To authorize special measures against foreign jurisdictions, financial institutions, and others that significantly impede United States tax enforcement.

1. Adds TITLE ___--STOP TAX HAVEN ABUSE at the end of the bill

   Adds a title

   In S. 1813 · Reported to Senate

   "7. Highway Spending Controls.............................. 701".

   Inserted: TITLE ___--STOP TAX HAVEN ABUSE

   Inserted: SEC. ______. AUTHORIZING SPECIAL MEASURES AGAINST FOREIGN JURISDICTIONS, FINANCIAL INSTITUTIONS, AND OTHERS THAT SIGNIFICANTLY IMPEDE UNITED STATES TAX ENFORCEMENT.

   Inserted: Section 5318A of title 31, United States Code, is amended--

   Inserted: (1) by striking the section heading and inserting the following:

   Inserted: "Sec. 5318A. Special measures for jurisdictions, financial institutions, or international transactions that are of primary money laundering concern or significantly impede United States tax enforcement";

   Inserted: (2) in subsection (a), by striking the subsection heading and inserting the following:

   Inserted: "(a) Special Measures to Counter Money Laundering and Efforts to Significantly Impede United States Tax Enforcement.--";

   Inserted: (3) in subsection (c)--

   Inserted: (A) by striking the subsection heading and inserting the following:

   Inserted: "(c) Consultations and Information to Be Considered in Finding Jurisdictions, Institutions, Types of Accounts, or Transactions to Be of Primary Money Laundering Concern or to Be Significantly Impeding United States Tax Enforcement.--"; and

   Inserted: (B) by inserting at the end of paragraph (2) thereof the following new subparagraph:

   Inserted: "(C) Other considerations.--The fact that a jurisdiction or financial institution is cooperating with the United States on implementing the requirements specified in chapter 4 of the Internal Revenue Code of 1986 may be favorably considered in evaluating whether such jurisdiction or financial institution is significantly impeding United States tax enforcement.";

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   Inserted: (4) in subsection (a)(1), by inserting "or is significantly impeding United States tax enforcement" after "primary money laundering concern";

   Inserted: (5) in subsection (a)(4)--

   Inserted: (A) in subparagraph (A)--

   Inserted: (i) by inserting "in matters involving money laundering," before "shall consult"; and

   Inserted: (ii) by striking "and" at the end;

   Inserted: (B) by redesignating subparagraph (B) as subparagraph (C); and

   Inserted: (C) by inserting after subparagraph (A) the following:

   Inserted: "(B) in matters involving United States tax enforcement, shall consult with the Commissioner of the Internal Revenue, the Secretary of State, the Attorney General of the United States, and in the sole discretion of the Secretary, such other agencies and interested parties as the Secretary may find to be appropriate; and";

   Inserted: (6) in each of paragraphs (1)(A), (2), (3), and (4) of subsection (b), by inserting "or to be significantly impeding United States tax enforcement" after "primary money laundering concern" each place that term appears;

   Inserted: (7) in subsection (b), by striking paragraph (5) and inserting the following:

   Inserted: "(5) Prohibitions or conditions on opening or maintaining certain correspondent or payable-through accounts or authorizing certain payment cards.--If the Secretary finds a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within or involving a jurisdiction outside of the United States to be of primary money laundering concern or to be significantly impeding United States tax enforcement, the Secretary, in consultation with the Secretary of State, the Attorney General of the United States, and the Chairman of the Board of Governors of the Federal Reserve System, may prohibit, or impose conditions upon--

   Inserted: "(A) the opening or maintaining in the United States of a correspondent account or payable-through account; or

   Inserted: "(B) the authorization, approval, or use in the United States of a credit card, charge card, debit card, or similar credit or debit financial instrument by any domestic financial institution, financial agency, or credit card company or association, for or on behalf of a foreign banking institution, if such correspondent account, payable-through account, credit card, charge card, debit card, or similar credit or debit financial instrument, involves any such jurisdiction or institution, or if any such transaction may be conducted through such correspondent account, payable-through account, credit card, charge card, debit card, or similar credit or debit financial instrument."; and

   Inserted: (8) in subsection (c)(1), by inserting "or is significantly impeding United States tax enforcement" after "primary money laundering concern";

   Inserted: (9) in subsection (c)(2)(A)--

   Inserted: (A) in clause (ii), by striking "bank secrecy or special regulatory advantages" and inserting "bank, tax, corporate, trust, or financial secrecy or regulatory advantages";

   Inserted: (B) in clause (iii), by striking "supervisory and counter-money" and inserting "supervisory, international tax enforcement, and counter-money";

   Inserted: (C) in clause (v), by striking "banking or secrecy" and inserting "banking, tax, or secrecy"; and

   Inserted: (D) in clause (vi), by inserting ", tax treaty, or tax information exchange agreement" after "treaty";

   Inserted: (10) in subsection (c)(2)(B)--

   Inserted: (A) in clause (i), by inserting "or tax evasion" after "money laundering"; and

   Inserted: (B) in clause (iii), by inserting ", tax evasion," after "money laundering"; and

   Inserted: (11) in subsection (d), by inserting "involving money laundering, and shall notify, in writing, the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives of any such action involving United States tax enforcement" after "such action".

   Original wording

   At the end, add the following:

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As printed