[Congressional Record Volume 140, Number 32 (Monday, March 21, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
[Congressional Record: March 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
MONEY LAUNDERING SUPPRESSION ACT OF 1994
Mr. GONZALEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3235) to amend subchapter II of chapter 53 of title 31,
United States Code, to improve enforcement of antimoney laundering
laws, and for the purposes, as amended.
The Clerk read the bill as follows:
H.R. 3235
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Money
Laundering Suppression Act of 1994''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Reform of CTR exemption requirements to reduce number and size
of reports consistent with effective law enforcement.
Sec. 3. Single designee for reporting of suspicious transactions.
Sec. 4. Improvement of identification of money laundering schemes.
Sec. 5. Negotiable instruments drawn on foreign banks subject to
recordkeeping and reporting requirements.
Sec. 6. Imposition of civil money penalties by appropriate Federal
banking agencies.
Sec. 7. Uniform State licensing and regulation of check cashing,
currency exchange, and money transmitting businesses.
Sec. 8. Registration of money transmitting businesses to promote
effective law enforcement.
Sec. 9. Uniform Federal regulation of casinos.
Sec. 10. Uniform Federal administration of recordkeeping and reporting
requirements.
Sec. 11. Criminal and civil penalty for structuring domestic and
international transactions.
Sec. 12. GAO study of cashiers' checks.
Sec. 13. Technical corrections.
SEC. 2. REFORM OF CTR EXEMPTION REQUIREMENTS TO REDUCE NUMBER
AND SIZE OF REPORTS CONSISTENT WITH EFFECTIVE
LAW ENFORCEMENT.
(a) In General.--Section 5313 of title 31, United States
Code, is amended by adding at the end the following new
subsections:
``(d) Mandatory Exemptions From Reporting Requirements.--
``(1) In general.--The Secretary of the Treasury shall
exempt, pursuant to section 5318(a)(5), a depository
institution from the reporting requirements of subsection (a)
with respect to transactions between the depository
institution and the following categories of entities:
``(A) Another depository institution.
``(B) A department or agency of the United States, any
State, or any political subdivision of any State.
``(C) Any entity established under the laws of the United
States, any State, or any political subdivision of any State,
or under an interstate compact between 2 or more States,
which exercises governmental authority on behalf of the
United States, the State, or the political subdivision.
``(D) Any business or category of business the reports on
which have little or no value for law enforcement purposes.
``(2) Notice of exemption.--The Secretary of the Treasury
shall publish in the Federal Register at such times as the
Secretary determines to be appropriate (but not less
frequently than once each year) a list of all the entities
whose transactions with a depository institution are exempt
under this subsection from the reporting requirements of
subsection (a).
``(e) Discretionary Exemptions From Reporting
Requirements.--
``(1) In general.--The Secretary of the Treasury may
exempt, pursuant to section 5318(a)(5), a depository
institution from the reporting requirements of subsection (a)
with respect to transactions between the depository
institution and a qualified business customer of the
institution on the basis of information submitted to the
Secretary by the institution in accordance with procedures
which the Secretary shall establish.
``(2) Qualified business customer defined.--For purposes of
this subsection, the term `qualified business customer' means
a business which--
``(A) maintains a transaction account (as defined in
section 19(b)(1)(C) of the Federal Reserve Act) at the
depository institution;
``(B) frequently engages in transactions with the
depository institution which are subject to the reporting
requirements of subsection (a); and
``(C) meets criteria which the Secretary determines are
sufficient to ensure that the purposes of this subchapter are
carried out without requiring a report with respect to such
transactions.
``(3) Criteria for exemption.--The Secretary of the
Treasury shall establish, by regulation, the criteria for
granting and maintaining an exemption under paragraph (1).
``(4) Guidelines.--
``(A) In general.--The Secretary of the Treasury shall
establish guidelines for depository institutions to follow in
selecting customers for an exemption under this subsection.
``(B) Contents.--The guidelines may include a description
of the types of businesses or an itemization of specific
businesses for which no exemption will be granted under this
subsection to any depository institution.
