OLLATS66 SLC Uda Lista CONGRESS Isp SESSION ‘To improve the prohibitions on money Iaunlering, sand for other purposes. IN THE SENATE OF THE UNITED STATES Mr, Grassuay (for himself, Mis. Feisrers, Mr, CORNYS, and Me. M HOUSE) introduced the following ill; which was read twice and referred to the Committee on A BILL ‘To improve the prohibitions on money laundering, and for other purposes 1 Be it enacted by the Senate and House of Representa- 2. tives of the United States of America in Congress assembled, 3. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Suorr TrrLe.—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 eI AHR this Act is as follows: Soe. 1. Short title; table of eo Sw. 2, See. a. Bulk eash simuzcting, See. 4. Section 1957 vivlations involving commingled Gus aul agurogated ‘Transportation or transhipment of blank eek in beswor forOLL17368 BLU Sor. 5, Charging mos kroleving a a wou of comic, Soc. Ileal meer speviens nsinesses, 7. Caayeealorent money bywaleriogs ing bank neeounts of pesuns ayvestl for elfemsen involv ruven of gamnoy weave iuternasional Daas, Ser Ml Prolibiting mons funder Uevuats baawatns, ols informal vale ruusli systema anid eloselyaclateal Crmstetions, Soo 10, Tyeluieal aagendinent to roman weetay: authority Kar evra, ney ne fea Insuilering statute apply ty tase the fovadeving mu ecotr See. 11, Making the eration 32, Condurt in ail of routerteitn Soe. 18, Prop access devives, liga vie oth similar fusteunieats, 14, Alovinisteative subpoonas for mony Isadora cass, 15, Obvatning foveiyg Inks: werords franc hunks with Uitid: Slates ar sesprimlent acestnts, Sec. 16, Dangor pay alletane Ser 17. Clavifiention of Seert Semview wombority to imvstiite money bn ‘levi on on esnueeulmeat of oss a werent eli a she pose OF asses in memati 1S, Pri 19, Pro See. 20, Rate of eutstuston 1 SEC. 2, TRANSPORTATION OR TRANSHIPMENT OF BLANK 2 CHECKS IN BEARER FORM. Section 5316 of title 31, United States Code, is amended by adding at the end the following: “(e) Moyxerary INSTRUMENTS Wrrir AMOUNT LEPT. 3 4 3 6 Biaxk—For purposes of this-seetion, a monetary instra- 7 meut in bearer form that has the amount left blauk, such 8 that the amount cowd be filled in by the hearer, shall be 9 considered to have a value of niore than $10,000 if the 10 instrument was drawn on an aecount that contained, or U1 was intended to contain more than $10,000 at the tine— 12 “(1)-the instrument was transpoited; or 13 “(2) the instimment was negotiated or was in- 14 tended to be negotiated.”.01117806 BLA. 3 1 SRC. 3. BULK CASH SMUGGLING. Section 5332(b) of title inserting “10 yeu , United States Code, is amended— (1) in paragraph (1), by striking “5 years” and (2) by redesignating paragraphs (2), (3), and (4), as paragraphs (3), (4), and (5), respectively; (3) by inserting after paragraph (1) the fol- lowing: “(2) Fiss.— “(M) IN GENERAL.—Whoever ‘violates this section. shall he fined under title 18. “(B) ENHANCED PINE FOR AGGRAVATED: CASES.~—Whoever violates this section while vio- lating another law of the United States, other than seetion 5316 or 5324(¢) of this title, or.as a part of @ pattern of any nnlawtnl activity, ine Auding a vivlation of section 5316 oF 5324(e) of this title, shall be fined double the amount provided in subsection (b1(3) or (¢)(3) off see- tion 3571 of title 18.”; and (4) in paragraph (5); as redesigmated, by strike ‘paragraph (2)" and inserting “paragraph (3)”.OLLIT BLE. 1 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16. 17 18 19 20. 21 22 4 SEC. 4, SECTION 1957 VIOLATIONS INVOLVING GOMMIN- GLED FUNDS AND AGGREGATED. TRANS- ACTIONS. ction 1957 of tifle IX, United States Code, is amended by adding at the end the following: *(@) Tn a proseeation for an offense under this see tion, the Government may satist the $10,000 monetary. transaction value requirement under subsection (a) by showing that— (1) the monetary transaction involved the traustor, withdrawal, encumbrance, or other disposi- tion of more than $10,000. from ain necomit in whieh more thar 10,000 in proceeds of specitied mnlawtnl activity was commingled with other funds; or “(2) the defendant conducted a series of moue- tary transactions in amounts of not more than $10,000 that— (A) exceeded. $10,000 in the aggregate; and “(B) ivere closely related to each other as demonstrated by factors sach as— “@) the time period between the transactions; “Gi) the identity of the parties in- volvedOLLI TH BLO. 5 1 “Gii) the nature or pmpose of the 2 transuetions; and 3 (iv) the mamer in whiely the teans- 4 aictions were conducted.” 5 SEC. 5. CHARGING MONEY LAUNDERING AS A COURSE OF 6 CONDUCT. 