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UNITING AND STRENGTHENING AMERICA BY PROVIDING APPROPRIATE TOOLS
REQUIRED TO INTERCEPT AND OBSTRUCT TERRORISM (USA PATRIOT ACT) ACT OF
2001
[[Page 115 STAT. 272]]
Public Law 107-56
107th Congress
An Act
To deter and punish terrorist acts in the United States and around the
world, to enhance law enforcement investigatory tools, and for other
purposes. <<NOTE: Oct. 26, 2001 - [H.R. 3162]>>
Be it enacted by the Senate and House of Representatives of the
United States of America <<NOTE: Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
(USA PATRIOT ACT) Act of 2001.>> in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short <<NOTE: 18 USC 1 note.>> Title.--This Act may be cited as
the ``Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of
2001''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Construction; severability.
TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
Sec. 101. Counterterrorism fund.
Sec. 102. Sense of Congress condemning discrimination against Arab and
Muslim Americans.
Sec. 103. Increased funding for the technical support center at the
Federal Bureau of Investigation.
Sec. 104. Requests for military assistance to enforce prohibition in
certain emergencies.
Sec. 105. Expansion of National Electronic Crime Task Force Initiative.
Sec. 106. Presidential authority.
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
Sec. 201. Authority to intercept wire, oral, and electronic
communications relating to terrorism.
Sec. 202. Authority to intercept wire, oral, and electronic
communications relating to computer fraud and abuse offenses.
Sec. 203. Authority to share criminal investigative information.
Sec. 204. Clarification of intelligence exceptions from limitations on
interception and disclosure of wire, oral, and electronic
communications.
Sec. 205. Employment of translators by the Federal Bureau of
Investigation.
Sec. 206. Roving surveillance authority under the Foreign Intelligence
Surveillance Act of 1978.
Sec. 207. Duration of FISA surveillance of non-United States persons who
are agents of a foreign power.
Sec. 208. Designation of judges.
Sec. 209. Seizure of voice-mail messages pursuant to warrants.
Sec. 210. Scope of subpoenas for records of electronic communications.
Sec. 211. Clarification of scope.
Sec. 212. Emergency disclosure of electronic communications to protect
life and limb.
Sec. 213. Authority for delaying notice of the execution of a warrant.
Sec. 214. Pen register and trap and trace authority under FISA.
Sec. 215. Access to records and other items under the Foreign
Intelligence Surveillance Act.
Sec. 216. Modification of authorities relating to use of pen registers
and trap and trace devices.
[[Page 115 STAT. 273]]
Sec. 217. Interception of computer trespasser communications.
Sec. 218. Foreign intelligence information.
Sec. 219. Single-jurisdiction search warrants for terrorism.
Sec. 220. Nationwide service of search warrants for electronic evidence.
Sec. 221. Trade sanctions.
Sec. 222. Assistance to law enforcement agencies.
Sec. 223. Civil liability for certain unauthorized disclosures.
Sec. 224. Sunset.
Sec. 225. Immunity for compliance with FISA wiretap.
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
Sec. 301. Short title.
Sec. 302. Findings and purposes.
Sec. 303. 4-year congressional review; expedited consideration.
Subtitle A--International Counter Money Laundering and Related Measures
Sec. 311. Special measures for jurisdictions, financial institutions, or
international transactions of primary money laundering
concern.
Sec. 312. Special due diligence for correspondent accounts and private
banking accounts.
Sec. 313. Prohibition on United States correspondent accounts with
foreign shell banks.
Sec. 314. Cooperative efforts to deter money laundering.
Sec. 315. Inclusion of foreign corruption offenses as money laundering
crimes.
Sec. 316. Anti-terrorist forfeiture protection.
Sec. 317. Long-arm jurisdiction over foreign money launderers.
Sec. 318. Laundering money through a foreign bank.
Sec. 319. Forfeiture of funds in United States interbank accounts.
Sec. 320. Proceeds of foreign crimes.
Sec. 321. Financial institutions specified in subchapter II of chapter
53 of title 31, United States code.
Sec. 322. Corporation represented by a fugitive.
Sec. 323. Enforcement of foreign judgments.
Sec. 324. Report and recommendation.
Sec. 325. Concentration accounts at financial institutions.
Sec. 326. Verification of identification.
Sec. 327. Consideration of anti-money laundering record.
Sec. 328. International cooperation on identification of originators of
wire transfers.
Sec. 329. Criminal penalties.
Sec. 330. International cooperation in investigations of money
laundering, financial crimes, and the finances of terrorist
groups.
Subtitle B--Bank Secrecy Act Amendments and Related Improvements
Sec. 351. Amendments relating to reporting of suspicious activities.
Sec. 352. Anti-money laundering programs.
Sec. 353. Penalties for violations of geographic targeting orders and
certain recordkeeping requirements, and lengthening effective
period of geographic targeting orders.
Sec. 354. Anti-money laundering strategy.
Sec. 355. Authorization to include suspicions of illegal activity in
written employment references.
Sec. 356. Reporting of suspicious activities by securities brokers and
dealers; investment company study.
Sec. 357. Special report on administration of bank secrecy provisions.
Sec. 358. Bank secrecy provisions and activities of United States
intelligence agencies to fight international terrorism.
Sec. 359. Reporting of suspicious activities by underground banking
systems.
Sec. 360. Use of authority of United States Executive Directors.
Sec. 361. Financial crimes enforcement network.
Sec. 362. Establishment of highly secure network.
Sec. 363. Increase in civil and criminal penalties for money laundering.
Sec. 364. Uniform protection authority for Federal Reserve facilities.
Sec. 365. Reports relating to coins and currency received in
nonfinancial trade or business.
Sec. 366. Efficient use of currency transaction report system.
Subtitle C--Currency Crimes and Protection
Sec. 371. Bulk cash smuggling into or out of the United States.
Sec. 372. Forfeiture in currency reporting cases.
[[Page 115 STAT. 274]]
Sec. 373. Illegal money transmitting businesses.
Sec. 374. Counterfeiting domestic currency and obligations.
Sec. 375. Counterfeiting foreign currency and obligations.
Sec. 376. Laundering the proceeds of terrorism.
Sec. 377. Extraterritorial jurisdiction.
TITLE IV--PROTECTING THE BORDER
Subtitle A--Protecting the Northern Border
Sec. 401. Ensuring adequate personnel on the northern border.
Sec. 402. Northern border personnel.
Sec. 403. Access by the Department of State and the INS to certain
identifying information in the criminal history records of
visa applicants and applicants for admission to the United
States.
Sec. 404. Limited authority to pay overtime.
Sec. 405. Report on the integrated automated fingerprint identification
system for ports of entry and overseas consular posts.
Subtitle B--Enhanced Immigration Provisions
Sec. 411. Definitions relating to terrorism.
Sec. 412. Mandatory detention of suspected terrorists; habeas corpus;
judicial review.
Sec. 413. Multilateral cooperation against terrorists.
Sec. 414. Visa integrity and security.
Sec. 415. Participation of Office of Homeland Security on Entry-Exit
Task Force.
Sec. 416. Foreign student monitoring program.
Sec. 417. Machine readable passports.
Sec. 418. Prevention of consulate shopping.
Subtitle C--Preservation of Immigration Benefits for Victims of
Terrorism
Sec. 421. Special immigrant status.
Sec. 422. Extension of filing or reentry deadlines.
Sec. 423. Humanitarian relief for certain surviving spouses and
children.
Sec. 424. ``Age-out'' protection for children.
Sec. 425. Temporary administrative relief.
Sec. 426. Evidence of death, disability, or loss of employment.
Sec. 427. No benefits to terrorists or family members of terrorists.
Sec. 428. Definitions.
TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM
Sec. 501. Attorney General's authority to pay rewards to combat
terrorism.
Sec. 502. Secretary of State's authority to pay rewards.
Sec. 503. DNA identification of terrorists and other violent offenders.
Sec. 504. Coordination with law enforcement.
Sec. 505. Miscellaneous national security authorities.
Sec. 506. Extension of Secret Service jurisdiction.
Sec. 507. Disclosure of educational records.
Sec. 508. Disclosure of information from NCES surveys.
TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS,
AND THEIR FAMILIES
Subtitle A--Aid to Families of Public Safety Officers
Sec. 611. Expedited payment for public safety officers involved in the
prevention, investigation, rescue, or recovery efforts
related to a terrorist attack.
Sec. 612. Technical correction with respect to expedited payments for
heroic public safety officers.
Sec. 613. Public safety officers benefit program payment increase.
Sec. 614. Office of Justice programs.
Subtitle B--Amendments to the Victims of Crime Act of 1984
Sec. 621. Crime victims fund.
Sec. 622. Crime victim compensation.
Sec. 623. Crime victim assistance.
Sec. 624. Victims of terrorism.
TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE
PROTECTION
Sec. 701. Expansion of regional information sharing system to facilitate
Federal-State-local law enforcement response related to
terrorist attacks.
[[Page 115 STAT. 275]]
TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM
Sec. 801. Terrorist attacks and other acts of violence against mass
transportation systems.
Sec. 802. Definition of domestic terrorism.
Sec. 803. Prohibition against harboring terrorists.
Sec. 804. Jurisdiction over crimes committed at U.S. facilities abroad.
Sec. 805. Material support for terrorism.
Sec. 806. Assets of terrorist organizations.
Sec. 807. Technical clarification relating to provision of material
support to terrorism.
Sec. 808. Definition of Federal crime of terrorism.
Sec. 809. No statute of limitation for certain terrorism offenses.
Sec. 810. Alternate maximum penalties for terrorism offenses.
Sec. 811. Penalties for terrorist conspiracies.
Sec. 812. Post-release supervision of terrorists.
Sec. 813. Inclusion of acts of terrorism as racketeering activity.
Sec. 814. Deterrence and prevention of cyberterrorism.
Sec. 815. Additional defense to civil actions relating to preserving
records in response to Government requests.
Sec. 816. Development and support of cybersecurity forensic
capabilities.
Sec. 817. Expansion of the biological weapons statute.
TITLE IX--IMPROVED INTELLIGENCE
Sec. 901. Responsibilities of Director of Central Intelligence regarding
foreign intelligence collected under Foreign Intelligence
Surveillance Act of 1978.
Sec. 902. Inclusion of international terrorist activities within scope
of foreign intelligence under National Security Act of 1947.
Sec. 903. Sense of Congress on the establishment and maintenance of
intelligence relationships to acquire information on
terrorists and terrorist organizations.
Sec. 904. Temporary authority to defer submittal to Congress of reports
on intelligence and intelligence-related matters.
Sec. 905. Disclosure to Director of Central Intelligence of foreign
intelligence-related information with respect to criminal
investigations.
Sec. 906. Foreign terrorist asset tracking center.
Sec. 907. National Virtual Translation Center.
Sec. 908. Training of government officials regarding identification and
use of foreign intelligence.
TITLE X--MISCELLANEOUS
Sec. 1001. Review of the department of justice.
Sec. 1002. Sense of congress.
Sec. 1003. Definition of ``electronic surveillance''.
Sec. 1004. Venue in money laundering cases.
Sec. 1005. First responders assistance act.
Sec. 1006. Inadmissibility of aliens engaged in money laundering.
Sec. 1007. Authorization of funds for dea police training in south and
central asia.
Sec. 1008. Feasibility study on use of biometric identifier scanning
system with access to the fbi integrated automated
fingerprint identification system at overseas consular posts
and points of entry to the United States.
Sec. 1009. Study of access.
Sec. 1010. Temporary authority to contract with local and State
governments for performance of security functions at United
States military installations.
Sec. 1011. Crimes against charitable americans.
Sec. 1012. Limitation on issuance of hazmat licenses.
Sec. 1013. Expressing the sense of the senate concerning the provision
of funding for bioterrorism preparedness and response.
Sec. 1014. Grant program for State and local domestic preparedness
support.
Sec. 1015. Expansion and reauthorization of the crime identification
technology act for antiterrorism grants to States and
localities.
Sec. 1016. Critical infrastructures protection.
SEC. 2. <<NOTE: 18 USC 1 note.>> 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
[[Page 115 STAT. 276]]
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. <<NOTE: 28 USC 524 note.>> COUNTERTERRORISM FUND.
(a) Establishment; Availability.--There is hereby established in the
Treasury of the United States a separate fund to be known as the
``Counterterrorism Fund'', amounts in which shall remain available
without fiscal year limitation--
(1) to reimburse any Department of Justice component for any
costs incurred in connection with--
(A) reestablishing the operational capability of an
office or facility that has been damaged or destroyed as
the result of any domestic or international terrorism
incident;
(B) providing support to counter, investigate, or
prosecute domestic or international terrorism,
including, without limitation, paying rewards in
connection with these activities; and
(C) conducting terrorism threat assessments of
Federal agencies and their facilities; and
(2) to reimburse any department or agency of the Federal
Government for any costs incurred in connection with detaining
in foreign countries individuals accused of acts of terrorism
that violate the laws of the United States.
(b) No Effect on Prior Appropriations.--Subsection (a) shall not be
construed to affect the amount or availability of any appropriation to
the Counterterrorism Fund made before the date of the enactment of this
Act.
SEC. 102. SENSE OF CONGRESS CONDEMNING DISCRIMINATION AGAINST ARAB AND
MUSLIM AMERICANS.
(a) Findings.--Congress makes the following findings:
(1) Arab Americans, Muslim Americans, and Americans from
South Asia play a vital role in our Nation and are entitled to
nothing less than the full rights of every American.
(2) The acts of violence that have been taken against Arab
and Muslim Americans since the September 11, 2001, attacks
against the United States should be and are condemned by all
Americans who value freedom.
(3) The concept of individual responsibility for wrongdoing
is sacrosanct in American society, and applies equally to all
religious, racial, and ethnic groups.
(4) When American citizens commit acts of violence against
those who are, or are perceived to be, of Arab or Muslim
descent, they should be punished to the full extent of the law.
(5) Muslim Americans have become so fearful of harassment
that many Muslim women are changing the way they dress to avoid
becoming targets.
(6) Many Arab Americans and Muslim Americans have acted
heroically during the attacks on the United States, including
Mohammed Salman Hamdani, a 23-year-old New Yorker of Pakistani
descent, who is believed to have gone
[[Page 115 STAT. 277]]
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. <<NOTE: 18 USC 3056 note.>> EXPANSION OF NATIONAL ELECTRONIC
CRIME TASK FORCE INITIATIVE.
The Director of the United States Secret Service shall take
appropriate actions to develop a national network of electronic crime
task forces, based on the New York Electronic Crimes Task Force model,
throughout the United States, for the purpose of preventing, detecting,
and investigating various forms of electronic crimes, including
potential terrorist attacks against critical infrastructure and
financial payment systems.
SEC. 106. PRESIDENTIAL AUTHORITY.
Section 203 of the International Emergency Powers Act (50 U.S.C.
1702) is amended--
(1) in subsection (a)(1)--
(A) at the end of subparagraph (A) (flush to that
subparagraph), by striking ``; and'' and inserting a
comma and the following:
``by any person, or with respect to any property, subject to the
jurisdiction of the United States;'';
(B) in subparagraph (B)--
(i) by inserting ``, block during the pendency
of an investigation'' after ``investigate''; and
(ii) by striking ``interest;'' and inserting
``interest by any person, or with respect to any
property, subject to the jurisdiction of the
United States; and'';
(C) by striking ``by any person, or with respect to
any property, subject to the jurisdiction of the United
States`; and
(D) by inserting at the end the following:
[[Page 115 STAT. 278]]
``(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. <<NOTE: 18 USC app.>> AUTHORITY TO SHARE CRIMINAL
INVESTIGATIVE INFORMATION.
(a) Authority To Share Grand Jury Information.--
[[Page 115 STAT. 279]]
(1) In general.--Rule 6(e)(3)(C) of the Federal Rules of
Criminal Procedure is amended to read as follows:
``(C)(i) Disclosure otherwise prohibited by this
rule of matters occurring before the grand jury may also
be made--
``(I) when so directed by a court
preliminarily to or in connection with a judicial
proceeding;
``(II) when permitted by a court at the
request of the defendant, upon a showing that
grounds may exist for a motion to dismiss the
indictment because of matters occurring before the
grand jury;
``(III) when the disclosure is made by an
attorney for the government to another Federal
grand jury;
``(IV) when permitted by a court at the
request of an attorney for the government, upon a
showing that such matters may disclose a violation
of State criminal law, to an appropriate official
of a State or subdivision of a State for the
purpose of enforcing such law; or
``(V) when the matters involve foreign
intelligence or counterintelligence (as defined in
section 3 of the National Security Act of 1947 (50
U.S.C. 401a)), or foreign intelligence information
(as defined in clause (iv) of this subparagraph),
to any Federal law enforcement, intelligence,
protective, immigration, national defense, or
national security official in order to assist the
official receiving that information in the
performance of his official duties.
``(ii) If the court orders disclosure of matters
occurring before the grand jury, the disclosure shall be
made in such manner, at such time, and under such
conditions as the court may direct.
``(iii) Any Federal official to whom information is
disclosed pursuant to clause (i)(V) of this subparagraph
may use that information only as necessary in the
conduct of that person's official duties subject to any
limitations on the unauthorized disclosure of such
information. Within a reasonable time after such
disclosure, an attorney for the government shall file
under seal a notice with the court stating the fact that
such information was disclosed and the departments,
agencies, or entities to which the disclosure was made.
``(iv) In clause (i)(V) of this subparagraph, the
term `foreign intelligence information' means--
``(I) information, whether or not concerning a
United States person, that relates to the ability
of the United States to protect against--
``(aa) actual or potential attack or
other grave hostile acts of a foreign
power or an agent of a foreign power;
``(bb) sabotage or international
terrorism by a foreign power or an agent
of a foreign power; or
``(cc) clandestine intelligence
activities by an intelligence service or
network of a foreign power or by an
agent of foreign power; or
[[Page 115 STAT. 280]]
``(II) information, whether or not concerning
a United States person, with respect to a foreign
power or foreign territory that relates to--
``(aa) the national defense or the
security of the United States; or
``(bb) the conduct of the foreign
affairs of the United States.''.
(2) Conforming amendment.--Rule 6(e)(3)(D) of the Federal
Rules of Criminal Procedure is amended by striking
``(e)(3)(C)(i)'' and inserting ``(e)(3)(C)(i)(I)''.
(b) Authority To Share Electronic, Wire, and Oral Interception
Information.--
(1) Law enforcement.--Section 2517 of title 18, United
States Code, is amended by inserting at the end the following:
``(6) Any investigative or law enforcement officer, or attorney for
the Government, who by any means authorized by this chapter, has
obtained knowledge of the contents of any wire, oral, or electronic
communication, or evidence derived therefrom, may disclose such contents
to any other Federal law enforcement, intelligence, protective,
immigration, national defense, or national security official to the
extent that such contents include foreign intelligence or
counterintelligence (as defined in section 3 of the National Security
Act of 1947 (50 U.S.C. 401a)), or foreign intelligence information (as
defined in subsection (19) of section 2510 of this title), to assist the
official who is to receive that information in the performance of his
official duties. Any Federal official who receives information pursuant
to this provision may use that information only as necessary in the
conduct of that person's official duties subject to any limitations on
the unauthorized disclosure of such information.''.
(2) Definition.--Section 2510 of title 18, United States
Code, is amended by--
(A) in paragraph (17), by striking ``and'' after the
semicolon;
(B) in paragraph (18), by striking the period and
inserting ``; and''; and
(C) by inserting at the end the following:
``(19) `foreign intelligence information' means--
``(A) information, whether or not concerning a
United States person, that relates to the ability of the
United States to protect against--
``(i) actual or potential attack or other
grave hostile acts of a foreign power or an agent
of a foreign power;
``(ii) sabotage or international terrorism by
a foreign power or an agent of a foreign power; or
``(iii) clandestine intelligence activities by
an intelligence service or network of a foreign
power or by an agent of a foreign power; or
``(B) information, whether or not concerning a
United States person, with respect to a foreign power or
foreign territory that relates to--
``(i) the national defense or the security of
the United States; or
``(ii) the conduct of the foreign affairs of
the United States.''.
