Title: Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017
Policy area: Crime and Law Enforcement

Summary:
Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017
This bill modifies various prohibitions on money laundering. It requires that for certain reporting requirements, a blank check shall be considered to have a value of more than $10,000 if it was drawn on an account that contained more than $10,000.
Whoever violates a currency smuggling law is subject to fines, which may be enhanced in aggravated cases.
Commingled funds and aggregated transactions can be counted towards the value requirement for offenses involving prohibited monetary transactions derived from specified unlawful activity.
Persons who conspire to violate the prohibition against unlicensed money services businesses shall be subject to the same penalty as the underlying offense.
This bill establishes various criminal offenses pertaining to money services businesses.
It shall be a federal offense to conduct certain financial transactions that involve the proceeds of specified unlawful activity.
If a person is charged with an offense under the federal criminal code, title 31, or the Controlled Substances Act for which forfeiture is authorized, the government may apply for an ex parte order freezing the person's bank accounts.
The international money laundering statute shall apply to tax evasion.
The Department of the Treasury or the Department of Justice may issue a subpoena to any foreign bank that maintains a correspondent account in the United States.
The bill makes it unlawful to knowingly conceal to a financial institution a material fact concerning the ownership of an account with a financial institution.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1241 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1241

    To improve the prohibitions on money laundering, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 25, 2017

    Mr. Grassley (for himself, Mrs. Feinstein, Mr. Cornyn, and Mr. 
  Whitehouse) introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
    To improve the prohibitions on money laundering, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives 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 ``Combating Money 
Laundering, Terrorist Financing, and Counterfeiting Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Transportation or transhipment of blank checks in bearer form.
Sec. 3. Bulk cash smuggling.
Sec. 4. Section 1957 violations involving commingled funds and 
                            aggregated transactions.
Sec. 5. Charging money laundering as a course of conduct.
Sec. 6. Illegal money services businesses.
Sec. 7. Concealment money laundering.
Sec. 8. Freezing bank accounts of persons arrested for offenses 
                            involving the movement of money across 
                            international borders.
Sec. 9. Prohibiting money laundering through hawalas, other informal 
                            value transfer systems, and closely related 
                            transactions.
Sec. 10. Technical amendment to restore wiretap authority for certain 
                            money laundering and counterfeiting 
                            offenses.
Sec. 11. Making the international money laundering statute apply to tax 
                            evasion.
Sec. 12. Conduct in aid of counterfeiting.
Sec. 13. Prepaid access devices, digital currencies, or other similar 
                            instruments.
Sec. 14. Administrative subpoenas for money laundering cases.
Sec. 15. Obtaining foreign bank records from banks with United States 
                            correspondent accounts.
Sec. 16. Danger pay allowance.
Sec. 17. Clarification of Secret Service authority to investigate money 
                            laundering.
Sec. 18. Prohibition on concealment of ownership of account.
Sec. 19. Prohibition on concealment of the source of assets in monetary 
                            transactions.
Sec. 20. Rule of construction.

SEC. 2. TRANSPORTATION OR TRANSHIPMENT OF BLANK CHECKS IN BEARER FORM.

    Section 5316 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(e) Monetary Instruments With Amount Left Blank.--For purposes of 
this section, a monetary instrument in bearer form that has the amount 
left blank, such that the amount could be filled in by the bearer, 
shall be considered to have a value of more than $10,000 if the 
instrument was drawn on an account that contained, or was intended to 
contain more than $10,000 at the time--
            ``(1) the instrument was transported; or
            ``(2) the instrument was negotiated or was intended to be 
        negotiated.''.

SEC. 3. BULK CASH SMUGGLING.

    Section 5332(b) of title 31, United States Code, is amended--
            (1) in paragraph (1), by striking ``5 years'' and inserting 
        ``10 years'';
            (2) by redesignating paragraphs (2), (3), and (4), as 
        paragraphs (3), (4), and (5), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Fine.--
                    ``(A) In general.--Whoever violates this section 
                shall be fined under title 18.
                    ``(B) Enhanced fine for aggravated cases.--Whoever 
                violates this section while violating another law of 
                the United States, other than section 5316 or 5324(c) 
                of this title, or as a part of a pattern of any 
                unlawful activity, including a violation of section 
                5316 or 5324(c) of this title, shall be fined double 
                the amount provided in subsection (b)(3) or (c)(3) of 
                section 3571 of title 18.''; and
            (4) in paragraph (5), as redesignated, by striking 
        ``paragraph (2)'' and inserting ``paragraph (3)''.

SEC. 4. SECTION 1957 VIOLATIONS INVOLVING COMMINGLED FUNDS AND 
              AGGREGATED TRANSACTIONS.