7 Scetion 1956 pf title 18, United States Code, is 8 amended— 9 (1) in subsection (h), by striking “or 10 1957" and inserting “, section 1957, ws 11 1960”; and 12 (2) by adding at the end the following: 138g) MeLreee VioLaTions.—Mnltiple violations off 14 this section that ave part of the sume scheme or ean 15 tinuing course of conduct may be charged, at the election 16 of the Government, in a single count in an indictment or 17 information.” 18 SEC. 6. ILLEGAL MONEY SERVICES BUSINESSES. 19 (a) IN Grxwrar—Section L960 of title 18, United 20 States Code, is amended by striking: subseetions (a) and 21. (h) and inserting the following: 22 “(a) OFFENSE. Whoever knowingly eondnets, eon- 23. trols, manages, snpervises, directs, or owns all or part of 24 a covered money services business that—OLLA TSN she, 6 “(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 Inows that the operation, is re quired to be lieensed or that the operation is so pun- ishable; “(2) fails to comply with the money serviees business vegistration requirements under seetion 330 of title 31, or regulations prescribed under that section, whether or not the person knows that the operation is required to comply with those reg- istration requirements; or (3) otherwise cigages ina transaction involv- ing funds that the person knows have heen derived from a criminal offeuse or are intended to be used to promote or support unlawful activity, 17 shall be prnished as provided in subseetion ()). 18 “(b) CRBMNAL PRNALTY—Any person who vio- 19 lates— 20 “(1) subsection (a) shall be fined in accordance 21 With this title, imprisoned for not more han 5 years, 2 or bath; and 23 (2) subsection (a) hy conducting, contrélling, 24 Tmataging, supervising, divecting, or owning all or 25 part of a covered money services bmsiness: that en=Onna TaN Cm 4d aA kw 10 12 13 14 15 16 17 18 19 21 22 23 BL. 7 services busi- gaged in activity as a covered money involving more than $1,000,000 during a. 1 mouth period, or by engaging in a transaction or transactions involving more than $1,000,000 daring a [2-moiith period, shall be fined double the amount provided in subsection (b)(3) or (e){3) (as applic ble} of section 8571, imprisoned for not more than 10 years, or both. “(¢) DEFINITIO? In this-seetion— “(1) the term ‘covered money sevices business? means & money’ services business, as defined in see tion 5330 of title 31 or any -repnlations. preseribed under that. section, that— “(A) operates on behalf of the publics and “(B) affects interstate or foreign commerce in any manner oF degree; and “() the term ‘State’ means any State of the United States, the Distriet of Columbia, the North- cen Maviavia Istands, and any commonwealth, terri- tory, or possession of the United States.”. (b) TecmteaL AND CoNForaiNe Aamexpamxs — () SECTION 1960 OF TIPLE 18, UNITED. STATES ODE.OLLI TAB Cr aS) 10 i 12 Sue. 8 (A) SECTION MEADTNG.—Section 1960 of titie 18, United States Code, is amended in the section heading— (i) ly stiking “unlicensed” and inserting “illegal”; and Gi) by stiking “transmitting” and inserting “services”. (B) TABLE OF SECTIONS —The table of sections for chapter 95. of title 18, United States Code, is amtended by striking the itew ing the fol- 72980, Probbition i loyal money soeviees business”. 13 14 15 16 7 18 19 20 21 22 24 25 (2) SECTION 5230 OF TEPLE 31, UNTTED STATES. cODE.— (A) THraprycs.—Section. 0) of title 31, United States Cod, is amended — {i) in the section heading, by striking “transmitting” aud inserting “serve ices”; Gi) in subsection ()— (1) in the subsection heading, by striking “TRANSMITTING” and insert- ERT ing fl (11) in paragraph (i), in the parayeaph heading, by — strikingOLLI THB 3 4 5 6 7 8 9 10 12 13 14 1s 16 7 18, 19 21 22 23 Shett “rraNswierrixe” amd inserting “SERVICES”; and (IH) im paragraph (2), in the paragraph heading, by striking “TRANSMITTING” amd — inserting Servicers”; and Gil) ix subsection (@}(1), im the para- graph heading, by strikhig “rraxsarr- TING” and inserting “SERVICES”. (B) Texr.—Section 0 of title 31, United States Code, is amended— (3) by striking “money transmitting busine: that term appears each plae and inserting “money serviees business"; and (ii) in subsection (a)(3), by striking: “money transmitting businesses’ and ine sertiug “sr money services bnsiness". (C) TABLE OF SECTIONS —The table of sections for sulichapter Uf of chapter 62 of title 31, United States Codo, is amended by striking the item relating to section 5330 and inserting the following: “5030, Registration of money stoves Dainese."OLLITIBE, SLO. 10 L SEC. 7, CONCEALMENT MONEY LAUNDERING. 