(c) Procedures.--The <<NOTE: 18 USC 2517 note.>> Attorney General
shall establish procedures for the disclosure of information pursuant to
section 2517(6)
[[Page 115 STAT. 281]]
and Rule 6(e)(3)(C)(i)(V) of the Federal Rules of Criminal Procedure
that identifies a United States person, as defined in section 101 of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801)).
(d) Foreign <<NOTE: 50 USC 403-5d.>> Intelligence Information.--
(1) In general.--Notwithstanding any other provision of law,
it shall be lawful for foreign intelligence or
counterintelligence (as defined in section 3 of the National
Security Act of 1947 (50 U.S.C. 401a)) or foreign intelligence
information obtained as part of a criminal investigation to be
disclosed to any Federal law enforcement, intelligence,
protective, immigration, national defense, or national security
official in order to assist the official receiving that
information in the performance of his official duties. Any
Federal official who receives information pursuant to this
provision may use that information only as necessary in the
conduct of that person's official duties subject to any
limitations on the unauthorized disclosure of such information.
(2) Definition.--In this subsection, the term ``foreign
intelligence information'' means--
(A) information, whether or not concerning a United
States person, that relates to the ability of the United
States to protect against--
(i) actual or potential attack or other grave
hostile acts of a foreign power or an agent of a
foreign power;
(ii) sabotage or international terrorism by a
foreign power or an agent of a foreign power; or
(iii) clandestine intelligence activities by
an intelligence service or network of a foreign
power or by an agent of a foreign power; or
(B) information, whether or not concerning a United
States person, with respect to a foreign power or
foreign territory that relates to--
(i) the national defense or the security of
the United States; or
(ii) the conduct of the foreign affairs of the
United States.
SEC. 204. CLARIFICATION OF INTELLIGENCE EXCEPTIONS FROM LIMITATIONS ON
INTERCEPTION AND DISCLOSURE OF WIRE, ORAL, AND ELECTRONIC
COMMUNICATIONS.
Section 2511(2)(f) of title 18, United States Code, is amended--
(1) by striking ``this chapter or chapter 121'' and
inserting ``this chapter or chapter 121 or 206 of this title'';
and
(2) by striking ``wire and oral'' and inserting ``wire,
oral, and electronic''.
SEC. 205. <<NOTE: 28 USC 532 note.>> 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).
[[Page 115 STAT. 282]]
(c) Report.--The Attorney General shall report to the Committees on
the Judiciary of the House of Representatives and the Senate on--
(1) the number of translators employed by the FBI and other
components of the Department of Justice;
(2) any legal or practical impediments to using translators
employed by other Federal, State, or local agencies, on a full,
part-time, or shared basis; and
(3) the needs of the FBI for specific translation services
in certain languages, and recommendations for meeting those
needs.
SEC. 206. ROVING SURVEILLANCE AUTHORITY UNDER THE FOREIGN INTELLIGENCE
SURVEILLANCE ACT OF 1978.
Section 105(c)(2)(B) of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1805(c)(2)(B)) is amended by inserting ``, or in
circumstances where the Court finds that the actions of the target of
the application may have the effect of thwarting the identification of a
specified person, such other persons,'' after ``specified person''.
SEC. 207. DURATION OF FISA SURVEILLANCE OF NON-UNITED STATES PERSONS WHO
ARE AGENTS OF A FOREIGN POWER.
(a) Duration.--
(1) Surveillance.--Section 105(e)(1) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(e)(1)) is
amended by--
(A) inserting ``(A)'' after ``except that''; and
(B) inserting before the period the following: ``,
and (B) an order under this Act for a surveillance
targeted against an agent of a foreign power, as defined
in section 101(b)(1)(A) may be for the period specified
in the application or for 120 days, whichever is less''.
(2) Physical Search.--Section 304(d)(1) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1824(d)(1)) is amended by--
(A) striking ``forty-five'' and inserting ``90'';
(B) inserting ``(A)'' after ``except that''; and
(C) inserting before the period the following: ``, and (B)
an order under this section for a physical search targeted
against an agent of a foreign power as defined in section
101(b)(1)(A) may be for the period specified in the application
or for 120 days, whichever is less''.
(b) Extension.--
(1) In general.--Section 105(d)(2) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(d)(2)) is
amended by--
(A) inserting ``(A)'' after ``except that''; and
(B) inserting before the period the following: ``,
and (B) an extension of an order under this Act for a
surveillance targeted against an agent of a foreign
power as defined in section 101(b)(1)(A) may be for a
period not to exceed 1 year''.
(2) Defined term.--Section 304(d)(2) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(2) is
amended by inserting after ``not a United States person,'' the
following: ``or against an agent of a foreign power as defined
in section 101(b)(1)(A),''.
[[Page 115 STAT. 283]]
SEC. 208. DESIGNATION OF JUDGES.
Section 103(a) of the Foreign Intelligence Surveillance Act of 1978
(50 U.S.C. 1803(a)) is amended by--
(1) striking ``seven district court judges'' and inserting
``11 district court judges''; and
(2) inserting ``of whom no fewer than 3 shall reside within
20 miles of the District of Columbia'' after ``circuits''.
SEC. 209. SEIZURE OF VOICE-MAIL MESSAGES PURSUANT TO WARRANTS.
Title 18, United States Code, is amended--
(1) in section 2510--
(A) in paragraph (1), by striking beginning with
``and such'' and all that follows through
``communication''; and
(B) in paragraph (14), by inserting ``wire or''
after ``transmission of''; and
(2) in subsections (a) and (b) of section 2703--
(A) by striking ``Contents of electronic'' and
inserting ``Contents of wire or electronic'' each place
it appears;
(B) by striking ``contents of an electronic'' and
inserting ``contents of a wire or electronic'' each
place it appears; and
(C) by striking ``any electronic'' and inserting
``any wire or electronic'' each place it appears.
SEC. 210. SCOPE OF SUBPOENAS FOR RECORDS OF ELECTRONIC COMMUNICATIONS.
Section 2703(c)(2) of title 18, United States Code, as redesignated
by section 212, is amended--
(1) by striking ``entity the name, address, local and long
distance telephone toll billing records, telephone number or
other subscriber number or identity, and length of service of a
subscriber'' and inserting the following: ``entity the--
``(A) name;
``(B) address;
``(C) local and long distance telephone connection records,
or records of session times and durations;
``(D) length of service (including start date) and types of
service utilized;
``(E) telephone or instrument number or other subscriber
number or identity, including any temporarily assigned network
address; and
``(F) means and source of payment for such service
(including any credit card or bank account number),
of a subscriber''; and
(2) by striking ``and the types of services the subscriber
or customer utilized,''.
SEC. 211. CLARIFICATION OF SCOPE.
Section 631 of the Communications Act of 1934 (47 U.S.C. 551) is
amended--
(1) in subsection (c)(2)--
(A) in subparagraph (B), by striking ``or'';
(B) in subparagraph (C), by striking the period at
the end and inserting ``; or''; and
(C) by inserting at the end the following:
[[Page 115 STAT. 284]]
``(D) to a government entity as authorized under chapters
119, 121, or 206 of title 18, United States Code, except that
such disclosure shall not include records revealing cable
subscriber selection of video programming from a cable
operator.''; and
(2) in subsection (h), by striking ``A governmental entity''
and inserting ``Except as provided in subsection (c)(2)(D), a
governmental entity''.
SEC. 212. EMERGENCY DISCLOSURE OF ELECTRONIC COMMUNICATIONS TO PROTECT
LIFE AND LIMB.
(a) Disclosure of Contents.--
(1) In general.--Section 2702 of title 18, United States
Code, is amended--
(A) by striking the section heading and inserting
the following:
``Sec. 2702. Voluntary disclosure of customer communications or
records'';
(B) in subsection (a)--
(i) in paragraph (2)(A), by striking ``and''
at the end;
(ii) in paragraph (2)(B), by striking the
period and inserting ``; and''; and
(iii) by inserting after paragraph (2) the
following:
``(3) a provider of remote computing service or electronic
communication service to the public shall not knowingly divulge
a record or other information pertaining to a subscriber to or
customer of such service (not including the contents of
communications covered by paragraph (1) or (2)) to any
governmental entity.'';
(C) in subsection (b), by striking ``Exceptions.--A
person or entity'' and inserting ``Exceptions for
disclosure of communications.-- A provider described in
subsection (a)'';
(D) in subsection (b)(6)--
(i) in subparagraph (A)(ii), by striking
``or'';
(ii) in subparagraph (B), by striking the
period and inserting ``; or''; and
(iii) by adding after subparagraph (B) the
following:
``(C) if the provider reasonably believes that an
emergency involving immediate danger of death or serious
physical injury to any person requires disclosure of the
information without delay.''; and
(E) by inserting after subsection (b) the following:
``(c) Exceptions for Disclosure of Customer Records.--A provider
described in subsection (a) may divulge a record or other information
pertaining to a subscriber to or customer of such service (not including
the contents of communications covered by subsection (a)(1) or (a)(2))--
``(1) as otherwise authorized in section 2703;
``(2) with the lawful consent of the customer or subscriber;
``(3) as may be necessarily incident to the rendition of the
service or to the protection of the rights or property of the
provider of that service;
[[Page 115 STAT. 285]]
``(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--
[[Page 115 STAT. 286]]
(1) by inserting ``(a) In General.--'' before ``In
addition''; and
(2) by adding at the end the following:
``(b) Delay.--With respect to the issuance of any warrant or court
order under this section, or any other rule of law, to search for and
seize any property or material that constitutes evidence of a criminal
offense in violation of the laws of the United States, any notice
required, or that may be required, to be given may be delayed if--
``(1) the court finds reasonable cause to believe that
providing immediate notification of the execution of the warrant
may have an adverse result (as defined in section 2705);
``(2) the warrant prohibits the seizure of any tangible
property, any wire or electronic communication (as defined in
section 2510), or, except as expressly provided in chapter 121,
any stored wire or electronic information, except where the
court finds reasonable necessity for the seizure; and
``(3) the warrant provides for the giving of such notice
within a reasonable period of its execution, which period may
thereafter be extended by the court for good cause shown.''.
SEC. 214. PEN REGISTER AND TRAP AND TRACE AUTHORITY UNDER FISA.
(a) Applications and Orders.--Section 402 of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1842) is amended--
(1) in subsection (a)(1), by striking ``for any
investigation to gather foreign intelligence information or
information concerning international terrorism'' and inserting
``for any investigation to obtain foreign intelligence
information not concerning a United States person or to protect
against international terrorism or clandestine intelligence
activities, provided that such investigation of a United States
person is not conducted solely upon the basis of activities
protected by the first amendment to the Constitution'';
(2) by amending subsection (c)(2) to read as follows:
``(2) a certification by the applicant that the information
likely to be obtained is foreign intelligence information not
concerning a United States person or is relevant to an ongoing
investigation to protect against international terrorism or
clandestine intelligence activities, provided that such
investigation of a United States person is not conducted solely
upon the basis of activities protected by the first amendment to
the Constitution.'';
(3) by striking subsection (c)(3); and
(4) by amending subsection (d)(2)(A) to read as follows:
``(A) shall specify--
``(i) the identity, if known, of the person
who is the subject of the investigation;
``(ii) the identity, if known, of the person
to whom is leased or in whose name is listed the
telephone line or other facility to which the pen
register or trap and trace device is to be
attached or applied;
``(iii) the attributes of the communications
to which the order applies, such as the number or
other identifier, and, if known, the location of
the telephone line or other facility to which the
pen register or trap and trace device is to be
attached or applied and,
[[Page 115 STAT. 287]]
in the case of a trap and trace device, the
geographic limits of the trap and trace order.''.
(b) Authorization During Emergencies.--Section 403 of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1843) is amended--
(1) in subsection (a), by striking ``foreign intelligence
information or information concerning international terrorism''
and inserting ``foreign intelligence information not concerning
a United States person or information to protect against
international terrorism or clandestine intelligence activities,
provided that such investigation of a United States person is
not conducted solely upon the basis of activities protected by
the first amendment to the Constitution''; and
(2) in subsection (b)(1), by striking ``foreign intelligence
information or information concerning international terrorism''
and inserting ``foreign intelligence information not concerning
a United States person or information to protect against
international terrorism or clandestine intelligence activities,
provided that such investigation of a United States person is
not conducted solely upon the basis of activities protected by
the first amendment to the Constitution''.
SEC. 215. ACCESS TO RECORDS AND OTHER ITEMS UNDER THE FOREIGN
INTELLIGENCE SURVEILLANCE ACT.
Title V of the Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1861 et seq.) is amended by striking sections 501 through 503 and
inserting the following:
``SEC. 501. <<NOTE: 50 USC 1861.>> 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
[[Page 115 STAT. 288]]
``(2) shall specify that the records concerned are sought
for an authorized investigation conducted in accordance with
subsection (a)(2) to obtain foreign intelligence information not
concerning a United States person or 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. <<NOTE: 50 USC 1862.>> 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
[[Page 115 STAT. 289]]
has certified to the court that the information likely to be
obtained by such installation and use is relevant to an ongoing
criminal investigation. The order, upon service of that order,
shall apply to any person or entity providing wire or electronic
communication service in the United States whose assistance may
facilitate the execution of the order. Whenever such an order is
served on any person or entity not specifically named in the
order, upon request of such person or entity, the attorney for
the Government or law enforcement or investigative officer that
is serving the order shall provide written or electronic
certification that the order applies to the person or entity
being served.
``(2) State investigative or law enforcement officer.--Upon
an application made under section 3122(a)(2), the court shall
enter an ex parte order authorizing the installation and use of
a pen register or trap and trace device within the jurisdiction
of the court, if the court finds that the State law enforcement
or investigative officer has certified to the court that the
information likely to be obtained by such installation and use
is relevant to an ongoing criminal investigation.
``(3)(A) Where the law enforcement agency implementing an ex
parte order under this subsection seeks to do so by installing
and using its own pen register or trap and trace device on a
packet-switched data network of a provider of electronic
communication service to the public, the agency shall ensure
that a record will be maintained which will identify--
``(i) any officer or officers who installed the
device and any officer or officers who accessed the
device to obtain information from the network;
``(ii) the date and time the device was installed,
the date and time the device was uninstalled, and the
date, time, and duration of each time the device is
accessed to obtain information;
``(iii) the configuration of the device at the time
of its installation and any subsequent modification
thereof; and
``(iv) any information which has been collected by
the device.
To the extent that the pen register or trap and trace device can
be set automatically to record this information electronically,
the record shall be maintained electronically throughout the
installation and use of such device.
``(B) The record maintained under subparagraph (A) shall be
provided ex parte and under seal to the court which entered the
ex parte order authorizing the installation and use of the
device within 30 days after termination of the order (including
any extensions thereof).''.
(2) Contents of order.--Section 3123(b)(1) of title 18,
United States Code, is amended--
(A) in subparagraph (A)--
(i) by inserting ``or other facility'' after
``telephone line''; and
(ii) by inserting before the semicolon at the
end ``or applied''; and
(B) by striking subparagraph (C) and inserting the
following:
[[Page 115 STAT. 290]]
``(C) the attributes of the communications to which
the order applies, including the number or other
identifier and, if known, the location of the telephone
line or other facility to which the pen register or trap
and trace device is to be attached or applied, and, in
the case of an order authorizing installation and use of
a trap and trace device under subsection (a)(2), the
geographic limits of the order; and''.
(3) Nondisclosure requirements.--Section 3123(d)(2) of title
18, United States Code, is amended--
(A) by inserting ``or other facility'' after ``the
line''; and
(B) by striking ``, or who has been ordered by the
court'' and inserting ``or applied, or who is obligated
by the order''.
(c) Definitions.--
(1) Court of competent jurisdiction.--Section 3127(2) of
title 18, United States Code, is amended by striking
subparagraph (A) and inserting the following:
``(A) any district court of the United States
(including a magistrate judge of such a court) or any
United States court of appeals having jurisdiction over
the offense being investigated; or''.
(2) Pen register.--Section 3127(3) of title 18, United
States Code, is amended--
(A) by striking ``electronic or other impulses'' and
all that follows through ``is attached'' and inserting
``dialing, routing, addressing, or signaling information
transmitted by an instrument or facility from which a
wire or electronic communication is transmitted,
provided, however, that such information shall not
include the contents of any communication''; and
(B) by inserting ``or process'' after ``device''
each place it appears.
(3) Trap and trace device.--Section 3127(4) of title 18,
United States Code, is amended--
(A) by striking ``of an instrument'' and all that
follows through the semicolon and inserting ``or other
dialing, routing, addressing, and signaling information
reasonably likely to identify the source of a wire or
electronic communication, provided, however, that such
information shall not include the contents of any
communication;''; and
(B) by inserting ``or process'' after ``a device''.
(4) Conforming amendment.--Section 3127(1) of title 18,
United States Code, is amended--
(A) by striking ``and''; and
(B) by inserting ``, and `contents' '' after
``electronic communication service''.
(5) Technical amendment.--Section 3124(d) of title 18,
United States Code, is amended by striking ``the terms of''.
(6) Conforming amendment.--Section 3124(b) of title 18,
United States Code, is amended by inserting ``or other
facility'' after ``the appropriate line''.
SEC. 217. INTERCEPTION OF COMPUTER TRESPASSER COMMUNICATIONS.
Chapter 119 of title 18, United States Code, is amended--
[[Page 115 STAT. 291]]
(1) in section 2510--
(A) in paragraph (18), by striking ``and'' at the
end;
(B) in paragraph (19), by striking the period and
inserting a semicolon; and
(C) by inserting after paragraph (19) the following:
``(20) `protected computer' has the meaning set forth in
section 1030; and
``(21) `computer trespasser'--
``(A) means a person who accesses a protected
computer without authorization and thus has no
reasonable expectation of privacy in any communication
transmitted to, through, or from the protected computer;
and
``(B) does not include a person known by the owner
or operator of the protected computer to have an
existing contractual relationship with the owner or
operator of the protected computer for access to all or
part of the protected computer.''; and
(2) in section 2511(2), by inserting at the end the
following:
``(i) It shall not be unlawful under this chapter for a person
acting under color of law to intercept the wire or electronic
communications of a computer trespasser transmitted to, through, or from
the protected computer, if--
``(I) the owner or operator of the protected computer
authorizes the interception of the computer trespasser's
communications on the protected computer;
``(II) the person acting under color of law is lawfully
engaged in an investigation;
``(III) the person acting under color of law has reasonable
grounds to believe that the contents of the computer
trespasser's communications will be relevant to the
investigation; and
``(IV) such interception does not acquire communications
other than those transmitted to or from the computer
trespasser.''.
SEC. 218. FOREIGN INTELLIGENCE INFORMATION.
Sections 104(a)(7)(B) and section 303(a)(7)(B) (50 U.S.C.
1804(a)(7)(B) and 1823(a)(7)(B)) of the Foreign Intelligence
Surveillance Act of 1978 are each amended by striking ``the purpose''
and inserting ``a significant purpose''.
SEC. 219. <<NOTE: 18 USC app.>> SINGLE-JURISDICTION SEARCH WARRANTS FOR
TERRORISM.
Rule 41(a) of the Federal Rules of Criminal Procedure is amended by
inserting after ``executed'' the following: ``and (3) in an
investigation of domestic terrorism or international terrorism (as
defined in section 2331 of title 18, United States Code), by a Federal
magistrate judge in any district in which activities related to the
terrorism may have occurred, for a search of property or for a person
within or outside the district''.
SEC. 220. NATIONWIDE SERVICE OF SEARCH WARRANTS FOR ELECTRONIC EVIDENCE.
(a) In General.--Chapter 121 of title 18, United States Code, is
amended--
(1) in section 2703, by striking ``under the Federal Rules
of Criminal Procedure'' every place it appears and inserting
``using the procedures described in the Federal Rules of
[[Page 115 STAT. 292]]
Criminal Procedure by a court with jurisdiction over the offense
under investigation''; and
(2) in section 2711--
(A) in paragraph (1), by striking ``and'';
(B) in paragraph (2), by striking the period and
inserting ``; and''; and
(C) by inserting at the end the following:
``(3) the term `court of competent jurisdiction' has the
meaning assigned by section 3127, and includes any Federal court
within that definition, without geographic limitation.''.
