,,ii #aaith ,,congress #b;d ,session ,s4 #chja ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #e1 #bjbf,mr4 ,grassley 7for himself and ,ms4 ,klobuchar7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to improve prohibitions on money laundering1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,combating ,money ,laundering1 ,terrorist ,financing1 and ,counterfeiting ,act of #bjbf4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,transportation or transhipment of blank checks in bearer form4,sec4 #c4 ,bulk cash smuggling4,sec4 #d4 ,section #aieg violations involving commingled funds and aggregated transactions4,sec4 #e4 ,charging money laundering as a course of conduct4,sec4 #f4 ,illegal money services businesses4,sec4 #g4 ,prohibiting money laundering through hawalas1 other informal value transfer systems1 and closely related transactions4,sec4 #h4 ,technical amendment to restore wiretap authority for certain money laundering and counterfeiting offenses4,sec4 #i4 ,making the international money laundering statute apply to tax evasion4,sec4 #aj4 ,conduct in aid of counterfeiting4,sec4 #aa4 ,danger pay allowance4,sec4 #ab4 ,clarification of ,secret ,service authority to investigate money laundering4,sec4 #ac4 ,remittances and money laundering threat analysis4,sec4 #ad4 ,rule of construction4 #b4 ,transportation or transhipment of blank checks in bearer form ,section #ecaf of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7e7 ,monetary instruments with amount left blank ,for purposes of this section1 a monetary instrument in bearer form that has the amount left blank1 such that the amount could be filled in by the bearer1 and that is possessed by the bearer for the purpose of avoiding a reporting requirement1 shall be considered to have a value of more than #aj1jjj if the instrument was drawn on an account that contained1 or was intended to contain more than #aj1jjj at the time-- 7#a7 the instrument was transported2 or 7#b7 the instrument was negotiated or was intended to be negotiated4 4 #c4 ,bulk cash smuggling ,section #eccb7;b7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a71 by striking #e years and inserting #aj years2 7#b7 in paragraph 7#b71 by inserting a before sentence2 7#c7 by redesignating paragraphs 7#c7 and 7#d71 as paragraphs 7#d71 and 7#e71 respectively2 and 7#d7 by inserting after paragraph 7#b7 the following3 7#c7 ,fine 7,a7 ,in general ,whoever violates this section shall be fined under title #ah4 7,b7 ,enhanced fine for aggravated cases ,whoever violates this section while violating another law of the ,united ,states1 other than section #ecaf or #ecbd7;c7 of this title1 or as a part of a pattern of any unlawful activity1 including a violation of section #ecaf or #ecbd7;c7 of this title1 shall be fined double the amount provided in subsection 7b77#c7 or 7c77#c7 7as applicable7 of section #cega of title #ah4 4 #d4 ,section #aieg violations involving commingled funds and aggregated transactions ,section #aieg of title #ah1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7f7 as subsection 7g72 and 7#b7 by inserting after subsection 7e7 the following3 7f7 ,in a prosecution for an offense under this section1 the ,government may satisfy the #aj1jjj monetary transaction value requirement under subsection 7a7 by showing that-- 7#a7 the monetary transaction involved the transfer1 withdrawal1 encumbrance1 or other disposition of more than #aj1jjj from an account in which more than #aj1jjj in proceeds of specified unlawful activity was commingled with other funds2 or 7#b7 the defendant conducted a series of monetary transactions in amounts of not more than #aj1jjj that-- 7,a7 exceeded #aj1jjj in the aggregate2 and 7,b7 were closely related to each other as demonstrated by factors such as-- 7i7 the time period between the transactions2 7ii7 the identity of the parties involved2 7iii7 the nature or purpose of the transactions2 and 7iv7 the manner in which the transactions were conducted4 4 #e4 ,charging money laundering as a course of conduct ,section #aief of title #ah1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7h71 by striking or section #aieg and inserting 1 section #aieg1 or section #aifj2 and 7#b7 by adding at the end the following3 7k7 ,multiple