2 Rection 1956(a) of title 18, United States Code, is 3 amended— 4 (1) in paragraph (1B), by striking “mowing 5 that” aml ail that follows through “Federal law,” 6 and inserting th following: 7 “(B) Iniowing that the transaction— 8 “{i) conceals or disguises, or is intended to 9 conceal or disguise, the nature, sonree, location, 10 ownership, or coutrol of the. proceeds of some AL form: of wnloytul activity; ov 12 “(i) avoids, or is intended to avoid, a 13 transaction reporting requirement under State 14 or Federal law,"; and 15 {2) in paragraph (2)(B), by striking “knowing 16 that” and all that follows through “Mederal law,” 17 and inserting the following: 18, “B) Knowing that— 19 “(j) the monetary instrament or funds in- 20 volved in the transportation, transmission, or 21 transfer repiesent the proceeds of some form of 22 uilawful activity; and 23 “(i) the transportation, transini transtier— 25 (1) conceals or disguises, or is in 26 fended t6 conceal ov disguise, the nature,Onna SLO. wv Coed a we uw sonree, location, ownership, oF control of, ‘the proceeds of some foxur of unlawtal ae tivity; or “ (ID) avoids, or is intended to avoid, a transaction, reporting vequirement under State or Federal law,”. SEC. 8. FREEZING BANK ACCOUNTS OF PERSONS: AR- RESTED FOR OFFENSES INVOLVING THE ‘MOVEMENT OF MONEY ACROSS INTER- NATIONAL BORDERS, Section 981(b) of title 18, United States Code, is amended by adding at the end the following: “(5)(A) Ifa person is arrested or charged in connec- tion with an offeuse deseribed in subparagraph (C) involy- ing 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-whieh the ar- rest is made or the charges are filed for am ex parte oviler restiaining any account held by the person arrested or charged for not more than 30 days, exept. that smch 30- day time period may be extended for good camse shawn, at a hearing conducted in the manner provided in Rale 3(e) of the Federal Rules of Civil Procedure, The court may reeeive and consider evidence and information sub-Onn Tau6 SL. 12 1 mitted by the Government that would he inadmissible 2 under the Federal Rules of Evidence. 3 “(B) The application for the restraining order re- 4 ferred to in subparagraph.(A) shall— 5 (i) identify the offense for which the person 6 has been arrested or charged; 7 “Gi) identify the location and de: 8 accounts to be restrained; and 9 “(ii) state that the restraining order is needed 10 to prevent the removal of the fads ii the account ul hy the person arrested or charged, or by other per- 12 sous associated with that person, during the time 13 needed by the Goverment to conduct such inves: 14 tigation as may be necessary to establish whether 15 there’ is probable enuse to believe that: the funds in 16 the accounts are subject to forfeiture in connection 7 with the commission of any criminal offense. 18 (C) A restraining order may be issued undex sub- 19 paragraph (.A) if «person is arrested or charged swith any 20. offense for which forfeiture is authorized wder— 21 “() this title; 2 “Gi) title B1; or 23 “Gii) the Conivolled Substances Act (21 TSC. 24 SOL et seq). 25 *(D) For purposes of this paragraph—OLLI TA66 SLAG i) 3 4 s 6 7 8 9 B “G) the term ‘avcount’ inches any safe deposit box and any account (as defined in paragraphs (1) and (2) of section 4318A(e) of title 31) at any fi- nancial institution; and “Gi) the term ‘account held by the person ar- vested or charged’ includes an account held in the name of that person, amd any account over which that person has effective contrdl as: a signatory or otherwise, (8) Restraint under this paragraph shill not. be deemed.a seizure for purposes of section 983(a). “(P) A vestraining order issued mmder this paragraph. niay be exceuted in any district. in. whieh the subject ac count is found, or transmitted to the central authority of any foreign State for service in accordance with any treaty ‘or other international agrecment.”. SEC. 9. PROHIBITING MONEY LAUNDERING THROUGH HAWALAS, OTHER INFORMAL VALUE TRANS- FER SYSTEMS, AND CLOSELY RELATED ‘TRANSACTIONS. ‘The matter following section 19 Bla BIG) of tifle 18, United States (ode, is amended by striking “For preposes of this paragraph, a financial transaction” and inserting “Vor purposes of this paragraph and sectionI 2 3 4 5 6 7 & 9 10 ll 12 13 4 15 16 7 18, she aE 1957, a financial teanstiction or a monctaxy transaction, as-applicable,”. ‘SEC. 10, TECHNICAL AMENDMENT TO RESTORE WIRETAP AUTHORITY FOR CERTAIN MONEY LAUN- DERING AND. COUNTERFEITING OFFENSES. (a) CURRENCY REePoRTING OFFENSES.