|
107th
CONGRESS
1st Session
H. R. 3162
IN THE SENATE OF THE UNITED STATES
October 24, 2001
AN ACT
To deter and punish terrorist acts
in the United States and around the world, to enhance law enforcement investigatory tools,
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 AND TABLE OF
CONTENTS.
| (a) SHORT TITLE- This
Act may be cited as the `Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001'. (b) TABLE OF CONTENTS- The table of contents for this Act is as
follows:
| Sec. 1. Short title and table of contents. Sec. 2.
Construction; severability. |
|
|
TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
|
| Sec. 101.
Counterterrorism fund. Sec. 102. Sense of
Congress condemning discrimination against Arab and Muslim Americans.
Sec. 103. Increased funding for the technical support
center at the Federal Bureau of Investigation.
Sec. 104. Requests for military assistance to enforce
prohibition in certain emergencies.
Sec. 105. Expansion of National Electronic Crime Task
Force Initiative.
Sec. 106. Presidential authority. |
|
TITLE II--ENHANCED SURVEILLANCE
PROCEDURES
|
| Sec. 201. Authority to
intercept wire, oral, and electronic communications relating to terrorism. Sec. 202. Authority to intercept wire, oral, and electronic
communications relating to computer fraud and abuse offenses.
Sec. 203. Authority to share criminal investigative
information.
Sec. 204. Clarification of intelligence exceptions from
limitations on interception and disclosure of wire, oral, and electronic communications.
Sec. 205. Employment of translators by the Federal
Bureau of Investigation.
Sec. 206. Roving surveillance authority under the
Foreign Intelligence Surveillance Act of 1978.
Sec. 207. Duration of FISA surveillance of non-United
States persons who are agents of a foreign power.
Sec. 208. Designation of judges.
Sec. 209. Seizure of voice-mail messages pursuant to
warrants.
Sec. 210. Scope of subpoenas for records of electronic
communications.
Sec. 211. Clarification of scope.
Sec. 212. Emergency disclosure of electronic
communications to protect life and limb.
Sec. 213. Authority for delaying notice of the execution
of a warrant.
Sec. 214. Pen register and trap and trace authority
under FISA.
Sec. 215. Access to records and other items under the
Foreign Intelligence Surveillance Act.
Sec. 216. Modification of authorities relating to use of
pen registers and trap and trace devices.
Sec. 217. Interception of computer trespasser
communications.
Sec. 218. Foreign intelligence information.
Sec. 219. Single-jurisdiction search warrants for
terrorism.
Sec. 220. Nationwide service of search warrants for
electronic evidence.
Sec. 221. Trade sanctions.
Sec. 222. Assistance to law enforcement agencies.
Sec. 223. Civil liability for certain unauthorized
disclosures.
Sec. 224. Sunset.
Sec. 225. Immunity for compliance with FISA wiretap. |
|
TITLE III--INTERNATIONAL MONEY
LAUNDERING ABATEMENT AND ANTI-TERRORIST FINANCING ACT OF 2001
|
| Sec. 301. Short title. Sec. 302. Findings and purposes.
Sec. 303. 4-year congressional review; expedited
consideration. |
|
Subtitle A--International Counter
Money Laundering and Related Measures
|
| Sec. 311. Special
measures for jurisdictions, financial institutions, or international transactions of
primary money laundering concern. Sec. 312.
Special due diligence for correspondent accounts and private banking accounts.
Sec. 313. Prohibition on United States correspondent
accounts with foreign shell banks.
Sec. 314. Cooperative efforts to deter money laundering.
Sec. 315. Inclusion of foreign corruption offenses as
money laundering crimes.
Sec. 316. Anti-terrorist forfeiture protection.
Sec. 317. Long-arm jurisdiction over foreign money
launderers.
Sec. 318. Laundering money through a foreign bank.
Sec. 319. Forfeiture of funds in United States interbank
accounts.
Sec. 320. Proceeds of foreign crimes.
Sec. 321. Financial institutions specified in subchapter
II of chapter 53 of title 31, United States code.
Sec. 322. Corporation represented by a fugitive.
Sec. 323. Enforcement of foreign judgments.
Sec. 324. Report and recommendation.
Sec. 325. Concentration accounts at financial
institutions.
Sec. 326. Verification of identification.
Sec. 327. Consideration of anti-money laundering record.
Sec. 328. International cooperation on identification of
originators of wire transfers.
Sec. 329. Criminal penalties.
Sec. 330. International cooperation in investigations of
money laundering, financial crimes, and the finances of terrorist groups. |
|
Subtitle B--Bank Secrecy Act
Amendments and Related Improvements
|
| Sec. 351. Amendments
relating to reporting of suspicious activities. Sec.
352. Anti-money laundering programs.
Sec. 353. Penalties for violations of geographic
targeting orders and certain recordkeeping requirements, and lengthening effective period
of geographic targeting orders.
Sec. 354. Anti-money laundering strategy.
Sec. 355. Authorization to include suspicions of illegal
activity in written employment references.
Sec. 356. Reporting of suspicious activities by
securities brokers and dealers; investment company study.
Sec. 357. Special report on administration of bank
secrecy provisions.
Sec. 358. Bank secrecy provisions and activities of
United States intelligence agencies to fight international terrorism.
Sec. 359. Reporting of suspicious activities by
underground banking systems.
Sec. 360. Use of authority of United States Executive
Directors.
Sec. 361. Financial crimes enforcement network.
Sec. 362. Establishment of highly secure network.
Sec. 363. Increase in civil and criminal penalties for
money laundering.
Sec. 364. Uniform protection authority for Federal
Reserve facilities.
Sec. 365. Reports relating to coins and currency
received in nonfinancial trade or business.
Sec. 366. Efficient use of currency transaction report
system. |
|
Subtitle C--Currency Crimes and
Protection
|
| Sec. 371. Bulk cash
smuggling into or out of the United States. Sec.
372. Forfeiture in currency reporting cases.
Sec. 373. Illegal money transmitting businesses.
Sec. 374. Counterfeiting domestic currency and
obligations.
Sec. 375. Counterfeiting foreign currency and
obligations.
Sec. 376. Laundering the proceeds of terrorism.
Sec. 377. Extraterritorial jurisdiction. |
|
TITLE IV--PROTECTING THE BORDER
Subtitle A--Protecting the Northern
Border
|
| Sec. 401. Ensuring
adequate personnel on the northern border. Sec.
402. Northern border personnel.
Sec. 403. Access by the Department of State and the INS
to certain identifying information in the criminal history records of visa applicants and
applicants for admission to the United States.
Sec. 404. Limited authority to pay overtime.
Sec. 405. Report on the integrated automated fingerprint
identification system for ports of entry and overseas consular posts. |
|
Subtitle B--Enhanced Immigration
Provisions
|
| Sec. 411. Definitions
relating to terrorism. Sec. 412. Mandatory
detention of suspected terrorists; habeas corpus; judicial review.
Sec. 413. Multilateral cooperation against terrorists.
Sec. 414. Visa integrity and security.
Sec. 415. Participation of Office of Homeland Security
on Entry-Exit Task Force.
Sec. 416. Foreign student monitoring program.
Sec. 417. Machine readable passports.
Sec. 418. Prevention of consulate shopping. |
|
Subtitle C--Preservation of
Immigration Benefits for Victims of Terrorism
|
| Sec. 421. Special
immigrant status. Sec. 422. Extension of filing
or reentry deadlines.
Sec. 423. Humanitarian relief for certain surviving
spouses and children.
Sec. 424. `Age-out' protection for children.
Sec. 425. Temporary administrative relief.
Sec. 426. Evidence of death, disability, or loss of
employment.
Sec. 427. No benefits to terrorists or family members of
terrorists.
Sec. 428. Definitions. |
|
TITLE V--REMOVING OBSTACLES TO
INVESTIGATING TERRORISM
|
| Sec. 501. Attorney
General's authority to pay rewards to combat terrorism. Sec. 502. Secretary of State's authority to pay rewards.
Sec. 503. DNA identification of terrorists and other
violent offenders.
Sec. 504. Coordination with law enforcement.
Sec. 505. Miscellaneous national security authorities.
Sec. 506. Extension of Secret Service jurisdiction.
Sec. 507. Disclosure of educational records.
Sec. 508. Disclosure of information from NCES surveys. |
|
TITLE VI--PROVIDING FOR VICTIMS OF
TERRORISM, PUBLIC SAFETY OFFICERS, AND THEIR FAMILIES
Subtitle A--Aid to Families of Public
Safety Officers
|
| Sec. 611. Expedited
payment for public safety officers involved in the prevention, investigation, rescue, or
recovery efforts related to a terrorist attack. Sec.
612. Technical correction with respect to expedited payments for heroic public safety
officers.
Sec. 613. Public safety officers benefit program payment
increase.
Sec. 614. Office of Justice programs. |
|
Subtitle B--Amendments to the Victims
of Crime Act of 1984
|
| Sec. 621. Crime victims
fund. Sec. 622. Crime victim compensation.
Sec. 623. Crime victim assistance.
Sec. 624. Victims of terrorism. |
|
TITLE VII--INCREASED INFORMATION
SHARING FOR CRITICAL INFRASTRUCTURE PROTECTION
|
| Sec. 711. Expansion of
regional information sharing system to facilitate Federal-State-local law enforcement
response related to terrorist attacks. |
|
TITLE VIII--STRENGTHENING THE CRIMINAL
LAWS AGAINST TERRORISM
|
| Sec. 801. Terrorist
attacks and other acts of violence against mass transportation systems. Sec. 802. Definition of domestic terrorism.
Sec. 803. Prohibition against harboring terrorists.
Sec. 804. Jurisdiction over crimes committed at U.S.
facilities abroad.
Sec. 805. Material support for terrorism.
Sec. 806. Assets of terrorist organizations.
Sec. 807. Technical clarification relating to provision
of material support to terrorism.
Sec. 808. Definition of Federal crime of terrorism.
Sec. 809. No statute of limitation for certain terrorism
offenses.
Sec. 810. Alternate maximum penalties for terrorism
offenses.
Sec. 811. Penalties for terrorist conspiracies.
Sec. 812. Post-release supervision of terrorists.
Sec. 813. Inclusion of acts of terrorism as racketeering
activity.
Sec. 814. Deterrence and prevention of cyberterrorism.
Sec. 815. Additional defense to civil actions relating
to preserving records in response to Government requests.
Sec. 816. Development and support of cybersecurity
forensic capabilities.
Sec. 817. Expansion of the biological weapons statute. |
|
TITLE IX--IMPROVED INTELLIGENCE
|
| Sec. 901.
Responsibilities of Director of Central Intelligence regarding foreign intelligence
collected under Foreign Intelligence Surveillance Act of 1978. Sec. 902. Inclusion of international terrorist activities within
scope of foreign intelligence under National Security Act of 1947.
Sec. 903. Sense of Congress on the establishment and
maintenance of intelligence relationships to acquire information on terrorists and
terrorist organizations.
Sec. 904. Temporary authority to defer submittal to
Congress of reports on intelligence and intelligence-related matters.
Sec. 905. Disclosure to Director of Central Intelligence
of foreign intelligence-related information with respect to criminal investigations.
Sec. 906. Foreign terrorist asset tracking center.
Sec. 907. National Virtual Translation Center.
Sec. 908. Training of government officials regarding
identification and use of foreign intelligence. |
|
TITLE X--MISCELLANEOUS
|
| Sec. 1001. Review of
the department of justice. Sec. 1002. Sense of
congress.
Sec. 1003. Definition of `electronic surveillance'.
Sec. 1004. Venue in money laundering cases.
Sec. 1005. First responders assistance act.
Sec. 1006. Inadmissibility of aliens engaged in money
laundering.
Sec. 1007. Authorization of funds for dea police
training in south and central asia.
Sec. 1008. Feasibility study on use of biometric
identifier scanning system with access to the fbi integrated automated fingerprint
identification system at overseas consular posts and points of entry to the United States.
Sec. 1009. Study of access.
Sec. 1010. Temporary authority to contract with local
and State governments for performance of security functions at United States military
installations.
Sec. 1011. Crimes against charitable americans.
Sec. 1012. Limitation on issuance of hazmat licenses.
Sec. 1013. Expressing the sense of the senate concerning
the provision of funding for bioterrorism preparedness and response.
Sec. 1014. Grant program for State and local domestic
preparedness support.
Sec. 1015. Expansion and reauthorization of the crime
identification technology act for antiterrorism grants to States and localities.
Sec. 1016. Critical infrastructures protection. |
|
SEC. 2. CONSTRUCTION; SEVERABILITY.
| Any provision of this
Act held to be invalid or unenforceable by its terms, or as applied to any person or
circumstance, shall be construed so as to give it the maximum effect permitted by law,
unless such holding shall be one of utter invalidity or unenforceability, in which event
such provision shall be deemed severable from this Act and shall not affect the remainder
thereof or the application of such provision to other persons not similarly situated or to
other, dissimilar circumstances. |
TITLE
I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
SEC. 101. COUNTERTERRORISM FUND.
| (a) ESTABLISHMENT;
AVAILABILITY- There is hereby established in the Treasury of the United States a separate
fund to be known as the `Counterterrorism Fund', amounts in which shall remain available
without fiscal year limitation--
| (1) to reimburse any Department of Justice component
for any costs incurred in connection with--
| (A) reestablishing the operational capability of an
office or facility that has been damaged or destroyed as the result of any domestic or
international terrorism incident; (B) providing support to counter, investigate, or
prosecute domestic or international terrorism, including, without limitation, paying
rewards in connection with these activities; and
(C) conducting terrorism threat assessments of Federal agencies and their facilities;
and |
|
(2) to reimburse any department or agency of the
Federal Government for any costs incurred in connection with detaining in foreign
countries individuals accused of acts of terrorism that violate the laws of the United
States. |
(b) NO EFFECT ON PRIOR APPROPRIATIONS- Subsection (a)
shall not be construed to affect the amount or availability of any appropriation to the
Counterterrorism Fund made before the date of the enactment of this Act.
SEC. 102. SENSE OF CONGRESS CONDEMNING
DISCRIMINATION AGAINST ARAB AND MUSLIM AMERICANS.
| (a) FINDINGS- Congress
makes the following findings:
| (1) Arab Americans, Muslim Americans, and Americans
from South Asia play a vital role in our Nation and are entitled to nothing less than the
full rights of every American. (2) The acts of violence that have been taken against
Arab and Muslim Americans since the September 11, 2001, attacks against the United States
should be and are condemned by all Americans who value freedom.
(3) The concept of individual responsibility for wrongdoing is sacrosanct in American
society, and applies equally to all religious, racial, and ethnic groups.
(4) When American citizens commit acts of violence against those who are, or are
perceived to be, of Arab or Muslim descent, they should be punished to the full extent of
the law.
(5) Muslim Americans have become so fearful of harassment that many Muslim women are
changing the way they dress to avoid becoming targets.
(6) Many Arab Americans and Muslim Americans have acted heroically during the attacks
on the United States, including Mohammed Salman Hamdani, a 23-year-old New Yorker of
Pakistani descent, who is believed to have gone to the World Trade Center to offer rescue
assistance and is now missing. |
|
(b) SENSE OF CONGRESS- It is the sense of Congress
that--
| (1) the civil rights and civil liberties of all
Americans, including Arab Americans, Muslim Americans, and Americans from South Asia, must
be protected, and that every effort must be taken to preserve their safety; (2) any
acts of violence or discrimination against any Americans be condemned; and
(3) the Nation is called upon to recognize the patriotism of fellow citizens from all
ethnic, racial, and religious backgrounds. |
SEC. 103. INCREASED FUNDING FOR THE
TECHNICAL SUPPORT CENTER AT THE FEDERAL BUREAU OF INVESTIGATION.
| There are authorized to
be appropriated for the Technical Support Center established in section 811 of the
Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104-132) to help meet
the demands for activities to combat terrorism and support and enhance the technical
support and tactical operations of the FBI, $200,000,000 for each of the fiscal years
2002, 2003, and 2004. |
SEC. 104. REQUESTS FOR MILITARY
ASSISTANCE TO ENFORCE PROHIBITION IN CERTAIN EMERGENCIES.
| Section 2332e of title
18, United States Code, is amended--
| (1) by striking `2332c' and inserting `2332a'; and (2)
by striking `chemical'. |
|
SEC. 105. EXPANSION OF NATIONAL
ELECTRONIC CRIME TASK FORCE INITIATIVE.
| The Director of the
United States Secret Service shall take appropriate actions to develop a national network
of electronic crime task forces, based on the New York Electronic Crimes Task Force model,
throughout the United States, for the purpose of preventing, detecting, and investigating
various forms of electronic crimes, including potential terrorist attacks against critical
infrastructure and financial payment systems. |
SEC. 106. PRESIDENTIAL AUTHORITY.
| Section 203 of the
International Emergency Powers Act (50 U.S.C. 1702) is amended--
| (1) in subsection (a)(1)--
| (A) at the end of subparagraph (A) (flush to that
subparagraph), by striking `; and' and inserting a comma and the following: |
|
`by any person, or with respect to any property,
subject to the jurisdiction of the United States;';
| (B) in subparagraph (B)--
| (i) by inserting `, block during the pendency of an
investigation' after `investigate'; and (ii) by striking `interest;' and inserting
`interest by any person, or with respect to any property, subject to the jurisdiction of
the United States; and'; |
|
(C) by striking `by any person, or with respect to
any property, subject to the jurisdiction of the United States`; and
(D) by inserting at the end the following:
`(C) when the United States is engaged in armed
hostilities or has been attacked by a foreign country or foreign nationals, confiscate any
property, subject to the jurisdiction of the United States, of any foreign person, foreign
organization, or foreign country that he determines has planned, authorized, aided, or
engaged in such hostilities or attacks against the United States; and all right, title,
and interest in any property so confiscated shall vest, when, as, and upon the terms
directed by the President, in such agency or person as the President may designate from
time to time, and upon such terms and conditions as the President may prescribe, such
interest or property shall be held, used, administered, liquidated, sold, or otherwise
dealt with in the interest of and for the benefit of the United States, and such
designated agency or person may perform any and all acts incident to the accomplishment or
furtherance of these purposes.'; and |
(2) by inserting at the end the following:
`(c) CLASSIFIED INFORMATION- In any judicial review
of a determination made under this section, if the determination was based on classified
information (as defined in section 1(a) of the Classified Information Procedures Act) such
information may be submitted to the reviewing court ex parte and in camera. This
subsection does not confer or imply any right to judicial review.'.
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
SEC. 201. AUTHORITY TO INTERCEPT WIRE,
ORAL, AND ELECTRONIC COMMUNICATIONS RELATING TO TERRORISM.
| Section 2516(1) of
title 18, United States Code, is amended--
| (1) by redesignating paragraph (p), as so redesignated
by section 434(2) of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law
104-132; 110 Stat. 1274), as paragraph (r); and (2) by inserting after paragraph (p),
as so redesignated by section 201(3) of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (division C of Public Law 104-208; 110 Stat. 3009-565), the
following new paragraph: |
|
`(q) any criminal violation of section 229 (relating
to chemical weapons); or sections 2332, 2332a, 2332b, 2332d, 2339A, or 2339B of this title
(relating to terrorism); or'.
