Summary: H.R.5889 — 101st Congress (1989-1990)All Information (Except Text)

Bill summaries are authored by CRS.

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Passed House amended (10/26/1990)

Money Laundering Enforcement Amendments of 1990 - Amends the Bank Conservation Act, the Home Owners' Loan Act, the Federal Deposit Insurance Act, and the Federal Credit Union Act to authorize the appointment of a conservator for a depository institution convicted of money laundering offenses (including insured Federal and State savings associations and State banks). Exempts from conservatorship any such institution whose ownership or control has changed after commission of the offense and whose new owner or controlling person was not affiliated with it at the time of the offense.

Amends the Revised Statutes, the Home Owners' Loan Act, and the Federal Credit Union Act to prescribe guidelines for the revocation of depository institutions' charters and forfeiture of franchises upon conviction for money laundering offenses (including the conviction of senior level management for such offenses).

Amends the Federal Deposit Insurance Act and the Federal Credit Union Act: (1) to prescribe guidelines for the termination of the insured status of State depository institutions, including State chartered credit unions convicted of money laundering; and (2) to authorize the removal of any party from office or its suspension from participation in the affairs of the institution if the party is determined to have committed certain currency reporting violations.

Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to require specified regulatory agencies to include in their annual reports to the Congress the identification of depository institutions convicted of money laundering offenses and the agencies' enforcement activities.

Amends the Federal criminal code to require the Attorney General to notify the appropriate regulatory agency in writing if any financial institution or its personnel has been convicted of certain money laundering offenses.

Amends Federal law regarding monetary transactions to authorize the Secretary of the Treasury to: (1) impose civil money penalties upon a financial institution for negligent violations of this Act or for a pattern of negligent violations; and (2) order a depository institution to request that its customers submit cash transaction reports.

Amends Federal law regarding money transactions to direct the Secretary of the Treasury to: (1) prescribe regulations requiring each depository institution to file identification reports regarding certain financial institution customers; and (2) make such reports available to State financial institution supervisory agencies for supervisory purposes.

Expresses the sense of the Congress that the States should: (1) establish uniform regulations and licensing requirements (meeting specified criteria) for non-depository institutions engaged in check cashing businesses; and (2) develop a model statute incorporating such uniform regulations.

Requires the Secretary to study and report to the Congress on the progress made by the States in enacting uniform legislation.

Expresses the sense of the Congress that the States should consider, in connection with such uniform legislation, whether fee limitations are appropriate with respect to money cashing or redemption activities. Amends the Federal criminal code to establish criminal penalties for persons participating in an illegal money transmitting business.

Amends the Federal Deposit Insurance Act to direct the Secretary to promulgate final regulations requiring insured depository institutions and businesses involved in funds transfers to maintain, for certain kinds of payment orders involving international transactions, records that will have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. Mandates that such records be made available to the Secretary upon request. Prohibits a financial institution or its personnel from disclosing the existence of a Federal information targeting order except as prescribed by the Secretary.

Authorizes the Secretary of the Treasury and the Attorney General to issue civil enforcement and prosecutorial guidelines for currency transactions.

Amends the Bank Secrecy Act to require a person to certify to the relevant financial institution in writing under penalty of perjury the basis for requesting an exemption from cash transaction reporting requirements. Requires an annual update of such certification. Requires the Secretary to make currency transaction reports available to any State depository institution's supervisory agency.

Requires the Secretary to: (1) submit periodic status reports to the Congress regarding the use of currency transaction reports and related enforcement activities; and (2) establish an Advisory Group on Reports on Monetary Instruments Transactions to serve as a conduit between the Federal and private sectors regarding the status of currency transaction reporting activities.

Requires the Board of Governors of the Federal Reserve System to provide, at the Attorney General's request, information regarding the cash surplus reports of the Federal Reserve banks which may be relevant to investigations under this Act.

Requires the Secretary to establish a study group to evaluate: (1) the feasibility of electronic scanning of Federal Reserve notes; and (2) the impact of such scanning upon the rights of individuals to financial privacy.

Requires the Comptroller General to study and report to the Congress on the feasibility of a "Financial Crimes Enforcement Network" proposed to be established among Federal agencies and banking agencies.

Requires the Secretary of the Treasury to: (1) collect and maintain information on amounts and denominations of currency confiscated in connection with drug seizures and drug-related money laundering operations, as well as the total dollar amount of each denomination of such notes and currency; (2) develop a plan to collect the same information from State and local agencies; (3) report to the Congress on such plan, together with biannual summaries of the information collected; and (4) report to the Congress on the need for additional information regarding how frequently $50 and $100 notes are used in drug trafficking and other illegal activities, and the possible deterrent effect the withdrawal of such notes would have on such activities. Directs the Secretary to report to certain congressional committees on the advantages and disadvantages of: (1) changing the physical format of United States currency for money laundering enforcement purposes; or (2) using a different color for United States currency in circulation outside the United States.

Amends the Right to Financial Privacy Act to provide that financial records transferred by a regulatory agency to the Secretary of the Treasury for possible criminal violations shall be used only for criminal investigative or prosecutive purposes relating to money laundering by the Department of the Treasury.

Amends the Federal Deposit Insurance Act to establish additional whistleblower protections for employees of depository institutions and Federal regulatory agencies who provide information about possible banking law violations.

Subjects to certain cash reporting requirements any officer or office of either House of the Congress which provides check cashing or deposit services for Members of Congress.

Amends the Right to Financial Privacy Act to exempt from its protections possible crimes committed by insiders against financial institutions with respect to money laundering and/or monetary transactions in property derived from specified unlawful activity.

Amends Federal law relating to international monetary instrument transaction reporting requirements to prohibit: (1) failure to file the requisite reports; (2) filing material omissions or misstatements of facts in such reports; and (3) participation in structuring any importation or exportation of monetary instruments.