or on any bus, train, airplane, vessel, or other com-
mon carrier, knowing that the currency was derived from
some form of unlawful activity, or knowing that the cur-
rency was intended to be used to promote some form of
unlawful activity, shall be punished as provided in sub-
section (b). The defendant’s knowledge may be established
by proof that the defendant was willfully blind to the
source or intended use of the currency. For purposes of
this subsection, the concealment of currency on the person
of any individual includes concealment in any article of
clothing worn by the individual or in any luggage, back-
pack, or other container worn or carried by such indi-
vidual.’’.
SEC. 104. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) SCIENTER REQUIREMENT FOR SECTION 1960
VIOLATION.—Section 1960(b)(1)(A) of title 18, United
States Code, is amended by inserting ‘‘, whether or not
the defendant knew the operation was so punishable’’ be-
fore the semicolon at the end.
(b) 
SEIZURE
OF
ILLEGALLY
TRANSMITTED
FUNDS.—Section 981(a)(1)(A) of title 18, United States
Code, is amended by striking ‘‘or 1957’’ and inserting ‘‘,
1957 or 1960’’.
SEC. 105. LONG-ARM JURISDICTION OVER FOREIGN MONEY
LAUNDERERS.
Section 1956(b) of title 18, United States Code, is
amended—
(1) by striking ‘‘(b) Whoever’’ and inserting
‘‘(b)(1) Whoever’’;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) by striking ‘‘subsection (a)(1) or (a)(3),’’
and inserting ‘‘subsection (a)(1) or (a)(3)(2) or sec-
tion 1957,’’; and
(4) by adding at the end the following new
paragraph:
‘‘(2) For purposes of adjudicating an action
filed or enforcing a penalty ordered under this sec-
tion, the district courts shall have jurisdiction over
any foreign person, including any financial institu-
tion authorized under the laws of a foreign country,
against whom the action is brought, if—
‘‘(A) service of process upon such foreign
person is made under the Federal Rules of Civil
Procedure or the laws of the country where the
foreign person is found; and
‘‘(B) the foreign person—
‘‘(i) commits an offense under sub-
section (a) involving a financial transaction
that occurs in whole or in part in the
United States;
‘‘(ii) converts to such person’s own
use property in which the United States
has an ownership interest by virtue of the
entry of an order of forfeiture by a court
of the United States; or
‘‘(iii) is a financial institution that
maintains a correspondent bank account at
a financial institution in the United States.
‘‘(3) The court may issue a pretrial restraining
order or take any other action necessary to ensure
that any bank account or other property held by the
defendant in the United States is available to satisfy
a judgment under this section.’’.
SEC. 106. LAUNDERING MONEY THROUGH A FOREIGN
BANK.
Section 1956(c)(6) of title 18, United States Code,
is amended to read as follows:
‘‘(6) the term ‘financial institution’ includes any
financial institution described in section 5312(a)(2)
of title 31, United States Code, or the regulations
promulgated thereunder, as well as any foreign
bank, as defined in paragraph (7) of section 1(b) of
the International Banking Act of 1978 (12 U.S.C.
3101(7)).’’.
SEC. 107. SPECIFIED UNLAWFUL ACTIVITY FOR MONEY
LAUNDERING.
(a) IN GENERAL.—Section 1956(c)(7) of title 18,
United States Code, is amended—
(1) in subparagraph (B)—
(A) so that clause (ii) reads as follows:
‘‘(ii) any act or acts constituting a
crime of violence, as defined in Section 16
of this title;’’; and
(B) by inserting after clause (iii) the fol-
lowing:
‘‘(iv) fraud or any scheme to defraud
committed against an individual or entity
(other than a foreign government or gov-
ernment entity) provided such conduct
would constitute a fraud or scheme to de-
fraud under the laws of the United States
or its constituent parts if committed in the
United States;
‘‘(v) fraud or any scheme to defraud
against a foreign government or foreign
government entity, if such conduct would
constitute a violation of this title if it were
committed in interstate commerce in the
United States and against the United
States Government or a United States gov-
ernmental entity;
‘‘(vi) bribery of a public official, or
the misappropriation, theft, or embezzle-
ment of public funds by or for the benefit
of a public official;
‘‘(vii) smuggling or export control vio-
lations involving munitions listed in the
United States Munitions List or tech-
nologies with military applications as de-
fined in the Commerce Control List of the
Export Administration Regulations; or
‘‘(viii) an offense with respect to
which the United States would be obligated
by a multilateral treaty either to extradite
the alleged offender or to submit the case
for prosecution, if the offender were found
within the territory of the United States.’’;
and
(2) in subparagraph (D)—
(A) by inserting ‘‘section 541 (relating to
goods falsely classified),’’ before ‘‘section 542’’;
(B) by inserting ‘‘section 922(1) (relating
to the unlawful importation of firearms), sec-
tion 924(n) (relating to firearms trafficking),’’
before ‘‘section 956’’;
(C) by inserting ‘‘section 1030 (relating to
computer fraud and abuse),’’ before ‘‘1032’’;
(D) by inserting ‘‘any felony violation of
the Foreign Agents Registration Act of 1938,
as amended,’’ before ‘‘or any felony violation of
the Foreign Corrupt Practices Act’’; and
(E) by striking ‘‘fraud in the sale of secu-
rities’’ and inserting ‘‘fraud in the purchase or
sale of securities’’.
SEC. 108. LAUNDERING THE PROCEEDS OF TERRORISM.
Section 1956(c)(7)(D) of title 18, United States
Code, is amended by inserting ‘‘or 2339B’’ after ‘‘2339A’’.
SEC. 109. VIOLATIONS OF REPORTING REQUIREMENTS FOR
NONFINANCIAL TRADES AND BUSINESS.
(a) CIVIL FORFEITURE.—Section 981(a)(1)(A) of
title 18, United States Code, is amended—
(1) by inserting ‘‘section 6050I of the Internal
Revenue Code of 1986, or’’ after ‘‘in violation of’’;
and
(2) by striking ‘‘or 5324(a)’’ and inserting ‘‘,
5324(a), or 5332’’.
(b) CRIMINAL FORFEITURE.—Section 982(a)(1) of
title 18, United States Code, is amended—
(1) by inserting ‘‘section 6050I of the Internal
Revenue Code of 1986, or’’ after ‘‘in violation of’’;
and
(2) by striking ‘‘or 5324’’ and inserting
‘‘, 5324, or 5332’’.
SEC. 110. PROCEEDS OF FOREIGN CRIMES.
Section 981(a)(1)(B) of title 18, United States Code,
is amended to read as follows:
‘‘(B) Any property, real or personal, within
the jurisdiction of the United States, consti-
tuting, derived from, or traceable to, any pro-
ceeds obtained directly or indirectly from an of-
fense against a foreign nation, or any property
used to facilitate such offense, if—
‘‘(i) the offense involves the manufac-
ture, importation, sale, or distribution of a
controlled substance (as such term is de-
fined for the purposes of the Controlled
Substances Act), or any other conduct de-
scribed in section 1956(c)(7)(B),
‘‘(ii) the offense would be punishable
within the jurisdiction of the foreign nation
by death or imprisonment for a term ex-
ceeding one year, and
‘‘(iii) the offense would be punishable
under the laws of the United States by im-
prisonment for a term exceeding one year
if the act or activity constituting the of-
fense had occurred within the jurisdiction
of the United States.’’.
SEC. 111. TRANSFER OF REPORTING REQUIREMENTS FROM
SECTION 6050I OF THE INTERNAL REVENUE
CODE OF 1986 TO TITLE 31, UNITED STATES
CODE.
(a) REENACTMENT OF SECTION 6050I.—Subchapter
II of chapter 53 of title 31, United States Code, is amend-
ed by inserting after section 5331 (as added by section
101 of this title) the following new section:
‘‘SEC. 5332. REPORTS RELATING TO COINS AND CURRENCY
RECEIVED 
IN 
NONFINANCIAL 
TRADE 
OR
BUSINESS.
‘‘(a) COIN
AND CURRENCY RECEIPTS
OF MORE
THAN $10,000.—Any person—
‘‘(1) who is engaged in a trade or business; and
‘‘(2) who, in the course of such trade or busi-
ness, receives more than $10,000 in coins or cur-
rency in 1 transaction (or 2 or more related trans-
actions),
shall file a report described in subsection (b) with respect
to such transaction (or related transactions) at such time
as the Secretary may by regulations prescribe.
‘‘(b) FORM AND MANNER OF REPORTS.—A report is
described in this subsection if such report—
‘‘(1) is in such form as the Secretary may pre-
scribe;
‘‘(2) contains—
‘‘(A) the name, address, and taxpayer
identification number of the person from whom
the coins or currency was received;
‘‘(B) the amount of coins or currency re-
ceived;
‘‘(C) the date and nature of the trans-
action; and
‘‘(D) such other information as the Sec-
retary may prescribe.
‘‘(c) EXCEPTIONS.—
‘‘(1) AMOUNTS RECEIVED BY FINANCIAL INSTI-
TUTIONS.—Subsection 
(a) 
shall 
not 
apply 
to
amounts received in a transaction reported under
section 5313 and regulations prescribed under such
section.
‘‘(2) TRANSACTIONS OCCURRING OUTSIDE THE
UNITED STATES.—Except to the extent provided in
regulations prescribed by the Secretary, subsection
(a) shall not apply to any transaction if the entire
transaction occurs outside the United States.