``(5) Annual review.--The Secretary of the Treasury shall
prescribe regulations requiring each depository institution
to--
``(A) review, at least once each year, the qualified
business customers of such institution with respect to whom
an exemption has been granted under this subsection; and
``(B) upon the completion of such review, resubmit
information about such customers, with such modifications as
the institution determines to be appropriate, to the
Secretary for the Secretary's approval.
``(6) 2-year phase-in provision.--During the 2-year period
beginning on the date of the enactment of the Money
Laundering Suppression Act of 1994, this subsection shall be
applied by the Secretary on the basis of such criteria as the
Secretary determines to be appropriate to achieve an orderly
implementation of the requirements of this subsection.
``(f) Provisions Applicable to Mandatory and Discretionary
Exemptions.--
``(1) Limitation on liability of depository institutions.--
No depository institution shall be subject to any penalty
which may be imposed under this subchapter for the failure of
the institution to file a report with respect to a
transaction with a customer for whom an exemption has been
granted under subsection (d) or (e) unless the institution--
``(A) knowingly files false or incomplete information to
the Secretary with respect to the transaction or the customer
engaging in the transaction; or
``(B) has reason to believe at the time the exemption is
granted or the transaction is entered into that the customer
or the transaction does not meet the criteria established for
granting such exemption.
``(2) Coordination with other provisions.--Any exemption
granted by the Secretary of the Treasury under section
5318(a) in accordance with this section, and any transaction
which is subject to such exemption, shall be subject to any
other provision of law applicable to such exemption,
including--
``(A) the authority of the Secretary, under section
5318(a)(5), to revoke such exemption at any time; and
``(B) any requirement to report, or any authority to
require a report on, any possible violation of any law or
regulation or any suspected criminal activity.
``(g) Depository Institution Defined.--For purposes of this
section, the term `depository institution'--
``(1) has the meaning given to such term in section
19(b)(1)(A) of the Federal Reserve Act; and
``(2) includes--
``(A) any branch, agency, or commercial lending company (as
such terms are defined in section 1(b) of the International
Banking Act of 1978);
``(B) any corporation chartered under section 25A of the
Federal Reserve Act; and
``(C) any corporation having an agreement or undertaking
with the Board of Governors of the Federal Reserve System
under section 25 of the Federal Reserve Act.''.
(b) Report Reduction Goal; Reports.--
(1) In general.--In implementing the amendment made by
subsection (a), the Secretary of the Treasury shall seek to
reduce, within a reasonable period of time, the number of
reports required to be filed in the aggregate by depository
institutions pursuant to section 5313(a) of title 31, United
States Code, by at least 30 percent of the number filed
during the year preceding the date of the enactment of this
Act.
(2) Interim report.--The Secretary of the Treasury shall
submit a report to the Congress not later than the end of the
180-day period beginning on the date of the enactment of this
Act on the progress made by the Secretary in implementing the
amendment made by subsection (a).
(3) Annual report.--The Secretary of the Treasury shall
submit an annual report to the Congress after the end of each
of the first 5 calendar years which begin after the date of
the enactment of this Act on the extent to which the
Secretary has reduced the overall number of currency
transaction reports filed with the Secretary pursuant to
section 5313(a) of title 31, United States Code, consistently
with the purposes of such section and effective law
enforcement.
(c) Streamlined Currency Transaction Reports.--The
Secretary of the Treasury shall take such action as may be
appropriate to redesign the format of reports required to be
filed by any financial institution (as defined in section
5312(a)(2) of title 31, United States Code) under section
5313(a) of title 31, United States Code, to eliminate the
need to report information which has little or no value for
law enforcement purposes and reduce the time and effort
required to prepare such report for filing by any such
financial institution under such section.
SEC. 3. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS
TRANSACTIONS.
(a) In General.--Section 5318(g) of title 31, United States
Code, is amended by adding at the end the following new
paragraph:
``(4) Single designee for reporting suspicious
transactions.--
``(A) In general.--In requiring reports under paragraph (1)
of suspicious transactions, the Secretary of the Treasury
shall designate, to the extent practicable and appropriate, a
single officer or agency of the United States to whom such
reports shall be made.
