2 1 "§ 1956. Laundering of monetary instruments 2 "(a) Whoever conducts or causes to be conducted a 3 transaction or series of transactions involving one or more 4 monetary instruments in, through, or by a financial institu5 tion which is engaged in, or the activities of what affect, 6 interstate commerce, or attempts so to do— 7 8 9 10 11 12 13 14 "(1) with intent to promote, manage, establish, carry on, or facilitate the promotion, management, establishment, or carrying on, of any unlawful activity; or "(2) with knowledge or reason to know that such monetary instruments represent income derived, directly or indirectly, from any unlawful activity, or the proceeds of such income, 15 shall be fined not more than $250,000 or twice the value of 16 the monetary instruments, whichever is greater, or impris17 oned not more than five years, or both, for the first such 18 offense, and shall be fined not more than $1,000,000 or five 19 times the value of the monetary instruments, whichever is 20 greater, or imprisoned not more than ten years, or both, for 21 each such offense thereafter. "(b) As used in this section "(1) the term 'conducts' includes, but is not limit ed to, initiating, concluding, or participating in con ducting, initiating, or concluding a transaction; 3 "(2) the term 'transaction' includes, but is not limited to, a deposit, withdrawal, transfer between ac counts, exchange of currency, loan, extension of credit, purchase or sale of any stock, bond, certificate of deposit, or other monetary instrument, or any other payment, transfer, or delivery by, through, or to a financial institution, by whatever means effected; "(3) the term 'monetary instruments' means monetary instruments as defined in section 203(1) of the Currency and Foreign Transactions Reporting Act, as revised (31 U.S.C. 5312(a)(3)); "(4) the term 'financial institution' means financial institution as defined in section 203(e) of the Currency and Foreign Transactions Reporting Act, as revised (31 U.S.C. 5312(a)(2)); and "(5) the term 'unlawful activity' means any act or acts constituting “(A) a pattern of racketeering activity or collection of unlawful debt, as those terms are defined in section 901(a) of the Organized Crime Control Act of 1970 (18 U.S.C. 1961-1968); "(B) a continuing criminal enterprise, as that term is defined in section 408 of the Controlled Substances Act (21 U.S.C. 848); 4 "(C) an offense under any of the following provisions of title 18, United States Code: section 201 (relating to bribery), section 224 (relating to bribery in sporting contests), sections 471-473 (relating to counterfeiting), section 659 (relating to theft from interstate shipment) if the offense is felonious, section 664 (relating to embezzlement from pension and welfare funds), sections 891– 894 (relating to extortionate credit transactions), section 1084 (relating to the transmission of gambling information), section 1341 (relating to mail fraud), section 1343 (relating to wire fraud), sections 1461-1465 (relating to obscene matter), sec tion 1503 (relating to obstruction of justice), section 1510 (relating to obstruction of criminal investigations), section 1511 (relating to obstruction of State or local law enforcement), section 1951 (relating to interference with commerce by threats or violence), section 1952 (relating to racketeering enterprises), section 1953 (relating to interstate transportation of wagering paraphernalia), section 1954 (relating to unfair welfare fund payments), section 1955 (relating to prohibition of illegal gambling businesses), sections 2314 and 2315 (re lating to interstate transportation of stolen proper 1 2 3 4 5 6 7 8 9 10 11 12 13 14 5 ty), sections 2341-2346 (relating to trafficking in contraband cigarettes), or sections 2421-2424 (relating to white slave traffic); "(D) an offense under title 29, United States Code, section 186 (relating to restrictions on pay ments and loans to labor organizations) or section 501(c) (relating to embezzlement from union funds); or “(E) an offense involving the felonious manufacture, importation, receiving, concealment, buying, selling, or otherwise dealing in narcotic or other dangerous drugs, punishable under any law of the United States. "(c) The provisions of this section shall be liberally con 15 strued to effectuate its remedial purpose. 16 "(d) Nothing in this section shall supersede any provi17 sion of Federal, State or other law imposing criminal penal18 ties or affording civil remedies in addition to those provided 19 for in this section. 20 "(e) Violations of this section shall be investigated by 21 the Federal Bureau of Investigation, the Drug Enforcement 22 Administration, and the Internal Revenue Service, as appro23 priate. 24 "(f) There is extraterritorial jurisdiction over the con 25 duct prohibited by this section.". 6 1 (b) The table of sections at the beginning of chapter 95 2 of title 18 is amended by adding at the end the following new 3 item: "1956. Laundering of monetary instruments". 4 TITLE II-CURRENCY AND FOREIGN TRANSAC 5 6 TIONS REPORTING ACT AMENDMENTS SEC. 201. Section 5318 of title 31, United States Code, 7 is amended 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) by inserting "(a)" after "SEC. 5318."; (2) by inserting ", except as provided in subsec tion (c)" before the semicolon at the end of paragraph (1); (2); (4); (3) by striking out "and" at the end of paragraph (4) by redesignating paragraph (3) as paragraph (5) by inserting after paragraph (2) the following: “(3)(A) examine any books, papers, records, or other data of domestic financial institutions pursuant to the recordkeeping and reporting requirements under this subchapter; "(B) summon an officer or employee of a financial institution, or any person having possession, custody, or care of the reports or records required under the subchapter, to appear before the Secretary of the Treasury or his delegate at a time and place named in |