    Section 1957 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(g) In a prosecution for an offense under this section, the 
Government may satisfy the $10,000 monetary transaction value 
requirement under subsection (a) by showing that--
            ``(1) the monetary transaction involved the transfer, 
        withdrawal, encumbrance, or other disposition of more than 
        $10,000 from an account in which more than $10,000 in proceeds 
        of specified unlawful activity was commingled with other funds; 
        or
            ``(2) the defendant conducted a series of monetary 
        transactions in amounts of not more than $10,000 that--
                    ``(A) exceeded $10,000 in the aggregate; and
                    ``(B) were closely related to each other as 
                demonstrated by factors such as--
                            ``(i) the time period between the 
                        transactions;
                            ``(ii) the identity of the parties 
                        involved;
                            ``(iii) the nature or purpose of the 
                        transactions; and
                            ``(iv) the manner in which the transactions 
                        were conducted.''.

SEC. 5. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.

    Section 1956 of title 18, United States Code, is amended--
            (1) in subsection (h), by striking ``or section 1957'' and 
        inserting ``, section 1957, or section 1960''; and
            (2) by adding at the end the following:
    ``(j) Multiple Violations.--Multiple violations of this section 
that are part of the same scheme or continuing course of conduct may be 
charged, at the election of the Government, in a single count in an 
indictment or information.''.

SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES.

    (a) In General.--Section 1960 of title 18, United States Code, is 
amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) Offense.--Whoever knowingly conducts, controls, manages, 
supervises, directs, or owns all or part of a covered money services 
business that--
            ``(1) is operated without an appropriate license in a State 
        where such operation is punishable as a misdemeanor or a felony 
        under State law, whether or not the person knows that the 
        operation is required to be licensed or that the operation is 
        so punishable;
            ``(2) fails to comply with the money services business 
        registration requirements under section 5330 of title 31, or 
        regulations prescribed under that section, whether or not the 
        person knows that the operation is required to comply with 
        those registration requirements; or
            ``(3) otherwise engages in a transaction involving funds 
        that the person knows have been derived from a criminal offense 
        or are intended to be used to promote or support unlawful 
        activity,
shall be punished as provided in subsection (b).
    ``(b) Criminal Penalty.--Any person who violates--
            ``(1) subsection (a) shall be fined in accordance with this 
        title, imprisoned for not more than 5 years, or both; and
            ``(2) subsection (a) by conducting, controlling, managing, 
        supervising, directing, or owning all or part of a covered 
        money services business that engaged in activity as a covered 
        money services business involving more than $1,000,000 during a 
        12-month period, or by engaging in a transaction or 
        transactions involving more than $1,000,000 during a 12-month 
        period, shall be fined double the amount provided in subsection 
        (b)(3) or (c)(3) (as applicable) of section 3571, imprisoned 
        for not more than 10 years, or both.
    ``(c) Definitions.--In this section--
            ``(1) the term `covered money services business' means a 
        money services business, as defined in section 5330 of title 31 
        or any regulations prescribed under that section, that--
                    ``(A) operates on behalf of the public; and
                    ``(B) affects interstate or foreign commerce in any 
                manner or degree; and
            ``(2) the term `State' means any State of the United 
        States, the District of Columbia, the Northern Mariana Islands, 
        and any commonwealth, territory, or possession of the United 
        States.''.
    (b) Technical and Conforming Amendments.--
            (1) Section 1960 of title 18, united states code.--
                    (A) Section heading.--Section 1960 of title 18, 
                United States Code, is amended in the section heading--
                            (i) by striking ``unlicensed'' and 
                        inserting ``illegal''; and
                            (ii) by striking ``transmitting'' and 
                        inserting ``services''.
                    (B) Table of sections.--The table of sections for 
                chapter 95 of title 18, United States Code, is amended 
                by striking the item relating to section 1960 and 
                inserting the following:

``1960. Prohibition of illegal money services businesses.''.
            (2) Section 5330 of title 31, united states code.--
                    (A) Headings.--Section 5330 of title 31, United 
                States Code, is amended--
                            (i) in the section heading, by striking 
                        ``transmitting'' and inserting ``services'';
                            (ii) in subsection (c)--
                                    (I) in the subsection heading, by 
                                striking ``Transmitting'' and inserting 
                                ``Services'';
                                    (II) in paragraph (1), in the 
                                paragraph heading, by striking 
                                ``transmitting'' and inserting 
                                ``services''; and
                                    (III) in paragraph (2), in the 
                                paragraph heading, by striking 
                                ``transmitting'' and inserting 
                                ``services''; and
                            (iii) in subsection (d)(1), in the 
                        paragraph heading, by striking ``transmitting'' 
                        and inserting ``services''.
                    (B) Text.--Section 5330 of title 31, United States 
                Code, is amended--
                            (i) by striking ``money transmitting 
                        business'' each place that term appears and 
                        inserting ``money services business''; and
                            (ii) in subsection (a)(3), by striking 
                        ``money transmitting businesses'' and inserting 
                        ``a money services business''.
                    (C) Table of sections.--The table of sections for 
                subchapter II of chapter 53 of title 31, United States 
                Code, is amended by striking the item relating to 
                section 5330 and inserting the following:

``5330. Registration of money services businesses.''.

