Summary: H.R.5176 — 99th Congress (1985-1986)All Information (Except Text)

Bill summaries are authored by CRS.

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Reported to House with amendment(s) (08/05/1986)

(Reported to House from the Committee on Banking, Finance and Urban Affairs with amendment, H. Rept. 99-746)

Comprehensive Money Laundering Prevention Act - Amends Federal law to prohibit any person from: (1) causing or attempting to cause a domestic financial institution to file a required coin or currency transaction report containing a material omission or misstatement of fact or to fail to file a required report; or (2) structuring or assisting in structuring a transaction with one or more institutions for the purpose of evading reporting requirements.

Authorizes the seizure and forfeiture to the United States of: (1) any transported monetary instrument or any interest in other property (including any deposit in a financial institution) traceable to such instrument when a required report on such instrument has not been filed or contains a material omission or misstatement; and (2) any U.S. coin or currency or any interest in other property traceable to such coin or currency involved in a transaction for which a required report has not been filed, except where the property owner is a bona fide purchaser for value who took without notice of the violation, a depository institution, or a financial institution regulated by the Securities and Exchange Commission. Requires a financial institution to hold property in its possession for 15 days upon receipt of notice of the Secretary of the Treasury's intent to seize such property. Authorizes the appropriate U.S. district court to issue an order authorizing the Secretary to seize such property upon a showing by the Secretary that there is probable cause to believe that such property is subject to forfeiture. Exempts the United States, any financial institution, and any employee of either from liability in connection with such a hold being placed on any property. Provides that a financial institution which fails to hold property after receiving notice shall be liable to the United States for the value of the property the institution failed to hold. Amends the Internal Revenue Code to provide for the enforcement of such seizure and forfeiture authority by internal revenue enforcement officers.

Authorizes the Secretary to impose a civil penalty on a person who knowingly or recklessly violates a coin or currency transaction reporting requirement. Limits the penalty to the amount of the coin or currency involved, reduced by any amount already forfeited.

Amends the Federal Deposit Insurance Act, the Home Owners' Loan Act of 1933, the National Housing Act, and the Federal Credit Union Act to require each Federal banking regulatory agency to: (1) require insured banks, institutions, savings and loan associations, and credit unions (insured entities) to establish and maintain procedures to assure compliance with monetary transactions recordkeeping and reporting requirements; (2) include in each examination of an insured entity a review of such procedures identifying any problem; and (3) order any entity which has failed to maintain such procedures or correct any reported problem to cease and desist from violating this Act. Prescribes civil penalties for such violations.

Amends provisions concerning monetary transactions recordkeeping and reporting requirements to: (1) include within the definition of a "financial institution" any foreign subsidiary or affiliate of such an institution and the U.S. Postal Service when it is carrying out a duty or power of such an institution; and (2) include as a "monetary instrument" any transfer of funds, as the Secretary may prescribe.

Amends the Federal Deposit Insurance Act and the National Housing Act to authorize the appropriate regulatory agency to extend the period provided for the review and disapproval of a proposed change in control of an insured bank or savings and loan association two additional times for up to 45 days each time if: (1) the agency determines that the acquiring party has not furnished all required information; (2) the information submitted is substantially inaccurate; (3) the agency has been unable to complete the investigation because of delay caused by the acquiring party; or (4) the agency needs more time to determine that no acquiring party has a record of failing to comply with monetary transaction reporting requirements.

Authorizes the Secretary to order any domestic financial institution to obtain certain information, maintain a record, and file a report concerning any transaction involving $3,000 or more in domestic coin or currency. Requires any domestic institution which issues a bank check, cashier's check, traveler's check, or money order in a transaction involving $3,000 or more in domestic coin or currency to: (1) obtain the signature of the person to whom the check or money order is issued; and (2) maintain a record of such transaction which shall include information concerning such person, the check order, the method of payment, the payee of the check or order, and the aggregate amount of checks or money orders issued to such person on the same day to the extent such amount exceeds $10,000. Institutes other reporting requirements when such aggregate amount exceeds $10,000 or when the person receiving the check or money order refuses to provide information necessary to determine such amount. Requires any information required to be provided to a financial institution to be complete and accurate.

Subjects to prescribed civil and criminal penalties any domestic financial institution or any employee, officer, or director thereof who knowingly or recklessly (currently, willfully) violates monetary transaction recordkeeping or reporting requirements.

Amends the Right to Financial Privacy Act of 1978 to limit the information a financial institution may provide to a Government authority as relevant to a violation of Federal law or regulations to: (1) the names, addresses, and account numbers of persons; (2) information concerning the persons and acts involved (excluding financial records); and (3) the nature and a description of the violation. Preempts any State or local law that would prohibit such disclosure. Permits any financial institution or supervisory agency to disclose to the U.S. Attorney General, a State law enforcement agency, or the Secretary any financial record of any institution officer, director, employee, or controlling shareholder which is relevant to a possible violation of monetary transactions recordkeeping or reporting requirements or to a possible crime against the institution or supervisory agency by such individual.

Grants the Secretary administrative summons authority for testimonial and documentary evidence in connection with investigations to enforce monetary transactions recordkeeping and reporting requirements. Directs the Secretary, within 30 days after any change in management or control of a financial institution, to review each outstanding exemption to such requirements granted by such institution. Prohibits a person from qualifying for such an exemption unless the relevant financial institution: (1) maintains a statement which contains such person's signature and describes why such person qualifies; and (2) certifies to the Secretary that such person qualifies.

Amends the Federal Deposit Insurance Act and the National Housing Act to prescribe civil and criminal penalties for violations of certain recordkeeping requirements imposed on insured banks and institutions.

Sets forth time limitations for: (1) the assessment of civil penalties for violations of monetary transactions recordkeeping and reporting requirements; and (2) commencement of civil actions to recover assessed penalties.

Amends the Federal Deposit Insurance Act and the National Housing Act to direct the appropriate banking agency, upon receiving notice of a proposed acquisition of an insured bank or savings and loan association, to: (1) investigate the competence, experience, integrity, and financial ability of each person by or for whom the acquisition is to be made; (2) determine the accuracy and completeness of the information contained in such notice; (3) prepare and retain a report of its findings; and (4) publish the name of the bank or association to be acquired and the name of each person for or by whom the acquisition is to be made and solicit public comment on the proposed acquisition, unless such disclosure or solicitation would seriously threaten the safety or soundness of such bank or association. Authorizes any such agency, upon determining that a person has filed inaccurate, incomplete, or misleading information or has violated other requirements of the Change in Bank Control Act or the Change in Savings and Loan Control Act, to seek injunctive or other equitable relief in the appropriate U.S. district court.

Directs the Secretary to: (1) initiate discussions with the central banks or other appropriate governmental authorities of other countries on establishment of an information exchange system to assist the efforts of each country to reduce the international flow of money derived from illicit drug operations and other criminal activities; and (2) report to specified congressional committees within nine months on the results of such discussions.

Increases the maximum criminal fine for Bank Secrecy Act violations from $500,000 to $1,000,000 for individuals and to not more than $5,000,000 in other cases.

Permits the Secretary to issue regulations defining the term "at one time" for purposes of reporting requirements on exporting and importing monetary instruments so that closely related events may be collectively considered to occur at one time.