violations ,multiple violations of this section that are part of the same scheme or continuing course of conduct may be charged1 at the election of the ,government1 in a single count in an indictment or information4 4 #f4 ,illegal money services businesses 7a7 ,in general ,section #aifj of title #ah1 ,united ,states ,code1 is amended by striking subsections 7a7 and 7b7 and inserting the following3 7a7 ,offense 7#a7 ,in general ,whoever knowingly conducts1 controls1 manages1 supervises1 directs1 or owns all or part of a covered money services business described under paragraph 7#b7 shall be punished as provided in subsection 7b74 7#b7 ,money services businesses described ,a covered money services business described in this paragraph is a covered money services business that-- 7,a7 is operated without an appropriate license in a ,state where such operation is punishable as a misdemeanor or a felony under ,state law1 whether or not the person knows that the operation is required to be licensed or that the operation is so punishable2 7,b7 fails to comply with the money services business registration requirements under section #eccj of title #ca1 or regulations prescribed under that section1 whether or not the person knows that the operation is required to comply with those registration requirements2 or 7,c7 otherwise engages in a transaction involving funds that the person knows have been derived from a criminal offense or are intended to be used to promote or support unlawful activity4 7b7 ,criminal penalty ,any person who violates-- 7#a7 subsection 7a7 shall be fined in accordance with this title1 imprisoned for not more than #e years1 or both2 or 7#b7 subsection 7a7 by conducting1 controlling1 managing1 supervising1 directing1 or owning all or part of a covered money services business that engaged in activity as a covered money services business involving more than #a1jjj1jjj during a #ab-month period1 or by engaging in a transaction or transactions involving more than #a1jjj1jjj during a #ab-month period1 shall be fined double the amount provided in subsection 7b77#c7 or 7c77#c7 7as applicable7 of section #cega1 imprisoned for not more than #aj years1 or both4 7c7 ,definitions ,in this section-- 7#a7 the term covered money services business means a money services business that-- 7,a7 operates on behalf of the public2 and 7,b7 affects interstate or foreign commerce in any manner or degree2 7#b7 the term money services business-- 7,a7 has the meaning given the term in section #eccj of title #ca and any regulations prescribed under that section2 and 7,b7 includes a person that engages in the transfer1 transportation1 or exchange of currency1 funds1 or value that substitutes for currency by any and all means1 even when not performed for profit2 and 7#c7 the term ,state means any ,state of the ,united ,states1 the ,district of ,columbia1 the ,northern ,mariana ,islands1 and any commonwealth1 territory1 or possession of the ,united ,states4 4 7b7 ,technical and conforming amendments 7#a7 ,title #ah1 ,united ,states ,code 7,a7 ,section heading ,section #aifj of title #ah1 ,united ,states ,code1 is amended in the section heading-- 7i7 by striking unlicensed and inserting illegal2 and 7ii7 by striking transmitting and inserting services4 7,b7 ,table of sections ,the table of sections for chapter #ie of title #ah1 ,united ,states ,code1 is amended by striking the item relating to section #aifj and inserting the following3 #aifj4 ,prohibition of illegal money services businesses4 4 7#b7 ,title #ca1 ,united ,states ,code 7,a7 ,section #eccj 7i7 ,headings ,section #eccj of title #ca1 ,united ,states ,code1 is amended-- 7,i7 in the section heading1 by striking transmitting and inserting services2 7,,ii7 in subsection 7c7-- 7aa7 in the subsection heading1 by striking transmitting and inserting services2 7bb7 in paragraph 7#a71 in the paragraph heading1 by striking transmitting and inserting services2 and 7cc7 in paragraph 7#b71 in the paragraph heading1 by striking transmitting and inserting services2 and 7,,iii7 in subsection 7d77#a71 in the paragraph heading1 by striking transmitting and inserting services4 7ii7 ,text ,section #eccj of title #ca1 ,united ,states ,code1 is amended-- 7,i7 by striking money