SEC. 7. CONCEALMENT MONEY LAUNDERING.

    Section 1956(a) of title 18, United States Code, is amended--
            (1) in paragraph (1)(B), by striking ``knowing that'' and 
        all that follows through ``Federal law,'' and inserting the 
        following:
            ``(B) knowing that the transaction--
                    ``(i) conceals or disguises, or is intended to 
                conceal or disguise, the nature, source, location, 
                ownership, or control of the proceeds of some form of 
                unlawful activity; or
                    ``(ii) avoids, or is intended to avoid, a 
                transaction reporting requirement under State or 
                Federal law,''; and
            (2) in paragraph (2)(B), by striking ``knowing that'' and 
        all that follows through ``Federal law,'' and inserting the 
        following:
            ``(B) knowing that--
                    ``(i) the monetary instrument or funds involved in 
                the transportation, transmission, or transfer represent 
                the proceeds of some form of unlawful activity; and
                    ``(ii) the transportation, transmission, or 
                transfer--
                            ``(I) conceals or disguises, or is intended 
                        to conceal or disguise, the nature, source, 
                        location, ownership, or control of the proceeds 
                        of some form of unlawful activity; or
                            ``(II) avoids, or is intended to avoid, a 
                        transaction reporting requirement under State 
                        or Federal law,''.

SEC. 8. FREEZING BANK ACCOUNTS OF PERSONS ARRESTED FOR OFFENSES 
              INVOLVING THE MOVEMENT OF MONEY ACROSS INTERNATIONAL 
              BORDERS.

    Section 981(b) of title 18, United States Code, is amended by 
adding at the end the following:
    ``(5)(A) If a person is arrested or charged in connection with an 
offense described in subparagraph (C) involving the movement of funds 
into or out of the United States, the Attorney General may apply to any 
Federal judge or magistrate judge in the district in which the arrest 
is made or the charges are filed for an ex parte order restraining any 
account held by the person arrested or charged for not more than 30 
days, except that such 30-day time period may be extended for good 
cause shown at a hearing conducted in the manner provided in Rule 43(c) 
of the Federal Rules of Civil Procedure. The court may receive and 
consider evidence and information submitted by the Government that 
would be inadmissible under the Federal Rules of Evidence.
    ``(B) The application for the restraining order referred to in 
subparagraph (A) shall--
            ``(i) identify the offense for which the person has been 
        arrested or charged;
            ``(ii) identify the location and description of the 
        accounts to be restrained; and
            ``(iii) state that the restraining order is needed to 
        prevent the removal of the funds in the account by the person 
        arrested or charged, or by other persons associated with that 
        person, during the time needed by the Government to conduct 
        such investigation as may be necessary to establish whether 
        there is probable cause to believe that the funds in the 
        accounts are subject to forfeiture in connection with the 
        commission of any criminal offense.
    ``(C) A restraining order may be issued under subparagraph (A) if a 
person is arrested or charged with any offense for which forfeiture is 
authorized under--
            ``(i) this title;
            ``(ii) title 31; or
            ``(iii) the Controlled Substances Act (21 U.S.C. 801 et 
        seq.).
    ``(D) For purposes of this paragraph--
            ``(i) the term `account' includes any safe deposit box and 
        any account (as defined in paragraphs (1) and (2) of section 
        5318A(e) of title 31) at any financial institution; and
            ``(ii) the term `account held by the person arrested or 
        charged' includes an account held in the name of that person, 
        and any account over which that person has effective control as 
        a signatory or otherwise.
    ``(E) Restraint under this paragraph shall not be deemed a seizure 
for purposes of section 983(a).
    ``(F) A restraining order issued under this paragraph may be 
executed in any district in which the subject account is found, or 
transmitted to the central authority of any foreign State for service 
in accordance with any treaty or other international agreement.''.

SEC. 9. PROHIBITING MONEY LAUNDERING THROUGH HAWALAS, OTHER INFORMAL 
              VALUE TRANSFER SYSTEMS, AND CLOSELY RELATED TRANSACTIONS.

    The matter following section 1956(a)(1)(B)(ii) of title 18, United 
States Code, is amended by striking ``For purposes of this paragraph, a 
financial transaction'' and inserting ``For purposes of this paragraph 
and section 1957, a financial transaction or a monetary transaction, as 
applicable,''.