SEC. 202. AUTHORITY TO INTERCEPT WIRE,
ORAL, AND ELECTRONIC COMMUNICATIONS RELATING TO COMPUTER FRAUD AND ABUSE OFFENSES.
| Section 2516(1)(c) of
title 18, United States Code, is amended by striking `and section 1341 (relating to mail
fraud),' and inserting `section 1341 (relating to mail fraud), a felony violation of
section 1030 (relating to computer fraud and abuse),'. |
SEC. 203. AUTHORITY TO SHARE CRIMINAL
INVESTIGATIVE INFORMATION.
| (a) AUTHORITY TO SHARE
GRAND JURY INFORMATION-
| (1) IN GENERAL- Rule 6(e)(3)(C) of the Federal Rules
of Criminal Procedure is amended to read as follows:
| `(C)(i) Disclosure otherwise prohibited by this rule
of matters occurring before the grand jury may also be made--
| `(I) when so directed by a court preliminarily to or
in connection with a judicial proceeding; `(II) when permitted by a court at the
request of the defendant, upon a showing that grounds may exist for a motion to dismiss
the indictment because of matters occurring before the grand jury;
`(III) when the disclosure is made by an attorney for the government to another Federal
grand jury;
`(IV) when permitted by a court at the request of an attorney for the government, upon
a showing that such matters may disclose a violation of state criminal law, to an
appropriate official of a state or subdivision of a state for the purpose of enforcing
such law; or
`(V) when the matters involve foreign intelligence or counterintelligence (as defined
in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)), or foreign
intelligence information (as defined in clause (iv) of this subparagraph), to any Federal
law enforcement, intelligence, protective, immigration, national defense, or national
security official in order to assist the official receiving that information in the
performance of his official duties. |
|
`(ii) If the court orders disclosure of matters
occurring before the grand jury, the disclosure shall be made in such manner, at such
time, and under such conditions as the court may direct.
`(iii) Any Federal official to whom information is
disclosed pursuant to clause (i)(V) of this subparagraph may use that information only as
necessary in the conduct of that person's official duties subject to any limitations on
the unauthorized disclosure of such information. Within a reasonable time after such
disclosure, an attorney for the government shall file under seal a notice with the court
stating the fact that such information was disclosed and the departments, agencies, or
entities to which the disclosure was made.
`(iv) In clause (i)(V) of this subparagraph, the term
`foreign intelligence information' means--
| `(I) information, whether or not concerning a United
States person, that relates to the ability of the United States to protect against--
| `(aa) actual or potential attack or other grave
hostile acts of-a foreign power or an agent of a foreign power; `(bb) sabotage or
international terrorism by a foreign power or an agent of a foreign power; or
`(cc) clandestine intelligence activities by an intelligence service or network of a
foreign power or by an agent of foreign power; or |
|
`(II) information, whether or not concerning a United
States person, with respect to a foreign power or foreign territory that relates to--
| `(aa) the national defense or the security of the
United States; or `(bb) the conduct of the foreign affairs of the United States.'. |
|
|
(2) CONFORMING AMENDMENT- Rule 6(e)(3)(D) of the
Federal Rules of Criminal Procedure is amended by striking `(e)(3)(C)(i)' and inserting
`(e)(3)(C)(i)(I)'.
(b) AUTHORITY TO SHARE ELECTRONIC, WIRE, AND ORAL
INTERCEPTION INFORMATION-
| (1) LAW ENFORCEMENT- Section 2517 of title 18, United
States Code, is amended by inserting at the end the following: |
`(6) Any investigative or law enforcement officer, or
attorney for the Government, who by any means authorized by this chapter, has obtained
knowledge of the contents of any wire, oral, or electronic communication, or evidence
derived therefrom, may disclose such contents to any other Federal law enforcement,
intelligence, protective, immigration, national defense, or national security official to
the extent that such contents include foreign intelligence or counterintelligence (as
defined in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)), or foreign
intelligence information (as defined in subsection (19) of section 2510 of this title), to
assist the official who is to receive that information in the performance of his official
duties. Any Federal official who receives information pursuant to this provision may use
that information only as necessary in the conduct of that person's official duties subject
to any limitations on the unauthorized disclosure of such information.'.
| (2) DEFINITION- Section 2510 of title 18, United
States Code, is amended by--
| (A) in paragraph (17), by striking `and' after the
semicolon; (B) in paragraph (18), by striking the period and inserting `; and'; and
(C) by inserting at the end the following: |
|
`(19) `foreign intelligence information' means--
| `(A) information, whether or not concerning a United
States person, that relates to the ability of the United States to protect against--
| `(i) actual or potential attack or other grave hostile
acts of a foreign power or an agent of a foreign power; `(ii) sabotage or international
terrorism by a foreign power or an agent of a foreign power; or
`(iii) clandestine intelligence activities by an intelligence service or network of a
foreign power or by an agent of a foreign power; or |
|
`(B) information, whether or not concerning a United
States person, with respect to a foreign power or foreign territory that relates to--
| `(i) the national defense or the security of the
United States; or `(ii) the conduct of the foreign affairs of the United States.'. |
(c) PROCEDURES- The Attorney General shall establish
procedures for the disclosure of information pursuant to section 2517(6) and Rule
6(e)(3)(C)(i)(V) of the Federal Rules of Criminal Procedure that identifies a United
States person, as defined in section 101 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1801)).
(d) FOREIGN INTELLIGENCE INFORMATION-
| (1) IN GENERAL- Notwithstanding any other provision of
law, it shall be lawful for foreign intelligence or counterintelligence (as defined in
section 3 of the National Security Act of 1947 (50 U.S.C. 401a)) or foreign intelligence
information obtained as part of a criminal investigation to be disclosed to any Federal
law enforcement, intelligence, protective, immigration, national defense, or national
security official in order to assist the official receiving that information in the
performance of his official duties. Any Federal official who receives information pursuant
to this provision may use that information only as necessary in the conduct of that
person's official duties subject to any limitations on the unauthorized disclosure of such
information. (2) DEFINITION- In this subsection, the term `foreign intelligence
information' means--
| (A) information, whether or not concerning a United
States person, that relates to the ability of the United States to protect against--
| (i) actual or potential attack or other grave hostile
acts of a foreign power or an agent of a foreign power; (ii) sabotage or international
terrorism by a foreign power or an agent of a foreign power; or
(iii) clandestine intelligence activities by an intelligence service or network of a
foreign power or by an agent of a foreign power; or |
|
(B) information, whether or not concerning a United
States person, with respect to a foreign power or foreign territory that relates to--
| (i) the national defense or the security of the United
States; or (ii) the conduct of the foreign affairs of the United States. |
|
SEC. 204. CLARIFICATION OF
INTELLIGENCE EXCEPTIONS FROM LIMITATIONS ON INTERCEPTION AND DISCLOSURE OF WIRE, ORAL, AND
ELECTRONIC COMMUNICATIONS.
| Section 2511(2)(f) of
title 18, United States Code, is amended--
| (1) by striking `this chapter or chapter 121' and
inserting `this chapter or chapter 121 or 206 of this title'; and (2) by striking `wire
and oral' and inserting `wire, oral, and electronic'. |
|
SEC. 205. EMPLOYMENT OF TRANSLATORS BY
THE FEDERAL BUREAU OF INVESTIGATION.
| (a) AUTHORITY- The
Director of the Federal Bureau of Investigation is authorized to expedite the employment
of personnel as translators to support counterterrorism investigations and operations
without regard to applicable Federal personnel requirements and limitations. (b) SECURITY REQUIREMENTS- The Director of the Federal Bureau of
Investigation shall establish such security requirements as are necessary for the
personnel employed as translators under subsection (a).
(c) REPORT- The Attorney General shall report to the
Committees on the Judiciary of the House of Representatives and the Senate on--
| (1) the number of translators employed by the FBI and
other components of the Department of Justice; (2) any legal or practical impediments
to using translators employed by other Federal, State, or local agencies, on a full,
part-time, or shared basis; and
(3) the needs of the FBI for specific translation services in certain languages, and
recommendations for meeting those needs. |
|
SEC. 206. ROVING SURVEILLANCE
AUTHORITY UNDER THE FOREIGN INTELLIGENCE SURVEILLANCE ACT OF 1978.
| Section 105(c)(2)(B) of
the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(c)(2)(B)) is amended by
inserting `, or in circumstances where the Court finds that the actions of the target of
the application may have the effect of thwarting the identification of a specified person,
such other persons,' after `specified person'. |
SEC. 207. DURATION OF FISA
SURVEILLANCE OF NON-UNITED STATES PERSONS WHO ARE AGENTS OF A FOREIGN POWER.
| (a) DURATION -
| (1) SURVEILLANCE- Section 105(e)(1) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(e)(1)) is amended by--
| (A) inserting `(A)' after `except that'; and (B)
inserting before the period the following: `, and (B) an order under this Act for a
surveillance targeted against an agent of a foreign power, as defined in section
101(b)(1)(A) may be for the period specified in the application or for 120 days, whichever
is less'. |
|
|
(2) PHYSICAL SEARCH- Section 304(d)(1) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(1)) is amended by--
| (A) striking `forty-five' and inserting `90'; (B)
inserting `(A)' after `except that'; and
(C) inserting before the period the following: `, and (B) an order under this section
for a physical search targeted against an agent of a foreign power as defined in section
101(b)(1)(A) may be for the period specified in the application or for 120 days, whichever
is less'. |
(b) EXTENSION-
| (1) IN GENERAL- Section 105(d)(2) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(d)(2)) is amended by--
| (A) inserting `(A)' after `except that'; and (B)
inserting before the period the following: `, and (B) an extension of an order under this
Act for a surveillance targeted against an agent of a foreign power as defined in section
101(b)(1)(A) may be for a period not to exceed 1 year'. |
|
(2) DEFINED TERM- Section 304(d)(2) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(2) is amended by inserting after
`not a United States person,' the following: `or against an agent of a foreign power as
defined in section 101(b)(1)(A),'.
SEC. 208. DESIGNATION OF JUDGES.
| Section 103(a) of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1803(a)) is amended by--
| (1) striking `seven district court judges' and
inserting `11 district court judges'; and (2) inserting `of whom no fewer than 3 shall
reside within 20 miles of the District of Columbia' after `circuits'. |
|
SEC. 209. SEIZURE OF VOICE-MAIL
MESSAGES PURSUANT TO WARRANTS.
| Title 18, United States
Code, is amended--
| (1) in section 2510--
| (A) in paragraph (1), by striking beginning with `and
such' and all that follows through `communication'; and (B) in paragraph (14), by
inserting `wire or' after `transmission of'; and |
|
(2) in subsections (a) and (b) of section 2703--
| (A) by striking `CONTENTS OF ELECTRONIC' and inserting
`CONTENTS OF WIRE OR ELECTRONIC' each place it appears; (B) by striking `contents of an
electronic' and inserting `contents of a wire or electronic' each place it appears; and
(C) by striking `any electronic' and inserting `any wire or electronic' each place it
appears. |
|
SEC. 210. SCOPE OF SUBPOENAS FOR
RECORDS OF ELECTRONIC COMMUNICATIONS.
| Section 2703(c)(2) of
title 18, United States Code, as redesignated by section 212, is amended--
| (1) by striking `entity the name, address, local and
long distance telephone toll billing records, telephone number or other subscriber number
or identity, and length of service of a subscriber' and inserting the following: `entity
the-- `(A) name;
`(B) address;
`(C) local and long distance telephone connection records, or records of session times
and durations;
`(D) length of service (including start date) and types of service utilized;
`(E) telephone or instrument number or other subscriber number or identity, including
any temporarily assigned network address; and
`(F) means and source of payment for such service (including any credit card or bank
account number), |
|
of a subscriber'; and
| (2) by striking `and the types of services the
subscriber or customer utilized,'. |
SEC. 211. CLARIFICATION OF SCOPE.
| Section 631 of the
Communications Act of 1934 (47 U.S.C. 551) is amended--
| (1) in subsection (c)(2)--
| (A) in subparagraph (B), by striking `or'; (B) in
subparagraph (C), by striking the period at the end and inserting `; or'; and
(C) by inserting at the end the following: |
|
`(D) to a government entity as authorized under
chapters 119, 121, or 206 of title 18, United States Code, except that such disclosure
shall not include records revealing cable subscriber selection of video programming from a
cable operator.'; and
(2) in subsection (h), by striking `A governmental
entity' and inserting `Except as provided in subsection (c)(2)(D), a governmental entity'. |
SEC. 212. EMERGENCY DISCLOSURE OF
ELECTRONIC COMMUNICATIONS TO PROTECT LIFE AND LIMB.
| (a) DISCLOSURE OF
CONTENTS-
| (1) IN GENERAL- Section 2702 of title 18, United
States Code, is amended--
| (A) by striking the section heading and inserting the
following: |
|
|
`Sec. 2702. Voluntary disclosure of
customer communications or records';
|
| (B) in subsection (a)--
| (i) in paragraph (2)(A), by striking `and' at the end; (ii)
in paragraph (2)(B), by striking the period and inserting `; and'; and
(iii) by inserting after paragraph (2) the following: |
|
|
|
`(3) a provider of remote computing service or
electronic communication service to the public shall not knowingly divulge a record or
other information pertaining to a subscriber to or customer of such service (not including
the contents of communications covered by paragraph (1) or (2)) to any governmental
entity.';
| (C) in subsection (b), by striking `EXCEPTIONS- A
person or entity' and inserting `EXCEPTIONS FOR DISCLOSURE OF COMMUNICATIONS- A provider
described in subsection (a)'; (D) in subsection (b)(6)--
| (i) in subparagraph (A)(ii), by striking `or'; (ii)
in subparagraph (B), by striking the period and inserting `; or'; and
(iii) by adding after subparagraph (B) the following: |
|
`(C) if the provider reasonably believes that an
emergency involving immediate danger of death or serious physical injury to any person
requires disclosure of the information without delay.'; and
(E) by inserting after subsection (b) the following: |
`(c) EXCEPTIONS FOR DISCLOSURE OF CUSTOMER RECORDS- A
provider described in subsection (a) may divulge a record or other information pertaining
to a subscriber to or customer of such service (not including the contents of
communications covered by subsection (a)(1) or (a)(2))--
| `(1) as otherwise authorized in section 2703; `(2)
with the lawful consent of the customer or subscriber;
`(3) as may be necessarily incident to the rendition of the service or to the
protection of the rights or property of the provider of that service;
`(4) to a governmental entity, if the provider reasonably believes that an emergency
involving immediate danger of death or serious physical injury to any person justifies
disclosure of the information; or
`(5) to any person other than a governmental entity.'.
(2) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for chapter 121 of title
18, United States Code, is amended by striking the item relating to section 2702 and
inserting the following:
`2702. Voluntary disclosure of customer communications or records.'. |
(b) REQUIREMENTS FOR GOVERNMENT ACCESS-
| (1) IN GENERAL- Section 2703 of title 18, United
States Code, is amended--
| (A) by striking the section heading and inserting the
following: |
|
`Sec. 2703. Required disclosure of
customer communications or records';
|
| (B) in subsection (c)
by redesignating paragraph (2) as paragraph (3); (C)
in subsection (c)(1)--
| (i) by striking `(A) Except as provided in subparagraph
(B), a provider of electronic communication service or remote computing service may' and
inserting `A governmental entity may require a provider of electronic communication service or
remote computing service to'; (ii) by striking `covered by subsection (a) or (b) of this
section) to any person other than a governmental entity. |
|
`(B) A provider of electronic communication service
or remote computing service shall disclose a record or other information pertaining to a
subscriber to or customer of such service (not including the contents of communications
covered by subsection (a) or (b) of this section) to a governmental entity' and inserting
`)';
| (iii) by redesignating subparagraph (C) as paragraph
(2); (iv) by redesignating clauses (i), (ii), (iii), and (iv) as subparagraphs (A),
(B), (C), and (D), respectively;
(v) in subparagraph (D) (as redesignated) by striking the period and inserting `; or';
and
(vi) by inserting after subparagraph (D) (as redesignated) the following: |
|
`(E) seeks information under paragraph (2).'; and
(D) in paragraph (2) (as redesignated) by striking
`subparagraph (B)' and insert `paragraph (1)'. |
|
(2) TECHNICAL AND CONFORMING AMENDMENT- The table of
sections for chapter 121 of title 18, United States Code, is amended by striking the item
relating to section 2703 and inserting the following:
`2703. Required disclosure of customer communications
or records.'.
SEC. 213. AUTHORITY FOR DELAYING
NOTICE OF THE EXECUTION OF A WARRANT.
| Section 3103a of title
18, United States Code, is amended--
| (1) by inserting `(a) IN GENERAL- ' before `In
addition'; and (2) by adding at the end the following: |
|
`(b) DELAY- With respect to the issuance of any
warrant or court order under this section, or any other rule of law, to search for and
seize any property or material that constitutes evidence of a criminal offense in
violation of the laws of the United States, any notice required, or that may be required,
to be given may be delayed if--
| `(1) the court finds reasonable cause to believe that
providing immediate notification of the execution of the warrant may have an adverse
result (as defined in section 2705); `(2) the warrant prohibits the seizure of any
tangible property, any wire or electronic communication (as defined in section 2510), or,
except as expressly provided in chapter 121, any stored wire or electronic information,
except where the court finds reasonable necessity for the seizure; and
`(3) the warrant provides for the giving of such notice within a reasonable period of
its execution, which period may thereafter be extended by the court for good cause
shown.'. |
SEC. 214. PEN REGISTER AND TRAP AND
TRACE AUTHORITY UNDER FISA.
| (a) APPLICATIONS AND
ORDERS- Section 402 of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1842)
is amended--
| (1) in subsection (a)(1), by striking `for any
investigation to gather foreign intelligence information or information concerning
international terrorism' and inserting `for any investigation to obtain foreign
intelligence information not concerning a United States person or to protect against
international terrorism or clandestine intelligence activities, provided that such
investigation of a United States person is not conducted solely upon the basis of
activities protected by the first amendment to the Constitution'; (2) by amending
subsection (c)(2) to read as follows:
`(2) a certification by the applicant that the information likely to be obtained is
foreign intelligence information not concerning a United States person or is relevant to
an ongoing investigation to protect against international terrorism or clandestine
intelligence activities, provided that such investigation of a United States person is not
conducted solely upon the basis of activities protected by the first amendment to the
Constitution.';
(3) by striking subsection (c)(3); and
(4) by amending subsection (d)(2)(A) to read as follows:
| `(A) shall specify--
| `(i) the identity, if known, of the person who is the
subject of the investigation; `(ii) the identity, if known, of the person to whom is
leased or in whose name is listed the telephone line or other facility to which the pen
register or trap and trace device is to be attached or applied;
`(iii) the attributes of the communications to which the order applies, such as the
number or other identifier, and, if known, the location of the telephone line or other
facility to which the pen register or trap and trace device is to be attached or applied
and, in the case of a trap and trace device, the geographic limits of the trap and trace
order.'. |
|
|
|
(b) AUTHORIZATION DURING EMERGENCIES- Section 403 of
the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1843) is amended--
| (1) in subsection (a), by striking `foreign
intelligence information or information concerning international terrorism' and inserting
`foreign intelligence information not concerning a United States person or information to
protect against international terrorism or clandestine intelligence activities, provided
that such investigation of a United States person is not conducted solely upon the basis
of activities protected by the first amendment to the Constitution'; and (2) in
subsection (b)(1), by striking `foreign intelligence information or information concerning
international terrorism' and inserting `foreign intelligence information not concerning a
United States person or information to protect against international terrorism or
clandestine intelligence activities, provided that such investigation of a United States
person is not conducted solely upon the basis of activities protected by the first
amendment to the Constitution'. |
SEC. 215. ACCESS TO RECORDS AND OTHER
ITEMS UNDER THE FOREIGN INTELLIGENCE SURVEILLANCE ACT.
| Title V of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1861 et seq.) is amended by striking
sections 501 through 503 and inserting the following: |
`SEC. 501. ACCESS TO CERTAIN BUSINESS
RECORDS FOR FOREIGN INTELLIGENCE AND INTERNATIONAL TERRORISM INVESTIGATIONS.
| `(a)(1) The Director of
the Federal Bureau of Investigation or a designee of the Director (whose rank shall be no
lower than Assistant Special Agent in Charge) may make an application for an order
requiring the production of any tangible things (including books, records, papers,
documents, and other items) for an investigation to protect against international
terrorism or clandestine intelligence activities, provided that such investigation of a
United States person is not conducted solely upon the basis of activities protected by the
first amendment to the Constitution. `(2) An
investigation conducted under this section shall--
| `(A) be conducted under guidelines approved by the
Attorney General under Executive Order 12333 (or a successor order); and `(B) not be
conducted of a United States person solely upon the basis of activities protected by the
first amendment to the Constitution of the United States. |
|
`(b) Each application under this section--
| `(1) shall be made to--
| `(A) a judge of the court established by section
103(a); or `(B) a United States Magistrate Judge under chapter 43 of title 28, United
States Code, who is publicly designated by the Chief Justice of the United States to have
the power to hear applications and grant orders for the production of tangible things
under this section on behalf of a judge of that court; and |
|
`(2) shall specify that the records concerned are
sought for an authorized investigation conducted in accordance with subsection (a)(2) to
protect against international terrorism or clandestine intelligence activities.