(b) Conforming Amendment.--Section 2703(d) of title 18, United
States Code, is amended by striking ``described in section 3127(2)(A)''.
SEC. 221. TRADE SANCTIONS.
(a) In general.--The Trade Sanctions Reform and Export Enhancement
Act of 2000 (Public Law 106-387; 114 Stat. 1549A-67) is amended--
(1) by amending section 904(2)(C) to read as follows:
``(C) used to facilitate the design, development, or
production of chemical or biological weapons, missiles,
or weapons of mass destruction.'';
(2) in section 906(a)(1)--
(A) by inserting ``, the Taliban or the territory of
Afghanistan controlled by the Taliban,'' after ``Cuba'';
and
(B) by inserting ``, or in the territory of
Afghanistan controlled by the Taliban,'' after ``within
such country''; and
(3) in section 906(a)(2), by inserting ``, or to any other
entity in Syria or North Korea'' after ``Korea''.
(b) Application <<NOTE: 22 USC 7210.>> 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 No. 12947 of January 23, 1995, as
amended;
(2) a Foreign Terrorist Organization pursuant to the
Antiterrorism and Effective Death Penalty Act of 1996 (Public
Law 104-132);
(3) a foreign organization, group, or person designated
pursuant to Executive Order No. 13224 (September 23, 2001);
(4) any narcotics trafficking entity designated pursuant to
Executive Order No. 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. <<NOTE: 18 USC 3124 note.>> ASSISTANCE TO LAW ENFORCEMENT
AGENCIES.
Nothing in this Act shall impose any additional technical obligation
or requirement on a provider of a wire or electronic communication
service or other person to furnish facilities or technical assistance. A
provider of a wire or electronic communication service,
[[Page 115 STAT. 293]]
landlord, custodian, or other person who furnishes facilities or
technical assistance pursuant to section 216 shall be reasonably
compensated for such reasonable expenditures incurred in providing such
facilities or assistance.
SEC. 223. CIVIL LIABILITY FOR CERTAIN UNAUTHORIZED DISCLOSURES.
(a) Section 2520 of title 18, United States Code, is amended--
(1) in subsection (a), after ``entity'', by inserting ``,
other than the United States,'';
(2) by adding at the end the following:
``(f) Administrative Discipline.--If a court or appropriate
department or agency determines that the United States or any of its
departments or agencies has violated any provision of this chapter, and
the court or appropriate department or agency finds that the
circumstances surrounding the violation raise serious questions about
whether or not an officer or employee of the United States acted
willfully or intentionally with respect to the violation, the department
or agency shall, upon receipt of a true and correct copy of the decision
and findings of the court or appropriate department or agency promptly
initiate a proceeding to determine whether disciplinary action against
the officer or employee is warranted. If the head of the department or
agency involved determines that disciplinary action is not warranted, he
or she shall notify the Inspector General with jurisdiction over the
department or agency concerned and shall provide the Inspector General
with the reasons for such determination.''; and
(3) by adding a new subsection (g), as follows:
``(g) Improper Disclosure Is Violation.--Any willful disclosure or
use by an investigative or law enforcement officer or governmental
entity of information beyond the extent permitted by section 2517 is a
violation of this chapter for purposes of section 2520(a).''.
(b) Section 2707 of title 18, United States Code, is amended--
(1) in subsection (a), after ``entity'', by inserting ``,
other than the United States,'';
(2) by striking subsection (d) and inserting the following:
``(d) Administrative Discipline.--If a court or appropriate
department or agency determines that the United States or any of its
departments or agencies has violated any provision of this chapter, and
the court or appropriate department or agency finds that the
circumstances surrounding the violation raise serious questions about
whether or not an officer or employee of the United States acted
willfully or intentionally with respect to the violation, the department
or agency shall, upon receipt of a true and correct copy of the decision
and findings of the court or appropriate department or agency promptly
initiate a proceeding to determine whether disciplinary action against
the officer or employee is warranted. If the head of the department or
agency involved determines that disciplinary action is not warranted, he
or she shall notify the Inspector General with jurisdiction over the
department or agency concerned and shall provide the Inspector General
with the reasons for such determination.''; and
(3) by adding a new subsection (g), as follows:
``(g) Improper Disclosure.--Any willful disclosure of a `record', as
that term is defined in section 552a(a) of title 5, United States Code,
obtained by an investigative or law enforcement officer, or a
governmental entity, pursuant to section 2703 of this title, or
[[Page 115 STAT. 294]]
from a device installed pursuant to section 3123 or 3125 of this title,
that is not a disclosure made in the proper performance of the official
functions of the officer or governmental entity making the disclosure,
is a violation of this chapter. This provision shall not apply to
information previously lawfully disclosed (prior to the commencement of
any civil or administrative proceeding under this chapter) to the public
by a Federal, State, or local governmental entity or by the plaintiff in
a civil action under this chapter.''.
(c)(1) Chapter 121 of title 18, United States Code, is amended by
adding at the end the following:
``Sec. 2712. Civil actions against the United States
``(a) In General.--Any person who is aggrieved by any willful
violation of this chapter or of chapter 119 of this title or of sections
106(a), 305(a), or 405(a) of the Foreign Intelligence Surveillance Act
of 1978 (50 U.S.C. 1801 et seq.) may commence an action in United States
District Court against the United States to recover money damages. In
any such action, if a person who is aggrieved successfully establishes
such a violation of this chapter or of chapter 119 of this title or of
the above specific provisions of title 50, the Court may assess as
damages--
``(1) actual damages, but not less than $10,000, whichever
amount is greater; and
``(2) litigation costs, reasonably incurred.
``(b) Procedures.--(1) Any action against the United States under
this section may be commenced only after a claim is presented to the
appropriate department or agency under the procedures of the Federal
Tort Claims Act, as set forth in title 28, United States Code.
``(2) Any action against the United States under this section shall
be forever barred unless it is presented in writing to the appropriate
Federal agency within 2 years after such claim accrues or unless action
is begun within 6 months after the date of mailing, by certified or
registered mail, of notice of final denial of the claim by the agency to
which it was presented. The claim shall accrue on the date upon which
the claimant first has a reasonable opportunity to discover the
violation.
``(3) Any action under this section shall be tried to the court
without a jury.
``(4) Notwithstanding any other provision of law, the procedures set
forth in section 106(f), 305(g), or 405(f) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) shall be the exclusive
means by which materials governed by those sections may be reviewed.
``(5) An amount equal to any award against the United States under
this section shall be reimbursed by the department or agency concerned
to the fund described in section 1304 of title 31, United States Code,
out of any appropriation, fund, or other account (excluding any part of
such appropriation, fund, or account that is available for the
enforcement of any Federal law) that is available for the operating
expenses of the department or agency concerned.
``(c) Administrative Discipline.--If a court or appropriate
department or agency determines that the United States or any of its
departments or agencies has violated any provision of this chapter, and
the court or appropriate department or agency finds that the
circumstances surrounding the violation raise serious questions about
whether or not an officer or employee of the United
[[Page 115 STAT. 295]]
States acted willfully or intentionally with respect to the violation,
the department or agency shall, upon receipt of a true and correct copy
of the decision and findings of the court or appropriate department or
agency promptly initiate a proceeding to determine whether disciplinary
action against the officer or employee is warranted. If the head of the
department or agency involved determines that disciplinary action is not
warranted, he or she shall notify the Inspector General with
jurisdiction over the department or agency concerned and shall provide
the Inspector General with the reasons for such determination.
``(d) Exclusive Remedy.--Any action against the United States under
this subsection shall be the exclusive remedy against the United States
for any claims within the purview of this section.
``(e) Stay of Proceedings.--(1) Upon the motion of the United
States, the court shall stay any action commenced under this section if
the court determines that civil discovery will adversely affect the
ability of the Government to conduct a related investigation or the
prosecution of a related criminal case. Such a stay shall toll the
limitations periods of paragraph (2) of subsection (b).
``(2) In this subsection, the terms `related criminal case' and
`related investigation' mean an actual prosecution or investigation in
progress at the time at which the request for the stay or any subsequent
motion to lift the stay is made. In determining whether an investigation
or a criminal case is related to an action commenced under this section,
the court shall consider the degree of similarity between the parties,
witnesses, facts, and circumstances involved in the 2 proceedings,
without requiring that any one or more factors be identical.
``(3) In requesting a stay under paragraph (1), the Government may,
in appropriate cases, submit evidence ex parte in order to avoid
disclosing any matter that may adversely affect a related investigation
or a related criminal case. If the Government makes such an ex parte
submission, the plaintiff shall be given an opportunity to make a
submission to the court, not ex parte, and the court may, in its
discretion, request further information from either party.''.
(2) The table of sections at the beginning of chapter 121 is amended
to read as follows:
``2712. Civil action against the United States.''.
SEC. 224. <<NOTE: 18 USC 2510 note.>> SUNSET.
(a) In General.--Except as provided in subsection (b), this title
and the amendments made by this title (other than sections 203(a),
203(c), 205, 208, 210, 211, 213, 216, 219, 221, and 222, and the
amendments made by those sections) shall cease to have effect on
December 31, 2005.
(b) Exception.--With respect to any particular foreign intelligence
investigation that began before the date on which the provisions
referred to in subsection (a) cease to have effect, or with respect to
any particular offense or potential offense that began or occurred
before the date on which such provisions cease to have effect, such
provisions shall continue in effect.
SEC. 225. IMMUNITY FOR COMPLIANCE WITH FISA WIRETAP.
Section 105 of the Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1805) is amended by inserting after subsection (g) the following:
[[Page 115 STAT. 296]]
``(h) No cause of action shall lie in any court against any provider
of a wire or electronic communication service, landlord, custodian, or
other person (including any officer, employee, agent, or other specified
person thereof) that furnishes any information, facilities, or technical
assistance in accordance with a court order or request for emergency
assistance under this Act.''.
TITLE <<NOTE: International Money Laundering Abatement and Financial
Anti-Terrorism Act of 2001.>> III--INTERNATIONAL MONEY LAUNDERING
ABATEMENT AND ANTI-TERRORIST FINANCING ACT OF 2001
SEC. 301. <<NOTE: 31 USC 5301 note.>> SHORT TITLE.
This title may be cited as the ``International Money Laundering
Abatement and Financial Anti-Terrorism Act of 2001''.
SEC. 302. <<NOTE: 31 USC 5311 note.>> FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) money laundering, estimated by the International
Monetary Fund to amount to between 2 and 5 percent of global
gross domestic product, which is at least $600,000,000,000
annually, provides the financial fuel that permits transnational
criminal enterprises to conduct and expand their operations to
the detriment of the safety and security of American citizens;
(2) money laundering, and the defects in financial
transparency on which money launderers rely, are critical to the
financing of global terrorism and the provision of funds for
terrorist attacks;
(3) money launderers subvert legitimate financial mechanisms
and banking relationships by using them as protective covering
for the movement of criminal proceeds and the financing of crime
and terrorism, and, by so doing, can threaten the safety of
United States citizens and undermine the integrity of United
States financial institutions and of the global financial and
trading systems upon which prosperity and growth depend;
(4) certain jurisdictions outside of the United States that
offer ``offshore'' banking and related facilities designed to
provide anonymity, coupled with weak financial supervisory and
enforcement regimes, provide essential tools to disguise
ownership and movement of criminal funds, derived from, or used
to commit, offenses ranging from narcotics trafficking,
terrorism, arms smuggling, and trafficking in human beings, to
financial frauds that prey on law-abiding citizens;
(5) transactions involving such offshore jurisdictions make
it difficult for law enforcement officials and regulators to
follow the trail of money earned by criminals, organized
international criminal enterprises, and global terrorist
organizations;
(6) correspondent banking facilities are one of the banking
mechanisms susceptible in some circumstances to manipulation by
foreign banks to permit the laundering of funds by hiding the
identity of real parties in interest to financial transactions;
(7) private banking services can be susceptible to
manipulation by money launderers, for example corrupt foreign
government officials, particularly if those services include the
creation of offshore accounts and facilities for large personal
funds transfers to channel funds into accounts around the globe;
[[Page 115 STAT. 297]]
(8) United States anti-money laundering efforts are impeded
by outmoded and inadequate statutory provisions that make
investigations, prosecutions, and forfeitures more difficult,
particularly in cases in which money laundering involves foreign
persons, foreign banks, or foreign countries;
(9) the ability to mount effective counter-measures to
international money launderers requires national, as well as
bilateral and multilateral action, using tools specially
designed for that effort; and
(10) the Basle Committee on Banking Regulation and
Supervisory Practices and the Financial Action Task Force on
Money Laundering, of both of which the United States is a
member, have each adopted international anti-money laundering
principles and recommendations.
(b) Purposes.--The purposes of this title are--
(1) to increase the strength of United States measures to
prevent, detect, and prosecute international money laundering
and the financing of terrorism;
(2) to ensure that--
(A) banking transactions and financial relationships
and the conduct of such transactions and relationships,
do not contravene the purposes of subchapter II of
chapter 53 of title 31, United States Code, section 21
of the Federal Deposit Insurance Act, or chapter 2 of
title I of Public Law 91-508 (84 Stat. 1116), or
facilitate the evasion of any such provision; and
(B) the purposes of such provisions of law continue
to be fulfilled, and such provisions of law are
effectively and efficiently administered;
(3) to strengthen the provisions put into place by the Money
Laundering Control Act of 1986 (18 U.S.C. 981 note), especially
with respect to crimes by non-United States nationals and
foreign financial institutions;
(4) to provide a clear national mandate for subjecting to
special scrutiny those foreign jurisdictions, financial
institutions operating outside of the United States, and classes
of international transactions or types of accounts that pose
particular, identifiable opportunities for criminal abuse;
(5) to provide the Secretary of the Treasury (in this title
referred to as the ``Secretary'') with broad discretion, subject
to the safeguards provided by the Administrative Procedure Act
under title 5, United States Code, to take measures tailored to
the particular money laundering problems presented by specific
foreign jurisdictions, financial institutions operating outside
of the United States, and classes of international transactions
or types of accounts;
(6) to ensure that the employment of such measures by the
Secretary permits appropriate opportunity for comment by
affected financial institutions;
(7) to provide guidance to domestic financial institutions
on particular foreign jurisdictions, financial institutions
operating outside of the United States, and classes of
international transactions that are of primary money laundering
concern to the United States Government;
(8) to ensure that the forfeiture of any assets in
connection with the anti-terrorist efforts of the United States
permits
[[Page 115 STAT. 298]]
for adequate challenge consistent with providing due process
rights;
(9) to clarify the terms of the safe harbor from civil
liability for filing suspicious activity reports;
(10) to strengthen the authority of the Secretary to issue
and administer geographic targeting orders, and to clarify that
violations of such orders or any other requirement imposed under
the authority contained in chapter 2 of title I of Public Law
91-508 and subchapters II and III of chapter 53 of title 31,
United States Code, may result in criminal and civil penalties;
(11) to ensure that all appropriate elements of the
financial services industry are subject to appropriate
requirements to report potential money laundering transactions
to proper authorities, and that jurisdictional disputes do not
hinder examination of compliance by financial institutions with
relevant reporting requirements;
(12) to strengthen the ability of financial institutions to
maintain the integrity of their employee population; and
(13) to strengthen measures to prevent the use of the United
States financial system for personal gain by corrupt foreign
officials and to facilitate the repatriation of any stolen
assets to the citizens of countries to whom such assets belong.
SEC. 303. <<NOTE: 31 USC 5311 note.>> 4-YEAR CONGRESSIONAL REVIEW;
EXPEDITED CONSIDERATION.
(a) In General.--Effective <<NOTE: Effective date.>> on and after
the first day of fiscal year 2005, the provisions of this title and the
amendments made by this title shall terminate if the Congress enacts a
joint resolution, the text after the resolving clause of which is as
follows: ``That provisions of the International Money Laundering
Abatement and Anti-Terrorist Financing Act of 2001, and the amendments
made thereby, shall no longer have the force of law.''.
(b) Expedited Consideration.--Any joint resolution submitted
pursuant to this section should be considered by the Congress
expeditiously. In particular, it shall be considered in the Senate in
accordance with the provisions of section 601(b) of the International
Security Assistance and Arms Control Act of 1976.
Subtitle A--International Counter Money Laundering and Related Measures
SEC. 311. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL INSTITUTIONS, OR
INTERNATIONAL TRANSACTIONS OF PRIMARY MONEY LAUNDERING
CONCERN.
(a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, is amended by inserting after section 5318 the following
new section:
``Sec. 5318A. Special measures for jurisdictions, financial
institutions, or international transactions of
primary money laundering concern
``(a) International Counter-Money Laundering Requirements.--
``(1) In general.--The Secretary of the Treasury may require
domestic financial institutions and domestic financial
[[Page 115 STAT. 299]]
agencies to take 1 or more of the special measures described in
subsection (b) if the Secretary finds that reasonable grounds
exist for concluding that a jurisdiction outside of the United
States, 1 or more financial institutions operating outside of
the United States, 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States, or 1 or
more types of accounts is of primary money laundering concern,
in accordance with subsection (c).
``(2) Form of requirement.--The special measures described
in--
``(A) subsection (b) may be imposed in such sequence
or combination as the Secretary shall determine;
``(B) paragraphs (1) through (4) of subsection (b)
may be imposed by regulation, order, or otherwise as
permitted by law; and
``(C) subsection (b)(5) may be imposed only by
regulation.
``(3) Duration of orders; rulemaking.--Any order by which a
special measure described in paragraphs (1) through (4) of
subsection (b) is imposed (other than an order described in
section 5326)--
``(A) shall be issued together with a notice of
proposed rulemaking relating to the imposition of such
special measure; and
``(B) may not remain in effect for more than 120
days, except pursuant to a rule promulgated on or before
the end of the 120-day period beginning on the date of
issuance of such order.
``(4) Process for selecting special measures.--In selecting
which special measure or measures to take under this subsection,
the Secretary of the Treasury--
``(A) shall consult with the Chairman of the Board
of Governors of the Federal Reserve System, any other
appropriate Federal banking agency, as defined in
section 3 of the Federal Deposit Insurance Act, the
Secretary of State, the Securities and Exchange
Commission, the Commodity Futures Trading Commission,
the National Credit Union Administration Board, and in
the sole discretion of the Secretary, such other
agencies and interested parties as the Secretary may
find to be appropriate; and
``(B) shall consider--
``(i) whether similar action has been or is
being taken by other nations or multilateral
groups;
``(ii) whether the imposition of any
particular special measure would create a
significant competitive disadvantage, including
any undue cost or burden associated with
compliance, for financial institutions organized
or licensed in the United States;
``(iii) the extent to which the action or the
timing of the action would have a significant
adverse systemic impact on the international
payment, clearance, and settlement system, or on
legitimate business activities involving the
particular jurisdiction, institution, or class of
transactions; and
``(iv) the effect of the action on United
States national security and foreign policy.
[[Page 115 STAT. 300]]
``(5) No limitation on other authority.--This section shall
not be construed as superseding or otherwise restricting any
other authority granted to the Secretary, or to any other
agency, by this subchapter or otherwise.
``(b) Special Measures.--The special measures referred to in
subsection (a), with respect to a jurisdiction outside of the United
States, financial institution operating outside of the United States,
class of transaction within, or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts are as follows:
``(1) Recordkeeping and reporting of certain financial
transactions.--
``(A) In general.--The Secretary of the Treasury may
require any domestic financial institution or domestic
financial agency to maintain records, file reports, or
both, concerning the aggregate amount of transactions,
or concerning each transaction, with respect to a
jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United
States, 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States,
or 1 or more types of accounts if the Secretary finds
any such jurisdiction, institution, or class of
transactions to be of primary money laundering concern.
``(B) Form of records and reports.--Such records and
reports shall be made and retained at such time, in such
manner, and for such period of time, as the Secretary
shall determine, and shall include such information as
the Secretary may determine, including--
``(i) the identity and address of the
participants in a transaction or relationship,
including the identity of the originator of any
funds transfer;
``(ii) the legal capacity in which a
participant in any transaction is acting;
``(iii) the identity of the beneficial owner
of the funds involved in any transaction, in
accordance with such procedures as the Secretary
determines to be reasonable and practicable to
obtain and retain the information; and
``(iv) a description of any transaction.