transmitting business each place that term appears and inserting money services business2 and 7,,ii7 in subsection 7a77#c71 by striking money transmitting businesses and inserting a money services business4 7,b7 ,section #eccf ,section #eccf7;a77#aa77;,b77vi7 of title #ca1 ,united ,states ,code1 is amended by striking money transmitting business and inserting money services business4 7,c7 ,section #ecfb ,section #ecfb of title #ca1 ,united ,states ,code1 is amended-- 7i7 by striking money transmitting business each place that term appears and inserting money services business2 and 7ii7 in paragraph 7#aa77;,e71 in the subparagraph heading1 by striking transmitting and inserting services4 7,d7 ,section #ecfc ,section #ecfc7b7 of title #ca1 ,united ,states ,code1 is amended by striking money transmitting business and inserting money services business4 7,e7 ,table of sections ,the table of sections for subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 is amended by striking the item relating to section #eccj and inserting the following3 #eccj4 ,registration of money services businesses4 4 7#c7 ,federal ,deposit ,insurance ,act ,section #ba7;b77#c77;,a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b7b77#c77;,a77 is amended-- 7,a7 in the matter preceding clause 7i71 by striking money transmitting businesses and inserting money services businesses 7as that term is defined in section #aifj of title #ah1 ,united ,states ,code72 and 7,b7 in clause 7ii71 by striking money transmitting business and inserting money services business4 #g4 ,prohibiting money laundering through hawalas1 other informal value transfer systems1 and closely related transactions ,the matter following section #aief7;a77#a77;,b77ii7 of title #ah1 ,united ,states ,code1 is amended by striking ,for purposes of this paragraph1 a financial transaction and inserting ,for purposes of this paragraph and section #aieg1 a financial transaction or a monetary transaction1 as applicable14 #h4 ,technical amendment to restore wiretap authority for certain money laundering and counterfeiting offenses 7a7 ,currency reporting offenses ,section #beaf7a77;g7 of title #ah1 ,united ,states ,code1 is amended by striking or section #ecbd of title #ca1 ,united ,states ,code 7relating to structuring transactions to evade reporting requirement prohibited7 and inserting or section #ecbd or #eccb of that title 7relating to evasion of ,federal transaction reporting requirements74 7b7 ,money laundering ,section #beaf7a77;c7 of title #ah1 ,united ,states ,code1 is amended by inserting section #aifj 7relating to illegal money services businesses71 before section #fei4 7c7 ,counterfeiting ,section #beaf7a77;d7 of title #ah1 ,united ,states ,code1 is amended by striking or #dgc and inserting #dgc1 #dgd1 or #dgd;,a4 #i4 ,making the international money laundering statute apply to tax evasion ,section #aief7;a77#b77;,a7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 by inserting 7i7 before with the intent to promote2 and 7#b7 by adding at the end the following3 7ii7 with the intent to engage in conduct constituting a violation of section #gbja or #gbjf of the ,internal ,revenue ,code of #aihf2 or 4 #aj4 ,conduct in aid of counterfeiting 7a7 ,in general ,section #dgd7;a7 of title #ah1 ,united ,states ,code1 is amended by inserting after the paragraph beginning ,whoever has in his control1 custody1 or possession any plate the following3 ,whoever1 with intent to defraud1 has custody1 control1 or possession of any material1 tool1 machinery1 or other equipment that can be used to make1 alter1 forge1 or counterfeit any obligation or other security of the ,united ,states or any part of such obligation or security1 except under the authority of the ,secretary of the ,treasury2 or 4 7b7 ,foreign obligations and securities ,section #dha of title #ah1 ,united ,states ,code1 is amended by inserting after the paragraph beginning ,whoever1 with intent to defraud the following3 ,whoever1 with intent to defraud1 has custody1 control1 or possession of any material1 tool1 machinery1 or other equipment that can be used to make1 alter1 forge1 or counterfeit any obligation or other security of any foreign government1 bank1 or corporation2 or 4 7c7 ,counterfeit acts ,section #dgj of title #ah1 ,united ,states ,code1 is amended by striking or #dgd and inserting #dgd1 or #dgd;,a4 7d7 ,strengthening deterrents to counterfeiting ,section #dgd;,a of title #ah1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a71 by inserting 1 custody1 after control2 7#b7 in subsection 7b7-- 7,a7 by inserting 1 custody1 after control2 and 7,b7 by striking any essentially identical feature or device adapted to the making of any such obligation or security1 and inserting any material or other thing made after or in similitude of any such deterrent12 7#c7 by redesignating subsection 7c7 as subsection 7d72 and 7#d7 by inserting after subsection 7b7 the following3 7c7 ,whoever has in his control1 custody1 or possession any obligation or security of the ,united ,states or any foreign government from which the ink or other distinctive counterfeit deterrent has been completely or partially removed1 except under the authority of the ,secretary of the ,treasury1 is guilty of a class ,b felony4 4 #aa4 ,danger pay allowance ,section #aea of the ,foreign ,relations ,authorization ,act1 ,fiscal ,years #aiij and #aiia 7#e ,u4,s4,c4 #eibh note7 is amended by striking or the ,united ,states ,marshals ,service and inserting the ,united ,states ,marshals ,service1 ,u4,s4 ,immigration and ,customs ,enforcement1 ,u4,s4 ,customs and ,border ,protection1 or the ,united ,states ,secret ,service4 #ab4 ,clarification of ,secret ,service authority to investigate money laundering ,section #cjef7;b77#c7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 by inserting money laundering1 structured transactions1 unlicensed money transmitting1 after documents or devices12 and 7#b7 by striking federally insured4 #ac4 ,remittances and money laundering threat analysis 7a7 ,definitions ,in this section-- 7#a7 the term appropriate congressional committees means-- 7,a7 the ,committee on the ,judiciary of the ,senate2 7,b7 the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate2 7,c7 the ,caucus on ,international ,narcotics ,control of the ,senate2 7,d7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate2 7,e7 the ,committee on the ,judiciary of the ,house of ,representatives2 7,f7 the ,committee on ,homeland ,security of the ,house of ,representatives2 and 7,g7 the ,committee on ,financial ,services of the ,house of ,representatives2 7#b7 the term drug kingpins1 crime syndicates1 and other persons1 with respect to the use of remittances to finance terrorism1 narcotics trafficking1 human trafficking1 money laundering1 and other forms of illicit financing1 domestically or internationally1 means any persons who-- 7,a7 are connected to individuals and organizations associated with financing terrorism1 narcotics trafficking1 human trafficking1 money laundering1 and other forms of illicit financing1 domestically or internationally2 and 7,b7 have been designated as-- 7i7 a significant foreign narcotics trafficker under the ,foreign ,narcotics ,kingpin ,designation ,act 7#ba ,u4,s4,c4 #aija et seq472 7ii7 a significant transnational criminal organization under ,executive ,order #aceha 7#gf ,fed4 ,reg4 #ddgeg1 #hd ,fed4 ,reg4 #ajbee2 relating to blocking property of transnational criminal organizations72 or 7iii7 a ,specially ,designated ,global ,terrorist under ,executive ,order #acbbd 7#ff ,fed4 ,reg4 #dijgi1 #fg ,fed4 ,reg4 #ddgea1 #fh ,fed4 ,reg4 #djge1 #gj ,fed4 ,reg4 #hdii2 relating to blocking property and prohibiting transactions with persons who commit1 threaten to commit1 or support terrorism72 7#c7 the term human trafficking has the meaning given the term severe forms of trafficking in persons in section #ajc of the ,trafficking ,victims ,protection ,act of #bjjj 7#bb ,u4,s4,c4 #gajb72 7#d7 the term money services business has the meaning given the term in section #eccj of title #ca1 ,united ,states ,code1 as amended by section #f7;b77#b77;,a72 and 7#e7 the term money transmitting service has the meaning given the term in section #eccj of title #ca1 ,united ,states ,code4 7b7 ,analysis 7#a7 ,requirement ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,attorney ,general1 the ,secretary of ,homeland ,security1 and the head of any other appropriate ,federal law enforcement agency1 shall submit to the appropriate