`(c)(1) Upon an application made pursuant to this
section, the judge shall enter an ex parte order as requested, or as modified, approving
the release of records if the judge finds that the application meets the requirements of
this section.
`(2) An order under this subsection shall not
disclose that it is issued for purposes of an investigation described in subsection (a).
`(d) No person shall disclose to any other person
(other than those persons necessary to produce the tangible things under this section)
that the Federal Bureau of Investigation has sought or obtained tangible things under this
section.
`(e) A person who, in good faith, produces tangible
things under an order pursuant to this section shall not be liable to any other person for
such production. Such production shall not be deemed to constitute a waiver of any
privilege in any other proceeding or context.
`SEC. 502. CONGRESSIONAL OVERSIGHT.
| `(a) On a semiannual
basis, the Attorney General shall fully inform the Permanent Select Committee on
Intelligence of the House of Representatives and the Select Committee on Intelligence of
the Senate concerning all requests for the production of tangible things under section
402. `(b) On a semiannual basis, the Attorney
General shall provide to the Committees on the Judiciary of the House of Representatives
and the Senate a report setting forth with respect to the preceding 6-month period--
| `(1) the total number of applications made for orders
approving requests for the production of tangible things under section 402; and `(2)
the total number of such orders either granted, modified, or denied.'. |
|
SEC. 216. MODIFICATION OF AUTHORITIES
RELATING TO USE OF PEN REGISTERS AND TRAP AND TRACE DEVICES.
| (a) GENERAL
LIMITATIONS- Section 3121(c) of title 18, United States Code, is amended--
| (1) by inserting `or trap and trace device' after `pen
register'; (2) by inserting `, routing, addressing,' after `dialing'; and
(3) by striking `call processing' and inserting `the processing and transmitting of
wire or electronic communications so as not to include the contents of any wire or
electronic communications'. |
|
(b) ISSUANCE OF ORDERS-
| (1) IN GENERAL- Section 3123(a) of title 18, United
States Code, is amended to read as follows: |
`(a) IN GENERAL-
| `(1) ATTORNEY FOR THE GOVERNMENT- Upon an application
made under section 3122(a)(1), the court shall enter an ex parte order authorizing the
installation and use of a pen register or trap and trace device anywhere within the United
States, if the court finds that the attorney for the Government has certified to the court
that the information likely to be obtained by such installation and use is relevant to an
ongoing criminal investigation. The order, upon service of that order, shall apply to any
person or entity providing wire or electronic communication service in the United States
whose assistance may facilitate the execution of the order. Whenever such an order is
served on any person or entity not specifically named in the order, upon request of such
person or entity, the attorney for the Government or law enforcement or investigative
officer that is serving the order shall provide written or electronic certification that
the order applies to the person or entity being served. `(2) STATE INVESTIGATIVE OR LAW
ENFORCEMENT OFFICER- Upon an application made under section 3122(a)(2), the court shall
enter an ex parte order authorizing the installation and use of a pen register or trap and
trace device within the jurisdiction of the court, if the court finds that the State law
enforcement or investigative officer has certified to the court that the information
likely to be obtained by such installation and use is relevant to an ongoing criminal
investigation.
`(3)(A) Where the law enforcement agency implementing an ex parte order under this
subsection seeks to do so by installing and using its own pen register or trap and trace
device on a packet-switched data network of a provider of electronic communication service
to the public, the agency shall ensure that a record will be maintained which will
identify--
| `(i) any officer or officers who installed the device
and any officer or officers who accessed the device to obtain information from the
network; `(ii) the date and time the device was installed, the date and time the device
was uninstalled, and the date, time, and duration of each time the device is accessed to
obtain information;
`(iii) the configuration of the device at the time of its installation and any
subsequent modification thereof; and
`(iv) any information which has been collected by the device. |
|
To the extent that the pen register or trap and trace
device can be set automatically to record this information electronically, the record
shall be maintained electronically throughout the installation and use of such device.
`(B) The record maintained under subparagraph (A)
shall be provided ex parte and under seal to the court which entered the ex parte order
authorizing the installation and use of the device within 30 days after termination of the
order (including any extensions thereof).'.
(2) CONTENTS OF ORDER- Section 3123(b)(1) of title
18, United States Code, is amended--
| (A) in subparagraph (A)--
| (i) by inserting `or other facility' after `telephone
line'; and (ii) by inserting before the semicolon at the end `or applied'; and |
|
(B) by striking subparagraph (C) and inserting the
following:
`(C) the attributes of the communications to which
the order applies, including the number or other identifier and, if known, the location of
the telephone line or other facility to which the pen register or trap and trace device is
to be attached or applied, and, in the case of an order authorizing installation and use
of a trap and trace device under subsection (a)(2), the geographic limits of the order;
and'.
(3) NONDISCLOSURE REQUIREMENTS- Section 3123(d)(2) of
title 18, United States Code, is amended--
| (A) by inserting `or other facility' after `the line';
and (B) by striking `, or who has been ordered by the court' and inserting `or applied,
or who is obligated by the order'. |
(c) DEFINITIONS-
| (1) COURT OF COMPETENT JURISDICTION- Section 3127(2)
of title 18, United States Code, is amended by striking subparagraph (A) and inserting the
following:
| `(A) any district court of the United States
(including a magistrate judge of such a court) or any United States court of appeals
having jurisdiction over the offense being investigated; or'. |
|
(2) PEN REGISTER- Section 3127(3) of title 18, United
States Code, is amended--
| (A) by striking `electronic or other impulses' and all
that follows through `is attached' and inserting `dialing, routing, addressing, or
signaling information transmitted by an instrument or facility from which a wire or
electronic communication is transmitted, provided, however, that such information shall
not include the contents of any communication'; and (B) by inserting `or process' after
`device' each place it appears. |
(3) TRAP AND TRACE DEVICE- Section 3127(4) of title
18, United States Code, is amended--
| (A) by striking `of an instrument' and all that
follows through the semicolon and inserting `or other dialing, routing, addressing, and
signaling information reasonably likely to identify the source of a wire or electronic
communication, provided, however, that such information shall not include the contents of
any communication;'; and (B) by inserting `or process' after `a device'. |
(4) CONFORMING AMENDMENT- Section 3127(1) of title
18, United States Code, is amended--
| (A) by striking `and'; and (B) by inserting `, and
`contents' after `electronic communication service'. |
(5) TECHNICAL AMENDMENT- Section 3124(d) of title 18,
United States Code, is amended by striking `the terms of'.
(6) CONFORMING AMENDMENT- Section 3124(b) of title
18, United States Code, is amended by inserting `or other facility' after `the appropriate
line'.
SEC. 217. INTERCEPTION OF COMPUTER
TRESPASSER COMMUNICATIONS.
| Chapter 119 of title
18, United States Code, is amended--
| (1) in section 2510--
| (A) in paragraph (18), by striking `and' at the end; (B)
in paragraph (19), by striking the period and inserting a semicolon; and
(C) by inserting after paragraph (19) the following: |
|
`(20) `protected computer' has the meaning set forth
in section 1030; and
`(21) `computer trespasser'--
| `(A) means a person who accesses a protected computer
without authorization and thus has no reasonable expectation of privacy in any
communication transmitted to, through, or from the protected computer; and `(B) does
not include a person known by the owner or operator of the protected computer to have an
existing contractual relationship with the owner or operator of the protected computer for
access to all or part of the protected computer.'; and |
|
(2) in section 2511(2), by inserting at the end the
following:
`(i) It shall not be unlawful under this chapter for
a person acting under color of law to intercept the wire or electronic communications of a
computer trespasser transmitted to, through, or from the protected computer, if--
| `(I) the owner or operator of the protected computer
authorizes the interception of the computer trespasser's communications on the protected
computer; `(II) the person acting under color of law is lawfully engaged in an
investigation;
`(III) the person acting under color of law has reasonable grounds to believe that the
contents of the computer trespasser's communications will be relevant to the
investigation; and
`(IV) such interception does not acquire communications other than those transmitted to
or from the computer trespasser.'. |
SEC. 218. FOREIGN INTELLIGENCE
INFORMATION.
| Sections 104(a)(7)(B)
and section 303(a)(7)(B) (50 U.S.C. 1804(a)(7)(B) and 1823(a)(7)(B)) of the Foreign
Intelligence Surveillance Act of 1978 are each amended by striking `the purpose' and
inserting `a significant purpose'. |
SEC. 219. SINGLE-JURISDICTION SEARCH
WARRANTS FOR TERRORISM.
| Rule 41(a) of the
Federal Rules of Criminal Procedure is amended by inserting after `executed' the
following: `and (3) in an investigation of domestic terrorism or international terrorism
(as defined in section 2331 of title 18, United States Code), by a Federal magistrate
judge in any district in which activities related to the terrorism may have occurred, for
a search of property or for a person within or outside the district'. |
SEC. 220. NATIONWIDE SERVICE OF SEARCH
WARRANTS FOR ELECTRONIC EVIDENCE.
| (a) IN GENERAL- Chapter
121 of title 18, United States Code, is amended--
| (1) in section 2703, by striking `under the Federal
Rules of Criminal Procedure' every place it appears and inserting `using the procedures
described in the Federal Rules of Criminal Procedure by a court with jurisdiction over the
offense under investigation'; and (2) in section 2711--
| (A) in paragraph (1), by striking `and'; (B) in
paragraph (2), by striking the period and inserting `; and'; and
(C) by inserting at the end the following: |
|
`(3) the term `court of competent jurisdiction' has
the meaning assigned by section 3127, and includes any Federal court within that
definition, without geographic limitation.'. |
(b) CONFORMING AMENDMENT- Section 2703(d) of title
18, United States Code, is amended by striking `described in section 3127(2)(A)'.
SEC. 221. TRADE SANCTIONS.
| (a) IN GENERAL- The
Trade Sanctions Reform and Export Enhancement Act of 2000 (Public Law 106-387; 114 Stat.
1549A-67) is amended--
| (1) by amending section 904(2)(C) to read as follows:
| `(C) used to facilitate the design, development, or
production of chemical or biological weapons, missiles, or weapons of mass destruction.'; |
|
(2) in section 906(a)(1)--
| (A) by inserting `, the Taliban or the territory of
Afghanistan controlled by the Taliban,' after `Cuba'; and (B) by inserting `, or in the
territory of Afghanistan controlled by the Taliban,' after `within such country'; and |
|
(3) in section 906(a)(2), by inserting `, or to any
other entity in Syria or North Korea' after `Korea'.
(b) APPLICATION OF THE TRADE SANCTIONS REFORM AND
EXPORT ENHANCEMENT ACT- Nothing in the Trade Sanctions Reform and Export Enhancement Act
of 2000 shall limit the application or scope of any law establishing criminal or civil
penalties, including any executive order or regulation promulgated pursuant to such laws
(or similar or successor laws), for the unlawful export of any agricultural commodity,
medicine, or medical device to--
| (1) a foreign organization, group, or person
designated pursuant to Executive Order 12947 of January 23, 1995, as amended; (2) a
Foreign Terrorist Organization pursuant to the Antiterrorism and Effective Death Penalty
Act of 1996 (Public Law 104-132);
(3) a foreign organization, group, or person designated pursuant to Executive Order
13224 (September 23, 2001);
(4) any narcotics trafficking entity designated pursuant to Executive Order 12978
(October 21, 1995) or the Foreign Narcotics Kingpin Designation Act (Public Law 106-120);
or
(5) any foreign organization, group, or persons subject to any restriction for its
involvement in weapons of mass destruction or missile proliferation. |
SEC. 222. ASSISTANCE TO LAW
ENFORCEMENT AGENCIES.
| Nothing in this Act
shall impose any additional technical obligation or requirement on a provider of a wire or
electronic communication service or other person to furnish facilities or technical
assistance. A provider of a wire or electronic communication service, landlord, custodian,
or other person who furnishes facilities or technical assistance pursuant to section 216
shall be reasonably compensated for such reasonable expenditures incurred in providing
such facilities or assistance. |
SEC. 223. CIVIL LIABILITY FOR CERTAIN
UNAUTHORIZED DISCLOSURES.
| (a) Section 2520 of
title 18, United States Code, is amended--
| (1) in subsection (a), after `entity', by inserting `,
other than the United States,'; (2) by adding at the end the following: |
|
`(f) ADMINISTRATIVE DISCIPLINE- If a court or
appropriate department or agency determines that the United States or any of its
departments or agencies has violated any provision of this chapter, and the court or
appropriate department or agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or employee of the United States
acted willfully or intentionally with respect to the violation, the department or agency
shall, upon receipt of a true and correct copy of the decision and findings of the court
or appropriate department or agency promptly initiate a proceeding to determine whether
disciplinary action against the officer or employee is warranted. If the head of the
department or agency involved determines that disciplinary action is not warranted, he or
she shall notify the Inspector General with jurisdiction over the department or agency
concerned and shall provide the Inspector General with the reasons for such
determination.'; and
| (3) by adding a new subsection (g), as follows: |
`(g) IMPROPER DISCLOSURE IS VIOLATION- Any willful
disclosure or use by an investigative or law enforcement officer or governmental entity of
information beyond the extent permitted by section 2517 is a violation of this chapter for
purposes of section 2520(a).
(b) Section 2707 of title 18, United States Code, is
amended--
| (1) in subsection (a), after `entity', by inserting `,
other than the United States,'; (2) by striking subsection (d) and inserting the
following: |
`(d) ADMINISTRATIVE DISCIPLINE- If a court or
appropriate department or agency determines that the United States or any of its
departments or agencies has violated any provision of this chapter, and the court or
appropriate department or agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or employee of the United States
acted willfully or intentionally with respect to the violation, the department or agency
shall, upon receipt of a true and correct copy of the decision and findings of the court
or appropriate department or agency promptly initiate a proceeding to determine whether
disciplinary action against the officer or employee is warranted. If the head of the
department or agency involved determines that disciplinary action is not warranted, he or
she shall notify the Inspector General with jurisdiction over the department or agency
concerned and shall provide the Inspector General with the reasons for such
determination.'; and
| (3) by adding a new subsection (g), as follows: |
`(g) IMPROPER DISCLOSURE- Any willful disclosure of a
`record', as that term is defined in section 552a(a) of title 5, United States Code,
obtained by an investigative or law enforcement officer, or a governmental entity,
pursuant to section 2703 of this title, or from a device installed pursuant to section
3123 or 3125 of this title, that is not a disclosure made in the proper performance of the
official functions of the officer or governmental entity making the disclosure, is a
violation of this chapter. This provision shall not apply to information previously
lawfully disclosed (prior to the commencement of any civil or administrative proceeding
under this chapter) to the public by a Federal, State, or local governmental entity or by
the plaintiff in a civil action under this chapter.'.
(c)(1) Chapter 121 of title 18, United States Code,
is amended by adding at the end the following:
`Sec. 2712. Civil actions against the
United States
| `(a) IN GENERAL- Any
person who is aggrieved by any willful violation of this chapter or of chapter 119 of this
title or of sections 106(a), 305(a), or 405(a) of the Foreign Intelligence Surveillance
Act of 1978 (50 U.S.C. 1801 et seq.) may commence an action in United States District
Court against the United States to recover money damages. In any such action, if a person
who is aggrieved successfully establishes such a violation of this chapter or of chapter
119 of this title or of the above specific provisions of title 50, the Court may assess as
damages--
| `(1) actual damages, but not less than $10,000,
whichever amount is greater; and `(2) litigation costs, reasonably incurred. |
|
`(b) PROCEDURES- (1) Any action against the United
States under this section may be commenced only after a claim is presented to the
appropriate department or agency under the procedures of the Federal Tort Claims Act, as
set forth in title 28, United States Code.
| `(2) Any action against the United States under this
section shall be forever barred unless it is presented in writing to the appropriate
Federal agency within 2 years after such claim accrues or unless action is begun within 6
months after the date of mailing, by certified or registered mail, of notice of final
denial of the claim by the agency to which it was presented. The claim shall accrue on the
date upon which the claimant first has a reasonable opportunity to discover the
violation.'. |
`(3) Any action under this section shall be tried to
the court without a jury.
`(4) Notwithstanding any other provision of law, the
procedures set forth in section 106(f), 305(g), or 405(f) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) shall be the exclusive means by which
materials governed by those sections may be reviewed.
`(5) An amount equal to any award against the United
States under this section shall be reimbursed by the department or agency concerned to the
fund described in section 1304 of title 31, United States Code, out of any appropriation,
fund, or other account (excluding any part of such appropriation, fund, or account that is
available for the enforcement of any Federal law) that is available for the operating
expenses of the department or agency concerned.
`(c) ADMINISTRATIVE DISCIPLINE- If a court or
appropriate department or agency determines that the United States or any of its
departments or agencies has violated any provision of this chapter, and the court or
appropriate department or agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or employee of the United States
acted willfully or intentionally with respect to the possible violation, the department or
agency shall, upon receipt of a true and correct copy of the decision and findings of the
court or appropriate department or agency promptly initiate a proceeding to determine
whether disciplinary action against the officer or employee is warranted. If the head of
the department or agency involved determines that disciplinary action is not warranted, he
or she shall notify the Inspector General with jurisdiction over the department or agency
concerned and shall provide the Inspector General with the reasons for such determination.
`(d) EXCLUSIVE REMEDY- Any action against the United
States under this subsection shall be the exclusive remedy against the United States for
any claims within the purview of this section.
`(e) STAY OF PROCEEDINGS- (1) Upon the motion of the
United States, the court shall stay any action commenced under this section if the court
determines that civil discovery will adversely affect the ability of the Government to
conduct a related investigation or the prosecution of a related criminal case. Such a stay
shall toll the limitations periods of paragraph (2) of subsection (b).