‘‘(d) CURRENCY INCLUDES FOREIGN CURRENCY AND
CERTAIN MONETARY INSTRUMENTS.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘currency’ includes—
‘‘(A) foreign currency; and
‘‘(B) to the extent provided in regulations
prescribed by the Secretary, any monetary in-
strument (whether or not in bearer form) with
a face amount of not more than $10,000.
‘‘(2) 
SCOPE
OF
APPLICATION.—Paragraph
(1)(B) shall not apply to any check drawn on the ac-
count of the writer in a financial institution referred
to in subparagraph (A), (B), (C), (D), (E), (F), (G),
(J), (K), (R), or (S) of section 5312(a)(2).
‘‘(e) COINS OR CURRENCY RECEIVED BY CRIMINAL
COURT CLERKS.—
‘‘(1) IN GENERAL.—Every clerk of a Federal or
State criminal court who receives more than $10,000
in coins or currency as bail for any individual
charged with a specified criminal offense shall file a
report described in paragraph (2) (at such time as
the Secretary may by regulations prescribe) with re-
spect to the receipt of such bail.
‘‘(2) REPORT.—A report is described in this
paragraph if such report—
‘‘(A) is in such form as the Secretary may
prescribe; and
‘‘(B) contains—
‘‘(i) the name, address, and taxpayer
identification number of—
‘‘(I) the individual charged with
the specified criminal offense; and
‘‘(II) each person posting the bail
(other than a person licensed as a bail
bondsman);
‘‘(ii) the amount of coins or currency
received;
‘‘(iii) the date the coins or currency
was received; and
‘‘(iv) such other information as the
Secretary may prescribe.
‘‘(3) SPECIFIED CRIMINAL OFFENSE.—For pur-
poses of this subsection, the term ‘specified criminal
offense’ means—
‘‘(A) any Federal criminal offense involv-
ing a controlled substance;
‘‘(B) racketeering (as defined in section
1951, 1952, or 1955 of title 18, United States
Code);
‘‘(C) money laundering (as defined in sec-
tion 1956, 1957 or 1960 of such title); and
‘‘(D) any State criminal offense substan-
tially similar to an offense described in sub-
paragraph (A), (B), or (C).
‘‘(4) INFORMATION
TO
FEDERAL
PROSECU-
TORS.—Each clerk required to include in a report
under paragraph (1) the information described in
paragraph (2)(B) with respect to an individual de-
scribed in paragraph (2)(B)(i)(I) shall furnish (at
such time as the Secretary may by regulations pre-
scribe) a written statement showing such informa-
tion to the United States Attorney for the jurisdic-
tion in which such individual resides and the juris-
diction in which the specified criminal offense oc-
curred.
‘‘(5) INFORMATION TO PAYORS OF BAIL.—Each
clerk required to file a report under paragraph (1)
shall furnish (at such time as the Secretary may by
regulations prescribe) to each person whose name is
required to be set forth in such report by reason of
paragraph 
(2)(B)(i)(II) 
a 
written 
statement
showing—
‘‘(A) the name and address of the clerk’s
office required to file the report; and
‘‘(B) the aggregate amount of coins and
currency described in paragraph (1) received by
such clerk.’’.
(b) 
PROHIBITION
ON
STRUCTURING
TRANS-
ACTIONS.—
(1) IN
GENERAL.—Section 5324 of title 31,
United States Code, is amended—
(A) by redesignating subsections (b) and
(c) as subsections (c) and (d), respectively; and
(B) by inserting after subsection (a) the
following new subsection:
‘‘(b) DOMESTIC
COIN
AND
CURRENCY
TRANS-
ACTIONS INVOLVING NONFINANCIAL TRADES OR BUSI-
NESSES.—No person shall for the purpose of evading the
report requirements of section 5332 or any regulation pre-
scribed under such section—
‘‘(1) cause or attempt to cause a nonfinancial
trade or business to fail to file a report required
under section 5332 or any regulation prescribed
under such section;
‘‘(2) cause or attempt to cause a nonfinancial
trade or business to file a report required under sec-
tion 5332 or any regulation prescribed under such
section that contains a material omission or
misstatement of fact; or
‘‘(3) structure or assist in structuring, or at-
tempt to structure or assist in structuring, any
transaction with 1 or more nonfinancial trades or
businesses.’’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
(A) The heading for subsection (a) of sec-
tion 5324 of title 31, United States Code, is
amended by inserting ‘‘INVOLVING FINANCIAL
INSTITUTIONS’’ after ‘‘TRANSACTIONS’’.
(B) Section 5317(c) of title 31, United
States Code, is amended by striking ‘‘5324(b)’’
and inserting ‘‘5324(c)’’.
(c) DEFINITION OF NONFINANCIAL TRADE OR BUSI-
NESS.—
(1) IN GENERAL.—Section 5312(a) of title 31,
United States Code, is amended—
(A) by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively; and
(B) by inserting after paragraph (3) the
following new paragraph:
‘‘(4) NONFINANCIAL
TRADE
OR
BUSINESS.—
The term ‘nonfinancial trade or business’ means any
trade or business other than a financial institution
that is subject to the reporting requirements of sec-
tion 5313 and regulations prescribed under such sec-
tion.’’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
(A) Section 5312(a)(3)(C) of title 31,
United States Code, is amended by striking
‘‘section 5316,’’ and inserting ‘‘sections 5332
and 5316,’’.
(B) Subsections (a) through (f) of section
5318 of title 31, United States Code, and sec-
tions 5321, 5326, and 5328 of such title are
each amended—
(i) by inserting ‘‘or nonfinancial trade
or business’’ after ‘‘financial institution’’
each place such term appears; and
(ii) by inserting ‘‘or nonfinancial
trades or businesses’’ after ‘‘financial insti-
tutions’’ each place such term appears.
(C) Section 981(a)(1)(A) of title 18,
United States Code, is amended by striking
‘‘5313(a) or 5324(a) of title 31,’’ and inserting
‘‘5313(a) or 5332 of title 31, or subsection (a)
or (b) of section 5324 of such title,’’.
(D) Section 982(a)(1) of title 18, United
States Code, is amended by inserting ‘‘5332,’’
after ‘‘5313(a),’’.
(d) REPEAL
OF DUPLICATE PROVISION.—Section
6050I of the Internal Revenue Code of 1986 is hereby re-
pealed.
(e) CLERICAL AMENDMENTS.—The tables of sections
for chapter 53 of title 31, United States Code, is amended
by inserting after the item relating to section 5331 (as
added by section 101 of this title) the following new item:
‘‘5332. Reports relating to coins and currency received in nonfinancial trade or
business.’’.
(2) INTERNAL REVENUE CODE OF 1986.—
(A) The table of sections for subpart B of
part III of subchapter A of chapter 61 of the
Internal Revenue Code of 1986 is amended by
striking the item relating to section 6050I.
(B)(i) Subsection (l) of section 6103 of
such Code is amended by striking paragraph
(15).
(ii) Subparagraph (A) of section
6103(p)(3) of such Code is amended by
striking ‘‘(15),’’.
(iii) Paragraph (4) of section 6103(p)
of such Code is amended by striking in the
material 
preceding 
subparagraph 
(A)
‘‘(12)’’ and all that follows through ‘‘(16)’’
and inserting ‘‘(12), or (16)’’.
(iv) 
Clause 
(ii) 
of 
section
6103(p)(4)(F) of such Code is amended by
striking ‘(14), or (15)’’ and inserting ‘‘or
(14)’’.
(C) Paragraph (2) of section 6721(e) of
such Code is amended—
(i) in subparagraph (A) by striking
‘‘6050I,’’ and by adding ‘‘or’’ at the end,
(ii) by striking ‘‘or’’ at the end of sub-
paragraph (B) and inserting ‘‘and’’, and
(iii) by striking subparagraph (C).
(D) 
Subparagraph 
(B) 
of 
section
6724(d)(1) of such Code is amended by striking
clause (iv) and by redesignating the succeeding
clauses accordingly.
(E) Paragraph (2) of section 6724(d) of
such Code is amended by striking subparagraph
(K) and by redesignating the succeeding sub-
paragraphs accordingly.
(F) Section 7203 of such Code is amended
by striking the last sentence.
(f) REGULATIONS; EFFECTIVE DATE.—
(1) REGULATIONS.—Regulations which the Sec-
retary of the Treasury determines are necessary to
implement this section shall be published in final
form before the end of the 6-month period beginning
on the date of the enactment of this Act.
(2) EFFECTIVE DATE.—The amendments made
by this section shall take effect immediately upon
enactment, except that the reporting obligations
mandated by Title 26, United States Code, Section
6050I shall not be repealed until the regulations
mandated by Title 31, United States Code, Section
5332 become effective.
SEC. 112. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC
TARGETING ORDERS AND CERTAIN RECORD
KEEPING REQUIREMENTS.
(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 ‘‘willfully violating a regu-
lation prescribed under section 21 of the Fed-
eral 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 RECORD KEEPING 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 requirements imposed by any
order issued under section 5326, or the record keep-
ing requirements imposed by any regulation pre-
scribed under section 21 of the Federal Deposit In-
surance Act or section 123 of Public Law 91–508—
’’; and
(3) in paragraphs (1) and (2), by inserting ‘‘,
to file a report required by any order issued under
section 5326, or to maintain a record required pur-
suant 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’’ each place that term ap-
pears.