``(B) Duty of designee.--The officer or agency of the
United States designated by the Secretary of the Treasury
pursuant to subparagraph (A) shall refer any report of a
suspicious transaction to any appropriate law enforcement or
supervisory agency.
``(C) Coordination with other reporting requirements.--
Subparagraph (A) shall not be construed as precluding any
supervisory agency for any financial institution from
requiring the financial institution to submit any information
or report to the agency or another agency pursuant to any
provision of law other than this subsection.''.
(b) Reports.--
(1) Reports required.--The Secretary of the Treasury shall
submit an annual report to the Congress at the times required
under paragraph (2) on the number of suspicious transactions
reported to the officer or agency designated under section
5318(g)(4)(A) of title 31, United States Code, during the
period covered by the report and the disposition of such
reports.
(2) Time for submitting reports.--The 1st report required
under paragraph (1) shall be filed before the end of the 1-
year period beginning on the date of the enactment of the
Money Laundering Suppression Act of 1994 and each subsequent
report shall be filed within 90 days after the end of each of
the 5 calendar years which begin after such date of
enactment.
(c) Designation Required To Be Made Expeditiously.--The
initial designation of an officer or agency of the United
States pursuant to the amendment made by subsection (a) shall
be made before the end of the 180-day period beginning on the
date of the enactment of this Act.
SEC. 4. IMPROVEMENT OF IDENTIFICATION OF MONEY LAUNDERING
SCHEMES.
(a) Enhanced Training, Examinations, and Referrals by
Banking Agencies.--Before the end of the 6-month period
beginning on the date of the enactment of this Act, each
appropriate Federal banking agency shall, in consultation
with the Secretary of the Treasury and other appropriate law
enforcement agencies--
(1) review and enhance training and examination procedures
to improve the identification of money laundering schemes
involving depository institutions; and
(2) review and enhance procedures for referring cases to
any appropriate law enforcement agency.
(b) Improved Reporting of Criminal Schemes by Law
Enforcement Agencies.--The Secretary of the Treasury and each
appropriate law enforcement agency shall provide, on a
regular basis, information regarding money laundering schemes
and activities involving depository institutions to each
appropriate Federal banking agency in order to enhance the
agency's ability to examine for and identify money laundering
activity.
(c) Report to Congress.--The Financial Institutions
Examination Council shall submit a report on the progress
made in carrying out subsection (a) and the usefulness of
information received pursuant to subsection (b) to the
Congress by the end of the 1-year period beginning on the
date of the enactment of this Act.
(d) definitions.--The terms ``appropriate Federal banking
agency'' and ``Federal banking agencies'' have the same
meanings as in section 3 of the Federal Deposit Insurance
Act.
SEC. 5. NEGOTIABLE INSTRUMENTS DRAWN ON FOREIGN BANKS SUBJECT
TO RECORDKEEPING AND REPORTING REQUIREMENTS.
Section 5312(a)(3) of title 31, United States Code, is
amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) as the Secretary of the Treasury shall provide by
regulation for purposes of section 5316, checks, drafts,
notes, money orders, and other similar instruments which are
drawn on or by a foreign financial institution and are not in
bearer form.''.
SEC. 6. IMPOSITION OF CIVIL MONEY PENALTIES BY APPROPRIATE
FEDERAL BANKING AGENCIES.
Section 5321 of title 31, United States Code, is amended by
adding at the end the following new subsection:
``(e) Delegation of Assessment Authority to Banking
Agencies.--
``(1) In general.--The Secretary of the Treasury shall
delegate, in accordance with section 5318(a)(1) and subject
to such terms and conditions as the Secretary may impose in
accordance with paragraph (3), any authority of the Secretary
to assess a civil money penalty under this section on
depository institutions (as defined in section 3 of the
Federal Deposit Insurance Act) to the appropriate Federal
banking agencies (as defined in such section 3).
