108TH CONGRESS
REPT. 108-724
HOUSE OF REPRESENTATIVES 2d Session
Part 3
9/11 RECOMMENDATIONS IMPLEMENTATION ACT
OCTOBER 4, 2004- Ordered to be printed Mr. OXLEY, from the Committee on Financial Services, submitted the following R E P O R T together with DISSENTING VIEWS [To accompany H.R. 10] The Committee on Financial Services, to whom was referred the bill (H.R. 10) to provide for reform of the intelligence community, terrorism prevention and prosecution, border security, and international cooperation and coordination, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass.
CONTENTS Page Amendment 1 Purpose and Summary 49 Background and Need for Legislation 50 Hearings 52 Committee Consideration 52 Committee Votes 52 Committee Oversight Findings 56 Performance Goals and Objectives 56 New Budget Authority, Entitlement Authority, and Tax Expenditures 56 Committee and Congressional Budget Act Cost Estimates 56 Federal Mandates Statement 56 Advisory Committee Statement 57 Constitutional Authority Statement 57 Applicability to Legislative Branch 57 Section-by-Section Analysis of the Legislation 57 Changes in Existing Law Made by the Bill, as Reported 87 Dissenting Views 89 AMENDMENT
The amendment is as follows:
Strike all after the enacting clause and insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the `9/11 Recommendations Implementation Act'.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY Sec. 1001. Short title. Subtitle A--Establishment of National Intelligence Director Sec. 1011. Reorganization and improvement of management of intelligence community. Sec. 1012. Revised definition of national intelligence. Sec. 1013. Joint procedures for operational coordination between Department of Defense and Central Intelligence Agency. Sec. 1014. Role of National Intelligence Director in appointment of certain officials responsible for intelligence-related activities. Sec. 1015. Initial appointment of the National Intelligence Director. Sec. 1016. Executive schedule matters. Subtitle B--National Counterterrorism Center and Civil Liberties Protections Sec. 1021. National Counterterrorism Center. Sec. 1022. Civil Liberties Protection Officer. Subtitle C--Joint Intelligence Community Council Sec. 1031. Joint Intelligence Community Council. Subtitle D--Improvement of Human Intelligence (HUMINT) Sec. 1041. Human intelligence as an increasingly critical component of the intelligence community. Sec. 1042. Improvement of human intelligence capacity. Subtitle E--Improvement of Education for the Intelligence Community Sec. 1051. Modification of obligated service requirements under National Security Education Program. Sec. 1052. Improvements to the National Flagship Language Initiative. Sec. 1053. Establishment of scholarship program for English language studies for heritage community citizens of the United States within the National Security Education Program. Sec. 1054. Sense of Congress with respect to language and education for the intelligence community; reports. Sec. 1055. Advancement of foreign languages critical to the intelligence community. Sec. 1056. Pilot project for Civilian Linguist Reserve Corps. Sec. 1057. Codification of establishment of the National Virtual Translation Center. Sec. 1058. Report on recruitment and retention of qualified instructors of the Defense Language Institute. Subtitle F--Additional Improvements of Intelligence Activities Sec. 1061. Permanent extension of Central Intelligence Agency Voluntary Separation Incentive Program. Sec. 1062. National Security Agency Emerging Technologies Panel. Subtitle G--Conforming and Other Amendments Sec. 1071. Conforming amendments relating to roles of National Intelligence Director and Director of the Central Intelligence Agency. Sec. 1072. Other conforming amendments Sec. 1073. Elements of intelligence community under National Security Act of 1947. Sec. 1074. Redesignation of National Foreign Intelligence Program as National Intelligence Program. Sec. 1075. Repeal of superseded authorities. Sec. 1076. Clerical amendments to National Security Act of 1947. Sec. 1077. Conforming amendments relating to prohibiting dual service of the Director of the Central Intelligence Agency. Sec. 1078. Access to Inspector General protections. Sec. 1079. General references. Sec. 1080. Application of other laws. Subtitle H--Transfer, Termination, Transition and Other Provisions Sec. 1091. Transfer of community management staff. Sec. 1092. Transfer of terrorist threat integration center. Sec. 1093. Termination of positions of Assistant Directors of Central Intelligence. Sec. 1094. Implementation plan. Sec. 1095. Transitional authorities. Sec. 1096. Effective dates. Subtitle I--Grand Jury Information Sharing Sec. 1101. Grand jury information sharing. Subtitle J--Other Matters Sec. 1111. Interoperable law enforcement and intelligence data system. Sec. 1112. Improvement of intelligence capabilities of the Federal Bureau of Investigation. TITLE II--TERRORISM PREVENTION AND PROSECUTION Subtitle A--Individual Terrorists as Agents of Foreign Powers Sec. 2001. Individual terrorists as agents of foreign powers. Subtitle B--Stop Terrorist and Military Hoaxes Act of 2004 Sec. 2021. Short title. Sec. 2022. Hoaxes and recovery costs. Sec. 2023. Obstruction of justice and false statements in terrorism cases. Sec. 2024. Clarification of definition. Subtitle C--Material Support to Terrorism Prohibition Enhancement Act of 2004 Sec. 2041. Short title. Sec. 2042. Receiving military-type training from a foreign terrorist organization. Sec. 2043. Providing material support to terrorism. Sec. 2044. Financing of terrorism. Subtitle D--Weapons of Mass Destruction Prohibition Improvement Act of 2004 Sec. 2051. Short title. Sec. 2052. Weapons of mass destruction. Sec. 2053. Participation in nuclear and weapons of mass destruction threats to the United States. Subtitle E--Money Laundering and Terrorist Financing Chapter 1--Funding to Combat Financial Crimes Including Terrorist Financing Sec. 2101. Additional authorization for FinCEN. Sec. 2102. Money laundering and financial crimes strategy reauthorization. Chapter 2--Enforcement Tools to Combat Financial Crimes Including Terrorist Financing Subchapter A--Money laundering abatement and financial antiterrorism technical corrections Sec. 2111. Short title. Sec. 2112. Technical corrections to Public Law 107-56. Sec. 2113. Technical corrections to other provisions of law. Sec. 2114. Repeal of review. Sec. 2115. Effective date. Subchapter B--Additional enforcement tools Sec. 2121. Bureau of Engraving and Printing security printing. Sec. 2122. Conduct in aid of counterfeiting. Sec. 2123. Reporting of cross-border transmittal of funds. Sec. 2124. Enhanced effectiveness of examinations, including anti-money laundering programs. Subchapter C--Unlawful Internet Gambling Funding Prohibition Sec. 2131. Short title. Sec. 2132. Findings. Sec. 2133. Policies and procedures required to prevent payments for unlawful internet gambling. Sec. 2134. Definitions. Sec. 2135. Common sense rule of construction. Subtitle F--Criminal History Background Checks Sec. 2141. Short title. Sec. 2142. Criminal history information checks. Subtitle G--Protection of United States Aviation System from Terrorist Attacks Sec. 2171. Provision for the use of biometric or other technology. Sec. 2172. Transportation security strategic planning. Sec. 2173. Next generation airline passenger prescreening. Sec. 2174. Deployment and use of explosive detection equipment at airport screening checkpoints. Sec. 2175. Pilot program to evaluate use of blast-resistant cargo and baggage containers. Sec. 2176. Air cargo screening technology. Sec. 2177. Airport checkpoint screening explosive detection. Sec. 2178. Next generation security checkpoint. Sec. 2179. Penalty for failure to secure cockpit door. Sec. 2180. Federal air marshal anonymity. Sec. 2181. Federal law enforcement in-flight counterterrorism training. Sec. 2182. Federal flight deck officer weapon carriage pilot program. Sec. 2183. Registered traveler program. Sec. 2184. Wireless communication. Sec. 2185. Secondary flight deck barriers. Sec. 2186. Extension. Sec. 2187. Perimeter Security. Sec. 2188. Definitions. Subtitle H--Other Matters Sec. 2191. Grand jury information sharing. Sec. 2192. Interoperable law enforcement and intelligence data system. Sec. 2193. Improvement of intelligence capabilities of the Federal Bureau of Investigation. TITLE III--BORDER SECURITY AND TERRORIST TRAVEL Subtitle A--Immigration Reform in the National Interest Chapter 1--General Provisions Sec. 3001. Eliminating the `Western Hemisphere' exception for citizens. Sec. 3002. Modification of waiver authority with respect to documentation requirements for nationals of foreign contiguous territories and adjacent islands. Sec. 3003. Increase in full-time border patrol agents. Sec. 3004. Increase in full-time immigration and customs enforcement investigators. Sec. 3005. Alien identification standards. Sec. 3006. Expedited removal. Sec. 3007. Preventing terrorists from obtaining asylum. Sec. 3008. Revocation of visas and other travel documentation. Sec. 3009. Judicial review of orders of removal. Chapter 2--Deportation of Terrorists and Supporters of Terrorism Sec. 3031. Expanded inapplicability of restriction on removal. Sec. 3032. Exception to restriction on removal for terrorists and criminals. Sec. 3033. Additional removal authorities. Subtitle B--Identity Management Security Chapter 1--Improved Security for Drivers' Licenses and Personal Identification Cards Sec. 3051. Definitions. Sec. 3052. Minimum document requirements and issuance standards for Federal recognition. Sec. 3053. Linking of databases. Sec. 3054. Trafficking in authentication features for use in false identification documents. Sec. 3055. Grants to States. Sec. 3056. Authority. Chapter 2--Improved Security for Birth Certificates Sec. 3061. Definitions. Sec. 3062. Applicability of minimum standards to local governments. Sec. 3063. Minimum standards for Federal recognition. Sec. 3064. Establishment of electronic birth and death registration systems. Sec. 3065. Electronic verification of vital events. Sec. 3066. Grants to States. Sec. 3067. Authority. Chapter 3--Measures To Enhance Privacy and Integrity of Social Security Account Numbers Sec. 3071. Prohibition of the display of social security account numbers on driver's licenses or motor vehicle registrations. Sec. 3072. Independent verification of birth records provided in support of applications for social security