(d) INCREASE IN CIVIL PENALTIES FOR VIOLATION
OF CERTAIN RECORD KEEPING REQUIREMENTS.—
(1) FEDERAL DEPOSIT INSURANCE ACT.—Sec-
tion 21(j)(1) of the Federal Deposit Insurance Act
(12 U.S.C. 1829b(j)(1)) is amended by striking
‘‘$10,000’’ and inserting ‘‘the greater of—
‘‘(A) the amount (not to exceed $100,000)
involved in the transaction (if any) with respect
to which the violation occurred; or
‘‘(B) $25,000’’.
(2) PUBLIC
LAW
91–508.—Section 125(a) of
Public Law 91–508 (12 U.S.C. 1955(a)) is amended
by striking ‘‘$10,000’’ and inserting ‘‘the greater
of—
‘‘(1) the amount (not to exceed $100,000) in-
volved in the transaction (if any) with respect to
which the violation occurred; or
‘‘(2) $25,000’’.
(e) CRIMINAL PENALTIES FOR VIOLATION OF CER-
TAIN RECORD KEEPING REQUIREMENTS.—
(1) SECTION 126.—Section 126 of Public Law
91–508 (12 U.S.C. 1956) is amended to read as fol-
lows:
‘‘SEC. 126. CRIMINAL PENALTY.
‘‘A person that willfully violates this chapter, section
21 of the Federal Deposit Insurance Act, or a regulation
prescribed under this chapter or that section 21, shall be
fined not more than $250,000, or imprisoned for not more
than 5 years, or both.’’.
(2) SECTION 127.—Section 127 of Public Law
91–508 (12 U.S.C. 1957) is amended to read as fol-
lows:
‘‘SEC. 127. ADDITIONAL CRIMINAL PENALTY IN CERTAIN
CASES.
‘‘A person that willfully violates this chapter, section
21 of the Federal Deposit Insurance Act, or a regulation
prescribed under this chapter or that section 21, while vio-
lating another law of the United States or as part of a
pattern of any illegal activity involving more than
$100,000 in a 12-month period, shall be fined not more
than $500,000, imprisoned for not more than 10 years,
or both.’’.
SEC. 113. EXCLUSION OF ALIENS INVOLVED IN MONEY
LAUNDERING.
(a) IN GENERAL.—Section 212 of the Immigration
and Nationality Act of 1952, as amended (8 U.S.C. 1182),
is amended in subsection (a)(2)—
(1) by redesignating subparagraphs (D), (E)
and (F) as subparagraphs (F), (G) and (I), respec-
tively; and
(2) by inserting after subparagraph (C) new
subparagraphs (D) and (E) to read as follows:
‘‘(D) MONEY LAUNDERING ACTIVITIES.—
Any alien who the consular officer or the Attor-
ney General knows or has reason to believe—
‘‘(i) is or has been engaged in activi-
ties which if engaged in within the United
States would constitute a violation of the
money laundering provisions section 1956
or 1957 of title 18, United States Code, or
has knowingly assisted, abetted, or con-
spired or colluded with others in any such
illicit activity; or
‘‘(ii) is the spouse, son or daughter of
an alien inadmissible under clause (i), has,
within the previous 5 years, obtained any
financial or other benefit from such illicit
activity of that alien, and knew or reason-
ably should have known that the financial
or other benefit was the product of such il-
licit activity, is inadmissible.
(b) 
CONFORMING
AMENDMENT.—Section
212(h)(1)(A)(i) of the Immigration and Nationality Act
of 1952, as amended (8 U.S.C. 1182), is amended by
striking ‘‘(D)(i) or (D)(ii)’’ and inserting ‘‘(E)(i) or
(E)(ii)’’.
SEC. 114. STANDING TO CONTEST FORFEITURE OF FUNDS
DEPOSITED INTO FOREIGN BANK THAT HAS A
CORRESPONDENT ACCOUNT IN THE UNITED
STATES.
Section 981 of title 18, United States Code, is
amended by adding the following after the last subsection:
‘‘(k) CORRESPONDENT BANK ACCOUNTS.—
‘‘(1) For the purpose of a forfeiture under this
section or under the Controlled Substances Act, if
funds are deposited into a dollar-denominated bank
account in a foreign financial institution, and that
foreign financial institution has a correspondent ac-
count with a financial institution in the United
States, the funds deposited into the foreign financial
institution (the respondent bank) shall be deemed to
have been deposited into the correspondent account
in the United States, and any restraining order, sei-
zure warrant, or arrest warrant in rem regarding
such funds may be served on the correspondent
bank, and funds in the correspondent account up to
the value of the funds deposited into the dollar-de-
nominated account in the foreign financial institu-
tion may be seized, arrested or restrained.
‘‘(2) In the circumstances where paragraph (1)
applies, if a forfeiture action is brought against the
funds that are seized, arrested, or restrained, it shall
not be necessary for the government to establish
that such funds are directly traceable to the funds
that were deposited into the respondent bank, nor
shall it be necessary for the Government to rely on
the application of Section 984 of this title.
‘‘(3) If a forfeiture action is instituted against
funds seized, arrested or restrained pursuant to
paragraph (1), the owner of the funds, as that term
is defined in paragraph (4), may contest the for-
feiture by filing a claim pursuant to section 983 of
this title.
‘‘(4) For purposes of this subsection—
‘‘(A) except as provided in (C), the ‘owner
of the funds’ is the ‘owner,’ as that term is de-
fined in Section 983(d)(6), whose funds were
deposited into the respondent bank;
‘‘(B) If the respondent bank received the
funds that are subject to forfeiture from an-
other respondent bank, the ‘‘owner of the
funds’’ is the ‘owner’ whose funds were depos-
ited into the first respondent bank, and each
intermediary financial institution shall be
deemed a respondent bank;
‘‘(C) the respondent bank may be consid-
ered the ‘owner of the funds’ only if—
‘‘(i) the basis for the forfeiture action
is wrongdoing committed by the respond-
ent bank, or
‘‘(ii) the respondent bank establishes,
by a preponderance of the evidence, that
prior to the seizure or arrest of the funds,
the respondent bank discharged all or part
its obligation to the owner of the funds, in
which case the respondent bank will be
deemed the owner of the funds to the ex-
tent that such obligation was satisfied.
‘‘(D) In cases where (C) applies, only the
respondent bank may be considered to be the
‘‘owner of the funds.’’
‘‘(5) ‘‘In this section, ‘correspondent account’
has the same meaning as the term ‘interbank ac-
count’ as defined in 18 U.S.C. ‘‘ 984(c)(2)(B).’’
SEC. 115. SUBPOENAS FOR RECORDS REGARDING FUNDS
IN CORRESPONDENT BANK ACCOUNTS.
(a) IN GENERAL.—Chapter 53 of title 31, United
States Code, is amended by inserting after section 5332
(as added by this title) the following new section:
‘‘SEC. 5333. SUBPOENAS FOR RECORDS.
‘‘(a) DESIGNATION BY FOREIGN FINANCIAL INSTI-
TUTION OF AGENT.—Any foreign financial institution that
has a correspondent bank account at a financial institu-
tion in the United States shall designate a person residing
in the United States as a person authorized to accept a
subpoena for bank records or other legal process served
on the foreign financial institution.
‘‘(b) MAINTENANCE OF RECORDS BY DOMESTIC FI-
NANCIAL INSTITUTION.—
‘‘(1) IN GENERAL.—Any domestic financial in-
stitution that maintains a correspondent bank ac-
count for a foreign financial institution shall main-
tain records regarding the names and addresses of
the owners of the foreign financial institution, and
the name and address of the person who may be
served with a subpoena for records regarding any
funds transferred to or from the correspondent ac-
count.
‘‘(2) PROVISION TO LAW ENFORCEMENT AGEN-
CY.—A domestic financial institution shall provide
names and addresses maintained under paragraph
(1) to a Government authority (as defined in section
1101(3) of the Right to Financial Privacy Act of
1978) within 7 days of the receipt of a request, in
writing, for such records.
‘‘(c) ADMINISTRATIVE SUBPOENA.—
‘‘(1) IN GENERAL.—The Attorney General may
issue an administrative subpoena for records relating
to the deposit of any funds into a dollar-denomi-
nated account in a foreign financial institution that
maintains a correspondent account at a domestic fi-
nancial institution.
‘‘(2) MANNER
OF
ISSUANCE.—Any subpoena
issued by the Attorney General under paragraph (1)
shall be issued in the manner described in section
3486 of this title, and may be served on the rep-
resentative designated by the foreign financial insti-
tution pursuant to subsection (a) to accept legal
process in the United States, or in a foreign country
pursuant to any mutual legal assistance treaty, mul-
tilateral agreement, or other request for inter-
national law enforcement assistance.
‘‘(d) CORRESPONDENT ACCOUNT DEFINED.—For
purposes of this section, the term ‘‘correspondent ac-
count’’ has the same meaning as the term ‘‘interbank ac-
count’’ as such term is defined in section 984(c)(2)(B) of
title 18, United States Code.’’.
(b) CLERICAL AMENDMENTS.—The table of sections
for chapter 53 of title 31, United States Code, is amended
by inserting after the item relating to section 5332 (as
added by this title) the following new item:
‘‘5333. Subpoenas for records.’’.
(c) EFFECTIVE DATE.—Section 5333(a) of title 31,
United States Code (as added by subsection (a) of this
section), shall apply after the end of the 30-day period
beginning on the date of the enactment of this Act.