`(2) In this subsection, the terms `related criminal
case' and `related investigation' mean an actual prosecution or investigation in progress
at the time at which the request for the stay or any subsequent motion to lift the stay is
made. In determining whether an investigation or a criminal case is related to an action
commenced under this section, the court shall consider the degree of similarity between
the parties, witnesses, facts, and circumstances involved in the 2 proceedings, without
requiring that any one or more factors be identical.
`(3) In requesting a stay under paragraph (1), the
Government may, in appropriate cases, submit evidence ex parte in order to avoid
disclosing any matter that may adversely affect a related investigation or a related
criminal case. If the Government makes such an ex parte submission, the plaintiff shall be
given an opportunity to make a submission to the court, not ex parte, and the court may,
in its discretion, request further information from either party.'.
(2) The table of sections at the beginning of chapter
121 is amended to read as follows:
| `2712. Civil action against the United States.'. |
SEC. 224. SUNSET.
| (a) IN GENERAL- Except
as provided in subsection (b), this title and the amendments made by this title (other
than sections 203(a), 203(c), 205, 208, 210, 211, 213, 216, 219, 221, and 222, and the
amendments made by those sections) shall cease to have effect on December 31, 2005. (b) EXCEPTION- With respect to any particular foreign
intelligence investigation that began before the date on which the provisions referred to
in subsection (a) cease to have effect, or with respect to any particular offense or
potential offense that began or occurred before the date on which such provisions cease to
have effect, such provisions shall continue in effect. |
SEC. 225. IMMUNITY FOR COMPLIANCE WITH
FISA WIRETAP.
| Section 105 of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1805) is amended by inserting
after subsection (g) the following: `(h) No cause
of action shall lie in any court against any provider of a wire or electronic
communication service, landlord, custodian, or other person (including any officer,
employee, agent, or other specified person thereof) that furnishes any information,
facilities, or technical assistance in accordance with a court order or request for
emergency assistance under this Act.'. |
TITLE III--INTERNATIONAL MONEY LAUNDERING
ABATEMENT AND ANTI-TERRORIST FINANCING ACT OF 2001
SEC. 301. SHORT TITLE.
| This title may be cited
as the `International Money Laundering Abatement and Financial Anti-Terrorism Act of
2001'. |
SEC. 302. FINDINGS AND PURPOSES.
| (a) FINDINGS- The
Congress finds that--
| (1) money laundering, estimated by the International
Monetary Fund to amount to between 2 and 5 percent of global gross domestic product, which
is at least $600,000,000,000 annually, provides the financial fuel that permits
transnational criminal enterprises to conduct and expand their operations to the detriment
of the safety and security of American citizens; (2) money laundering, and the defects
in financial transparency on which money launderers rely, are critical to the financing of
global terrorism and the provision of funds for terrorist attacks;
(3) money launderers subvert legitimate financial mechanisms and banking relationships
by using them as protective covering for the movement of criminal proceeds and the
financing of crime and terrorism, and, by so doing, can threaten the safety of United
States citizens and undermine the integrity of United States financial institutions and of
the global financial and trading systems upon which prosperity and growth depend;
(4) certain jurisdictions outside of the United States that offer `offshore' banking
and related facilities designed to provide anonymity, coupled with weak financial
supervisory and enforcement regimes, provide essential tools to disguise ownership and
movement of criminal funds, derived from, or used to commit, offenses ranging from
narcotics trafficking, terrorism, arms smuggling, and trafficking in human beings, to
financial frauds that prey on law-abiding citizens;
(5) transactions involving such offshore jurisdictions make it difficult for law
enforcement officials and regulators to follow the trail of money earned by criminals,
organized international criminal enterprises, and global terrorist organizations;
(6) correspondent banking facilities are one of the banking mechanisms susceptible in
some circumstances to manipulation by foreign banks to permit the laundering of funds by
hiding the identity of real parties in interest to financial transactions;
(7) private banking services can be susceptible to manipulation by money launderers,
for example corrupt foreign government officials, particularly if those services include
the creation of offshore accounts and facilities for large personal funds transfers to
channel funds into accounts around the globe;
(8) United States anti-money laundering efforts are impeded by outmoded and inadequate
statutory provisions that make investigations, prosecutions, and forfeitures more
difficult, particularly in cases in which money laundering involves foreign persons,
foreign banks, or foreign countries;
(9) the ability to mount effective counter-measures to international money launderers
requires national, as well as bilateral and multilateral action, using tools specially
designed for that effort; and
(10) the Basle Committee on Banking Regulation and Supervisory Practices and the
Financial Action Task Force on Money Laundering, of both of which the United States is a
member, have each adopted international anti-money laundering principles and
recommendations. |
|
(b) PURPOSES- The purposes of this title are--
| (1) to increase the strength of United States measures
to prevent, detect, and prosecute international money laundering and the financing of
terrorism; (2) to ensure that--
| (A) banking transactions and financial relationships
and the conduct of such transactions and relationships, do not contravene the purposes of
subchapter II of chapter 53 of title 31, United States Code, section 21 of the Federal
Deposit Insurance Act, or chapter 2 of title I of Public Law 91-508 (84 Stat. 1116), or
facilitate the evasion of any such provision; and (B) the purposes of such provisions
of law continue to be fulfilled, and such provisions of law are effectively and
efficiently administered; |
|
(3) to strengthen the provisions put into place by
the Money Laundering Control Act of 1986 (18 U.S.C. 981 note), especially with respect to
crimes by non-United States nationals and foreign financial institutions;
(4) to provide a clear national mandate for
subjecting to special scrutiny those foreign jurisdictions, financial institutions
operating outside of the United States, and classes of international transactions or types
of accounts that pose particular, identifiable opportunities for criminal abuse;
(5) to provide the Secretary of the Treasury (in this
title referred to as the `Secretary') with broad discretion, subject to the safeguards
provided by the Administrative Procedure Act under title 5, United States Code, to take
measures tailored to the particular money laundering problems presented by specific
foreign jurisdictions, financial institutions operating outside of the United States, and
classes of international transactions or types of accounts;
(6) to ensure that the employment of such measures by
the Secretary permits appropriate opportunity for comment by affected financial
institutions;
(7) to provide guidance to domestic financial
institutions on particular foreign jurisdictions, financial institutions operating outside
of the United States, and classes of international transactions that are of primary money
laundering concern to the United States Government;
(8) to ensure that the forfeiture of any assets in
connection with the anti-terrorist efforts of the United States permits for adequate
challenge consistent with providing due process rights;
(9) to clarify the terms of the safe harbor from
civil liability for filing suspicious activity reports;
(10) to strengthen the authority of the Secretary to
issue and administer geographic targeting orders, and to clarify that violations of such
orders or any other requirement imposed under the authority contained in chapter 2 of
title I of Public Law 91-508 and subchapters II and III of chapter 53 of title 31, United
States Code, may result in criminal and civil penalties;
(11) to ensure that all appropriate elements of the
financial services industry are subject to appropriate requirements to report potential
money laundering transactions to proper authorities, and that jurisdictional disputes do
not hinder examination of compliance by financial institutions with relevant reporting
requirements;
(12) to strengthen the ability of financial
institutions to maintain the integrity of their employee population; and
(13) to strengthen measures to prevent the use of the
United States financial system for personal gain by corrupt foreign officials and to
facilitate the repatriation of any stolen assets to the citizens of countries to whom such
assets belong.
SEC. 303. 4-YEAR CONGRESSIONAL REVIEW;
EXPEDITED CONSIDERATION.
| (a) IN GENERAL-
Effective on and after the first day of fiscal year 2005, the provisions of this title and
the amendments made by this title shall terminate if the Congress enacts a joint
resolution, the text after the resolving clause of which is as follows: `That provisions
of the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001,
and the amendments made thereby, shall no longer have the force of law.'. (b) EXPEDITED CONSIDERATION- Any joint resolution submitted
pursuant to this section should be considered by the Congress expeditiously. In
particular, it shall be considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and Arms Control Act of 1976. |
Subtitle A--International Counter Money
Laundering and Related Measures
SEC. 311. SPECIAL MEASURES FOR
JURISDICTIONS, FINANCIAL INSTITUTIONS, OR INTERNATIONAL TRANSACTIONS OF PRIMARY MONEY
LAUNDERING 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: |
`Sec. 5318A. Special measures for
jurisdictions, financial institutions, or international transactions of primary money
laundering concern
| `(a) INTERNATIONAL
COUNTER-MONEY LAUNDERING REQUIREMENTS-
| `(1) IN GENERAL- The Secretary of the Treasury 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 of the United States, 1 or more
financial institutions operating outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of the United States, or 1 or
more types of accounts is of primary money laundering concern, in accordance with
subsection (c). `(2) FORM OF REQUIREMENT- The special measures described in--
| `(A) subsection (b) may be imposed in such sequence or
combination as the Secretary shall determine; `(B) paragraphs (1) through (4) of
subsection (b) may be imposed by regulation, order, or otherwise as permitted by law; and
`(C) subsection (b)(5) may be imposed only by regulation. |
|
`(3) DURATION OF ORDERS; RULEMAKING- Any order by
which a special measure described in paragraphs (1) through (4) of subsection (b) is
imposed (other than an order described in section 5326)--
| `(A) shall be issued together with a notice of
proposed rulemaking relating to the imposition of such special measure; and `(B) may
not remain in effect for more than 120 days, except pursuant to a rule promulgated on or
before the end of the 120-day period beginning on the date of issuance of such order. |
|
`(4) PROCESS FOR SELECTING SPECIAL MEASURES- In
selecting which special measure or measures to take under this subsection, the Secretary
of the Treasury--
| `(A) shall consult with the Chairman of the Board of
Governors of the Federal Reserve System, any other appropriate Federal banking agency, as
defined in section 3 of the Federal Deposit Insurance Act, the Secretary of State, the
Securities and Exchange Commission, the Commodity Futures Trading Commission, the National
Credit Union Administration Board, and in the sole discretion of the Secretary, such other
agencies and interested parties as the Secretary may find to be appropriate; and `(B)
shall consider--
| `(i) whether similar action has been or is being taken
by other nations or multilateral groups; `(ii) whether the imposition of any particular
special measure would create a significant competitive disadvantage, including any undue
cost or burden associated with compliance, for financial institutions organized or
licensed in the United States;
`(iii) the extent to which the action or the timing of the action would have a
significant adverse systemic impact on the international payment, clearance, and
settlement system, or on legitimate business activities involving the particular
jurisdiction, institution, or class of transactions; and
`(iv) the effect of the action on United States national security and foreign policy. |
|
`(5) 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 subchapter or otherwise.
`(b) SPECIAL MEASURES- The special measures referred
to in subsection (a), with respect to a jurisdiction outside of the United States,
financial institution operating outside of the United States, class of transaction within,
or involving, a jurisdiction outside of the United States, or 1 or more types of accounts
are as follows:
| `(1) RECORDKEEPING AND REPORTING OF CERTAIN FINANCIAL
TRANSACTIONS-
| `(A) IN GENERAL- The Secretary of the Treasury may
require any domestic financial institution or domestic financial agency to maintain
records, file reports, or both, concerning the aggregate amount of transactions, or
concerning each transaction, with respect to a jurisdiction outside of the United States,
1 or more financial institutions operating outside of the United States, 1 or more classes
of transactions within, or involving, a jurisdiction outside of the United States, or 1 or
more types of accounts if the Secretary finds any such jurisdiction, 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 retained at such time, in such manner,
and for such period of time, as the Secretary shall determine, and shall include such
information as the Secretary may determine, including--
| `(i) the identity and address of the participants in a
transaction or relationship, including the identity of the originator of any funds
transfer; `(ii) the legal capacity in which a participant in any transaction is acting;
`(iii) the identity of the beneficial owner of the funds involved in any transaction,
in accordance with such procedures as the Secretary determines to be reasonable and
practicable to obtain and retain the information; and
`(iv) a description of any transaction. |
|
|
`(2) INFORMATION RELATING TO BENEFICIAL OWNERSHIP- In
addition to any other requirement under any other provision of law, the Secretary may
require any domestic financial institution or domestic financial agency to take such steps
as the Secretary may determine 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 reporting requirements or are listed and traded on a regulated exchange or trading
market), or a representative of such a foreign person, that involves a jurisdiction
outside of the United States, 1 or more financial institutions operating outside of the
United States, 1 or more classes of transactions within, or involving, a jurisdiction
outside of the United States, or 1 or more types of accounts if the Secretary finds any
such jurisdiction, institution, or transaction or type of account to be of primary money
laundering concern.
`(3) INFORMATION RELATING TO CERTAIN PAYABLE-THROUGH
ACCOUNTS- If the Secretary finds a jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of the United States to be of
primary money laundering concern, the Secretary 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 jurisdiction
or any such financial institution operating outside of the United States, or a payable
through account through which any such transaction may be conducted, as a condition of
opening or maintaining such account--
| `(A) to identify each customer (and representative of
such customer) of such financial institution who is permitted to use, or whose
transactions are routed through, such payable-through account; and `(B) to obtain, with
respect to each such customer (and each such representative), information that is
substantially comparable to that which the depository institution obtains in the ordinary
course of business with respect to its customers residing in the United States. |
`(4) INFORMATION RELATING TO CERTAIN CORRESPONDENT
ACCOUNTS- If the Secretary finds a jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of the United States to be of
primary money laundering concern, the Secretary 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 jurisdiction
or any such financial institution operating outside of the United States, or a
correspondent account through which any such transaction may be conducted, as a condition
of opening or maintaining such account--
| `(A) to identify each customer (and representative of
such customer) of any such financial institution who is permitted to use, or whose
transactions are routed through, such correspondent account; and `(B) to obtain, with
respect to each such customer (and each such representative), information that is
substantially comparable to that which the depository institution obtains in the ordinary
course of business with respect to its customers residing in the United States. |
`(5) PROHIBITIONS OR CONDITIONS ON OPENING OR
MAINTAINING CERTAIN CORRESPONDENT OR PAYABLE-THROUGH ACCOUNTS- If the Secretary finds a
jurisdiction outside of the United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of transactions within, or involving, a
jurisdiction outside of 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 System, 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
financial agency for or on behalf of a foreign banking institution, if such correspondent
account or payable-through account involves any such jurisdiction or institution, or if
any such transaction may be conducted through such correspondent account or
payable-through account.
`(c) CONSULTATIONS AND INFORMATION TO BE CONSIDERED
IN FINDING JURISDICTIONS, INSTITUTIONS, TYPES OF ACCOUNTS, OR TRANSACTIONS TO BE OF
PRIMARY MONEY LAUNDERING CONCERN-
| `(1) IN GENERAL- In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of the United States, or 1 or
more types of accounts is of primary money laundering concern so as to authorize the
Secretary of the Treasury to take 1 or more of the special measures described in
subsection (b), the Secretary shall consult with the Secretary of State and the Attorney
General. `(2) ADDITIONAL CONSIDERATIONS- In making a finding described in paragraph
(1), the Secretary shall consider in addition such information as the Secretary determines
to be relevant, including the following potentially relevant factors:
| `(A) JURISDICTIONAL FACTORS- In the case of a
particular jurisdiction--
| `(i) evidence that organized criminal groups,
international terrorists, or both, have transacted business in that jurisdiction; `(ii)
the extent to which that jurisdiction or financial institutions operating in that
jurisdiction offer bank secrecy or special regulatory advantages to nonresidents or
nondomiciliaries of that jurisdiction;
`(iii) the substance and quality of administration of the bank supervisory and
counter-money laundering laws of that jurisdiction;
`(iv) the relationship between the volume of financial transactions occurring in that
jurisdiction and the size of the economy of the jurisdiction;
`(v) the extent to which that jurisdiction is characterized as an offshore banking or
secrecy haven by credible international organizations or multilateral expert groups;
`(vi) whether the United States has a mutual legal assistance treaty with that
jurisdiction, and the experience of United States law enforcement officials and regulatory
officials in obtaining information about transactions originating in or routed through or
to such jurisdiction; and
`(vii) the extent to which that jurisdiction is characterized by high levels of
official or institutional corruption. |
|
`(B) INSTITUTIONAL FACTORS- 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 a type of
account, or to all 3, within or involving a particular jurisdiction--
| `(i) the extent to which such financial institutions,
transactions, or types of accounts are used to facilitate or promote money laundering in
or through the jurisdiction; `(ii) the extent to which such institutions, transactions,
or types of accounts are used for legitimate business purposes in the jurisdiction; and
`(iii) the extent to which such action is sufficient to ensure, with respect to
transactions involving the jurisdiction and institutions operating in the jurisdiction,
that the purposes of this subchapter continue to be fulfilled, and to guard against
international money laundering and other financial crimes. |
|
`(d) NOTIFICATION OF SPECIAL MEASURES INVOKED BY THE
SECRETARY- Not later than 10 days after the date of any action taken by the Secretary of
the Treasury under subsection (a)(1), the Secretary shall notify, in writing, the
Committee on Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate of any such action.
`(e) DEFINITIONS- Notwithstanding any other provision
of this subchapter, for purposes of this section and subsections (i) and (j) of section
5318, the following definitions shall apply:
| `(1) BANK DEFINITIONS- The following definitions shall
apply with respect to a bank:
| `(A) 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. |
|
`(B) CORRESPONDENT ACCOUNT- The term `correspondent
account' means an account established to receive deposits from, make payments on behalf of
a foreign financial institution, or handle other financial transactions related to such
institution.
`(C) PAYABLE-THROUGH ACCOUNT- The term
`payable-through account' means an account, including a transaction account (as defined in
section 19(b)(1)(C) of the Federal Reserve Act), opened at a depository institution by a
foreign financial institution by means of which the foreign financial institution permits
its customers to engage, either directly or through a subaccount, in banking activities
usual in connection with the business of banking in the United States. |
`(2) DEFINITIONS APPLICABLE TO INSTITUTIONS OTHER
THAN BANKS- With respect to any financial institution other than a bank, the Secretary
shall, after consultation with the appropriate Federal functional regulators (as defined
in section 509 of the Gramm-Leach-Bliley Act), define by regulation the term `account',
and shall include within the meaning of that term, to the extent, if any, that the
Secretary deems appropriate, arrangements similar to payable-through and correspondent
accounts.
`(3) REGULATORY DEFINITION OF BENEFICIAL OWNERSHIP-
The Secretary shall promulgate regulations defining beneficial ownership of an account for
purposes of this section and subsections (i) and (j) of section 5318. Such regulations
shall address issues related to an individual's authority to fund, direct, or manage the
account (including, without limitation, the power to direct payments into or out of the
account), and an individual's material interest in the income or corpus of the account,
and shall ensure that the identification of individuals under this section does not extend
to any individual whose beneficial interest in the income or corpus of the account is
immaterial.'.