—Section 2516(L(g) of title 18, United States Code, is amended by striking “or section 5324 of title 31, United States Code (velating to structuring transactions to evade report= ing requirement prohibited)” and iusexting “or section 5324, 5331, ov 5: 2 of that title (relating to evasion of Federal transaction reporting requirements)”, {b) Moxny Lacsperixe.—Section 2516(1Me) of title 18, United States Code, is amended by ins tion 1960 (relating to legal money services businesses),” before “section 659". {¢) COUNTERFEITING.—Section 6U1)(d) of title 18, United States Code, is amended by striking “or 473” aud inserting “473, 474, or 474A”, SEC. 1. MAKING THE INTERNATIONAL MONEY LAUN- DERING STATUTE APPLY TO TAX EVASION. tion 1956(aX2)(A) of title 18, United States Code, is mented — (1) by inserting “(i)" before “with the intent to promote”; andOLLIT366 SLC. 6 1 (2) by adding at the end the following: 2 Gi) with the intent to engage ine conduet 3 constituting a vidlation of section 7201 or 7206 4 of the Internal Reyonae Code of 1986; or”, 5 SEC. 12. CONDUCT IN AID OF COUNTERFEITING, (a) IY GeNHRAL.—Nection 474(a) of title 18, United States Code, is amended hy inserting after the paragraph. beginning “Whoever has in his ¢ontrol, enstody, or posses sion any plite” the following: Seewan “Whoever, with intent to defvand, las eustuly, con- TL trol, ov possession of any material, tool, machinery, or 12 other equipment that can he used to make, alter, forge, 13. or counterfeit any obligation or other seenrity of the 14 United States or any part of such obligation or seenrity, 15. except under the authority of the Secretary of the ‘Preas- 16 my; or”. 17 (b). ForEIGN OBLIGATIONS. AND SECURITIES. —Sec- 18 tion 481 of title 18, United States ( le, is amended by 19 insexting after the paragraph beginning “Whoever, with. 20 intent to defraud” the following: 21 “Whoever, with intent to defrand, has custody, con- 22 trol, or possession of any material, tool, machinery, or 23 ather equipment that can be used to make, alter, forge, 24 or counterfeit auiy obligation or other sceurity of any for- 25. cign government, bank, or corporation; 0Onna 7366 SLO, Cmdr anne one 10 IL 13 14 15 16, 7 18 19 21 2 23 16 (¢) CoUNTERFEIT ACTS.—Section 170 of title 18, United States Code, is amended hy striking “or 474” and inserting “474, or 4744", (@) STRENGTHENING DaTerReNts to CouxrER- PEITING —Seetion 474A. of title 18, United States Code is amendod— (1) it subsection (a), by inserting “, custody,” after “control”; (2) in subsection (b)— (A) by inserting “, enstody, after “con trol”; and (B) by suiking “any essentially identical featare or device adapted ta the making of any such obligation or seewity,” and inserting “any material of other thing made after or in simili- tude of any such detervent,”; and (3) by adding at the enc the following: “4d) Whoever has itr his control, eustoty, ox posses- sion any obligation or security of the United States or ang foreign goverment from which the ink or other distinetive counterfeit deterrent has been completely or partially ve- nioved, exvept uuder the authority of the Secretary of the Treasmry, is guilty of a ehiss B felony.”,OLLATS66 SLO. 1 1 SBC. 13, PREPAID ACCESS DEVICES, DIGITAL CURRENCIES, 2 OR OTHER SIMILAR INSTRUMENTS. 3 (a) IN GENERAL.—deetion 5312(u} of title 31, 4 United Statos Code, is amended— 5 (1) in paragraph (2))— 6 (Ad hy inserting “prepaid access devie 7 digital currency,” after “money orders,”; and 8 (B) by inserting before the semicolon at 9 the end the following: “, or any digital ex- 10 changer or tumbles of digital qurrene dW (2) in paragraph (3)(B), by inserting “prepaid 12 access dovices,” after “delivery,"; and 13 (8) by adding at the end the following: 4 “(7) Sprepaid access device” means an electronic 15 device or vehicle, such as a card, plate, code, uum 16 her, clvetronie serial number, mobile identification W number, personal identification number, or other in- 18 surument, tit provides a portal to funds or the 19 valne of fonds that have been paid in advance and 20 can be retrievable and transtevable at some point in 21 the firture.”, 22 (>) GAO Reporr:—Not later than 18 months after 23 the date of enactment of this Act, the Comptroller General 24 of the United States shall stbmit to Congress a report 25 on—OLLITI66 10 ror PREPAID ACCESS DEVICES, she. is (1) the impact the amendments made by sub- seetion (1) have had on lav enforcement, the prepaid and constmners; and (2) the huplementation and enforcement of the final rule entitled “Bank: Sccreey Act. Regulations- Definitions and Other Regulations Relating to Pre- pail Access” (76 Fed. Reg, 45403 (July 19, 2011)) by the Department of Treasmy. {¢) CUSTOMS AND BORDER PROTECTION StraTEGy Not later than 18 11 months after the date of enactment of this Act, the Sec- 12 retary of Homeland Security, in consultation with the 13 Commissioner of TU. . Customs and Border Protection, 14 shall submit to Congress a report— 15 16 17 18 ig 20 21 (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 Thited States; and (2) that includes an assessment off infrastruc ture neeiled to carry out the strategy detailed in paragraph (1). 