(d) REQUESTS FOR RECORDS.—Section 3486(a)(1)
of title 18, United States Code, is amended by striking
‘‘, or (II) a Federal offense involving the sexual exploi-
tation or abuse of children,’’ and inserting ‘‘, (II) a Fed-
eral offense involving the sexual exploitation or abuse of
children, or (III) a money laundering offense in violation
of section 1956, 1957 or 1960 of this title,’’.
SEC. 116. FINANCIAL CRIMES ENFORCEMENT NETWORK.
(a) IN GENERAL.—Subchapter I of chapter 3 of title
31, United States Code, is amended—
(1) by redesignating section 310 as section 311;
and
(2) by inserting after section 309 the following
new section:
‘‘§ 310. Financial crimes enforcement network
‘‘(a) IN GENERAL.—The Financial Crimes Enforce-
ment Network established by order of the Secretary of the
Treasury (Treasury Order Numbered 105–08) on April
25, 1990, shall be a bureau in the Department of the
Treasury.
‘‘(b) DIRECTOR.—
‘‘(1) APPOINTMENT.—The head of the Finan-
cial Crimes Enforcement Network shall be the Di-
rector who shall be appointed by the President, by
and with the consent of the Senate, to a term of 4
years.
‘‘(2) DUTIES
AND
POWERS.—The duties and
powers of the Director are as follows:
‘‘(A) Advise and make recommendations
on matters relating to financial intelligence and
other financial criminal activity to the Under
Secretary for Enforcement.
‘‘(B) Maintain a government-wide data ac-
cess service, with access, in accordance with ap-
plicable legal requirements, to the following:
‘‘(i) Information collected by the De-
partment of the Treasury, including report
information filed under subchapters II and
III of chapter 53 of this title (such as re-
ports on cash transactions, foreign finan-
cial agency transactions and relationships,
foreign currency transactions, exporting
and importing monetary instruments, and
suspicious activities), chapter 2 of Public
Law 91–508, section 21 of the Federal De-
posit Insurance Act and section 6050I of
the Internal Revenue Code of 1986.
‘‘(ii) Information regarding national
and international currency flows.
‘‘(iii) Other records and data main-
tained by other Federal, State, local, and
foreign agencies, including financial and
other records developed in specific cases.
‘‘(iv) other privately and publicly
available information.
‘‘(C) Analyze and disseminate the available
data in accordance with applicable legal require-
ments and policies and guidelines established by
the Secretary of the Treasury and the Under
Secretary for Enforcement to—
‘‘(i) identify possible criminal targets
to appropriate Federal, State, local, and
foreign law enforcement agencies;
‘‘(ii) support ongoing criminal finan-
cial investigations and prosecutions and re-
lated proceedings, including civil and crimi-
nal tax and forfeiture proceedings;
‘‘(iii) identify possible instances of
noncompliance with subchapters II and III
of chapter 53 of this title, chapter 2 of
Public Law 91–508, and section 21 of the
Federal Deposit Insurance Act to Federal
agencies with statutory responsibility for
enforcing compliance with such provisions;
‘‘(iv) evaluate and recommend possible
uses of special currency reporting require-
ments under section 5326; and
‘‘(v) determine emerging trends and
methods in money laundering and other fi-
nancial crimes.
‘‘(D) Establish and maintain a financial
crimes communications center to furnish law
enforcement authorities with intelligence infor-
mation related to emerging or ongoing inves-
tigations and undercover operations.
‘‘(E) Furnish research, analytical, and in-
formational services to financial institutions,
appropriate Federal regulatory agencies with
regard to financial institutions, and appropriate
Federal, State, local, and foreign law enforce-
ment authorities, in accordance with policies
and guidelines established by the Secretary of
the Treasury or the Under Secretary of the
Treasury for Enforcement, in the interest of de-
tection, prevention, and prosecution of money
laundering and other financial crimes.
‘‘(F) Establish and maintain a special unit
dedicated to combatting the use of informal,
nonbank networks and payment and barter sys-
tem mechanisms that permit the transfer of
funds or the equivalent of funds without records
and without compliance with criminal and tax
laws.
‘‘(G) Such other duties and powers as the
Secretary of the Treasury may delegate or pre-
scribe.
‘‘(c) REQUIREMENTS RELATING TO MAINTENANCE
AND ‘USER FRIENDLY’ USE OF DATA BANKS.—The Sec-
retary of the Treasury shall establish and maintain oper-
ating procedures with respect to the government-wide data
access service and the financial crimes communications
center maintained by the Financial Crimes Enforcement
Network which provide—
‘‘(1) for the coordinated and efficient entry of
information into, and withdrawal of information
from, the data maintenance system maintained by
the Network, including—
‘‘(A) the submission of reports in elec-
tronic format, whenever possible;
‘‘(B) the cataloguing of information in a
manner that facilitates rapid retrieval by law
enforcement personnel of meaningful data in a
‘user friendly’ manner; and
‘‘(C) a procedure that provides for a
prompt initial review of suspicious activity re-
ports and other reports, or such other means as
the Secretary my provide, to identify informa-
tion that warrants immediate action;
‘‘(2) in accordance with section 552a of title 5
and the Right to Financial Privacy Act of 1978, ap-
propriate 
standards 
and 
guidelines 
for
determining—
‘‘(A) who is to be given access to the infor-
mation maintained by the Network;
‘‘(B) what limits are to be imposed on the
use of such information; and
‘‘(C) how information about activities or
relationships which involve or are closely associ-
ated with the exercise of constitutional rights is
to be screened out of the data maintenance sys-
tem; and
‘‘(3) the prompt verification of the accuracy
and completeness of information maintained by the
Network and the prompt deletion or correction of in-
accurate or incomplete information.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for the Financial Crimes
Enforcement Network such sums as may be necessary for
fiscal years 2002 and 2003.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter I of chapter 3 of title 31, United States
Code, is amended—
(1) by redesignating the item relating to section
310 as section 311; and
(2) by inserting after the item relating to sec-
tion 309 the following new item:
‘‘310. Financial crimes enforcement network.’’.
SEC. 117. CUSTOMS SERVICE BORDER SEARCHES.
Section 5317(b) of title 31, United States Code, is
amended to read as follows:
‘‘(b) SEARCHES AT BORDER.—
‘‘(1) IN GENERAL.—For purposes of ensuring
compliance with the laws enforced by the United
States Customs Service, a customs officer may stop
and search, at the border and without a search war-
rant, any vehicle, vessel, aircraft, or other convey-
ance, any envelope or other container, and any per-
son entering or departing from the United States.
‘‘(2) INTERNATIONAL SHIPMENTS OF MAIL.—
With respect to shipments of international mail
(within the meaning of section 3741 of title 39) that
are exported or imported by the United States Post-
al Service, the Customs Service and other appro-
priate Federal agencies shall, subject to paragraph
(3), apply the customs laws of the United States and
all other laws relating to the importation or expor-
tation of such shipments in the same manner to
both shipments by the Postal Service and similar
shipments by private companies.
‘‘(3) SAFEGUARDS.—No provision of this sub-
section shall be construed as authorizing any cus-
toms officer or any other person to read, copy, or
seize any correspondence unless—
‘‘(A) a search warrant has been issued
pursuant to Rule 41 of the Federal Rules of
Civil Procedure which permits such correspond-
ence to be read, copied, or seized; or
‘‘(B) the author or sender of the cor-
respondence has given written consent for any
such action.’’.
SEC. 118. PROHIBITION ON FALSE STATEMENTS TO FINAN-
CIAL INSTITUTIONS CONCERNING THE IDEN-
TITY OF A CUSTOMER.
(a) IN GENERAL.—Chapter 47 of title 18, United
States Code, is amended by inserting after section 1007
the following:
‘‘§ 1008. False statements concerning the identity of
customers of financial institutions
‘‘(a) IN
GENERAL.—Whoever knowingly in any
manner—
‘‘(1) falsifies, conceals, or covers up, or at-
tempts to falsify, conceal, or cover up, the identity
of any person in connection with any transaction
with a financial institution;
‘‘(2) makes, or attempts to make, any materi-
ally false, fraudulent, or fictitious statement or rep-
resentation of the identity of any person in connec-
tion with a transaction with a financial institution;
‘‘(3) makes or uses, or attempts to make or
use, any false writing or document knowing the
same to contain any materially false, fictitious, or
fraudulent statement or entry concerning the iden-
tity of any person in connection with a transaction
with a financial institution; or
‘‘(4) uses or presents, or attempts to use or
present, in connection with a transaction with a fi-
nancial institution, an identification document or
means of identification the possession of which is a
violation of section 1028;
shall be fined under this title, imprisoned not more than
5 years, or both.
‘‘(b) DEFINITIONS.—In this section, the following
definitions shall apply:
‘‘(1) FINANCIAL INSTITUTION.—The term ‘fi-
nancial institution’—
‘‘(A) has the same meaning as in section
20; and
‘‘(B) in addition, has the same meaning as
in section 5312(a)(2) of title 31, United States
Code.
‘‘(2) IDENTIFICATION
DOCUMENT.—The term
‘identification document’ has the same meaning as
in section 1028(d).
