Text: H.R.3886 — 106th Congress (1999-2000)All Information (Except Text)

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Reported in House (07/11/2000)

 
[Congressional Bills 106th Congress]
[From the U.S. Government Printing Office]
[H.R. 3886 Reported in House (RH)]






                                                 Union Calendar No. 410
106th CONGRESS
  2d Session
                                H. R. 3886

                          [Report No. 106-728]

   To combat international money laundering, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 9, 2000

   Mr. Leach (for himself, Mr. LaFalce, Mrs. Roukema, and Mr. Vento) 
 introduced the following bill; which was referred to the Committee on 
                     Banking and Financial Services

                             July 11, 2000

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                                9, 2000]

_______________________________________________________________________

                                 A BILL


 
   To combat international money laundering, and for other purposes.

    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 ``International 
Counter-Money Laundering and Foreign Anticorruption Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.

        TITLE I--INTERNATIONAL COUNTER-MONEY LAUNDERING MEASURES

Sec. 101. Special measures for jurisdictions, financial institutions, 
                            or international transactions of primary 
                            money laundering concern.

    TITLE II--CURRENCY TRANSACTION REPORTING AMENDMENTS AND RELATED 
                              IMPROVEMENTS

Sec. 201. Amendments relating to reporting of suspicious activities.
Sec. 202. Penalties for violations of geographic targeting orders and 
                            certain recordkeeping requirements, and 
                            lengthening effective period of geographic 
                            targeting orders.
Sec. 203. Authorization to include suspicions of illegal activity in 
                            written employment references.
Sec. 204. Bank Secrecy Act Advisory Group.
Sec. 205. Agency reports on reconciling penalty amounts.

                   TITLE III--ANTICORRUPTION MEASURES

Sec. 301. Corruption of foreign governments and ruling elites.
Sec. 302. Support for the Financial Action Task Force on Money 
                            Laundering.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds as follows:
            (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 launderers subvert legitimate financial 
        mechanisms and banking relationships by using them as 
        protective covering for the movement of criminal proceeds and, 
        by so doing, can undermine the integrity of our financial 
        institutions and of the global financial and trading systems 
        upon which our prosperity and growth depend.
            (3) Money launderers rely upon the existence and use of 
        certain jurisdictions outside the United States that offer bank 
        secrecy and special tax or regulatory advantages to 
        nonresidents, and often complement those advantages with weak 
        financial supervisory and regulatory regimes.
            (4) Certain kinds of transactions involving such offshore 
        jurisdictions--for example, those transactions specifically 
        designed to offer anonymity or the avoidance of regulatory 
        scrutiny--make it difficult for law enforcement officials and 
        regulators to follow the trail of money earned by criminals and 
        organized international criminal enterprises that undermine 
        United States national interests and traffic in human misery, 
        whether they are narcotics dealers, terrorists, arms smugglers, 
        traffickers in human beings, or those whose frauds prey upon 
        law abiding citizens.
            (5) Certain banking relationships between financial 
        institutions in the United States and financial institutions 
        located in such offshore jurisdictions, such as correspondent 
        and payable-through accounts, are particularly vulnerable to 
        abuse because of the difficulty in obtaining accurate 
        information about the beneficial owners whose funds pass 
        through such accounts.
            (6) 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.
            (7) The Basle Committee on Banking Regulation and 
        Supervisory Practices and the Financial Action Task Force on 
        Money Laundering, 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 Act are as follows:
            (1) To ensure that banking transactions and financial 
        relationships, the conduct of such transactions and 
        relationships, or both, 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, and chapter 2 
        of title I of Public Law 91-508, or facilitate the evasion of 
        any such provision, to ensure that the purposes of such 
        subchapter II continue to be fulfilled, and to guard against 
        international money laundering and other financial crimes.
            (2) To provide a clear national mandate for subjecting to 
        special scrutiny those foreign jurisdictions, financial 
        institutions operating outside the United States, and classes 
        of international transactions that pose particular, 
        identifiable opportunities for money laundering.
            (3) To provide the Secretary of the Treasury with broad 
        discretionary authority to take certain measures tailored to 
        the particular money laundering problems presented by specific 
        foreign jurisdictions, financial institutions operating outside 
        the United States, and classes of international transactions.
            (4) To provide domestic financial institutions with 
        guidance on particular foreign jurisdictions, financial 
        institutions operating outside the United States, and classes 
        of international transactions that are of primary money 
laundering concern to the United States government.
            (5) To clarify the terms of the safe harbor from civil 
        liability for filing suspicious activity reports.
            (6) To strengthen the Secretary's authority 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.
            (7) To strengthen the ability of financial institutions to 
        maintain the integrity of their employee population.
            (8) 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.

