Congressional Record: October 4, 2001 (Senate)
Page S10289-S10334
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DASCHLE (for himself, Mr. Lott, Mr. Leahy, Mr. Hatch, Mr.
Graham, Mr. Shelby, and Mr. Sarbanes):
S. 1510. A bill to deter and punish terrorist acts in the United
States and around the world, to enhance law enforcement investigatory
tools, and for other purposes; read the first time.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
S. 1510
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the "Uniting
and Strengthening America Act" or the "USA Act of 2001".
(b) Table of Contents.-- The table of contents for this Act
is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Construction; severability.
TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
Sec. 101. Counterterrorism fund.
Sec. 102. Sense of Congress condemning discrimination against Arab and
Muslim Americans.
Sec. 103. Increased funding for the technical support center at the
Federal Bureau of Investigation.
Sec. 104. Requests for military assistance to enforce prohibition in
certain emergencies.
Sec. 105. Expansion of national electronic crime task force initiative.
Sec. 106. Presidential authority.
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
Sec. 201. Authority to intercept wire, oral, and electronic
communications relating to terrorism.
Sec. 202. Authority to intercept wire, oral, and electronic
communications relating to computer fraud and abuse
offenses.
Sec. 203. Authority to share criminal investigative information.
Sec. 204. Clarification of intelligence exceptions from limitations on
interception and disclosure of wire, oral, and electronic
communications.
[[Page S10308]]
Sec. 205. Employment of translators by the Federal Bureau of
Investigation.
Sec. 206. Roving surveillance authority under the Foreign Intelligence
Surveillance Act of 1978.
Sec. 207. Duration of FISA surveillance of non-United States persons
who are agents of a foreign power.
Sec. 208. Designation of judges.
Sec. 209. Seizure of voice-mail messages pursuant to warrants.
Sec. 210. Scope of subpoenas for records of electronic communications.
Sec. 211. Clarification of scope.
Sec. 212. Emergency disclosure of electronic communications to protect
life and limb.
Sec. 213. Authority for delaying notice of the execution of a warrant.
Sec. 214. Pen register and trap and trace authority under FISA.
Sec. 215. Access to records and other items under the Foreign
Intelligence Surveillance Act.
Sec. 216. Modification of authorities relating to use of pen registers
and trap and trace devices.
Sec. 217. Interception of computer trespasser communications.
Sec. 218. Foreign intelligence information.
Sec. 219. Single-jurisdiction search warrants for terrorism.
Sec. 220. Nationwide service of search warrants for electronic
evidence.
Sec. 221. Trade sanctions.
Sec. 222. Assistance to law enforcement agencies.
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
Sec. 301. Short title.
Sec. 302. Findings and purposes.
Sec. 303. 4-Year congressional review-expedited consideration.
Subtitle A--International Counter Money Laundering and Related Measures
Sec. 311. Special measures for jurisdictions, financial institutions,
or international transactions of primary money laundering
concern.
Sec. 312. Special due diligence for correspondent accounts and private
banking accounts.
Sec. 313. Prohibition on United States correspondent accounts with
foreign shell banks.
Sec. 314. Cooperative efforts to deter money laundering.
Sec. 315. Inclusion of foreign corruption offenses as money laundering
crimes.
Sec. 316. Anti-terrorist forfeiture protection.
Sec. 317. Long-arm jurisdiction over foreign money launderers.
Sec. 318. Laundering money through a foreign bank.
Sec. 319. Forfeiture of funds in United States interbank accounts.
Sec. 320. Proceeds of foreign crimes.
Sec. 321. Exclusion of aliens involved in money laundering.
Sec. 322. Corporation represented by a fugitive.
Sec. 323. Enforcement of foreign judgments.
Sec. 324. Increase in civil and criminal penalties for money
laundering.
Sec. 325. Report and recommendation.
Sec. 326. Report on effectiveness.
Sec. 327. Concentration accounts at financial institutions.
Subtitle B--Currency Transaction Reporting Amendments and Related
Improvements
Sec. 331. Amendments relating to reporting of suspicious activities.
Sec. 332. Anti-money laundering programs.
Sec. 333. Penalties for violations of geographic targeting orders and
certain recordkeeping requirements, and lengthening
effective period of geographic targeting orders.
Sec. 334. Anti-money laundering strategy.
Sec. 335. Authorization to include suspicions of illegal activity in
written employment references.
Sec. 336. Bank Secrecy Act advisory group.
Sec. 337. Agency reports on reconciling penalty amounts.
Sec. 338. Reporting of suspicious activities by securities brokers and
dealers.
Sec. 339. Special report on administration of Bank Secrecy provisions.
Sec. 340. Bank Secrecy provisions and anti-terrorist activities of
United States intelligence agencies.
Sec. 341. Reporting of suspicious activities by hawala and other
underground banking systems.
Sec. 342. Use of Authority of the United States Executive Directors.
Subtitle D--Currency Crimes
Sec. 351. Bulk cash smuggling.
Subtitle E--Anticorruption Measures
Sec. 361. Corruption of foreign governments and ruling elites.
Sec. 362. Support for the financial action task force on money
laundering.
Sec. 363. Terrorist funding through money laundering.
TITLE IV--PROTECTING THE BORDER
Subtitle A--Protecting the Northern Border
Sec. 401. Ensuring adequate personnel on the northern border.
Sec. 402. Northern border personnel.
Sec. 403. Access by the Department of State and the INS to certain
identifying information in the criminal history records
of visa applicants and applicants for admission to the
United States.
Sec. 404. Limited authority to pay overtime.
Sec. 405. Report on the integrated automated fingerprint identification
system for points of entry and overseas consular posts.
Subtitle B--Enhanced Immigration Provisions
Sec. 411. Definitions relating to terrorism.
Sec. 412. Mandatory detention of suspected terrorists; habeas corpus;
judicial review.
Sec. 413. Multilateral cooperation against terrorists.
TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM
Sec. 501. Professional Standards for Government Attorneys Act of 2001.
Sec. 502. Attorney General's authority to pay rewards to combat
terrorism.
Sec. 503. Secretary of State's authority to pay rewards.
Sec. 504. DNA identification of terrorists and other violent offenders.
Sec. 505. Coordination with law enforcement.
Sec. 506. Miscellaneous national security authorities.
Sec. 507. Extension of Secret Service jurisdiction.
Sec. 508. Disclosure of educational records.
Sec. 509. Disclosure of information from NCES surveys.
TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS,
AND THEIR FAMILIES
Subtitle A--Aid to Families of Public Safety Officers
Sec. 611. Expedited payment for public safety officers involved in the
prevention, investigation, rescue, or recovery efforts
related to a terrorist attack.
Sec. 612. Technical correction with respect to expedited payments for
heroic public safety officers.
Sec. 613. Public Safety Officers Benefit Program payment increase.
Sec. 614. Office of justice programs.
Subtitle B--Amendments to the Victims of Crime Act of 1984
Sec. 621. Crime Victims Fund.
Sec. 622. Crime victim compensation.
Sec. 623. Crime victim assistance.
Sec. 624. Victims of terrorism.
TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE
PROTECTION
Sec. 711. Expansion of regional information sharing system to
facilitate Federal-State-local law enforcement response
related to terrorist attacks.
TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM
Sec. 801. Terrorist attacks and other acts of violence against mass
transportation systems.
Sec. 802. Expansion of the biological weapons statute.
Sec. 803. Definition of domestic terrorism.
Sec. 804. Prohibition against harboring terrorists.
Sec. 805. Jurisdiction over crimes committed at U.S. facilities abroad.
Sec. 806. Material support for terrorism.
Sec. 807. Assets of terrorist organizations.
Sec. 808. Technical clarification relating to provision of material
support to terrorism.
Sec. 809. Definition of Federal crime of terrorism.
Sec. 810. No statute of limitation for certain terrorism offenses.
Sec. 811. Alternate maximum penalties for terrorism offenses.
Sec. 812. Penalties for terrorist conspiracies.
Sec. 813. Post-release supervision of terrorists.
Sec. 814. Inclusion of acts of terrorism as racketeering activity.
Sec. 815. Deterrence and prevention of cyberterrorism.
Sec. 816. Additional defense to civil actions relating to preserving
records in response to government requests.
Sec. 817. Development and support of cybersecurity forensic
capabilities.
TITLE IX--IMPROVED INTELLIGENCE
Sec. 901. Responsibilities of Director of Central Intelligence
regarding foreign intelligence collected under Foreign
Intelligence Surveillance Act of 1978.
Sec. 902. Inclusion of international terrorist activities within scope
of foreign intelligence under National Security Act of
1947.
Sec. 903. Sense of Congress on the establishment and maintenance of
intelligence relationships to acquire information on
terrorists and terrorist organizations.
Sec. 904. Temporary authority to defer submittal to Congress of reports
on intelligence and intelligence-related matters.
[[Page S10309]]
Sec. 905. Disclosure to director of central intelligence of foreign
intelligence-related information with respect to criminal
investigations.
Sec. 906. Foreign terrorist asset tracking center.
Sec. 907. National virtual translation center.
Sec. 908. Training of government officials regarding identification and
use of foreign intelligence.
SEC. 2. CONSTRUCTION; SEVERABILITY.
Any provision of this Act held to be invalid or
unenforceable by its terms, or as applied to any person or
circumstance, shall be construed so as to give it the maximum
effect permitted by law, unless such holding shall be one of
utter invalidity or unenforceability, in which event such
provision shall be deemed severable from this Act and shall
not affect the remainder thereof or the application of such
provision to other persons not similarly situated or to
other, dissimilar circumstances.
TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
SEC. 101. COUNTERTERRORISM FUND.
(a) Establishment; Availability.--There is hereby
established in the Treasury of the United States a separate
fund to be known as the "Counterterrorism Fund", amounts in
which shall remain available without fiscal year limitation--
(1) to reimburse any Department of Justice component for
any costs incurred in connection with--
(A) reestablishing the operational capability of an office
or facility that has been damaged or destroyed as the result
of any domestic or international terrorism incident;
(B) providing support to counter, investigate, or prosecute
domestic or international terrorism, including, without
limitation, paying rewards in connection with these
activities; and
(C) conducting terrorism threat assessments of Federal
agencies and their facilities; and
(2) to reimburse any department or agency of the Federal
Government for any costs incurred in connection with
detaining in foreign countries individuals accused of acts of
terrorism that violate the laws of the United States.
(b) No Effect on Prior Appropriations.--Subsection (a)
shall not be construed to affect the amount or availability
of any appropriation to the Counterterrorism Fund made before
the date of enactment of this Act.
SEC. 102. SENSE OF CONGRESS CONDEMNING DISCRIMINATION AGAINST
ARAB AND MUSLIM AMERICANS.
(a) Findings.--Congress makes the following findings:
(1) Arab Americans, Muslim Americans, and Americans from
South Asia play a vital role in our Nation and are entitled
to nothing less than the full rights of every American.
(2) The acts of violence that have been taken against Arab
and Muslim Americans since the September 11, 2001, attacks
against the United States should be and are condemned by all
Americans who value freedom.
(3) The concept of individual responsibility for wrongdoing
is sacrosanct in American society, and applies equally to all
religious, racial, and ethnic groups.
(4) When American citizens commit acts of violence against
those who are, or are perceived to be, of Arab or Muslim
descent, they should be punished to the full extent of the
law.
(5) Muslim Americans have become so fearful of harassment
that many Muslim women are changing the way they dress to
avoid becoming targets.