``(2) Authority of agencies.--Subject to any term or
condition imposed by the Secretary of the Treasury under
paragraph (3), the provisions of this section shall apply to
an appropriate Federal banking agency to which is delegated
any authority of the Secretary under this section in the same
manner such provisions apply to the Secretary.
``(3) Terms and conditions.--
``(A) In general.--The Secretary of the Treasury shall
prescribe by regulation the terms and conditions which shall
apply to any delegation under paragraph (1).
``(B) Maximum dollar amount.--The terms and conditions
authorized under subparagraph (A) may include, in the
Secretary's sole discretion, a limitation on the amount of
any civil penalty which may be assessed by an appropriate
Federal banking agency pursuant to a delegation under
paragraph (1).''.
SEC. 7. UNIFORM STATE LICENSING AND REGULATION OF CHECK
CASHING, CURRENCY EXCHANGE, AND MONEY
TRANSMITTING BUSINESSES.
(a) Uniform Laws and Enforcement.--For purposes of
preventing money laundering and protecting the payment system
from fraud and abuse, it is the sense of the Congress that
the several States should--
(1) establish uniform laws for licensing and regulating
businesses which--
(A) provide check cashing, currency exchange, or money
transmitting or remittance services, or issue or redeem money
orders, travelers' checks, and other similar instruments; and
(B) are not depository institutions (as defined in section
19(b)(1)(A) of the Federal Reserve Act); and
(2) provide sufficient resources to the appropriate State
agency to enforce such laws and regulations prescribed
pursuant to such laws.
(b) Model Statute.--It is the sense of the Congress that
the several States should develop, through the auspices of
the National Conference of Commissioners on Uniform State
Laws, the American Law Institute, or such other forum as the
States may determine to be appropriate, a model statute to
carry out the goals described in subsection (a) which would
include the following:
(1) Licensing requirements.--A requirement that any
business described in subsection (a)(1) be licensed and
regulated by an appropriate State agency in order to engage
in any such activity within the State.
(2) Licensing standards.--A requirement that--
(A) in order for any business described in subsection
(a)(1) to be licensed in the State, the appropriate State
agency shall review and approve--
(i) the business record, the fee structure, and the capital
adequacy of the business seeking the license; and
(ii) the competence, experience, integrity, and financial
ability of any individual who--
(I) is a director, officer, or supervisory employee of such
business; or
(II) owns or controls such business; and
(B) any record, on the part of any business seeking the
license or any person referred to in subparagraph (A)(ii),
of--
(i) any criminal activity;
(ii) any fraud or other act of personal dishonesty;
(iii) any act, omission, or practice which constitutes a
breach of a fiduciary duty; or
(iv) any suspension or removal, by any agency or department
of the United States or any State, from participation in the
conduct of any federally or State licensed or regulated
business,
may be grounds for the denial of any such license by the
appropriate State agency.
(3) Procedures to ensure compliance with federal cash
transaction reporting requirements.--A civil or criminal
penalty for operating any business referred to in paragraph
(1) without establishing and complying with appropriate
procedures to ensure compliance with subchapter II of chapter
53 of title 31, United States Code (relating to records and
reports on monetary instruments transactions).
(4) Criminal penalties for operation of business without a
license.--A criminal penalty for operating any business
referred to in paragraph (1) without a license within the
State after the end of an appropriate transition period
beginning on the date of the enactment of such model statute
by the State.
(c) Study Required.--The Secretary of the Treasury shall
conduct a study of--
(1) the progress made by the several States in developing
and enacting a model statute which--
(A) meets the requirements of subsection (b); and
(B) furthers the goals of--
(i) preventing money laundering by businesses which are
required to be licensed under any such statute; and
(ii) protecting the payment system, including the receipt,
payment, collection, and clearing of checks, from fraud and
abuse by such businesses; and
(2) the adequacy of--
(A) the activity of the several States in enforcing the
requirements of such statute; and
(B) the resources made available to the appropriate State
agencies for such enforcement activity.