‘‘(3) MEANS
OF
IDENTIFICATION.—The term
‘means of identification’ has the same meaning as in
section 1028(d).’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) TITLE 18, UNITED STATES CODE.—Section
1956(c)(7)(D) of title 18, United States Code, is
amended by striking ‘‘1014 (relating to fraudulent
loan’’ and inserting ‘‘section 1008 (relating to false
statements concerning the identity of customers of
financial institutions), section 1014 (relating to
fraudulent loan’’.
(2) TABLE OF SECTIONS.—The table of sections
for chapter 47 of title 18, United States Code, is
amended by inserting after the item relating to sec-
tion 1007 the following:
‘‘1008. False statements concerning the identity of customers of financial insti-
tutions.’’.
SEC. 119. VERIFICATION OF IDENTIFICATION.
Section 5318 of title 31, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(i) 
IDENTIFICATION
AND
VERIFICATION
OF
ACCOUNTHOLDERS.—The Secretary of the Treasury shall
prescribe regulations requiring financial institutions to ob-
tain and maintain the names, addresses, and other forms
of identification of all persons who open or maintain an
account at the institution, including any beneficial owner
of any such account. The regulations shall include a re-
quirement that financial institutions shall verify the iden-
tity of all such persons and maintain records of the infor-
mation used to verify such identification.’’.
TITLE II—PUBLIC-PRIVATE
COOPERATION
SEC. 201. ESTABLISHMENT OF HIGHLY SECURE WEBSITE.
(a) IN GENERAL.—The Secretary of the Treasury
shall establish a highly secure website in the Financial
Crimes Enforcement Network that—
(1) allows financial institutions to file sus-
picious activities reports through the Internet; and
(2) provides financial institutions with alerts
and other information regarding suspicious activities
that warrant immediate and enhanced scrutiny.
(b) EXPEDITED DEVELOPMENT.—The Secretary of
the Treasury shall take such action as may be necessary
to ensure that the website required under subsection (a)
is fully operational before the end of the 6-month period
beginning on the date of the enactment of this Act.
SEC. 202. REPORT ON IMPROVEMENTS IN DATA ACCESS.
Before the end of the 4-month period beginning on
the date of the enactment of this Act, the Secretary of
the Treasury shall report to the Congress on the progress
made since such date of enactment in meeting the require-
ments of section 310(c) of title 31, United States Code
(as added by this Act) to maintain the data collection and
analysis system of the Financial Crimes Enforcement Net-
work in a manner that allows the submission of reports
in electronic format and the rapid retrieval by law enforce-
ment personnel of meaningful data in a ‘user friendly’
manner.
SEC. 203. REPORTS TO THE FINANCIAL SERVICES INDUS-
TRY ON SUSPICIOUS FINANCIAL ACTIVITIES.
At least once each calendar quarter, the Secretary of
the Treasury shall—
(1) publish a report containing a detailed anal-
ysis identifying patterns of suspicious activity and
other investigative insights derived from suspicious
activity reports and investigations conducted by Fed-
eral, to the extent appropriate; and
(2) distribute such report to financial institu-
tions (as defined in section 5312 of title 31, United
States Code).
SEC. 204. EFFICIENT USE OF CURRENCY TRANSACTION RE-
PORT SYSTEM.
(a) FINDINGS.—The Congress finds the following:
(1) The Congress established the currency
transaction reporting requirements in 1970 because
the Congress found then that such reports have a
high degree of usefulness in criminal, tax, and regu-
latory investigations and proceedings and the useful-
ness of such reports has only increased in the years
since the requirements were established.
(2) In 1994, in response to reports and testi-
mony that excess amounts of currency transaction
reports were interfering with effective law enforce-
ment, the Congress reformed the currency trans-
action report exemption requirements to provide—
(A) mandatory exemptions for certain re-
ports that had little usefulness for law enforce-
ment, such as cash transfers between depository
institutions and cash deposits from government
agencies; and
(B) discretionary authority for the Sec-
retary of the Treasury to provide exemptions,
subject to criteria and guidelines established by
the Secretary, for financial institutions with re-
gard to regular business customers that main-
tain accounts at an institution into which fre-
quent cash deposits are made.
(3) Today there is evidence that some financial
institutions are not utilizing the exemption system,
or are filing reports even if there is an exemption in
effect, with the result that the volume of currency
transaction reports is once again interfering with ef-
fective law enforcement.
(b) STUDY AND REPORT.—
(1) STUDY REQUIRED.—The Secretary of the
Treasury shall conduct a study of—
(A) the possible expansion of the statutory
exemption system in effect under 5313 of title
31, United States Code;
(B) methods for improving financial insti-
tution utilization of the statutory exemption
provisions as a way of reducing the submission
of currency transaction reports that have little
or no value for law enforcement purposes, in-
cluding improvements in the systems in effect
at financial institutions for regular review of
the exemption procedures used at the institu-
tion and the training of personnel in its effec-
tive use; and
(C) the feasibility and advisability of estab-
lishing sanctions for financial institutions that
routinely engage in filing currency transaction
reports that have little or no value for law en-
forcement purposes without regard to the statu-
tory exemptions available with respect to such
reports.
(2) REPORT REQUIRED.—The Secretary of the
Treasury shall submit a report to the Congress be-
fore the end of the 90-day period beginning on the
date of the enactment of this Act containing the
findings and conclusions of the Secretary with re-
gard to the study required under subsection (a) and
such recommendations for legislative or administra-
tive action as the Secretary determines to be appro-
priate.
SEC. 205. PUBLIC-PRIVATE TASK FORCE ON TERRORIST FI-
NANCING ISSUES.
Section 1564 of the Annunzio-Wylie Anti-Money
Laundering Act (31 U.S.C. 5313 note) is amended by
adding at the end the following new subsection:
‘‘(d) TERRORIST FINANCING ISSUES.—The Secretary
of the Treasury shall provide, either within the Bank Se-
crecy Act Advisory Group, or as a subcommittee or other
adjunct of the Advisory Group, for a task force of rep-
resentatives from agencies and officers represented on the
Advisory Group and representatives of financial institu-
tions, private organizations that represent the financial
services industry, and other interested parties to focus
on—
‘‘(1) issues specifically related to the finances of
terrorist groups, the means terrorist groups use to
transfer funds around the world and within the
United States, and the extent to which financial in-
stitutions in the United States are unwittingly in-
volved in such finances and the extent to which such
institutions are at risk as a result; and
‘‘(2) means of facilitating the identification of
accounts and transactions involving terrorist groups
and facilitating the exchange of information con-
cerning such accounts and transactions between fi-
nancial institutions and law enforcement organiza-
tions.’’.
SEC. 206. DEADLINE FOR SUSPICIOUS ACTIVITY REPORT-
ING REQUIREMENTS FOR REGISTERED BRO-
KERS AND DEALERS.
The Secretary of the Treasury shall publish regula-
tions in the Federal Register before January 1, 2002, re-
quiring brokers and dealers registered with the Securities
and Exchange Commission under the Securities Exchange
Act of 1934 to submit suspicious activity reports under
section 5318(g) of title 31, United States Code.
SEC. 207. 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.—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 fail-
ure 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 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 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
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 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
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. 208. 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 subsection:
‘‘(w) 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.
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘insured depository institution’ in-
cludes any uninsured branch or agency of a foreign
bank.’’.
TITLE III—COMBATTING INTER-
NATIONAL 
MONEY 
LAUN-
DERING
SEC. 301. 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
section 5318 the following new section:
‘‘§ 5318A. Special measures for jurisdictions, financial
institutions, or international transactions
of primary money laundering concern
‘‘(a) 
INTERNATIONAL
COUNTER-MONEY
LAUN-
DERING REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary may require
domestic financial institutions and domestic financial
agencies to take 1 or more of the special measures
described in subsection (b) if the Secretary finds
that reasonable grounds exist for concluding that 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
is of primary money laundering concern, in accord-
ance with subsection (d).
‘‘(2) FORM
OF
REQUIREMENT.—The special
measures described in subsection (b) may be im-
posed by regulation, order, or otherwise as permitted
by law, and in such sequence or combination, as the
Secretary 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
Federal Reserve System and, in the Secretary’s
sole discretion, such other agencies and inter-
ested parties as the Secretary may find to be
appropriate.
‘‘(B) FACTORS.—The Secretary also shall
consider—
‘‘(i) whether similar action has been
or is being taken by other nations or multi-
lateral groups;
‘‘(ii) whether the imposition of any
particular special measure would create a
significant competitive disadvantage, in-
cluding any undue cost or burden associ-
ated with compliance, for financial institu-
tions 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 legiti-
mate business activities involving the par-
ticular jurisdiction, institution, or class of
transactions.
‘‘(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
CERTAIN 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 in-
stitutions operating outside the United States,
or 1 or more classes of transactions within, or
involving, a jurisdiction outside the United
States, if the Secretary finds any such jurisdic-
tion, institution, 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 de-
termine, 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;
‘‘(iii) information concerning the bene-
ficial ownership of the funds involved in
any transaction, in accordance with steps
the Secretary has determined to be reason-
able and practicable to obtain and retain
such information; and
‘‘(iv) a description of any transaction.
‘‘(2) INFORMATION RELATING TO BENEFICIAL
OWNERSHIP.—In addition to any other requirement
under any other law, the Secretary may require any
domestic financial institution or domestic financial
agency to take such steps as the Secretary may de-
termine to be reasonable and practicable to obtain
and retain information concerning the beneficial
ownership of any account opened or maintained in
the United States by a foreign person (other than a
foreign entity whose shares are subject to public re-
porting requirements or are listed and traded on a
regulated exchange or trading market), or a rep-
resentative of such a foreign person, that involves 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,
if the Secretary finds any such jurisdiction, institu-
tion, or transaction to be of primary money laun-
dering concern.