``(2) Information relating to beneficial ownership.--In
addition to any other requirement under any other provision of
law, the Secretary may require any domestic financial
institution or domestic financial agency to take such steps as
the Secretary may determine to be reasonable and practicable to
obtain and retain information concerning the beneficial
ownership of any account opened or maintained in the United
States by a foreign person (other than a foreign entity whose
shares are subject to public reporting requirements or are
listed and traded on a regulated exchange or trading market), or
a representative of such a foreign person, that involves a
jurisdiction outside of the United States, 1 or more financial
institutions operating outside of the United States, 1 or more
classes of transactions within, or involving, a jurisdiction
outside of the United States, or 1 or more types of accounts if
the Secretary finds any such jurisdiction, institution, or
transaction or type of account to be of primary money laundering
concern.
[[Page 115 STAT. 301]]
``(3) Information relating to certain payable-through
accounts.--If the Secretary finds a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of the
United States to be of primary money laundering concern, the
Secretary may require any domestic financial institution or
domestic financial agency that opens or maintains a payable-
through account in the United States for a foreign financial
institution involving any such jurisdiction or any such
financial institution operating outside of the United States, or
a payable through account through which any such transaction may
be conducted, as a condition of opening or maintaining such
account--
``(A) to identify each customer (and representative
of such customer) of such financial institution who is
permitted to use, or whose transactions are routed
through, such payable-through account; and
``(B) to obtain, with respect to each such customer
(and each such representative), information that is
substantially comparable to that which the depository
institution obtains in the ordinary course of business
with respect to its customers residing in the United
States.
``(4) Information relating to certain correspondent
accounts.--If the Secretary finds a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of the
United States to be of primary money laundering concern, the
Secretary may require any domestic financial institution or
domestic financial agency that opens or maintains a
correspondent account in the United States for a foreign
financial institution involving any such jurisdiction or any
such financial institution operating outside of the United
States, or a correspondent account through which any such
transaction may be conducted, as a condition of opening or
maintaining such account--
``(A) to identify each customer (and representative
of such customer) of any such financial institution who
is permitted to use, or whose transactions are routed
through, such correspondent account; and
``(B) to obtain, with respect to each such customer
(and each such representative), information that is
substantially comparable to that which the depository
institution obtains in the ordinary course of business
with respect to its customers residing in the United
States.
``(5) Prohibitions or conditions on opening or maintaining
certain correspondent or payable-through accounts.--If the
Secretary finds a jurisdiction outside of the United States, 1
or more financial institutions operating outside of the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States to be of
primary money laundering concern, the Secretary, in consultation
with the Secretary of State, the Attorney General, and the
Chairman of the Board of Governors of the Federal Reserve
System, may prohibit, or impose conditions upon, the opening or
maintaining in the United States of a correspondent account or
payable- through account by any domestic financial institution
or domestic financial agency for or on behalf of
[[Page 115 STAT. 302]]
a foreign banking institution, if such correspondent account or
payable-through account involves any such jurisdiction or
institution, or if any such transaction may be conducted through
such correspondent account or payable-through account.
``(c) Consultations and Information To Be Considered in Finding
Jurisdictions, Institutions, Types of Accounts, or Transactions To Be of
Primary Money Laundering Concern.--
``(1) In general.--In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of transactions
within, or involving, a jurisdiction outside of the United
States, or 1 or more types of accounts is of primary money
laundering concern so as to authorize the Secretary of the
Treasury to take 1 or more of the special measures described in
subsection (b), the Secretary shall consult with the Secretary
of State and the Attorney General.
``(2) Additional considerations.--In making a finding
described in paragraph (1), the Secretary shall consider in
addition such information as the Secretary determines to be
relevant, including the following potentially relevant factors:
``(A) Jurisdictional factors.--In the case of a
particular jurisdiction--
``(i) evidence that organized criminal groups,
international terrorists, or both, have transacted
business in that jurisdiction;
``(ii) the extent to which that jurisdiction
or financial institutions operating in that
jurisdiction offer bank secrecy or special
regulatory advantages to nonresidents or
nondomiciliaries of that jurisdiction;
``(iii) the substance and quality of
administration of the bank supervisory and
counter-money laundering laws of that
jurisdiction;
``(iv) the relationship between the volume of
financial transactions occurring in that
jurisdiction and the size of the economy of the
jurisdiction;
``(v) the extent to which that jurisdiction is
characterized as an offshore banking or secrecy
haven by credible international organizations or
multilateral expert groups;
``(vi) whether the United States has a mutual
legal assistance treaty with that jurisdiction,
and the experience of United States law
enforcement officials and regulatory officials in
obtaining information about transactions
originating in or routed through or to such
jurisdiction; and
``(vii) the extent to which that jurisdiction
is characterized by high levels of official or
institutional corruption.
``(B) Institutional factors.--In the case of a
decision to apply 1 or more of the special measures
described in subsection (b) only to a financial
institution or institutions, or to a transaction or
class of transactions, or to a type of account, or to
all 3, within or involving a particular jurisdiction--
``(i) the extent to which such financial
institutions, transactions, or types of accounts
are used to facilitate
[[Page 115 STAT. 303]]
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 <<NOTE: Deadline.>> than 10 days after the date of any action
taken by the Secretary of the Treasury under subsection (a)(1), the
Secretary shall notify, in writing, the Committee on Financial Services
of the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate of any such action.
``(e) Definitions.--Notwithstanding any other provision of this
subchapter, for purposes of this section and subsections (i) and (j) of
section 5318, the following definitions shall apply:
``(1) Bank definitions.--The following definitions shall
apply with respect to a bank:
``(A) Account.--The term `account'--
``(i) means a formal banking or business
relationship established to provide regular
services, dealings, and other financial
transactions; and
``(ii) includes a demand deposit, savings
deposit, or other transaction or asset account and
a credit account or other extension of credit.
``(B) Correspondent account.--The term
`correspondent account' means an account established to
receive deposits from, make payments on behalf of a
foreign financial institution, or handle other financial
transactions related to such institution.
``(C) Payable-through account.--The term `payable-
through account' means an account, including a
transaction account (as defined in section 19(b)(1)(C)
of the Federal Reserve Act), opened at a depository
institution by a foreign financial institution by means
of which the foreign financial institution permits its
customers to engage, either directly or through a
subaccount, in banking activities usual in connection
with the business of banking in the United States.
``(2) Definitions applicable to institutions other than
banks.--With respect to any financial institution other than a
bank, the Secretary shall, after consultation with the
appropriate Federal functional regulators (as defined in section
509 of the Gramm-Leach-Bliley Act), define by regulation the
term `account', and shall include within the meaning of that
term, to the extent, if any, that the Secretary deems
appropriate, arrangements similar to payable-through and
correspondent accounts.
``(3) Regulatory definition of beneficial ownership.--The
Secretary shall promulgate regulations defining beneficial
ownership of an account for purposes of this section and
subsections (i) and (j) of section 5318. Such regulations shall
address issues related to an individual's authority to fund,
[[Page 115 STAT. 304]]
direct, or manage the account (including, without limitation,
the power to direct payments into or out of the account), and an
individual's material interest in the income or corpus of the
account, and shall ensure that the identification of individuals
under this section does not extend to any individual whose
beneficial interest in the income or corpus of the account is
immaterial.
``(4) Other terms.--The Secretary may, by regulation,
further define the terms in paragraphs (1), (2), and (3), and
define other terms for the purposes of this section, as the
Secretary deems appropriate.''.
(b) Clerical Amendment.--The table of sections for subchapter II of
chapter 53 of title 31, United States Code, is amended by inserting
after the item relating to section 5318 the following new item:
``5318A. Special measures for jurisdictions, financial institutions, or
international transactions of primary money laundering
concern.''.
SEC. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS AND PRIVATE
BANKING ACCOUNTS.
(a) In General.--Section 5318 of title 31, United States Code, is
amended by adding at the end the following:
``(i) Due Diligence for United States Private Banking and
Correspondent Bank Accounts Involving Foreign Persons.--
``(1) In general.--Each financial institution that
establishes, maintains, administers, or manages a private
banking account or a correspondent account in the United States
for a non-United States person, including a foreign individual
visiting the United States, or a representative of a non-United
States person shall establish appropriate, specific, and, where
necessary, enhanced, due diligence policies, procedures, and
controls that are reasonably designed to detect and report
instances of money laundering through those accounts.
``(2) Additional standards for certain correspondent
accounts.--
``(A) In general.--Subparagraph (B) shall apply if a
correspondent account is requested or maintained by, or
on behalf of, a foreign bank operating--
``(i) under an offshore banking license; or
``(ii) under a banking license issued by a
foreign country that has been designated--
``(I) as noncooperative with
international anti-money laundering
principles or procedures by an
intergovernmental group or organization
of which the United States is a member,
with which designation the United States
representative to the group or
organization concurs; or
``(II) by the Secretary of the
Treasury as warranting special measures
due to money laundering concerns.
``(B) Policies, procedures, and controls.--The
enhanced due diligence policies, procedures, and
controls required under paragraph (1) shall, at a
minimum, ensure that the financial institution in the
United States takes reasonable steps--
``(i) to ascertain for any such foreign bank,
the shares of which are not publicly traded, the
identity
[[Page 115 STAT. 305]]
of each of the owners of the foreign bank, and the
nature and extent of the ownership interest of
each such owner;
``(ii) to conduct enhanced scrutiny of such
account to guard against money laundering and
report any suspicious transactions under
subsection (g); and
``(iii) to ascertain whether such foreign bank
provides correspondent accounts to other foreign
banks and, if so, the identity of those foreign
banks and related due diligence information, as
appropriate under paragraph (1).
``(3) Minimum standards for private banking accounts.--If a
private banking account is requested or maintained by, or on
behalf of, a non-United States person, then the due diligence
policies, procedures, and controls required under paragraph (1)
shall, at a minimum, ensure that the financial institution takes
reasonable steps--
``(A) to ascertain the identity of the nominal and
beneficial owners of, and the source of funds deposited
into, such account as needed to guard against money
laundering and report any suspicious transactions under
subsection (g); and
``(B) to conduct enhanced scrutiny of any such
account that is requested or maintained by, or on behalf
of, a senior foreign political figure, or any immediate
family member or close associate of a senior foreign
political figure that is reasonably designed to detect
and report transactions that may involve the proceeds of
foreign corruption.
``(4) Definition.--For purposes of this subsection, the
following definitions shall apply:
``(A) Offshore banking license.--The term `offshore
banking license' means a license to conduct banking
activities which, as a condition of the license,
prohibits the licensed entity from conducting banking
activities with the citizens of, or with the local
currency of, the country which issued the license.
``(B) Private banking account.--The term `private
banking account' means an account (or any combination of
accounts) that--
``(i) requires a minimum aggregate deposits of
funds or other assets of not less than $1,000,000;
``(ii) is established on behalf of 1 or more
individuals who have a direct or beneficial
ownership interest in the account; and
``(iii) is assigned to, or is administered or
managed by, in whole or in part, an officer,
employee, or agent of a financial institution
acting as a liaison between the financial
institution and the direct or beneficial owner of
the account.''.
(b) Regulatory <<NOTE: 31 USC 5318 note.>> Authority and Effective
Date.--
(1) Regulatory <<NOTE: Deadline.>> authority.--Not later
than 180 days after the date of enactment of this Act, the
Secretary, in consultation with the appropriate Federal
functional regulators (as defined in section 509 of the Gramm-
Leach-Bliley Act) of the affected financial institutions, shall
further delineate, by regulation, the due diligence policies,
procedures, and controls required
[[Page 115 STAT. 306]]
under section 5318(i)(1) of title 31, United States Code, as
added by this section.
(2) Effective date.--Section 5318(i) of title 31, United
States Code, as added by this section, shall take effect 270
days after the date of enactment of this Act, whether or not
final regulations are issued under paragraph (1), and the
failure to issue such regulations shall in no way affect the
enforceability of this section or the amendments made by this
section. Section 5318(i) of title 31, United States Code, as
added by this section, shall apply with respect to accounts
covered by that section 5318(i), that are opened before, on, or
after the date of enactment of this Act.
SEC. 313. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS WITH
FOREIGN SHELL BANKS.
(a) In General.--Section 5318 of title 31, United States Code, as
amended by this title, is amended by adding at the end the following:
``(j) Prohibition on United States Correspondent Accounts With
Foreign Shell Banks.--
``(1) In general.--A financial institution described in
subparagraphs (A) through (G) of section 5312(a)(2) (in this
subsection referred to as a `covered financial institution')
shall not establish, maintain, administer, or manage a
correspondent account in the United States for, or on behalf of,
a foreign bank that does not have a physical presence in any
country.
``(2) Prevention of indirect service to foreign shell
banks.--A covered financial institution shall take reasonable
steps to ensure that any correspondent account established,
maintained, administered, or managed by that covered financial
institution in the United States for a foreign bank is not being
used by that foreign bank to indirectly provide banking services
to another foreign bank that does not have a physical presence
in any country. The Secretary of the Treasury shall, by
regulation, delineate the reasonable steps necessary to comply
with this paragraph.
``(3) Exception.--Paragraphs (1) and (2) do not prohibit a
covered financial institution from providing a correspondent
account to a foreign bank, if the foreign bank--
``(A) is an affiliate of a depository institution,
credit union, or foreign bank that maintains a physical
presence in the United States or a foreign country, as
applicable; and
``(B) is subject to supervision by a banking
authority in the country regulating the affiliated
depository institution, credit union, or foreign bank
described in subparagraph (A), as applicable.
``(4) Definitions.--For purposes of this subsection--
``(A) the term `affiliate' means a foreign bank that
is controlled by or is under common control with a
depository institution, credit union, or foreign bank;
and
``(B) the term `physical presence' means a place of
business that--
``(i) is maintained by a foreign bank;
``(ii) is located at a fixed address (other
than solely an electronic address) in a country in
which the foreign
[[Page 115 STAT. 307]]
bank is authorized to conduct banking activities,
at which location the foreign bank--
``(I) employs 1 or more individuals
on a full-time basis; and
``(II) maintains operating records
related to its banking activities; and
``(iii) is subject to inspection by the
banking authority which licensed the foreign bank
to conduct banking activities.''.
(b) Effective <<NOTE: 31 USC 5318 note.>> Date.--The amendment made
by subsection (a) shall take effect at the end of the 60-day period
beginning on the date of enactment of this Act.
SEC. 314. <<NOTE: 31 USC 5311 note.>> COOPERATIVE EFFORTS TO DETER MONEY
LAUNDERING.
(a) Cooperation Among Financial Institutions, Regulatory
Authorities, and Law Enforcement Authorities.--
(1) Regulations.--The <<NOTE: Deadline.>> Secretary shall,
within 120 days after the date of enactment of this Act, adopt
regulations to encourage further cooperation among financial
institutions, their regulatory authorities, and law enforcement
authorities, with the specific purpose of encouraging regulatory
authorities and law enforcement authorities to share with
financial institutions information regarding individuals,
entities, and organizations engaged in or reasonably suspected
based on credible evidence of engaging in terrorist acts or
money laundering activities.
(2) Cooperation and information sharing procedures.--The
regulations adopted under paragraph (1) may include or create
procedures for cooperation and information sharing focusing on--
(A) matters specifically related to the finances of
terrorist groups, the means by which terrorist groups
transfer funds around the world and within the United
States, including through the use of charitable
organizations, nonprofit organizations, and
nongovernmental organizations, and the extent to which
financial institutions in the United States are
unwittingly involved in such finances and the extent to
which such institutions are at risk as a result;
(B) the relationship, particularly the financial
relationship, between international narcotics
traffickers and foreign terrorist organizations, the
extent to which their memberships overlap and engage in
joint activities, and the extent to which they cooperate
with each other in raising and transferring funds for
their respective purposes; and
(C) means of facilitating the identification of
accounts and transactions involving terrorist groups and
facilitating the exchange of information concerning such
accounts and transactions between financial institutions
and law enforcement organizations.
(3) Contents.--The regulations adopted pursuant to paragraph
(1) may--
(A) require that each financial institution
designate 1 or more persons to receive information
concerning, and to monitor accounts of individuals,
entities, and organizations identified, pursuant to
paragraph (1); and
(B) further establish procedures for the protection
of the shared information, consistent with the capacity,
size,
[[Page 115 STAT. 308]]
and nature of the institution to which the particular
procedures apply.
(4) Rule of construction.--The receipt of information by a
financial institution pursuant to this section shall not relieve
or otherwise modify the obligations of the financial institution
with respect to any other person or account.
(5) Use of information.--Information received by a financial
institution pursuant to this section shall not be used for any
purpose other than identifying and reporting on activities that
may involve terrorist acts or money laundering activities.
(b) Cooperation Among Financial Institutions.--Upon notice provided
to the Secretary, 2 or more financial institutions and any association
of financial institutions may share information with one another
regarding individuals, entities, organizations, and countries suspected
of possible terrorist or money laundering activities. A financial
institution or association that transmits, receives, or shares such
information for the purposes of identifying and reporting activities
that may involve terrorist acts or money laundering activities shall not
be liable to any person under any law or regulation of the United
States, any constitution, law, or regulation of any State or political
subdivision thereof, or under any contract or other legally enforceable
agreement (including any arbitration agreement), for such disclosure or
for any failure to provide notice of such disclosure to the person who
is the subject of such disclosure, or any other person identified in the
disclosure, except where such transmission, receipt, or sharing violates
this section or regulations promulgated pursuant to this section.
(c) Rule of Construction.--Compliance with the provisions of this
title requiring or allowing financial institutions and any association
of financial institutions to disclose or share information regarding
individuals, entities, and organizations engaged in or suspected of
engaging in terrorist acts or money laundering activities shall not
constitute a violation of the provisions of title V of the Gramm-Leach-
Bliley Act (Public Law 106-102).
(d) Reports to the Financial Services Industry on Suspicious
Financial Activities.--At least semiannually, the Secretary shall--
(1) publish a report containing a detailed analysis
identifying patterns of suspicious activity and other
investigative insights derived from suspicious activity reports
and investigations conducted by Federal, State, and local law
enforcement agencies to the extent appropriate; and
(2) distribute such report to financial institutions (as
defined in section 5312 of title 31, United States Code).
SEC. 315. INCLUSION OF FOREIGN CORRUPTION OFFENSES AS MONEY LAUNDERING
CRIMES.
Section 1956(c)(7) of title 18, United States Code, is amended--
(1) in subparagraph (B)--
(A) in clause (ii), by striking ``or destruction of
property by means of explosive or fire'' and inserting
``destruction of property by means of explosive or fire,
or a crime of violence (as defined in section 16)'';
(B) in clause (iii), by striking ``1978'' and
inserting ``1978)''; and
(C) by adding at the end the following:
[[Page 115 STAT. 309]]
``(iv) bribery of a public official, or the
misappropriation, theft, or embezzlement of public
funds by or for the benefit of a public official;
``(v) smuggling or export control violations
involving--
``(I) an item controlled on the
United States Munitions List established
under section 38 of the Arms Export
Control Act (22 U.S.C. 2778); or
``(II) an item controlled under
regulations under the Export
Administration Regulations (15 C.F.R.
Parts 730-774); or
``(vi) an offense with respect to which the
United States would be obligated by a multilateral
treaty, either to extradite the alleged offender
or to submit the case for prosecution, if the
offender were found within the territory of the
United States;''; and
(2) in subparagraph (D)--
(A) by inserting ``section 541 (relating to goods
falsely classified),'' before ``section 542'';
(B) by inserting ``section 922(1) (relating to the
unlawful importation of firearms), section 924(n)
(relating to firearms trafficking),'' before ``section
956'';
(C) by inserting ``section 1030 (relating to
computer fraud and abuse),'' before ``1032''; and
(D) by inserting ``any felony violation of the
Foreign Agents Registration Act of 1938,'' before ``or
any felony violation of the Foreign Corrupt Practices
Act''.
SEC. 316. ANTI-TERRORIST FORFEITURE PROTECTION.