(d) Report Required.--Before the end of the 3-year period
beginning on the date of the enactment of this Act and by the
end of each of the first 2 1-year periods beginning after the
end of such 3-year period, the Secretary of the Treasury
shall submit a report to the Congress containing the findings
and recommendations of the Secretary in connection with the
study under subsection (c), together with such
recommendations for legislative and administrative action as
the Secretary may determine to be appropriate.
(e) Recommendations in Cases of Inadequate Regulation and
Enforcement by States.--If the Secretary of the Treasury
determines that any State has been unable to--
(1) enact a statute which meets the requirements described
in subsection (b);
(2) undertake adequate activity to enforce such statute; or
(3) make adequate resources available to the appropriate
State agency for such enforcement activity,
the report submitted pursuant to subsection (d) shall contain
recommendations of the Secretary which are designed to
facilitate the enactment and enforcement by the State of such
a statute.
(f) Federal Funding Study.--
(1) Study required.--The Secretary of the Treasury shall
conduct a study to identify possible available sources of
Federal funding to cover costs which will be incurred by the
States in carrying out the purposes of this section.
(2) Report.--The Secretary of the Treasury shall a submit a
report to the Congress on the study conducted pursuant to
paragraph (1) before the end of the 18-month period beginning
on the date of the enactment of this Act.
SEC. 8. REGISTRATION OF MONEY TRANSMITTING BUSINESSES TO
PROMOTE EFFECTIVE LAW ENFORCEMENT.
(a) Findings and Purposes.--
(1) Findings.--The Congress hereby finds the following:
(A) Money transmitting businesses are subject to the
recordkeeping and reporting requirements of subchapter II of
chapter 53 of title 31, United States Code.
(B) Money transmitting businesses are largely unregulated
businesses and are frequently used in sophisticated schemes
to--
(i) transfer large amounts of money which are the proceeds
of unlawful enterprises; and
(ii) evade the requirements of such subchapter II, the
Internal Revenue Code of 1986, and other laws of the United
States.
(C) Information on the identity of money transmitting
businesses and the names of the persons who own or control,
or are officers or employees of, a money transmitting
business would have a high degree of usefulness in criminal,
tax, or regulatory investigations and proceedings.
(2) Purpose.--It is the purpose of this section to
establish a registration requirement for businesses engaged
in providing check cashing, currency exchange, or money
transmitting or remittance services, or issuing or redeeming
money orders, travelers' checks, and other similar
instruments to assist the Secretary of the Treasury, the
Attorney General, and other supervisory and law enforcement
agencies to effectively enforce the criminal, tax, and
regulatory laws and prevent such money transmitting
businesses from engaging in illegal activities.
(b) In General.--Subchapter II of chapter 53 of title 31,
United States Code, is amended by adding at the end the
following new section:
``Sec. 5329. Registration of money transmitting businesses
``(a) Registration With Secretary of the Treasury
Required.--
``(1) In general.--Any person who owns or controls a money
transmitting business which is not a depository institution
(as defined in section 19(b)(1)(A) of the Federal Reserve
Act) shall register the business (whether or not the business
is licensed as a money transmitting business in any State)
with the Secretary of the Treasury before the end of the 180-
day period beginning on the later of--
``(A) the date of the enactment of the Money Laundering
Suppression Act of 1994; or
``(B) the date the business is established.
``(2) Form and manner of registration.--Subject to the
requirements of subsection (b), the Secretary of the Treasury
shall prescribe, by regulation, the form and manner for
registering a money transmitting business pursuant to
paragraph (1).
``(3) Businesses remain subject to state law.--This section
shall not be construed as superseding any requirement of
State law relating to money transmitting businesses operating
in such State.
``(4) False and incomplete information.--The filing of
false or materially incomplete information in connection with
the registration of a money transmitting business shall be
considered as a failure to comply with the requirements of
this subchapter.
``(b) Contents of Registration.--The registration of a
money transmitting business under subsection (a) shall
include the following information:
``(1) The name and location of the business.
``(2) The name and address of each person who--
``(A) owns or controls the business;
``(B) is an director or officer of the business; or
``(C) otherwise participates in the conduct of the affairs
of the business.
``(3) The name and address of any depository institution at
which the business maintains a transaction account (as
defined in section 19(b)(1)(C) of the Federal Reserve Act).
``(4) An estimate of the volume of business in the coming
year (which shall be reported annually to the Secretary).
``(5) Such other information as the Secretary of the
Treasury may require.
``(c) Agents of Money Transmitting Businesses.--
``(1) Maintenance of lists of agents of money transmitting
businesses.--Pursuant to regulations which the Secretary of
the Treasury shall prescribe, each money transmitting
business shall--
``(A) maintain a list containing the names and addresses of
all persons authorized to act as an agent for such business
in connection with activities described in subsection
(d)(1)(A) and such other information about such agents as the
Secretary may require; and
``(B) make the list and other information available on
request to any appropriate law enforcement agency.
``(2) Treatment of agent as money transmitting business.--
The Secretary of the Treasury shall prescribe regulations
establishing, on the basis of such criteria as the Secretary
determines to be appropriate, a threshold point for treating
an agent of a money transmitting business as a money
transmitting business for purposes of this section.
``(d) Definitions.--For purposes of this section--
``(1) Money transmitting business.--The term `money
transmitting business' means any business other than the
United States Postal Service which--
``(A) provides check cashing, currency exchange, or money
transmitting or remittance services, or issues or redeems
money orders, travelers' checks, and other similar
instruments;
``(B) is required to file reports under section 5313; and
``(C) is not a depository institution (as defined in
section 19(b)(1)(A) of the Federal Reserve Act).
``(2) Money transmitting service.--The term `money
transmitting service' includes accepting currency or funds
denominated in the currency of any country and transmitting
the currency or funds, or the value of the currency or funds,
by any means through a financial agency or institution, a
Federal reserve bank or other facility of the Board of
Governors of the Federal Reserve System, or an electronic
funds transfer network.
``(e) Civil Penalty for Failure To Comply With Registration
Requirements.--
``(1) In general.--Any person who fails to comply with the
money transmitting business registration requirements under
subsection (a) or regulations prescribed under such
subsection shall be liable to the United States for a civil
penalty of $5,000 for each such violation.
``(2) Continuing violation.--Each day a violation described
in paragraph (1) continues shall constitute a separate
violation for purposes of such paragraph.
``(3) Assessments.--Any penalty imposed under this
subsection shall be assessed and collected by the Secretary
of the Treasury in the manner provided in section 5321 and
any such assessment shall be subject to the provisions of
such section.''.
(c) Criminal Penalty for Failure To Comply With
Registration Requirements.--Section 1960(b)(1) of title 18,
United States Code, is amended to read as follows:
``(1) the term `illegal money transmitting business' means
a money transmitting business which affects interstate or
foreign commerce in any manner or degree and--
``(A) is intentionally operated without an appropriate
money transmitting license in a State where such operation is
punishable as a misdemeanor or a felony under State law; or
``(B) fails to comply with the money transmitting business
registration requirements under section 5329 of title 31,
United States Code, or regulations prescribed under such
section;''.
(d) Civil Forfeiture.--Section 981(a)(1)(A) of title 18,
United States Code, is amended by striking ``or of section
1956 or 1957 of this title,'' and inserting ``, or of section
1956, 1957, or 1960 of this title,''.
(e) 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 5328 the following new
item:
``5329. Registration of money transmitting businesses.''.
SEC. 9. UNIFORM FEDERAL REGULATION OF CASINOS.
Amendment to Definition of Financial Institution To
Specifically Include Certain Casinos.--Section 5312(a)(2) of
title 31, United States Code, is amended--
(1) by redesignating subparagraphs (X) and (Y) as
subparagraphs (Y) and (Z), respectively; and
(2) by inserting after subparagraph (W) the following new
subparagraph:
``(X) a casino, gambling casino, or gaming establishment
with an annual gaming revenue of more than $1,000,000 which--
``(i) is licensed as a casino or gambling casino under the
laws of any State or any political subdivision of any State;
or
``(ii) is an Indian gaming operation conducted under or
pursuant to the Indian Gaming Regulatory Act other than an
operation which is limited to class I gaming (as defined in
section 4(6) of such Act);''.