SEC. 10. TECHNICAL AMENDMENT TO RESTORE WIRETAP AUTHORITY FOR CERTAIN 
              MONEY LAUNDERING AND COUNTERFEITING OFFENSES.

    (a) Currency Reporting Offenses.--Section 2516(1)(g) of title 18, 
United States Code, is amended by striking ``or section 5324 of title 
31, United States Code (relating to structuring transactions to evade 
reporting requirement prohibited)'' and inserting ``or section 5324, 
5331, or 5332 of that title (relating to evasion of Federal transaction 
reporting requirements)''.
    (b) Money Laundering.--Section 2516(1)(c) of title 18, United 
States Code, is amended by inserting ``section 1960 (relating to 
illegal money services businesses),'' before ``section 659''.
    (c) Counterfeiting.--Section 2516(1)(d) of title 18, United States 
Code, is amended by striking ``or 473'' and inserting ``473, 474, or 
474A''.

SEC. 11. MAKING THE INTERNATIONAL MONEY LAUNDERING STATUTE APPLY TO TAX 
              EVASION.

    Section 1956(a)(2)(A) of title 18, United States Code, is amended--
            (1) by inserting ``(i)'' before ``with the intent to 
        promote''; and
            (2) by adding at the end the following:
                    ``(ii) with the intent to engage in conduct 
                constituting a violation of section 7201 or 7206 of the 
                Internal Revenue Code of 1986; or''.

SEC. 12. CONDUCT IN AID OF COUNTERFEITING.

    (a) In General.--Section 474(a) of title 18, United States Code, is 
amended by inserting after the paragraph beginning ``Whoever has in his 
control, custody, or possession any plate'' the following:
    ``Whoever, with intent to defraud, has custody, control, or 
possession of any material, tool, machinery, or other equipment that 
can be used to make, alter, forge, or counterfeit any obligation or 
other security of the United States or any part of such obligation or 
security, except under the authority of the Secretary of the Treasury; 
or''.
    (b) Foreign Obligations and Securities.--Section 481 of title 18, 
United States Code, is amended by inserting after the paragraph 
beginning ``Whoever, with intent to defraud'' the following:
    ``Whoever, with intent to defraud, has custody, control, or 
possession of any material, tool, machinery, or other equipment that 
can be used to make, alter, forge, or counterfeit any obligation or 
other security of any foreign government, bank, or corporation; or''.
    (c) Counterfeit Acts.--Section 470 of title 18, United States Code, 
is amended by striking ``or 474'' and inserting ``474, or 474A''.
    (d) Strengthening Deterrents to Counterfeiting.--Section 474A of 
title 18, United States Code, is amended--
            (1) in subsection (a), by inserting ``, custody,'' after 
        ``control'';
            (2) in subsection (b)--
                    (A) by inserting ``, custody,'' after ``control''; 
                and
                    (B) by striking ``any essentially identical feature 
                or device adapted to the making of any such obligation 
                or security,'' and inserting ``any material or other 
                thing made after or in similitude of any such 
                deterrent,''; and
            (3) by adding at the end the following:
    ``(d) Whoever has in his control, custody, or possession any 
obligation or security of the United States or any foreign government 
from which the ink or other distinctive counterfeit deterrent has been 
completely or partially removed, except under the authority of the 
Secretary of the Treasury, is guilty of a class B felony.''.

SEC. 13. PREPAID ACCESS DEVICES, DIGITAL CURRENCIES, OR OTHER SIMILAR 
              INSTRUMENTS.

    (a) In General.--Section 5312(a) of title 31, United States Code, 
is amended--
            (1) in paragraph (2)(K)--
                    (A) by inserting ``prepaid access devices, digital 
                currency,'' after ``money orders,''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``, or any digital exchanger or tumbler 
                of digital currency'';
            (2) in paragraph (3)(B), by inserting ``prepaid access 
        devices,'' after ``delivery,''; and
            (3) by adding at the end the following:
            ``(7) `prepaid access device' means an electronic device or 
        vehicle, such as a card, plate, code, number, electronic serial 
        number, mobile identification number, personal identification 
        number, or other instrument, that provides a portal to funds or 
        the value of funds that have been paid in advance and can be 
        retrievable and transferable at some point in the future.''.
    (b) GAO Report.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a report on--
            (1) the impact the amendments made by subsection (a) have 
        had on law enforcement, the prepaid access industry, and 
        consumers; and
            (2) the implementation and enforcement of the final rule 
        entitled ``Bank Secrecy Act Regulations--Definitions and Other 
        Regulations Relating to Prepaid Access'' (76 Fed. Reg. 45403 
        (July 19, 2011)) by the Department of the Treasury.
    (c) Customs and Border Protection Strategy for Prepaid Access 
Devices.--Not later than 18 months after the date of enactment of this 
Act, the Secretary of Homeland Security, in consultation with the 
Commissioner of U.S. Customs and Border Protection, shall submit to 
Congress a report--
            (1) detailing a strategy to interdict and detect prepaid 
        access devices, digital currencies, or other similar 
        instruments, at border crossings and other ports of entry for 
        the United States; and
            (2) that includes an assessment of infrastructure needed to 
        carry out the strategy detailed in paragraph (1).

