20

1 (c) Subsection (a) does not apply to any common 2 carrier of passengers in respect of monetary instruments in 3 the possession of its passengers, nor to any common carrier 4 of goods in respect of shipments of monetary instruments not declared to be such by the shipper.

5

Sec. 232. Forfeiture

(a) Any monetary instruments which are in the process

of any transportation with respect to which any report re

quired to be filed under section 231 (1) either has not been

filed or contains material omissions or misstatements are sub

ject to seizure and forfeiture to the United States.

(b) For the purpose of this section, monetary instruments transported by mail, by any common carrier, or by any messenger or bailee, are in process of transportation from

the time they are delivered into the possession of the postal

service, common carrier, messenger, or bailee until the time

they are delivered into or retained in the possession of the

addressee or intended recipient or any agent of the addressee

or intended recipient for purposes other than further trans

portation within, or across any border of, the United States.

Sec. 233. Civil liability

The Secretary may assess a civil penalty upon any person

who fails to file any report required under section 231, or who

files such a report containing any material omission or mis

statement. The amount of the penalty shall not exceed the

21

1 amount of the monetary instruments with respect to whose 2 transportation the report was required to be filed. The liabili3 ties imposed by this chapter are in addition to any other 4 liabilities, civil or criminal, except that the liability under 5 this section shall be reduced by any amount actually forfeited 6 under section 232.

7 Sec. 234. Remission by the Secretary

8

The Secretary may in his discretion remit any forfeiture

9 or penalty under this chapter in whole or in part upon such

10

11

terms and conditions as he deems reasonable and just.

Sec.

CHAPTER 4.-FOREIGN TRANSACTIONS

241. Records and reports required.

242. Classification and requirements.

12 Sec. 241. Records and reports required

13

The Secretary of the Treasury shall by regulation re14 quire any resident or citizen of the United States, or person 15 in the United States and doing business therein, who engages 16 in any transaction or maintains any relationship, directly or 17 indirectly, on behalf of himself or another, with a foreign 18 financial agency to maintain records or to file reports, or 19 both, setting forth such of the following information, in such 20 form and in such detail, as the Secretary may require:

(1) The identities and addresses of the parties to

the transaction or relationship.

(2) The legal capacities in which the parties to

22

1

2

3

4

5

6

7

8

the transaction or relationship are acting, and the identi

ties of the real parties in interest if one or more of the

parties are not acting solely as principals.

(3) A description of the transaction or relationship including the amounts of money, credit, or other property involved.

Sec. 242. Classification and requirements

With respect to any requirement imposed under this

9 chapter, the Secretary may prescribe

(1) any reasonable classification of persons subject thereto or exempt therefrom.

(2) the foreign country or countries as to which any requirement applies or does not apply if, in the judgment of the Secretary, uniform applicability of any such requirement to all foreign countries is unnecessary or undesirable.

(3) the form, frequency, and manner of filing of

any required reports.

(4) types of transactions or relationships subject to

or exempt from any such requirement.

(5) the magnitude of any transactions, or of values involved in any relationship, subject to any such requirement.

(6) such other matters as he may deem necessary

to the application of this chapter.

23

1

TITLE III-MARGIN REQUIREMENTS

2 Sec. 301. Amendment of section 7(a) of the Securities Ex

3

4

change Act of 1934

(a) Section 7 (a) of the Securities Exchange Act of

5 1934 (15 U.S.C. 78g (a)) is amended by striking the first

7

sentence and inserting in lieu thereof the following: "For the

purpose of preventing the excessive use of credit for the pur8 chase or carrying of securities, the Board of Governors of 9 the Federal Reserve System shall from time to time prescribe 10 rules and regulations in accordance with this section. The 11 Board shall prescribe rules and regulations with respect to 12 the amount of credit (regardless of who or where the lender 13 may be) that any person may initially obtain and subsequently retain on any security (other than an exempted

14

15

security). The Board shall prescribe rules and regulations 16 with respect to the amount of credit (regardless of who or 17 where the borrower may be) that any person may initially 18 extend and subsequently maintain on any security (other 19 than an exempted security). It shall be unlawful for any 20 person to obtain or retain credit in willful and knowing violation of any rule or regulation under this section. It shall 22 be unlawful for any person to obtain or retain credit in

21

23

violation, whether or not willful or knowing, of any rule 24 or regulation under this section either on the basis of a

25 material misrepresentation made or participated in by him.

24

1

3

of the purpose for which the credit is to be used, or in an

aggregate amount exceeding $1,000,000 at any one time."

(b) The amendment made by subsection (a) of this 4 section does not affect the continuing validity of any rule or

5 regulation under section 7 of the Securities Exchange Act of

6

7

1934 in effect prior to the effective date of the amendment. TITLE IV-EFFECTIVE DATES

8 Sec. 401. Effective dates

9 (a) Except as otherwise provided in this section, this 10 Act and the amendments made thereby take effect on the 11 first day of the seventh calendar month which begins after 12 the date of enactment.

13

14

(b) The Secretary of the Treasury may by regulation

provide that any provision of title I or II or any amendment 15 made thereby shall be effective on any date not earlier than 16 the publication of the regulation in the Federal Register 17 and not later than the first day of the thirteenth calendar 18 month which begins after the date of enactment.

(c) The Board of Covernors of the Federal Reserve

System may by regulation provide that the amendment made