1 2 3 4 5 6 9 (4) by inserting the following new subsection after subsection (g): "(h) a violation of section 5322 of title 31, United States Code (dealing with the reporting of currency transactions); or". TITLE IV-RIGHT TO FINANCIAL PRIVACY ACT 7 8 AMENDMENTS SEC. 401. (a) Subsection (c) of section 1103 of the Right 9 to Financial Privacy Act of 1978 (12 U.S.C. 3403(c)) is 10 amended to read as follows: 11 "NOTIFICATION OF EXISTENCE, AND DISCLOSURE, OF 12 13 14 RELEVANT INFORMATION IN RECORDS; FEDERAL PRE EMPTION "(c) Nothing in this chapter shall preclude any financial 15 institution, or any officer, employee, or agent of a financial 16 institution, from notifying a Government authority that such 17 institution, or officer, employee, or agent has information 18 which it believes may be relevant to a possible violation of 19 any statute or regulation, and thereafter disclosing such in20 formation to that Government authority, regardless of wheth21 er a subpoena, summons, search warrant, or formal written 22 request has been issued under the provisions of this chapter. 23 The provisions of this subsection and any regulations promul24 gated thereunder shall preempt any provision of any constitu25 tion, law, or regulation of any State or political subdivision 26 thereof, as well as any administrative or judicial interpreta 10 1 tion of such provision, that is not identical to the provisions of 2 this subsection and regulations thereunder, and that is more 3 restrictive of disclosure to a Government authority concern4 ing a possible violation of any statute or regulation than the 5 provisions of this subsection and regulations promulgated 6 thereunder.". 7 (b) Subsection (c) of section 1117 of the Right to Finan8 cial Privacy Act of 1978 (12 U.S.C. 3417(c)) is amended to 9 read as follows: 10 11 "GOOD-FAITH DEFENSE "(c) Any financial institution, or officer, employee, or 12 agent thereof, making a disclosure of the financial records of 13 a customer, or information contained in such records, pursu14 ant to this chapter in good-faith reliance upon a certificate by 15 any Government authority, or in good-faith belief that such 16 records or information may be relevant to a possible violation 17 of any statute or regulation, shall not be liable to the custom18 er for such disclosure or for any failure to notify the customer 19 of such disclosure.". 99TH CONGRESS 1ST SESSION H. R. 1474 To amend title 18 of the United States Code to prohibit certain methods of concealing the proceeds of crime, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 7, 1985 Mr. HUGHES introduced the following bill; which was referred jointly to the Committees on the Judiciary and Banking, Finance and Urban Affairs I A BILL To amend title 18 of the United States Code to prohibit certain methods of concealing the proceeds of crime, and for other purposes. 1 Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE. 4 This Act may be cited as the "Money Laundering Con 5 trol Act of 1985". 6 SEC. 2. MONEY LAUNDERING OFFENSE. 7 (a) IN GENERAL.-Chapter 95 (relating to racketeer 8 ing) of title 18, United States Code, is amended by adding at 9 the end thereof the following new section: 1 "§ 1956. Money laundering 2 2 "(a) OFFENSE.-Whoever knowingly engages or at 3 tempts to engage in a financial transaction in criminally de4 rived property shall be punished as provided in subsection (b). 5 "(b) PUNISHMENT. (1) Except as provided in para6 graph (2), the punishment for an offense under this section 7 is 8 9 10 11 12 13 “(A) a fine not more than $1,000,000 or imprisonment for not more than 5 years, or both, if the offender is an individual; and "(B) a fine of not more than $5,000,000, if the offender is a person other than an individual. "(2) The court may impose an alternate fine to that im 14 posable under paragraph (1) of not more than twice the 15 amount of the funds or monetary instrument in such financial 16 transaction. 17 "(c) EXTRATERRITORIAL JURISDICTION.-There is 18 extraterritorial jurisdiction over an offense under this section. "(d) DEFINITIONS.-As used in this section 19 "(1) the term 'financial transaction' means the deposit, withdrawal, transfer, or exchange, of funds or a monetary instrument (as defined for the purposes of subchapter II of chapter 53 of title 31) by, through, or to financial institution (as defined in section. 5312(a)(2) of title 31); and 1 2 3 4 5 3 "(2) the term 'criminally derived property' means any property constituting, or derived from, proceeds obtained, directly or indirectly, from a criminal offense that is listed in section 1961(1) of this title.". (b) CLERICAL AMENDMENT.-The table of sections at 6 the beginning of chapter 95 (relating to racketeering) of title 7 18, United States Code, is amended by adding at the end the 8 following new item: "1956. Money laundering.". 9 SEC. 3. INDIVIDUAL APPROVAL OF APPLICATION OF EXEMP 10 11 TIONS. (a) IN GENERAL.-Section 5318 of title 31, United 12 States Code, is amended by adding at the end of paragraph 13 (3) thereof the following new sentence: "A person shall not 14 qualify for an exemption prescribed under this paragraph 15 until the Secretary, upon application by such person, deter16 mines such person is qualified for such exemption.". 17 (b) EFFECTIVE DATE.-The amendment made by sub18 section (a) shall apply to all exemptions under section 5318 of 19 title 31, United States Code, after the 90th day after the date 20 of the enactment of this Act. 21 SEC. 4. APPLICATION OF CERTAIN REPORTING RULES TO 22 23 WIRE AND OTHER ELECTRONIC TRANSFERS. Section 5316(a)(1) of title 31, United States Code is 24 amended by inserting "transfers funds by wire or other elec25 tronic means, or" after "(1)". |