SEC. 14. ADMINISTRATIVE SUBPOENAS FOR MONEY LAUNDERING CASES.

    Section 3486(a) of title 18, United States Code, is amended--
            (1) in paragraph (1)(A)--
                    (A) in the matter preceding clause (i), by striking 
                ``of'' and inserting ``relating to'';
                    (B) in clause (ii), by striking ``or'';
                    (C) in clause (iii)--
                            (i) by striking ``section 3056'' and 
                        inserting ``section 3056(a)''; and
                            (ii) by striking ``the Treasury,'' and 
                        inserting ``Homeland Security; or''; and
                    (D) by inserting after clause (iii) the following:
                            ``(iv) an offense under section 1956, 1957, 
                        or 1960 of this title, or section 5313, 5316, 
                        5324, 5331, or 5332 of title 31, or an offense 
                        against a foreign nation constituting specified 
                        unlawful activity under section 1956 of this 
                        title, or a criminal or civil forfeiture based 
                        upon an offense enumerated in this subparagraph 
                        or for which enforcement could be brought under 
                        section 2467 of title 28, the Attorney General, 
                        the Secretary of Homeland Security, or the 
                        Secretary of the Treasury,''; and
            (2) in paragraph (6)(B)--
                    (A) in clause (iii), by striking ``or'' at the end;
                    (B) in clause (iv), by striking the period and 
                inserting ``; or''; and
                    (C) by adding at the end following:
            ``(v) dissipation, destruction, removal, transfer, damage, 
        encumbrance, or other unavailability of property that may 
        become subject to forfeiture or an enforcement action under 
        2467 of title 28.''.

SEC. 15. OBTAINING FOREIGN BANK RECORDS FROM BANKS WITH UNITED STATES 
              CORRESPONDENT ACCOUNTS.