congressional committees a threat and operational analysis of the use of remittances by drug kingpins1 crime syndicates1 and other persons to finance terrorism1 narcotics trafficking1 human trafficking1 money laundering1 and other forms of illicit financing1 domestically or internationally4 7#b7 ,contents ,the ,secretary of the ,treasury shall include in the threat and operational analysis required under paragraph 7#a7 the following3 7,a7 ,current and potential threats posed by individuals and organized groups seeking-- 7i7 to exploit security vulnerabilities with respect to remittances and money transmitting services2 or 7ii7 to unlawfully use remittances to finance terrorism1 narcotics trafficking1 human trafficking1 money laundering1 or other forms of illicit financing1 domestically or internationally4 7,b7 ,methods and pathways used to exploit security vulnerabilities4 7,c7 ,challenges presented by identity theft in the use of remittances and money transmitting services4 7,d7 ,improvements needed to enhance cooperation between and among ,federal1 ,state1 and local officials1 including ,state regulators1 ,state and local prosecutors1 and other law enforcement officials4 7,e7 ,improvements needed to enhance cooperation between money services businesses and ,federal1 ,state1 and local officials1 including ,state regulators1 ,state and local prosecutors1 and other law enforcement officials4 7#c7 ,analysis requirements ,in compiling the threat and operational analysis required under paragraph 7#a71 the ,secretary of the ,treasury1 in consultation with the ,attorney ,general1 the ,secretary of ,homeland ,security1 and the head of any other appropriate ,federal law enforcement agency1 shall consider and examine the personnel needs1 technology needs1 and infrastructure needs of ,federal law enforcement agencies4 7c7 ,remittances strategy and implementation plan 7#a7 ,in general ,not later than #ahj days after the date on which the ,secretary of the ,treasury submits the threat analysis under subsection 7b71 and every #e years thereafter for #aj years1 the ,secretary of the ,treasury1 in consultation with the ,attorney ,general1 the ,secretary of ,homeland ,security1 and the head of any other appropriate ,federal law enforcement agency1 shall submit to the appropriate congressional committees a remittances strategy and implementation plan4 7#b7 ,contents ,in preparing the remittances strategy and implementation plan under paragraph 7#a71 the ,secretary of the ,treasury shall consider the following3 7,a7 ,the remittances threat and operational analysis required under subsection 7b71 with an emphasis on efforts to mitigate threats and challenges identified in the analysis4 7,b7 ,efforts to reduce the use of remittances and money transmitting services by drug kingpins1 crime syndicates1 and other persons to finance terrorism1 narcotics trafficking1 human trafficking1 money laundering1 and other forms of illicit financing1 domestically or internationally4 7,c7 ,efforts to prevent human trafficking and the unlawful movement of illicit drugs and other contraband through the use of remittances and money transmitting services1 and standards against which the effectiveness of those efforts may be determined4 7,d7 ,efforts to focus collection and information analysis to disrupt transnational criminal organizations attempting to exploit security vulnerabilities1 and standards against which the effectiveness of those efforts may be determined4 7,e7 ,personnel1 technology1 and infrastructure needs of ,federal law enforcement agencies4 7,f7 ,efforts to prevent1 detect1 investigate1 and mitigate money laundering activities through remittances and money transmitting services1 and standards against which the effectiveness of those efforts may be determined4 7,g7 ,the lawful use of remittances1 the role that remittances play in countries' economies1 and how any recommended measures would impose additional burdens on remittances in light of their lawful uses4 #ad4 ,rule of construction ,nothing in this ,act1 or any amendment made by this ,act1 shall be construed to apply to the authorized law enforcement1 protective1 or intelligence activities of the ,united ,states or of an intelligence agency of the ,united ,states4