(a) Right <<NOTE: 18 USC 983 note.>> 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 <<NOTE: 18 USC 983 note.>> considering a claim
filed under this section, a court may admit evidence that is otherwise
inadmissible under the Federal Rules of Evidence, if the court
determines that the evidence is reliable, and that compliance with the
Federal Rules of Evidence may jeopardize the national security interests
of the United States.
(c) <<NOTE: 18 USC 983 note.>> Clarifications.--
(1) Protection of rights.--The exclusion of certain
provisions of Federal law from the definition of the term
``civil forfeiture statute'' in section 983(i) of title 18,
United States Code, shall not be construed to deny an owner of
property the right to contest the confiscation of assets of
suspected international terrorists under--
(A) subsection (a) of this section;
(B) the Constitution; or
[[Page 115 STAT. 310]]
(C) subchapter II of chapter 5 of title 5, United
States Code (commonly known as the ``Administrative
Procedure Act'').
(2) Savings clause.--Nothing in this section shall limit or
otherwise affect any other remedies that may be available to an
owner of property under section 983 of title 18, United States
Code, or any other provision of law.
(d) Technical Correction.--Section 983(i)(2)(D) of title 18, United
States Code, is amended by inserting ``or the International Emergency
Economic Powers Act (IEEPA) (50 U.S.C. 1701 et seq.)'' before the
semicolon.
SEC. 317. LONG-ARM JURISDICTION OVER FOREIGN MONEY LAUNDERERS.
Section 1956(b) of title 18, United States Code, is amended--
(1) by redesignating paragraphs (1) and (2) as subparagraphs
(A) and (B), respectively, and moving the margins 2 ems to the
right;
(2) by inserting after ``(b)'' the following: ``Penalties.--
``(1) In general.--'';
(3) by inserting ``, or section 1957'' after ``or (a)(3)'';
and
(4) by adding at the end the following:
``(2) Jurisdiction over foreign persons.--For purposes of
adjudicating an action filed or enforcing a penalty ordered
under this section, the district courts shall have jurisdiction
over any foreign person, including any financial institution
authorized under the laws of a foreign country, against whom the
action is brought, if service of process upon the foreign person
is made under the Federal Rules of Civil Procedure or the laws
of the country in which the foreign person is found, and--
``(A) the foreign person commits an offense under
subsection (a) involving a financial transaction that
occurs in whole or in part in the United States;
``(B) the foreign person converts, to his or her own
use, property in which the United States has an
ownership interest by virtue of the entry of an order of
forfeiture by a court of the United States; or
``(C) the foreign person is a financial institution
that maintains a bank account at a financial institution
in the United States.
``(3) Court authority over assets.--A court described in
paragraph (2) may issue a pretrial restraining order or take any
other action necessary to ensure that any bank account or other
property held by the defendant in the United States is available
to satisfy a judgment under this section.
``(4) Federal receiver.--
``(A) In general.--A court described in paragraph
(2) may appoint a Federal Receiver, in accordance with
subparagraph (B) of this paragraph, to collect, marshal,
and take custody, control, and possession of all assets
of the defendant, wherever located, to satisfy a civil
judgment under this subsection, a forfeiture judgment
under section 981 or 982, or a criminal sentence under
section 1957 or subsection (a) of this section,
including an order of restitution to any victim of a
specified unlawful activity.
[[Page 115 STAT. 311]]
``(B) Appointment and authority.--A Federal Receiver
described in subparagraph (A)--
``(i) may be appointed upon application of a
Federal prosecutor or a Federal or State
regulator, by the court having jurisdiction over
the defendant in the case;
``(ii) shall be an officer of the court, and
the powers of the Federal Receiver shall include
the powers set out in section 754 of title 28,
United States Code; and
``(iii) shall have standing equivalent to that
of a Federal prosecutor for the purpose of
submitting requests to obtain information
regarding the assets of the defendant--
``(I) from the Financial Crimes
Enforcement Network of the Department of
the Treasury; or
``(II) from a foreign country
pursuant to a mutual legal assistance
treaty, multilateral agreement, or other
arrangement for international law
enforcement assistance, provided that
such requests are in accordance with the
policies and procedures of the Attorney
General.''.
SEC. 318. LAUNDERING MONEY THROUGH A FOREIGN BANK.
Section 1956(c) of title 18, United States Code, is amended by
striking paragraph (6) and inserting the following:
``(6) the term `financial institution' includes--
``(A) any financial institution, as defined in
section 5312(a)(2) of title 31, United States Code, or
the regulations promulgated thereunder; and
``(B) any foreign bank, as defined in section 1 of
the International Banking Act of 1978 (12 U.S.C.
3101).''.
SEC. 319. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK ACCOUNTS.
(a) Forfeiture From United States Interbank Account.--Section 981 of
title 18, United States Code, is amended by adding at the end the
following:
``(k) Interbank Accounts.--
``(1) In general.--
``(A) In general.--For the purpose of a forfeiture
under this section or under the Controlled Substances
Act (21 U.S.C. 801 et seq.), if funds are deposited into
an account at a foreign bank, and that foreign bank has
an interbank account in the United States with a covered
financial institution (as defined in section 5318(j)(1)
of title 31), the funds shall be deemed to have been
deposited into the interbank account in the United
States, and any restraining order, seizure warrant, or
arrest warrant in rem regarding the funds may be served
on the covered financial institution, and funds in the
interbank account, up to the value of the funds
deposited into the account at the foreign bank, may be
restrained, seized, or arrested.
``(B) Authority to suspend.--The Attorney General,
in consultation with the Secretary of the Treasury, may
suspend or terminate a forfeiture under this section if
the Attorney General determines that a conflict of law
exists between the laws of the jurisdiction in which the
foreign bank is located and the laws of the United
States
[[Page 115 STAT. 312]]
with respect to liabilities arising from the restraint,
seizure, or arrest of such funds, and that such
suspension or termination would be in the interest of
justice and would not harm the national interests of the
United States.
``(2) No requirement for government to trace funds.--If a
forfeiture action is brought against funds that are restrained,
seized, or arrested under paragraph (1), it shall not be
necessary for the Government to establish that the funds are
directly traceable to the funds that were deposited into the
foreign bank, nor shall it be necessary for the Government to
rely on the application of section 984.
``(3) Claims brought by owner of the funds.--If a forfeiture
action is instituted against funds restrained, seized, or
arrested under paragraph (1), the owner of the funds deposited
into the account at the foreign bank may contest the forfeiture
by filing a claim under section 983.
``(4) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Interbank account.--The term `interbank
account' has the same meaning as in section
984(c)(2)(B).
``(B) Owner.--
``(i) In general.--Except as provided in
clause (ii), the term `owner'--
``(I) means the person who was the
owner, as that term is defined in
section 983(d)(6), of the funds that
were deposited into the foreign bank at
the time such funds were deposited; and
``(II) does not include either the
foreign bank or any financial
institution acting as an intermediary in
the transfer of the funds into the
interbank account.
``(ii) Exception.--The foreign bank may be
considered the `owner' of the funds (and no other
person shall qualify as the owner of such funds)
only if--
``(I) the basis for the forfeiture
action is wrongdoing committed by the
foreign bank; or
``(II) the foreign bank establishes,
by a preponderance of the evidence, that
prior to the restraint, seizure, or
arrest of the funds, the foreign bank
had discharged all or part of its
obligation to the prior owner of the
funds, in which case the foreign bank
shall be deemed the owner of the funds
to the extent of such discharged
obligation.''.
(b) Bank Records.--Section 5318 of title 31, United States Code, as
amended by this title, is amended by adding at the end the following:
``(k) Bank Records Related to Anti-Money Laundering Programs.--
``(1) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Appropriate federal banking agency.--The term
`appropriate Federal banking agency' has the same
meaning as in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813).
``(B) Incorporated term.--The term `correspondent
account' has the same meaning as in section
5318A(f)(1)(B).
[[Page 115 STAT. 313]]
``(2) 120-hour rule.--Not <<NOTE: Deadline.>> later than
120 hours after receiving a request by an appropriate Federal
banking agency for information related to anti-money laundering
compliance by a covered financial institution or a customer of
such institution, a covered financial institution shall provide
to the appropriate Federal banking agency, or make available at
a location specified by the representative of the appropriate
Federal banking agency, information and account documentation
for any account opened, maintained, administered or managed in
the United States by the covered financial institution.
``(3) Foreign bank records.--
``(A) Summons or subpoena of records.--
``(i) In general.--The Secretary of the
Treasury or the Attorney General may issue a
summons or subpoena to any foreign bank that
maintains a correspondent account in the United
States and request records related to such
correspondent account, including records
maintained outside of the United States relating
to the deposit of funds into the foreign bank.
``(ii) Service of summons or subpoena.--A
summons or subpoena referred to in clause (i) may
be served on the foreign bank in the United States
if the foreign bank has a representative in the
United States, or in a foreign country pursuant to
any mutual legal assistance treaty, multilateral
agreement, or other request for international law
enforcement assistance.
``(B) Acceptance of service.--
``(i) Maintaining records in the united
states.--Any covered financial institution which
maintains a correspondent account in the United
States for a foreign bank shall maintain records
in the United States identifying the owners of
such foreign bank and the name and address of a
person who resides in the United States and is
authorized to accept service of legal process for
records regarding the correspondent account.
``(ii) Law <<NOTE: Deadline.>> enforcement
request.--Upon receipt of a written request from a
Federal law enforcement officer for information
required to be maintained under this paragraph,
the covered financial institution shall provide
the information to the requesting officer not
later than 7 days after receipt of the request.
``(C) Termination of correspondent relationship.--
``(i) Termination upon receipt of notice.--A
covered financial institution shall terminate any
correspondent relationship with a foreign bank not
later than 10 business days after receipt of
written notice from the Secretary or the Attorney
General (in each case, after consultation with the
other) that the foreign bank has failed--
``(I) to comply with a summons or
subpoena issued under subparagraph (A);
or
``(II) to initiate proceedings in a
United States court contesting such
summons or subpoena.
[[Page 115 STAT. 314]]
``(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 <<NOTE: 31 USC 5318 note.>> Period.--Financial
institutions shall have 60 days from the date of enactment of this Act
to comply with the provisions of section 5318(k) of title 31, United
States Code, as added by this section.
(d) Authority To Order Convicted Criminal To Return Property Located
Abroad.--
(1) Forfeiture of substitute property.--Section 413(p) of
the Controlled Substances Act (21 U.S.C. 853) is amended to read
as follows:
``(p) Forfeiture of Substitute Property.--
``(1) In general.--Paragraph (2) of this subsection shall
apply, if any property described in subsection (a), as a result
of any act or omission of the defendant--
``(A) cannot be located upon the exercise of due
diligence;
``(B) has been transferred or sold to, or deposited
with, a third party;
``(C) has been placed beyond the jurisdiction of the
court;
``(D) has been substantially diminished in value; or
``(E) has been commingled with other property which
cannot be divided without difficulty.
``(2) Substitute property.--In any case described in any of
subparagraphs (A) through (E) of paragraph (1), the court shall
order the forfeiture of any other property of the defendant, up
to the value of any property described in subparagraphs (A)
through (E) of paragraph (1), as applicable.
``(3) Return of property to jurisdiction.--In the case of
property described in paragraph (1)(C), the court may, in
addition to any other action authorized by this subsection,
order the defendant to return the property to the jurisdiction
of the court so that the property may be seized and
forfeited.''.
(2) Protective orders.--Section 413(e) of the Controlled
Substances Act (21 U.S.C. 853(e)) is amended by adding at the
end the following:
``(4) Order to repatriate and deposit.--
``(A) In general.--Pursuant to its authority to
enter a pretrial restraining order under this section,
the court may order a defendant to repatriate any
property that may be seized and forfeited, and to
deposit that property pending trial in the registry of
the court, or with the United States Marshals Service or
the Secretary of the Treasury, in an interest-bearing
account, if appropriate.
``(B) Failure to comply.--Failure to comply with an
order under this subsection, or an order to repatriate
property under subsection (p), shall be punishable as a
civil
[[Page 115 STAT. 315]]
or criminal contempt of court, and may also result in an
enhancement of the sentence of the defendant under the
obstruction of justice provision of the Federal
Sentencing Guidelines.''.
SEC. 320. PROCEEDS OF FOREIGN CRIMES.
Section 981(a)(1)(B) of title 18, United States Code, is amended to
read as follows:
``(B) Any property, real or personal, within the
jurisdiction of the United States, constituting, derived from,
or traceable to, any proceeds obtained directly or indirectly
from an offense against a foreign nation, or any property used
to facilitate such an offense, if the offense--
``(i) involves the manufacture, importation, sale,
or distribution of a controlled substance (as that term
is defined for purposes of the Controlled Substances
Act), or any other conduct described in section
1956(c)(7)(B);
``(ii) would be punishable within the jurisdiction
of the foreign nation by death or imprisonment for a
term exceeding 1 year; and
``(iii) would be punishable under the laws of the
United States by imprisonment for a term exceeding 1
year, if the act or activity constituting the offense
had occurred within the jurisdiction of the United
States.''.
SEC. 321. FINANCIAL INSTITUTIONS SPECIFIED IN SUBCHAPTER II OF CHAPTER
53 OF TITLE 31, UNITED STATES CODE.
(a) Credit Unions.--Subparagraph (E) of section 5312(2) of title 31,
United States Code, is amended to read as follows:
``(E) any credit union;''.
(b) Futures Commission Merchant; Commodity Trading Advisor;
Commodity Pool Operator.--Section 5312 of title 31, United States Code,
is amended by adding at the end the following new subsection:
``(c) Additional Definitions.--For purposes of this subchapter, the
following definitions shall apply:
``(1) Certain institutions included in definition.--The term
`financial institution' (as defined in subsection (a)) includes
the following:
``(A) Any futures commission merchant, commodity
trading advisor, or commodity pool operator registered,
or required to register, under the Commodity Exchange
Act.''.
(c) CFTC <<NOTE: 31 USC 5318 note.>> Included.--For purposes of this
Act and any amendment made by this Act to any other provision of law,
the term ``Federal functional regulator'' includes the Commodity Futures
Trading Commission.
SEC. 322. CORPORATION REPRESENTED BY A FUGITIVE.
Section 2466 of title 18, United States Code, is amended by
designating the present matter as subsection (a), and adding at the end
the following:
``(b) Subsection (a) may be applied to a claim filed by a
corporation if any majority shareholder, or individual filing the claim
on behalf of the corporation is a person to whom subsection (a)
applies.''.
SEC. 323. ENFORCEMENT OF FOREIGN JUDGMENTS.
Section 2467 of title 28, United States Code, is amended--
[[Page 115 STAT. 316]]
(1) in subsection (d), by adding the following after
paragraph (2):
``(3) Preservation of property.--
``(A) In general.--To preserve the availability of
property subject to a foreign forfeiture or confiscation
judgment, the Government may apply for, and the court
may issue, a restraining order pursuant to section
983(j) of title 18, at any time before or after an
application is filed pursuant to subsection (c)(1) of
this section.
``(B) Evidence.--The court, in issuing a restraining
order under subparagraph (A)--
``(i) may rely on information set forth in an
affidavit describing the nature of the proceeding
or investigation underway in the foreign country,
and setting forth a reasonable basis to believe
that the property to be restrained will be named
in a judgment of forfeiture at the conclusion of
such proceeding; or
``(ii) may register and enforce a restraining
order that has been issued by a court of competent
jurisdiction in the foreign country and certified
by the Attorney General pursuant to subsection
(b)(2).
``(C) Limit on grounds for objection.--No person may
object to a restraining order under subparagraph (A) on
any ground that is the subject of parallel litigation
involving the same property that is pending in a foreign
court.'';
(2) in subsection (b)(1)(C), by striking ``establishing that
the defendant received notice of the proceedings in sufficient
time to enable the defendant'' and inserting ``establishing that
the foreign nation took steps, in accordance with the principles
of due process, to give notice of the proceedings to all persons
with an interest in the property in sufficient time to enable
such persons'';
(3) in subsection (d)(1)(D), by striking ``the defendant in
the proceedings in the foreign court did not receive notice''
and inserting ``the foreign nation did not take steps, in
accordance with the principles of due process, to give notice of
the proceedings to a person with an interest in the property'';
and
(4) in subsection (a)(2)(A), by inserting ``, any violation
of foreign law that would constitute a violation or an offense
for which property could be forfeited under Federal law if the
offense were committed in the United States'' after ``United
Nations Convention''.
SEC. 324. <<NOTE: 31 USC 5311 note.>> REPORT AND RECOMMENDATION.
Not <<NOTE: Deadline.>> later than 30 months after the date of
enactment of this Act, the Secretary, in consultation with the Attorney
General, the Federal banking agencies (as defined at section 3 of the
Federal Deposit Insurance Act), the National Credit Union Administration
Board, the Securities and Exchange Commission, and such other agencies
as the Secretary may determine, at the discretion of the Secretary,
shall evaluate the operations of the provisions of this subtitle and
make recommendations to Congress as to any legislative action with
respect to this subtitle as the Secretary may determine to be necessary
or advisable.
[[Page 115 STAT. 317]]
SEC. 325. CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS.
Section 5318(h) of title 31, United States Code, as amended by
section 202 of this title, is amended by adding at the end the
following:
``(3) Concentration accounts.--The Secretary may prescribe
regulations under this subsection that govern maintenance of
concentration accounts by financial institutions, in order to
ensure that such accounts are not used to prevent association of
the identity of an individual customer with the movement of
funds of which the customer is the direct or beneficial owner,
which regulations shall, at a minimum--
``(A) prohibit financial institutions from allowing
clients to direct transactions that move their funds
into, out of, or through the concentration accounts of
the financial institution;
``(B) prohibit financial institutions and their
employees from informing customers of the existence of,
or the means of identifying, the concentration accounts
of the institution; and
``(C) require each financial institution to
establish written procedures governing the documentation
of all transactions involving a concentration account,
which procedures shall ensure that, any time a
transaction involving a concentration account commingles
funds belonging to 1 or more customers, the identity of,
and specific amount belonging to, each customer is
documented.''.
SEC. 326. VERIFICATION OF IDENTIFICATION.
(a) In General.--Section 5318 of title 31, United States Code, as
amended by this title, is amended by adding at the end the following:
``(l) Identification and Verification of Accountholders.--
``(1) In general.--Subject <<NOTE: Regulations.>> to the
requirements of this subsection, the Secretary of the Treasury
shall prescribe regulations setting forth the minimum standards
for financial institutions and their customers regarding the
identity of the customer that shall apply in connection with the
opening of an account at a financial institution.
``(2) Minimum requirements.--The regulations shall, at a
minimum, require financial institutions to implement, and
customers (after being given adequate notice) to comply with,
reasonable procedures for--
``(A) verifying the identity of any person seeking
to open an account to the extent reasonable and
practicable;
``(B) maintaining records of the information used to
verify a person's identity, including name, address, and
other identifying information; and
``(C) consulting lists of known or suspected
terrorists or terrorist organizations provided to the
financial institution by any government agency to
determine whether a person seeking to open an account
appears on any such list.
``(3) Factors to be considered.--In prescribing regulations
under this subsection, the Secretary shall take into
consideration the various types of accounts maintained by
various types of financial institutions, the various methods of
opening
[[Page 115 STAT. 318]]
accounts, and the various types of identifying information
available.
``(4) Certain financial institutions.--In the case of any
financial institution the business of which is engaging in
financial activities described in section 4(k) of the Bank
Holding Company Act of 1956 (including financial activities
subject to the jurisdiction of the Commodity Futures Trading
Commission), the regulations prescribed by the Secretary under
paragraph (1) shall be prescribed jointly with each Federal
functional regulator (as defined in section 509 of the Gramm-
Leach-Bliley Act, including the Commodity Futures Trading
Commission) appropriate for such financial institution.
``(5) Exemptions.--The Secretary (and, in the case of any
financial institution described in paragraph (4), any Federal
agency described in such paragraph) may, by regulation or order,
exempt any financial institution or type of account from the
requirements of any regulation prescribed under this subsection
in accordance with such standards and procedures as the
Secretary may prescribe.
``(6) Effective date.--Final regulations prescribed under
this subsection shall take effect before the end of the 1-year
period beginning on the date of enactment of the International
Money Laundering Abatement and Financial Anti-Terrorism Act of
2001.''.
