II
109th CONGRESS
2d Session
S. 2402
IN THE SENATE OF THE UNITED STATES
March 13, 2006
Mr. Grassley (for himself, Mr. Kyl, Mr. Cornyn, Mr. DeWine, and Mr. Graham) introduced the following bill; which was read twice and referred to the Committee on the Judiciary
A BILL
To improve the prohibitions on money laundering, and for other purposes.
Short title
This Act may be cited as
the Combating Money Laundering and
Terrorist Financing Act of 2006
.
Money laundering
Specified unlawful activity
Section 1956(c)(7) of title 18, United States Code, is amended to read as follows:
the term specified unlawful activity means—
any act or activity constituting an offense in violation of the laws of the United States or any State punishable by imprisonment for a term exceeding 1 year; and
any act or activity occurring outside of the United States that would constitute an offense covered under subparagraph (A) if the act or activity had occurred within the jurisdiction of the United States or any State;
.
Making the
domestic money laundering statute apply to reverse money
laundering
and interstate transportation
In general
Section 1957 of title 18, United States Code, is amended—
in the heading,
by inserting or in support
of criminal activity
after specified unlawful
activity
;
in subsection
(a), by striking Whoever
and inserting the following:
Whoever
; and
by adding at the end the following:
Whoever—
in any of the circumstances set forth in subsection (d)—
conducts or attempts to conduct a monetary transaction involving property of a value that is greater than $10,000; or
transports, attempts to transport, or conspires to transport property of a value that is greater than $10,000;
in or affecting interstate commerce; and
either—
knowing that the property was derived from some form of unlawful activity; or
with the intent to promote the carrying on of specified unlawful activity;
.
Chapter Analysis
The item relating to section 1957 in the table of sections for chapter 95 of title 18, United States Code, is amended to read as follows:
1957. Engaging in monetary transactions in property derived from specified unlawful activity or in support of criminal activity.
.
Procedure for issuing subpoenas in money laundering cases
In general
Section 986 of title 18, United States Code, is amended by adding at the end the following:
Procedure for Issuing Subpoenas
The Attorney General, the Secretary of the Treasury, or the Secretary of Homeland Security may issue a subpoena in any investigation of a violation of sections 1956, 1957 or 1960, or sections 5316, 5324, 5331 or 5332 of title 31, United States Code, in the manner set forth under section 3486.
.
Grand jury and trial subpoenas
Section 5318(k)(3)(A)(i) of title 31, United States Code, is amended—
by striking
related to such correspondent account
;
by striking
or the Attorney General
and inserting , the Attorney
General, or the Secretary of Homeland Security
; and
by adding at the end the following:
Grand jury or trial subpoena
In addition to a subpoena issued by the Attorney General, Secretary of the Treasury, or the Secretary of Homeland Security under clause (i), a subpoena under clause (i) includes a grand jury or trial subpoena requested by the Government.
.
Fair credit reporting act amendment
Section 604(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is amended—
by striking
or
; and
by inserting
before the period the following: , or an investigative subpoena issued
under section 5318 of title 31, United States Code
.
Obstruction of justice
Section 1510(b) of title 18, United States Code, is amended—
in paragraph
(2)(A), by inserting or an investigative subpoena issued under section
5318 of title 31, United States Code
after grand jury
subpoena
; and
in paragraph
(3)(B), by inserting , an investigative subpoena issued under section
5318 of title 31, United States Code,
after grand jury
subpoena
.
Right to financial privacy act
Section 1120 of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3420) is amended—
in subsection
(a)(1), by inserting or to the Government
after to the
grand jury
; and
in subsection
(b)(1), by inserting , or an investigative subpoena issued pursuant to
section 5318 of title 31, United States Code,
after grand jury
subpoena
.
Transportation or transhipment of blank checks in bearer form
Section 5316 of title 31, United States Code, is amended by adding at the end the following:
Monetary instruments with amount left blank
For purposes of this section, a monetary instrument in bearer form that has the amount left blank, such that the amount could be filled in by the bearer, shall be considered to have a value equal to the highest value of the funds in the account on which the monetary instrument is drawn during the time period the monetary instrument was being transported or the time period it was negotiated or was intended to be negotiated.
.
Bulk cash smuggling
Section 5332(a) of title 31, United States Code, is amended—
in subsection
(b)(1), by striking 5 years
and inserting 10
years
; and
by adding the end the following:
Investigative authority
Violations of this section may be investigated by the Attorney General, the Secretary of the Treasury, the Secretary of Homeland Security, and the Postal Service.
.