(6) Many Arab Americans and Muslim Americans have acted
heroically during the attacks on the United States, including
Mohammed Salman Hamdani, a 23-year-old New Yorker of
Pakistani descent, who is believed to have gone to the World
Trade Center to offer rescue assistance and is now missing.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the civil rights and civil liberties of all Americans,
including Arab Americans, Muslim Americans, and Americans
from South Asia, must be protected, and that every effort
must be taken to preserve their safety;
(2) any acts of violence or discrimination against any
Americans be condemned; and
(3) the Nation is called upon to recognize the patriotism
of fellow citizens from all ethnic, racial, and religious
backgrounds.
SEC. 103. INCREASED FUNDING FOR THE TECHNICAL SUPPORT CENTER
AT THE FEDERAL BUREAU OF INVESTIGATION.
There are authorized to be appropriated for the Technical
Support Center established in section 811 of the
Antiterrorism and Effective Death Penalty Act of 1996 (Public
Law 104-132) to help meet the demands for activities to
combat terrorism and support and enhance the technical
support and tactical operations of the FBI, $200,000,000 for
each of the fiscal years 2002, 2003, and 2004.
SEC. 104. REQUESTS FOR MILITARY ASSISTANCE TO ENFORCE
PROHIBITION IN CERTAIN EMERGENCIES.
Section 2332e of title 18, United States Code, is amended--
(1) by striking "2332c" and inserting "2332a"; and
(2) by striking "chemical".
SEC. 105. EXPANSION OF NATIONAL ELECTRONIC CRIME TASK FORCE
INITIATIVE.
The Director of the United States Secret Service shall take
appropriate actions to develop a national network of
electronic crime task forces, based on the New York
Electronic Crimes Task Force model, throughout the United
States, for the purpose of preventing, detecting, and
investigating various forms of electronic crimes, including
potential terrorist attacks against critical infrastructure
and financial payment systems.
SEC. 106. PRESIDENTIAL AUTHORITY.
Section 203 of the International Emergency Powers Act (50
U.S.C. 1702) is amended--
(1) in subsection (a)(1)--
(A) at the end of subparagraph (A) (flush to that
subparagraph), by striking "; and" and inserting a comma
and the following:
"by any person, or with respect to any property, subject to
the jurisdiction of the United States;";
(B) in subparagraph (B)--
(i) by inserting ", block during the pendency of an
investigation" after "investigate"; and
(ii) by striking "interest;" and inserting "interest by
any person, or with respect to any property, subject to the
jurisdiction of the United States; and"; and
(C) by inserting at the end the following:
"(C) when the United States is engaged in armed
hostilities or has been attacked by a foreign country or
foreign nationals, confiscate any property, subject to the
jurisdiction of the United States, of any foreign person,
foreign organization, or foreign country that he determines
has planned, authorized, aided, or engaged in such
hostilities or attacks against the United States; and all
right, title, and interest in any property so confiscated
shall vest, when, as, and upon the terms directed by the
President, in such agency or person as the President may
designate from time to time, and upon such terms and
conditions as the President may prescribe, such interest or
property shall be held, used, administered, liquidated, sold,
or otherwise dealt with in the interest of and for the
benefit of the United States, and such designated agency or
person may perform any and all acts incident to the
accomplishment or furtherance of these purposes."; and
(2) by inserting at the end the following:
"(c) Classified Information.--In any judicial review of a
determination made under this section, if the determination
was based on classified information (as defined in section
1(a) of the Classified Information Procedures Act) such
information may be submitted to the reviewing court ex parte
and in camera. This subsection does not confer or imply any
right to judicial review.".
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
SEC. 201. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC
COMMUNICATIONS RELATING TO TERRORISM.
Section 2516(1) of title 18, United States Code, is
amended--
(1) by redesignating paragraph (p), as so redesignated by
section 434(2) of the Antiterrorism and Effective Death
Penalty Act of 1996 (Public Law 104-132; 110 Stat. 1274), as
paragraph (r); and
(2) by inserting after paragraph (p), as so redesignated by
section 201(3) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (division C of Public
Law 104-208; 110 Stat. 3009-565), the following new
paragraph:
"(q) any criminal violation of section 229 (relating to
chemical weapons); or sections 2332, 2332a, 2332b, 2332d,
2339A, or 2339B of this title (relating to terrorism); or".
SEC. 202. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC
COMMUNICATIONS RELATING TO COMPUTER FRAUD AND
ABUSE OFFENSES.
Section 2516(1)(c) of title 18, United States Code, is
amended by striking "and section 1341 (relating to mail
fraud)," and inserting "section 1341 (relating to mail
fraud), a felony violation of section 1030 (relating to
computer fraud and abuse),".
SEC. 203. AUTHORITY TO SHARE CRIMINAL INVESTIGATIVE
INFORMATION.
(a) Authority to Share Grand Jury Information.--
(1) In general.--Rule 6(e)(3)(C) of the Federal Rules of
Criminal Procedure is amended--
(A) in clause (iii), by striking "or" at the end;
(B) in clause (iv), by striking the period at the end and
inserting "; or"; and
(C) by inserting at the end the following:
"(v) when the matters involve foreign intelligence or
counterintelligence (as defined in section 3 of the National
Security Act of 1947 (50 U.S.C. 401a)), or foreign
intelligence information (as defined in Rule 6(e)(3)(C)(ii))
to any other Federal law enforcement, intelligence,
protective, immigration, national defense, or national
security official in order to assist the official receiving
that information in the performance of his official duties.
Any Federal official who receives information pursuant to
clause (v) may use that information only as necessary in the
conduct of that person's official duties subject to any
limitations on the unauthorized disclosure of such
information.".
(2) Definition.--Rule 6(e)(3)(C) of the Federal Rules of
Criminal Procedure, as amended by paragraph (1), is amended
by--
(A) inserting "(i)" after "(C)";
(B) redesignating clauses (i) through (v) as subclauses (I)
through (IV), respectively; and
(C) inserting at the end the following:
"(ii) In this subparagraph, the term `foreign intelligence
information' means--
"(I) information, whether or not concerning a United
States person, that relates
[[Page S10310]]
to the ability of the United States to protect against--
"(aa) actual or potential attack or other grave hostile
acts of a foreign power or an agent of a foreign power;
"(bb) sabotage or international terrorism by a foreign
power or an agent of a foreign power; or
"(cc) clandestine intelligence activities by an
intelligence service or network of a foreign power or by an
agent of a foreign power; or
"(II) information, whether or not concerning a United
States person, with respect to a foreign power or foreign
territory that relates to--
"(aa) the national defense or the security of the United
States; or
"(bb) the conduct of the foreign affairs of the United
States.".
(b) Authority To Share Electronic, Wire, and Oral
Interception Information.--
(1) Law enforcement.--Section 2517 of title 18, United
States Code, is amended by inserting at the end the
following:
"(6) Any investigative or law enforcement officer, or
attorney for the Government, who by any means authorized by
this chapter, has obtained knowledge of the contents of any
wire, oral, or electronic communication, or evidence derived
therefrom, may disclose such contents to any other Federal
law enforcement, intelligence, protective, immigration,
national defense, or national security official to the extent
that such contents include foreign intelligence or
counterintelligence (as defined in section 3 of the National
Security Act of 1947 (50 U.S.C. 401a)), or foreign
intelligence information (as defined in subsection (19) of
section 2510 of this title), to assist the official who is to
receive that information in the performance of his official
duties. Any Federal official who receives information
pursuant to this provision may use that information only as
necessary in the conduct of that person's official duties
subject to any limitations on the unauthorized disclosure of
such information.".
(2) Definition.--Section 2510 of title 18, United States
Code, is amended by--
(A) in paragraph (17), by striking "and" after the
semicolon;
(B) in paragraph (18), by striking the period and inserting
"; and"; and
(C) by inserting at the end the following:
"(19) `foreign intelligence information' means--
"(A) information, whether or not concerning a United
States person, that relates to the ability of the United
States to protect against--
"(i) actual or potential attack or other grave hostile
acts of a foreign power or an agent of a foreign power;
"(ii) sabotage or international terrorism by a foreign
power or an agent of a foreign power; or
"(iii) clandestine intelligence activities by an
intelligence service or network of a foreign power or by an
agent of a foreign power; or
"(B) information, whether or not concerning a United
States person, with respect to a foreign power or foreign
territory that relates to--
"(i) the national defense or the security of the United
States; or
"(ii) the conduct of the foreign affairs of the United
States.".
(c) Procedures.--The Attorney General shall establish
procedures for the disclosure of information pursuant to
section 2517(6) and Rule 6(e)(3)(C)(v) of the Federal Rules
of Criminal Procedure that identifies a United States person,
as defined in section 101 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1801)).
(d) Foreign Intelligence Information.--
(1) In general.--Notwithstanding any other provision of
law, it shall be lawful for foreign intelligence or
counterintelligence (as defined section 3 of the National
Security Act of 1947 (50 U.S.C. 401a)) or foreign
intelligence information obtained as part of a criminal
investigation to be disclosed to any Federal law enforcement,
intelligence, protective, immigration, national defense, or
national security official in order to assist the official
receiving that information in the performance of his official
duties. Any Federal official who receives information
pursuant to this provision may use that information only as
necessary in the conduct of that person's official duties
subject to any limitations on the unauthorized disclosure of
such information.
(2) Definition.--In this subsection, the term "foreign
intelligence information" means--
(A) information, whether or not concerning a United States
person, that relates to the ability of the United States to
protect against--
(i) actual or potential attack or other grave hostile acts
of a foreign power or an agent of a foreign power;
(ii) sabotage or international terrorism by a foreign power
or an agent of a foreign power; or
(iii) clandestine intelligence activities by an
intelligence service or network of a foreign power or by an
agent of a foreign power; or
(B) information, whether or not concerning a United States
person, with respect to a foreign power or foreign territory
that relates to--
(i) the national defense or the security of the United
States; or
(ii) the conduct of the foreign affairs of the United
States.
SEC. 204. CLARIFICATION OF INTELLIGENCE EXCEPTIONS FROM
LIMITATIONS ON INTERCEPTION AND DISCLOSURE OF
WIRE, ORAL, AND ELECTRONIC COMMUNICATIONS.
Section 2511(2)(f) of title 18, United States Code, is
amended--
(1) by striking "this chapter or chapter 121" and
inserting "this chapter or chapter 121 or 206 of this
title"; and
(2) by striking "wire and oral" and inserting "wire,
oral, and electronic".
SEC. 205. EMPLOYMENT OF TRANSLATORS BY THE FEDERAL BUREAU OF
INVESTIGATION.
(a) Authority.--The Director of the Federal Bureau of
Investigation is authorized to expedite the employment of
personnel as translators to support counterterrorism
investigations and operations without regard to applicable
Federal personnel requirements and limitations.
(b) Security Requirements.--The Director of the Federal
Bureau of Investigation shall establish such security
requirements as are necessary for the personnel employed as
translators under subsection (a).
(c) Report.--The Attorney General shall report to the
Committees on the Judiciary of the House of Representatives
and the Senate on--
(1) the number of translators employed by the FBI and other
components of the Department of Justice;
(2) any legal or practical impediments to using translators
employed by other Federal, State, or local agencies, on a
full, part-time, or shared basis; and
(3) the needs of the FBI for specific translation services
in certain languages, and recommendations for meeting those
needs.
SEC. 206. ROVING SURVEILLANCE AUTHORITY UNDER THE FOREIGN
INTELLIGENCE SURVEILLANCE ACT OF 1978.
Section 105(c)(2)(B) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1805(c)(2)(B)) is amended
by inserting ", or in circumstances where the Court finds
that the actions of the target of the application may have
the effect of thwarting the identification of a specified
person, such other persons," after "specified person".