(b) Study <<NOTE: Deadline.>> and Report Required.--Within 6 months
after the date of enactment of this Act, the Secretary, in consultation
with the Federal functional regulators (as defined in section 509 of the
Gramm-Leach-Bliley Act) and other appropriate Government agencies, shall
submit a report to the Congress containing recommendations for--
(1) determining the most timely and effective way to require
foreign nationals to provide domestic financial institutions and
agencies with appropriate and accurate information, comparable
to that which is required of United States nationals, concerning
the identity, address, and other related information about such
foreign nationals necessary to enable such institutions and
agencies to comply with the requirements of this section;
(2) requiring foreign nationals to apply for and obtain,
before opening an account with a domestic financial institution,
an identification number which would function similarly to a
Social Security number or tax identification number; and
(3) establishing a system for domestic financial
institutions and agencies to review information maintained by
relevant Government agencies for purposes of verifying the
identities of foreign nationals seeking to open accounts at
those institutions and agencies.
SEC. 327. CONSIDERATION OF ANTI-MONEY LAUNDERING RECORD.
(a) Bank Holding Company Act of 1956.--
(1) In general.--Section 3(c) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the end
the following new paragraph:
``(6) Money laundering.--In every case, the Board shall take
into consideration the effectiveness of the company or companies
in combatting money laundering activities, including in overseas
branches.''.
[[Page 115 STAT. 319]]
(2) Scope <<NOTE: 12 USC 1842 note.>> of application.--The amendment
made by paragraph (1) shall apply with respect to any application
submitted to the Board of Governors of the Federal Reserve System under
section 3 of the Bank Holding Company Act of 1956 after December 31,
2001, which has not been approved by the Board before the date of
enactment of this Act.
(b) Mergers Subject to Review Under Federal Deposit Insurance Act.--
(1) In general.--Section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) is amended--
(A) by redesignating paragraph (11) as paragraph
(12); and
(B) by inserting after paragraph (10), the following
new paragraph:
``(11) Money laundering.--In every case, the responsible
agency, shall take into consideration the effectiveness of any
insured depository institution involved in the proposed merger
transaction in combatting money laundering activities, including
in overseas branches.''.
(2) Scope <<NOTE: 12 USC 1828 note.>> of application.--The
amendment made by paragraph (1) shall apply with respect to any
application submitted to the responsible agency under section
18(c) of the Federal Deposit Insurance Act after December 31,
2001, which has not been approved by all appropriate responsible
agencies before the date of enactment of this Act.
SEC. 328. <<NOTE: 31 USC 5311 note.>> INTERNATIONAL COOPERATION ON
IDENTIFICATION OF ORIGINATORS OF WIRE TRANSFERS.
The Secretary shall--
(1) in consultation with the Attorney General and the
Secretary of State, take all reasonable steps to encourage
foreign governments to require the inclusion of the name of the
originator in wire transfer instructions sent to the United
States and other countries, with the information to remain with
the transfer from its origination until the point of
disbursement; and
(2) report annually to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on--
(A) progress toward the goal enumerated in paragraph
(1), as well as impediments to implementation and an
estimated compliance rate; and
(B) impediments to instituting a regime in which all
appropriate identification, as defined by the Secretary,
about wire transfer recipients shall be included with
wire transfers from their point of origination until
disbursement.
SEC. 329. <<NOTE: 31 USC 5311 note.>> CRIMINAL PENALTIES.
Any person who is an official or employee of any department, agency,
bureau, office, commission, or other entity of the Federal Government,
and any other person who is acting for or on behalf of any such entity,
who, directly or indirectly, in connection with the administration of
this title, corruptly demands, seeks, receives, accepts, or agrees to
receive or accept anything of value personally or for any other person
or entity in return for--
(1) being influenced in the performance of any official act;
[[Page 115 STAT. 320]]
(2) being influenced to commit or aid in the committing, or
to collude in, or allow, any fraud, or make opportunity for the
commission of any fraud, on the United States; or
(3) being induced to do or omit to do any act in violation
of the official duty of such official or person,
shall be fined in an amount not more than 3 times the monetary
equivalent of the thing of value, or imprisoned for not more than 15
years, or both. A violation of this section shall be subject to chapter
227 of title 18, United States Code, and the provisions of the United
States Sentencing Guidelines.
SEC. 330. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF MONEY
LAUNDERING, FINANCIAL CRIMES, AND THE FINANCES OF TERRORIST
GROUPS.
(a) Negotiations.--It is the sense of the Congress that the President
should direct the Secretary of State, the Attorney General, or the
Secretary of the Treasury, as appropriate, and in consultation with the
Board of Governors of the Federal Reserve System, to seek to enter into
negotiations with the appropriate financial supervisory agencies and
other officials of any foreign country the financial institutions of
which do business with United States financial institutions or which may
be utilized by any foreign terrorist organization (as designated under
section 219 of the Immigration and Nationality Act), any person who is a
member or representative of any such organization, or any person engaged
in money laundering or financial or other crimes.
(b) Purposes of Negotiations.--It is the sense of the Congress that,
in carrying out any negotiations described in paragraph (1), the
President should direct the Secretary of State, the Attorney General, or
the Secretary of the Treasury, as appropriate, to seek to enter into and
further cooperative efforts, voluntary information exchanges, the use of
letters rogatory, mutual legal assistance treaties, and international
agreements to--
(1) ensure that foreign banks and other financial
institutions maintain adequate records of transaction and
account information relating to any foreign terrorist
organization (as designated under section 219 of the Immigration
and Nationality Act), any person who is a member or
representative of any such organization, or any person engaged
in money laundering or financial or other crimes; and
(2) establish a mechanism whereby such records may be made
available to United States law enforcement officials and
domestic financial institution supervisors, when appropriate.
Subtitle B--Bank Secrecy Act Amendments and Related Improvements
SEC. 351. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS ACTIVITIES.
(a) Amendment Relating to Civil Liability Immunity for
Disclosures.--Section 5318(g)(3) of title 31, United States Code, is
amended to read as follows:
``(3) Liability for disclosures.--
``(A) In general.--Any financial institution that
makes a voluntary disclosure of any possible violation
of law or regulation to a government agency or makes a
disclosure
[[Page 115 STAT. 321]]
pursuant to this subsection or any other authority, and
any director, officer, employee, or agent of such
institution who makes, or requires another to make any
such disclosure, shall not be liable to any person under
any law or regulation of the United States, any
constitution, law, or regulation of any State or
political subdivision of any State, or under any
contract or other legally enforceable agreement
(including any arbitration agreement), for such
disclosure or for any failure to provide notice of such
disclosure to the person who is the subject of such
disclosure or any other person identified in the
disclosure.
``(B) Rule of construction.--Subparagraph (A) shall
not be construed as creating--
``(i) any inference that the term `person', as
used in such subparagraph, may be construed more
broadly than its ordinary usage so as to include
any government or agency of government; or
``(ii) any immunity against, or otherwise
affecting, any civil or criminal action brought by
any government or agency of government to enforce
any constitution, law, or regulation of such
government or agency.''.
(b) Prohibition on Notification of Disclosures.--Section 5318(g)(2)
of title 31, United States Code, is amended to read as follows:
``(2) Notification prohibited.--
``(A) In general.--If a financial institution or any
director, officer, employee, or agent of any financial
institution, voluntarily or pursuant to this section or
any other authority, reports a suspicious transaction to
a government agency--
``(i) the financial institution, director,
officer, employee, or agent may not notify any
person involved in the transaction that the
transaction has been reported; and
``(ii) no officer or employee of the Federal
Government or of any State, local, tribal, or
territorial government within the United States,
who has any knowledge that such report was made
may disclose to any person involved in the
transaction that the transaction has been
reported, other than as necessary to fulfill the
official duties of such officer or employee.
``(B) Disclosures in certain employment
references.--
``(i) Rule of construction.--Notwithstanding
the application of subparagraph (A) in any other
context, subparagraph (A) shall not be construed
as prohibiting any financial institution, or any
director, officer, employee, or agent of such
institution, from including information that was
included in a report to which subparagraph (A)
applies--
``(I) in a written employment
reference that is provided in accordance
with section 18(w) of the Federal
Deposit Insurance Act in response to a
request from another financial
institution; or
``(II) in a written termination
notice or employment reference that is
provided in accordance with
[[Page 115 STAT. 322]]
the rules of a self-regulatory
organization registered with the
Securities and Exchange Commission or
the Commodity Futures Trading
Commission,
except that such written reference or notice may
not disclose that such information was also
included in any such report, or that such report
was made.
``(ii) Information not required.--Clause (i)
shall not be construed, by itself, to create any
affirmative duty to include any information
described in clause (i) in any employment
reference or termination notice referred to in
clause (i).''.
SEC. 352. ANTI-MONEY LAUNDERING PROGRAMS.
(a) In General.--Section 5318(h) of title 31, United States Code, is
amended to read as follows:
``(h) Anti-money Laundering Programs.--
``(1) In general.--In order to guard against money
laundering through financial institutions, each financial
institution shall establish anti-money laundering programs,
including, at a minimum--
``(A) the development of internal policies,
procedures, and controls;
``(B) the designation of a compliance officer;
``(C) an ongoing employee training program; and
``(D) an independent audit function to test
programs.
``(2) Regulations.--The Secretary of the Treasury, after
consultation with the appropriate Federal functional regulator
(as defined in section 509 of the Gramm-Leach-Bliley Act), may
prescribe minimum standards for programs established under
paragraph (1), and may exempt from the application of those
standards any financial institution that is not subject to the
provisions of the rules contained in part 103 of title 31, of
the Code of Federal Regulations, or any successor rule thereto,
for so long as such financial institution is not subject to the
provisions of such rules.''.
(b) Effective <<NOTE: 31 USC 5318 note.>> Date.--The amendment made
by subsection (a) shall take effect at the end of the 180-day period
beginning on the date of enactment of this Act.
(c) Date <<NOTE: 31 USC 5318 note.>> of Application of Regulations;
Factors to Be Taken Into Account.--Before the end of the 180-day period
beginning on the date of enactment of this Act, the Secretary shall
prescribe regulations that consider the extent to which the requirements
imposed under this section are commensurate with the size, location, and
activities of the financial institutions to which such regulations
apply.
SEC. 353. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING ORDERS AND
CERTAIN RECORDKEEPING REQUIREMENTS, AND LENGTHENING
EFFECTIVE PERIOD OF GEOGRAPHIC TARGETING ORDERS.
(a) Civil Penalty for Violation of Targeting Order.--Section
5321(a)(1) of title 31, United States Code, is amended--
(1) by inserting ``or order issued'' after ``subchapter or a
regulation prescribed''; and
(2) by inserting ``, or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance Act
[[Page 115 STAT. 323]]
or section 123 of Public Law 91-508,'' after ``sections 5314 and
5315)''.
(b) Criminal Penalties for Violation of Targeting Order.--Section
5322 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``or order issued'' after
``willfully violating this subchapter or a regulation
prescribed''; and
(B) by inserting ``, or willfully violating a
regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-
508,'' after ``under section 5315 or 5324)''; and
(2) in subsection (b)--
(A) by inserting ``or order issued'' after
``willfully violating this subchapter or a regulation
prescribed''; and
(B) by inserting ``or willfully violating a
regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-
508,'' after ``under section 5315 or 5324),''.
(c) Structuring Transactions To Evade Targeting Order or Certain
Recordkeeping Requirements.--Section 5324(a) of title 31, United States
Code, is amended--
(1) by inserting a comma after ``shall'';
(2) by striking ``section--'' and inserting ``section, the
reporting or recordkeeping requirements imposed by any order
issued under section 5326, or the recordkeeping requirements
imposed by any regulation prescribed under section 21 of the
Federal Deposit Insurance Act or section 123 of Public Law 91-
508--'';
(3) in paragraph (1), by inserting ``, to file a report or
to maintain a record required by an order issued under section
5326, or to maintain a record required pursuant to any
regulation prescribed under section 21 of the Federal Deposit
Insurance Act or section 123 of Public Law 91-508'' after
``regulation prescribed under any such section''; and
(4) in paragraph (2), by inserting ``, to file a report or
to maintain a record required by any order issued under section
5326, or to maintain a record required pursuant to any
regulation prescribed under section 5326, or to maintain a
record required pursuant to any regulation prescribed under
section 21 of the Federal Deposit Insurance Act or section 123
of Public Law 91-508,'' after ``regulation prescribed under any
such section''.
(d) Lengthening Effective Period of Geographic Targeting Orders.--
Section 5326(d) of title 31, United States Code, is amended by striking
``more than 60'' and inserting ``more than 180''.
SEC. 354. ANTI-MONEY LAUNDERING STRATEGY.
Section 5341(b) of title 31, United States Code, is amended by
adding at the end the following:
``(12) Data regarding funding of terrorism.--Data concerning
money laundering efforts related to the funding of acts of
international terrorism, and efforts directed at the prevention,
detection, and prosecution of such funding.''.
[[Page 115 STAT. 324]]
SEC. 355. AUTHORIZATION TO INCLUDE SUSPICIONS OF ILLEGAL ACTIVITY IN
WRITTEN EMPLOYMENT REFERENCES.
Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is
amended by adding at the end the following:
``(w) Written Employment References May Contain Suspicions of
Involvement in Illegal Activity.--
``(1) Authority to disclose information.--Notwithstanding
any other provision of law, any insured depository institution,
and any director, officer, employee, or agent of such
institution, may disclose in any written employment reference
relating to a current or former institution-affiliated party of
such institution which is provided to another insured depository
institution in response to a request from such other
institution, information concerning the possible involvement of
such institution-affiliated party in potentially unlawful
activity.
``(2) Information not required.--Nothing in paragraph (1)
shall be construed, by itself, to create any affirmative duty to
include any information described in paragraph (1) in any
employment reference referred to in paragraph (1).
``(3) Malicious intent.--Notwithstanding any other provision
of this subsection, voluntary disclosure made by an insured
depository institution, and any director, officer, employee, or
agent of such institution under this subsection concerning
potentially unlawful activity that is made with malicious
intent, shall not be shielded from liability from the person
identified in the disclosure.
``(4) Definition.--For purposes of this subsection, the term
`insured depository institution' includes any uninsured branch
or agency of a foreign bank.''.
SEC. 356. REPORTING OF SUSPICIOUS ACTIVITIES BY SECURITIES BROKERS AND
DEALERS; INVESTMENT COMPANY STUDY.
(a) Deadline <<NOTE: 31 USC 5318 note.>> for Suspicious Activity
Reporting Requirements for Registered Brokers
and <<NOTE: Regulations.3Federal Register, publication.>> Dealers.--The
Secretary, after consultation with the Securities and Exchange
Commission and the Board of Governors of the Federal Reserve System,
shall publish proposed regulations in the Federal Register before
January 1, 2002, requiring brokers and dealers registered with the
Securities and Exchange Commission under the Securities Exchange Act of
1934 to submit suspicious activity reports under section 5318(g) of
title 31, United States Code. Such regulations shall be published in
final form not later than July 1, 2002.
(b) Suspicious <<NOTE: 31 USC 5318 note.>> Activity Reporting
Requirements For Futures Commission Merchants, Commodity Trading
Advisors, and Commodity Pool Operators.--The Secretary, in consultation
with the Commodity Futures Trading Commission, may prescribe regulations
requiring futures commission merchants, commodity trading advisors, and
commodity pool operators registered under the Commodity Exchange Act to
submit suspicious activity reports under section 5318(g) of title 31,
United States Code.
(c) Report <<NOTE: 31 USC 5311 note.>> on Investment Companies.--
(1) In <<NOTE: Deadline.>> general.--Not later than 1 year
after the date of enactment of this Act, the Secretary, the
Board of Governors of the Federal Reserve System, and the
Securities and Exchange Commission shall jointly submit a report
to the Congress on recommendations for effective regulations to
apply the requirements of subchapter II of chapter 53 of title
31,
[[Page 115 STAT. 325]]
United States Code, to investment companies pursuant to section
5312(a)(2)(I) of title 31, United States Code.
(2) Definition.--For purposes of this subsection, the term
``investment company''--
(A) has the same meaning as in section 3 of the
Investment Company Act of 1940 (15 U.S.C. 80a-3); and
(B) includes any person that, but for the exceptions
provided for in paragraph (1) or (7) of section 3(c) of
the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)),
would be an investment company.
(3) Additional recommendations.--The report required by
paragraph (1) may make different recommendations for different
types of entities covered by this subsection.
(4) Beneficial ownership of personal holding companies.--The
report described in paragraph (1) shall also include
recommendations as to whether the Secretary should promulgate
regulations to treat any corporation or business or other
grantor trust whose assets are predominantly securities, bank
certificates of deposit, or other securities or investment
instruments (other than such as relate to operating subsidiaries
of such corporation or trust) and that has 5 or fewer common
shareholders or holders of beneficial or other equity interest,
as a financial institution within the meaning of that phrase in
section 5312(a)(2)(I) and whether to require such corporations
or trusts to disclose their beneficial owners when opening
accounts or initiating funds transfers at any domestic financial
institution.
SEC. 357. SPECIAL REPORT ON ADMINISTRATION OF BANK SECRECY PROVISIONS.
(a) Report <<NOTE: Deadline.>> Required.--Not later than 6 months
after the date of enactment of this Act, the Secretary shall submit a
report to the Congress relating to the role of the Internal Revenue
Service in the administration of subchapter II of chapter 53 of title
31, United States Code (commonly known as the ``Bank Secrecy Act'').
(b) Contents.--The report required by subsection (a)--
(1) shall specifically address, and contain recommendations
concerning--
(A) whether it is advisable to shift the processing
of information reporting to the Department of the
Treasury under the Bank Secrecy Act provisions to
facilities other than those managed by the Internal
Revenue Service; and
(B) whether it remains reasonable and efficient, in
light of the objective of both anti-money-laundering
programs and Federal tax administration, for the
Internal Revenue Service to retain authority and
responsibility for audit and examination of the
compliance of money services businesses and gaming
institutions with those Bank Secrecy Act provisions; and
(2) shall, if the Secretary determines that the information
processing responsibility or the audit and examination
responsibility of the Internal Revenue Service, or both, with
respect to those Bank Secrecy Act provisions should be
transferred to other agencies, include the specific
recommendations of the Secretary regarding the agency or
agencies to which any such function should be transferred,
complete with a budgetary and resources plan for expeditiously
accomplishing the transfer.
[[Page 115 STAT. 326]]
SEC. 358. BANK SECRECY PROVISIONS AND ACTIVITIES OF UNITED STATES
INTELLIGENCE AGENCIES TO FIGHT INTERNATIONAL TERRORISM.
(a) Amendment Relating to the Purposes of Chapter 53 of Title 31,
United States Code.--Section 5311 of title 31, United States Code, is
amended by inserting before the period at the end the following: ``, or
in the conduct of intelligence or counterintelligence activities,
including analysis, to protect against international terrorism''.
(b) Amendment Relating to Reporting of Suspicious Activities.--
Section 5318(g)(4)(B) of title 31, United States Code, is amended by
striking ``or supervisory agency'' and inserting ``, supervisory agency,
or United States intelligence agency for use in the conduct of
intelligence or counterintelligence activities, including analysis, to
protect against international terrorism''.
(c) Amendment Relating to Availability of Reports.--Section 5319 of
title 31, United States Code, is amended to read as follows:
``Sec. 5319. Availability of reports
``The Secretary of the Treasury shall make information in a report
filed under this subchapter available to an agency, including any State
financial institutions supervisory agency, United States intelligence
agency or self-regulatory organization registered with the Securities
and Exchange Commission or the Commodity Futures Trading Commission,
upon request of the head of the agency or organization. The report shall
be available for a purpose that is consistent with this subchapter. The
Secretary may only require reports on the use of such information by any
State financial institutions supervisory agency for other than
supervisory purposes or by United States intelligence agencies. However,
a report and records of reports are exempt from disclosure under section
552 of title 5.''.