        TITLE I--INTERNATIONAL COUNTER-MONEY LAUNDERING MEASURES

SEC. 101. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL INSTITUTIONS, 
              OR INTERNATIONAL TRANSACTIONS OF PRIMARY MONEY LAUNDERING 
              CONCERN.

    (a) In General.--Subchapter II of chapter 53 of title 31, United 
States Code, is amended by inserting after section 5318 the following 
new section:
``Sec. 5318A. Special measures for jurisdictions, financial 
              institutions, or international transactions of primary 
              money laundering concern
    ``(a) International Counter-Money Laundering Requirements.--
            ``(1) In general.--The Secretary may require domestic 
        financial institutions and domestic financial agencies to take 
        1 or more of the special measures described in subsection (b) 
        if the Secretary finds that reasonable grounds exist for 
        concluding that a jurisdiction outside the United States, 1 or 
        more financial institutions operating outside the United 
        States, or 1 or more classes of transactions within, or 
        involving, a jurisdiction outside the United States is of 
        primary money laundering concern, in accordance with subsection 
        (c).
            ``(2) Form of requirement.--The special measures described 
        in subsection (b) may be imposed by regulation, order, or 
        otherwise as permitted by law, and in such sequence or 
        combination, as the Secretary shall determine.
            ``(3) Process For Selecting Special Measures.--
                    ``(A) Consultation.--In selecting which special 
                measure or measures to take under this subsection, the 
                Secretary shall consult with the Chairman of the Board 
                of Governors of the Federal Reserve System and, in the 
                Secretary's sole discretion, such other agencies and 
                interested parties as the Secretary may find to be 
                appropriate.
                    ``(B) Factors.--The Secretary also shall consider--
                            ``(i) whether similar action has been or is 
                        being taken by other nations or multilateral 
                        groups;
                            ``(ii) whether the imposition of any 
                        particular special measure would create a 
                        significant competitive disadvantage, including 
                        any undue cost or burden associated with 
                        compliance, for financial institutions 
                        organized or licensed in the United States; and
                            ``(iii) the extent to which the action 
                        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.
            ``(4) 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 the United 
States, financial institution operating outside the United States, or 
class of transaction within, or involving, a jurisdiction outside the 
United States, are as follows:
            ``(1) Recordkeeping and reporting of certain financial 
        transactions.--
                    ``(A) In general.--The Secretary may require any 
                domestic financial institution or domestic financial 
                agency to maintain records, file reports, or both, 
                concerning the aggregate amount of transactions, or 
                concerning each transaction, with respect to a 
                jurisdiction outside the United States, 1 or more 
                financial institutions operating outside the United 
                States, or 1 or more classes of transactions within, or 
                involving, a jurisdiction outside the United States, 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) information concerning the 
                        beneficial ownership of the funds involved in 
                        any transaction, in accordance with steps the 
                        Secretary has determined to be reasonable and 
                        practicable to obtain and retain such 
                        information; and
                            ``(iv) a description of any transaction.
            ``(2) Information relating to beneficial ownership.--In 
        addition to any other requirement under any other 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 the 
        United States, 1 or more financial institutions operating 
        outside the United States, or 1 or more classes of transactions 
        within, or involving, a jurisdiction outside the United States, 
        if the Secretary finds any such jurisdiction, institution, or 
        transaction to be of primary money laundering concern.
            ``(3) Information relating to certain payable-through 
        accounts.--If the Secretary finds a jurisdiction outside the 
        United States, 1 or more financial institutions operating 
        outside the United States, or 1 or more classes of transactions 
        within, or involving, a jurisdiction outside 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 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, to--
                    ``(A) 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) obtain, with respect to each such customer 
                (and each such representative), the same information 
                that 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 the 
        United States, 1 or more financial institutions operating 
        outside the United States, or 1 or more classes of transactions 
        within, or involving, a jurisdiction outside 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 the United States, or a 
        correspondent account through which any such transaction may be 
        conducted, as a condition of opening or maintaining such 
        account, to--
                    ``(A) 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) obtain, with respect to each such customer 
                (and each such representative), the same information 
                that the depository institution obtains in the ordinary 
                course 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 the United States, 1 or 