SEC. 10. UNIFORM FEDERAL ADMINISTRATION OF RECORDKEEPING AND
REPORTING REQUIREMENTS.
(a) In General.--Section 5318 of title 31, United States
Code, is amended by adding at the end the following new
subsection:
``(i) Uniform Administration of Subchapter.--
``(1) No exemptions.--No exemption from any recordkeeping
or reporting requirement of this subchapter, including
paragraph (1), or of any regulation prescribed pursuant to
this subchapter may be granted to--
``(A) any State or any political subdivision of a State on
behalf of any financial institution which but, for such
exemption, would be required to maintain records or file
reports under this subchapter or regulations prescribed by
the Secretary of the Treasury pursuant to this subchapter; or
``(B) any financial institution on the basis that any
State, any political subdivision of any State, or any
officer, agency, or other authority of any such State or
political subdivision regulates or examines such institution.
``(2) Reports required to be filed with federal agency.--
Any report required under this subchapter or regulations
prescribed by the Secretary of the Treasury pursuant to this
subchapter shall be filed by the person required to make the
report with the Secretary of the Treasury or an officer or
agency of the United States designated by the Secretary to
receive such report.''.
(b) Technical and Conforming Amendments.--Section 5318(a)
of title 31, United States Code, is amended--
(1) in paragraph (1), by inserting ``or (i)'' after
``subsection (b)(2)''; and
(2) in paragraph (5), by inserting ``except as provided in
subsection (i),'' before ``prescribe an appropriate
exemption''.
(c) Revocation of Prior Exemption.--Any exemption granted
under subchapter II of chapter 53 of title 31, United States
Code, by the Secretary of the Treasury before the date of the
enactment of the Money Laundering Suppression Act of 1994 to
any State or local government on behalf of any financial
institution (as defined in such subchapter) is hereby revoked
as of the end of the 30-day period beginning on the date of
the enactment of this Act.
SEC. 11. CRIMINAL AND CIVIL PENALTY FOR STRUCTURING DOMESTIC
AND INTERNATIONAL TRANSACTIONS.
(a) Criminal Penalty.--Section 5324 of title 31, United
States Code, is amended by adding at the end the following
new subsection:
``(c) Criminal Penalty.--
``(1) In general.--Whoever violates this section shall be
fined in accordance with title 18, United States Code,
imprisoned for not more than 5 years, or both.
``(2) Enhanced penalty for aggravated cases.--Whoever
violates this section while violating another law of the
United States or as part of a pattern of any illegal activity
involving more than $100,000 in a 12-month period shall be
fined twice the amount provided in subsection (b)(3) or
(c)(3) (as the case may be) of section 3571 of title 18,
United States Code, imprisoned for not more than 10 years, or
both.''.
(b) Amendment Relating to Civil Penalty.--Section
5321(a)(4)(A) of title 31, United States Code, is amended by
striking ``willfully''.
(c) Technical and Conforming Amendment.--Subsections (a)
and (b) of section 5322 of title 31, United States Code, are
amended by inserting ``or 5324'' after ``section 5315'' each
place such term appears.
SEC. 12. GAO STUDY OF CASHIERS' CHECKS.
(a) Study Required.--The Comptroller General of the United
States shall conduct a study to--
(1) determine the extent to which the practice of issuing
of cashiers' checks by financial institutions is vulnerable
to money laundering schemes;
(2) determine the extent to which additional recordkeeping
requirements should be imposed on financial institutions
which issue cashiers' checks; and
(3) analyze such other factors relating to the use and
regulation of cashiers' checks as the Comptroller General
determines to be appropriate.
(b) Report Required.--Before the end of the 6-month period
beginning on the date of the enactment of this Act, the
Comptroller General shall submit a report to the Congress
containing--
(1) the findings and conclusions of the Comptroller General
in connection with the study conducted pursuant to subsection
(a); and
(2) such recommendations for legislative and administrative
action as the Comptroller General may determine to be
appropriate.