SEC. 207. DURATION OF FISA SURVEILLANCE OF NON-UNITED STATES
PERSONS WHO ARE AGENTS OF A FOREIGN POWER.
(a) Duration .--
(1) Surveillance.--Section 105(d)(1) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(d)(1))
is amended by--
(A) inserting "(A)" after "except that"; and
(B) inserting before the period the following: ", and (B)
an order under this Act for a surveillance targeted against
an agent of a foreign power, as defined in section 101(b)(A)
may be for the period specified in the application or for 120
days, whichever is less".
(2) Physical Search.--Section 304(d)(1) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(1))
is amended by--
(A) striking "forty-five" and inserting "90";
(B) inserting "(A)" after "except that"; and
(C) inserting before the period the following: ", and (B)
an order under this section for a physical search targeted
against an agent of a foreign power as defined in section
101(b)(A) may be for the period specified in the application
or for 120 days, whichever is less".
(b) Extension.--
(1) In general.--Section 105(d)(2) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(d)(2))
is amended by--
(A) inserting "(A)" after "except that"; and
(B) inserting before the period the following: ", and (B)
an extension of an order under this Act for a surveillance
targeted against an agent of a foreign power as defined in
section 101(b)(1)(A) may be for a period not to exceed 1
year".
(2) Defined term.--Section 304(d)(2) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(2)
is amended by inserting after "not a United States person,"
the following: "or against an agent of a foreign power as
defined in section 101(b)(1)(A)".
SEC. 208. DESIGNATION OF JUDGES.
Section 103(a) of the Foreign Intelligence Surveillance Act
of 1978 (50 U.S.C. 1803(a)) is amended by--
(1) striking "seven district court judges" and inserting
"11 district court judges"; and
(2) inserting "of whom no less than 3 shall reside within
20 miles of the District of Columbia" after "circuits".
SEC. 209. SEIZURE OF VOICE-MAIL MESSAGES PURSUANT TO
WARRANTS.
Title 18, United States Code, is amended--
(1) in section 2510--
(A) in paragraph (1), by striking beginning with "and
such" and all that follows through "communication"; and
(B) in paragraph (14), by inserting "wire or" after
"transmission of"; and
(2) in subsections (a) and (b) of section 2703--
(A) by striking "Contents of electronic" and inserting
"Contents of wire or electronic" each place it appears;
(B) by striking "contents of an electronic" and inserting
"contents of a wire or electronic" each place it appears;
and
(C) by striking "any electronic" and inserting "any wire
or electronic" each place it appears.
[[Page S10311]]
SEC. 210. SCOPE OF SUBPOENAS FOR RECORDS OF ELECTRONIC
COMMUNICATIONS.
Section 2703(c)(2) of title 18, United States Code, as
redesignated by section 212, is amended--
(1) by striking "entity the name, address, local and long
distance telephone toll billing records, telephone number or
other subscriber number or identity, and length of service of
the subscriber" and inserting the following: "entity the--
"(A) name;
"(B) address;
"(C) local and long distance telephone connection records,
or records of session times and durations;
"(D) length of service (including start date) and types of
service utilized;
"(E) telephone or instrument number or other subscriber
number or identity, including any temporarily assigned
network address; and
"(F) means and source of payment (including any credit
card or bank account number),
of a subscriber"; and
(2) by striking "and the types of services the subscriber
or customer utilized,".
SEC. 211. CLARIFICATION OF SCOPE.
Section 631 of the Communications Act of 1934 (47 U.S.C.
551) is amended--
(1) in subsection (c)(2)--
(A) in subparagraph (B), by striking "or";
(B) in subparagraph (C), by striking the period at the end
and inserting"; or"; and
(C) by inserting at the end the following:
"(D) authorized under chapters 119, 121, or 206 of title
18, United States Code, except that such disclosure shall not
include records revealing customer cable television viewing
activity."; and
(2) in subsection (h) by striking "A governmental entity"
and inserting "Except as provided in subsection (c)(2)(D), a
governmental entity".
SEC. 212. EMERGENCY DISCLOSURE OF ELECTRONIC COMMUNICATIONS
TO PROTECT LIFE AND LIMB.
(a) Disclosure of Contents.--
(1) In general.--Section 2702 of title 18, United States
Code, is amended--
(A) by striking the section heading and inserting the
following:
"Sec. 2702. Voluntary disclosure of customer communications
or records";
(B) in subsection (a)--
(i) in paragraph (2)(A), by striking "and" at the end;
(ii) in paragraph (2)(B), by striking the period and
inserting "; and"; and
(iii) by inserting after paragraph (2) the following:
"(3) a provider of remote computing service or electronic
communication service to the public shall not knowingly
divulge a record or other information pertaining to a
subscriber to or customer of such service (not including the
contents of communications covered by paragraph (1) or (2))
to any governmental entity.";
(C) in subsection (b), by striking "Exceptions.--A person
or entity" and inserting "Exceptions for disclosure of
communications.-- A provider described in subsection (a)";
(D) in subsection (b)(6)--
(i) in subparagraph (A)(ii), by striking "or";
(ii) in subparagraph (B), by striking the period and
inserting "; or"; and
(iii) by adding after subparagraph (B) the following:
"(C) if the provider reasonably believes that an emergency
involving immediate danger of death or serious physical
injury to any person requires disclosure of the information
without delay."; and
(E) by inserting after subsection (b) the following:
"(c) Exceptions for Disclosure of Customer Records.--A
provider described in subsection (a) may divulge a record or
other information pertaining to a subscriber to or customer
of such service (not including the contents of communications
covered by subsection (a)(1) or (a)(2))--
"(1) as otherwise authorized in section 2703;
"(2) with the lawful consent of the customer or
subscriber;
"(3) as may be necessarily incident to the rendition of
the service or to the protection of the rights or property of
the provider of that service;
"(4) to a governmental entity, if the provider reasonably
believes that an emergency involving immediate danger of
death or serious physical injury to any person justifies
disclosure of the information; or
"(5) to any person other than a governmental entity.".
(2) Technical and conforming amendment.--The table of
sections for chapter 121 of title 18, United States Code, is
amended by striking the item relating to section 2702 and
inserting the following:
"2702. Voluntary disclosure of customer communications or records.".
(b) Requirements for Government Access.--
(1) In general.--Section 2703 of title 18, United States
Code, is amended--
(A) by striking the section heading and inserting the
following:
"Sec. 2703. Required disclosure of customer communications
or records";
(B) in subsection (c) by redesignating paragraph (2) as
paragraph (3);
(C) in subsection (c)(1)--
(i) by striking "(A) Except as provided in subparagraph
(B), a provider of electronic communication service or remote
computing service may" and inserting "A governmental entity
may require a provider of electronic communication service or
remote computing service to";
(ii) by striking "covered by subsection (a) or (b) of this
section) to any person other than a governmental entity.
"(B) A provider of electronic communication service or
remote computing service shall disclose a record or other
information pertaining to a subscriber to or customer of such
service (not including the contents of communications covered
by subsection (a) or (b) of this section) to a governmental
entity" and inserting ")";
(iii) by redesignating subparagraph (C) as paragraph (2);
(iv) by redesignating clauses (i), (ii), (iii), and (iv) as
subparagraphs (A), (B), (C), and (D), respectively;
(v) in subparagraph (D) (as redesignated) by striking the
period and inserting "; or"; and
(vi) by inserting after subparagraph (D) (as redesignated)
the following:
"(E) seeks information under paragraph (2)."; and
(D) in paragraph (2) (as redesignated) by striking
"subparagraph (B)" and insert "paragraph (1)".
(2) Technical and conforming amendment.--The table of
sections for chapter 121 of title 18, United States Code, is
amended by striking the item relating to section 2703 and
inserting the following:
"2703. Required disclosure of customer communications or records.".
SEC. 213. AUTHORITY FOR DELAYING NOTICE OF THE EXECUTION OF A
WARRANT.
Section 3103a of title 18, United States Code, is amended--
(1) by inserting "(a) In General.--" before "In
addition"; and
(2) by adding at the end the following:
"(b) Delay.--With respect to the issuance of any warrant
or court order under this section, or any other rule of law,
to search for and seize any property or material that
constitutes evidence of a criminal offense in violation of
the laws of the United States, any notice required, or that
may be required, to be given may be delayed if--
"(1) the court finds reasonable cause to believe that
providing immediate notification of the execution of the
warrant may have an adverse result (as defined in section
2705);
"(2) the warrant prohibits the seizure of any tangible
property, any wire or electronic communication (as defined in
section 2510), or, except as expressly provided in chapter
121, any stored wire or electronic information, except where
the court finds reasonable necessity for the seizure; and
"(3) the warrant provides for the giving of such notice
within a reasonable period of its execution, which period may
thereafter be extended by the court for good cause shown.".
SEC. 214. PEN REGISTER AND TRAP AND TRACE AUTHORITY UNDER
FISA.
(a) Applications and Orders.--Section 402 of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1842) is
amended--
(1) in subsection (a)(1), by striking "for any
investigation to gather foreign intelligence information or
information concerning international terrorism" and
inserting "for any investigation to protect against
international terrorism or clandestine intelligence
activities, provided that such investigation of a United
States person is not conducted solely upon the basis of
activities protected by the first amendment to the
Constitution";
(2) by amending subsection (c)(2) to read as follows:
"(2) a certification by the applicant that the information
likely to be obtained is relevant to an ongoing investigation
to protect against international terrorism or clandestine
intelligence activities, provided that such investigation of
a United States person is not conducted solely upon the basis
of activities protected by the first amendment to the
Constitution.";
(3) by striking subsection (c)(3); and
(4) by amending subsection (d)(2)(A) to read as follows:
"(A) shall specify--
"(i) the identity, if known, of the person who is the
subject of the investigation;
"(ii) the identity, if known, of the person to whom is
leased or in whose name is listed the telephone line or other
facility to which the pen register or trap and trace device
is to be attached or applied;
"(iii) the attributes of the communications to which the
order applies, such as the number or other identifier, and,
if known, the location of the telephone line or other
facility to which the pen register or trap and trace device
is to be attached or applied and, in the case of a trap and
trace device, the geographic limits of the trap and trace
order.".
(b) Authorization During Emergencies.--Section 403 of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1843) is amended--
(1) in subsection (a), by striking "foreign intelligence
information or information concerning international
terrorism" and inserting "information to protect against
international terrorism or clandestine intelligence
activities, provided that such investigation of a United
States person is not conducted solely upon the basis of
activities protected by the first amendment to the
Constitution"; and
[[Page S10312]]
(2) in subsection (b)(1), by striking "foreign
intelligence information or information concerning
international terrorism" and inserting "information to
protect against international terrorism or clandestine
intelligence activities, provided that such investigation of
a United States person is not conducted solely upon the basis
of activities protected by the first amendment to the
Constitution".
SEC. 215. ACCESS TO RECORDS AND OTHER ITEMS UNDER THE FOREIGN
INTELLIGENCE SURVEILLANCE ACT.
Title V of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1861 et seq.) is amended by striking sections
501 through 503 and inserting the following:
"SEC. 501. ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN
INTELLIGENCE AND INTERNATIONAL TERRORISM
INVESTIGATIONS.
"(a)(1) The Director of the Federal Bureau of
Investigation or a designee of the Director (whose rank shall
be no lower than Assistant Special Agent in Charge) may make
an application for an order requiring the production of any
tangible things (including books, records, papers, documents,
and other items) for an investigation to protect against
international terrorism or clandestine intelligence
activities, provided that such investigation of a United
States person is not conducted solely upon the basis of
activities protected by the first amendment to the
Constitution.