‘‘(3) INFORMATION RELATING TO CERTAIN PAY-
ABLE-THROUGH ACCOUNTS.—If the Secretary finds
a jurisdiction 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
to be of primary money laundering concern, the Sec-
retary may require any domestic financial institution
or domestic financial agency that opens or maintains
a payable-through account in the United States for
a foreign financial institution involving any such ju-
risdiction or any such financial institution operating
outside the United States, or a payable-through ac-
count through which any such transaction may be
conducted, as a condition of opening or maintaining
such account, to—
‘‘(A) identify each customer (and rep-
resentative of such customer) of such financial
institution who is permitted to use, or whose
transactions are routed through, such payable-
through 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 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
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 may require any domestic financial institution
or domestic financial agency that opens or maintains
a correspondent account in the United States for a
foreign financial institution involving any such juris-
diction or any such financial institution operating
outside the United States, or a correspondent ac-
count through which any such transaction may be
conducted, as a condition of opening or maintaining
such account, to—
‘‘(A) identify each customer (and rep-
resentative of such customer) of any such finan-
cial institution who is permitted to use, or
whose transactions 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 OPEN-
ING OR MAINTAINING CERTAIN CORRESPONDENT OR
PAYABLE-THROUGH
ACCOUNTS.—If the Secretary
finds a jurisdiction 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 to be of primary money laundering concern,
the Secretary, in consultation with the Secretary of
State, the Attorney General, and the Chairman of
the Board of Governors of the Federal Reserve Sys-
tem, may prohibit, 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 fi-
nancial agency for or on behalf of a foreign banking
institution if such correspondent account or payable-
through account involves any such jurisdiction or in-
stitution, or if any such transaction may be con-
ducted through such correspondent account or pay-
able-through account.
‘‘(c) PROHIBITION
ON
UNITED
STATES
COR-
RESPONDENT
ACCOUNTS
WITH
FOREIGN
SHELL
BANKS.—
‘‘(1) IN
GENERAL.—A depository institution
shall not establish, maintain, administer, or manage
a correspondent account in the United States for, or
on behalf of, a foreign bank that does not have a
physical presence in any country.
‘‘(2) PREVENTION
OF
INDIRECT
SERVICE
TO
FOREIGN
SHELL
BANKS.—A depository institution
shall take reasonable steps to ensure that any cor-
respondent account established, maintained, admin-
istered, or managed by that institution in the United
States for a foreign bank is not being used by that
foreign bank to indirectly provide banking services to
another foreign bank that does not have a physical
presence in any country.
‘‘(3) EXCEPTION.—Paragraphs (1) and (2)
shall not be construed as prohibiting a depository in-
stitution from providing a correspondent account to
a foreign bank, if the foreign bank—
‘‘(A) is an affiliate of a depository institu-
tion, credit union, financial services company,
or other foreign bank that maintains a physical
presence in the United States or a foreign coun-
try, as applicable; and
‘‘(B) is subject to supervision by a banking
authority in the country regulating the affili-
ated depository institution, credit union, finan-
cial services company, or foreign bank, de-
scribed in subparagraph (A), as applicable.
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) AFFILIATE.—The term ‘affiliate’
means a foreign bank that is controlled by or
is under common control with a depository in-
stitution, credit union, financial services com-
pany, or foreign bank.
‘‘(B) DEPOSITORY INSTITUTION.—The ‘de-
pository institution’—
‘‘(i) has the meaning given such term
in section 3 of the Federal Deposit Insur-
ance Act; and
‘‘(ii) includes a credit union.
‘‘(C) PHYSICAL
PRESENCE.—The term
‘physical presence’ means a place of business
that—
‘‘(i) is maintained by a foreign bank;
‘‘(ii) is located at a fixed address
(other than solely an electronic address) in
a country in which the foreign bank is au-
thorized to conduct banking activities, at
which location the foreign bank—
‘‘(I) employs 1 or more individ-
uals on a full-time basis; and
‘‘(II) maintains operating records
related to its banking activities; and
‘‘(iii) is subject to inspection by the
banking authority which licensed the for-
eign bank to conduct banking activities.
‘‘(d) CONSULTATIONS
AND INFORMATION TO BE
CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS,
OR TRANSACTIONS TO BE OF PRIMARY MONEY LAUN-
DERING 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 in-
volving, a jurisdiction outside the United States is of
primary money laundering concern so as to author-
ize the Secretary to invoke 1 or more of the special
measures of subsection (b), the Secretary shall con-
sult with the Secretary of State, the Attorney Gen-
eral, the Secretary 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 juris-
diction’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
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.
‘‘(e) NOTIFICATION
OF SPECIAL MEASURES IN-
VOKED 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 Com-
mittee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban
Affairs of the Senate of any such action.
‘‘(f) 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
foreign financial institution.
‘‘(iii) PAYABLE-THROUGH ACCOUNT.—
The term ‘payable-through account’ means
an account, including a transaction ac-
count (as defined in section 19(b)(1)(C) of
the Federal Reserve Act), opened at a de-
pository institution by a foreign financial
institution by means of which the foreign
financial institution permits its customers
to engage, either directly or through a sub-
account, in banking activities usual in con-
nection with the business of banking in the
United States.
‘‘(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.’’.
SEC. 302. INTERNATIONAL COOPERATION IN INVESTIGA-
TIONS OF MONEY LAUNDERING, FINANCIAL
CRIMES, AND THE FINANCES OF TERRORIST
GROUPS.
(a) NEGOTIATIONS.—
(1) IN GENERAL.—In addition to the require-
ments of section 4702 of the Anti-Drug Abuse Act
of 1988, the Secretary of the Treasury (hereinafter
in this section referred to as the ‘‘Secretary’’), in
consultation with the Attorney General, the Sec-
retary of State, and the Board of Governors of the
Federal Reserve System, shall enter into negotia-
tions with the appropriate financial supervisory
agencies and other officials of any foreign country
the financial institutions of which do business with
United States financial institutions or which may be
utilized by any foreign terrorist organization (as des-
ignated under section 219 of the Immigration and
Nationality Act), any person who is a member or
representative of any such organization, or any per-
son engaged in money laundering or financial or
other crimes.
(2) PURPOSES OF NEGOTIATIONS.—In carrying
out negotiations under paragraph (1), the Secretary
shall seek to enter into and further cooperative ef-
forts, voluntary information exchanges, the use of
letters rogatory, mutual legal assistance treaties,
and international agreements to—
(A) ensure that foreign banks and other fi-
nancial institutions maintain adequate records
of—
(i) large United States currency
transactions; and
(ii) transaction and account informa-
tion relating to any foreign terrorist orga-
nization (as designated under section 219
of the Immigration and Nationality Act),
any person who is a member or representa-
tive of any such organization, or any per-
son engaged in money laundering or finan-
cial or other crimes; and
(B) establish a mechanism whereby such records
may be made available to United States law enforce-
ment officials and domestic financial institution su-
pervisors, when appropriate.
(b) REPORTS.—
(1) INTERIM REPORT.—Not later than 1 year
after the date of enactment of this Act, the Sec-
retary shall submit an interim report to the Con-
gress on progress in the negotiations under sub-
section (a).
(2) FINAL REPORT.—Not later than 2 years
after the date of the enactment of this Act, the Sec-
retary shall submit a final report to the President
and the Congress, on the outcome of negotiations
under subsection (a).
(3) 
IDENTIFICATION
OF
CERTAIN
COUN-
TRIES.—In the report submitted under paragraph
(2), the Secretary shall identify countries—
(A) with respect to which the Secretary de-
termines there is evidence that the financial in-
stitutions in such countries are being utilized,
knowingly or unwittingly, by any foreign ter-
rorist organization (as designated under section
219 of the Immigration and Nationality Act),
any person who is a member or representative
of any such organization, or any person en-
gaged in money laundering or financial or other
crimes; and
(B) which have not reached agreement
with United States authorities to meet the ob-
jectives of subparagraphs (A) and (B) of sub-
section (a)(2).
(c) AUTHORITY FOR OTHER ACTION.—
(1) IN GENERAL.—If the President determines
that—
(A) a foreign country is described in
subparagraphs (A) and (B) of subsection
(b)(3); and
(B) such country is not negotiating in
good faith to reach an agreement described
in subsection (a)(2),
the President may impose appropriate penalties and
sanctions on such country and, except as provided in
paragraph (3), financial institutions of such country.
(2) PENALTIES
AND
SANCTIONS.—The pen-
alties and sanctions which may be imposed by the
President under paragraph (1) include temporarily
or permanently—
(A) prohibiting such persons, institutions,
or other entities as the President may designate
in any such country from participating in any
United States dollar clearing or wire transfer
system; and
(B) prohibiting such persons, institutions
or entities as the President may designate in
such countries from maintaining an account
with any bank or other financial institution
chartered under the laws of the United States
or any State.
(3) EXEMPTION FOR CERTAIN FINANCIAL IN-
STITUTIONS.—Financial institutions that maintain
adequate records shall be exempt from such pen-
alties and sanctions.
SEC. 303. PROHIBITION ON ACCEPTANCE OF ANY BANK IN-
STRUMENT FOR UNLAWFUL INTERNET GAM-
BLING.