    (a) Grand Jury and Trial Subpoenas.--Section 5318(k) of title 31, 
United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) Covered financial institution.--The term 
                `covered financial institution' means an institution 
                referred to in subsection (j)(1).''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Foreign bank records.--
                    ``(A) Subpoena of records.--
                            ``(i) In general.--Notwithstanding 
                        subsection (b), the Secretary of the Treasury 
                        or the Attorney General may issue a subpoena to 
                        any foreign bank that maintains a correspondent 
                        account in the United States and request any 
                        records relating to the correspondent account 
                        or any account at the foreign bank, including 
                        records maintained outside of the United 
                        States, that are the subject of any--
                                    ``(I) investigation of a violation 
                                of a criminal law of the United States; 
                                or
                                    ``(II) civil forfeiture action.
                            ``(ii) Production of records.--The foreign 
                        bank on which a subpoena described in clause 
                        (i) is served shall produce all requested 
                        records and authenticate all requested records 
                        with testimony in the manner described in--
                                    ``(I) rule 902(12) of the Federal 
                                Rules of Evidence; or
                                    ``(II) section 3505 of title 18.
                            ``(iii) Issuance and service of subpoena.--
                        A subpoena described in clause (i)--
                                    ``(I) shall designate--
                                            ``(aa) a return date; and
                                            ``(bb) the judicial 
                                        district in which the related 
                                        investigation is proceeding; 
                                        and
                                    ``(II) may be served--
                                            ``(aa) in person;
                                            ``(bb) by mail or fax in 
                                        the United States if the 
                                        foreign bank has a 
                                        representative in the United 
                                        States; or
                                            ``(cc) in a foreign country 
                                        under any mutual legal 
                                        assistance treaty, multilateral 
                                        agreement, or other request for 
                                        international legal or law 
                                        enforcement assistance.
                            ``(iv) Relief from subpoena.--
                                    ``(I) In general.--At any time 
                                before the return date of the subpoena 
                                described in clause (i), the foreign 
                                bank on which the subpoena is served 
                                may petition the district court of the 
                                United States for the judicial district 
                                in which the related investigation is 
                                proceeding, as designated in the 
                                subpoena, to modify or quash--
                                            ``(aa) the subpoena; or
                                            ``(bb) the prohibition 
                                        against disclosure described in 
                                        subparagraph (C).
                                    ``(II) Conflict with foreign 
                                secrecy or confidentiality.--An 
                                assertion that compliance with the 
                                subpoena would conflict with a 
                                provision of foreign secrecy or 
                                confidentiality law shall not be a 
                                basis for quashing or modifying the 
                                subpoena.
                    ``(B) Acceptance of service.--
                            ``(i) Maintaining records in the united 
                        states.--Any covered financial institution that 
                        maintains a correspondent account in the United 
                        States for a foreign bank shall maintain 
                        records in the United States identifying--
                                    ``(I) the owners of such foreign 
                                bank; and
                                    ``(II) the name and address of a 
                                person who--
                                            ``(aa) resides in the 
                                        United States; and
                                            ``(bb) is authorized to 
                                        accept service of legal process 
                                        for records covered under this 
                                        subsection.
                            ``(ii) Law enforcement request.--Upon 
                        receipt of a written request from a Federal law 
                        enforcement officer for information required to 
                        be maintained under this paragraph, a covered 
                        financial institution shall provide the 
                        information to the requesting officer not later 
                        than 7 days after receipt of the request.
                    ``(C) Nondisclosure of subpoena.--
                            ``(i) In general.--No officer, director, 
                        partner, employee, or shareholder of, or agent 
                        or attorney for, a foreign bank on which a 
                        subpoena is served under this paragraph shall, 
                        directly or indirectly, notify any account 
                        holder involved or any person named in the 
                        subpoena issued under subparagraph (A)(i) and 
                        served on such an institution about the 
                        existence or contents of such subpoena.
                            ``(ii) Damages.--Upon application by the 
                        Attorney General for a violation of this 
                        subparagraph, a foreign bank on which a 
                        subpoena is served under this paragraph shall 
                        be liable to the United States Government for a 
                        civil penalty in an amount equal to--
                                    ``(I) double the amount of the 
                                suspected criminal proceeds sent 
                                through the correspondent account of 
                                the foreign bank in the related 
                                investigation; or
                                    ``(II) if no such proceeds can be 
                                identified, $250,000.
                    ``(D) Enforcement.--
                            ``(i) In general.--If a foreign bank fails 
                        to obey a subpoena issued under subparagraph 
                        (A)(i), the Attorney General may invoke the aid 
                        of the district court of the United States for 
                        the judicial district in which the 
                        investigation or related proceeding is 
                        occurring to compel compliance with the 
                        subpoena.
                            ``(ii) Court orders and contempt of 
                        court.--The court may--
                                    ``(I) issue an order requiring the 
                                foreign bank to appear before the 
                                Secretary of the Treasury or the 
                                Attorney General to produce--
                                            ``(aa) certified records, 
                                        in accordance with--

                                                    ``(AA) rule 902(12) 
                                                of the Federal Rules of 
                                                Evidence; or

                                                    ``(BB) section 3505 
                                                of title 18; or

                                            ``(bb) testimony regarding 
                                        the production of such records; 
                                        and
                                    ``(II) punish any failure to obey 
                                an order issued under subclause (I) as 
                                contempt of court.
                            ``(iii) Service of process.--All process in 
                        a case under this subparagraph shall be served 
                        on the foreign bank in the same manner as 
                        described in subparagraph (A)(iii).
                    ``(E) Termination of correspondent relationship.--
                            ``(i) Termination upon receipt of notice.--
                        A covered financial institution shall terminate 
                        any correspondent relationship with a foreign 
                        bank not later than 10 business days after the 
                        date on which the covered financial institution 
                        receives written notice from the Secretary of 
                        the Treasury or the Attorney General if, after 
                        consultation with the other, the Secretary of 
                        the Treasury or Attorney General, as 
                        applicable, determines that the foreign bank 
                        has failed--
                                    ``(I) to comply with a subpoena 
                                issued under subparagraph (A)(i); or
                                    ``(II) to prevail in proceedings 
                                before--
                                            ``(aa) the appropriate 
                                        district court of the United 
                                        States after challenging such a 
                                        subpoena under subparagraph 
                                        (A)(iv)(I); or
                                            ``(bb) a court of appeals 
                                        of the United States after 
                                        appealing a decision of a 
                                        district court of the United 
                                        States under item (aa).
                            ``(ii) Limitation on liability.--A covered 
                        financial institution shall not be liable to 
                        any person in any court or arbitration 
                        proceeding for terminating a correspondent 
                        relationship under this subparagraph or 
                        complying with a nondisclosure order under 
                        subparagraph (C).
                            ``(iii) Failure to terminate 
                        relationship.--A covered financial institution 
                        that fails to terminate a correspondent 
                        relationship under clause (i) shall be liable, 
                        for a civil penalty in an amount that is not 
                        more than $10,000 for each day that the covered 
                        financial institution fails to terminate the 
                        relationship.
                    ``(F) Enforcement of civil penalties.--Upon 
                application by the United States, any funds held in the 
                correspondent account of a foreign bank that is 
                maintained in the United States with a covered 
                financial institution may be seized by the United 
                States to satisfy any civil penalties that are 
                imposed--
                            ``(i) under subparagraph (C)(ii); or
                            ``(ii) by the court for contempt under 
                        subparagraph (D).''.
    (b) Fair Credit Reporting Act Amendment.--Section 604(a)(1) of the 
Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is amended--
            (1) by striking ``, or a'' and inserting ``, a''; and
            (2) by inserting ``, or a subpoena issued in accordance 
        with section 5318 of title 31, United States Code, or section 
        3486 of title 18, United States Code'' after ``grand jury''.
    (c) Obstruction of Justice.--Section 1510(b)(3)(B) of title 18, 
United States Code, is amended--
            (1) in the matter preceding clause (i), by striking ``or a 
        Department of Justice subpoena (issued under section 3486 of 
        title 18)'' and inserting ``, a subpoena issued under section 
        3486 of this title, or an order or subpoena issued in 
        accordance with section 3512 of this title, section 5318 of 
        title 31, or section 1782 of title 28,''; and
            (2) in clause (i) by inserting ``, 1960, or an offense 
        against a foreign nation constituting specified unlawful 
        activity under section 1956, or a foreign offense for which 
        enforcement of a foreign forfeiture judgment could be brought 
        under section 2467 of title 28'' after ``1957''.
    (d) Right to Financial Privacy Act.--Section 1120(b)(1)(A) of the 
Right to Financial Privacy Act of 1978 (12 U.S.C. 3420(b)(1)(A)) is 
amended--
            (1) by striking ``or 1957'' and inserting ``, 1957, or 
        1960''; and
            (2) by striking ``and 5324'' and inserting ``, 5322, 5324, 
        5331, and 5332''.