"(2) An investigation conducted under this section shall--
"(A) be conducted under guidelines approved by the
Attorney General under Executive Order 12333 (or a successor
order); and
"(B) not be conducted of a United States person solely
upon the basis of activities protected by the first amendment
to the Constitution of the United States.
"(b) Each application under this section--
"(1) shall be made to--
"(A) a judge of the court established by section 103(a);
or
"(B) a United States Magistrate Judge under chapter 43 of
title 28, United States Code, who is publicly designated by
the Chief Justice of the United States to have the power to
hear applications and grant orders for the production of
tangible things under this section on behalf of a judge of
that court; and
"(2) shall specify that the records concerned are sought
for an authorized investigation conducted in accordance with
subsection (a)(2) to protect against international terrorism
or clandestine intelligence activities.
"(c)(1) Upon an application made pursuant to this section,
the judge shall enter an ex parte order as requested, or as
modified, approving the release of records if the judge finds
that the application meets the requirements of this section.
"(2) An order under this subsection shall not disclose
that it is issued for purposes of an investigation described
in subsection (a).
"(d) No person shall disclose to any other person (other
than those persons necessary to produce the tangible things
under this section) that the Federal Bureau of Investigation
has sought or obtained tangible things under this section.
"(e) A person who, in good faith, produces tangible things
under an order pursuant to this section shall not be liable
to any other person for such production. Such production
shall not be deemed to constitute a waiver of any privilege
in any other proceeding or context.
"SEC. 502. CONGRESSIONAL OVERSIGHT.
"(a) On a semiannual basis, the Attorney General shall
fully inform the Permanent Select Committee on Intelligence
of the House of Representatives and the Select Committee on
Intelligence of the Senate concerning all requests for the
production of tangible things under section 402.
"(b) On a semiannual basis, the Attorney General shall
provide to the Committees on the Judiciary of the House of
Representatives and the Senate a report setting forth with
respect to the preceding 6-month period--
"(1) the total number of applications made for orders
approving requests for the production of tangible things
under section 402; and
"(2) the total number of such orders either granted,
modified, or denied.".
SEC. 216. MODIFICATION OF AUTHORITIES RELATING TO USE OF PEN
REGISTERS AND TRAP AND TRACE DEVICES.
(a) General Limitations.--Section 3121(c) of title 18,
United States Code, is amended--
(1) by inserting "or trap and trace device" after "pen
register";
(2) by inserting ", routing, addressing," after
"dialing"; and
(3) by striking "call processing" and inserting "the
processing and transmitting of wire or electronic
communications so as not to include the contents of any wire
or electronic communications".
(b) Issuance of Orders.--
(1) In general.--Section 3123(a) of title 18, United States
Code, is amended to read as follows:
"(a) In General.--
"(1) Attorney for the government.--Upon an application
made under section 3122(a)(1), the court shall enter an ex
parte order authorizing the installation and use of a pen
register or trap and trace device anywhere within the United
States, if the court finds that the attorney for the
Government has certified to the court that the information
likely to be obtained by such installation and use is
relevant to an ongoing criminal investigation. The order,
upon service of that order, shall apply to any person or
entity providing wire or electronic communication service in
the United States whose assistance may facilitate the
execution of the order. Whenever such an order is served on
any person or entity not specifically named in the order,
upon request of such person or entity, the attorney for the
Government or law enforcement or investigative officer that
is serving the order shall provide written or electronic
certification that the order applies to the person or entity
being served.
"(2) State investigative or law enforcement officer.--Upon
an application made under section 3122(a)(2), the court shall
enter an ex parte order authorizing the installation and use
of a pen register or trap and trace device within the
jurisdiction of the court, if the court finds that the State
law enforcement or investigative officer has certified to the
court that the information likely to be obtained by such
installation and use is relevant to an ongoing criminal
investigation.".
(2) Contents of order.--Section 3123(b)(1) of title 18,
United States Code, is amended--
(A) in subparagraph (A)--
(i) by inserting "or other facility" after "telephone
line"; and
(ii) by inserting before the semicolon at the end "or
applied"; and
(B) by striking subparagraph (C) and inserting the
following:
"(C) the attributes of the communications to which the
order applies, including the number or other identifier and,
if known, the location of the telephone line or other
facility to which the pen register or trap and trace device
is to be attached or applied, and, in the case of an order
authorizing installation and use of a trap and trace device
under subsection (a)(2), the geographic limits of the order;
and".
(3) Nondisclosure requirements.--Section 3123(d)(2) of
title 18, United States Code, is amended--
(A) by inserting "or other facility" after "the line";
and
(B) by striking ", or who has been ordered by the court"
and inserting "or applied, or who is obligated by the
order".
(c) Definitions.--
(1) Court of competent jurisdiction.--Section 3127(2) of
title 18, United States Code, is amended by striking
subparagraph (A) and inserting the following:
"(A) any district court of the United States (including a
magistrate judge of such a court) or any United States court
of appeals having jurisdiction over the offense being
investigated; or".
(2) Pen register.--Section 3127(3) of title 18, United
States Code, is amended--
(A) by striking "electronic or other impulses" and all
that follows through "is attached" and inserting "dialing,
routing, addressing, or signaling information transmitted by
an instrument or facility from which a wire or electronic
communication is transmitted, provided, however, that such
information shall not include the contents of any
communication"; and
(B) by inserting "or process" after "device" each place
it appears.
(3) Trap and trace device.--Section 3127(4) of title 18,
United States Code, is amended--
(A) by striking "of an instrument" and all that follows
through the semicolon and inserting "or other dialing,
routing, addressing, and signaling information reasonably
likely to identify the source of a wire or electronic
communication, provided, however, that such information shall
not include the contents of any communication;"; and
(B) by inserting "or process" after "a device".
(4) Conforming amendment.--Section 3127(1) of title 18,
United States Code, is amended--
(A) by striking "and"; and
(B) by inserting ", and `contents' " after "electronic
communication service".
(5) Technical amendment.--Section 3124(d) of title 18,
United States Code, is amended by striking "the terms of".
SEC. 217. INTERCEPTION OF COMPUTER TRESPASSER COMMUNICATIONS.
Chapter 119 of title 18, United States Code, is amended--
(1) in section 2510--
(A) in paragraph (17), by striking "and" at the end;
(B) in paragraph (18), by striking the period and inserting
a semicolon; and
(C) by inserting after paragraph (18) the following:
"(19) `protected computer' has the meaning set forth in
section 1030; and
"(20) `computer trespasser'--
"(A) means a person who accesses a protected computer
without authorization and thus has no reasonable expectation
of privacy in any communication transmitted to, through, or
from the protected computer; and
"(B) does not include a person known by the owner or
operator of the protected computer to have an existing
contractual relationship with the owner or operator of the
protected computer for access to all or part of the protected
computer."; and
(2) in section 2511(2), by inserting at the end the
following:
"(i) It shall not be unlawful under this chapter for a
person acting under color of law to intercept the wire or
electronic communications of a computer trespasser, if--
"(i) the owner or operator of the protected computer
authorizes the interception of the
[[Page S10313]]
computer trespasser's communications on the protected
computer;
"(ii) the person acting under color of law is lawfully
engaged in an investigation;
"(iii) the person acting under color of law has reasonable
grounds to believe that the contents of the computer
trespasser's communications will be relevant to the
investigation; and
"(iv) such interception does not acquire communications
other than those transmitted to or from the computer
trespasser.".
SEC. 218. FOREIGN INTELLIGENCE INFORMATION.
Sections 104(a)(7)(B) and section 303(a)(7)(B) (50 U.S.C.
1804(a)(7)(B) and 1823(a)(7)(B)) of the Foreign Intelligence
Surveillance Act of 1978 are each amended by striking "the
purpose" and inserting "a significant purpose".
SEC. 219. SINGLE-JURISDICTION SEARCH WARRANTS FOR TERRORISM.
Rule 41(a) of the Federal Rules of Criminal Procedure is
amended by inserting after "executed" the following: "and
(3) in an investigation of domestic terrorism or
international terrorism (as defined in section 2331 of title
18, United States Code), by a Federal magistrate judge in any
district in which activities related to the terrorism may
have occurred, for a search of property or for a person
within or outside the district".
SEC. 220. NATIONWIDE SERVICE OF SEARCH WARRANTS FOR
ELECTRONIC EVIDENCE.
Chapter 121 of title 18, United States Code, is amended--
(1) in section 2703, by striking "under the Federal Rules
of Criminal Procedure" every place it appears and inserting
"using the procedures described in the Federal Rules of
Criminal Procedure by a court with jurisdiction over the
offense under investigation"; and
(2) in section 2711--
(A) in paragraph (1), by striking "and";
(B) in paragraph (2), by striking the period and inserting
"; and"; and
(C) by inserting at the end the following:
"(3) the term `court of competent jurisdiction' has the
meaning assigned by section 3127, and includes any Federal
court within that definition, without geographic
limitation.".
SEC. 221. TRADE SANCTIONS.
(a) In general.--The Trade Sanctions Reform and Export
Enhancement Act of 2000 (Public Law 106-387; 114 Stat. 1549A-
67) is amended--
(1) by amending section 904(2)(C) to read as follows:
"(C) used to facilitate the design, development, or
production of chemical or biological weapons, missiles, or
weapons of mass destruction.";
(2) in section 906(a)(1)--
(A) by inserting ", the Taliban or the territory of
Afghanistan controlled by the Taliban," after "Cuba"; and
(B) by inserting ", or in the territory of Afghanistan
controlled by the Taliban," after "within such country";
and
(3) in section 906(a)(2), by inserting ", or to any other
entity in Syria or North Korea" after "Korea".
(b) Application of the Trade Sanctions Reform and Export
Enhancement Act.--Nothing in the Trade Sanctions Reform and
Export Enhancement Act of 2000 shall limit the application or
scope of any law establishing criminal or civil penalties,
including any executive order or regulation promulgated
pursuant to such laws (or similar or successor laws), for the
unlawful export of any agricultural commodity, medicine, or
medical device to--
(1) a foreign organization, group, or person designated
pursuant to Executive Order 12947 of June 25, 1995;
(2) a Foreign Terrorist Organization pursuant to the
Antiterrorism and Effective Death Penalty Act of 1996 (Public
Law 104-132);
(3) a foreign organization, group, or person designated
pursuant to Executive Order 13224 (September 23, 2001);
(4) any narcotics trafficking entity designated pursuant to
Executive Order 12978 (October 21, 1995) or the Foreign
Narcotics Kingpin Designation Act (Public Law 106-120); or
(5) any foreign organization, group, or persons subject to
any restriction for its involvement in weapons of mass
destruction or missile proliferation.
SEC. 222. ASSISTANCE TO LAW ENFORCEMENT AGENCIES.
Nothing in this Act shall impose any additional technical
obligation or requirement on a provider of wire or electronic
communication service or other person to furnish facilities
or technical assistance. A provider of a wire or electronic
communication service, landlord, custodian, or other person
who furnishes facilities or technical assistance pursuant to
section 216 shall be reasonably compensated for such
reasonable expenditures incurred in providing such facilities
or assistance.
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001.
SEC. 301. SHORT TITLE.
This title may be cited as the "International Money
Laundering Abatement and Anti-Terrorist Financing Act of
2001".
SEC. 302. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) money laundering, estimated by the International
Monetary Fund to amount to between 2 and 5 percent of global
gross domestic product, which is at least $600,000,000,000
annually, provides the financial fuel that permits
transnational criminal enterprises to conduct and expand
their operations to the detriment of the safety and security
of American citizens;
(2) money laundering, and the defects in financial
transparency on which money launderers rely, are critical to
the financing of global terrorism and the provision of funds
for terrorist attacks;
(3) money launderers subvert legitimate financial
mechanisms and banking relationships by using them as
protective covering for the movement of criminal proceeds and
the financing of crime and terrorism, and, by so doing, can
threaten the safety of United States citizens and undermine
the integrity of United States financial institutions and of
the global financial and trading systems upon which
prosperity and growth depend;
(4) certain jurisdictions outside of the United States that
offer "offshore" banking and related facilities designed to
provide anonymity, coupled with special tax advantages and
weak financial supervisory and enforcement regimes, provide
essential tools to disguise ownership and movement of
criminal funds, derived from, or used to commit, offenses
ranging from narcotics trafficking, terrorism, arms
smuggling, and trafficking in human beings, to financial
frauds that prey on law-abiding citizens;
(5) transactions involving such offshore jurisdictions make
it difficult for law enforcement officials and regulators to
follow the trail of money earned by criminals, organized
international criminal enterprises, and global terrorist
organizations;
(6) correspondent banking facilities are one of the banking
mechanisms susceptible in some circumstances to manipulation
by foreign banks to permit the laundering of funds by hiding
the identity of real parties in interest to financial
transactions;
(7) private banking services can be susceptible to
manipulation by money launderers, for example corrupt foreign
government officials, particularly if those services include
the creation of offshore accounts and facilities for large
personal funds transfers to channel funds into accounts
around the globe;
(8) United States anti-money laundering efforts are impeded
by outmoded and inadequate statutory provisions that make
investigations, prosecutions, and forfeitures more difficult,
particularly in cases in which money laundering involves
foreign persons, foreign banks, or foreign countries;
(9) the ability to mount effective counter-measures to
international money launderers requires national, as well as
bilateral and multilateral action, using tools specially
designed for that effort; and
(10) the Basle Committee on Banking Regulation and
Supervisory Practices and the Financial Action Task Force on
Money Laundering, of both of which the United States is a
member, have each adopted international anti-money laundering
principles and recommendations.
(b) Purposes.--The purposes of this title are--
(1) to increase the strength of United States measures to
prevent, detect, and prosecute international money laundering
and the financing of terrorism;
(2) to ensure that--
(A) banking transactions and financial relationships and
the conduct of such transactions and relationships, do not
contravene the purposes of subchapter II of chapter 53 of
title 31, United States Code, section 21 of the Federal
Deposit Insurance Act, or chapter 2 of title I of Public Law
91-508 (84 Stat. 1116), or facilitate the evasion of any such
provision; and
(B) the purposes of such provisions of law continue to be
fulfilled, and that such provisions of law are effectively
and efficiently administered;
(3) to strengthen the provisions put into place by the
Money Laundering Control Act of 1986 (18 U.S.C. 981 note),
especially with respect to crimes by non-United States
nationals and foreign financial institutions;
(4) to provide a clear national mandate for subjecting to
special scrutiny those foreign jurisdictions, financial
institutions operating outside of the United States, and
classes of international transactions that pose particular,
identifiable opportunities for criminal abuse;
(5) to provide the Secretary of the Treasury (in this title
referred to as the "Secretary") with broad discretion,
subject to the safeguards provided by the Administrative
Procedures Act under title 5, United States Code, to take
measures tailored to the particular money laundering problems
presented by specific foreign jurisdictions, financial
institutions operating outside of the United States, and
classes of international transactions;
(6) to ensure that the employment of such measures by the
Secretary permits appropriate opportunity for comment by
affected financial institutions;
(7) to provide guidance to domestic financial institutions
on particular foreign jurisdictions, financial institutions
operating outside of the United States, and classes of
international transactions that are of primary money
laundering concern to the United States Government;
(8) to ensure that the forfeiture of any assets in
connection with the anti-terrorist efforts of the United
States permits for adequate challenge consistent with
providing due process rights;
(9) to clarify the terms of the safe harbor from civil
liability for filing suspicious activity reports;
[[Page S10314]]
(10) to strengthen the authority of the Secretary to issue
and administer geographic targeting orders, and to clarify
that violations of such orders or any other requirement
imposed under the authority contained in chapter 2 of title I
of Public Law 91-508 and subchapters II and III of chapter 53
of title 31, United States Code, may result in criminal and
civil penalties;
(11) to ensure that all appropriate elements of the
financial services industry are subject to appropriate
requirements to report potential money laundering
transactions to proper authorities, and that jurisdictional
disputes do not hinder examination of compliance by financial
institutions with relevant reporting requirements;
(12) to fix responsibility for high level coordination of
the anti-money laundering efforts of the Department of the
Treasury;
(13) to strengthen the ability of financial institutions to
maintain the integrity of their employee population; and
(14) to strengthen measures to prevent the use of the
United States financial system for personal gain by corrupt
foreign officials and to facilitate the repatriation of any
stolen assets to the citizens of countries to whom such
assets belong.
SEC. 303. 4-YEAR CONGRESSIONAL REVIEW-EXPEDITED
CONSIDERATION.
(a) In General.--Effective on and after the first day of
fiscal year 2005, the provisions of this title and the
amendments made by this title shall terminate if the Congress
enacts a joint resolution, the text after the resolving
clause of which is as follows: "That provisions of the
International Money Laundering Abatement and Anti-Terrorist
Financing Act of 2001, and the amendments made thereby, shall
no longer have the force of law.".
(b) Expedited Consideration.--Any joint resolution
submitted pursuant to this section shall be considered in the
Senate in accordance with the provisions of section 601(b) of
the International Security Assistance and Arms Control Act of
1976. For the purpose of expediting the consideration and
enactment of a joint resolution under this section, a motion
to proceed to the consideration of any such joint resolution
after it has been reported by the appropriate committee,
shall be treated as highly privileged in the House of
Representatives.
Subtitle A--International Counter Money Laundering and Related Measures
SEC. 311. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL
INSTITUTIONS, OR INTERNATIONAL TRANSACTIONS OF
PRIMARY MONEY LAUNDERING CONCERN.
(a) In General.--Subchapter II of chapter 53 of title 31,
United States Code, is amended by inserting after section
5318 the following new section:
"SEC. 5318A. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL
INSTITUTIONS, OR INTERNATIONAL TRANSACTIONS OF
PRIMARY MONEY LAUNDERING CONCERN.
"(a) International Counter-Money Laundering
Requirements.--
"(1) In general.--The Secretary may require domestic
financial institutions and domestic financial agencies to
take 1 or more of the special measures described in
subsection (b) if the Secretary finds that reasonable grounds
exist for concluding that a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts is of
primary money laundering concern, in accordance with
subsection (c).
"(2) Form of requirement.--The special measures described
in--
"(A) subsection (b) may be imposed in such sequence or
combination as the Secretary shall determine;
"(B) paragraphs (1) through (4) of subsection (b) may be
imposed by regulation, order, or otherwise as permitted by
law; and
"(C) subsection (b)(5) may be imposed only by regulation.
"(3) Duration of orders; rulemaking.--Any order by which a
special measure described in paragraphs (1) through (4) of
subsection (b) is imposed (other than an order described in
section 5326)--
"(A) shall be issued together with a notice of proposed
rulemaking relating to the imposition of such special
measure; and
"(B) may not remain in effect for more than 120 days,
except pursuant to a rule promulgated on or before the end of
the 120-day period beginning on the date of issuance of such
order.
"(4) Process for selecting special measures.--In selecting
which special measure or measures to take under this
subsection, the Secretary--
"(A) shall consult with the Chairman of the Board of
Governors of the Federal Reserve System, any other
appropriate Federal banking agency, as defined in section 3
of the Federal Deposit Insurance Act, the Securities and
Exchange Commission, the National Credit Union Administration
Board, and in the sole discretion of the Secretary such other
agencies and interested parties as the Secretary may find to
be appropriate; and
"(B) shall consider--
"(i) whether similar action has been or is being taken by
other nations or multilateral groups;
"(ii) whether the imposition of any particular special
measure would create a significant competitive disadvantage,
including any undue cost or burden associated with
compliance, for financial institutions organized or licensed
in the United States; and
"(iii) the extent to which the action or the timing of the
action would have a significant adverse systemic impact on
the international payment, clearance, and settlement system,
or on legitimate business activities involving the particular
jurisdiction, institution, or class of transactions.
"(5) No limitation on other authority.--This section shall
not be construed as superseding or otherwise restricting any
other authority granted to the Secretary, or to any other
agency, by this subchapter or otherwise.
"(b) Special Measures.--The special measures referred to
in subsection (a), with respect to a jurisdiction outside of
the United States, financial institution operating outside of
the United States, class of transaction within, or involving,
a jurisdiction outside of the United States, or 1 or more
types of accounts are as follows:
"(1) Recordkeeping and reporting of certain financial
transactions.--
"(A) In general.--The Secretary may require any domestic
financial institution or domestic financial agency to
maintain records, file reports, or both, concerning the
aggregate amount of transactions, or concerning each
transaction, with respect to a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts if the
Secretary finds any such jurisdiction, institution, or class
of transactions to be of primary money laundering concern.
"(B) Form of records and reports.--Such records and
reports shall be made and retained at such time, in such
manner, and for such period of time, as the Secretary shall
determine, and shall include such information as the
Secretary may determine, including--
"(i) the identity and address of the participants in a
transaction or relationship, including the identity of the
originator of any funds transfer;
"(ii) the legal capacity in which a participant in any
transaction is acting;
"(iii) the identity of the beneficial owner of the funds
involved in any transaction, in accordance with such
procedures as the Secretary determines to be reasonable and
practicable to obtain and retain the information; and
"(iv) a description of any transaction.
"(2) Information relating to beneficial ownership.--In
addition to any other requirement under any other provision
of law, the Secretary may require any domestic financial
institution or domestic financial agency to take such steps
as the Secretary may determine to be reasonable and
practicable to obtain and retain information concerning the
beneficial ownership of any account opened or maintained in
the United States by a foreign person (other than a foreign
entity whose shares are subject to public reporting
requirements or are listed and traded on a regulated exchange
or trading market), or a representative of such a foreign
person, that involves a jurisdiction outside of the United
States, 1 or more financial institutions operating outside of
the United States, 1 or more classes of transactions within,
or involving, a jurisdiction outside of the United States, or
1 or more types of accounts if the Secretary finds any such
jurisdiction, institution, or transaction to be of primary
money laundering concern.
"(3) Information relating to certain payable-through
accounts.--If the Secretary finds a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States to be of primary money laundering concern,
the Secretary may require any domestic financial institution
or domestic financial agency that opens or maintains a
payable-through account in the United States for a foreign
financial institution involving any such jurisdiction or any
such financial institution operating outside of the United
States, or a payable through account through which any such
transaction may be conducted, as a condition of opening or
maintaining such account--
"(A) to identify each customer (and representative of such
customer) of such financial institution who is permitted to
use, or whose transactions are routed through, such payable-
through account; and
"(B) to obtain, with respect to each such customer (and
each such representative), information that is substantially
comparable to that which the depository institution obtains
in the ordinary course of business with respect to its
customers residing in the United States.
"(4) Information relating to certain correspondent
accounts.--If the Secretary finds a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States to be of primary money laundering concern,
the Secretary may require any domestic financial institution
or domestic financial agency that opens or maintains a
correspondent account in the United States for a foreign
financial institution involving any such jurisdiction or any
such financial institution operating outside of the United
States, or a correspondent account through
[[Page S10315]]
which any such transaction may be conducted, as a condition
of opening or maintaining such account--
"(A) to identify each customer (and representative of such
customer) of any such financial institution who is permitted
to use, or whose transactions are routed through, such
correspondent account; and
"(B) to obtain, with respect to each such customer (and
each such representative), information that is substantially
comparable to that which the depository institution obtains
in the ordinary course of business with respect to its
customers residing in the United States.
"(5) Prohibitions or conditions on opening or maintaining
certain correspondent or payable-through accounts.--If the
Secretary finds a jurisdiction outside of the United States,
1 or more financial institutions operating outside of the
United States, or 1 or more classes of transactions within,
or involving, a jurisdiction outside of the United States to
be of primary money laundering concern, the Secretary, in
consultation with the Secretary of State, the Attorney
General, and the Chairman of the Board of Governors of the
Federal Reserve System, may prohibit, or impose conditions
upon, the opening or maintaining in the United States of a
correspondent account or payable- through account by any
domestic financial institution or domestic financial agency
for or on behalf of a foreign banking institution, if such
correspondent account or payable-through account involves any
such jurisdiction or institution, or if any such transaction
may be conducted through such correspondent account or
payable-through account.
"(c) Consultations and Information To Be Considered in
Finding Jurisdictions, Institutions, Types of Accounts, or
Transactions To Be of Primary Money Laundering Concern.--
"(1) In general.--In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts is of
primary money laundering concern so as to authorize the
Secretary to take 1 or more of the special measures described
in subsection (b), the Secretary shall consult with the
Secretary of State, and the Attorney General.
"(2) Additional considerations.--In making a finding
described in paragraph (1), the Secretary shall consider in
addition such information as the Secretary determines to be
relevant, including the following potentially relevant
factors:
"(A) Jurisdictional factors.--In the case of a particular
jurisdiction--
"(i) evidence that organized criminal groups,
international terrorists, or both, have transacted business
in that jurisdiction;
(ii) the extent to which that jurisdiction or financial
institutions operating in that jurisdiction offer bank
secrecy or special tax or regulatory advantages to
nonresidents or nondomiciliaries of that jurisdiction;
"(iii) the substance and quality of administration of the
bank supervisory and counter-money laundering laws of that
jurisdiction;
"(iv) the relationship between the volume of financial
transactions occurring in that jurisdiction and the size of
the economy of the jurisdiction;
"(v) the extent to which that jurisdiction is
characterized as a tax haven or offshore banking or secrecy
haven by credible international organizations or multilateral
expert groups;
"(vi) whether the United States has a mutual legal
assistance treaty with that jurisdiction, and the experience
of United States law enforcement officials, regulatory
officials, and tax administrators in obtaining information
about transactions originating in or routed through or to
such jurisdiction; and
"(vii) the extent to which that jurisdiction is
characterized by high levels of official or institutional
corruption.
"(B) Institutional factors.--In the case of a decision to
apply 1 or more of the special measures described in
subsection (b) only to a financial institution or
institutions, or to a transaction or class of transactions,
or to a type of account, or to all 3, within or involving a
particular jurisdiction--
"(i) the extent to which such financial institutions,
transactions, or types of accounts are used to facilitate or
promote money laundering in or through the jurisdiction;
"(ii) the extent to which such institutions, transactions,
or types of accounts are used for legitimate business
purposes in the jurisdiction; and
"(iii) the extent to which such action is sufficient to
ensure, with respect to transactions involving the
jurisdiction and institutions operating in the jurisdiction,
that the purposes of this subchapter continue to be
fulfilled, and to guard against international money
laundering and other financial crimes.
"(d) Notification of Special Measures Invoked by the
Secretary.--Not later than 10 days after the date of any
action taken by the Secretary under subsection (a)(1), the
Secretary shall notify, in writing, the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate of any such action.
"(e) Study and Report on Foreign Nationals.--
"(1) Study.--The Secretary, in consultation with the
appropriate Federal agencies, including the Federal banking
agencies (as defined in section 3 of the Federal Deposit
Insurance Act), shall conduct a study to--
"(A) determine the most timely and effective way to
require foreign nationals to provide domestic financial
institutions and agencies with appropriate and accurate
information, comparable to that which is required of United
States nationals, concerning their identity, address, and
other related information necessary to enable such
institutions and agencies to comply with the reporting,
information gathering, and other requirements of this
section; and
"(B) consider the need for requiring foreign nationals to
apply for and obtain an identification number, similar to
what is required for United States citizens through a social
security number or tax identification number, prior to
opening an account with a domestic financial institution.
"(2) Report.--The Secretary shall report to Congress not
later than 180 days after the date of enactment of this
section with recommendations for implementing such action
referred to in paragraph (1) in a timely and effective
manner.
"(f) Definitions.--Notwithstanding any other provision of
this subchapter, for purposes of this section, the following
definitions shall apply:
"(1) Bank definitions.--The following definitions shall
apply with respect to a bank:
"(A) Account.--The term `account'--
"(i) means a formal banking or business relationship
established to provide regular services, dealings, and other
financial transactions; and
"(ii) includes a demand deposit, savings deposit, or other
transaction or asset account and a credit account or other
extension of credit.
"(B) Correspondent account.--The term `correspondent
account' means an account established to receive deposits
from, make payments on behalf of a foreign financial
institution, or handle other financial transactions related
to such institution.
"(C) Payable-through account.--The term `payable-through
account' means an account, including a transaction account
(as defined in section 19(b)(1)(C) of the Federal Reserve
Act), opened at a depository institution by a foreign
financial institution by means of which the foreign financial
institution permits its customers to engage, either directly
or through a subaccount, in banking activities usual in
connection with the business of banking in the United States.
"(2) Definitions applicable to institutions other than
banks.--With respect to any financial institution other than
a bank, the Secretary shall, after consultation with the
Securities and Exchange Commission, define by regulation the
term `account', and shall include within the meaning of that
term, to the extent, if any, that the Secretary deems
appropriate, arrangements similar to payable-through and
correspondent accounts.
"(3) Regulatory definition.--The Secretary shall
promulgate regulations defining beneficial ownership of an
account for purposes of this section. Such regulations shall
address issues related to an individual's authority to fund,
direct, or manage the account (including, without limitation,
the power to direct payments into or out of the account), and
an individual's material interest in the income or corpus of
the account, and shall ensure that the identification of
individuals under this section does not extend to any
individual whose beneficial interest in the income or corpus
of the account is immaterial.".
"(4) Other terms.--The Secretary may, by regulation,
further define the terms in paragraphs (1) and (2) and define
other terms for the purposes of this section, as the
Secretary deems appropriate.".
(b) Clerical Amendment.--The table of sections for
subchapter II of chapter 53 of title 31, United States Code,
is amended by inserting after the item relating to section
5318 the following new item:
"5318A. Special measures for jurisdictions, financial institutions, or
international transactions of primary money laundering
concern.".
SEC. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS
AND PRIVATE BANKING ACCOUNTS.
(a) In General.--Section 5318 of title 31, United States
Code, is amended by adding at the end the following:
"(i) Due Diligence for United States Private Banking and
Correspondent Bank Accounts Involving Foreign Persons.--
"(1) In general.--Each financial institution that
establishes, maintains, administers, or manages a private
banking account or a correspondent account in the United
States for a non-United States person, including a foreign
individual visiting the United States, or a representative of
a non-United States person shall establish appropriate,
specific, and, where necessary, enhanced, due diligence
policies, procedures, and controls to detect and report
instances of money laundering through those accounts.
"(2) Minimum standards for correspondent accounts.--
"(A) In general.--Subparagraph (B) shall apply if a
correspondent account is requested or maintained by, or on
behalf of, a foreign bank operating--
[[Page S10316]]
"(i) under an offshore banking license; or
"(ii) under a banking license issued by a foreign country
that has been designated--
"(I) as noncooperative with international anti-money
laundering principles or procedures by an intergovernmental
group or organization of which the United States is a member;
or
"(II) by the Secretary as warranting special measures due
to money laundering concerns.
"(B) Policies, procedures, and controls.--The enhanced due
diligence policies, procedures, and controls required under
paragraph (1) shall, at a minimum, ensure that the financial
institution in the United States takes reasonable steps--
"(i) to ascertain for any such foreign bank, the shares of
which are not publicly traded, the identity of each of the
owners of the foreign bank, and the nature and extent of the
ownership interest of each such owner;
"(ii) to conduct enhanced scrutiny of such account to
guard against money laundering and report any suspicious
transactions under section 5318(g); and
"(iii) to ascertain whether such foreign bank provides
correspondent accounts to other foreign banks and, if so, the
identity of those foreign banks and related due diligence
information, as appropriate under paragraph (1).
"(3) Minimum standards for private banking accounts.--If a
private banking account is requested or maintained by, or on
behalf of, a non-United States person, then the due diligence
policies, procedures, and controls required under paragraph
(1) shall, at a minimum, ensure that the financial
institution takes reasonable steps--
"(A) to ascertain the identity of the nominal and
beneficial owners of, and the source of funds deposited into,
such account as needed to guard against money laundering and
report any suspicious transactions under section 5318(g); and
"(B) to conduct enhanced scrutiny of any such account that
is requested or maintained by, or on behalf of, a senior
foreign political figure, or any immediate family member or
close associate of a senior foreign political figure, to
prevent, detect, and report transactions that may involve the
proceeds of foreign corruption.
"(4) Definitions and regulatory authority.--
"(A) Offshore banking license.--For purposes of this
subsection, the term `offshore banking license' means a
license to conduct banking activities which, as a condition
of the license, prohibits the licensed entity from conducting
banking activities with the citizens of, or with the local
currency of, the country which issued the license.
"(B) Regulatory authority.--The Secretary, in consultation
with the appropriate functional regulators of the affected
financial institutions, may further delineate, by regulation
the due diligence policies, procedures, and controls required
under paragraph (1).".
(b) Effective Date.--The amendments made by this section
shall take effect beginning 180 days after the date of
enactment of this Act with respect to accounts covered by
section 5318(i) of title 31, United States Code, as added by
this section, that are opened before, on, or after the date
of enactment of this Act.
SEC. 313. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS
WITH FOREIGN SHELL BANKS.
(a) In General.--Section 5318 of title 31, United States
Code, is amended by inserting after section 5318(i), as added
by section 312 of this title, the following:
"(j) Prohibition on United States Correspondent Accounts
With Foreign Shell Banks.--
"(1) In general.--A financial institution described in
subparagraphs (A) through (F) of section 5312(a)(2) (in this
subsection referred to as a `covered financial institution')
shall not establish, maintain, administer, or manage a
correspondent account in the United States for, or on behalf
of, a foreign bank that does not have a physical presence in
any country.
"(2) Prevention of indirect service to foreign shell
banks.--A covered financial institution shall take reasonable
steps to ensure that any correspondent account established,
maintained, administered, or managed by that covered
financial institution in the United States for a foreign bank
is not being used by that foreign bank to indirectly provide
banking services to another foreign bank that does not have a
physical presence in any country. The Secretary shall, by
regulation, delineate the reasonable steps necessary to
comply with this paragraph.
"(3) Exception.--Paragraphs (1) and (2) do not prohibit a
covered financial institution from providing a correspondent
account to a foreign bank, if the foreign bank--
"(A) is an affiliate of a depository institution, credit
union, or foreign bank that maintains a physical presence in
the United States or a foreign country, as applicable; and
"(B) is subject to supervision by a banking authority in
the country regulating the affiliated depository institution,
credit union, or foreign bank described in subparagraph (A),
as applicable.
"(4) Definitions.--For purposes of this subsection--
"(A) the term `affiliate' means a foreign bank that is
controlled by or is under common control with a depository
institution, credit union, or foreign bank; and
"(B) the term `physical presence' means a place of
business that--
"(i) is maintained by a foreign bank;
"(ii) is located at a fixed address (other than solely an
electronic address) in a country in which the foreign bank is
authorized to conduct banking activities, at which location
the foreign bank--
"(I) employs 1 or more individuals on a full-time basis;
and
"(II) maintains operating records related to its banking
activities; and
"(iii) is subject to inspection by the banking authority
which licensed the foreign bank to conduct banking
activities.".
SEC. 314. COOPERATIVE EFFORTS TO DETER MONEY LAUNDERING.
(a) Cooperation Among Financial Institutions, Regulatory
Authorities, and Law Enforcement Authorities.--
(1) Regulations.--The Secretary shall, within 120 days
after the date of enactment of this Act, adopt regulations to
encourage further cooperation among financial institutions,
their regulatory authorities, and law enforcement
authorities, with the specific purpose of encouraging
regulatory authorities and law enforcement authorities to
share with financial institutions information regarding
individuals, entities, and organizations engaged in or
reasonably suspected based on credible evidence of engaging
in terrorist acts or money laundering activities.
(2) Contents.--The regulations promulgated pursuant to
paragraph (1) may--
(A) require that each financial institution designate 1 or
more persons to receive information concerning, and to
monitor accounts of individuals, entities, and organizations
identified, pursuant to paragraph (1); and
(B) further establish procedures for the protection of the
shared information, consistent with the capacity, size, and
nature of the institution to which the particular procedures
apply.
(3) Rule of construction.--The receipt of information by a
financial institution pursuant to this section shall not
relieve or otherwise modify the obligations of the financial
institution with respect to any other person or account.
(4) Use of information.--Information received by a
financial institution pursuant to this section shall not be
used for any purpose other than identifying and reporting on
activities that may involve terrorist acts or money
laundering activities.
(b) Cooperation Among Financial Institutions.--Upon notice
provided to the Secretary, 2 or more financial institutions
and any association of financial institutions may share
information with one another regarding individuals, entities,
organizations, and countries suspected of possible terrorist
or money laundering activities. A financial institution or
association that transmits, receives, or shares such
information for the purposes of identifying and reporting
activities that may involve terrorist acts or money
laundering activities shall not be liable to any person under
any law or regulation of the United States, any constitution,
law, or regulation of any State or political subdivision
thereof, or under any contract or other legally enforceable
agreement (including any arbitration agreement), for such
disclosure or for any failure to provide notice of such
disclosure to the person who is the subject of such
disclosure, or any other person identified in the disclosure,
except where such transmission, receipt, or sharing violates
this section or regulations promulgated pursuant to this
section.
(c) Rule of Construction.--Compliance with the provisions
of this title requiring or allowing financial institutions
and any association of financial institutions to disclose or
share information regarding individuals, entities, and
organizations engaged in or suspected of engaging in
terrorist acts or money laundering activities shall not
constitute a violation of the provisions of title V of the
Gramm-Leach-Bliley Act (Public Law 106-102).
SEC. 315. INCLUSION OF FOREIGN CORRUPTION OFFENSES AS MONEY
LAUNDERING CRIMES.
Section 1956(c)(7)(B) of title 18, United States Code, is
amended--
(1) in clause (ii), by striking "or destruction of
property by means of explosive or fire" and inserting
"destruction of property by means of explosive or fire, or a
crime of violence (as defined in section 16)";
(2) in clause (iii), by striking "1978" and inserting
"1978)"; and
(3) by adding at the end the following:
"(iv) bribery of a public official, or the
misappropriation, theft, or embezzlement of public funds by
or for the benefit of a public official;
"(v) smuggling or export control violations involving--
"(I) an item controlled on the United States Munitions
List established under section 38 of the Arms Export Control
Act (22 U.S.C. 2778); or
"(II) an item controlled under regulations under the
Export Administration Act of 1977 (15 C.F.R. Parts 730-774);
"(vi) an offense with respect to which the United States
would be obligated by a multilateral treaty, either to
extradite the alleged offender or to submit the case for
prosecution, if the offender were found within the territory
of the United States; or
"(vii) the misuse of funds of, or provided by, the
International Monetary Fund in contravention of the Articles
of Agreement of the Fund or the misuse of funds of, or
provided by, any other international financial
[[Page S10317]]
institution (as defined in section 1701(c)(2) of the
International Financial Institutions Act (22 U.S.C.
262r(c)(2)) in contravention of any treaty or other
international agreement to which the United States is a
party, including any articles of agreement of the members of
the international financial institution;".
SEC. 316. ANTI-TERRORIST FORFEITURE PROTECTION.
(a) Right To Contest.--An owner of property that is
confiscated under any provision of law relating to the
confiscation of assets of suspected international terrorists,
may contest that confiscation by filing a claim in the manner
set forth in the Federal Rules of Civil Procedure
(Supplemental Rules for Certain Admiralty and Maritime
Claims), and asserting as an affirmative defense that--
(1) the property is not subject to confiscation under such
provision of law; or
(2) the innocent owner provisions of section 983(d) of
title 18, United States Code, apply to the case.
(b) Evidence.--In considering a claim filed under this
section, the Government may rely on evidence that is
otherwise inadmissible under the Federal Rules of Evidence,
if a court determines that such reliance is necessary to
protect the national security interests of the United States.
(c) Other Remedies.--Nothing in this section shall limit or
otherwise affect any other remedies that may be available to
an owner of property under section 983 of title 18, United
States Code, or any other provision of law.
SEC. 317. LONG-ARM JURISDICTION OVER FOREIGN MONEY
LAUNDERERS.
Section 1956(b) of title 18, United States Code, is
amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving the
margins 2 ems to the right;
(2) by inserting after "(b)" the following:
"Penalties.--
"(1) In general.--";
(3) by inserting ", or section 1957" after "or (a)(3)";
and
(4) by adding at the end the following:
"(2) Jurisdiction over foreign persons.--For purposes of
adjudicating an action filed or enforcing a penalty ordered
under this section, the district courts shall have
jurisdiction over any foreign person, including any financial
institution authorized under the laws of a foreign country,
against whom the action is brought, if service of process
upon the foreign person is made under the Federal Rules of
Civil Procedure or the laws of the country in which the
foreign person is found, and--
"(A) the foreign person commits an offense under
subsection (a) involving a financial transaction that occurs
in whole or in part in the United States;
"(B) the foreign person converts, to his or her own use,
property in which the United States has an ownership interest
by virtue of the entry of an order of forfeiture by a court
of the United States; or
"(C) the foreign person is a financial institution that
maintains a bank account at a financial institution in the
United States.
"(3) Court authority over assets.--A court described in
paragraph (2) may issue a pretrial restraining order or take
any other action necessary to ensure that any bank account or
other property held by the defendant in the United States is
available to satisfy a judgment under this section.
"(4) Federal receiver.--
"(A) In general.--A court described in paragraph (2) may
appoint a Federal Receiver, in accordance with subparagraph
(B) of this paragraph, to collect, marshal, and take custody,
control, and possession of all assets of the defendant,
wherever located, to satisfy a judgment under this section or
section 981, 982, or 1957, including an order of restitution
to any victim of a specified unlawful activity.
"(B) Appointment and authority.--A Federal Receiver
described in subparagraph (A)--
"(i) may be appointed upon application of a Federal
prosecutor or a Federal or State regulator, by the court
having jurisdiction over the defendant in the case;
"(ii) shall be an officer of the court, and the powers of
the Federal Receiver shall include the powers set out in
section 754 of title 28, United States Code; and
"(iii) shall have standing equivalent to that of a Federal
prosecutor for the purpose of submitting requests to obtain
information regarding the assets of the defendant--
"(I) from the Financial Crimes Enforcement Network of the
Department of the Treasury; or
"(II) from a foreign country pursuant to a mutual legal
assistance treaty, multilateral agreement, or other
arrangement for international law enforcement assistance,
provided that such requests are in accordance with the
policies and procedures of the Attorney General.".
SEC. 318. LAUNDERING MONEY THROUGH A FOREIGN BANK.
Section 1956(c) of title 18, United States Code, is amended
by striking paragraph (6) and inserting the following:
"(6) the term `financial institution' includes--
"(A) any financial institution, as defined in section
5312(a)(2) of title 31, United States Code, or the
regulations promulgated thereunder; and
"(B) any foreign bank, as defined in section 1 of the
International Banking Act of 1978 (12 U.S.C. 3101).".
SEC. 319. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK
ACCOUNTS.
(a) Forfeiture From United States Interbank Account.--
Section 981 of title 18, United States Code, is amended by
adding at the end the following:
"(k) Interbank Accounts.--
"(1) In general.--
"(A) In general.--For the purpose of a forfeiture under
this section or under the Controlled Substances Act (21
U.S.C. 801 et seq.), if funds are deposited into an account
at a foreign bank, and that foreign bank has an interbank
account in the United States with a covered financial
institution (as defined in section 5318A of title 31), the
funds shall be deemed to have been deposited into the
interbank account in the United States, and any restraining
order, seizure warrant, or arrest warrant in rem regarding
the funds may be served on the covered financial institution,
and funds in the interbank account, up to the value of the
funds deposited into the account at the foreign bank, may be
restrained, seized, or arrested.
"(B) Authority to suspend.--The Attorney General, in
consultation with the Secretary, may suspend or terminate a
forfeiture under this section if the Attorney General
determines that a conflict of law exists between the laws of
the jurisdiction in which the foreign bank is located and the
laws of the United States with respect to liabilities arising
from the restraint, seizure, or arrest of such funds, and
that such suspension or termination would be in the interest
of justice and would not harm the national interests of the
United States.
"(2) No requirement for government to trace funds.--If a
forfeiture action is brought against funds that are
restrained, seized, or arrested under paragraph (1), it shall
not be necessary for the Government to establish that the
funds are directly traceable to the funds that were deposited
into the foreign bank, nor shall it be necessary for the
Government to rely on the application of section 984.
"(3) Claims brought by owner of the funds.--If a
forfeiture action is instituted against funds restrained,
seized, or arrested under paragraph (1), the owner of the
funds deposited into the account at the foreign bank may
contest the forfeiture by filing a claim under section 983.
"(4) Definitions.--For purposes of this subsection, the
following definitions shall apply:
"(A) Interbank account.--The term `interbank account' has
the same meaning as in section 984(c)(2)(B).
"(B) Owner.--
"(i) In general.--Except as provided in clause (ii), the
term `owner'--
"(I) means the person who was the owner, as that term is
defined in section 983(d)(6), of the funds that were
deposited into the foreign bank at the time such funds were
deposited; and
"(II) does not include either the foreign bank or any
financial institution acting as an intermediary in the
transfer of the funds into the interbank account.
"(ii) Exception.--The foreign bank may be considered the
`owner' of the funds (and no other person shall qualify as
the owner of such funds) only if--
"(I) the basis for the forfeiture action is wrongdoing
committed by the foreign bank; or
"(II) the foreign bank establishes, by a preponderance of
the evidence, that prior to the restraint, seizure, or arrest
of the funds, the foreign bank had discharged all or part of
its obligation to the prior owner of the funds, in which case
the foreign bank shall be deemed the owner of the funds to
the extent of such discharged obligation.".