(a) IN GENERAL.—No person engaged in the busi-
ness of betting or wagering may knowingly accept, in con-
nection with the participation of another person in unlaw-
ful Internet gambling—
(1) credit, or the proceeds of credit, extended to
or on behalf of such other person (including credit
extended through the use of a credit card);
(2) an electronic fund transfer or funds trans-
mitted by or through a money transmitting business,
or the proceeds of an electronic fund transfer or
money transmitting service, from or on behalf of the
other person;
(3) any check, draft, or similar instrument
which is drawn by or on behalf of the other person
and is drawn on or payable at or through any finan-
cial institution; or
(4) the proceeds of any other form of financial
transaction as the Secretary may prescribe by regu-
lation which involves a financial institution as a
payor or financial intermediary on behalf of or for
the benefit of the other person.
(b) DEFINITIONS.—For purposes of this Act, the fol-
lowing definitions shall apply:
(1) BETS
OR
WAGERS.—The term ‘‘bets or
wagers’’—
(A) means the staking or risking by any
person of something of value upon the outcome
of a contest of others, a sporting event, or a
game subject to chance, upon an agreement or
understanding that the person or another per-
son will receive something of greater value than
the amount staked or risked in the event of a
certain outcome;
(B) includes the purchase of a chance or
opportunity to win a lottery or other prize
(which opportunity to win is predominantly sub-
ject to chance);
(C) includes any scheme of a type de-
scribed in section 3702 of title 28;
(D) includes any instructions or informa-
tion pertaining to the establishment or move-
ment of funds in an account by the bettor or
customer with the business of betting or wager-
ing; and
(E) does not include—
(i) any bona fide business transaction
governed by the securities laws (as that
term is defined in section 3(a)(47) of the
Securities Exchange Act of 1934) for the
purchase or sale at a future date of securi-
ties (as that term is defined in section
3(a)(10) of such Act);
(ii) any transaction on or subject to
the rules of a contract market designated
pursuant to section 5 of the Commodity
Exchange Act;
(iii) any over-the-counter derivative
instrument;
(iv) any contract of indemnity or
guarantee;
(v) any contract for life, health, or ac-
cident insurance;
‘‘(vi) any deposit or other transaction
with a depository institution (as defined in
section 3(c) of the Federal Deposit Insur-
ance Act)
(vii) any participation in a simulation
sports game or an educational game or
contest that—
(I) is not dependent solely on the
outcome of any single sporting event
or nonparticipant’s singular individual
performance in any single sporting
event;
(II) has an outcome that reflects
the relative knowledge and skill of the
participants with such outcome deter-
mined predominantly by accumulated
statistical results of sporting events;
and
(III) offers a prize or award to a
participant that is established in ad-
vance of the game or contest and is
not determined by the number of par-
ticipants or the amount of any fees
paid by those participants.
(2) BUSINESS
OF
BETTING
OR
WAGERING.—
The term ‘‘business of betting or wagering’’ does not
include, other than for purposes of subsection (e),
any creditor, credit card issuer, insured depository
institution, financial institution, operator of a ter-
minal at which an electronic fund transfer may be
initiated, money transmitting business, or inter-
national, national, regional, or local network utilized
to effect a credit transaction, electronic fund trans-
fer, stored value product transaction, or money
transmitting service, or any participant in such net-
work.
(3) INTERNET.—The term ‘‘Internet’’ means
the international computer network of interoperable
packet switched data networks.
(4) UNLAWFUL
INTERNET
GAMBLING.—The
term ‘‘unlawful Internet gambling’’ means to place,
receive, or otherwise transmit a bet or wager by any
means which involves the use, at least in part, of the
Internet where such bet or wager is unlawful under
any applicable Federal or State law in the State in
which the bet or wager is initiated, received, or oth-
erwise made.
(5) OTHER TERMS.—
(A) CREDIT; 
CREDITOR; 
AND
CREDIT
CARD.—The terms ‘‘credit’’, ‘‘creditor’’, and
‘‘credit card’’ have the meanings given such
terms in section 103 of the Truth in Lending
Act.
(B) ELECTRONIC FUND TRANSFER.—The
term ‘‘electronic fund transfer’’—
(i) has the meaning given such term
in section 903 of the Electronic Fund
Transfer Act; and
(ii) includes any fund transfer covered
by Article 4A of the Uniform Commercial
Code, as in effect in any State.
(C) FINANCIAL
INSTITUTION.—The term
‘‘financial institution’’ has the meaning given
such term in section 903 of the Electronic
Fund Transfer Act.
(D) MONEY TRANSMITTING BUSINESS AND
MONEY
TRANSMITTING
SERVICE.—The terms
‘‘money transmitting business’’ and ‘‘money
transmitting service’’ have the meanings given
such terms in section 5330(d) of title 31,
United States Code.
(E) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the Treasury.
(c) CIVIL REMEDIES.—
(1) JURISDICTION.—The district courts of the
United States shall have original and exclusive juris-
diction to prevent and restrain violations of this sec-
tion by issuing appropriate orders in accordance
with this section, regardless of whether a prosecu-
tion has been initiated under this section.
(2) PROCEEDINGS.—
(A) INSTITUTION
BY
FEDERAL
GOVERN-
MENT.—
(i) IN GENERAL.—The United States,
acting through the Attorney General, may
institute proceedings under this subsection
to prevent or restrain a violation of this
section.
(ii) RELIEF.—Upon application of the
United States under this subparagraph,
the district court may enter a preliminary
injunction or an injunction against any
person to prevent or restrain a violation of
this section, in accordance with Rule 65 of
the Federal Rules of Civil Procedure.
(B) INSTITUTION
BY
STATE
ATTORNEY
GENERAL.—
(i) IN GENERAL.—The attorney gen-
eral of a State (or other appropriate State
official) in which a violation of this section
allegedly has occurred or will occur may in-
stitute proceedings under this subsection to
prevent or restrain the violation.
(ii) RELIEF.—Upon application of the
attorney general (or other appropriate
State official) of an affected State under
this subparagraph, the district court may
enter a preliminary injunction or an in-
junction against any person to prevent or
restrain a violation of this section, in ac-
cordance with Rule 65 of the Federal
Rules of Civil Procedure.
(C) INDIAN LANDS.—
(i) IN
GENERAL.—Notwithstanding
subparagraphs (A) and (B), for a violation
that is alleged to have occurred, or may
occur, on Indian lands (as that term is de-
fined in section 4 of the Indian Gaming
Regulatory Act)—
(I) the United States shall have
the enforcement authority provided
under subparagraph (A); and
(II) the enforcement authorities
specified in an applicable Tribal-State
compact negotiated under section 11
of the Indian Gaming Regulatory Act
shall be carried out in accordance
with that compact.
(ii) RULE
OF
CONSTRUCTION.—No
provision of this section shall be construed
as altering, superseding, or otherwise af-
fecting the application of the Indian Gam-
ing Regulatory Act.
(D) BANKING REGULATORS.—Before initi-
ating any proceeding under this paragraph with
respect to a violation or potential violation of
subsection (e) by an insured depository institu-
tion (as defined in section 3 of the Federal De-
posit Insurance Act), the Attorney General of
the United States or an attorney general of a
State (or other appropriate State official)
shall—
(i) notify the appropriate Federal
banking agency (as defined in such sec-
tion) of such violation or potential viola-
tion; and
(ii) allow such agency a reasonable
time to issue an order to such insured de-
pository institution under section 8(x) of
the Federal Deposit Insurance Act.
(3) EXPEDITED PROCEEDINGS.—
(A) IN GENERAL.—In addition to any pro-
ceeding under paragraph (2), a district court
may, in exigent circumstances, enter a tem-
porary restraining order against a person al-
leged to be in violation of this section upon ap-
plication of the United States under paragraph
(2)(A), or the attorney general (or other appro-
priate State official) of an affected State under
paragraph (2)(B), in accordance with Rule
65(b) of the Federal Rules of Civil Procedure.
(d) CRIMINAL PENALTY.—
(1) IN GENERAL.—Whoever violates this section
shall be fined under title 18, United States Code, or
imprisoned for not more than 5 years, or both.
(2) PERMANENT
INJUNCTION.—Upon convic-
tion of a person under this subsection, the court
may enter a permanent injunction enjoining such
person from placing, receiving, or otherwise making
bets or wagers or sending, receiving, or inviting in-
formation assisting in the placing of bets or wagers.
(e) 
CIRCUMVENTIONS
PROHIBITED.—Notwith-
standing subsection (b)(2), a creditor, credit card issuer,
financial institution, operator of a terminal at which an
electronic fund transfer may be initiated, money transmit-
ting business, or international, national, regional, or local
network utilized to effect a credit transaction, electronic
fund transfer, or money transmitting service, or any par-
ticipant in such network, may be liable under this section
if such creditor, issuer, institution, operator, business, net-
work, or participant—
(1) operates, manages, supervises, or directs an
Internet website at which unlawful bets or wagers
may be placed, received, or otherwise made or at
which unlawful bets or wagers are offered to be
placed, received, or otherwise made; or
(2) owns or controls, or is owned or controlled
by, any person who operates, manages, supervises,
or directs an Internet website at which unlawful bets
or wagers may be placed, received, or otherwise
made or at which unlawful bets or wagers are of-
fered to be placed, received, or otherwise made.