(d) Amendment Relating to the Purposes of the Bank Secrecy Act
Provisions.--Section 21(a) of the Federal Deposit Insurance Act (12
U.S.C. 1829b(a)) is amended to read as follows:
``(a) Congressional Findings and Declaration of Purpose.--
``(1) Findings.--Congress finds that--
``(A) adequate records maintained by insured
depository institutions have a high degree of usefulness
in criminal, tax, and regulatory investigations or
proceedings, and that, given the threat posed to the
security of the Nation on and after the terrorist
attacks against the United States on September 11, 2001,
such records may also have a high degree of usefulness
in the conduct of intelligence or counterintelligence
activities, including analysis, to protect against
domestic and international terrorism; and
``(B) microfilm or other reproductions and other
records made by insured depository institutions of
checks, as well as records kept by such institutions, of
the identity of persons maintaining or authorized to act
with respect to accounts therein, have been of
particular value in proceedings described in
subparagraph (A).
``(2) Purpose.--It is the purpose of this section to require
the maintenance of appropriate types of records by insured
depository institutions in the United States where such records
[[Page 115 STAT. 327]]
have a high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings, recognizes that, given the threat
posed to the security of the Nation on and after the terrorist
attacks against the United States on September 11, 2001, such
records may also have a high degree of usefulness in the conduct
of intelligence or counterintelligence activities, including
analysis, to protect against international terrorism.''.
(e) Amendment Relating to the Purposes of the Bank Secrecy Act.--
Section 123(a) of Public Law 91-508 (12 U.S.C. 1953(a)) is amended to
read as follows:
``(a) Regulations.--If the Secretary determines that the maintenance
of appropriate records and procedures by any uninsured bank or uninsured
institution, or any person engaging in the business of carrying on in
the United States any of the functions referred to in subsection (b),
has a high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings, and that, given the threat posed to the
security of the Nation on and after the terrorist attacks against the
United States on September 11, 2001, such records may also have a high
degree of usefulness in the conduct of intelligence or
counterintelligence activities, including analysis, to protect against
international terrorism, he may by regulation require such bank,
institution, or person.''.
(f) Amendments to the Right to Financial Privacy Act.--The Right to
Financial Privacy Act of 1978 is amended--
(1) in section 1112(a) (12 U.S.C. 3412(a)), by inserting ``,
or intelligence or counterintelligence activity, investigation
or analysis related to international terrorism'' after
``legitimate law enforcement inquiry'';
(2) in section 1114(a)(1) (12 U.S.C. 3414(a)(1))--
(A) in subparagraph (A), by striking ``or'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(C) a Government authority authorized to conduct
investigations of, or intelligence or
counterintelligence analyses related to, international
terrorism for the purpose of conducting such
investigations or analyses.''; and
(3) in section 1120(a)(2) (12 U.S.C. 3420(a)(2)), by
inserting ``, or for a purpose authorized by section 1112(a)''
before the semicolon at the end.
(g) Amendment to the Fair Credit Reporting Act.--
(1) In general.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended--
(A) by redesignating the second of the 2 sections
designated as section 624 (15 U.S.C. 1681u) (relating to
disclosure to FBI for counterintelligence purposes) as
section 625; and
(B) by adding at the end the following new section:
``Sec. 626. <<NOTE: 15 USC 1681v.>> Disclosures to governmental agencies
for counterterrorism purposes
``(a) Disclosure.--Notwithstanding section 604 or any other
provision of this title, a consumer reporting agency shall furnish a
consumer report of a consumer and all other information in a consumer's
file to a government agency authorized to conduct investigations of, or
intelligence or counterintelligence activities or analysis related to,
international terrorism when presented with
[[Page 115 STAT. 328]]
a written certification by such government agency that such information
is necessary for the agency's conduct or such investigation, activity or
analysis.
``(b) Form of Certification.--The certification described in
subsection (a) shall be signed by a supervisory official designated by
the head of a Federal agency or an officer of a Federal agency whose
appointment to office is required to be made by the President, by and
with the advice and consent of the Senate.
``(c) Confidentiality.--No consumer reporting agency, or officer,
employee, or agent of such consumer reporting agency, shall disclose to
any person, or specify in any consumer report, that a government agency
has sought or obtained access to information under subsection (a).
``(d) Rule of Construction.--Nothing in section 625 shall be
construed to limit the authority of the Director of the Federal Bureau
of Investigation under this section.
``(e) Safe Harbor.--Notwithstanding any other provision of this
title, any consumer reporting agency or agent or employee thereof making
disclosure of consumer reports or other information pursuant to this
section in good-faith reliance upon a certification of a governmental
agency pursuant to the provisions of this section shall not be liable to
any person for such disclosure under this subchapter, the constitution
of any State, or any law or regulation of any State or any political
subdivision of any State.''.
(2) Clerical amendments.--The table of sections for the Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
(A) by redesignating the second of the 2 items
designated as section 624 as section 625; and
(B) by inserting after the item relating to section
625 (as so redesignated) the following new item:
``626. Disclosures to governmental agencies for counterterrorism
purposes.''.
(h) Application <<NOTE: 12 USC 1829b note.>> of Amendments.--The
amendments made by this section shall apply with respect to reports
filed or records maintained on, before, or after the date of enactment
of this Act.
SEC. 359. REPORTING OF SUSPICIOUS ACTIVITIES BY UNDERGROUND BANKING
SYSTEMS.
(a) Definition for Subchapter.--Section 5312(a)(2)(R) of title 31,
United States Code, is amended to read as follows:
``(R) a licensed sender of money or any other person
who engages as a business in the transmission of funds,
including any person who engages as a business in an
informal money transfer system or any network of people
who engage as a business in facilitating the transfer of
money domestically or internationally outside of the
conventional financial institutions system;''.
(b) Money Transmitting Business.--Section 5330(d)(1)(A) of title 31,
United States Code, is amended by inserting before the semicolon the
following: ``or any other person who engages as a business in the
transmission of funds, including any person who engages as a business in
an informal money transfer system or any network of people who engage as
a business in facilitating the transfer of money domestically or
internationally outside of the conventional financial institutions
system;''.
(c) Applicability of Rules.--Section 5318 of title 31, United States
Code, as amended by this title, is amended by adding at the end the
following:
[[Page 115 STAT. 329]]
``(l) Applicability of Rules.--Any rules promulgated pursuant to the
authority contained in section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b) shall apply, in addition to any other financial
institution to which such rules apply, to any person that engages as a
business in the transmission of funds, including any person who engages
as a business in an informal money transfer system or any network of
people who engage as a business in facilitating the transfer of money
domestically or internationally outside of the conventional financial
institutions system.''.
(d) Report.--Not <<NOTE: Deadline. 31 USC 5311 note.>> later than 1
year after the date of enactment of this Act, the Secretary of the
Treasury shall report to Congress on the need for any additional
legislation relating to persons who engage as a business in an informal
money transfer system or any network of people who engage as a business
in facilitating the transfer of money domestically or internationally
outside of the conventional financial institutions system, counter money
laundering and regulatory controls relating to underground money
movement and banking systems, including whether the threshold for the
filing of suspicious activity reports under section 5318(g) of title 31,
United States Code should be lowered in the case of such systems.
SEC. 360. <<NOTE: 22 USC 262p-4r.>> USE OF AUTHORITY OF UNITED STATES
EXECUTIVE DIRECTORS.
(a) Action by the President.--If the President determines that a
particular foreign country has taken or has committed to take actions
that contribute to efforts of the United States to respond to, deter, or
prevent acts of international terrorism, the Secretary may, consistent
with other applicable provisions of law, instruct the United States
Executive Director of each international financial institution to use
the voice and vote of the Executive Director to support any loan or
other utilization of the funds of respective institutions for such
country, or any public or private entity within such country.
(b) Use of Voice and Vote.--The Secretary may instruct the United
States Executive Director of each international financial institution to
aggressively use the voice and vote of the Executive Director to require
an auditing of disbursements at such institutions to ensure that no
funds are paid to persons who commit, threaten to commit, or support
terrorism.
(c) Definition.--For purposes of this section, the term
``international financial institution'' means an institution described
in section 1701(c)(2) of the International Financial Institutions Act
(22 U.S.C. 262r(c)(2)).
SEC. 361. FINANCIAL CRIMES ENFORCEMENT NETWORK.
(a) In General.--Subchapter I of chapter 3 of title 31, United
States Code, is amended--
(1) by redesignating section 310 as section 311; and
(2) by inserting after section 309 the following new
section:
``Sec. 310. Financial Crimes Enforcement Network
``(a) In General.--The Financial Crimes Enforcement Network
established by order of the Secretary of the Treasury (Treasury Order
Numbered 105-08, in this section referred to as `FinCEN') on April 25,
1990, shall be a bureau in the Department of the Treasury.
``(b) Director.--
[[Page 115 STAT. 330]]
``(1) Appointment.--The head of FinCEN shall be the
Director, who shall be appointed by the Secretary of the
Treasury.
``(2) Duties and powers.--The duties and powers of the
Director are as follows:
``(A) Advise and make recommendations on matters
relating to financial intelligence, financial criminal
activities, and other financial activities to the Under
Secretary of the Treasury for Enforcement.
``(B) Maintain a government-wide data access
service, with access, in accordance with applicable
legal requirements, to the following:
``(i) Information collected by the Department
of the Treasury, including report information
filed under subchapter II of chapter 53 of this
title (such as reports on cash transactions,
foreign financial agency transactions and
relationships, foreign currency transactions,
exporting and importing monetary instruments, and
suspicious activities), chapter 2 of title I of
Public Law 91-508, and section 21 of the Federal
Deposit Insurance Act.
``(ii) Information regarding national and
international currency flows.
``(iii) Other records and data maintained by
other Federal, State, local, and foreign agencies,
including financial and other records developed in
specific cases.
``(iv) Other privately and publicly available
information.
``(C) Analyze and disseminate the available data in
accordance with applicable legal requirements and
policies and guidelines established by the Secretary of
the Treasury and the Under Secretary of the Treasury for
Enforcement to--
``(i) identify possible criminal activity to
appropriate Federal, State, local, and foreign law
enforcement agencies;
``(ii) support ongoing criminal financial
investigations and prosecutions and related
proceedings, including civil and criminal tax and
forfeiture proceedings;
``(iii) identify possible instances of
noncompliance with subchapter II of chapter 53 of
this title, chapter 2 of title I of Public Law 91-
508, and section 21 of the Federal Deposit
Insurance Act to Federal agencies with statutory
responsibility for enforcing compliance with such
provisions and other appropriate Federal
regulatory agencies;
``(iv) evaluate and recommend possible uses of
special currency reporting requirements under
section 5326;
``(v) determine emerging trends and methods in
money laundering and other financial crimes;
``(vi) support the conduct of intelligence or
counterintelligence activities, including
analysis, to protect against international
terrorism; and
``(vii) support government initiatives against
money laundering.
[[Page 115 STAT. 331]]
``(D) Establish and maintain a financial crimes
communications center to furnish law enforcement
authorities with intelligence information related to
emerging or ongoing investigations and undercover
operations.
``(E) Furnish research, analytical, and
informational services to financial institutions,
appropriate Federal regulatory agencies with regard to
financial institutions, and appropriate Federal, State,
local, and foreign law enforcement authorities, in
accordance with policies and guidelines established by
the Secretary of the Treasury or the Under Secretary of
the Treasury for Enforcement, in the interest of
detection, prevention, and prosecution of terrorism,
organized crime, money laundering, and other financial
crimes.
``(F) Assist Federal, State, local, and foreign law
enforcement and regulatory authorities in combatting the
use of informal, nonbank networks and payment and barter
system mechanisms that permit the transfer of funds or
the equivalent of funds without records and without
compliance with criminal and tax laws.
``(G) Provide computer and data support and data
analysis to the Secretary of the Treasury for tracking
and controlling foreign assets.
``(H) Coordinate with financial intelligence units
in other countries on anti-terrorism and anti-money
laundering initiatives, and similar efforts.
``(I) Administer the requirements of subchapter II
of chapter 53 of this title, chapter 2 of title I of
Public Law 91-508, and section 21 of the Federal Deposit
Insurance Act, to the extent delegated such authority by
the Secretary of the Treasury.
``(J) Such other duties and powers as the Secretary
of the Treasury may delegate or prescribe.
``(c) Requirements Relating to Maintenance and Use of Data Banks.--
The Secretary of the Treasury shall establish and maintain operating
procedures with respect to the government-wide data access service and
the financial crimes communications center maintained by FinCEN which
provide--
``(1) for the coordinated and efficient transmittal of
information to, entry of information into, and withdrawal of
information from, the data maintenance system maintained by the
Network, including--
``(A) the submission of reports through the Internet
or other secure network, whenever possible;
``(B) the cataloguing of information in a manner
that facilitates rapid retrieval by law enforcement
personnel of meaningful data; and
``(C) a procedure that provides for a prompt initial
review of suspicious activity reports and other reports,
or such other means as the Secretary may provide, to
identify information that warrants immediate action; and
``(2) in accordance with section 552a of title 5 and the
Right to Financial Privacy Act of 1978, appropriate standards
and guidelines for determining--
``(A) who is to be given access to the information
maintained by the Network;
``(B) what limits are to be imposed on the use of
such information; and
[[Page 115 STAT. 332]]
``(C) how information about activities or
relationships which involve or are closely associated
with the exercise of constitutional rights is to be
screened out of the data maintenance system.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated for FinCEN such sums as may be necessary for fiscal years
2002, 2003, 2004, and 2005.''.
(b) Compliance <<NOTE: 31 USC 5314 note.>> With Reporting
Requirements.--The Secretary of the Treasury shall study methods for
improving compliance with the reporting requirements established in
section 5314 of title 31, United States Code, and shall submit a report
on such study to the Congress by the end of the 6-month period beginning
on the date of enactment of this Act and each 1-year period thereafter.
The initial report shall include historical data on compliance with such
reporting requirements.
(c) Clerical Amendment.--The table of sections for subchapter I of
chapter 3 of title 31, United States Code, is amended--
(1) by redesignating the item relating to section 310 as
section 311; and
(2) by inserting after the item relating to section 309 the
following new item:
``310. Financial Crimes Enforcement Network.''.
SEC. 362. <<NOTE: 31 USC 310 note.>> ESTABLISHMENT OF HIGHLY SECURE
NETWORK.
(a) In General.--The Secretary shall establish a highly secure
network in the Financial Crimes Enforcement Network that--
(1) allows financial institutions to file reports required
under subchapter II or III of chapter 53 of title 31, United
States Code, chapter 2 of Public Law 91-508, or section 21 of
the Federal Deposit Insurance Act through the secure network;
and
(2) provides financial institutions with alerts and other
information regarding suspicious activities that warrant
immediate and enhanced scrutiny.
(b) Expedited Development.--The Secretary shall take such action as
may be necessary to ensure that the secure network required under
subsection (a) is fully operational before the end of the 9-month period
beginning on the date of enactment of this Act.
SEC. 363. INCREASE IN CIVIL AND CRIMINAL PENALTIES FOR MONEY LAUNDERING.
(a) Civil Penalties.--Section 5321(a) of title 31, United States
Code, is amended by adding at the end the following:
``(7) Penalties for international counter money laundering
violations.--The Secretary may impose a civil money penalty in
an amount equal to not less than 2 times the amount of the
transaction, but not more than $1,000,000, on any financial
institution or agency that violates any provision of subsection
(i) or (j) of section 5318 or any special measures imposed under
section 5318A.''.
(b) Criminal Penalties.--Section 5322 of title 31, United States
Code, is amended by adding at the end the following:
``(d) A financial institution or agency that violates any provision
of subsection (i) or (j) of section 5318, or any special measures
imposed under section 5318A, or any regulation prescribed under
subsection (i) or (j) of section 5318 or section 5318A, shall be
[[Page 115 STAT. 333]]
fined in an amount equal to not less than 2 times the amount of the
transaction, but not more than $1,000,000.''.
SEC. 364. UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE FACILITIES.
Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended by
adding at the end the following:
``(q) Uniform Protection Authority for Federal Reserve Facilities.--
``(1) Notwithstanding any other provision of law, to
authorize personnel to act as law enforcement officers to
protect and safeguard the premises, grounds, property,
personnel, including members of the Board, of the Board, or any
Federal reserve bank, and operations conducted by or on behalf
of the Board or a reserve bank.
``(2) The Board may, subject to the regulations prescribed
under paragraph (5), delegate authority to a Federal reserve
bank to authorize personnel to act as law enforcement officers
to protect and safeguard the bank's premises, grounds, property,
personnel, and operations conducted by or on behalf of the bank.
``(3) Law enforcement officers designated or authorized by
the Board or a reserve bank under paragraph (1) or (2) are
authorized while on duty to carry firearms and make arrests
without warrants for any offense against the United States
committed in their presence, or for any felony cognizable under
the laws of the United States committed or being committed
within the buildings and grounds of the Board or a reserve bank
if they have reasonable grounds to believe that the person to be
arrested has committed or is committing such a felony. Such
officers shall have access to law enforcement information that
may be necessary for the protection of the property or personnel
of the Board or a reserve bank.
``(4) For purposes of this subsection, the term `law
enforcement officers' means personnel who have successfully
completed law enforcement training and are authorized to carry
firearms and make arrests pursuant to this subsection.
``(5) The law enforcement authorities provided for in this
subsection may be exercised only pursuant to regulations
prescribed by the Board and approved by the Attorney General.''.
SEC. 365. REPORTS RELATING TO COINS AND CURRENCY RECEIVED IN
NONFINANCIAL TRADE OR BUSINESS.
(a) Reports Required.--Subchapter II of chapter 53 of title 31,
United States Code, is amended by adding at the end the following new
section:
``Sec. 5331. Reports relating to coins and currency received in
nonfinancial trade or business
``(a) Coin and Currency Receipts of More Than $10,000.--Any person--
``(1) who is engaged in a trade or business; and
``(2) who, in the course of such trade or business, receives
more than $10,000 in coins or currency in 1 transaction (or 2 or
more related transactions),
shall file a report described in subsection (b) with respect to such
transaction (or related transactions) with the Financial Crimes
[[Page 115 STAT. 334]]
Enforcement Network at such time and in such manner as the Secretary
may, by regulation, prescribe.
``(b) Form and Manner of Reports.--A report is described in this
subsection if such report--
``(1) is in such form as the Secretary may prescribe;
``(2) contains--
``(A) the name and address, and such other
identification information as the Secretary may require,
of the person from whom the coins or currency was
received;
``(B) the amount of coins or currency received;
``(C) the date and nature of the transaction; and
``(D) such other information, including the
identification of the person filing the report, as the
Secretary may prescribe.
``(c) Exceptions.--
``(1) Amounts received by financial institutions.--
Subsection (a) shall not apply to amounts received in a
transaction reported under section 5313 and regulations
prescribed under such section.
``(2) Transactions occurring outside the united states.--
Except to the extent provided in regulations prescribed by the
Secretary, subsection (a) shall not apply to any transaction if
the entire transaction occurs outside the United States.
``(d) Currency Includes Foreign Currency and Certain Monetary
Instruments.--
``(1) In general.--For purposes of this section, the term
`currency' includes--
``(A) foreign currency; and
``(B) to the extent provided in regulations
prescribed by the Secretary, any monetary instrument
(whether or not in bearer form) with a face amount of
not more than $10,000.
``(2) Scope of application.--Paragraph (1)(B) shall not
apply to any check drawn on the account of the writer in a
financial institution referred to in subparagraph (A), (B), (C),
(D), (E), (F), (G), (J), (K), (R), or (S) of section
5312(a)(2).''.
(b) Prohibition on Structuring Transactions.--
(1) In general.--Section 5324 of title 31, United States
Code, is amended--
(A) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(B) by inserting after subsection (a) the following
new subsection:
``(b) Domestic Coin and Currency Transactions Involving Nonfinancial
Trades or Businesses.--No person shall, for the purpose of evading the
report requirements of section 5333 or any regulation prescribed under
such section--
``(1) cause or attempt to cause a nonfinancial trade or
business to fail to file a report required under section 5333 or
any regulation prescribed under such section;
``(2) cause or attempt to cause a nonfinancial trade or
business to file a report required under section 5333 or any
regulation prescribed under such section that contains a
material omission or misstatement of fact; or
[[Page 115 STAT. 335]]
``(3) structure or assist in structuring, or attempt to
structure or assist in structuring, any transaction with 1 or
more nonfinancial trades or businesses.''.