        more financial institutions operating outside the United 
        States, or 1 or more classes of transactions within, or 
        involving, a jurisdiction outside the United States to be of 
        primary money laundering concern, the Secretary, in 
        consultation with the Secretary of State, the Attorney General, 
        and the Chairman of the Board of Governors of the Federal 
        Reserve System, may prohibit, or impose conditions upon, the 
        opening or maintaining in the United States of a correspondent 
        account or payable-through account by any domestic financial 
        institution or domestic financial agency for or on behalf of a 
        foreign banking institution if such correspondent account or 
        payable-through account involves any such jurisdiction or 
        institution, or if any such transaction may be conducted 
        through such correspondent account or payable-through account.
    ``(c) Consultations and Information To Be Considered in Finding 
Jurisdictions, Institutions, 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 the 
        United States, 1 or more financial institutions operating 
        outside the United States, or 1 or more classes of transactions 
        within, or involving, a jurisdiction outside the United States 
        is of primary money laundering concern so as to authorize the 
        Secretary to invoke 1 or more of the special measures of 
        subsection (b), the Secretary shall consult with the Secretary 
        of State, the Attorney General, the Secretary of Commerce, and 
        the United States Trade Representative.
            ``(2) Information.--The Secretary also shall consider such 
        information as the Secretary considers to be relevant, 
        including the following potentially relevant factors:
                    ``(A) In the case of a particular jurisdiction--
                            ``(i) the extent to which that jurisdiction 
                        or financial institutions operating therein 
                        offer bank secrecy or special tax or regulatory 
advantages to nonresidents or nondomiciliaries of such jurisdiction;
                            ``(ii) the substance and quality of 
                        administration of that jurisdiction's bank 
                        supervisory and counter-money laundering laws;
                            ``(iii) the relationship between the volume 
                        of financial transactions occurring in that 
                        jurisdiction and the size of the jurisdiction's 
                        economy;
                            ``(iv) the extent to which that 
                        jurisdiction is characterized as a tax haven or 
                        offshore banking or secrecy haven by credible 
                        international organizations or multilateral 
                        expert groups;
                            ``(v) whether the United States has a 
                        mutual legal assistance treaty with that 
                        jurisdiction, and the experience of United 
                        States law enforcement officials, regulatory 
                        officials, and tax administrators in obtaining 
                        information about transactions originating in 
                        or routed through or to such jurisdiction; and
                            ``(vi) the extent to which that 
                        jurisdiction is characterized by high levels of 
                        official or institutional corruption.
                    ``(B) 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 both, 
                within, or involving, a particular jurisdiction--
                            ``(i) the extent to which such financial 
                        institutions or transactions are used to 
                        facilitate or promote money laundering in or 
                        through the jurisdiction;
                            ``(ii) the extent to which such 
                        institutions or transactions are used for 
                        legitimate business purposes in such 
                        jurisdiction; and
                            ``(iii) the extent to which such action is 
                        sufficient to ensure, with respect to 
                        transactions involving such jurisdiction and 
                        institutions operating in such 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.--
Within 10 days after the date of any action taken by the Secretary 
under subsection (a)(1), the Secretary shall notify, in writing, the 
Committee on Banking and 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, the following definitions 
shall apply:
            ``(1) Defined terms.--
                    ``(A) Bank definitions.--The following definitions 
                shall apply with respect to a bank:
                            ``(i) 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.
                            ``(ii) Correspondent account.--The term 
                        `correspondent account' means an account 
                        established to receive deposits from and make 
                        payments on behalf of a foreign financial 
                        institution.
                            ``(iii) 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 sub-account, in banking activities usual in 
                        connection with the business of banking in the 
                        United States.
                    ``(B) Definitions applicable to institutions other 
                than banks.--With respect to any financial institution 
                other than a bank, the Secretary shall define, by 
                regulation, order, or otherwise as permitted by law, 
                the term `account' and shall include within the meaning 
                of such term arrangements similar to payable-through 
                and correspondent accounts.
            ``(2) Other terms.--The Secretary may, by regulation, 
        order, or otherwise as permitted by law, further define the 
        terms in paragraph (1) 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.''.