22 SEC. 14, ADMINISTRATIVE SUBPOENAS FOR MONEY LAUN- 23 24 DERING CASES. Section 3486(a) of title 18, United States Code, is 25 amenided—OLLATEA Cm Ah eR 10 12 13, 14 15 16, 17 18 19 an 22 23 25 Sut at) (1) in paragraph (1)(A}— (A) in the matter preveding clause (i), by striking “of” and inserting “relating to”; (B) in clause (i), by striking: “or”; (C} in clase (iti) — (i) by striking “section 3056” and in- sorting “section 305 sta)”; and (ii) by striking “the Treasury,” and inserting “Homeland Security; or”; and (D) by: inserting: after clause (iii) the fol lowing: “(iv) an offense mnder section 1956, 1957, ar 1960 of this title, or section 5313, 6316, 4, 5331 or 5332 of title 31, or an offense against a foreign nation coustituting specified unlawful activity under section 1956 of this tithe, or a erimi- nal or civil forfeiture based upon an of- feuse exumerated in this subparagraph or for which enforvement could be brought under section 2467 of title 28, the Attor- ucy General, the Seeretary of Homeland sor the Seeretary of the Tree (2) im paragraph (6)(B)—OTL 7368 Bd. 20 (A) in clause (iil), by striking “ox” ait the end (B) im danse (iv), by striking the period and inserting “; or"; and (C) by addiniy at. the end following: (x) dissipation, destinetion, removal, transfer, damage, encumbrance, or other rmavailability off property that may beeome subject to forfeftmre or an enforcement action under 2467 of title 28.”. SEC. 15. OBTAINING FGREIGN BANKS RECORDS FROM BANKS WITH UNITED STATES COR: RESPONDENT ACCOUNTS, (a) Geaxp JURY axp TRIAL ScBPOENAS—Section SRIB(ke) 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 FIN; CIAL INSTITUT ‘The teim ‘covered suancial institution’ mets an institution referred to in subsection ())(1)."5 ant (2) by striking paragraph, (3) and inserting the following:OLLATR 66 SLC 2 1 “(3) FORSIGN BANK RECORDS — 2 “(A) STRPOBNA OF RECORDS.— 3 “() EX GuNpRaL.—Notwithstanding 4 subsection (b), the Seeretary of the Treas- 5 say or the Attorney General may igsne a 6 subpoena to any foreign bank that main- 7 tains a correspondent account in the 8 United States and request any records re+ 9 lating to the ¢orréspondent acconnt, or ay 10 acemut at the foreign bank, ineluding, 11 records maintained outside of the United 12 States, that ure the subject of any 13 “(D) investigation of a violation of 4 a criminal lay of the United States; 15 or 16 (II) civil forfeiture action, 17 “Gi) PRODUCTION OF 1BCORI ‘The 18 foreign bank on which a subpoona de- 19 seribed in clause (i) is served shall proitice 20 all requested records and authenticate all 21 requested records. with testimony in the 22 mamnier deseribed in— 23 “1) rule 902(12) of the Foderal 24 Rules of Bvidenee; or 25 “(ID section 3505. of title 18,OLLI TGR Ce mawxranerwn 10 12 13, 14 15 16 17 18 19 20 21 2 2B Py 25 SLC ® “(ii) ISSUANCE AND SERVICE OF SUB- POENA—A seibpoena deseribed in clase Q— “(D) shall desiguate— (aa) a retin date; and “(bb) the judicial district in ‘which the related investigation ix, proceeding; and “CIL) may be served— “(aa) fa-person; “(bh) by mail or fax in the United States if the toxeign bani has a representative in the United States; or (ce) ma foreign eomtiy under any mutual Tegal ass ance ireaty, multilateral agree- ment, or other request: for initer- national legal or Iw enforeemenit assistance, (je) RELIEF FROM SCBPORNA— “() IN GENBRAL.—At any tine hetore the return date of the subpoena, described in clause (i), the foreign bank on which the subpoena is servedOLLITS66 Cer anne en 23 may petition the distriet court of the United States for the judicial district in which the related investigation is proceeding, ay designated in the sub: poena, to modify or qaash— “(aa) the subpoena; or “(bb) the probibition against disclosure described in subpara- gruph (C) “€Il) Conwriet wrnt RoREIGN SECRECY OR CONPIDENTLALITY.