(b) Bank Records.--Section 5318 of title 31, United States
Code, is amended by adding at the end the following:
"(k) Bank Records Related to Anti-Money Laundering
Programs.--
"(1) Definitions.--For purposes of this subsection, the
following definitions shall apply:
"(A) Appropriate federal banking agency.--The term
`appropriate Federal banking agency' has the same meaning as
in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
"(B) Incorporated terms.--The terms `correspondent
account', `covered financial institution', and `foreign bank'
have the same meanings as in section 5318A.
"(2) 120-hour rule.--Not later than 120 hours after
receiving a request by an appropriate Federal banking agency
for information related to anti-money laundering compliance
by a covered financial institution or a customer of such
institution, a covered financial institution shall provide to
the appropriate Federal banking agency, or make available at
a location specified by the representative of the appropriate
Federal banking agency, information and account documentation
for any account opened, maintained, administered or managed
in the United States by the covered financial institution.
"(3) Foreign bank records.--
"(A) Summons or subpoena of records.--
"(i) In general.--The Secretary or the Attorney General
may issue a summons or subpoena to any foreign bank that
maintains a correspondent account in the United States and
request records related to such correspondent account,
including records maintained outside of the United States
relating to the deposit of funds into the foreign bank.
"(ii) Service of summons or subpoena.--A summons or
subpoena referred to in clause (i) may be served on the
foreign bank in the
[[Page S10318]]
United States if the foreign bank has a representative in the
United States, or in a foreign country pursuant to any mutual
legal assistance treaty, multilateral agreement, or other
request for international law enforcement assistance.
"(B) Acceptance of service.--
"(i) Maintaining records in the united states.--Any
covered financial institution which maintains a correspondent
account in the United States for a foreign bank shall
maintain records in the United States identifying the owners
of such foreign bank and the name and address of a person who
resides in the United States and is authorized to accept
service of legal process for records regarding the
correspondent account.
"(ii) Law enforcement request.--Upon receipt of a written
request from a Federal law enforcement officer for
information required to be maintained under this paragraph,
the covered financial institution shall provide the
information to the requesting officer not later than 7 days
after receipt of the request.
"(C) Termination of correspondent relationship.--
"(i) Termination upon receipt of notice.--A covered
financial institution shall terminate any correspondent
relationship with a foreign bank not later than 10 business
days after receipt of written notice from the Secretary or
the Attorney General that the foreign bank has failed--
"(I) to comply with a summons or subpoena issued under
subparagraph (A); or
"(II) to initiate proceedings in a United States court
contesting such summons or subpoena.
"(ii) Limitation on liability.--A covered financial
institution shall not be liable to any person in any court or
arbitration proceeding for terminating a correspondent
relationship in accordance with this subsection.
"(iii) Failure to terminate relationship.--Failure to
terminate a correspondent relationship in accordance with
this subsection shall render the covered financial
institution liable for a civil penalty of up to $10,000 per
day until the correspondent relationship is so terminated.".
(c) Grace Period.--Financial institutions affected by
section 5333 of title 31 United States Code, as amended by
this title, shall have 60 days from the date of enactment of
this Act to comply with the provisions of that section.
(d) Requests for Records.--Section 3486(a)(1) of title 18,
United States Code, is amended by striking ", or (II) a
Federal offense involving the sexual exploitation or abuse of
children" and inserting ", (II) a Federal offense involving
the sexual exploitation or abuse of children, or (III) money
laundering, in violation of section 1956, 1957, or 1960 of
this title".
(e) Authority To Order Convicted Criminal To Return
Property Located Abroad.--
(1) Forfeiture of substitute property.--Section 413(p) of
the Controlled Substances Act (21 U.S.C. 853) is amended to
read as follows:
"(p) Forfeiture of Substitute Property.--
"(1) In general.--Paragraph (2) of this subsection shall
apply, if any property described in subsection (a), as a
result of any act or omission of the defendant--
"(A) cannot be located upon the exercise of due diligence;
"(B) has been transferred or sold to, or deposited with, a
third party;
"(C) has been placed beyond the jurisdiction of the court;
"(D) has been substantially diminished in value; or
"(E) has been commingled with other property which cannot
be divided without difficulty.
"(2) Substitute property.--In any case described in any of
subparagraphs (A) through (E) of paragraph (1), the court
shall order the forfeiture of any other property of the
defendant, up to the value of any property described in
subparagraphs (A) through (E) of paragraph (1), as
applicable.
"(3) Return of property to jurisdiction.--In the case of
property described in paragraph (1)(C), the court may, in
addition to any other action authorized by this subsection,
order the defendant to return the property to the
jurisdiction of the court so that the property may be seized
and forfeited.".
(2) Protective orders.--Section 413(e) of the Controlled
Substances Act (21 U.S.C. 853(e)) is amended by adding at the
end the following:
"(4) Order to repatriate and deposit.--
"(A) In general.--Pursuant to its authority to enter a
pretrial restraining order under this section, including its
authority to restrain any property forfeitable as substitute
assets, the court may order a defendant to repatriate any
property that may be seized and forfeited, and to deposit
that property pending trial in the registry of the court, or
with the United States Marshals Service or the Secretary of
the Treasury, in an interest-bearing account, if appropriate.
"(B) Failure to comply.--Failure to comply with an order
under this subsection, or an order to repatriate property
under subsection (p), shall be punishable as a civil or
criminal contempt of court, and may also result in an
enhancement of the sentence of the defendant under the
obstruction of justice provision of the Federal Sentencing
Guidelines.".
SEC. 320. PROCEEDS OF FOREIGN CRIMES.
Section 981(a)(1)(B) of title 18, United States Code, is
amended to read as follows:
"(B) Any property, real or personal, within the
jurisdiction of the United States, constituting, derived
from, or traceable to, any proceeds obtained directly or
indirectly from an offense against a foreign nation, or any
property used to facilitate such an offense, if the offense--
"(i) involves the manufacture, importation, sale, or
distribution of a controlled substance (as that term is
defined for purposes of the Controlled Substances Act), or
any other conduct described in section 1956(c)(7)(B);
"(ii) would be punishable within the jurisdiction of the
foreign nation by death or imprisonment for a term exceeding
1 year; and
"(iii) would be punishable under the laws of the United
States by imprisonment for a term exceeding 1 year, if the
act or activity constituting the offense had occurred within
the jurisdiction of the United States.".
SEC. 321. EXCLUSION OF ALIENS INVOLVED IN MONEY LAUNDERING.
Section 212(a)(2) of the Immigration and Nationality Act of
1952 (8 U.S.C. 1182(a)(2)) is amended by adding at the end
the following:
"(I) Money laundering activities.--Any alien who the
consular officer or the Attorney General knows or has reason
to believe is or has been engaged in activities which, if
engaged in within the United States would constitute a
violation of section 1956 or 1957 of title 18, United States
Code, or has been a knowing assister, abettor, conspirator,
or colluder with others in any such illicit activity is
inadmissible.".
SEC. 322. CORPORATION REPRESENTED BY A FUGITIVE.
Section 2466 of title 18, United States Code, is amended by
designating the present matter as subsection (a), and adding
at the end the following:
"(b) Subsection (a) may be applied to a claim filed by a
corporation if any majority shareholder, or individual filing
the claim on behalf of the corporation is a person to whom
subsection (a) applies.".
SEC. 323. ENFORCEMENT OF FOREIGN JUDGMENTS.
Section 2467 of title 28, United States Code, is amended--
(1) in subsection (d), by adding the following after
paragraph (2):
"(3) Preservation of property.--To preserve the
availability of property subject to a foreign forfeiture or
confiscation judgment, the Government may apply for, and the
court may issue, a restraining order pursuant to section
983(j) of title 18, United States Code, at any time before or
after an application is filed pursuant to subsection (c)(1).
The court, in issuing the restraining order--
"(A) may rely on information set forth in an affidavit
describing the nature of the proceeding investigation
underway in the foreign country, and setting forth a
reasonable basis to believe that the property to be
restrained will be named in a judgment of forfeiture at the
conclusion of such proceeding; or
"(B) may register and enforce a restraining order has been
issued by a court of competent jurisdiction in the foreign
country and certified by the Attorney General pursuant to
subsection (b)(2).
No person may object to the restraining order on any ground
that is the subject to parallel litigation involving the same
property that is pending in a foreign court.";
(2) in subsection (b)(1)(C), by striking "establishing
that the defendant received notice of the proceedings in
sufficient time to enable the defendant" and inserting
"establishing that the foreign nation took steps, in
accordance with the principles of due process, to give notice
of the proceedings to all persons with an interest in the
property in sufficient time to enable such persons";
(3) in subsection (d)(1)(D), by striking "the defendant in
the proceedings in the foreign court did not receive notice"
and inserting "the foreign nation did not take steps, in
accordance with the principles of due process, to give notice
of the proceedings to a person with an interest in the
property"; and
(4) in subsection (a)(2)(A), by inserting ", any violation
of foreign law that would constitute a violation of an
offense for which property could be forfeited under Federal
law if the offense were committed in the United States"
after "United Nations Convention".
SEC. 324. INCREASE IN CIVIL AND CRIMINAL PENALTIES FOR MONEY
LAUNDERING.
(a) Civil Penalties.--Section 5321(a) of title 31, United
States Code, is amended by adding at the end the following:
"(7) Penalties for international counter money laundering
violations.--The Secretary may impose a civil money penalty
in an amount equal to not less than 2 times the amount of the
transaction, but not more than $1,000,000, on any financial
institution or agency that violates any provision of
subsection (i) or (j) of section 5318 or any special measures
imposed under section 5318A.".
(b) Criminal Penalties.--Section 5322 of title 31, United
States Code, is amended by adding at the end the following:
"(d) A financial institution or agency that violates any
provision of subsection (i) or (j) of section 5318, or any
special measures imposed under section 5318A, or any
regulation prescribed under subsection (i) or (j) of section
5318 or section 5318A, shall be fined in an amount equal to
not less than 2 times the amount of the transaction, but not
more than $1,000,000.".
[[Page S10319]]
SEC. 325. REPORT AND RECOMMENDATION.
Not later than 30 months after the date of enactment of
this Act, the Secretary, in consultation with the Attorney
General, the Federal banking agencies (as defined at section
3 of the Federal Deposit Insurance Act), the Securities and
Exchange Commission, and such other agencies as the Secretary
may determine, at the discretion of the Secretary, shall
evaluate the operations of the provisions of this subtitle
and make recommendations to Congress as to any legislative
action with respect to this subtitle as the Secretary may
determine to be necessary or advisable.
SEC. 326. REPORT ON EFFECTIVENESS.
The Secretary shall report annually on measures taken
pursuant to this subtitle, and shall submit the report to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and to the Committee on Financial Services of the
House of Representatives.
SEC. 327. CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS.
Section 5318(h) of title 31, United States Code, as amended
by section 202 of this title, is amended by adding at the end
the following:
"(3) Concentration accounts.--The Secretary may issue
regulations under this subsection that govern maintenance of
concentration accounts by financial institutions, in order to
ensure that such accounts are not used to prevent association
of the identity of an individual customer with the movement
of funds of which the customer is the direct or beneficial
owner, which regulations shall, at a minimum--
"(A) prohibit financial institutions from allowing clients
to direct transactions that move their funds into, out of, or
through the concentration accounts of the financial
institution;
"(B) prohibit financial institutions and their employees
from informing customers of the existence of, or the means of
identifying, the concentration accounts of the institution;
and
"(C) require each financial institution to establish
written procedures governing the documentation of all
tr