(f) ENFORCEMENT ACTIONS.—Section 8 of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1818) is amended
by adding at the end the following new subsection:
‘‘(x) DEPOSITORY INSTITUTION INVOLVEMENT
IN
INTERNET GAMBLING.—If any appropriate Federal bank-
ing agency determines that any insured depository institu-
tion is engaged in any of the following activities, the agen-
cy may issue an order to such institution prohibiting such
institution from continuing to engage in any of the fol-
lowing activities:
‘‘(1) Extending credit, or facilitating an exten-
sion of credit, electronic fund transfer, or money
transmitting service with the actual knowledge that
any person is violating section 3(a) of the Unlawful
Internet Gambling Funding Prohibition Act in con-
nection with such extension of credit, electronic fund
transfer, or money transmitting service.
‘‘(2) Paying, transferring, or collecting on any
check, draft, or other instrument drawn on any de-
pository institution with the actual knowledge that
any person is violating section 3(a) of the Unlawful
Internet Gambling Funding Prohibition Act in con-
nection with such check, draft, or other instru-
ment.’’.
SEC. 304. INTERNET GAMBLING IN OR THROUGH FOREIGN
JURISDICTIONS.
(a) IN GENERAL.—In deliberations between the
United States Government and any other country on
money laundering, corruption, and crime issues, the
United States Government should—
(1) encourage cooperation by foreign govern-
ments and relevant international fora in identifying
whether Internet gambling operations are being used
for money laundering, corruption, or other crimes;
(2) advance policies that promote the coopera-
tion of foreign governments, through information
sharing or other measures, in the enforcement of
this Act; and
(3) encourage the Financial Action Task Force
on Money Laundering, in its annual report on
money laundering typologies, to study the extent to
which Internet gambling operations are being used
for money laundering.
(b) REPORT
REQUIRED.—The Secretary of the
Treasury shall submit an annual report to the Congress
on the deliberations between the United States and other
countries on issues relating to Internet gambling.
TITLE IV—CURRENCY
PROTECTION
SEC. 401. COUNTERFEITING DOMESTIC CURRENCY AND OB-
LIGATIONS.
(a) COUNTERFEIT ACTS COMMITTED OUTSIDE THE
UNITED STATES.—Section 470 of title 18, United States
Code, is amended—
(1) in paragraph (2), by inserting ‘‘analog, dig-
ital, or electronic image,’’ after ‘‘plate, stone,’’; and
(2) by striking ‘‘shall be fined under this title,
imprisoned not more than 20 years, or both’’ and in-
serting ‘‘shall be punished as is provided for the like
offense within the United States’’.
(b) OBLIGATIONS OR SECURITIES OF THE UNITED
STATES.—Section 471 of title 18, United States Code, is
amended by striking ‘‘fifteen years’’ and inserting ‘‘20
years’’.
(c) UTTERING COUNTERFEIT OBLIGATIONS OR SE-
CURITIES.—Section 472 of title 18, United States Code,
is amended by striking ‘‘fifteen years’’ and inserting ‘‘20
years’’.
(d) DEALING IN COUNTERFEIT OBLIGATIONS OR SE-
CURITIES.—Section 473 of title 18, United States Code,
is amended by striking ‘‘ten years’’ and inserting ‘‘20
years’’.
(e) PLATES, STONES, OR ANALOG, DIGITAL, OR
ELECTRONIC IMAGES
FOR COUNTERFEITING OBLIGA-
TIONS OR SECURITIES.—
(1) IN GENERAL.—Section 474(a) of title 18,
United States Code, is amended by inserting after
the second paragraph the following new paragraph:
‘‘Whoever, with intent to defraud, makes, exe-
cutes, acquires, scans, captures, records, receives,
transmits, reproduces, sells, or has in such person’s
control, custody, or possession, an analog, digital, or
electronic image of any obligation or other security
of the United States; or’’.
(2) AMENDMENT
TO
DEFINITION.—Section
474(b) of title 18, United States Code, is amended
by striking the first sentence and inserting the fol-
lowing new sentence: ‘‘For purposes of this section,
the term ‘analog, digital, or electronic image’ in-
cludes any analog, digital, or electronic method used
for the making, execution, acquisition, scanning,
capturing, recording, retrieval, transmission, or re-
production of any obligation or security, unless such
use is authorized by the Secretary of the Treasury.’’.
(3) CLERICAL AMENDMENT.—The heading for
section 474 of title 18, United States Code, is
amended by striking ‘‘or stones’’ and inserting
‘‘, stones, or analog, digital, or electronic
images’’.
(f) TAKING IMPRESSIONS OF TOOLS USED FOR OBLI-
GATIONS OR SECURITIES.—Section 476 of title 18, United
States Code, is amended—
(1) by inserting ‘‘analog, digital, or electronic
image,’’ after ‘‘impression, stamp,’’; and
(2) by striking ‘‘ten years’’ and inserting ‘‘25
years’’.
(g) POSSESSING
OR
SELLING
IMPRESSIONS
OF
TOOLS USED FOR OBLIGATIONS OR SECURITIES.—Sec-
tion 477 of title 18, United States Code, is amended—
(1) in the first paragraph, by inserting ‘‘analog,
digital, 
or 
electronic 
image,’’ 
after 
‘‘imprint,
stamp,’’;
(2) in the second paragraph, by inserting ‘‘ana-
log, digital, or electronic image,’’ after ‘‘imprint,
stamp,’’; and
(3) in the third paragraph, by striking ‘‘ten
years’’ and inserting ‘‘25 years’’.
(h) CONNECTING PARTS OF DIFFERENT NOTES.—
Section 484 of title 18, United States Code, is amended
by striking ‘‘five years’’ and inserting ‘‘10 years’’.
(i) BONDS AND OBLIGATIONS OF CERTAIN LENDING
AGENCIES.—The first and second paragraphs of section
493 of title 18, United States Code, are each amended
by striking ‘‘five years’’ and inserting ‘‘10 years’’.
SEC. 402. COUNTERFEITING FOREIGN CURRENCY AND OB-
LIGATIONS.
(a) FOREIGN OBLIGATIONS OR SECURITIES.—Sec-
tion 478 of title 18, United States Code, is amended by
striking ‘‘five years’’ and inserting ‘‘20 years’’.
(b) UTTERING COUNTERFEIT FOREIGN OBLIGA-
TIONS OR SECURITIES.—Section 479 of title 18, United
States Code, is amended by striking ‘‘three years’’ and
inserting ‘‘20 years’’.
(c) POSSESSING COUNTERFEIT FOREIGN OBLIGA-
TIONS OR SECURITIES.—Section 480 of title 18, United
States Code, is amended by striking ‘‘one year’’ and in-
serting ‘‘20 years’’.
(d) PLATES, STONES, OR ANALOG, DIGITAL, OR
ELECTRONIC IMAGES
FOR COUNTERFEITING FOREIGN
OBLIGATIONS OR SECURITIES.—
(1) IN
GENERAL.—Section 481 of title 18,
United States Code, is amended by inserting after
the second paragraph the following new paragraph:
‘‘Whoever, with intent to defraud, makes, exe-
cutes, acquires, scans, captures, records, receives,
transmits, reproduces, sells, or has in such person’s
control, custody, or possession, an analog, digital, or
electronic image of any bond, certificate, obligation,
or other security of any foreign government, or of
any treasury note, bill, or promise to pay, lawfully
issued by such foreign government and intended to
circulate as money; or’’.
(2) INCREASED
SENTENCE.—The last para-
graph of section 481 of title 18, United States Code,
is amended by striking ‘‘five years’’ and inserting
‘‘25 years’’.
(3) CLERICAL AMENDMENT.—The heading for
section 481 of title 18, United States Code, is
amended by striking ‘‘or stones’’ and inserting
‘‘, stones, or analog, digital, or electronic
images’’.
(e) FOREIGN BANK NOTES.—Section 482 of title 18,
United States Code, is amended by striking ‘‘two years’’
and inserting ‘‘20 years’’.
(f) 
UTTERING
COUNTERFEIT
FOREIGN
BANK
NOTES.—Section 483 of title 18, United States Code, is
amended by striking ‘‘one year’’ and inserting ‘‘20 years’’.
SEC. 403. PRODUCTION OF DOCUMENTS.
Section 5114(a) of title 31, United States Code (re-
lating to engraving and printing currency and security
documents), is amended—
(1) by striking ‘‘(a) The Secretary of the Treas-
ury’’ and inserting:
‘‘(a) AUTHORITY TO ENGRAVE AND PRINT.—
‘‘(1) IN
GENERAL.—The Secretary of the
Treasury’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) ENGRAVING
AND
PRINTING
FOR
OTHER
GOVERNMENTS.—The Secretary of the Treasury
may, if the Secretary determines that it will not
interfere with engraving and printing needs of the
United States, produce currency, postage stamps,
and other security documents for foreign govern-
ments, subject to a determination by the Secretary
of State that such production would be consistent
with the foreign policy of the United States.’’.
SEC. 404. REIMBURSEMENT.
Section 5143 of title 31, United States Code (relating
to payment for services of the Bureau of Engraving and
Printing), is amended—
(1) in the first sentence, by inserting ‘‘, any for-
eign government, or any territory of the United
States’’ after ‘‘agency’’;
(2) in the second sentence, by inserting ‘‘and
other’’ after ‘‘administrative’’; and
(3) in the last sentence, by inserting ‘‘, foreign
government, or territory of the United States’’ after
‘‘agency’’.
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