SEC. 16. DANGER PAY ALLOWANCE.

    Section 151 of the Foreign Relations Authorization Act, Fiscal 
Years 1990 and 1991 (5 U.S.C. 5928 note) is amended by striking ``Drug 
Enforcement Administration or Federal Bureau of Investigation'' and 
inserting ``Drug Enforcement Administration, the Federal Bureau of 
Investigation, U.S. Immigration and Customs Enforcement, U.S. Customs 
and Border Protection, or the United States Secret Service''.

SEC. 17. CLARIFICATION OF SECRET SERVICE AUTHORITY TO INVESTIGATE MONEY 
              LAUNDERING.

    Section 3056(b)(3) of title 18, United States Code, is amended--
            (1) by inserting ``money laundering, structured 
        transactions,'' after ``documents or devices,''; and
            (2) by striking ``federally insured''.

SEC. 18. PROHIBITION ON CONCEALMENT OF OWNERSHIP OF ACCOUNT.

    (a) In General.--Subchapter II of chapter 53 of title 31, United 
States Code, is amended by adding at the end the following:
``Sec. 5333. Prohibition on concealment of ownership of account
    ``(a) In General.--No person shall knowingly conceal, falsify, or 
misrepresent, or attempt to conceal, falsify, or misrepresent, from or 
to a financial institution, a material fact concerning the ownership or 
control of an account or assets held in an account with a financial 
institution.
    ``(b) Penalties.--A person convicted of an offense under subsection 
(a), or a conspiracy to commit such offense, shall be imprisoned for 
not more than 10 years, fined not more than $1,000,000, or both.
    ``(c) Forfeiture.--
            ``(1) Criminal forfeiture.--
                    ``(A) In general.--The court, in imposing penalties 
                under subsection (b), shall order that the defendant 
                forfeit to the United States any property involved in 
                the offense, or a conspiracy to commit such offense, 
                and any property traceable thereto.
                    ``(B) Procedure.--Section 413 of the Controlled 
                Substances Act (21 U.S.C. 853) shall govern the 
                seizure, restraint, and forfeiture of property under 
                this paragraph.
            ``(2) Civil forfeiture.--
                    ``(A) In general.--Any property involved in a 
                violation of subsection (a), or a conspiracy to commit 
                such violation, and any property traceable thereto may 
                be seized and forfeited to the United States.
                    ``(B) Procedure.--Seizures and forfeitures under 
                this paragraph shall be governed by the provisions of 
                chapter 46 of title 18 relating to civil forfeitures, 
                except that such duties, under customs laws described 
                in section 981(d) of title 18, given to the Secretary 
                of the Treasury shall be performed by such officers, 
                agents, and other persons as designated by the 
                Secretary of Homeland Security or the Attorney General.
            ``(3) Treatment of certain property as involved in the 
        offense.--In this subsection, the term `property involved in' 
        includes any assets credited to, attempted to be credited to, 
        or contained in the account.
    ``(d) Financial Institution.--In this section, the term `financial 
institution' means any entity defined under section 5312(a)(2), or the 
regulations promulgated under this title, that is required to--
            ``(1) implement a customer identification program under 
        this title, or the regulations promulgated under this title; or
            ``(2) conduct customer due diligence under this title, or 
        the regulations promulgated under this title.''.
    (b) Table of Sections.--The table of sections for subchapter II of 
chapter 53 of title 31, United States Code, is amended by adding at the 
end the following:

``5333. Prohibition on concealment of ownership of account.''.