Violations involving commingled funds and structured transactions
Section 1957(f) of title 18, United States Code, is amended—
in paragraph (2) by striking
and
at the end;
in paragraph (3), by striking the period and inserting a semicolon; and
by adding at the end the following:
the term monetary transaction in criminally derived property that is of a value greater than $10,000 includes—
a monetary transaction involving the transfer, withdrawal, encumbrance or other disposition of more than $10,000 from a bank account in which more than $10,000 in proceeds of specified unlawful activity have been commingled with other funds;
a series of monetary transactions in amounts under $10,000 that exceed $10,000 in the aggregate and that are closely related to each other in terms of such factors as time, the identity of the parties involved, the nature and purpose of the transactions, and the manner in which they are conducted; and
any financial transaction covered under section 1956(j) that involves more than $10,000 in proceeds of specified unlawful activity; and
the term monetary transaction involving property of a value that is greater than $10,000 includes a series of monetary transactions in amounts under $10,000 that exceed $10,000 in the aggregate and that are closely related to each other in terms of such factors as time, the identity of the parties involved, the nature and purpose of the transactions, and the manner in which they are conducted.
.
Charging money laundering as a course of conduct
In general
Section 1956 of title 18, United States Code, is amended by adding at the end the following:
Multiple violations
Multiple violations of this section that are part of the same scheme or continuing course of conduct may be charged, at the election of the Government, in a single count in an indictment or information.
.
Conspiracies
Section
1956(h) of title 18, United States Code, is amended by striking or
section 1957
and inserting , section 1957, or section
1960
.
Illegal money transmitting businesses
Technical amendments
In general
Section 1960 of title 18, United States Code, is amended—
in the heading by
striking unlicensed
and inserting
illegal
;
in subsection
(a), by striking unlicensed
and inserting
illegal
;
in subsection
(b)(1), by striking unlicensed
and inserting
illegal
; and
in subsection
(b)(1)(C), by striking to be used to be used
and inserting
to be used
.
Chapter Analysis
The item relating to section 1960 in the table of sections for chapter 95 of title 18, United States Code, is amended to read as follows:
1960. Prohibition of illegal money transmitting businesses.
.
Definition of business To include informal value transfer systems and money brokers for drug cartels
Section 1960(b) of title 18, United States Code, is amended—
in paragraph (2),
by striking and
at the end;
in paragraph (3),
by striking the period and inserting ; and
; and
by adding at the end the following:
the term business includes any person or association of persons, formal or informal, licensed or unlicenced, that provides money transmitting services on behalf of any third party in return for remuneration or other consideration.
.
Prohibition of unlicensed money transmitting businesses
Section 1960(b)(1)(B) of
title 18, United States Code, is amended by inserting the following before the
semicolon: , whether or not the defendant knew that the operation was
required to comply with such registration requirements
.
Authority To investigate
Section 1960 of title 18, United States Code, is amended by adding at the end the following:
Authority To investigate
Violations of this section may be investigated by the Attorney General, the Secretary of the Treasury, and the Secretary of Homeland Security.
.
Knowledge that the property is the proceeds of a specific felony
Proceeds of a felony
Section 1956(c)(1) of title 18, United States Code, is
amended by inserting , and regardless of whether or not the person knew
that the activity constituted a felony
before the semicolon at the
end.
Intent To conceal or disguise
Section 1956(a) of title 18, United States Code, is amended—
in paragraph
(1)(B)(i), by striking specified unlawful activity
and inserting
some form of unlawful activity
; and
in paragraph
(2)(B)(i), by striking specified unlawful activity
and inserting
some form of unlawful activity
.
Extraterritorial jurisdiction
Section
1956(f)(1) of title 18, United States Code, is amended by inserting or
has an effect in the United States
after conduct occurs in part
in the United States
.
Conduct in aid of counterfeiting
In general
Section 474(a) of title 18, United States Code, is
amended by inserting after the paragraph beginning Whoever has in his
control, custody, or possession any plate
the following:
Whoever, with intent to defraud, has custody, control, or possession of any material that can be used to make, alter, forge, or counterfeit any obligation or other security of the United States or any part of such obligation or security, except under the authority of the Secretary of the Treasury; or
.
Foreign obligations and securities
Section 481 of title 18, United States
Code, is amended by inserting after the paragraph beginning Whoever,
with intent to defraud
the following:
Whoever, with intent to defraud, has custody, control, or possession of any material that can be used to make, alter, forge, or counterfeit any obligation or other security of any foreign government, bank, or corporation; or
.
Counterfeit acts
Section 470 of title 18, United States Code, is amended by
striking or 474
and inserting 474, or
474A
.
Materials used in counterfeiting
Section 474A(b) of title 18, United States
Code, is amended by striking any essentially identical
and
inserting any thing or material made after or in the similitude of
any
.
Technical amendments
Technical amendments to sections 1956 and 1957
Unlawful activity
Section 1956(c) of title 18, United States Code, is amended—
in paragraph (2),
by striking conducts
and inserting
conduct
; and
in paragraph
(7)(F), by inserting , as defined in section 24(a)
before the
semicolon.
Property from unlawful activity
Section 1957 of title 18, United States Code, is amended—
in subsection
(a), by striking engages or attempts to engage in
and inserting
conducts or attempts to conduct
; and
in subsection (f)—
in paragraph (2),
by striking and
at the end;
in paragraph (3),
by striking the period and inserting ; and
; and
by adding at the end the following:
the term conduct has the meaning given such term under section 1956(c)(2).
.