`(4) OTHER TERMS- The Secretary may, by regulation,
further define the terms in paragraphs (1), (2), and (3), 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 international transactions of primary money laundering concern.'. |
SEC. 312. SPECIAL DUE DILIGENCE FOR
CORRESPONDENT ACCOUNTS AND PRIVATE BANKING ACCOUNTS.
| (a) IN GENERAL- Section
5318 of title 31, United States Code, is amended by adding at the end the following: `(i) DUE DILIGENCE FOR UNITED STATES PRIVATE BANKING AND
CORRESPONDENT BANK ACCOUNTS INVOLVING FOREIGN PERSONS-
| `(1) IN GENERAL- Each financial institution that
establishes, maintains, administers, or manages a private banking account or a
correspondent account in the United States for a non-United States person, including a
foreign individual visiting the United States, or a representative of a non-United States
person shall establish appropriate, specific, and, where necessary, enhanced, due
diligence policies, procedures, and controls that are reasonably designed to detect and
report instances of money laundering through those accounts. `(2) ADDITIONAL STANDARDS
FOR CERTAIN CORRESPONDENT ACCOUNTS-
| `(A) IN GENERAL- Subparagraph (B) shall apply if a
correspondent account is requested or maintained by, or on behalf of, a foreign bank
operating--
| `(i) under an offshore banking license; or `(ii)
under a banking license issued by a foreign country that has been designated--
| `(I) as noncooperative with international anti-money
laundering principles or procedures by an intergovernmental group or organization of which the
United States is a member, with which designation the United States representative to the
group or organization concurs; or `(II) by the Secretary of the Treasury as warranting
special measures due to money laundering concerns. |
|
|
|
`(B) POLICIES, PROCEDURES, AND CONTROLS- The enhanced
due diligence policies, procedures, and controls required under paragraph (1) shall, at a
minimum, ensure that the financial institution in the United States takes reasonable
steps--
| `(i) to ascertain for any such foreign bank, the
shares of which are not publicly traded, the identity of each of the owners of the foreign
bank, and the nature and extent of the ownership interest of each such owner; `(ii) to
conduct enhanced scrutiny of such account to guard against money laundering and report any
suspicious transactions under subsection (g); and
`(iii) to ascertain whether such foreign bank provides correspondent accounts to other
foreign banks and, if so, the identity of those foreign banks and related due diligence
information, as appropriate under paragraph (1). |
|
`(3) MINIMUM STANDARDS FOR PRIVATE BANKING ACCOUNTS-
If a private banking account is requested or maintained by, or on behalf of, a non-United
States person, then the due diligence policies, procedures, and controls required under
paragraph (1) shall, at a minimum, ensure that the financial institution takes reasonable
steps--
| `(A) to ascertain the identity of the nominal and
beneficial owners of, and the source of funds deposited into, such account as needed to
guard against money laundering and report any suspicious transactions under subsection
(g); and `(B) to conduct enhanced scrutiny of any such account that is requested or
maintained by, or on behalf of, a senior foreign political figure, or any immediate family
member or close associate of a senior foreign political figure that is reasonably designed
to detect and report transactions that may involve the proceeds of foreign corruption. |
`(4) DEFINITION- For purposes of this subsection, the
following definitions shall apply:
| `(A) OFFSHORE BANKING LICENSE- The term `offshore
banking license' means a license to conduct banking activities which, as a condition of
the license, prohibits the licensed entity from conducting banking activities with the
citizens of, or with the local currency of, the country which issued the license.'. `(B)
PRIVATE BANKING ACCOUNT- The term `private banking account' means an account (or any
combination of accounts) that--
| `(i) requires a minimum aggregate deposits of funds or
other assets of not less than $1,000,000; `(ii) is established on behalf of 1 or more
individuals who have a direct or beneficial ownership interest in the account; and
`(iii) is assigned to, or is administered or managed by, in whole or in part, an
officer, employee, or agent of a financial institution acting as a liaison between the
financial institution and the direct or beneficial owner of the account.'. |
|
(b) REGULATORY AUTHORITY AND EFFECTIVE DATE-
| (1) REGULATORY AUTHORITY- Not later than 180 days
after the date of enactment of this Act, the Secretary, in consultation with the
appropriate Federal functional regulators (as defined in section 509 of the
Gramm-Leach-Bliley Act) of the affected financial institutions, shall further delineate,
by regulation, the due diligence policies, procedures, and controls required under section
5318(i)(1) of title 31, United States Code, as added by this section. (2) EFFECTIVE
DATE- Section 5318(i) of title 31, United States Code, as added by this section, shall
take effect 270 days after the date of enactment of this Act, whether or not final
regulations are issued under paragraph (1), and the failure to issue such regulations
shall in no way affect the enforceability of this section or the amendments made by this
section. Section 5318(i) of title 31, United States Code, as added by this section, shall
apply with respect to accounts covered by that section 5318(i), that are opened before,
on, or after the date of enactment of this Act. |
SEC. 313. PROHIBITION ON UNITED STATES
CORRESPONDENT ACCOUNTS WITH FOREIGN SHELL BANKS.
| (a) IN GENERAL- Section
5318 of title 31, United States Code, as amended by this title, is amended by adding at
the end the following: `(j) PROHIBITION ON UNITED
STATES CORRESPONDENT ACCOUNTS WITH FOREIGN SHELL BANKS-
| `(1) IN GENERAL- A financial institution described in
subparagraphs (A) through (G) of section 5312(a)(2) (in this subsection referred to as a
`covered financial 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 covered financial institution shall take reasonable steps to ensure
that any correspondent account established, maintained, administered, or managed by that
covered financial 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. The Secretary of the Treasury shall, by
regulation, delineate the reasonable steps necessary to comply with this paragraph.
`(3) EXCEPTION- Paragraphs (1) and (2) do not prohibit a covered financial institution
from providing a correspondent account to a foreign bank, if the foreign bank--
| `(A) is an affiliate of a depository institution,
credit union, or foreign bank that maintains a physical presence in the United States or a
foreign country, as applicable; and `(B) is subject to supervision by a banking
authority in the country regulating the affiliated depository institution, credit union,
or foreign bank described in subparagraph (A), as applicable. |
|
`(4) DEFINITIONS- For purposes of this subsection--
| `(A) the term `affiliate' means a foreign bank that is
controlled by or is under common control with a depository institution, credit union, or
foreign bank; and `(B) 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 authorized to conduct banking activities, at which location the
foreign bank--
| `(I) employs 1 or more individuals 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 foreign bank to conduct banking activities.'. |
|
(b) EFFECTIVE DATE- The amendment made by subsection
(a) shall take effect at the end of the 60-day period beginning on the date of enactment
of this Act.
SEC. 314. COOPERATIVE EFFORTS TO DETER
MONEY LAUNDERING.
| (a) COOPERATION AMONG
FINANCIAL INSTITUTIONS, REGULATORY AUTHORITIES, AND LAW ENFORCEMENT AUTHORITIES-
| (1) REGULATIONS- The Secretary shall, within 120 days
after the date of enactment of this Act, adopt regulations to encourage further
cooperation among financial institutions, their regulatory authorities, and law
enforcement authorities, with the specific purpose of encouraging regulatory authorities
and law enforcement authorities to share with financial institutions information regarding
individuals, entities, and organizations engaged in or reasonably suspected based on
credible evidence of engaging in terrorist acts or money laundering activities. (2)
COOPERATION AND INFORMATION SHARING PROCEDURES- The regulations adopted under paragraph
(1) may include or create procedures for cooperation and information sharing focusing on--
| (A) matters specifically related to the finances of
terrorist groups, the means by which terrorist groups transfer funds around the world and
within the United States, including through the use of charitable organizations, nonprofit
organizations, and nongovernmental organizations, and the extent to which financial
institutions in the United States are unwittingly involved in such finances and the extent
to which such institutions are at risk as a result; (B) the relationship, particularly
the financial relationship, between international narcotics traffickers and foreign
terrorist organizations, the extent to which their memberships overlap and engage in joint
activities, and the extent to which they cooperate with each other in raising and
transferring funds for their respective purposes; and
(C) means of facilitating the identification of accounts and transactions involving
terrorist groups and facilitating the exchange of information concerning such accounts and
transactions between financial institutions and law enforcement organizations. |
|
(3) CONTENTS- The regulations adopted pursuant to
paragraph (1) may--
| (A) require that each financial institution designate
1 or more persons to receive information concerning, and to monitor accounts of
individuals, entities, and organizations identified, pursuant to paragraph (1); and (B)
further establish procedures for the protection of the shared information, consistent with
the capacity, size, and nature of the institution to which the particular procedures
apply. |
|
(4) RULE OF CONSTRUCTION- The receipt of information
by a financial institution pursuant to this section shall not relieve or otherwise modify
the obligations of the financial institution with respect to any other person or account.
(5) USE OF INFORMATION- Information received by a
financial institution pursuant to this section shall not be used for any purpose other
than identifying and reporting on activities that may involve terrorist acts or money
laundering activities.
(b) COOPERATION AMONG FINANCIAL INSTITUTIONS- Upon
notice provided to the Secretary, 2 or more financial institutions and any association of
financial institutions may share information with one another regarding individuals,
entities, organizations, and countries suspected of possible terrorist or money laundering
activities. A financial institution or association that transmits, receives, or shares
such information for the purposes of identifying and reporting activities that may involve
terrorist acts or money laundering activities shall not be liable to any person under any
law or regulation of the United States, any constitution, law, or regulation of any State
or political subdivision thereof, or under any contract or other legally enforceable
agreement (including any arbitration agreement), for such disclosure or for any failure to
provide notice of such disclosure to the person who is the subject of such disclosure, or
any other person identified in the disclosure, except where such transmission, receipt, or
sharing violates this section or regulations promulgated pursuant to this section.
(c) RULE OF CONSTRUCTION- Compliance with the
provisions of this title requiring or allowing financial institutions and any association
of financial institutions to disclose or share information regarding individuals,
entities, and organizations engaged in or suspected of engaging in terrorist acts or money
laundering activities shall not constitute a violation of the provisions of title V of the
Gramm-Leach-Bliley Act (Public Law 106-102).
(d) REPORTS TO THE FINANCIAL SERVICES INDUSTRY ON
SUSPICIOUS FINANCIAL ACTIVITIES- At least semiannually, the Secretary shall--
| (1) publish a report containing a detailed analysis
identifying patterns of suspicious activity and other investigative insights derived from
suspicious activity reports and investigations conducted by Federal, State, and local law
enforcement agencies to the extent appropriate; and (2) distribute such report to
financial institutions (as defined in section 5312 of title 31, United States Code). |
SEC. 315. INCLUSION OF FOREIGN
CORRUPTION OFFENSES AS MONEY LAUNDERING CRIMES.
| Section 1956(c)(7) of
title 18, United States Code, is amended--
| (1) in subparagraph (B)--
| (A) in clause (ii), by striking `or destruction of
property by means of explosive or fire' and inserting `destruction of property by means of
explosive or fire, or a crime of violence (as defined in section 16)'; (B) in clause
(iii), by striking `1978' and inserting `1978)'; and
(C) by adding at the end the following:
| `(iv) bribery of a public official, or the
misappropriation, theft, or embezzlement of public funds by or for the benefit of a public
official; `(v) smuggling or export control violations involving--
| `(I) an item controlled on the United States Munitions
List established under section 38 of the Arms Export Control Act (22 U.S.C. 2778); or `(II)
an item controlled under regulations under the Export Administration Regulations (15 C.F.R.
Parts 730-774); or |
|
`(vi) 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), section 924(n) (relating to firearms
trafficking),' before `section 956';
(C) by inserting `section 1030 (relating to computer fraud and abuse),' before `1032';
and
(D) by inserting `any felony violation of the Foreign Agents Registration Act of 1938,'
before `or any felony violation of the Foreign Corrupt Practices Act'. |
SEC. 316. ANTI-TERRORIST FORFEITURE
PROTECTION.
| (a) RIGHT TO CONTEST-
An owner of property that is confiscated under any provision of law relating to the
confiscation of assets of suspected international terrorists, may contest that
confiscation by filing a claim in the manner set forth in the Federal Rules of Civil
Procedure (Supplemental Rules for Certain Admiralty and Maritime Claims), and asserting as
an affirmative defense that--
| (1) the property is not subject to confiscation under
such provision of law; or (2) the innocent owner provisions of section 983(d) of title
18, United States Code, apply to the case. |
|
(b) EVIDENCE- In considering a claim filed under this
section, a court may admit evidence that is otherwise inadmissible under the Federal Rules
of Evidence, if the court determines that the evidence is reliable, and that compliance
with the Federal Rules of Evidence may jeopardize the national security interests of the
United States.
(c) CLARIFICATIONS-
| (1) PROTECTION OF RIGHTS- The exclusion of certain
provisions of Federal law from the definition of the term `civil forfeiture statute' in
section 983(i) of title 18, United States Code, shall not be construed to deny an owner of
property the right to contest the confiscation of assets of suspected international
terrorists under--
| (A) subsection (a) of this section; (B) the
Constitution; or
(C) subchapter II of chapter 5 of title 5, United States Code (commonly known as the
`Administrative Procedure Act'). |
|
(2) SAVINGS CLAUSE- Nothing in this section shall
limit or otherwise affect any other remedies that may be available to an owner of property
under section 983 of title 18, United States Code, or any other provision of law.
(d) TECHNICAL CORRECTION- Section 983(i)(2)(D) of
title 18, United States Code, is amended by inserting `or the International Emergency
Economic Powers Act (IEEPA) (50 U.S.C. 1701 et seq.)' before the semicolon.
SEC. 317. LONG-ARM JURISDICTION OVER
FOREIGN MONEY LAUNDERERS.
| Section 1956(b) of
title 18, United States Code, is amended--
| (1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving the margins 2 ems to the right; (2)
by inserting after `(b)' the following: `PENALTIES-
`(1) IN GENERAL- ';
(3) by inserting `, or section 1957' after `or (a)(3)'; and
(4) by adding at the end the following:
`(2) JURISDICTION OVER FOREIGN PERSONS- For purposes of adjudicating an action filed or
enforcing a penalty ordered under this section, the district courts shall have
jurisdiction over any foreign person, including any financial institution authorized under
the laws of a foreign country, against whom the action is brought, if service of process
upon the foreign person is made under the Federal Rules of Civil Procedure or the laws of
the country in which the foreign person is found, and--
| `(A) the foreign person commits an offense under
subsection (a) involving a financial transaction that occurs in whole or in part in the
United States; `(B) the foreign person converts, to his or her 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
`(C) the foreign person is a financial institution that maintains a bank account at a
financial institution in the United States. |
|
`(3) COURT AUTHORITY OVER ASSETS- A court described
in paragraph (2) 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.
`(4) FEDERAL RECEIVER-
| `(A) IN GENERAL- A court described in paragraph (2)
may appoint a Federal Receiver, in accordance with subparagraph (B) of this paragraph, to
collect, marshal, and take custody, control, and possession of all assets of the
defendant, wherever located, to satisfy a civil judgment under this subsection, a
forfeiture judgment under section 981 or 982, or a criminal sentence under section 1957 or
subsection (a) of this section, including an order of restitution to any victim of a
specified unlawful activity. `(B) APPOINTMENT AND AUTHORITY- A Federal Receiver
described in subparagraph (A)--
| `(i) may be appointed upon application of a Federal
prosecutor or a Federal or State regulator, by the court having jurisdiction over the
defendant in the case; `(ii) shall be an officer of the court, and the powers of the
Federal Receiver shall include the powers set out in section 754 of title 28, United
States Code; and
`(iii) shall have standing equivalent to that of a Federal prosecutor for the purpose
of submitting requests to obtain information regarding the assets of the defendant--
| `(I) from the Financial Crimes Enforcement Network of
the Department of the Treasury; or `(II) from a foreign country pursuant to a mutual
legal assistance treaty, multilateral agreement, or other arrangement for international
law enforcement assistance, provided that such requests are in accordance with the
policies and procedures of the Attorney General.'. |
|
|
|
SEC. 318. LAUNDERING MONEY THROUGH A
FOREIGN BANK.
| Section 1956(c) of
title 18, United States Code, is amended by striking paragraph (6) and inserting the
following:
| `(6) the term `financial institution' includes--
| `(A) any financial institution, as defined in section
5312(a)(2) of title 31, United States Code, or the regulations promulgated thereunder; and
`(B) any foreign bank, as defined in section 1 of the International Banking Act of 1978
(12 U.S.C. 3101).'. |
|
|
SEC. 319. FORFEITURE OF FUNDS IN
UNITED STATES INTERBANK ACCOUNTS.
| (a) FORFEITURE FROM
UNITED STATES INTERBANK ACCOUNT- Section 981 of title 18, United States Code, is amended
by adding at the end the following: `(k)
INTERBANK ACCOUNTS-
| `(1) IN GENERAL-
| `(A) IN GENERAL- For the purpose of a forfeiture under
this section or under the Controlled Substances Act (21 U.S.C. 801 et seq.), if funds are
deposited into an account at a foreign bank, and that foreign bank has an interbank
account in the United States with a covered financial institution (as defined in section
5318(j)(1) of title 31), the funds shall be deemed to have been deposited into the
interbank account in the United States, and any restraining order, seizure warrant, or
arrest warrant in rem regarding the funds may be served on the covered financial
institution, and funds in the interbank account, up to the value of the funds deposited
into the account at the foreign bank, may be restrained, seized, or arrested. `(B)
AUTHORITY TO SUSPEND- The Attorney General, in consultation with the Secretary of the
Treasury, may suspend or terminate a forfeiture under this section if the Attorney General
determines that a conflict of law exists between the laws of the jurisdiction in which the
foreign bank is located and the laws of the United States with respect to liabilities
arising from the restraint, seizure, or arrest of such funds, and that such suspension or
termination would be in the interest of justice and would not harm the national interests
of the United States. |
|
`(2) NO REQUIREMENT FOR GOVERNMENT TO TRACE FUNDS- If
a forfeiture action is brought against funds that are restrained, seized, or arrested
under paragraph (1), it shall not be necessary for the Government to establish that the
funds are directly traceable to the funds that were deposited into the foreign bank, nor
shall it be necessary for the Government to rely on the application of section 984.
`(3) CLAIMS BROUGHT BY OWNER OF THE FUNDS- If a
forfeiture action is instituted against funds restrained, seized, or arrested under
paragraph (1), the owner of the funds deposited into the account at the foreign bank may
contest the forfeiture by filing a claim under section 983.
`(4) DEFINITIONS- For purposes of this subsection,
the following definitions shall apply:
| `(A) INTERBANK ACCOUNT- The term `interbank account'
has the same meaning as in section 984(c)(2)(B). `(B) OWNER-
| `(i) IN GENERAL- Except as provided in clause (ii),
the term `owner'--
| `(I) means the person who was the owner, as that term
is defined in section 983(d)(6), of the funds that were deposited into the foreign bank at
the time such funds were deposited; and `(II) does not include either the foreign bank
or any financial institution acting as an intermediary in the transfer of the funds into
the interbank account. |
|
`(ii) EXCEPTION- The foreign bank may be considered
the `owner' of the funds (and no other person shall qualify as the owner of such funds)
only if--
| `(I) the basis for the forfeiture action is wrongdoing
committed by the foreign bank; or `(II) the foreign bank establishes, by a
preponderance of the evidence, that prior to the restraint, seizure, or arrest of the
funds, the foreign bank had discharged all or part of its obligation to the prior owner of
the funds, in which case the foreign bank shall be deemed the owner of the funds to the
extent of such discharged obligation.'. |
|
|
(b) BANK RECORDS- Section 5318 of title 31, United
States Code, as amended by this title, is amended by adding at the end the following:
`(k) BANK RECORDS RELATED TO ANTI-MONEY LAUNDERING
PROGRAMS-
| `(1) DEFINITIONS- For purposes of this subsection, the
following definitions shall apply:
| `(A) APPROPRIATE FEDERAL BANKING AGENCY- The term
`appropriate Federal banking agency' has the same meaning as in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813). `(B) INCORPORATED TERM- The term `correspondent
account' has the same meaning as in section 5318A(f)(1)(B). |
|
`(2) 120-HOUR RULE- Not later than 120 hours after
receiving a request by an appropriate Federal banking agency for information related to
anti-money laundering compliance by a covered financial institution or a customer of such
institution, a covered financial institution shall provide to the appropriate Federal
banking agency, or make available at a location specified by the representative of the
appropriate Federal banking agency, information and account documentation for any account
opened, maintained, administered or managed in the United States by the covered financial
institution.
`(3) FOREIGN BANK RECORDS-
| `(A) SUMMONS OR SUBPOENA OF RECORDS-
| `(i) IN GENERAL- The Secretary of the Treasury or the
Attorney General may issue a summons or subpoena to any foreign bank that maintains a
correspondent account in the United States and request records related to such
correspondent account, including records maintained outside of the United States relating
to the deposit of funds into the foreign bank. `(ii) SERVICE OF SUMMONS OR SUBPOENA- A
summons or subpoena referred to in clause (i) may be served on the foreign bank in the
United States if the foreign bank has a representative in the United States, or in a
foreign country pursuant to any mutual legal assistance treaty, multilateral agreement, or
other request for international law enforcement assistance. |
|
`(B) ACCEPTANCE OF SERVICE-
| `(i) MAINTAINING RECORDS IN THE UNITED STATES- Any
covered financial institution which maintains a correspondent account in the United States
for a foreign bank shall maintain records in the United States identifying the owners of
such foreign bank and the name and address of a person who resides in the United States
and is authorized to accept service of legal process for records regarding the
correspondent account. `(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, the covered financial institution shall provide the information to the
requesting officer not later than 7 days after receipt of the request. |
`(C) 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 receipt of written notice from the Secretary or the
Attorney General (in each case, after consultation with the other) that the foreign bank
has failed--
| `(I) to comply with a summons or subpoena issued under
subparagraph (A); or `(II) to initiate proceedings in a United States court contesting
such summons or subpoena. |
|
`(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 in accordance with this subsection.
`(iii) FAILURE TO TERMINATE RELATIONSHIP- Failure to
terminate a correspondent relationship in accordance with this subsection shall render the
covered financial institution liable for a civil penalty of up to $10,000 per day until
the correspondent relationship is so terminated.'.
(c) GRACE PERIOD- Financial institutions shall have
60 days from the date of enactment of this Act to comply with the provisions of section
5318(k) of title 31, United States Code, as added by this section.
(d) AUTHORITY TO ORDER CONVICTED CRIMINAL TO RETURN
PROPERTY LOCATED ABROAD-
| (1) FORFEITURE OF SUBSTITUTE PROPERTY- Section 413(p)
of the Controlled Substances Act (21 U.S.C. 853) is amended to read as follows: |
`(p) FORFEITURE OF SUBSTITUTE PROPERTY-
| `(1) IN GENERAL- Paragraph (2) of this subsection
shall apply, if any property described in subsection (a), as a result of any act or
omission of the defendant--
| `(A) cannot be located upon the exercise of due
diligence; `(B) has been transferred or sold to, or deposited with, a third party;
`(C) has been placed beyond the jurisdiction of the court;
`(D) has been substantially diminished in value; or
`(E) has been commingled with other property which cannot be divided without
difficulty. |
|
`(2) SUBSTITUTE PROPERTY- In any case described in
any of subparagraphs (A) through (E) of paragraph (1), the court shall order the
forfeiture of any other property of the defendant, up to the value of any property
described in subparagraphs (A) through (E) of paragraph (1), as applicable.
`(3) RETURN OF PROPERTY TO JURISDICTION- In the case
of property described in paragraph (1)(C), the court may, in addition to any other action
authorized by this subsection, order the defendant to return the property to the
jurisdiction of the court so that the property may be seized and forfeited.'.
(2) PROTECTIVE ORDERS- Section 413(e) of the
Controlled Substances Act (21 U.S.C. 853(e)) is amended by adding at the end the
following:
`(4) ORDER TO REPATRIATE AND DEPOSIT-
| `(A) IN GENERAL- Pursuant to its authority to enter a
pretrial restraining order under this section, the court may order a defendant to
repatriate any property that may be seized and forfeited, and to deposit that property
pending trial in the registry of the court, or with the United States Marshals Service or
the Secretary of the Treasury, in an interest-bearing account, if appropriate. `(B)
FAILURE TO COMPLY- Failure to comply with an order under this subsection, or an order to
repatriate property under subsection (p), shall be punishable as a civil or criminal
contempt of court, and may also result in an enhancement of the sentence of the defendant
under the obstruction of justice provision of the Federal Sentencing Guidelines.'. |
SEC. 320. 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, constituting, derived from, or traceable to, any
proceeds obtained directly or indirectly from an offense against a foreign nation, or any
property used to facilitate such an offense, if the offense--
| `(i) involves the manufacture, importation, sale, or
distribution of a controlled substance (as that term is defined for purposes of the
Controlled Substances Act), or any other conduct described in section 1956(c)(7)(B); `(ii)
would be punishable within the jurisdiction of the foreign nation by death or imprisonment
for a term exceeding 1 year; and
`(iii) would be punishable under the laws of the United States by imprisonment for a
term exceeding 1 year, if the act or activity constituting the offense had occurred within
the jurisdiction of the United States.'. |
|
|
SEC. 321. FINANCIAL INSTITUTIONS
SPECIFIED IN SUBCHAPTER II OF CHAPTER 53 OF TITLE 31, UNITED STATES CODE.
| (a) CREDIT UNIONS-
Subparagraph (E) of section 5312(2) of title 31, United States Code, is amended to read as
follows:
|
(b) FUTURES COMMISSION MERCHANT; COMMODITY TRADING
ADVISOR; COMMODITY POOL OPERATOR- Section 5312 of title 31, United States Code, is amended
by adding at the end the following new subsection:
`(c) ADDITIONAL DEFINITIONS- For purposes of this
subchapter, the following definitions shall apply:
| `(1) CERTAIN INSTITUTIONS INCLUDED IN DEFINITION- The
term `financial institution' (as defined in subsection (a)) includes the following:
| `(A) Any futures commission merchant, commodity
trading advisor, or commodity pool operator registered, or required to register, under the
Commodity Exchange Act.'. |
|
(c) CFTC INCLUDED- For purposes of this Act and any
amendment made by this Act to any other provision of law, the term `Federal functional
regulator' includes the Commodity Futures Trading Commission.
SEC. 322. CORPORATION REPRESENTED BY A
FUGITIVE.
| Section 2466 of title
18, United States Code, is amended by designating the present matter as subsection (a),
and adding at the end the following: `(b)
Subsection (a) may be applied to a claim filed by a corporation if any majority
shareholder, or individual filing the claim on behalf of the corporation is a person to
whom subsection (a) applies.'. |
SEC. 323. ENFORCEMENT OF FOREIGN
JUDGMENTS.
| Section 2467 of title
28, United States Code, is amended--
| (1) in subsection (d), by adding the following after
paragraph (2): `(3) PRESERVATION OF PROPERTY-
| `(A) IN GENERAL- To preserve the availability of
property subject to a foreign forfeiture or confiscation judgment, the Government may
apply for, and the court may issue, a restraining order pursuant to section 983(j) of
title 18, at any time before or after an application is filed pursuant to subsection
(c)(1) of this section. `(B) EVIDENCE- The court, in issuing a restraining order under
subparagraph (A)--
| `(i) may rely on information set forth in an affidavit
describing the nature of the proceeding or investigation underway in the foreign country,
and setting forth a reasonable basis to believe that the property to be restrained will be
named in a judgment of forfeiture at the conclusion of such proceeding; or `(ii) may
register and enforce a restraining order that has been issued by a court of competent
jurisdiction in the foreign country and certified by the Attorney General pursuant to
subsection (b)(2). |
|
`(C) LIMIT ON GROUNDS FOR OBJECTION- No person may
object to a restraining order under subparagraph (A) on any ground that is the subject of
parallel litigation involving the same property that is pending in a foreign court.'; |
|
(2) in subsection (b)(1)(C), by striking
`establishing that the defendant received notice of the proceedings in sufficient time to
enable the defendant' and inserting `establishing that the foreign nation took steps, in
accordance with the principles of due process, to give notice of the proceedings to all
persons with an interest in the property in sufficient time to enable such persons';
(3) in subsection (d)(1)(D), by striking `the
defendant in the proceedings in the foreign court did not receive notice' and inserting
`the foreign nation did not take steps, in accordance with the principles of due process,
to give notice of the proceedings to a person with an interest in the property'; and
(4) in subsection (a)(2)(A), by inserting `, any
violation of foreign law that would constitute a violation or an offense for which
property could be forfeited under Federal law if the offense were committed in the United
States' after `United Nations Convention'.
SEC. 324. REPORT AND RECOMMENDATION.
| Not later than 30
months after the date of enactment of this Act, the Secretary, in consultation with the
Attorney General, the Federal banking agencies (as defined at section 3 of the Federal
Deposit Insurance Act), the National Credit Union Administration Board, the Securities and
Exchange Commission, and such other agencies as the Secretary may determine, at the
discretion of the Secretary, shall evaluate the operations of the provisions of this
subtitle and make recommendations to Congress as to any legislative action with respect to
this subtitle as the Secretary may determine to be necessary or advisable. |
SEC. 325. CONCENTRATION ACCOUNTS AT
FINANCIAL INSTITUTIONS.
| Section 5318(h) of
title 31, United States Code, as amended by section 202 of this title, is amended by
adding at the end the following:
| `(3) CONCENTRATION ACCOUNTS- The Secretary may
prescribe regulations under this subsection that govern maintenance of concentration
accounts by financial institutions, in order to ensure that such accounts are not used to
prevent association of the identity of an individual customer with the movement of funds
of which the customer is the direct or beneficial owner, which regulations shall, at a
minimum--
| `(A) prohibit financial institutions from allowing
clients to direct transactions that move their funds into, out of, or through the
concentration accounts of the financial institution; `(B) prohibit financial
institutions and their employees from informing customers of the existence of, or the
means of identifying, the concentration accounts of the institution; and
`(C) require each financial institution to establish written procedures governing the
documentation of all transactions involving a concentration account, which procedures
shall ensure that, any time a transaction involving a concentration account commingles
funds belonging to 1 or more customers, the identity of, and specific amount belonging to,
each customer is documented.'. |
|
|
SEC. 326. VERIFICATION OF
IDENTIFICATION.
| (a) IN GENERAL- Section
5318 of title 31, United States Code, as amended by this title, is amended by adding at
the end the following: `(l)
IDENTIFICATION AND VERIFICATION OF ACCOUNTHOLDERS-
| `(1) IN GENERAL- Subject to the requirements of this
subsection, the Secretary of the Treasury shall prescribe regulations setting forth the
minimum standards for financial institutions and their customers regarding the identity of
the customer that shall apply in connection with the opening of an account at a financial
institution. `(2) MINIMUM REQUIREMENTS- The regulations shall, at a minimum, require
financial institutions to implement, and customers (after being given adequate notice) to
comply with, reasonable procedures for--
| `(A) verifying the identity of any person seeking to
open an account to the extent reasonable and practicable; `(B) maintaining records of
the information used to verify a person's identity, including name, address, and other
identifying information; and
`(C) consulting lists of known or suspected terrorists or terrorist organizations
provided to the financial institution by any government agency to determine whether a
person seeking to open an account appears on any such list. |
|
`(3) FACTORS TO BE CONSIDERED- In prescribing
regulations under this subsection, the Secretary shall take into consideration the various
types of accounts maintained by various types of financial institutions, the various
methods of opening accounts, and the various types of identifying information available.
`(4) CERTAIN FINANCIAL INSTITUTIONS- In the case of
any financial institution the business of which is engaging in financial activities
described in section 4(k) of the Bank Holding Company Act of 1956 (including financial
activities subject to the jurisdiction of the Commodity Futures Trading Commission), the
regulations prescribed by the Secretary under paragraph (1) shall be prescribed jointly
with each Federal functional regulator (as defined in section 509 of the
Gramm-Leach-Bliley Act, including the Commodity Futures Trading Commission) appropriate
for such financial institution.
`(5) EXEMPTIONS- The Secretary (and, in the case of
any financial institution described in paragraph (4), any Federal agency described in such
paragraph) may, by regulation or order, exempt any financial institution or type of
account from the requirements of any regulation prescribed under this subsection in
accordance with such standards and procedures as the Secretary may prescribe.
`(6) EFFECTIVE DATE- Final regulations prescribed
under this subsection shall take effect before the end of the 1-year period beginning on
the date of enactment of the International Money Laundering Abatement and Financial
Anti-Terrorism Act of 2001.'. |
(b) STUDY AND REPORT REQUIRED- Within 6 months after
the date of enactment of this Act, the Secretary, in consultation with the Federal
functional regulators (as defined in section 509 of the Gramm-Leach-Bliley Act) and other
appropriate Government agencies, shall submit a report to the Congress containing
recommendations for--
| (1) determining the most timely and effective way to
require foreign nationals to provide domestic financial institutions and agencies with
appropriate and accurate information, comparable to that which is required of United
States nationals, concerning the identity, address, and other related information about
such foreign nationals necessary to enable such institutions and agencies to comply with
the requirements of this section; (2) requiring foreign nationals to apply for and
obtain, before opening an account with a domestic financial institution, an identification
number which would function similarly to a Social Security number or tax identification
number; and
(3) establishing a system for domestic financial institutions and agencies to review
information maintained by relevant Government agencies for purposes of verifying the
identities of foreign nationals seeking to open accounts at those institutions and
agencies. |
SEC. 327. CONSIDERATION OF ANTI-MONEY
LAUNDERING RECORD.
| (a) BANK HOLDING
COMPANY ACT OF 1956-
| (1) IN GENERAL- Section 3(c) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the end the following new
paragraph: `(6) MONEY LAUNDERING- In every case, the Board shall take into
consideration the effectiveness of the company or companies in combatting money laundering
activities, including in overseas branches.'. |
|
(2) SCOPE OF APPLICATION- The amendment made by
paragraph (1) shall apply with respect to any application submitted to the Board of
Governors of the Federal Reserve System under section 3 of the Bank Holding Company Act of
1956 after December 31, 2001, which has not been approved by the Board before the date of
enactment of this Act.
(b) MERGERS SUBJECT TO REVIEW UNDER FEDERAL DEPOSIT
INSURANCE ACT-
| (1) IN GENERAL- Section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) is amended--
| (A) by redesignating paragraph (11) as paragraph (12);
and (B) by inserting after paragraph (10), the following new paragraph: |
|
`(11) MONEY LAUNDERING- In every case, the
responsible agency, shall take into consideration the effectiveness of any insured
depository institution involved in the proposed merger transaction in combatting money
laundering activities, including in overseas branches.'.
(2) SCOPE OF APPLICATION- The amendment made by
paragraph (1) shall apply with respect to any application submitted to the responsible
agency under section 18(c) of the Federal Deposit Insurance Act after December 31, 2001,
which has not been approved by all appropriate responsible agencies before the date of
enactment of this Act.
SEC. 328. INTERNATIONAL COOPERATION ON
IDENTIFICATION OF ORIGINATORS OF WIRE TRANSFERS.
| The Secretary shall--
| (1) in consultation with the Attorney General and the
Secretary of State, take all reasonable steps to encourage foreign governments to require
the inclusion of the name of the originator in wire transfer instructions sent to the
United States and other countries, with the information to remain with the transfer from
its origination until the point of disbursement; and (2) report annually to the
Committee on Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate on--
| (A) progress toward the goal enumerated in paragraph
(1), as well as impediments to implementation and an estimated compliance rate; and (B)
impediments to instituting a regime in which all appropriate identification, as defined by
the Secretary, about wire transfer recipients shall be included with wire transfers from
their point of origination until disbursement. |
|
|
SEC. 329. CRIMINAL PENALTIES.
| Any person who is an
official or employee of any department, agency, bureau, office, commission, or other
entity of the Federal Government, and any other person who is acting for or on behalf of
any such entity, who, directly or indirectly, in connection with the administration of
this title, corruptly demands, seeks, receives, accepts, or agrees to receive or accept
anything of value personally or for any other person or entity in return for--
| (1) being influenced in the performance of any
official act; (2) being influenced to commit or aid in the committing, or to collude
in, or allow, any fraud, or make opportunity for the commission of any fraud, on the
United States; or
(3) being induced to do or omit to do any act in violation of the official duty of such
official or person, |
|
shall be fined in an amount not more than 3 times the
monetary equivalent of the thing of value, or imprisoned for not more than 15 years, or
both. A violation of this section shall be subject to chapter 227 of title 18, United
States Code, and the provisions of the United States Sentencing Guidelines.
SEC. 330. INTERNATIONAL COOPERATION IN
INVESTIGATIONS OF MONEY LAUNDERING, FINANCIAL CRIMES, AND THE FINANCES OF TERRORIST
GROUPS.
| (a) NEGOTIATIONS- It is
the sense of the Congress that the President should direct the Secretary of State, the
Attorney General, or the Secretary of the Treasury, as appropriate, and in consultation
with the Board of Governors of the Federal Reserve System, to seek to enter into
negotiations 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
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 engaged in money
laundering or financial or other crimes. (b)
PURPOSES OF NEGOTIATIONS- It is the sense of the Congress that, in carrying out any
negotiations described in paragraph (1), the President should direct the Secretary of
State, the Attorney General, or the Secretary of the Treasury, as appropriate, to seek to
enter into and further cooperative efforts, voluntary information exchanges, the use of
letters rogatory, mutual legal assistance treaties, and international agreements to--
| (1) ensure that foreign banks and other financial
institutions maintain adequate records of transaction and account information relating to
any foreign terrorist 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 engaged in money laundering or financial or other crimes; and (2)
establish a mechanism whereby such records may be made available to United States law
enforcement officials and domestic financial institution supervisors, when appropriate. |
|
Subtitle B--Bank Secrecy Act Amendments and
Related Improvements
SEC. 351. AMENDMENTS RELATING TO
REPORTING OF SUSPICIOUS ACTIVITIES.
| (a) AMENDMENT RELATING
TO CIVIL LIABILITY IMMUNITY 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 institution that makes
a voluntary disclosure of any possible violation of law or regulation to a government
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 regulation of any State or political
subdivision of any State, or under any contract or other legally enforceable agreement
(including any arbitration agreement), for such disclosure or for any failure 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- Subparagraph (A) shall
not be construed as creating--
| `(i) any inference that the term `person', as used in
such subparagraph, may be construed more broadly than its ordinary usage so as to include
any government or agency of government; or `(ii) any immunity against, or otherwise
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 DISCLOSURES-
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 institution or any
director, officer, employee, or agent of any financial institution, voluntarily or
pursuant to this section or any other authority, reports 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 EMPLOYMENT REFERENCES-
| `(i) RULE OF CONSTRUCTION- Notwithstanding the
application of subparagraph (A) in any other context, subparagraph (A) shall not be
construed as prohibiting any financial institution, or any director, officer, employee, or
agent of such institution, from including information that was included in a report to
which subparagraph (A) applies--
| `(I) in a written employment reference that is
provided in accordance with section 18(w) of the Federal Deposit Insurance Act in response
to a request from another financial institution; or `(II) in a written termination
notice or employment reference that is provided in accordance with the rules of a
self-regulatory organization registered with the Securities and Exchange Commission or the
Commodity Futures Trading Commission, |
|
except that such written reference or notice may not
disclose that such information was also included in any such report, or that such report
was made.
`(ii) INFORMATION NOT REQUIRED- Clause (i) shall not
be construed, by itself, to create any affirmative duty to include any information
described in clause (i) in any employment reference or termination notice referred to in
clause (i).'. |
SEC. 352. ANTI-MONEY LAUNDERING
PROGRAMS.
| (a) IN GENERAL- Section
5318(h) of title 31, United States Code, is amended to read as follows: `(h) ANTI-MONEY LAUNDERING PROGRAMS-
| `(1) IN GENERAL- In order to guard against money
laundering through financial institutions, each financial institution shall establish
anti-money laundering programs, including, at a minimum--
| `(A) the development of internal policies, procedures,
and controls; `(B) the designation of a compliance officer;
`(C) an ongoing employee training program; and
`(D) an independent audit function to test programs. |
|
`(2) REGULATIONS- The Secretary of the Treasury,
after consultation with the appropriate Federal functional regulator (as defined in
section 509 of the Gramm-Leach-Bliley Act), may prescribe minimum standards for programs
established under paragraph (1), and may exempt from the application of those standards
any financial institution that is not subject to the provisions of the rules contained in
part 103 of title 31, of the Code of Federal Regulations, or any successor rule thereto,
for so long as such financial institution is not subject to the provisions of such
rules.'. |
(b) EFFECTIVE DATE- The amendment made by subsection
(a) shall take effect at the end of the 180-day period beginning on the date of enactment
of this Act.
(c) DATE OF APPLICATION OF REGULATIONS; FACTORS TO BE
TAKEN INTO ACCOUNT- Before the end of the 180-day period beginning on the date of
enactment of this Act, the Secretary shall prescribe regulations that consider the extent
to which the requirements imposed under this section are commensurate with the size,
location, and activities of the financial institutions to which such regulations apply.
SEC. 353. PENALTIES FOR VIOLATIONS OF
GEOGRAPHIC TARGETING ORDERS AND CERTAIN RECORDKEEPING REQUIREMENTS, AND LENGTHENING
EFFECTIVE PERIOD OF GEOGRAPHIC TARGETING ORDERS.
| (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 `subchapter
or a regulation prescribed'; and (2) 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 `sections 5314 and 5315)'. |
|
(b) CRIMINAL PENALTIES FOR VIOLATION OF TARGETING
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 regulation 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)';
and |
|
(2) in subsection (b)--
| (A) by inserting `or order issued' after `willfully
violating this subchapter or a regulation 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),'. |
(c) STRUCTURING TRANSACTIONS TO EVADE TARGETING ORDER
OR CERTAIN RECORDKEEPING REQUIREMENTS- Section 5324(a) of title 31, United States Code, is
amended--
| (1) by inserting a comma after `shall'; (2) by
striking `section--' and inserting `section, the reporting or recordkeeping requirements
imposed by any order issued under section 5326, or the recordkeeping requirements imposed
by any regulation prescribed under section 21 of the Federal Deposit Insurance Act or
section 123 of Public Law 91-508--';
(3) in paragraph (1), by inserting `, to file a report or to maintain a record required
by an order issued under section 5326, or to maintain a record required pursuant 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'; and
(4) in paragraph (2), by inserting `, to file a report or to maintain a record required
by any order issued under section 5326, or to maintain a record required pursuant to any
regulation prescribed under section 5326, or to maintain a record required pursuant 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'. |
(d) LENGTHENING EFFECTIVE PERIOD OF GEOGRAPHIC
TARGETING ORDERS- Section 5326(d) of title 31, United States Code, is amended by striking
`more than 60' and inserting `more than 180'.
SEC. 354. ANTI-MONEY LAUNDERING
STRATEGY.
| Section 5341(b) of
title 31, United States Code, is amended by adding at the end the following:
| `(12) DATA REGARDING FUNDING OF TERRORISM- Data
concerning money laundering efforts related to the funding of acts of international
terrorism, and efforts directed at the prevention, detection, and prosecution of such
funding.'. |
|
SEC. 355. AUTHORIZATION TO INCLUDE
SUSPICIONS OF ILLEGAL 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
following: `(w) WRITTEN EMPLOYMENT REFERENCES MAY
CONTAIN SUSPICIONS OF INVOLVEMENT IN ILLEGAL ACTIVITY-
| `(1) AUTHORITY TO DISCLOSE INFORMATION-
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 institution-affiliated party in potentially unlawful activity. `(2) INFORMATION
NOT REQUIRED- Nothing in paragraph (1) shall be construed, by itself, to create any
affirmative duty to include any information described in paragraph (1) in any employment
reference referred to in paragraph (1).
`(3) MALICIOUS INTENT- Notwithstanding any other provision of this subsection,
voluntary disclosure made by an insured depository institution, and any director, officer,
employee, or agent of such institution under this subsection concerning potentially
unlawful activity that is made with malicious intent, shall not be shielded from liability
from the person identified in the disclosure.
`(4) DEFINITION- For purposes of this subsection, the term `insured depository
institution' includes any uninsured branch or agency of a foreign bank.'. |
|
SEC. 356. REPORTING OF SUSPICIOUS
ACTIVITIES BY SECURITIES BROKERS AND DEALERS; INVESTMENT COMPANY STUDY.
| (a) DEADLINE FOR
SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS FOR REGISTERED BROKERS AND DEALERS- The
Secretary, after consultation with the Securities and Exchange Commission and the Board of
Governors of the Federal Reserve System, shall publish proposed regulations in the Federal
Register before January 1, 2002, requiring 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. Such
regulations shall be published in final form not later than July 1, 2002. (b) SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS FOR FUTURES
COMMISSION MERCHANTS, COMMODITY TRADING ADVISORS, AND COMMODITY POOL OPERATORS- The
Secretary, in consultation with the Commodity Futures Trading Commission, may prescribe
regulations requiring futures commission merchants, commodity trading advisors, and
commodity pool operators registered under the Commodity Exchange Act to submit suspicious
activity reports under section 5318(g) of title 31, United States Code.
(c) REPORT ON INVESTMENT COMPANIES-
| (1) IN GENERAL- Not later than 1 year after the date
of enactment of this Act, the Secretary, the Board of Governors of the Federal Reserve
System, and the Securities and Exchange Commission shall jointly submit a report to the
Congress on recommendations for effective regulations to apply the requirements of
subchapter II of chapter 53 of title 31, United States Code, to investment companies
pursuant to section 5312(a)(2)(I) of title 31, United States Code. (2) DEFINITION- For
purposes of this subsection, the term `investment company'--
| (A) has the same meaning as in section 3 of the
Investment Company Act of 1940 (15 U.S.C. 80a-3); and (B) includes any person that, but
for the exceptions provided for in paragraph (1) or (7) of section 3(c) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3(c)), would be an investment company. |
|
(3) ADDITIONAL RECOMMENDATIONS- The report required
by paragraph (1) may make different recommendations for different types of entities
covered by this subsection.
(4) BENEFICIAL OWNERSHIP OF PERSONAL HOLDING
COMPANIES- The report described in paragraph (1) shall also include recommendations as to
whether the Secretary should promulgate regulations to treat any corporation or business
or other grantor trust whose assets are predominantly securities, bank certificates of
deposit, or other securities or investment instruments (other than such as relate to
operating subsidiaries of such corporation or trust) and that has 5 or fewer common
shareholders or holders of beneficial or other equity interest, as a financial institution
within the meaning of that phrase in section 5312(a)(2)(I) and whether to require such
corporations or trusts to disclose their beneficial owners when opening accounts or
initiating funds transfers at any domestic financial institution. |
SEC. 357. SPECIAL REPORT ON
ADMINISTRATION OF BANK SECRECY PROVISIONS.
| (a) REPORT REQUIRED-
Not later than 6 months after the date of enactment of this Act, the Secretary shall
submit a report to the Congress relating to the role of the Internal Revenue Service in
the administration of subchapter II of chapter 53 of title 31, United States Code
(commonly known as the `Bank Secrecy Act'). (b)
CONTENTS- The report required by subsection (a)--
| (1) shall specifically address, and contain
recommendations concerning--
| (A) whether it is advisable to shift the processing of
information reporting to the Department of the Treasury under the Bank Secrecy Act
provisions to facilities other than those managed by the Internal Revenue Service; and (B)
whether it remains reasonable and efficient, in light of the objective of both
anti-money-laundering programs and Federal tax administration, for the Internal Revenue
Service to retain authority and responsibility for audit and examination of the compliance
of money services businesses and gaming institutions with those Bank Secrecy Act
provisions; and |
|
(2) shall, if the Secretary determines that the
information processing responsibility or the audit and examination responsibility of the
Internal Revenue Service, or both, with respect to those Bank Secrecy Act provisions
should be transferred to other agencies, include the specific recommendations of the
Secretary regarding the agency or agencies to which any such function should be
transferred, complete with a budgetary and resources plan for expeditiously accomplishing
the transfer. |
SEC. 358. BANK SECRECY PROVISIONS AND
ACTIVITIES OF UNITED STATES INTELLIGENCE AGENCIES TO FIGHT INTERNATIONAL TERRORISM.
| (a) AMENDMENT RELATING
TO THE PURPOSES OF CHAPTER 53 OF TITLE 31, UNITED STATES CODE- Section 5311 of title 31,
United States Code, is amended by inserting before the period at the end the following: `,
or in the conduct of intelligence or counterintelligence activities, including analysis,
to protect against international terrorism'. (b)
AMENDMENT RELATING TO REPORTING OF SUSPICIOUS ACTIVITIES- Section 5318(g)(4)(B) of title
31, United States Code, is amended by striking `or supervisory agency' and inserting `,
supervisory agency, or United States intelligence agency for use in the conduct of
intelligence or counterintelligence activities, including analysis, to protect against
international terrorism'.
(c) AMENDMENT RELATING TO AVAILABILITY OF REPORTS-
Section 5319 of title 31, United States Code, is amended to read as follows: |
`Sec. 5319. Availability of reports
| `The Secretary of the
Treasury shall make information in a report filed under this subchapter available to an
agency, including any State financial institutions supervisory agency, United States
intelligence agency or self-regulatory organization registered with the Securities and
Exchange Commission or the Commodity Futures Trading Commission, upon request of the head
of the agency or organization. The report shall be available for a purpose that is
consistent with this subchapter. The Secretary may only require reports on the use of such
information by any State financial institutions supervisory agency for other than
supervisory purposes or by United States intelligence agencies. However, a report and
records of reports are exempt from disclosure under section 552 of title 5.'. (d) AMENDMENT RELATING TO THE PURPOSES OF THE BANK SECRECY ACT
PROVISIONS- Section 21(a) of the Federal Deposit Insurance Act (12 U.S.C. 1829b(a)) is
amended to read as follows:
`(a) CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE-
| `(1) FINDINGS- Congress finds that--
| `(A) adequate records maintained by insured depository
institutions have a high degree of usefulness in criminal, tax, and regulatory
investigations or proceedings, and that, given the threat posed to the security of the
Nation on and after the terrorist attacks against the United States on September 11, 2001,
such records may also have a high degree of usefulness in the conduct of intelligence or
counterintelligence activities, including analysis, to protect against domestic and
international terrorism; and `(B) microfilm or other reproductions and other records
made by insured depository institutions of checks, as well as records kept by such
institutions, of the identity of persons maintaining or authorized to act with respect to
accounts therein, have been of particular value in proceedings described in subparagraph
(A). |
|
`(2) PURPOSE- It is the purpose of this section to
require the maintenance of appropriate types of records by insured depository institutions
in the United States where such records have a high degree of usefulness in criminal, tax,
or regulatory investigations or proceedings, recognizes that, given the threat posed to
the security of the Nation on and after the terrorist attacks against the United States on
September 11, 2001, such records may also have a high degree of usefulness in the conduct
of intelligence or counterintelligence activities, including analysis, to protect against
international terrorism.'. |
(e) AMENDMENT RELATING TO THE PURPOSES OF THE BANK
SECRECY ACT- Section 123(a) of Public Law 91-508 (12 U.S.C. 1953(a)) is amended to read as
follows:
`(a) REGULATIONS- If the Secretary determines that
the maintenance of appropriate records and procedures by any uninsured bank or uninsured
institution, or any person engaging in the business of carrying on in the United States
any of the functions referred to in subsection (b), has a high degree of usefulness in
criminal, tax, or regulatory investigations or proceedings, and that, given the threat
posed to the security of the Nation on and after the terrorist attacks against the United
States on September 11, 2001, such records may also have a high degree of usefulness in
the conduct of intelligence or counterintelligence activities, including analysis, to
protect against international terrorism, he may by regulation require such bank,
institution, or person.'.
(f) AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT-
The Right to Financial Privacy Act of 1978 is amended--
| (1) in section 1112(a) (12 U.S.C. 3412(a)), by
inserting `, or intelligence or counterintelligence activity, investigation or analysis
related to international terrorism' after `legitimate law enforcement inquiry'; (2) in
section 1114(a)(1) (12 U.S.C. 3414(a)(1))--
| (A) in subparagraph (A), by striking `or' at the end; (B)
in subparagraph (B), by striking the period at the end and inserting `; or'; and
(C) by adding at the end the following:
`(C) a Government authority authorized to conduct investigations of, or intelligence or
counterintelligence analyses related to, international terrorism for the purpose of
conducting such investigations or analyses.'; and |
|
(3) in section 1120(a)(2) (12 U.S.C. 3420(a)(2)), by
inserting `, or for a purpose authorized by section 1112(a)' before the semicolon at the
end.
(g) AMENDMENT TO THE FAIR CREDIT REPORTING ACT-
| (1) IN GENERAL- The Fair Credit Reporting Act (15
U.S.C. 1681 et seq.) is amended--
| (A) by redesignating the second of the 2 sections
designated as section 624 (15 U.S.C. 1681u) (relating to disclosure to FBI for
counterintelligence purposes) as section 625; and (B) by adding at the end the
following new section: |
|
`Sec. 626. Disclosures to governmental
agencies for counterterrorism purposes
| `(a) DISCLOSURE-
Notwithstanding section 604 or any other provision of this title, a consumer reporting
agency shall furnish a consumer report of a consumer and all other information in a
consumer's file to a government agency authorized to conduct investigations of, or
intelligence or counterintelligence activities or analysis related to, international
terrorism when presented with a written certification by such government agency that such
information is necessary for the agency's conduct or such investigation, activity or
analysis. `(b) FORM OF CERTIFICATION- The
certification described in subsection (a) shall be signed by a supervisory official
designated by the head of a Federal agency or an officer of a Federal agency whose
appointment to office is required to be made by the President, by and with the advice and
consent of the Senate.
`(c) CONFIDENTIALITY- No consumer reporting agency, or
officer, employee, or agent of such consumer reporting agency, shall disclose to any
person, or specify in any consumer report, that a government agency has sought or obtained
access to information under subsection (a).
`(d) RULE OF CONSTRUCTION- Nothing in section 625 shall
be construed to limit the authority of the Director of the Federal Bureau of Investigation
under this section.
`(e) SAFE HARBOR- Notwithstanding any other provision of
this title, any consumer reporting agency or agent or employee thereof making disclosure
of consumer reports or other information pursuant to this section in good-faith reliance
upon a certification of a governmental agency pursuant to the provisions of this section
shall not be liable to any person for such disclosure under this subchapter, the
constitution of any State, or any law or regulation of any State or any political
subdivision of any State.'.
| (2) CLERICAL AMENDMENTS- The table of sections for the
Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
| (A) by redesignating the second of the 2 items
designated as section 624 as section 625; and (B) by inserting after the item relating
to section 625 (as so redesignated) the following new item: |
|
`626. Disclosures to governmental agencies for
counterterrorism purposes.'. |
(h) APPLICATION OF AMENDMENTS- The amendments made by
this section shall apply with respect to reports filed or records maintained on, before,
or after the date of enactment of this Act.
SEC. 359. REPORTING OF SUSPICIOUS
ACTIVITIES BY UNDERGROUND BANKING SYSTEMS.
(a) DEFINITION FOR
SUBCHAPTER- Section 5312(a)(2)(R) of title 31, United States Code, is amended to read as
follows:
|
| `(R) a licensed sender of money or any other person
who engages as a business in the transmission of funds, including any person who engages
as a business in an informal money transfer system or any network of people who engage as
a business in facilitating the transfer of money domestically or internationally outside
of the conventional financial institutions system;'. |
|
|
|
(b) MONEY TRANSMITTING BUSINESS- Section
5330(d)(1)(A) of title 31, United States Code, is amended by inserting before the
semicolon the following: `or any other person who engages as a business in the
transmission of funds, including any person who engages as a business in an informal money
transfer system or any network of people who engage as a business in facilitating the
transfer of money domestically or internationally outside of the conventional financial
institutions system;'.
(c) APPLICABILITY OF RULES- Section 5318 of title 31,
United States Code, as amended by this title, is amended by adding at the end the
following:
`(l) APPLICABILITY OF RULES- Any rules promulgated
pursuant to the authority contained in section 21 of the Federal Deposit Insurance Act (12
U.S.C. 1829b) shall apply, in addition to any other financial institution to which such
rules apply, to any person that engages as a business in the transmission of funds,
including any person who engages as a business in an informal money transfer system or any
network of people who engage as a business in facilitating the transfer of money
domestically or internationally outside of the conventional financial institutions
system.'.
(d) REPORT- Not later than 1 year after the date of
enactment of this Act, the Secretary of the Treasury shall report to Congress on the need
for any additional legislation relating to persons who engage as a business in an informal
money transfer system or any network of people who engage as a business in facilitating
the transfer of money domestically or internationally outside of the conventional
financial institutions system, counter money laundering and regulatory controls relating
to underground money movement and banking systems, including whether the threshold for the
filing of suspicious activity reports under section 5318(g) of title 31, United States
Code should be lowered in the case of such systems.
SEC. 360. USE OF AUTHORITY OF UNITED
STATES EXECUTIVE DIRECTORS.
| (a) ACTION BY THE
PRESIDENT- If the President determines that a particular foreign country has taken or has
committed to take actions that contribute to efforts of the United States to respond to,
deter, or prevent acts of international terrorism, the Secretary may, consistent with
other applicable provisions of law, instruct the United States Executive Director of each
international financial institution to use the voice and vote of the Executive Director to
support any loan or other utilization of the funds of respective institutions for such
country, or any public or private entity within such country. (b) USE OF VOICE AND VOTE- The Secretary may instruct the United
States Executive Director of each international financial institution to aggressively use
the voice and vote of the Executive Director to require an auditing of disbursements at
such institutions to ensure that no funds are paid to persons who commit, threaten to
commit, or support terrorism.
(c) DEFINITION- For purposes of this section, the term
`international financial institution' means an institution described in section 1701(c)(2)
of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)). |
SEC. 361. 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: |
|
`Sec. 310. Financial Crimes
Enforcement Network
| `(a) IN GENERAL- The
Financial Crimes Enforcement Network established by order of the Secretary of the Treasury
(Treasury Order Numbered 105-08, in this section referred to as `FinCEN') on April 25,
1990, shall be a bureau in the Department of the Treasury. `(b) DIRECTOR-
| `(1) APPOINTMENT- The head of FinCEN shall be the
Director, who shall be appointed by the Secretary of the Treasury. `(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, financial criminal activities, and other financial
activities to the Under Secretary of the Treasury for Enforcement. `(B) Maintain a
government-wide data access service, with access, in accordance with applicable legal
requirements, to the following:
| `(i) Information collected by the Department of the
Treasury, including report information filed under subchapter II of chapter 53 of this
title (such as reports on cash transactions, foreign financial agency transactions and
relationships, foreign currency transactions, exporting and importing monetary
instruments, and suspicious activities), chapter 2 of title I of Public Law 91-508, and
section 21 of the Federal Deposit Insurance Act. `(ii) Information regarding national
and international currency flows.