(2) Technical and conforming amendments.--
(A) The heading for subsection (a) of section 5324
of title 31, United States Code, is amended by inserting
``Involving Financial Institutions'' after
``Transactions''.
(B) Section 5317(c) of title 31, United States Code,
is amended by striking ``5324(b)'' and inserting
``5324(c)''.
(c) Definition of Nonfinancial Trade or Business.--
(1) In general.--Section 5312(a) of title 31, United States
Code, is amended--
(A) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(B) by inserting after paragraph (3) the following
new paragraph:
``(4) Nonfinancial trade or business.--The term
`nonfinancial trade or business' means any trade or business
other than a financial institution that is subject to the
reporting requirements of section 5313 and regulations
prescribed under such section.''.
(2) Technical and conforming amendments.--
(A) Section 5312(a)(3)(C) of title 31, United States
Code, is amended by striking ``section 5316,'' and
inserting ``sections 5333 and 5316,''.
(B) Subsections (a) through (f) of section 5318 of
title 31, United States Code, and sections 5321, 5326,
and 5328 of such title are each amended--
(i) by inserting ``or nonfinancial trade or
business'' after ``financial institution'' each
place such term appears; and
(ii) by inserting ``or nonfinancial trades or
businesses'' after ``financial institutions'' each
place such term appears.
(c) Clerical Amendment.--The table of sections for chapter 53 of
title 31, United States Code, is amended by inserting after the item
relating to section 5332 (as added by section 112 of this title) the
following new item:
``5331. Reports relating to coins and currency received in nonfinancial
trade or business.''.
(f) Regulations.--Regulations <<NOTE: Publication. 31 USC 5331
note.>> which the Secretary determines are necessary to implement this
section shall be published in final form before the end of the 6-month
period beginning on the date of enactment of this Act.
SEC. 366. <<NOTE: 31 USC 5313 note.>> EFFICIENT USE OF CURRENCY
TRANSACTION REPORT SYSTEM.
(a) Findings.--The Congress finds the following:
(1) The Congress established the currency transaction
reporting requirements in 1970 because the Congress found then
that such reports have a high degree of usefulness in criminal,
tax, and regulatory investigations and proceedings and the
usefulness of such reports has only increased in the years since
the requirements were established.
(2) In 1994, in response to reports and testimony that
excess amounts of currency transaction reports were interfering
[[Page 115 STAT. 336]]
with effective law enforcement, the Congress reformed the
currency transaction report exemption requirements to provide--
(A) mandatory exemptions for certain reports that
had little usefulness for law enforcement, such as cash
transfers between depository institutions and cash
deposits from government agencies; and
(B) discretionary authority for the Secretary of the
Treasury to provide exemptions, subject to criteria and
guidelines established by the Secretary, for financial
institutions with regard to regular business customers
that maintain accounts at an institution into which
frequent cash deposits are made.
(3) Today there is evidence that some financial institutions
are not utilizing the exemption system, or are filing reports
even if there is an exemption in effect, with the result that
the volume of currency transaction reports is once again
interfering with effective law enforcement.
(b) Study and Report.--
(1) Study required.--The Secretary shall conduct a study
of--
(A) the possible expansion of the statutory
exemption system in effect under section 5313 of title
31, United States Code; and
(B) methods for improving financial institution
utilization of the statutory exemption provisions as a
way of reducing the submission of currency transaction
reports that have little or no value for law enforcement
purposes, including improvements in the systems in
effect at financial institutions for regular review of
the exemption procedures used at the institution and the
training of personnel in its effective use.
(2) Report required.--The Secretary of the Treasury shall
submit a report to the Congress before the end of the 1-year
period beginning on the date of enactment of this Act containing
the findings and conclusions of the Secretary with regard to the
study required under subsection (a), and such recommendations
for legislative or administrative action as the Secretary
determines to be appropriate.
Subtitle C--Currency Crimes and Protection
SEC. 371. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED STATES.
(a) Findings.--The <<NOTE: 31 USC 5332 note.>> Congress finds the
following:
(1) Effective enforcement of the currency reporting
requirements of subchapter II of chapter 53 of title 31, United
States Code, and the regulations prescribed under such
subchapter, has forced drug dealers and other criminals engaged
in cash-based businesses to avoid using traditional financial
institutions.
(2) In their effort to avoid using traditional financial
institutions, drug dealers and other criminals are forced to
move large quantities of currency in bulk form to and through
the airports, border crossings, and other ports of entry where
the currency can be smuggled out of the United States and
[[Page 115 STAT. 337]]
placed in a foreign financial institution or sold on the black
market.
(3) The transportation and smuggling of cash in bulk form
may now be the most common form of money laundering, and the
movement of large sums of cash is one of the most reliable
warning signs of drug trafficking, terrorism, money laundering,
racketeering, tax evasion and similar crimes.
(4) The intentional transportation into or out of the United
States of large amounts of currency or monetary instruments, in
a manner designed to circumvent the mandatory reporting
provisions of subchapter II of chapter 53 of title 31, United
States Code,, is the equivalent of, and creates the same harm
as, the smuggling of goods.
(5) The arrest and prosecution of bulk cash smugglers are
important parts of law enforcement's effort to stop the
laundering of criminal proceeds, but the couriers who attempt to
smuggle the cash out of the United States are typically low-
level employees of large criminal organizations, and thus are
easily replaced. Accordingly, only the confiscation of the
smuggled bulk cash can effectively break the cycle of criminal
activity of which the laundering of the bulk cash is a critical
part.
(6) The current penalties for violations of the currency
reporting requirements are insufficient to provide a deterrent
to the laundering of criminal proceeds. In particular, in cases
where the only criminal violation under current law is a
reporting offense, the law does not adequately provide for the
confiscation of smuggled currency. In contrast, if the smuggling
of bulk cash were itself an offense, the cash could be
confiscated as the corpus delicti of the smuggling offense.
(b) Purposes.--The <<NOTE: 31 USC 5332 note.>> purposes of this
section are--
(1) to make the act of smuggling bulk cash itself a criminal
offense;
(2) to authorize forfeiture of any cash or instruments of
the smuggling offense; and
(3) to emphasize the seriousness of the act of bulk cash
smuggling.
(c) Enactment of Bulk Cash Smuggling Offense.--Subchapter II of
chapter 53 of title 31, United States Code, is amended by adding at the
end the following:
``Sec. 5332. Bulk cash smuggling into or out of the United States
``(a) Criminal Offense.--
``(1) In general.--Whoever, with the intent to evade a
currency reporting requirement under section 5316, knowingly
conceals more than $10,000 in currency or other monetary
instruments on the person of such individual or in any
conveyance, article of luggage, merchandise, or other container,
and transports or transfers or attempts to transport or transfer
such currency or monetary instruments from a place within the
United States to a place outside of the United States, or from a
place outside the United States to a place within the United
States, shall be guilty of a currency smuggling offense and
subject to punishment pursuant to subsection (b).
``(2) Concealment on person.--For purposes of this section,
the concealment of currency on the person of any individual
includes concealment in any article of clothing worn
[[Page 115 STAT. 338]]
by the individual or in any luggage, backpack, or other
container worn or carried by such individual.
``(b) Penalty.--
``(1) Term of imprisonment.--A person convicted of a
currency smuggling offense under subsection (a), or a conspiracy
to commit such offense, shall be imprisoned for not more than 5
years.
``(2) Forfeiture.--In addition, the court, in imposing
sentence under paragraph (1), shall order that the defendant
forfeit to the United States, any property, real or personal,
involved in the offense, and any property traceable to such
property, subject to subsection (d) of this section.
``(3) Procedure.--The seizure, restraint, and forfeiture of
property under this section shall be governed by section 413 of
the Controlled Substances Act.
``(4) Personal money judgment.--If the property subject to
forfeiture under paragraph (2) is unavailable, and the defendant
has insufficient substitute property that may be forfeited
pursuant to section 413(p) of the Controlled Substances Act, the
court shall enter a personal money judgment against the
defendant for the amount that would be subject to forfeiture.
``(c) Civil Forfeiture.--
``(1) In general.--Any property involved in a violation of
subsection (a), or a conspiracy to commit such violation, and
any property traceable to such violation or conspiracy, may be
seized and, subject to subsection (d) of this section, forfeited
to the United States.
``(2) Procedure.--The seizure and forfeiture shall be
governed by the procedures governing civil forfeitures in money
laundering cases pursuant to section 981(a)(1)(A) of title 18,
United States Code.
``(3) Treatment of certain property as involved in the
offense.--For purposes of this subsection and subsection (b),
any currency or other monetary instrument that is concealed or
intended to be concealed in violation of subsection (a) or a
conspiracy to commit such violation, any article, container, or
conveyance used, or intended to be used, to conceal or transport
the currency or other monetary instrument, and any other
property used, or intended to be used, to facilitate the
offense, shall be considered property involved in the
offense.''.
(c) Clerical Amendment.--The table of sections for subchapter II of
chapter 53 of title 31, United States Code, is amended by inserting
after the item relating to section 5331, as added by this Act, the
following new item:
``5332. Bulk cash smuggling into or out of the United States.''.
SEC. 372. FORFEITURE IN CURRENCY REPORTING CASES.
(a) In General.--Subsection (c) of section 5317 of title 31, United
States Code, is amended to read as follows:
``(c) Forfeiture.--
``(1) Criminal forfeiture.--
``(A) In general.--The court in imposing sentence
for any violation of section 5313, 5316, or 5324 of this
title, or any conspiracy to commit such violation, shall
order the defendant to forfeit all property, real or
personal, involved in the offense and any property
traceable thereto.
[[Page 115 STAT. 339]]
``(B) Procedure.--Forfeitures under this paragraph
shall be governed by the procedures established in
section 413 of the Controlled Substances Act.
``(2) Civil forfeiture.--Any property involved in a
violation of section 5313, 5316, or 5324 of this title, or any
conspiracy to commit any such violation, and any property
traceable to any such violation or conspiracy, may be seized and
forfeited to the United States in accordance with the procedures
governing civil forfeitures in money laundering cases pursuant
to section 981(a)(1)(A) of title 18, United States Code.''.
(b) Conforming Amendments.--
(1) Section 981(a)(1)(A) of title 18, United States Code, is
amended--
(A) by striking ``of section 5313(a) or 5324(a) of
title 31, or''; and
(B) by striking ``However'' and all that follows
through the end of the subparagraph.
(2) Section 982(a)(1) of title 18, United States Code, is
amended--
(A) by striking ``of section 5313(a), 5316, or 5324
of title 31, or''; and
(B) by striking ``However'' and all that follows
through the end of the paragraph.
SEC. 373. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) Scienter Requirement for Section 1960 Violation.--Section 1960
of title 18, United States Code, is amended to read as follows:
``Sec. 1960. Prohibition of unlicensed money transmitting businesses
``(a) Whoever knowingly conducts, controls, manages, supervises,
directs, or owns all or part of an unlicensed money transmitting
business, shall be fined in accordance with this title or imprisoned not
more than 5 years, or both.
``(b) As used in this section--
``(1) the term `unlicensed money transmitting business'
means a money transmitting business which affects interstate or
foreign commerce in any manner or degree and--
``(A) is operated without an appropriate money
transmitting license in a State where such operation is
punishable as a misdemeanor or a felony under State law,
whether or not the defendant knew that the operation was
required to be licensed or that the operation was so
punishable;
``(B) fails to comply with the money transmitting
business registration requirements under section 5330 of
title 31, United States Code, or regulations prescribed
under such section; or
``(C) otherwise involves the transportation or
transmission of funds that are known to the defendant to
have been derived from a criminal offense or are
intended to be used to be used to promote or support
unlawful activity;
``(2) the term `money transmitting' includes transferring
funds on behalf of the public by any and all means including but
not limited to transfers within this country or to locations
abroad by wire, check, draft, facsimile, or courier; and
[[Page 115 STAT. 340]]
``(3) the term `State' means any State of the United States,
the District of Columbia, the Northern Mariana Islands, and any
commonwealth, territory, or possession of the United States.''.
(b) Seizure of Illegally Transmitted Funds.--Section 981(a)(1)(A) of
title 18, United States Code, is amended by striking ``or 1957'' and
inserting ``, 1957 or 1960''.
(c) Clerical Amendment.--The table of sections for chapter 95 of
title 18, United States Code, is amended in the item relating to section
1960 by striking ``illegal'' and inserting ``unlicensed''.
SEC. 374. COUNTERFEITING DOMESTIC CURRENCY AND OBLIGATIONS.
(a) Counterfeit Acts Committed Outside the United States.--Section
470 of title 18, United States Code, is amended--
(1) in paragraph (2), by inserting ``analog, digital, or
electronic image,'' after ``plate, stone,''; and
(2) by striking ``shall be fined under this title,
imprisoned not more than 20 years, or both'' and inserting
``shall be punished as is provided for the like offense within
the United States''.
(b) Obligations or securities of the United States.--Section 471 of
title 18, United States Code, is amended by striking ``fifteen years''
and inserting ``20 years''.
(c) Uttering Counterfeit Obligations or Securities.--Section 472 of
title 18, United States Code, is amended by striking ``fifteen years''
and inserting ``20 years''.
(d) Dealing in Counterfeit Obligations or Securities.--Section 473
of title 18, United States Code, is amended by striking ``ten years''
and inserting ``20 years''.
(e) Plates, Stones, or Analog, Digital, or Electronic Images For
Counterfeiting Obligations or Securities.--
(1) In general.--Section 474(a) of title 18, United States
Code, is amended by inserting after the second paragraph the
following new paragraph:
``Whoever, with intent to defraud, makes, executes, acquires, scans,
captures, records, receives, transmits, reproduces, sells, or has in
such person's control, custody, or possession, an analog, digital, or
electronic image of any obligation or other security of the United
States; or''.
(2) Amendment to definition.--Section 474(b) of title 18,
United States Code, is amended by striking the first sentence
and inserting the following new sentence: ``For purposes of this
section, the term `analog, digital, or electronic image'
includes any analog, digital, or electronic method used for the
making, execution, acquisition, scanning, capturing, recording,
retrieval, transmission, or reproduction of any obligation or
security, unless such use is authorized by the Secretary of the
Treasury.''.
(3) Technical and conforming amendment.--The heading for
section 474 of title 18, United States Code, is amended by
striking ``or stones'' and inserting ``, stones, or analog,
digital, or electronic images''.
(4) Clerical amendment.--The table of sections for chapter
25 of title 18, United States Code, is amended in the item
relating to section 474 by striking ``or stones'' and inserting
``, stones, or analog, digital, or electronic images''.
[[Page 115 STAT. 341]]
(f) Taking Impressions of Tools Used for Obligations or
Securities.--Section 476 of title 18, United States Code, is amended--
(1) by inserting ``analog, digital, or electronic image,''
after ``impression, stamp,''; and
(2) by striking ``ten years'' and inserting ``25 years''.
(g) Possessing or Selling Impressions of Tools Used for Obligations
or Securities.--Section 477 of title 18, United States Code, is
amended--
(1) in the first paragraph, by inserting ``analog, digital,
or electronic image,'' after ``imprint, stamp,'';
(2) in the second paragraph, by inserting ``analog, digital,
or electronic image,'' after ``imprint, stamp,''; and
(3) in the third paragraph, by striking ``ten years'' and
inserting ``25 years''.
(h) Connecting Parts of Different Notes.--Section 484 of title 18,
United States Code, is amended by striking ``five years'' and inserting
``10 years''.
(i) Bonds and Obligations of Certain Lending Agencies.--The first
and second paragraphs of section 493 of title 18, United States Code,
are each amended by striking ``five years'' and inserting ``10 years''.
SEC. 375. COUNTERFEITING FOREIGN CURRENCY AND OBLIGATIONS.
(a) Foreign Obligations or Securities.--Section 478 of title 18,
United States Code, is amended by striking ``five years'' and inserting
``20 years''.
(b) Uttering Counterfeit Foreign Obligations or Securities.--Section
479 of title 18, United States Code, is amended by striking ``three
years'' and inserting ``20 years''.
(c) Possessing Counterfeit Foreign Obligations or Securities.--
Section 480 of title 18, United States Code, is amended by striking
``one year'' and inserting ``20 years''.
(d) Plates, Stones, or Analog, Digital, or Electronic Images for
Counterfeiting Foreign Obligations or Securities.--
(1) In general.--Section 481 of title 18, United States
Code, is amended by inserting after the second paragraph the
following new paragraph:
``Whoever, with intent to defraud, makes, executes, acquires, scans,
captures, records, receives, transmits, reproduces, sells, or has in
such person's control, custody, or possession, an analog, digital, or
electronic image of any bond, certificate, obligation, or other security
of any foreign government, or of any treasury note, bill, or promise to
pay, lawfully issued by such foreign government and intended to
circulate as money; or''.
(2) Increased sentence.--The last paragraph of section 481
of title 18, United States Code, is amended by striking ``five
years'' and inserting ``25 years''.
(3) Technical and conforming amendment.--The heading for
section 481 of title 18, United States Code, is amended by
striking ``or stones'' and inserting ``, stones, or analog,
digital, or electronic images''.
(4) Clerical amendment.--The table of sections for chapter
25 of title 18, United States Code, is amended in the item
relating to section 481 by striking ``or stones'' and inserting
``, stones, or analog, digital, or electronic images''.
[[Page 115 STAT. 342]]
(e) Foreign Bank Notes.--Section 482 of title 18, United States
Code, is amended by striking ``two years'' and inserting ``20 years''.
(f) Uttering Counterfeit Foreign Bank Notes.--Section 483 of title
18, United States Code, is amended by striking ``one year'' and
inserting ``20 years''.
SEC. 376. LAUNDERING THE PROCEEDS OF TERRORISM.
Section 1956(c)(7)(D) of title 18, United States Code, is amended by
inserting ``or 2339B'' after ``2339A''.
SEC. 377. EXTRATERRITORIAL JURISDICTION.
Section 1029 of title 18, United States Code, is amended by adding
at the end the following:
``(h) Any person who, outside the jurisdiction of the United States,
engages in any act that, if committed within the jurisdiction of the
United States, would constitute an offense under subsection (a) or (b)
of this section, shall be subject to the fines, penalties, imprisonment,
and forfeiture provided in this title if--
``(1) the offense involves an access device issued, owned,
managed, or controlled by a financial institution, account
issuer, credit card system member, or other entity within the
jurisdiction of the United States; and
``(2) the person transports, delivers, conveys, transfers to
or through, or otherwise stores, secrets, or holds within the
jurisdiction of the United States, any article used to assist in
the commission of the offense or the proceeds of such offense or
property derived therefrom.''.
TITLE IV--PROTECTING THE BORDER
Subtitle A--Protecting the Northern Border
SEC. 401. ENSURING ADEQUATE PERSONNEL ON THE NORTHERN BORDER.
The Attorney General is authorized to waive any FTE cap on personnel
assigned to the Immigration and Naturalization Service on the Northern
border.
SEC. 402. NORTHERN BORDER PERSONNEL.
There <<NOTE: Appropriation authorization.>> are authorized to be
appropriated--
(1) such sums as may be necessary to triple the number of
Border Patrol personnel (from the number authorized under
current law), and the necessary personnel and facilities to
support such personnel, in each State along the Northern Border;
(2) such sums as may be necessary to triple the number of
Customs Service personnel (from the number authorized under
current law), and the necessary personnel and facilities to
support such personnel, at ports of entry in each State along
the Northern Border;
(3) such sums as may be necessary to triple the number of
INS inspectors (from the number authorized on the date of the
enactment of this Act), and the necessary personnel
[[Page 115 STAT. 343]]
and facilities to support such personnel, at ports of entry in
each State along the Northern Border; and
(4) an additional $50,000,000 each to the Immigration and
Naturalization Service and the United States Customs Service for
purposes of making improvements in technology for monitoring the
Northern Border and acquiring additional equipment at the
Northern Border.
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.
(a) Amendment of the Immigration and Nationality Act.--Section 105
of the Immigration and Nationality Act (8 U.S.C. 1105) is amended--
(1) in the section heading, by inserting ``; data exchange''
after ``security officers'';
(2) by inserting ``(a)'' after ``Sec. 105.