—Au assertion that compliance with the subpoena would conflict with a provi- sion of foreign seereey or confiden- tintity law shall not be a basis for cashing or mositying the subpoena. #(B) ACCEPTANCE OF SBRYICE— “() MAINTAINING RECORDS IN THE UNITED NPATES—Any covered financial institution tha maintains a correspondent account in the United States for a foreign hank shall maintain records in the United States identifying — “(1) the owners of such foreign bank; andOLLI 366 wv Cm a aw Rw 10 2 13 4 15 16 a 18 19 20 21 22 23 24 25 SLE, a “(1) the name and address of a person who— (aa) resides in the United States; and (bb) is wuthorized to accept service of legal process for records eovered under. this sub- section, “(i) LAW ENPORCEMEN' REQUEST. — Upon receipt of a written request: from & Federal Livi’ enforcement officer for infor- mation required to be maintained under this paragraph, a covered finaneial institn- tion shall proyide the information to the requesting officer npt later than 7 after receipt of the request. “(Cy NONDISCLOSCRE OF SUBPOENA— “Gj IN GENERAL.—No officer, direc- tor, partner, employee, or shareholder of, or ageut or attorney fox, @ foreign bank on. which a sabpoona is served under this paragraph. shall, direetly or i directly, no tify any account holder involved or any: person iaumed in the subpoena issued under subparagraph (A)(i) and served onOLLITS6G SLC. such an institution about the existonee or coutents of such subpoena. “(i) Dawa —Upon application by the Attorney General for a violation of this subparagraph, a foreign bank on which a subpoena is served unde this paragraph shall be liable to the United States govwn- ment for a civil penalty ina amount eqaal to— “(1) double: the amount of the suspecte’l criminal proceeds sent through the ear spondent account of the foreign bank in the related inves: tigation: or (ID) if uo such proceeds can be identified, $250,000. “(D) ENFORCH Tt “() IN GENERAL—It a foreign bank fails to obey a subpoena issued tmder sub- paragraph (A)G), the Attorney General may invoke the aid of the district court of the United States for the judicial district in whieh the investigation or related pro- ceeding is oeenrring to compel compliance with the subpoena.OLLITABS ss Cen awa es snc. 26 “Gi) COURT ORDERS. AND CONTEMPT OF covRT.—The court: may— SCD issue at order requisinty the foreign hank to appear before the See retmy of the Treasury’ or the Attorney General to prodneo— “(aa) certified records, in accordance with— “(AA) ule 902(12) of ‘tlie Federai Rules of Evi- dence; or “(BB) section 3505. of title 18; or “(hh). testimony regarding the production of such records; and “(IL) punish any failure to obey an order issued under subelause (L) as contempt of court. “{iii} SERVICE OF PROCHSS—AlL process in a ease under this subparagraph shall be served on the foreign bank: in the same manner as described in subparigraph (ANGI.OLLAT3N She. 27 1 “(E) TERMINATION. OF CORRESPONDE 2 RBLATIONSINP.— 3 “() LERMINATION CRON RECEIPT OF 4 xoTice,—A\. covered financial institution. 5 shall terminate any correspondent. velation- 6 ship with « foreign bank not later than 10 7 Dusiness days after the date on which the 8 vovered financial institution receives writ 9 ten notice from the Secretary of the Treus- 10. ury or the Attorney General if, after eon- il sultation with. the. other, the Secretary of 12 the Treasury or Attorney Generel, as ap- 13 plicable, determines that the foreign bank 14 has failed— 15 #1). to comply with a subpoena 16 issued under subparagraph (A)(i); or 17 “CID to prevail in: proceedings. be- 18 fore— 19 (aa) thé appropriate dis 20 trict comt of the United States 21 after challenging ‘such a sub- 22 poena under subparagraph 23 (AMV); or 24 “(bh) a court of appeals of 25 the United States after appealingOLA T364 ie Cm A Awe w fs k Re B RLe. 28 a decision of a district eomt of the United States under item faa. “(i) LIMITATION ON LIABILITY.—A. covered finaueial institution shall not be liable to any person in any court or arbi- tration proceeding for terminating a cor respondent. relationship under this sub- paragraph or complying with a nondiselo- sure order under subparagraph (C), “(it) FAMCRE TO TERMINATE RELA- TIONSHTP.—A covered financial institution that fails to termmate a correspondent re- lationship under clause (i) shall be liable, for a civil penalty in an amowmt that is not more than #10,000 for cach dey that the covered financial institution fails to termi- nate the relationship. “(F) ENFORCEMENT OF CIVIL PEN- ALTIEN—Upon application by the United States, any funds held in the: correspondent. ac- count of a foreign bank that is maintained in the United States with a covered financial insti- tution may be seized by the United States to satisfy any civil penalties that are imposed—OLLYT366 SL. 29 1 “(i tnder subparagraph (C)Gi); or 2 “(i) by the conrt for contempt under 3 subparagraph (D).". 