SEC. 13. TECHNICAL CORRECTIONS.
(a) Title 31, U.S.C., Amendments.--
(1) Section 5321(a)(5)(A) of title 31, United States Code,
is amended by inserting ``any violation of'' after
``causing''.
(2) Section 5324(a) of title 31, United States Code, is
amended--
(A) by striking ``section 5313(a), section 5325, or the
regulations issued thereunder or section 5325 or regulations
prescribed under such section 5325'' each place such term
appears and inserting ``section 5313(a) or 5325 or any
regulation prescribed under any such section''; and
(B) by striking ``with respect to such transaction''.
(b) Amendment Relating to Title 31, U.S.C.--
(1) Effective as of the date of the enactment of the
Annunzio-Wylie Anti-Money Laundering Act, section 1517(b) of
such Act is amended by striking ``5314'' and inserting
``5318''.
(2) Section 5239 of the Revised Statutes of the United
States is amended by redesignating the 2d subsection (c) (as
added by section 1502(a) of the Annunzio-Wylie Anti-Money
Laundering Act) as subsection (d).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas [Mr. Gonzalez] will be recognized for 20 minutes, and the
gentleman from Iowa [Mr. Leach] will be recognized for 20 minutes.
The Chair recognizes the gentleman from Texas [Mr. Gonzalez].
(Mr. GONZALEZ asked and was given permission to revise and extend his
remarks.)
Mr. GONZALEZ. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, actually, H.R. 3235 is the working product of the
Subcommittee on Financial Institutions Supervision, Regulation and
Deposit Insurance of the Committee on Banking, Finance and Urban
Affairs, which subcommittee is chaired by the very able and most valued
member of the committee, the gentleman from North Carolina [Mr. Neal].
Mr. Speaker, I would like to speak in favor of H.R. 3235, the Money
Laundering Suppression Act of 1994. I introduced this legislation last
fall because its provisions both enhance the Government's ability to
combat money laundering and reduce unnecessary reporting burdens on
banks. The bill is based on 18 months of exhaustive study, careful
analysis and thorough work on every detail.
A key provision of the bill requires the Secretary of the Treasury to
substantially reduce the number of currency transaction reports, known
as CTRs, filed by depository institutions. The 10 million CTR's filed
every year entail huge costs for filers and the Treasury Department,
which must process the data. In addition, this mountain of reports
actually has made it more difficult for law enforcement agencies to
sort through the database during an investigation. The Secretary will
accomplish this reduction by exempting banks from filing CTR's on
customers whose transactions have little or no law enforcement value.
IRS officials estimate that CTR filings could be reduced by 30 to 40
percent if these routine deposits and withdrawals were not included,
thereby making the filing burden lower but law enforcement better.
The bill also addresses the problem of money laundering at so-called
nonbank financial institutions. As banks have improved their compliance
with currency reporting requirements, money-laundering activity has
shifted to these businesses. It is difficult for the Government to
monitor them because they do not receive the same attention from
regulators that banks do. The bill requires nonbank money transmitters
to register with the Treasury Department, and expresses the sense of
the Congress that money transmitters should be licensed at the State
level.
Finally, the bill addresses a recent Supreme Court decision that has
made it much more difficult for the Government to convict persons of
evading the currency reporting requirements. This ruling jeopardizes
several hundred money-laundering cases currently pending in our
judicial system. It is therefore urgent that Congress make clear its
intent that the practice of structuring cash transactions to evade
reporting requirements is not to be tolerated, which the bill does.
I urge adoption of the bill and thank Mr. Neal for his contributions
to it, as well as my Republican colleagues who cooperated in moving the
legislation forward.
Mr. Speaker, I yield the balance of our time to the gentleman from
North Carolina [Mr. Neal] and ask unanimous consent that he be
permitted to allocate the time under the rule.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
The SPEAKER pro tempore. The Chair recognizes the gentleman from
North Carolina [Mr. Neal] for the balance of the time allotted.
Mr. NEAL of North Carolina. Mr. Speaker, I yield myself such time as
I may consume.
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