`(iii) Other records and data maintained 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 requirements and policies and guidelines established by
the Secretary of the Treasury and the Under Secretary of the Treasury for Enforcement to--
| `(i) identify possible criminal activity to
appropriate Federal, State, local, and foreign law enforcement agencies; `(ii) support
ongoing criminal financial investigations and prosecutions and related proceedings,
including civil and criminal tax and forfeiture proceedings;
`(iii) identify possible instances of noncompliance with subchapter II of chapter 53 of
this title, chapter 2 of title I 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 and other appropriate Federal regulatory agencies;
`(iv) evaluate and recommend possible uses of special currency reporting requirements
under section 5326;
`(v) determine emerging trends and methods in money laundering and other financial
crimes;
`(vi) support the conduct of intelligence or counterintelligence activities, including
analysis, to protect against international terrorism; and
`(vii) support government initiatives against money laundering. |
|
`(D) Establish and maintain a financial crimes
communications center to furnish law enforcement authorities with intelligence information
related to emerging or ongoing investigations and undercover operations.
`(E) Furnish research, analytical, and informational
services to financial institutions, appropriate Federal regulatory agencies with regard to
financial institutions, and appropriate Federal, State, local, and foreign law enforcement
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
detection, prevention, and prosecution of terrorism, organized crime, money laundering,
and other financial crimes.
`(F) Assist Federal, State, local, and foreign law
enforcement and regulatory authorities in combatting the use of informal, nonbank networks
and payment and barter system mechanisms that permit the transfer of funds or the
equivalent of funds without records and without compliance with criminal and tax laws.
`(G) Provide computer and data support and data
analysis to the Secretary of the Treasury for tracking and controlling foreign assets.
`(H) Coordinate with financial intelligence units in
other countries on anti-terrorism and anti-money laundering initiatives, and similar
efforts.
`(I) Administer the requirements of subchapter II of
chapter 53 of this title, chapter 2 of title I of Public Law 91-508, and section 21 of the
Federal Deposit Insurance Act, to the extent delegated such authority by the Secretary of
the Treasury.
`(J) Such other duties and powers as the Secretary of
the Treasury may delegate or prescribe. |
`(c) REQUIREMENTS RELATING TO MAINTENANCE AND USE OF
DATA BANKS- The Secretary of the Treasury shall establish and maintain operating
procedures with respect to the government-wide data access service and the financial
crimes communications center maintained by FinCEN which provide--
| `(1) for the coordinated and efficient transmittal of
information to, entry of information into, and withdrawal of information from, the data
maintenance system maintained by the Network, including--
| `(A) the submission of reports through the Internet or
other secure network, whenever possible; `(B) the cataloguing of information in a
manner that facilitates rapid retrieval by law enforcement personnel of meaningful data;
and
`(C) a procedure that provides for a prompt initial review of suspicious activity
reports and other reports, or such other means as the Secretary may provide, to identify
information that warrants immediate action; and |
|
`(2) in accordance with section 552a of title 5 and
the Right to Financial Privacy Act of 1978, appropriate standards and guidelines for
determining--
| `(A) who is to be given access to the information
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
associated with the exercise of constitutional rights is to be screened out of the data
maintenance system. |
`(d) AUTHORIZATION OF APPROPRIATIONS- There are
authorized to be appropriated for FinCEN such sums as may be necessary for fiscal years
2002, 2003, 2004, and 2005.'.
(b) COMPLIANCE WITH REPORTING REQUIREMENTS- The
Secretary of the Treasury shall study methods for improving compliance with the reporting
requirements established in section 5314 of title 31, United States Code, and shall submit
a report on such study to the Congress by the end of the 6-month period beginning on the
date of enactment of this Act and each 1-year period thereafter. The initial report shall
include historical data on compliance with such reporting requirements.
(c) 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 section 309 the
following new item:
`310. Financial Crimes Enforcement Network.'. |
SEC. 362. ESTABLISHMENT OF HIGHLY
SECURE NETWORK.
| (a) IN GENERAL- The
Secretary shall establish a highly secure network in the Financial Crimes Enforcement
Network that--
| (1) allows financial institutions to file reports
required under subchapter II or III of chapter 53 of title 31, United States Code, chapter
2 of Public Law 91-508, or section 21 of the Federal Deposit Insurance Act through the
secure network; and (2) provides financial institutions with alerts and other
information regarding suspicious activities that warrant immediate and enhanced scrutiny. |
|
(b) EXPEDITED DEVELOPMENT- The Secretary shall take
such action as may be necessary to ensure that the secure network required under
subsection (a) is fully operational before the end of the 9-month period beginning on the
date of enactment of this Act.
SEC. 363. INCREASE IN CIVIL AND
CRIMINAL PENALTIES FOR MONEY LAUNDERING.
| (a) CIVIL PENALTIES-
Section 5321(a) of title 31, United States Code, is amended by adding at the end the
following:
| `(7) PENALTIES FOR INTERNATIONAL COUNTER MONEY
LAUNDERING VIOLATIONS- The Secretary may impose a civil money penalty in an amount equal
to not less than 2 times the amount of the transaction, but not more than $1,000,000, on
any financial institution or agency that violates any provision of subsection (i) or (j)
of section 5318 or any special measures imposed under section 5318A.'. |
|
(b) CRIMINAL PENALTIES- Section 5322 of title 31,
United States Code, is amended by adding at the end the following:
`(d) A financial institution or agency that violates
any provision of subsection (i) or (j) of section 5318, or any special measures imposed
under section 5318A, or any regulation prescribed under subsection (i) or (j) of section
5318 or section 5318A, shall be fined in an amount equal to not less than 2 times the
amount of the transaction, but not more than $1,000,000.'.
SEC. 364. UNIFORM PROTECTION AUTHORITY
FOR FEDERAL RESERVE FACILITIES.
| Section 11 of the
Federal Reserve Act (12 U.S.C. 248) is amended by adding at the end the following: `(q) UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE FACILITIES-
| `(1) Notwithstanding any other provision of law, to
authorize personnel to act as law enforcement officers to protect and safeguard the
premises, grounds, property, personnel, including members of the Board, of the Board, or
any Federal reserve bank, and operations conducted by or on behalf of the Board or a
reserve bank. `(2) The Board may, subject to the regulations prescribed under paragraph
(5), delegate authority to a Federal reserve bank to authorize personnel to act as law
enforcement officers to protect and safeguard the bank's premises, grounds, property,
personnel, and operations conducted by or on behalf of the bank.
`(3) Law enforcement officers designated or authorized by the Board or a reserve bank
under paragraph (1) or (2) are authorized while on duty to carry firearms and make arrests
without warrants for any offense against the United States committed in their presence, or
for any felony cognizable under the laws of the United States committed or being committed
within the buildings and grounds of the Board or a reserve bank if they have reasonable
grounds to believe that the person to be arrested has committed or is committing such a
felony. Such officers shall have access to law enforcement information that may be
necessary for the protection of the property or personnel of the Board or a reserve bank.
`(4) For purposes of this subsection, the term `law enforcement officers' means
personnel who have successfully completed law enforcement training and are authorized to
carry firearms and make arrests pursuant to this subsection.
`(5) The law enforcement authorities provided for in this subsection may be exercised
only pursuant to regulations prescribed by the Board and approved by the Attorney
General.'. |
|
SEC. 365. REPORTS RELATING TO COINS
AND CURRENCY RECEIVED IN NONFINANCIAL TRADE OR BUSINESS.
| (a) REPORTS REQUIRED-
Subchapter II of chapter 53 of title 31, United States Code, is amended by adding at the
end the following new section: |
`Sec. 5331. 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 business, receives more than $10,000 in coins or
currency in 1 transaction (or 2 or more related transactions), |
|
shall file a report described in subsection (b) with
respect to such transaction (or related transactions) with the Financial Crimes
Enforcement Network at such time and in such manner as the Secretary may, by regulation,
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 prescribe; `(2)
contains--
| `(A) the name and address, and such other
identification information as the Secretary may require, of the person from whom the coins
or currency was received; `(B) the amount of coins or currency received;
`(C) the date and nature of the transaction; and
`(D) such other information, including the identification of the person filing the
report, as the Secretary may prescribe. |
|
`(c) EXCEPTIONS-
| `(1) AMOUNTS RECEIVED BY FINANCIAL INSTITUTIONS-
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 section, the
term `currency' includes--
| `(A) foreign currency; and `(B) to the extent
provided in regulations prescribed by the Secretary, any monetary instrument (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 account 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).'.
(b) PROHIBITION ON STRUCTURING TRANSACTIONS-
| (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 TRANSACTIONS
INVOLVING NONFINANCIAL TRADES OR BUSINESSES- No person shall, for the purpose of evading
the report requirements of section 5333 or any regulation prescribed under such section--
| `(1) cause or attempt to cause a nonfinancial trade or
business to fail to file a report required under section 5333 or any regulation prescribed
under such section; `(2) cause or attempt to cause a nonfinancial trade or business to
file a report required under section 5333 or any regulation prescribed under such section
that contains a material omission or misstatement of fact; or
`(3) structure or assist in structuring, or attempt to structure or assist in
structuring, any transaction with 1 or more nonfinancial trades or businesses.'.
(2) TECHNICAL AND CONFORMING AMENDMENTS-
| (A) The heading for subsection (a) of section 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 BUSINESS-
| (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 section 5313 and regulations
prescribed under such section.'.
(2) TECHNICAL AND CONFORMING AMENDMENTS-
| (A) Section 5312(a)(3)(C) of title 31, United States
Code, is amended by striking `section 5316,' and inserting `sections 5333 and 5316,'. (B)
Subsections (a) through (f) of section 5318 of title 31, United States Code, and sections
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 institutions' each place such term
appears. |
|
(c) CLERICAL AMENDMENT- The table of sections for
chapter 53 of title 31, United States Code, is amended by inserting after the item
relating to section 5332 (as added by section 112 of this title) the following new item:
| `5331. Reports relating to coins and currency received
in nonfinancial trade or business.'. |
(f) REGULATIONS- Regulations which the Secretary
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 enactment of this Act.
SEC. 366. EFFICIENT USE OF CURRENCY
TRANSACTION REPORT 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 regulatory investigations and proceedings
and the usefulness of such reports has only increased in the years since the requirements
were established. (2) In 1994, in response to reports and testimony that excess amounts
of currency transaction reports were interfering with effective law enforcement, the
Congress reformed the currency transaction report exemption requirements to provide--
| (A) mandatory exemptions for certain reports that had
little usefulness for law enforcement, such as cash transfers between depository
institutions and cash deposits from government agencies; and (B) discretionary
authority for the Secretary of the Treasury to provide exemptions, subject to criteria and
guidelines established by the Secretary, for financial institutions with regard to regular
business customers that maintain accounts at an institution into which frequent 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 effective law enforcement. |
(b) STUDY AND REPORT-
| (1) STUDY REQUIRED- The Secretary shall conduct a
study of--
| (A) the possible expansion of the statutory exemption
system in effect under section 5313 of title 31, United States Code; and (B) methods
for improving financial institution 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, including improvements in the systems in effect at
financial institutions for regular review of the exemption procedures used at the
institution and the training of personnel in its effective use. |
|
(2) REPORT REQUIRED- The Secretary of the Treasury
shall submit a report to the Congress before the end of the 1-year period beginning on the
date of enactment of this Act containing the findings and conclusions of the Secretary
with regard to the study required under subsection (a), and such recommendations for
legislative or administrative action as the Secretary determines to be appropriate.
Subtitle C--Currency Crimes and Protection
SEC. 371. BULK CASH SMUGGLING INTO OR
OUT OF THE UNITED STATES.
| (a) FINDINGS- The
Congress finds the following:
| (1) Effective enforcement of the currency reporting
requirements of subchapter II of chapter 53 of title 31, United States Code, and the
regulations prescribed under such subchapter, has forced drug dealers and other criminals
engaged in cash-based businesses to avoid using traditional financial institutions. (2)
In their effort to avoid using traditional financial institutions, drug dealers and other
criminals are forced to move large quantities of currency in bulk form to and through the
airports, border crossings, and other ports of entry where the currency can be smuggled
out of the United States and placed in a foreign financial institution or sold on the
black market.
(3) The transportation and smuggling of cash in bulk form may now be the most common
form of money laundering, and the movement of large sums of cash is one of the most
reliable warning signs of drug trafficking, terrorism, money laundering, racketeering, tax
evasion and similar crimes.
(4) The intentional transportation into or out of the United States of large amounts of
currency or monetary instruments, in a manner designed to circumvent the mandatory
reporting provisions of subchapter II of chapter 53 of title 31, United States Code,, is
the equivalent of, and creates the same harm as, the smuggling of goods.
(5) The arrest and prosecution of bulk cash smugglers are important parts of law
enforcement's effort to stop the laundering of criminal proceeds, but the couriers who
attempt to smuggle the cash out of the United States are typically low-level employees of
large criminal organizations, and thus are easily replaced. Accordingly, only the
confiscation of the smuggled bulk cash can effectively break the cycle of criminal
activity of which the laundering of the bulk cash is a critical part.
(6) The current penalties for violations of the currency reporting requirements are
insufficient to provide a deterrent to the laundering of criminal proceeds. In particular,
in cases where the only criminal violation under current law is a reporting offense, the
law does not adequately provide for the confiscation of smuggled currency. In contrast, if
the smuggling of bulk cash were itself an offense, the cash could be confiscated as the
corpus delicti of the smuggling offense. |
|
(b) PURPOSES- The purposes of this section are--
| (1) to make the act of smuggling bulk cash itself a
criminal offense; (2) to authorize forfeiture of any cash or instruments of the
smuggling offense; and
(3) to emphasize the seriousness of the act of bulk cash smuggling. |
(c) ENACTMENT OF BULK CASH SMUGGLING OFFENSE-
Subchapter II of chapter 53 of title 31, United States Code, is amended by adding at the
end the following:
`Sec. 5332. 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 section 5316, knowingly conceals more than $10,000 in
currency or other monetary instruments on the person 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 outside 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 offense and subject to punishment pursuant to subsection (b). `(2)
CONCEALMENT ON PERSON- For purposes 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 convicted of a
currency smuggling offense under subsection (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 governed by section 413 of the Controlled Substances Act.
`(4) PERSONAL MONEY JUDGMENT- If the property subject to forfeiture under paragraph (2)
is unavailable, and the defendant has insufficient substitute property that may be
forfeited pursuant to section 413(p) of the Controlled Substances Act, the court shall
enter a personal money judgment against the defendant for the amount that would be subject
to forfeiture. |
`(c) CIVIL FORFEITURE-
| `(1) IN GENERAL- Any property involved in a violation
of subsection (a), or a conspiracy to commit such violation, and any property traceable to
such violation or conspiracy, may be seized and, subject to subsection (d) of this
section, forfeited to the United States. `(2) PROCEDURE- The seizure and forfeiture
shall be governed by the procedures governing civil forfeitures in money laundering cases
pursuant to section 981(a)(1)(A) of title 18, United States Code.
`(3) TREATMENT OF CERTAIN PROPERTY AS INVOLVED IN THE OFFENSE- For purposes of this
subsection and subsection (b), any currency or other monetary instrument that is concealed
or intended to be concealed in violation of subsection (a) or a conspiracy to commit such
violation, any article, container, or conveyance used, or intended to be used, to conceal
or transport the currency or other monetary instrument, and any other property used, or
intended to be used, to facilitate the offense, shall be considered property involved in
the offense.'. |
(c) 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 5331, as added by this Act, the following new item:
| `5332. Bulk cash smuggling into or out of the United
States.'. |
SEC. 372. FORFEITURE IN CURRENCY
REPORTING CASES.
| (a) IN GENERAL-
Subsection (c) of section 5317 of title 31, United States Code, is amended to read as
follows: `(c) FORFEITURE-
| `(1) CRIMINAL FORFEITURE-
| `(A) IN GENERAL- The court in imposing sentence for
any violation of section 5313, 5316, or 5324 of this title, 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. `(B) PROCEDURE- Forfeitures
under this paragraph shall be governed by the procedures established in section 413 of the
Controlled Substances Act. |
|
`(2) CIVIL FORFEITURE- Any property involved in a
violation of section 5313, 5316, or 5324 of this title, or any conspiracy to commit any
such violation, and any property traceable to any such violation or conspiracy, may be
seized and 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.'. |
(b) CONFORMING AMENDMENTS-
| (1) Section 981(a)(1)(A) of title 18, United States
Code, is amended--
| (A) by striking `of section 5313(a) or 5324(a) of
title 31, or'; and (B) by striking `However' and all that follows through the end of
the subparagraph. |
|
(2) Section 982(a)(1) of title 18, United States
Code, is amended--
| (A) by striking `of section 5313(a), 5316, or 5324 of
title 31, or'; and (B) by striking `However' and all that follows through the end of
the paragraph. |
SEC. 373. ILLEGAL MONEY TRANSMITTING
BUSINESSES.
| (a) SCIENTER
REQUIREMENT FOR SECTION 1960 VIOLATION- Section 1960 of title 18, United States Code, is
amended to read as follows: |
`Sec. 1960. Prohibition of unlicensed
money transmitting businesses
| `(a) Whoever knowingly
conducts, controls, manages, supervises, directs, or owns all or part of an unlicensed
money transmitting business, shall be fined in accordance with this title or imprisoned
not more than 5 years, or both. `(b) As used in
this section--
| `(1) the term `unlicensed money transmitting business'
means a money transmitting business which affects interstate or foreign commerce in any
manner or degree and--
| `(A) is operated without an appropriate money
transmitting license in a State where such operation is punishable as a misdemeanor or a
felony under State law, whether or not the defendant knew that the operation was required
to be licensed or that the operation was so punishable; `(B) fails to comply with the
money transmitting business registration requirements under section 5330 of title 31,
United States Code, or regulations prescribed under such section; or
`(C) otherwise involves the transportation or transmission of funds that are known to
the defendant to have been derived from a criminal offense or are intended to be used to
be used to promote or support unlawful activity; |
|
`(2) the term `money transmitting' includes
transferring funds on behalf of the public by any and all means including but not limited
to transfers within this country or to locations abroad by wire, check, draft, facsimile,
or courier; and
`(3) 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) 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'.
(c) CLERICAL AMENDMENT- The table of sections for
chapter 95 of title 18, United States Code, is amended in the item relating to section
1960 by striking `illegal' and inserting `unlicensed'.
SEC. 374. COUNTERFEITING DOMESTIC
CURRENCY AND OBLIGATIONS.
| (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, digital,
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 inserting `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 SECURITIES-
Section 472 of title 18, United States Code, is amended by striking `fifteen years' and
inserting `20 years'.
(d) DEALING IN COUNTERFEIT OBLIGATIONS OR SECURITIES-
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 OBLIGATIONS OR SECURITIES-
| (1) IN GENERAL- Section 474(a) of title 18, United
States Code, is amended by | |