4 (b) Far Craprr Reportise Act AMENDMENT. 5 Section 604(a)(1) of the Pai Credit Reporting Act (15 6 C3. 1681b(a){1)) is amended— 7 (1) by striking *, or a and insertin, aud 8 (2) by inserting “, or a subpoena issned in ad. 9 cordance with section 9318 of title 31, United States 10 Code, or seetion 3486 of title 18, United States i Code” after “grand jury”. 2 (OBSTRUCTION ~~ OF TeSTICE—Seetion 13 1510(b}(3)(B) of title 18, United States Code, is amend- 16 ele 15 (1) in the matter preceding clause {i), by strike 16 ing “ora Department of Justice subpoena (issned 17 under’ section 3486 of title 18)” and inserting “, a 18 subpoena issued uuler section 3486 of this title, or 19 an order or subpoena issued in accordance with sei 20 tion 3512 of this title, section 5318 of title 31, or au section 1782 of title 28,"; and 22 (2) in clause (i) by inserting “, 1960, or an of 23 fense against a foreign uation constituting specified 24 umlawal activity under section 1956, or a foreign of 25 fense for which enforcement of a foreign forOVAL TB68 ALA 30. jadgmont conkl be brought under section 2467 of 2 title 28” after “1957”, (d) RiHr To FrxaxciaL Privacy Act.— L120(b)(T HA) of the Right to Financial Privacy Act of 1978 (12 U.S.C, 3420(b)(1)UA) is amended— 1957, or 1960"; and 3 4 5 6 (1) by ‘striking Sor 1957" and inserting “, 7 8 (2) by striking “and 5324” ancl inserting “, 9 5824, 5381, and 5332”, 10. SEC. 16. DANGER PAY ALLOWANCE. is Section 151 of the Foreign Relations Authorization 12 Act, F al Years 1990 and L991 (5 U.S.C. 3928 note) 13 is amended by striking “Ding Enforcement Administra- 14 tion or Federal Bureau of Investigation” and inserting 15 “Drug Enforcement Administration, the Federal Bureau 16 of Investigation, U.S. nw igvation and Customs Enforee- 17 ment, US. Customs and Border Protection, or the United 18 States Secret Service”. 19 SEC. 17, CLARIFICATION OF SECRET SERVICE AUTHORITY. 20 TO INVESTIGATE MONEY LAUNDERING, 21 Seti BO56()(3) of title 18, United States Code, 22 is amenteit— B (1} by inserting “honey lanndering, stractired 24 transactions,” after “documents or deyices,”; and 25 (2) by striking “federally insured”,Onna T366 SLC 31 1 SEC, 18 PROHIBITION ON CONCEALMENT OF OWNERSHIP 2 OF ACCOUNT. (a) IX GexeRan—Snbchapter I of chapter 53. of title 31, United States Code, is amended by adding at the end the following: account (a) IN Gixerar.—No person shall knovtingly eon 3 4 5 6 “$5333. Prohibition on concealment of ownership of 7 8 9 ceal, falsify, or misrepresent, or attempt to conceal, falsity, 10 or mistepresent, ftom or to a financial institution, a mato- LE vial fact concerning the ownership ar control of nn-account 12 or assets held in an account with a financial institution, 13° "{b) PENALTIEN.—A person convieted of wm offense i4 under subsection (a), or a conspiracy'to commit such off 15 fense, shall be imprisoned for not more than 10 years, 16 fitted not more than $1,000,000, or both, 7 “(¢) FoRPErrcrn.— 18 ©) CRnuaL ForrErrcRn— 19 “(A) IN Geypran.—The conrt, in impos- 20 ing penalties under subsection ¢b), shall order 21 that tlie defendant forfeit to the United States 22 any property involved in the offense, or a con- 23 spiraey to-commit such’ offense, and ay prop- 24 erty traveable thereto. 25 “(B) Procepven.—Seetion 413 of the 26 Controlled Stbstanees Act (21.OLLATI66 3 4 5 cane By SLE. shall govern the seizure, restraint, and for- feiture of property under this paragraph. “Q) 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 he seized and forfeited to the United States. “(B) Prockncna.—Seiaures and forfeit= aires tinder this paragraph shall be governed by the provisions. of chapter 46 of title 18 relating to civil forfeitures, except that such duties, ander customs Inws deseribed in section 981) of title L given to the Secretary of the Treas ury shall be performed by such offivers, agents, and other persons as designated by the See retary of Homeland Security or the Attorney General “(3) TREATMENT OF CERTAIN PROPERTY As IXVOLYED IN THE OFFENSEW—In this subsection. the term “property y involved in’ inchudes any assets credited to, attempted to be evedited to, or contained inthe acount, “(d) Fixanciab Ixstiretion.—tIn this seetion, the. 25. term ‘financial institntion? mems any entity defimed nnerOL F366 BLU 1 section 5312(a)(2), or the regulations promulgated under 2 this title, that is required to— “(1) implement a customer identification pro- gram under this tifle, or the regulations promul- 3 4 5 gated under this title; or 6 (2) conduct customer due diligence wider this 7 title, or the regnlations promulgated onder this 8 title”. 