account numbers. Sec. 3073. Enumeration at birth. Sec. 3074. Study relating to use of photographic identification in connection with applications for benefits, social security account numbers, and social security cards. Sec. 3075. Restrictions on issuance of multiple replacement social security cards. Sec. 3076. Study relating to modification of the social security account numbering system to show work authorization status. Subtitle C--Targeting Terrorist Travel Sec. 3081. Studies on machine-readable passports and travel history database. Sec. 3082. Expanded preinspection at foreign airports. Sec. 3083. Immigration security initiative. Sec. 3084. Responsibilities and functions of consular officers. Sec. 3085. Increase in penalties for fraud and related activity. Sec. 3086. Criminal penalty for false claim to citizenship. Sec. 3087. Antiterrorism assistance training of the Department of State. Sec. 3088. International agreements to track and curtail terrorist travel through the use of fraudulently obtained documents. Sec. 3089. International standards for translation of names into the Roman alphabet for international travel documents and name-based watchlist systems. Sec. 3090. Biometric entry and exit data system. Sec. 3091. Enhanced responsibilities of the Coordinator for Counterterrorism. Sec. 3092. Establishment of Office of Visa and Passport Security in the Department of State. Subtitle D--Terrorist Travel Sec. 3101. Information sharing and coordination. Sec. 3102. Terrorist travel program. Sec. 3103. Training program. Sec. 3104. Technology acquisition and dissemination plan. Subtitle E--Maritime Security Requirements Sec. 3111. Deadlines for implementation of maritime security requirements. TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION Subtitle A--Attack Terrorists and Their Organizations Chapter 1--Provisions Relating to Terrorist Sanctuaries Sec. 4001. United States policy on terrorist sanctuaries. Sec. 4002. Reports on terrorist sanctuaries. Sec. 4003. Amendments to existing law to include terrorist sanctuaries. Chapter 2--Other Provisions Sec. 4011. Appointments to fill vacancies in Arms Control and Nonproliferation Advisory Board. Sec. 4012. Review of United States policy on proliferation of weapons of mass destruction and control of strategic weapons. Sec. 4013. International agreements to interdict acts of international terrorism. Sec. 4014. Effective Coalition approach toward detention and humane treatment of captured terrorists. Sec. 4015. Sense of Congress and report regarding counter-drug efforts in Afghanistan. Subtitle B--Prevent the Continued Growth of Terrorism Chapter 1--United States Public Diplomacy Sec. 4021. Annual review and assessment of public diplomacy strategy. Sec. 4022. Public diplomacy training. Sec. 4023. Promoting direct exchanges with Muslim countries. Sec. 4024. Public diplomacy required for promotion in Foreign Service. Chapter 2--United States Multilateral Diplomacy Sec. 4031. Purpose. Sec. 4032. Support and expansion of democracy caucus. Sec. 4033. Leadership and membership of international organizations. Sec. 4034. Increased training in multilateral diplomacy. Sec. 4035. Implementation and establishment of Office on Multilateral Negotiations. Chapter 3--Other Provisions Sec. 4041. Pilot program to provide grants to American-sponsored schools in predominantly Muslim countries to provide scholarships. Sec. 4042. Enhancing free and independent media. Sec. 4043. Combating biased or false foreign media coverage of the United States. Sec. 4044. Report on broadcast outreach strategy. Sec. 4045. Office relocation. Sec. 4046. Strengthening the Community of Democracies for Muslim countries. Subtitle C--Reform of Designation of Foreign Terrorist Organizations Sec. 4051. Designation of foreign terrorist organizations. Sec. 4052. Inclusion in annual Department of State country reports on terrorism of information on terrorist groups that seek weapons of mass destruction and groups that have been designated as foreign terrorist organizations. Subtitle D--Afghanistan Freedom Support Act Amendments of 2004 Sec. 4061. Short title. Sec. 4062. Coordination of assistance for Afghanistan. Sec. 4063. General provisions relating to the Afghanistan Freedom Support Act of 2002. Sec. 4064. Rule of law and related issues. Sec. 4065. Monitoring of assistance. Sec. 4066. United States policy to support disarmament of private militias and to support expansion of international peacekeeping and security operations in Afghanistan. Sec. 4067. Efforts to expand international peacekeeping and security operations in Afghanistan. Sec. 4068. Provisions relating to counternarcotics efforts in Afghanistan. Sec. 4069. Additional amendments to the Afghanistan Freedom Support Act of 2002. Sec. 4070. Repeal. Subtitle E--Provisions Relating to Saudi Arabia and Pakistan Sec. 4081. New United States strategy for relationship with Saudi Arabia. Sec. 4082. United States commitment to the future of Pakistan. Sec. 4083. Extension of Pakistan waivers. Subtitle F--Oversight Provisions Sec. 4091. Case-Zablocki Act requirements. Subtitle G--Additional Protections of United States Aviation System from Terrorist Attacks Sec. 4101. International agreements to allow maximum deployment of Federal flight deck officers. Sec. 4102. Federal air marshal training. Sec. 4103. Man-portable air defense systems (MANPADS). Subtitle H--Improving International Standards and Cooperation to Fight Terrorist Financing Sec. 4111. Sense of the Congress regarding success in multilateral organizations. Sec. 4112. Expanded reporting and testimony requirements for the Secretary of the Treasury. Sec. 4113. Coordination of United States Government efforts. Sec. 4114. Definitions. TITLE V--GOVERNMENT RESTRUCTURING Subtitle A--Faster and Smarter Funding for First Responders Sec. 5001. Short title. Sec. 5002. Findings. Sec. 5003. Faster and smarter funding for first responders. Sec. 5004. Modification of homeland security advisory system. Sec. 5005. Coordination of industry efforts. Sec. 5006. Superseded provision. Sec. 5007. Sense of Congress regarding interoperable communications. Sec. 5008. Sense of Congress regarding citizen corps councils. Sec. 5009. Study regarding nationwide emergency notification system. Sec. 5010. Required coordination. Subtitle B--Government Reorganization Authority Sec. 5021. Authorization of intelligence community reorganization plans. Subtitle C--Restructuring Relating to the Department of Homeland Security and Congressional Oversight Sec. 5025. Responsibilities of Counternarcotics Office. Sec. 5026. Use of counternarcotics enforcement activities in certain employee performance appraisals. Sec. 5027. Sense of the House of Representatives on addressing homeland security for the American people. Subtitle D--Improvements to Information Security Sec. 5031. Amendments to Clinger-Cohen provisions to enhance agency planning for information security needs. Subtitle E--Personnel Management Improvements Chapter 1--Appointments Process Reform Sec. 5041. Appointments to national security positions. Sec. 5042. Presidential inaugural transitions. Sec. 5043. Public financial disclosure for the intelligence community. Sec. 5044. Reduction of positions requiring appointment with Senate confirmation. Sec. 5045. Effective dates. Chapter 2--Federal Bureau of Investigation Revitalization Sec. 5051. Mandatory separation age. Sec. 5052. Retention and relocation bonuses. Sec. 5053. Federal Bureau of Investigation Reserve Service. Sec. 5054. Critical positions in the Federal Bureau of Investigation intelligence directorate. Chapter 3--Management Authority Sec. 5061. Management authority. Subtitle F--Security Clearance Modernization Sec. 5071. Definitions. Sec. 5072. Security clearance and investigative programs oversight and administration. Sec. 5073. Reciprocity of security clearance and access determinations. Sec. 5074. Establishment of national database . Sec. 5075. Use of available technology in clearance investigations. Sec. 5076. Reduction in length of personnel security clearance process. Sec. 5077. Security clearances for presidential transition. Sec. 5078. Reports. Subtitle G--Emergency Financial Preparedness Chapter 1--Emergency Preparedness for Fiscal Authorities Sec. 5081. Delegation authority of the Secretary of the Treasury. Sec. 5081A. Treasury support for financial services industry preparedness and response. Chapter 2--Market Preparedness Subchapter A--Netting of Financial Contracts Sec. 5082. Short title. Sec. 5082A. Treatment of certain agreements by conservators or receivers of insured depository institutions. Sec. 5082B. Authority of the FDIC and NCUAB with respect to failed and failing institutions. Sec. 5082C. Amendments relating to transfers of qualified financial contracts. Sec. 5082D. Amendments relating to disaffirmance or repudiation of qualified financial contracts. Sec. 5082E. Clarifying amendment relating to master agreements. Sec. 5082F. Federal Deposit Insurance Corporation Improvement Act of 1991. Sec. 5082G. Bankruptcy code amendments. Sec. 5082H. Recordkeeping requirements. Sec. 5082I. Exemptions from contemporaneous execution requirement. Sec. 5082J. Damage measure. Sec. 5082K. SIPC stay. Sec. 5082L. Applicability of other sections to chapter 9. Sec. 5082M. Effective date; application of amendments. Sec. 5082N. Savings clause. Subchapter B--Emergency Securities Response Sec. 5086. Short title. Sec. 5087. Extension of emergency order authority of the Securities and Exchange Commission. Sec. 5088. Parallel authority of the Secretary of the Treasury with respect to government securities. Sec. 5089. Joint report on implementation of financial system resilience recommendations. Sec. 5089A. Private sector preparedness. Sec. 5089B. Report on public/private partnerships. Subtitle H--Other Matters Chapter 1--Privacy Matters Sec. 5091. Requirement that agency rulemaking take into consideration impacts on individual privacy. Sec. 5092. Chief privacy officers for agencies with law enforcement or anti-terrorism functions. Chapter 2--Mutual Aid and Litigation Management Sec. 5101. Short title. Sec. 5102. Mutual aid authorized. Sec. 5103. Litigation management agreements. Sec. 5104. Additional provisions. Sec. 5105. Definitions. Chapter 3--Miscellaneous Matters Sec. 5131. Enhancement of public safety communications interoperability. Sec. 5132. Sense of Congress regarding the incident command system. Sec. 5133. Sense of Congress regarding United States Northern Command plans and strategies.
TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY [Struck out->]
[ Title I of the Amendment in the Nature of a Substitute consists of title I of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
TITLE II--TERRORISM PREVENTION AND PROSECUTION [Struck out->]
[ Subtitles A through D of title II of the Amendment in the Nature of a Substitute consist of subtitles A through D of title II of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
Subtitle E--Money Laundering and Terrorist Financing CHAPTER 1--FUNDING TO COMBAT FINANCIAL CRIMES INCLUDING TERRORIST FINANCING
SEC. 2101. ADDITIONAL AUTHORIZATION FOR FINCEN.
Subsection (d) of section 310 of title 31, United States Code, is amended----
(1) by striking `APPROPRIATIONS- There are authorized' and inserting `APPROPRIATIONS-
`(1) IN GENERAL- There are authorized'; and
(2) by adding at the end the following new paragraph:
`(2) AUTHORIZATION FOR FUNDING KEY TECHNOLOGICAL IMPROVEMENTS IN MISSION-CRITICAL FINCEN SYSTEMS- There are authorized to be appropriated for fiscal year 2005 the following amounts, which are authorized to remain available until expended:
`(A) BSA DIRECT- For technological improvements to provide authorized law enforcement and financial regulatory agencies with Web-based access to FinCEN data, to fully develop and implement the highly secure network required under section 362 of Public Law 107-56 to expedite the filing of, and reduce the filing costs for, financial institution reports, including suspicious activity reports, collected by FinCEN under chapter 53 and related provisions of law, and enable FinCEN to immediately alert financial institutions about suspicious activities that warrant immediate and enhanced scrutiny, and to provide and upgrade advanced information-sharing technologies to materially improve the Government's ability to exploit the information in the FinCEN databanks, $16,500,000.
`(B) ADVANCED ANALYTICAL TECHNOLOGIES- To provide advanced analytical tools needed to ensure that the data collected by FinCEN under chapter 53 and related provisions of law are utilized fully and appropriately in safeguarding financial institutions and supporting the war on terrorism, $5,000,000.
`(C) DATA NETWORKING MODERNIZATION- To improve the telecommunications infrastructure to support the improved capabilities of the FinCEN systems, $3,000,000.
`(D) ENHANCED COMPLIANCE CAPABILITY- To improve the effectiveness of the Office of Compliance in FinCEN, $3,000,000.
`(E) DETECTION AND PREVENTION OF FINANCIAL CRIMES AND TERRORISM- To provide development of, and training in the use of, technology to detect and prevent financial crimes and terrorism within and without the United States, $8,000,000.'.
SEC. 2102. MONEY LAUNDERING AND FINANCIAL CRIMES STRATEGY REAUTHORIZATION.
(a) PROGRAM- Section 5341(a)(2) of title 31, United States Code, is amended by striking `and 2003,' and inserting `2003, and 2005,'.
(b) REAUTHORIZATION OF APPROPRIATIONS- Section 5355 of title 31, United States Code, is amended by adding at the end the following:
`2004 $15,000,000. `2005 $15,000,000.'. CHAPTER 2--ENFORCEMENT TOOLS TO COMBAT FINANCIAL CRIMES INCLUDING TERRORIST FINANCING
SUBCHAPTER A--MONEY LAUNDERING ABATEMENT AND FINANCIAL ANTITERRORISM TECHNICAL CORRECTIONS
SEC. 2111. SHORT TITLE.
This subchapter may be cited as the `Money Laundering Abatement and Financial Antiterrorism Technical Corrections Act of 2004'.
SEC. 2112. TECHNICAL CORRECTIONS TO PUBLIC LAW 107-56.
(a) The heading of title III of Public Law 107-56 is amended to read as follows:
`TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND FINANCIAL ANTITERRORISM ACT OF 2001'. (b) The table of contents of Public Law 107-56 is amended by striking the item relating to title III and inserting the following new item:
`TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND FINANCIAL ANTITERRORISM ACT OF 2001'. (c) Section 302 of Public Law 107-56 is amended--
(1) in subsection (a)(4), by striking the comma after `movement of criminal funds';
(2) in subsection (b)(7), by inserting `or types of accounts' after `classes of international transactions'; and
(3) in subsection (b)(10), by striking `subchapters II and III' and inserting `subchapter II'.
(d) Section 303(a) of Public Law 107-56 is amended by striking `Anti-Terrorist Financing Act' and inserting `Financial Antiterrorism Act'.
(e) The heading for section 311 of Public Law 107-56 is amended by striking `or international transactions' and inserting `international transactions, or types of accounts'.
(f) Section 314 of Public Law 107-56 is amended--
(1) in paragraph (1)--
(A) by inserting a comma after `organizations engaged in'; and
(B) by inserting a comma after `credible evidence of engaging in';
(2) in paragraph (2)(A)--
(A) by striking `and' after `nongovernmental organizations,'; and
(B) by inserting a comma after `unwittingly involved in such finances';
(3) in paragraph (3)(A)--
(A) by striking `to monitor accounts of' and inserting `monitor accounts of,'; and
(B) by striking the comma after `organizations identified'; and
(4) in paragraph (3)(B), by inserting `financial' after `size, and nature of the'.
(g) Section 321 of Public Law 107-56 is amended by striking `5312(2)' and inserting `5312(a)(2)'.
(h) Section 325 of Public Law 107-56 is amended by striking `as amended by section 202 of this title,' and inserting `as amended by section 352,'.
(i) Subsections (a)(2) and (b)(2) of section 327 of Public Law 107-56 are each amended by inserting a period after `December 31, 2001' and striking all that follows through the period at the end of each such subsection.
(j) Section 356(c)(4) of Public Law 107-56 is amended by striking `or business or other grantor trust' and inserting `, business trust, or other grantor trust'.
(k) Section 358(e) of Public Law 107-56 is amended--
(1) by striking `Section 123(a)' and inserting `That portion of section 123(a)';
(2) by striking `is amended to read' and inserting `that precedes paragraph (1) of such section is amended to read'; and
(3) by striking `.'.' at the end of such section and inserting `--'.
(l) Section 360 of Public Law 107-56 is amended--
(1) in subsection (a), by inserting `the' after `utilization of the funds of'; and
(2) in subsection (b), by striking `at such institutions' and inserting `at such institution'.
(m) Section 362(a)(1) of Public Law 107-56 is amended by striking `subchapter II or III' and inserting `subchapter II'.
(n) Section 365 of Public Law 107-56 is amended--
(1) by redesignating the 2nd of the 2 subsections designated as subsection (c) (relating to a clerical amendment) as subsection (d); and
(2) by redesignating subsection (f) as subsection (e).
(o) Section 365(d) of Public Law 107-56 (as so redesignated by subsection (n) of this section) is amended by striking `section 5332 (as added by section 112 of this title)' and inserting `section 5330'.
SEC. 2113. TECHNICAL CORRECTIONS TO OTHER PROVISIONS OF LAW.
(a) Section 310(c) of title 31, United States Code, is amended by striking `the Network' each place such term appears and inserting `FinCEN'.
(b) Section 5312(a)(3)(C) of title 31, United States Code, is amended by striking `sections 5333 and 5316' and inserting `sections 5316 and 5331'.
(c) Section 5318(i) of title 31, United States Code, is amended--
(1) in paragraph (3)(B), by inserting a comma after `foreign political figure' the 2nd place such term appears; and
(2) in the heading of paragraph (4), by striking `DEFINITION' and inserting `DEFINITIONS'.
(d) Section 5318(k)(1)(B) of title 31, United States Code, is amended by striking `section 5318A(f)(1)(B)' and inserting `section 5318A(e)(1)(B)'.
(e) The heading for section 5318A of title 31, United States Code, is amended to read as follows:
`Sec. 5318A. Special measures for jurisdictions, financial institutions, international transactions, or types of accounts of primary money laundering concern'.
(f) Section 5318A of title 31, United States Code, is amended--
(1) in subsection (a)(4)(A), by striking `, as defined in section 3 of the Federal Deposit Insurance Act,' and inserting ` (as defined in section 3 of the Federal Deposit Insurance Act)';
(2) in subsection (a)(4)(B)(iii), by striking `or class of transactions' and inserting `class of transactions, or type of account';
(3) in subsection (b)(1)(A), by striking `or class of transactions to be' and inserting `class of transactions, or type of account to be'; and
(4) in subsection (e)(3), by inserting `or subsection (i) or (j) of section 5318' after `identification of individuals under this section'.
(g) Section 5324(b) of title 31, United States Code, is amended by striking `5333' each place such term appears and inserting `5331'.
(h) Section 5332 of title 31, United States Code, is amended--
(1) in subsection (b)(2), by striking `, subject to subsection (d) of this section'; and
(2) in subsection (c)(1), by striking `, subject to subsection (d) of this section,'.
(i) The table of sections for subchapter II of chapter 53 of title 31, United States Code, is amended by striking the item relating to section 5318A and inserting the following new item:
`5318A. Special measures for jurisdictions, financial institutions, international transactions, or types of accounts of primary money laundering concern.'. (j) Section 18(w)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1828(w)(3)) is amended by inserting a comma after `agent of such institution'.
(k) Section 21(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1829b(a)(2)) is amended by striking `recognizes that' and inserting `recognizing that'.
(l) Section 626(e) of the Fair Credit Reporting Act (15 U.S.C. 1681v(e)) is amended by striking `governmental agency' and inserting `government agency'.
SEC. 2114. REPEAL OF REVIEW.
Title III of Public Law 107-56 is amended by striking section 303 (31 U.S.C. 5311 note).
SEC. 2115. EFFECTIVE DATE.
The amendments made by this subchapter to Public Law 107-56, the United States Code, the Federal Deposit Insurance Act, and any other provision of law shall take effect as if such amendments had been included in Public Law 107-56, as of the date of the enactment of such Public Law, and no amendment made by such Public Law that is inconsistent with an amendment made by this subchapter shall be deemed to have taken effect.
SUBCHAPTER B--ADDITIONAL ENFORCEMENT TOOLS
SEC. 2121. BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING.