SEC. 19. PROHIBITION ON CONCEALMENT OF THE SOURCE OF ASSETS IN MONETARY 
              TRANSACTIONS.

    (a) In General.--Subchapter II of chapter 53 of title 31, United 
States Code, as amended by section 18 of this Act, is amended by adding 
at the end the following:
``Sec. 5334. Prohibition on concealment of the source of assets in 
              monetary transactions
    ``(a) In General.--No person shall knowingly conceal, falsify, or 
misrepresent, or attempt to conceal, falsify, or misrepresent, from or 
to a financial institution, a material fact concerning the ownership or 
control of assets involved in a monetary transaction if--
            ``(1) the person or entity who owns or controls such assets 
        is a senior foreign political figure, or any immediate family 
        member or close associate of a senior foreign political figure, 
        as set forth in this title or the regulations promulgated under 
        this title; and
            ``(2) the aggregate value of the assets involved in one or 
        more such transactions is not less than $1,000,000.
    ``(b) Source of Funds.--No person shall knowingly conceal, falsify, 
or misrepresent, or attempt to conceal, falsify, or misrepresent, from 
or to a financial institution, a material fact concerning the source of 
funds in a monetary transaction that--
            ``(1) involves an entity found to be a primary money 
        laundering concern under section 5318A or the regulations 
        promulgated under this title; and
            ``(2) violates the prohibitions or conditions prescribed 
        under section 5318A(b)(5) of this title or the regulations 
        promulgated under this title.
    ``(c) Penalties.--A person convicted of an offense under subsection 
(a) or (b), or a conspiracy to commit such offense, shall be imprisoned 
for not more than 10 years, fined not more than $1,000,000, or both.
    ``(d) Forfeiture.--
            ``(1) Criminal forfeiture.--
                    ``(A) In general.--The court, in imposing sentence 
                under subsection (c), shall order that the defendant 
                forfeit to the United States any property involved in 
                the offense and any property traceable thereto.
                    ``(B) Procedure.--The seizure, restraint, and 
                forfeiture of property under this paragraph shall be 
                governed by section 413 of the Controlled Substances 
                Act (21 U.S.C. 853).
            ``(2) Civil forfeiture.--
                    ``(A) In general.--Any property involved in a 
                violation of subsection (a) or (b), or a conspiracy to 
                commit such violation, and any property traceable 
                thereto may be seized and forfeited to the United 
                States.
                    ``(B) Procedure.--Seizures and forfeitures under 
                this paragraph shall be governed by the provisions of 
                chapter 46 of title 18, relating to civil forfeitures, 
                except that such duties, under the customs laws 
                described in section 981(d) of title 18 given to the 
                Secretary of the Treasury shall be performed by such 
                officers, agents, and other persons as may be 
                designated for that purpose by the Secretary of 
                Homeland Security or the Attorney General.
    ``(e) Definitions.--In this section--
            ``(1) the term `financial institution' has the meaning 
        given the term in section 5312(a)(2) of this title; and
            ``(2) the term `monetary transaction' means the deposit, 
        withdrawal, transfer, or exchange, in or affecting interstate 
        or foreign commerce, of funds or a monetary instrument (as 
        defined in section 1956(c)(5) of title 18) by, through, or to a 
        financial institution (as defined in section 1956 of title 
        18)--
                    ``(A) including any transaction that would be a 
                financial transaction under section 1956(c)(4)(B) of 
                title 18; and
                    ``(B) not including any transaction necessary to 
                preserve a person's right to representation as 
                guaranteed by the Sixth Amendment to the Constitution 
                of the United States.''.
    (b) Table of Sections.--The table of sections for subchapter II of 
chapter 53 of title 31, United States Code, as amended by section 18 of 
this Act, is amended by adding at the end the following:

``5334. Prohibition on concealment of the source of assets in monetary 
                            transactions.''.

SEC. 20. RULE OF CONSTRUCTION.

    Nothing in this Act, or any amendment made by this Act, shall be 
construed to apply to the authorized law enforcement, protective, or 
intelligence activities of the United States or of an intelligence 
agency of the United States.
                                 <all>