    TITLE II--CURRENCY TRANSACTION REPORTING AMENDMENTS AND RELATED 
                              IMPROVEMENTS

SEC. 201. 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 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 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.--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, in a written 
                employment reference that is provided in accordance 
                with section 18(v) of the Federal Deposit Insurance Act 
                in response to a request from another financial 
                institution or a written termination notice or 
                employment reference that is provided in accordance 
                with the rules of the self-regulatory organizations 
                registered with the Securities and Exchange Commission, 
                information that was included in a report to which 
                subparagraph (A) applies, but such written employment 
                reference may not disclose that such information was 
                also included in any such report or that such report 
                was made.''.

SEC. 202. 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 or section 123 of Public Law 91-508,'' after ``section 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)'';
            (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 
``60'' after ``shall be effective for more than'' and inserting 
``180''.

SEC. 203. 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 new paragraph:
    ``(v) Written Employment References May Contain Suspicions of 
Involvement in Illegal Activity.--
            ``(1) In general.--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) Definition.--For purposes of this subsection, the 
        term `insured depository institution' includes any uninsured 
        branch or agency of a foreign bank.''.

SEC. 204. BANK SECRECY ACT ADVISORY GROUP.

    Section 1564 of the Annunzio-Wylie Anti-Money Laundering Act (31 
U.S.C. 5311 note) is amended--
            (1) in subsection (a), by inserting ``, of nongovernmental 
        organizations advocating financial privacy,'' after ``Drug 
        Control Policy''; and
            (2) in subsection (c), by inserting ``, other than 
        subsections (a) and (d) of such Act which shall apply'' before 
        the period at the end.

SEC. 205. AGENCY REPORTS ON RECONCILING PENALTY AMOUNTS.

    Before the end of the 1-year period beginning on the date of the 
enactment of this Act, the Secretary of the Treasury and the Federal 
banking agencies (as defined in section 3 of the Federal Deposit 
Insurance Act) shall each submit their respective reports to the 
Congress containing recommendations on possible legislation to conform 
the penalties imposed on depository institutions (as defined in section 
3 of the Federal Deposit Insurance Act) for violations of subchapter II 
of chapter 53 of title 31, United States Code, to the penalties imposed 
on such institutions under section 8 of the Federal Deposit Insurance 
Act.

                   TITLE III--ANTICORRUPTION MEASURES

SEC. 301. CORRUPTION OF FOREIGN GOVERNMENTS AND RULING ELITES.

    (a) Sense of the Congress.--It is the sense of the Congress that, 
in deliberations between the United States Government and any other 
country on money laundering and corruption issues, the United States 
Government should--
            (1) emphasize an approach that addresses not only the 
        laundering of the proceeds of traditional criminal activity but 
        also the increasingly endemic problem of governmental 
        corruption and the corruption of ruling elites;
            (2) encourage the enactment and enforcement of laws in such 
        country to prevent money laundering and systemic corruption;
            (3) make clear that the United States will take all steps 
        necessary to identify the proceeds of foreign government 
        corruption which have been deposited in United States financial 
        institutions and return such proceeds to the citizens of the 
        country to whom such assets belong; and
            (4) advance policies and measures to promote good 
        government and to prevent and reduce corruption and money 
        laundering, including through instructions to the United States 
        Executive Director of each international financial institution 
        (as defined in section 1701(c) of the International Financial 
        Institutions Act) to advocate such policies as a systematic 
        element of economic reform programs and advice to member 
        governments.
    (b) Guidance to Financial Institutions Operating in the United 
States on Transactions By or On Behalf of Corrupt Foreign Officials.--
The Secretary of the Treasury, in consultation with the Attorney 
General of the United States and the Federal functional regulators (as 
defined in section 509(2) of the Gramm-Leach-Bliley Act), shall, before 
the end of the 180-day period beginning on the date of the enactment of 
this Act, issue guidance to financial institutions operating in the 
United States on appropriate practices and procedures to reduce the 
risk that such institutions may become depositories for, or 
transmitters of, the proceeds of corruption by or on behalf of senior 
foreign officials and their close associates.

SEC. 302. SUPPORT FOR THE FINANCIAL ACTION TASK FORCE ON MONEY 
              LAUNDERING.

    It is the sense of the Congress that--
            (1) the United States should continue to actively and 
        publicly support the objectives of the Financial Action Task 
        Force on Money Laundering (hereafter in this section referred 
        to as the ``FATF'') with regard to combating international 
        money laundering;
            (2) the FATF should identify noncooperative jurisdictions 
        in as expeditious a manner as possible and publicly release a 
        list directly naming those jurisdictions identified;
            (3) the United States should support the public release of 
        the list naming noncooperative jurisdictions identified by the 
        FATF;
            (4) the United States should encourage the adoption of the 
        necessary international action to encourage compliance by the 
        identified noncooperative jurisdictions; and
            (5) the United States should take the necessary 
        countermeasures to protect the United States economy against 
        money of unlawful origin and encourage other nations to do the 
        same.
            Amend the title so as to read: ``A bill to combat 
        international money laundering and protect the United States 
        financial system, and for other purposes.''.
                                                 Union Calendar No. 410

106th CONGRESS

  2d Session

                               H. R. 3886

                          [Report No. 106-728]

_______________________________________________________________________

                                 A BILL

   To combat international money laundering, and for other purposes.

_______________________________________________________________________

                             July 11, 2000

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed