109th CONGRESS
2d Session
S. 2402
To improve the prohibitions on money laundering, and for other
purposes.
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.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Combating Money Laundering and Terrorist Financing
Act of 2006'.
TITLE I--MONEY LAUNDERING
SEC. 101. SPECIFIED UNLAWFUL ACTIVITY.
Section 1956(c)(7) of title 18, United States Code, is amended to read as
follows:
`(7) the term `specified unlawful activity' means--
`(A) 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
`(B) 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;'.
SEC. 102. MAKING THE DOMESTIC MONEY LAUNDERING STATUTE APPLY TO `REVERSE
MONEY LAUNDERING' AND INTERSTATE TRANSPORTATION.
(a) In General- Section 1957 of title 18, United States Code, is amended--
(1) in the heading, by inserting `or in support of criminal activity'
after `specified unlawful activity';
(2) in subsection (a), by striking `Whoever' and inserting the following:
(3) by adding at the end the following:
`(A) in any of the circumstances set forth in subsection (d)--
`(i) conducts or attempts to conduct a monetary transaction involving
property of a value that is greater than $10,000; or
`(ii) transports, attempts to transport, or conspires to transport property
of a value that is greater than $10,000;
`(B) in or affecting interstate commerce; and
`(i) knowing that the property was derived from some form of unlawful
activity; or
`(ii) with the intent to promote the carrying on of specified unlawful
activity;
shall be fined under this title, imprisoned for a term of years not to exceed
the statutory maximum for the unlawful activity from which the property
was derived or the unlawful activity being promoted, or both.'.
(b) 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.'.
SEC. 103. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY LAUNDERING CASES.
(a) In General- Section 986 of title 18, United States Code, is amended
by adding at the end the following:
`(e) 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.'.
(b) Grand Jury and Trial Subpoenas- Section 5318(k)(3)(A)(i) of title 31,
United States Code, is amended--
(1) by striking `related to such correspondent account';
(2) by striking `or the Attorney General' and inserting `, the Attorney
General, or the Secretary of Homeland Security'; and
(3) by adding at the end the following:
`(iii) 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.'.
(c) Fair Credit Reporting Act Amendment- Section 604(a)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(a)(1)) is amended--
(1) by striking `or'; and
(2) by inserting before the period the following: `, or an investigative
subpoena issued under section 5318 of title 31, United States Code'.
(d) Obstruction of Justice- Section 1510(b) of title 18, United States Code,
is amended--
(1) 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
(2) in paragraph (3)(B), by inserting `, an investigative subpoena issued
under section 5318 of title 31, United States Code,' after `grand jury
subpoena'.
(e) Right to Financial Privacy Act- Section 1120 of the Right to Financial
Privacy Act of 1978 (12 U.S.C. 3420) is amended--
(1) in subsection (a)(1), by inserting `or to the Government' after `to
the grand jury'; and
(2) 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'.
SEC. 104. 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:
`(e) 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.'.
SEC. 105. BULK CASH SMUGGLING.
Section 5332(a) of title 31, United States Code, is amended--
(1) in subsection (b)(1), by striking `5 years' and inserting `10 years';
and
(2) by adding the end the following:
`(d) 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.'.
SEC. 106. VIOLATIONS INVOLVING COMMINGLED FUNDS AND STRUCTURED TRANSACTIONS.
Section 1957(f) of title 18, United States Code, is amended--
(1) in paragraph (2) by striking `and' at the end;
(2) in paragraph (3), by striking the period and inserting a semicolon;
and
(3) by adding at the end the following:
`(4) the term `monetary transaction in criminally derived property that
is of a value greater than $10,000' includes--
`(A) 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;
`(B) 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
`(C) any financial transaction covered under section 1956(j) that involves
more than $10,000 in proceeds of specified unlawful activity; and
`(5) 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.'.
SEC. 107. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.
(a) In General- Section 1956 of title 18, United States Code, is amended
by adding at the end the following:
`(j) 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.'.
(b) Conspiracies- Section 1956(h) of title 18, United States Code, is amended
by striking `or section 1957' and inserting `, section 1957, or section
1960'.
SEC. 108. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) Technical Amendments-
(1) IN GENERAL- Section 1960 of title 18, United States Code, is amended--
(A) in the heading by striking `unlicensed' and inserting `illegal';
(B) in subsection (a), by striking `unlicensed' and inserting `illegal';
(C) in subsection (b)(1), by striking `unlicensed' and inserting `illegal';
and
(D) in subsection (b)(1)(C), by striking `to be used to be used' and
inserting `to be used'.
(2) 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.'.
(b) 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--
(1) in paragraph (2), by striking `and' at the end;
(2) in paragraph (3), by striking the period and inserting `; and'; and
(3) by adding at the end the following:
`(4) 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.'.
(c) 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'.
(d) Authority To Investigate- Section 1960 of title 18, United States Code,
is amended by adding at the end the following:
`(c) 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.'.
SEC. 109. KNOWLEDGE THAT THE PROPERTY IS THE PROCEEDS OF A SPECIFIC FELONY.
(a) 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.
(b) Intent To Conceal or Disguise- Section 1956(a) of title 18, United States
Code, is amended--
(1) in paragraph (1)(B)(i), by striking `specified unlawful activity'
and inserting `some form of unlawful activity'; and
(2) in paragraph (2)(B)(i), by striking `specified unlawful activity'
and inserting `some form of unlawful activity'.
SEC. 110. 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'.
SEC. 111. CONDUCT IN AID OF COUNTERFEITING.
(a) 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'.
(b) 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'.
(c) Counterfeit Acts- Section 470 of title 18, United States Code, is amended
by striking `or 474' and inserting `474, or 474A'.
(d) 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'.
TITLE II--TECHNICAL AMENDMENTS
SEC. 201. TECHNICAL AMENDMENTS TO SECTIONS 1956 AND 1957.
(a) Unlawful Activity- Section 1956(c) of title 18, United States Code,
is amended--
(1) in paragraph (2), by striking `conducts' and inserting `conduct';
and
(2) in paragraph (7)(F), by inserting `, as defined in section 24(a)'
before the semicolon.
(b) Property From Unlawful Activity- Section 1957 of title 18, United States
Code, is amended--
(1) in subsection (a), by striking `engages or attempts to engage in'
and inserting `conducts or attempts to conduct'; and
(A) in paragraph (2), by striking `and' at the end;
(B) in paragraph (3), by striking the period and inserting `; and';
and
(C) by adding at the end the following:
`(4) the term `conduct' has the meaning given such term under section
1956(c)(2).'.
END