(a) PRODUCTION OF DOCUMENTS- Section 5114(a) of title 31, United States Code (relating to engraving and printing currency and security documents), is amended--
(1) by striking `(a) The Secretary of the Treasury' and inserting:
`(a) AUTHORITY TO ENGRAVE AND PRINT-
`(1) IN GENERAL- The Secretary of the Treasury'; and
(2) by adding at the end the following new paragraphs:
`(2) ENGRAVING AND PRINTING FOR OTHER GOVERNMENTS- The Secretary of the Treasury may produce currency, postage stamps, and other security documents for foreign governments if--
`(A) the Secretary of the Treasury determines that such production will not interfere with engraving and printing needs of the United States; and
`(B) the Secretary of State determines that such production would be consistent with the foreign policy of the United States.
`(3) PROCUREMENT GUIDELINES- Articles, material, and supplies procured for use in the production of currency, postage stamps, and other security documents for foreign governments pursuant to paragraph (2) shall be treated in the same manner as articles, material, and supplies procured for public use within the United States for purposes of title III of the Act of March 3, 1933 (41 U.S.C. 10a et seq.; commonly referred to as the Buy American Act).'.
(b) REIMBURSEMENT- Section 5143 of title 31, United States Code (relating to payment for services of the Bureau of Engraving and Printing), is amended--
(1) in the first sentence, by inserting `or to a foreign government under section 5114' after `agency';
(2) in the second sentence, by inserting `and other' after `including administrative'; and
(3) in the last sentence, by inserting `, and the Secretary shall take such action, in coordination with the Secretary of State, as may be appropriate to ensure prompt payment by a foreign government of any invoice or statement of account submitted by the Secretary with respect to services rendered under section 5114' before the period at the end.
SEC. 2122. CONDUCT IN AID OF COUNTERFEITING.
(a) IN GENERAL- Section 474(a) of title 18, United States Code, is amended by inserting after the paragraph beginning `Whoever has in his control, custody, or possession any plate' the following:
` Whoever, with intent to defraud, has in his custody, control, or possession any material that can be used to make, alter, forge or counterfeit any obligations and other securities of the United States or any part of such securities and obligations, except under the authority of the Secretary of the Treasury; or'.
(b) FOREIGN OBLIGATIONS AND SECURITIES- Section 481 of title 18, United States Code, is amended by inserting after the paragraph beginning `Whoever, with intent to defraud' the following:
` Whoever, with intent to defraud, has in his custody, control, or possession any material that can be used to make, alter, forge or counterfeit any obligation or other security of any foreign government, bank or corporation; or'.
(c) COUNTERFEIT ACTS- Section 470 of title 18, United States Code, is amended by striking `or 474' and inserting `474, or 474A'.
(d) MATERIALS USED IN COUNTERFEITING- Section 474A(b) of title 18, United States Code, is amended by striking `any essentially identical' and inserting `any thing or material made after or in the similitude of any'.
SEC. 2123. REPORTING OF CROSS-BORDER TRANSMITTAL OF FUNDS.
Section 5318 of title 31, United States Code, is amended by adding at the end the following new subsection:
`(n) Reporting of Cross-Border Transmittal of Funds-
`(1) IN GENERAL- Subject to paragraph (3), the Secretary shall prescribe regulations requiring such financial institutions as the Secretary determines to be appropriate to report to the Financial Crimes Enforcement Network certain cross-border electronic transmittals of funds relevant to efforts of the Secretary against money laundering and terrorist financing.
`(2) FORM AND MANNER OF REPORTS- In prescribing the regulations required under paragraph (1), the Secretary shall determine the appropriate form, manner, content and frequency of filing of the required reports.
`(3) FEASIBILITY REPORT- Before prescribing the regulations required under paragraph (1), and as soon as is practicable after the date of enactment of the 9/11 Recommendations Implementation Act, the Secretary shall delegate to the Bank Secrecy Act Advisory Group established by the Secretary the task of producing a report for the Secretary and the Congress that--
`(A) identifies the information in cross-border electronic transmittals of funds that is relevant to efforts against money laundering and terrorist financing;
`(B) makes recommendations regarding the appropriate form, manner, content and frequency of filing of the required reports; and
`(C) identifies the technology necessary for the Financial Crimes Enforcement Network to receive, keep, exploit and disseminate information from reports of cross-border electronic transmittals of funds to law enforcement and other entities engaged in efforts against money laundering and terrorist financing.
The report shall be submitted to the Secretary and the Congress no later than the end of the 1-year period beginning on the date of enactment of such Act.
`(4) REGULATIONS-
`(A) IN GENERAL- Subject to subparagraph (B), the regulations required by paragraph (1) shall be prescribed in final form by the Secretary, in consultation with the Board of Governors of the Federal Reserve System, before the end of the 3-year period beginning on the date of the enactment of the 9/11 Recommendations Implementation Act.
`(B) TECHNOLOGICAL FEASIBILITY- No regulations shall be prescribed under this subsection before the Secretary certifies to the Congress that the Financial Crimes Enforcement Network has the technological systems in place to effectively and efficiently receive, keep, exploit, and disseminate information from reports of cross-border electronic transmittals of funds to law enforcement and other entities engaged in efforts against money laundering and terrorist financing.
`(5) RECORDKEEPING- No financial institution required to submit reports on certain cross-border electronic transmittals of funds to the Financial Crimes Enforcement Network under this subsection shall be subject to the recordkeeping requirement under section 21(b)(3) of the Federal Deposit Insurance Act with respect to such transmittals of funds.'.
SEC. 2124. ENHANCED EFFECTIVENESS OF EXAMINATIONS, INCLUDING ANTI-MONEY LAUNDERING PROGRAMS.
(a) DEPOSITORY INSTITUTIONS AND DEPOSITORY INSTITUTION HOLDING COMPANIES- Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820) is amended by adding at the end the following new subsection:
`(k) POST-EMPLOYMENT LIMITATIONS ON LEADING BANK EXAMINERS-
`(1) IN GENERAL- In the case of any person who--
`(A) was an officer or employee (including any special Government employee) of a Federal banking agency or a Federal reserve bank; and
`(B) served 2 or more months during the final 18 months of such person's employment with such agency or entity as the examiner-in-charge (or a functionally equivalent position) of a depository institution or depository institution holding company with dedicated, overall, continuous, and ongoing responsibility for the examination (or inspection) and supervision of that depository institution or depository institution holding company,
such person may not hold any office, position, or employment at any such depository institution or depository institution holding company, become a controlling shareholder in, a consultant for, a joint-venture partner with, or an independent contractor for (including as attorney, appraiser, or accountant) any such depository institution or holding company, or any other company that controls such depository institution, or otherwise participate in the conduct of the affairs of any such depository institution or holding company, during the 1-year period beginning on such date.
`(2) VIOLATORS SUBJECT TO INDUSTRY-WIDE PROHIBITION ORDERS-
`(A) IN GENERAL- In addition to any other penalty which may apply, whenever the appropriate Federal banking agency determines that a person subject to paragraph (1) has violated the prohibition in such paragraph with respect to any insured depository institution or depository institution holding company or any other company, the agency shall serve a written notice or order, in accordance with and subject to the provisions of section 8(e)(4) for written notices under paragraphs (1) or (2) of section 8(e), upon such person of the agency's intention to--
`(i) remove such person from office in any capacity described in paragraph (1); and
`(ii) prohibit any further participation by such person, in any manner, in the conduct of the affairs of any insured depository institution or depository institution holding company for a period of 5 years.
`(B) SCOPE OF PROHIBITION ORDER- Any person subject to an order issued under this subsection shall be subject to paragraphs (6) and (7) of section 8(e) in the same manner and to the same extent as a person subject to an order issued under such section and subsections (i) and (j) of section 8 and any other provision of this Act applicable to orders issued under subsection (e) or (g) shall apply with respect to such order.
`(3) REGULATIONS-
`(A) IN GENERAL- The Federal banking agencies shall prescribe regulations to implement this subsection, including the manner for determining which persons are referred to in paragraph 1(B) taking into account--
`(i) the manner in which examiners and other persons who participate in the regulation, examination, or monitoring of depository institutions or depository institution holding companies are distributed among such institutions or companies by such agency, including the number of examiners and other persons assigned to each institution or holding company, the depth and structure of any group so assigned within such distribution, and the factors giving rise to that distribution;
`(ii) the number of institutions or companies each such examiner or other person is so involved with in any given period of assignment;
`(iii) the period of time for which each such examiner or other person is assigned to an institution or company, or a group of institutions or companies, before reassignment;
`(iv) the size of the institutions or holding companies for which each such person is responsible and the amount of time devoted to each such institution or holding company during each examination period; and
`(v) such other factors as the agency determines to be appropriate.
`(B) DETERMINATION OF APPLICABILITY- The regulations prescribed or orders issued under this subparagraph by an appropriate Federal banking agency shall include a process, initiated by application or otherwise, for determining whether any person who ceases to be, or intends to cease to be, an examiner of, or a person having supervisory authority over, insured depository institutions or depository institution holding companies for or on behalf of such agency is subject to the limitations of this subsection with respect to any particular insured depository institution or depository institution holding company.
`(C) CONSULTATION- The Federal banking agencies shall consult with each other for the purpose of assuring that the rules and regulations issued by the agencies under subparagraph (A) are, to the extent possible, consistent, comparable, and practicable, taking into account any differences in the supervisory programs utilized by the agencies for the supervision of depository institutions and depository institution holding companies.
`(4) WAIVER- A Federal banking agency may waive, on a case-by-case basis, the restrictions imposed by this subsection if--
`(A) the head of the agency certifies in writing that the grant of such waiver would be not inconsistent with the public interest; and
`(B) the waiver is provided in advance before the person becomes affiliated in any way with the depository institution or depository institution holding company.
`(5) DEFINITIONS AND RULES OF CONSTRUCTION- For purposes of this subsection, the following definitions and rules shall apply:
`(A) DEPOSITORY INSTITUTION- The term `depository institution' includes an uninsured branch or agency of a foreign bank if such branch or agency is located in any State.
`(B) DEPOSITORY INSTITUTION HOLDING COMPANY- The term `depository institution holding company' includes any foreign bank or company described in section 8(a) of the International Banking Act of 1978.
`(C) HEAD OF THE AGENCY- The term `the head of agency' means--
`(i) the Comptroller of the Currency, in the case of the Office of the Comptroller of the Currency;
`(ii) the Chairman of the Board of Governors of the Federal Reserve System, in the case of the Board of Governors of the Federal Reserve System;
`(iii) the Chairperson of the Board of Directors, in the case of the Federal Deposit Insurance Corporation; and
`(iv) the Director, in the case of the Office of Thrift Supervision.
`(D) RULE OF CONSTRUCTION FOR CONSULTANTS AND INDEPENDENT CONTRACTORS- A person shall be deemed to act as a consultant or independent contractor (including as an attorney, appraiser, or accountant) for a depository institution or a depository holding company only if such person directly works on matters for, or on behalf of, such depository institution or depository holding company.
`(E) APPROPRIATE AGENCY FOR CERTAIN OTHER COMPANIES- The term `appropriate Federal banking agency' means, with respect to a company that is not a depository institution or depository institution holding company, the Federal banking agency on whose behalf the person described in paragraph (1) performed the functions described in paragraph (3).'.
(b) Credit Unions- Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended by adding at the end the following new subsection:
`(w) Post-Employment Limitations on Examiners-
`(1) REGULATIONS REQUIRED- The Board shall consult with the Federal banking agencies and prescribe regulations imposing the same limitations on persons employed by or on behalf of the Board as leading examiners of, or functionally equivalent positions with respect to, credit unions as are applicable under section 10(k) of the Federal Deposit Insurance Act, taking into account all the requirements and factors described in paragraphs (3) and (4) of such section.
`(2) ENFORCEMENT- The Board shall issue orders under subsection (g) with respect to any person who violates any regulation prescribed pursuant to paragraph (1) to--
`(A) remove such person from office in any capacity with respect to a credit union; and
`(B) prohibit any further participation by such person, in any manner, in the conduct of the affairs of any credit union for a period of 5 years.
`(3) SCOPE OF PROHIBITION ORDER- Any person subject to an order issued under this subsection shall be subject to paragraphs (5) and (7) of subsection (g) in the same manner and to the same extent as a person subject to an order issued under such subsection and subsection (l) and any other provision of this Act applicable to orders issued under subsection (g) shall apply with respect to such order.'.
(c) Study of Examiner Hiring and Retention-
(1) STUDY REQUIRED- The Board of Directors of the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, and the National Credit Union Administration Board, acting through the Financial Institutions Examination Council, shall conduct a study of efforts and proposals for--
(A) retaining the services of experienced and highly qualified examiners and supervisors already employed by such agencies; and
(B) continuing to attract such examiners and supervisors on an-ongoing basis to the extent necessary to fulfill the agencies' obligations to maintain the safety and soundness of the Nation's depository institutions.
(2) REPORT- Before the end of the 1-year period beginning on the date of the enactment of this Act, the agencies conducting the study under paragraph (1) shall submit a report containing the findings and conclusions of such agencies with respect to such study, together with such recommendations for administrative or legislative changes as the agencies determine to be appropriate.
SUBCHAPTER C--UNLAWFUL INTERNET GAMBLING FUNDING PROHIBITION
SEC. 2131. SHORT TITLE.
This subchapter may be cited as the `Unlawful Internet Gambling Funding Prohibition Act'.
SEC. 2132. FINDINGS.
The Congress finds as follows:
(1) Internet gambling is primarily funded through personal use of bank instruments, including credit cards and wire transfers.
(2) The National Gambling Impact Study Commission in 1999 recommended the passage of legislation to prohibit wire transfers to Internet gambling sites or the banks which represent them.
(3) Internet gambling is a major cause of debt collection problems for insured depository institutions and the consumer credit industry.
(4) Internet gambling conducted through offshore jurisdictions has been identified by United States law enforcement officials as a significant money laundering vulnerability.
SEC. 2133. POLICIES AND PROCEDURES REQUIRED TO PREVENT PAYMENTS FOR UNLAWFUL INTERNET GAMBLING.
(a) REGULATIONS- Before the end of the 6-month period beginning on the date of the enactment of this subchapter, the Federal functional regulators shall prescribe regulations requiring any designated payment system to establish policies and procedures reasonably designed to identify and prevent restricted transactions in any of the following ways:
(1) The establishment of policies and procedures that--
(A) allow the payment system and any person involved in the payment system to identify restricted transactions by means of codes in authorization messages or by other means; and
(B) block restricted transactions identified as a result of the policies and procedures developed pursuant to subparagraph (A).
(2) The establishment of policies and procedures that prevent the acceptance of the products or services of the payment system in connection with a restricted transaction.
(b) REQUIREMENTS FOR POLICIES AND PROCEDURES- In prescribing regulations pursuant to subsection (a), the Federal functional regulators shall--
(1) identify types of policies and procedures, including nonexclusive examples, which would be deemed to be `reasonably designed to identify' and `reasonably designed to block' or to `prevent the acceptance of the products or services' with respect to each type of transaction, such as, should credit card transactions be so designated, identifying transactions by a code or codes in the authorization message and denying authorization of a credit card transaction in response to an authorization message;
(2) to the extent practical, permit any participant in a payment system to choose among alternative means of identifying and blocking, or otherwise preventing the acceptance of the products or services of the payment system or participant in connection with, restricted transactions; and
(3) consider exempting restricted transactions from any requirement under subsection (a) if the Federal functional regulators find that it is not reasonably practical to identify and block, or otherwise prevent, such transactions.
(c) COMPLIANCE WITH PAYMENT SYSTEM POLICIES AND PROCEDURES- A creditor, credit card issuer, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, or money transmitting service, or a participant in such network, meets the requirement of subsection (a) if--
(1) such person relies on and complies with the policies and procedures of a designated payment system of which it is a member or participant to--
(A) identify and block restricted transactions; or
(B) otherwise prevent the acceptance of the products or services of the payment system, member, or participant in connection with restricted transactions; and
(2) such policies and procedures of the designated payment system comply with the requirements of regulations prescribed under subsection (a).
(d) ENFORCEMENT-
(1) IN GENERAL- This section shall be enforced by the Federal functional regulators and the Federal Trade Commission under applicable law in the manner provided in section 505(a) of the Gramm-Leach-Bliley Act.
(2) FACTORS TO BE CONSIDERED- In considering any enforcement action under this subsection against any payment system, or any participant in a payment system that is a creditor, credit card issuer, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, or money transmitting service, or a participant in such network, the Federal functional regulators and the Federal Trade Commission shall consider the following factors:
(A) The extent to which such person is extending credit or transmitting funds knowing the transaction is in connection with unlawful Internet gambling.
(B) The history of such person in extending credit or transmitting funds knowing the transaction is in connection with unlawful Internet gambling.
(C) The extent to which such person has established and is maintaining policies and procedures in compliance with regulations prescribed under this subsection.
(D) The feasibility that any specific remedy prescribed can be implemented by such person without substantial deviation from normal business practice.
(E) The costs and burdens the specific remedy will have on such person.
SEC. 2134. DEFINITIONS.
For purposes of this subchapter, the following definitions shall apply:
(1) RESTRICTED TRANSACTION- The term `restricted transaction' means any transaction or transmittal to any person engaged in the business of betting or wagering, in connection with the participation of another person in unlawful Internet gambling, of--
(A) credit, or the proceeds of credit, extended to or on behalf of such other person (including credit extended through the use of a credit card);
(B) an electronic fund transfer or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of the other person;
(C) any check, draft, or similar instrument which is drawn by or on behalf of the other person and is drawn on or payable at or through any financial institution; or
(D) the proceeds of any other form of financial transaction as the Federal functional regulators may prescribe by regulation which involves a financial institution as a payor or financial intermediary on behalf of or for the benefit of the other person.
(2) BETS OR WAGERS- The term `bets or wagers'--
(A) means the staking or risking by any person of something of value upon the outcome of a contest of others, a sporting event, or a game subject to chance, upon an agreement or understanding that the person or another person will receive something of greater value than the amount staked or risked in the event of a certain outcome;
(B) includes the purchase of a chance or opportunity to win a lottery or other prize (which opportunity to win is predominantly subject to chance);
(C) includes any scheme of a type described in section 3702 of title 28, United States Code;
(D) includes any instructions or information pertaining to the establishment or movement of funds in an account by the bettor or customer with the business of betting or wagering; and
(E) does not include--
(i) any activity governed by the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) for the purchase or sale of securities (as that term is defined in section 3(a)(10) of such Act);
(ii) any transaction conducted on or subject to the rules of a registered entity or exempt board of trade pursuant to the Commodity Exchange Act;
(iii) any over-the-counter derivative instrument;
(iv) any other transaction that--
(I) is excluded or exempt from regulation under the Commodity Exchange Act; or
(II) is exempt from State gaming or bucket shop laws under section 12(e) of the Commodity Exchange Act or section 28(a) of the Securities Exchange Act of 1934;
(v) any contract of indemnity or guarantee;
(vi) any contract for insurance;
(vii) any deposit or other transaction with a depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act);
(viii) any participation in a simulation sports game or an educational game or contest that--
(I) is not dependent solely on the outcome of any single sporting event or nonparticipant's singular individual performance in any single sporting event;
(II) has an outcome that reflects the relative knowledge and skill of the participants with such outcome determined predominantly by accumulated statistical results of sporting events; and
(III) offers a prize or award to a participant that is established in advance of the game or contest and is not determined by the number of participants or the amount of any fees paid by those participants; and
(ix) any lawful transaction with a business licensed or authorized by a State, and for purposes of this clause, the term `lawful transaction' means any transaction that is lawful under all applicable Federal laws and all applicable State laws of both the State in which the licensed or authorized business is located and the State where the bet is initiated.
(3) DESIGNATED PAYMENT SYSTEM DEFINED- The term `designated payment system' means any system utilized by any creditor, credit card issuer, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, or money transmitting service, or any participant in such network, that the Federal functional regulators determine, by regulation or order, could be utilized in connection with, or to facilitate, any restricted transaction.
(4) FEDERAL FUNCTIONAL REGULATOR- The term `Federal functional regulator' has the same meaning as in section 509(2) of the Gramm-Leach-Bliley Act.
(5) INTERNET- The term `Internet' means the international computer network of interoperable packet switched data networks.
(6) UNLAWFUL INTERNET GAMBLING- The term `unlawful Internet gambling' means to place, receive, or otherwise transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State in which the bet or wager is initiated, received, or otherwise made.
(7) OTHER TERMS-
(A) CREDIT; CREDITOR; AND CREDIT CARD- The terms `credit', `creditor', and `credit card' have the meanings given such terms in section 103 of the Truth in Lending Act.
(B) ELECTRONIC FUND TRANSFER- The term `electronic fund transfer'--
(i) has the meaning given such term in section 903 of the Electronic Fund Transfer Act; and
(ii) includes any fund transfer covered by Article 4A of the Uniform Commercial Code, as in effect in any State.
(C) FINANCIAL INSTITUTION- The term `financial institution'--
(i) has the meaning given such term in section 903 of the Electronic Fund Transfer Act; and
(ii) includes any financial institution, as defined in section 509(3) of the Gramm-Leach-Bliley Act.
(D) MONEY TRANSMITTING BUSINESS AND MONEY TRANSMITTING SERVICE- The terms `money transmitting business' and `money transmitting service' have the meanings given such terms in section 5330(d) of title 31, United States Code.
SEC. 2135. COMMON SENSE RULE OF CONSTRUCTION.
No provision of this subchapter shall be construed as altering, limiting, extending, changing the status of, or otherwise affecting any law relating to, affecting, or regulating gambling within the United States.
Subtitle F--Criminal History Background Checks [Struck out->]
[ Subtitles F through H of title II of the Amendment in the Nature of a Substitute consist of subtitles F through H of title II of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
TITLE III--BORDER SECURITY AND TERRORIST TRAVEL [Struck out->]
[ Title III of the Amendment in the Nature of a Substitute consists of title III of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION [Struck out->]
[ Subtitle A of title IV of the Amendment in the Nature of a Substitute consists of subtitle A of title IV of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
Subtitle B--Prevent the Continued Growth of Terrorism CHAPTER 1--UNITED STATES PUBLIC DIPLOMACY
[Struck out->]
[ Chapter 1 of title IV of the Amendment in the Nature of a Substitute consists of chapter 1 of title IV of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]CHAPTER 2--UNITED STATES MULTILATERAL DIPLOMACY
[Struck out->]
[ Sections 4031 and 4032 of chapter 2 of subtitle B of title IV of the Amendment in the Nature of a Substitute consist of sections 4031 and 4032 of chapter 2 of subtitle B of title IV of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]SEC. 4033. LEADERSHIP AND MEMBERSHIP OF INTERNATIONAL ORGANIZATIONS.
(a) United States Policy- The President, acting through the Secretary of State, the relevant United States chiefs of mission, and, where appropriate, the Secretary of the Treasury, shall use the voice, vote, and influence of the United States to--
(1) where appropriate, reform the criteria for leadership and, in appropriate cases, for membership, at all United Nations bodies and at other international organizations and multilateral institutions to which the United States is a member so as to exclude countries that violate the principles of the specific organization;
(2) make it a policy of the United Nations and other international organizations and multilateral institutions of which the United States is a member that a member country may not stand in nomination for membership or in nomination or in rotation for a leadership position in such bodies if the member country is subject to sanctions imposed by the United Nations Security Council; and
(3) work to ensure that no member country stand in nomination for membership, or in nomination or in rotation for a leadership position in such organizations, or for membership on the United Nations Security Council, if the member country is subject to a determination under section 6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)), section 620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), or section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)).
(b) Report to Congress- Not later than 15 days after a country subject to a determination under one or more of the provisions of law specified in subsection (a)(3) is selected for membership or a leadership post in an international organization of which the United States is a member or for membership on the United Nations Security Council, the Secretary of State shall submit to the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate a report on any steps taken pursuant to subsection (a)(3).
SEC. 4034. INCREASED TRAINING IN MULTILATERAL DIPLOMACY.
[Struck out->]
[ Section 4034 of title IV of the Amendment in the Nature of a Substitute consists of section 4034 of title IV of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]SEC. 4035. IMPLEMENTATION AND ESTABLISHMENT OF OFFICE ON MULTILATERAL NEGOTIATIONS.
(a) Establishment of Office- The Secretary of State is authorized to establish, within the Bureau of International Organizational Affairs, an Office on Multilateral Negotiations to be headed by a Special Representative for Multilateral Negotiations (in this section referred to as the `Special Representative').
(b) Appointment- The Special Representative shall be appointed by the President and shall have the rank of Ambassador-at-Large. At the discretion of the President another official at the Department may serve as the Special Representative.
(c) Staffing- The Special Representative shall have a staff of Foreign Service and civil service officers skilled in multilateral diplomacy.
(d) Duties- The Special Representative shall have the following responsibilities:
(1) IN GENERAL- The primary responsibility of the Special Representative shall be to assist in the organization of, and preparation for, United States participation in multilateral negotiations, including advocacy efforts undertaken by the Department of State and other United States Government agencies.
(2) CONSULTATIONS- The Special Representative shall consult with Congress, international organizations, nongovernmental organizations, and the private sector on matters affecting multilateral negotiations.
(3) ADVISORY ROLE- The Special Representative shall advise the Assistant Secretary for International Organizational Affairs and, as appropriate, the Secretary of State, regarding advocacy at international organizations, multilateral institutions, and negotiations, and shall make recommendations regarding--
(A) effective strategies (and tactics) to achieve United States policy objectives at multilateral negotiations;
(B) the need for and timing of high level intervention by the President, the Secretary of State, the Deputy Secretary of State, and other United States officials to secure support from key foreign government officials for United States positions at such organizations, institutions, and negotiations; and
(C) the composition of United States delegations to multilateral negotiations.
(4) ANNUAL DIPLOMATIC MISSIONS OF MULTILATERAL ISSUES- The Special Representative, in coordination with the Assistant Secretary for International Organizational Affairs, shall organize annual diplomatic missions to appropriate foreign countries to conduct consultations between principal officers responsible for advising the Secretary of State on international organizations and high-level representatives of the governments of such foreign countries to promote the United States agenda at the United Nations General Assembly and other key international fora (such as the United Nations Human Rights Commission).
(5) LEADERSHIP AND MEMBERSHIP OF INTERNATIONAL ORGANIZATIONS- The Special Representative, in coordination with the Assistant Secretary of International Organizational Affairs, shall direct the efforts of the United States to reform the criteria for leadership of and membership in international organizations as described in section 4033.
(6) PARTICIPATION IN MULTILATERAL NEGOTIATIONS- The Secretary of State may direct the Special Representative to serve as a member of a United States delegation to any multilateral negotiation.
(7) COORDINATION WITH THE DEPARTMENT OF THE TREASURY-
(A) COORDINATION AND CONSULTATION- The Special Representative shall coordinate and consult with the relevant staff at the Department of the Treasury in order to prepare recommendations for the Secretary of State regarding multilateral negotiations involving international financial institutions and other multilateral financial policymaking bodies.
(B) NEGOTIATING AUTHORITY CLARIFIED- Notwithstanding any other provision of law, the Secretary of the Treasury shall remain the lead representative and lead negotiator for the United States within the international financial institutions and other multilateral financial policymaking bodies.
(C) DEFINITIONS- In this paragraph:
(i) INTERNATIONAL FINANCIAL INSTITUTIONS- The term `international financial institutions' has the meaning given in section 1701(c)(2) of the International Financial Institutions Act.
(ii) OTHER MULTILATERAL FINANCIAL POLICYMAKING BODIES- The term `other multilateral financial policymaking bodies' means--
(I) the Financial Action Task Force at the Organization for Economic Cooperation and Development;
(II) the international network of financial intelligence units known as the `Egmont Group';
(III) the United States, Canada, the United Kingdom, France, Germany, Italy, Japan, and Russia, when meeting as the Group of Eight; and
(IV) any other multilateral financial policymaking group in which the Secretary of the Treasury represents the United States.
(iii) FINANCIAL ACTION TASK FORCE- The term `Financial Action Task Force' means the international grouping of countries that meets periodically to address issues related to money laundering, terrorist financing, and other financial crimes.
CHAPTER 3--OTHER PROVISIONS
[Struck out->]
[ Chapter 3 of subtitle B of title IV of the Amendment in the Nature of a Substitute consists of chapter 3 of subtitles B of title IV of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
Subtitle C--Reform of Designation of Foreign Terrorist Organizations [Struck out->]
[ Subtitle C of title IV of the Amendment in the Nature of a Substitute consists of subtitle C of title IV of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
Subtitle D--Afghanistan Freedom Support Act Amendments of 2004 SEC. 4061. SHORT TITLE.
This subtitle may be cited as the `Afghanistan Freedom Support Act Amendments of 2004'.
SEC. 4062. COORDINATION OF ASSISTANCE FOR AFGHANISTAN.
(a) Findings- Congress finds that--
(1) the Final Report of the National Commission on Terrorist Attacks Upon the United States criticized the provision of United States assistance to Afghanistan for being too inflexible; and
(2) the Afghanistan Freedom Support Act of 2002 (Public Law 107-327; 22 U.S.C. 7501 et seq.) contains provisions that provide for flexibility in the provision of assistance for Afghanistan and are not subject to the requirements of typical foreign assistance programs and provide for the designation of a coordinator to oversee United States assistance for Afghanistan.
(b) Designation of Coordinator- Section 104(a) of the Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7514(a)) is amended in the matter preceding paragraph (1) by striking `is strongly urged to' and inserting `shall'.
(c) Other Matters- Section 104 of such Act (22 U.S.C. 7514) is amended by adding at the end the following:
`(c) Program Plan- The coordinator designated under subsection (a) shall annually submit to the Committees on International Relations and Appropriations of the House of Representatives and the Committees on Foreign Relations and Appropriations of the Senate the Administration's plan for assistance to Afghanistan together with a description of such assistance in prior years.
`(d) Coordination With International Community- The coordinator designated under subsection (a) shall work with the international community and the Government of Afghanistan to ensure that assistance to Afghanistan is implemented in a coherent, consistent, and efficient manner to prevent duplication and waste. The coordinator designated under subsection (a) shall work through the Secretary of the Treasury and the United States Executive Directors at the international financial institutions in order to effectuate these responsibilities within the international financial institutions. The term `international financial institution' has the meaning given in section 1701(c)(2) of the International Financial Institutions Act.'.
SEC. 4063. GENERAL PROVISIONS RELATING TO THE AFGHANISTAN FREEDOM SUPPORT ACT OF 2002.
[Struck out->]
[ Section 4063 and the remaining sections of subtitle D of title IV of the Amendment in the Nature of a Substitute consist of section 4063 and the remaining sections of subtitle D of title IV of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
Subtitle E--Provisions Relating to Saudi Arabia and Pakistan [Struck out->]
[ Subtitles E through G of title IV of the Amendment in the Nature of a Substitute consist of subtitles E through G of title IV of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
Subtitle H--Improving International Standards and Cooperation to Fight Terrorist Financing SEC. 4111. SENSE OF THE CONGRESS REGARDING SUCCESS IN MULTILATERAL ORGANIZATIONS.
(a) FINDINGS- The Congress finds as follows:
(1) The global war on terrorism and cutting off terrorist financing is a policy priority for the United States and its partners, working bilaterally and multilaterally through the United Nations (UN), the UN Security Council and its Committees, such as the 1267 and 1373 Committees, the Financial Action Task Force (FATF) and various international financial institutions, such as the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), and the regional multilateral development banks, and other multilateral fora.
(2) The Secretary of the Treasury has engaged the international financial community in the global fight against terrorist financing. Specifically, the Department of the Treasury helped redirect the focus of the Financial Action Task Force on the new threat posed by terrorist financing to the international financial system, resulting in the establishment of the FATF's Eight Special Recommendations on Terrorist Financing as the international standard on combating terrorist financing. The Secretary of the Treasury has engaged the Group of Seven and the Group of Twenty Finance Ministers to develop action plans to curb the financing of terror. In addition, other economic and regional fora, such as the Asia-Pacific Economic Cooperation (APEC) Forum, the Western Hemisphere Financial Ministers, have been used to marshal political will and actions in support of countering the financing of terrorism (CFT) standards.
(3) FATF's Forty Recommendations on Money Laundering and the Eight Special Recommendations on Terrorist Financing are the recognized global standards for fighting money laundering and terrorist financing. The FATF has engaged in an assessment process for jurisdictions based on their compliance with these standards.
(4) In March 2004, the IMF and IBRD Boards agreed to make permanent a pilot program of collaboration with the FATF to assess global compliance with the FATF Forty Recommendations on Money Laundering and the Eight Special Recommendations on Terrorist Financing. As a result, anti-money laundering (AML) and combating the financing of terrorism (CFT) assessments are now a regular part of their Financial Sector Assessment Progam (FSAP) and Offshore Financial Center assessments, which provide for a comprehensive analysis of the strength of a jurisdiction's financial system. These reviews assess potential systemic vulnerabilities, consider sectoral development needs and priorities, and review the state of implementation of and compliance with key financial codes and regulatory standards, among them the AML and CFT standards.
(5) To date, 70 FSAPs have been conducted, with over 24 of those incorporating AML and CFT assessments. The international financial institutions (IFIs), the FATF, and the FATF-style regional bodies together are expected to assess AML and CFT regimes in up to 40 countries or jurisdictions per year. This will help countries and jurisdictions identify deficiencies in their AML and CFT regimes and help focus technical assistance (TA) efforts.
(6) TA programs from the United States and other nations, coordinated with the Department of State and other departments and agencies, are playing an important role in helping countries and jurisdictions address shortcomings in their AML and CFT regimes and bringing their regimes into conformity with international standards. Training is coordinated within the United States Government, which leverages multilateral organizations and bodies and international financial institutions to internationalize the conveyance of technical assistance.
(7) In fulfilling its duties in advancing incorporation of AML and CFT standards into the IFIs as part of the IFIs' work on protecting the integrity of the international monetary system, the Department of the Treasury, under the guidance of the Secretary of the Treasury, has effectively brought together all of the key United States Government agencies. In particular, United States Government agencies continue to work together to foster broad support for this important undertaking in various multilateral fora, and United States Government agencies recognize the need for close coordination and communication within our own government.
(b) SENSE OF THE CONGRESS- It is the sense of the Congress that the Secretary of the Treasury should continue to promote the dissemination of international AML and CFT standards, and to press for full implementation of the FATF 40 + 8 Recommendations by all countries in order to curb financial risks and hinder terrorist financing around the globe.
SEC. 4112. EXPANDED REPORTING AND TESTIMONY REQUIREMENTS FOR THE SECRETARY OF THE TREASURY.
(a) REPORTING REQUIREMENTS- Section 1503(a) of the International Financial Institutions Act (22 U.S.C. 262o-2(a)) is amended by adding at the end the following new paragraph:
`(15) Work with the International Monetary Fund to--
`(A) foster strong global anti-money laundering (AML) and combat the financing of terrorism (CFT) regimes;
`(B) ensure that country performance under the Financial Action Task Force anti-money laundering and counter-terrorist financing standards is effectively and comprehensively monitored;
`(C) ensure note is taken of AML and CFT issues in Article IV reports, International Monetary Fund programs, and other regular reviews of country progress;
`(D) ensure that effective AML and CFT regimes are considered to be indispensable elements of sound financial systems; and
`(E) emphasize the importance of sound AML and CFT regimes to global growth and development.'.
(b) TESTIMONY- Section 1705(b) of such Act (22 U.S.C. 262r-4(b)) is amended--
(1) by striking `and' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and inserting `; and' and
(3) by adding at the end the following:
`(4) the status of implementation of international anti-money laundering and counter-terrorist financing standards by the International Monetary Fund, the multilateral development banks, and other multilateral financial policymaking bodies.'.
SEC. 4113. COORDINATION OF UNITED STATES GOVERNMENT EFFORTS.
The Secretary of the Treasury, or the designee of the Secretary as the lead United States Government official to the Financial Action Task Force (FATF), shall continue to convene the interagency United States Government FATF working group. This group, which includes representatives from all relevant federal agencies, shall meet at least once a year to advise the Secretary on policies to be pursued by the United States regarding the development of common international AML and CFT standards, to assess the adequacy and implementation of such standards, and to recommend to the Secretary improved or new standards as necessary.
SEC. 4114. DEFINITIONS.
In this subtitle:
(1) INTERNATIONAL FINANCIAL INSTITUTIONS- The term `international financial institutions' has the meaning given in section 1701(c)(2) of the International Financial Institutions Act.
(2) FINANCIAL ACTION TASK FORCE- The term `Financial Action Task Force' means the international policy-making and standard-setting body dedicated to combating money laundering and terrorist financing that was created by the Group of Seven in 1989.
TITLE V--GOVERNMENT RESTRUCTURING [Struck out->]
[ Subtitles A through F of title V of the Amendment in the Nature of a Substitute consist of subtitles A through F of title V of the bill H.R. 10, as introduced on September 24, 2004 ][<-Struck out]
Subtitle G--Emergency Financial Preparedness CHAPTER 1--EMERGENCY PREPAREDNESS FOR FISCAL AUTHORITIES
SEC. 5081. DELEGATION AUTHORITY OF THE SECRETARY OF THE TREASURY.
Subsection (d) of section 306 of title 31, United States Code, is amended by inserting `or employee' after `another officer'.
SEC. 5081A. TREASURY SUPPORT FOR FINANCIAL SERVICES INDUSTRY PREPAREDNESS AND RESPONSE.
(a) Congressional Finding- The Congress finds that the Secretary of the Treasury--
(1) has successfully communicated and coordinated with the private-sector financial services industry about counter-terrorist financing activities and preparedness;
(2) has successfully reached out to State and local governments and regional public-private partnerships, such as ChicagoFIRST, that protect employees and critical infrastructure by enhancing communication and coordinating plans for disaster preparedness and business continuity; and
(3) has set an example for the Department of Homeland Security and other Federal agency partners, whose active participation is vital to the overall success of the activities described in paragraphs (1) and (2).
(b) Further Education and Preparation Efforts- It is the sense of Congress that the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and other Federal agency partners, should--
(1) furnish sufficient personnel and technological and financial resources to foster the formation of public-private sector coalitions, similar to ChicagoFIRST, that, in collaboration with the Department of Treasury, the Department of Homeland Security, and other Federal agency partners, would educate consumers and employees of the financial services industry about domestic counter-terrorist financing activities, including--
(A) how the public and private sector organizations involved in counter-terrorist financing activities can help to combat terrorism and simultaneously protect and preserve the lives and civil liberties of consumers and employees of the financial services industry; and
(B) how consumers and employees of the financial services industry can assist the public and private sector organizations involved in counter-terrorist financing activities; and
(2) submit annual reports to the Congress on Federal efforts, in conjunction with public-private sector coalitions, to educate consumers and employees of the financial services industry about domestic counter-terrorist financing activities.
CHAPTER 2--MARKET PREPAREDNESS
SUBCHAPTER A--NETTING OF FINANCIAL CONTRACTS
SEC. 5082. SHORT TITLE.
This subchapter may be cited as the `Financial Contracts Bankruptcy Reform Act of 2004'.
SEC. 5082A. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS OF INSURED DEPOSITORY INSTITUTIONS.
(a) DEFINITION OF QUALIFIED FINANCIAL CONTRACT-
(1) FDIC-INSURED DEPOSITORY INSTITUTIONS- Section 11(e)(8)(D) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)) is amended--
(A) by striking `subsection--' and inserting `subsection, the following definitions shall apply:'; and
(B) in clause (i), by inserting `, resolution, or order' after `any similar agreement that the Corporation determines by regulation'.
(2) INSURED CREDIT UNIONS- Section 207(c)(8)(D) of the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended--
(A) by striking `subsection--' and inserting `subsection, the following definitions shall apply:'; and
(B) in clause (i), by inserting `, resolution, or order' after `any similar agreement that the Board determines by regulation'.
(b) DEFINITION OF SECURITIES CONTRACT-
(1) FDIC-INSURED DEPOSITORY INSTITUTIONS- Section 11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(ii)) is amended to read as follows:
`(ii) SECURITIES CONTRACT- The term `securities contract'--
`(I) means a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, or any interest in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or any option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option, and including any repurchase or reverse repurchase transaction on any such security, certificate of deposit, mortgage loan, interest, group or index, or option;
`(II) does not include any purchase, sale, or repurchase obligation under a participation in a commercial mortgage loan unless the Corporation determines by regulation, resolution, or order to include any such agreement within the meaning of such term;
`(III) means any option entered into on a national securities exchange relating to foreign currencies;
`(IV) means the guarantee by or to any securities clearing agency of any settlement of cash, securities, certificates of deposit, mortgage loans or interests therein, group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option;
`(V) means any margin loan;
`(VI) means any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;
`(VII) means any combination of the agreements or transactions referred to in this clause;
`(VIII) means any option to enter into any agreement or transaction referred to in this clause;
`(IX) means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a securities contract under this clause, except that the master agreement shall be considered to be a securities contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), (IV), (V), (VI), (VII), or (VIII); and
`(X) means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.'.
(2) INSURED CREDIT UNIONS- Section 207(c)(8)(D)(ii) of the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(ii)) is amended to read as follows:
`(ii) SECURITIES CONTRACT- The term `securities contract'--
`(I) means a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, or any interest in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or any option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option, and including any repurchase or reverse repurchase transaction on any such security, certificate of deposit, mortgage loan, interest, group or index, or option;
`(II) does not include any purchase, sale, or repurchase obligation under a participation in a commercial mortgage loan unless the Board determines by regulation, resolution, or order to include any such agreement within the meaning of such term;
`(III) means any option entered into on a national securities exchange relating to foreign currencies;
`(IV) means the guarantee by or to any securities clearing agency of any settlement of cash, securities, certificates of deposit, mortgage loans or interests therein, group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option;
`(V) means any margin loan;
`(VI) means any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;
`(VII) means any combination of the agreements or transactions referred to in this clause;
`(VIII) means any option to enter into any agreement or transaction referred to in this clause;
`(IX) means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a securities contract under this clause, except that the master agreement shall be considered to be a securities contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), (IV), (V), (VI), (VII), or (VIII); and
`(X) means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.'.
(c) DEFINITION OF COMMODITY CONTRACT-
(1) FDIC-INSURED DEPOSITORY INSTITUTIONS- Section 11(e)(8)(D)(iii) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iii)) is amended to read as follows:
`(iii) COMMODITY CONTRACT- The term `commodity contract' means--
`(I) with respect to a futures commission merchant, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade;
`(II) with respect to a foreign futures commission merchant, a foreign future;
`(III) with respect to a leverage transaction merchant, a leverage transaction;
`(IV) with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization;
`(V) with respect to a commodity options dealer, a commodity option;
`(VI) any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;
`(VII) any combination of the agreements or transactions referred to in this clause;
`(VIII) any option to enter into any agreement or transaction referred to in this clause;
`(IX) a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a commodity contract under this clause, except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII); or
`(X) any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.'.
(2) INSURED CREDIT UNIONS- Section 207(c)(8)(D)(iii) of the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(iii)) is amended to read as follows:
`(iii) COMMODITY CONTRACT- The term `commodity contract' means--
`(I) with respect to a futures commission merchant, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade;
`(II) with respect to a foreign futures commission merchant, a foreign future;
`(III) with respect to a leverage transaction merchant, a leverage transaction;
`(IV) with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization;
`(V) with respect to a commodity options dealer, a commodity option;
`(VI) any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;
`(VII) any combination of the agreements or transactions referred to in this clause;
`(VIII) any option to enter into any agreement or transaction referred to in this clause;
`(IX) a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a commodity contract under this clause, except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII); or
`(X) any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.'.
(d) DEFINITION OF FORWARD CONTRACT-
(1) FDIC-INSURED DEPOSITORY INSTITUTIONS- Section 11(e)(8)(D)(iv) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iv)) is amended to read as follows:
`(iv) FORWARD CONTRACT- The term `forward contract' means--
`(I) a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or by-product thereof, with a maturity date more than 2 days after the date the contract is entered into, including, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any other similar agreement;
`(II) any combination of agreements or transactions referred to in subclauses (I) and (III);
`(III) any option to enter into any agreement or transaction referred to in subclause (I) or (II);
`(IV) a master agreement that provides for an agreement or transaction referred to in subclauses (I), (II), or (III), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a forward contract under this clause, except that the master agreement shall be considered to be a forward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), or (III); or
`(V) any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (II), (III), or (IV), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.'.
(2) INSURED CREDIT UNIONS- Section 207(c)(8)(D)(iv) of the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(iv)) is amended to read as follows:
`(iv) FORWARD CONTRACT- The term `forward contract' means--
`(I) a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or by-product thereof, with a maturity date more than 2 days after the date the contract is entered into, including, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any other similar agreement;
`(II) any combination of agreements or transactions referred to in subclauses (I) and (III);
`(III) any option to enter into any agreement or transaction referred to in subclause (I) or (II);
`(IV) a master agreement that provides for an agreement or transaction referred to in subclauses (I), (II), or (III), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a forward contract under this clause, except that the master agreement shall be considered to be a forward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), or (III); or
`(V) any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (II), (III), or (IV), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.'.
(e) DEFINITION OF REPURCHASE AGREEMENT-
(1) FDIC-INSURED DEPOSITORY INSTITUTIONS- Section 11(e)(8)(D)(v) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(v)) is amended to read as follows:
`(v) REPURCHASE AGREEMENT- The term `repurchase agreement' (which definition also applies to a reverse repurchase agreement)--
`(I) means an agreement, including related terms, which provides for the transfer of one or more certificates of deposit, mortgage-related securities (as such term is defined in the Securities Exchange Act of 1934), mortgage loans, interests in mortgage-related securities or mortgage loans, eligible bankers' acceptances, qualified foreign government securities or securities that are direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers' acceptances, securities, mortgage loans, or interests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers' acceptances, securities, mortgage loans, or interests as described above, at a date certain not later than 1 year after such transfers or on demand, against the transfer of funds, or any other similar agreement;
`(II) does not include any repurchase obligation under a participation in a commercial mortgage loan unless the Corporation determines by regulation, resolution, or order to include any such participation within the meaning of such term;
`(III) means any combination of agreements or transactions referred to in subclauses (I) and (IV);
`(IV) means any option to enter into any agreement or transaction referred to in subclause (I) or (III);
`(V) means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), or (IV), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a repurchase agreement under this clause, except that the master agreement shall be considered to be a repurchase agreement under this subclause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), or (IV); and
`(VI) means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.
For purposes of this clause, the term `qualified foreign government security' means a security that is a direct obligation of, or that is fully guaranteed by, the central government of a member of the Organization for Economic Cooperation and Development (as determined by regulation or order adopted by the appropriate Federal banking authority).'.
(2) INSURED CREDIT UNIONS- Section 207(c)(8)(D)(v) of the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(v)) is amended to read as follows:
`(v) REPURCHASE AGREEMENT- The term `repurchase agreement' (which definition also applies to a reverse repurchase agreement)--
`(I) means an agreement, including related terms, which provides for the transfer of one or more certificates of deposit, mortgage-related securities (as such term is defined in the Securities Exchange Act of 1934), mortgage loans, interests in mortgage-related securities or mortgage loans, eligible bankers' acceptances, qualified foreign government securities or securities that are direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers' acceptances, securities, mortgage loans, or interests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers' acceptances, securities, mortgage loans, or interests as described above, at a date certain not later than 1 year after such transfers or on demand, against the transfer of funds, or any other similar agreement;
`(II) does not include any repurchase obligation under a participation in a commercial mortgage loan unless the Board determines by regulation, resolution, or order to include any such participation within the meaning of such term;
`(III) means any combination of agreements or transactions referred to in subclauses (I) and (IV);
`(IV) means any option to enter into any agreement or transaction referred to in subclause (I) or (III);
`(V) means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), or (IV), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a repurchase agreement under this clause, except that the master agreement shall be considered to be a repurchase agreement under this subclause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), or (IV); and
`(VI) means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.
For purposes of this clause, the term `qualified foreign government security' means a security that is a direct obligation of, or that is fully guaranteed by, the central government of a member of the Organization for Economic Cooperation and Development (as determined by regulation or order adopted by the appropriate Federal banking authority).'.
(f) DEFINITION OF SWAP AGREEMENT-
(1) FDIC-INSURED DEPOSITORY INSTITUTIONS- Section 11(e)(8)(D)(vi) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(vi)) is amended to read as follows:
`(vi) SWAP AGREEMENT- The term `swap agreement' means--
`(I) any agreement, including the terms and conditions incorporated by reference in any such agreement, which is an interest rate swap, option, future, or forward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap; a spot, same day-tomorrow, tomorrow-next, forward, or other foreign exchange or precious metals agreement; a currency swap, option, future, or forward agreement; an equity index or equity swap, option, future, or forward agreement; a debt index or debt swap, option, future, or forward agreement; a total return, credit spread or credit swap, option, future, or forward agreement; a commodity index or commodity swap, option, future, or forward agreement; or a weather swap, weather derivative, or weather option;
`(II) any agreement or transaction that is similar to any other agreement or transaction referred to in this clause and that is of a type that has been, is presently, or in the future becomes, the subject of recurrent dealings in the swap markets (including terms and conditions incorporated by reference in such agreement) and that is a forward, swap, future, or option on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, quantitative measures associated with an occurrence, extent of an occurrence, or contingency associated with a financial, commercial, or economic consequence, or economic or financial indices o