9 (b) ABLE OF SECTIONS —The table of sections for 10 subchapter I of chapter 53 of title 81, United States 11 Code, is amended by adding at the end the followin, “5a. Pa tim on concealment of excep uf ace 12 SEC. 19. PROHIBITION ON CONCEALMENT OF THE SOURCE 13 OF ASSETS IN MONETARY TRANSACTIONS. 14 ta) IN Gaxmran.—Subchapter [1 of chapter 53 of 15 title 31, United States Code, as amended by section 18 16 of this Act, is amended by adding-at the end the following: 17 “5384. Prohibition on concealment of the souree of 18 assets in monetary transactions 19 “(a) TY GaNERAL—No person shall kuowingly con- 20. eval, fal fv, or mistepiesent, or attempt to conceal, fals 21 or inisreprésent, from or to a financial institution, a mate- 22. rial fact concerning the ownership or control of assets in- 23, volved iii a monetary transaction if 24 (1) the person or cutity who owns or controls 25 such assets is x senior foreign politieal figure, or anyOLLATS A SLO. 34 1 immediate family member or close associate: of a 2 senior foreign politieal figure, as set forth in this 3 title ov the regulations promnlgated muler this title; 4 aud. 5 “(2) the aggregate value of the assets involved 6 in one or more such transactions is not less than 7 1,000,000. 8 “(b) SOURCE OF FUxDs.—No person shall knowingly 9 conceal, falsity, or misrepresent, or attempt to conveal, fal 10 sify, or misrepresent, from or to a financial institution, 1 a inaterial fact coneerning the souree of finds in a mone- 12 tary trausaction that— 13 “(1) involves an entity ford te be a primary 14 money lamdering concen under section 5318A or 15 the regulations promulgated ander this titles and 16 “(2) violates the prohibitions or conditions pre- 17 seribedl under section 5318A(b)(5) of this title or the 18 regulations pronmlgated under this title. 19 “{e) PENALTTEN—A person convicted of an offense 20 under subsection (a) or (b), or a conspirney to commit 21 such offense, shall be imprisoned for not more than 10 22. years, fined not move than $1,000,000, or both. 23 “(d) FORFEITURE, 4. “() CRIMINAL FORFEITURE.—OLL 386 we oo Cm daw 10 1 13 4 1s 16 u 18, 19 20 2 22. 2B 24 SLC. 35 (A) IN GRNERAL.—The court, i impos- ing sentence wuler subsection (¢), shall order that the defendant forfeit to the United States any’ property involved in the offense and any property traceable thereto, “(B) Proceptre.—The seizure, restraint, and forfeiture of property under this paragraph shall be governed by seetion 13 of the Con- trolled Substanees Act (21 U, '. 853). “(2) Civ, FoRFRrToRE.— “{A) IN GONBIAL.—Any property involved ina violation of subsection (a) or (b), or & cone spiracy to commit such violation, and any prop: erty traceable thereto may be seized and for feitedl to the United States “(B) PROCEDTRE.—Neizares and forfeit- ures under this paragraph shall he governed by the provisions of chapter 46 of title 15, relating to vivil forfeitures, except that sich duties, nnder the customs Taws deseribed in seetion 981(A) of title 18 given to the Seeretary of the Shall be performed by such officers, Treasury agents, and other persons as may be designated for that purpose by the Secretary of Homeland Seeutity or the Attorney GeneralOLLLT38 ALG, 36 1 + (0) DEFINTTIONS.—In this’ seetion— 2 “(1) the term “financial institution’ has the 3 meaning given tho term in section 5312(a)(2) of this 4 title; and 5 “(2) the teem ‘monetary transaction’ means the 6 deposit, withdrawal, transfer, or exchange, in or af 7 fecting interstate or foreign commeree, of finds or 8 a monetary instrament (as defined in svetion 9 1956(¢)(5) of title 18) hy, tlaough, or to a financial 10 institntion (as defined in seetion 1956 of title 18)— 1 Aj including any transaction that would 12 be a financial trimsaction under section 13 1956(¢)(4)(B) of title 18; and 14 “(B) not including any transaction nee 15 essary fo preserve a pervon’s right to represen 16 tation as gnavanteod by the Sixth Amendment 7 to the Constitution of the Unite States.”. 18, (b) TABLE OF SECTIONS —The table of sections for 19 subchapter IL of vhapter 53° of title 31, United States 20 Code, as amended by section 18 of this Aet, is amended 21 by adding at the end the tollowing: 54, Prohibition im conevatment of the soniew Of wes ie monetary teats setiens” 22 ‘SEC. 20, RULE OF CONSTRUCTION. 23 Nothing in this Act, or any amendment made by this 24 Act, shall be construed to apply to the authorized law en-Ouran LG 37 1 forcement, protective, or intelligence activities of the 2 United States or of am intelligence agency-of the United 3. States.