Housing and Community Development Act of 1992/Title XV/Subtitle C

SUBTITLE C—MONEY LAUNDERING ENFORCEMENT IMPROVEMENTS

SEC. 1521. JURISDICTION IN CIVIL FORFEITURE CASES.

Section 1355 of title 28, United States Code, is amended—

(1) by inserting ``(a)´´ before ``The district´´; and

(2) by adding at the end the following new subsections:

``(b)(1) A forfeiture action or proceeding may be brought in—

``(A) the district court for the district in which any of the acts or omissions giving rise to the forfeiture occurred, or

``(B) any other district where venue for the forfeiture action or proceeding is specifically provided for in section 1395 of this title or any other statute.

``(2) Whenever property subject to forfeiture under the laws of the United States is located in a foreign country, or has been detained or seized pursuant to legal process or competent authority of a foreign government, an action or proceeding for forfeiture may be brought as provided in paragraph (1), or in the United States District court for the District of Columbia.

``(c) In any case in which a final order disposing of property in a civil forfeiture action or proceeding is appealed, removal of the property by the prevailing party shall not deprive the court of jurisdiction. Upon motion of the appealing party, the district court or the court of appeals shall issue any order necessary to preserve the right of the appealing party to the full value of the property at issue, including a stay of the judgment of the district court pending appeal or requiring the prevailing party to post an appeal bond.

``(d) Any court with jurisdiction over a forfeiture action pursuant to subsection (b) may issue and cause to be served in any other district such process as may be required to bring before the court the property that is the subject of the forfeiture action.´´.

SEC. 1522. CIVIL FORFEITURE OF FUNGIBLE PROPERTY.

(a) IN GENERAL—

Chapter 46 of title 18, United States Code, is amended by adding at the end the following new section:

``Sec. 984. Civil forfeiture of fungible property

``(a) This section shall apply to any action for forfeiture brought by the Government in connection with any offense under section 1956, 1957, or 1960 of this title or section 5322 of title 31, United States Code.

``(b)(1) In any forfeiture action in rem in which the subject property is cash, monetary instruments in bearer form, funds deposited in an account in a financial institution (as defined in section 20 of this title), or other fungible property—

``(A) it shall not be necessary for the Government to identify the specific property involved in the offense that is the basis for the forfeiture; and

``(B) it shall not be a defense that the property involved in such an offense has been removed and replaced by identical property.

``(2) Except as provided in subsection (c), any identical property found in the same place or account as the property involved in the offense that is the basis for the forfeiture shall be subject to forfeiture under this section.

``(c) No action pursuant to this section to forfeit property not traceable directly to the offense that is the basis for the forfeiture may be commenced more than 1 year from the date of the offense.

``(d)(1) No action pursuant to this section to forfeit property not traceable directly to the offense that is the basis for the forfeiture may be taken against funds held by a financial institution in an interbank account, unless the financial institution holding the account knowingly engaged in the offense.

``(2) As used in this section, the term ``interbank account´´ means an account held by one financial institution at another financial institution primarily for the purpose of facilitating customer transactions.´´.

(b) CONFORMING AMENDMENT—

The chapter analysis for chapter 46 of title 18, United States Code, is amended by adding at the end the following:

``984. Civil forfeiture of fungible property.´´.

SEC. 1523. PROCEDURE FOR SUBPOENAING BANK RECORDS.

(a) IN GENERAL—

Chapter 46 of title 18, United States Code, is amended by adding at the end the following new section:

``Sec. 986. Subpoenas for bank records

``(a) At any time after the commencement of any action for forfeiture in rem brought by the United States under section 1956, 1957, or 1960 of this title, section 5322 of title 31, United States Code, or the Controlled Substances Act, any party may request the Clerk of the Court in the district in which the proceeding is pending to issue a subpoena duces tecum to any financial institution, as defined in section 5312(a) of title 31, United States Code, to produce books, records and any other documents at any place designated by the requesting party. All parties to the proceeding shall be notified of the issuance of any such subpoena. The procedures and limitations set forth in section 985 of this title shall apply to subpoenas issued under this section.

``(b) Service of a subpoena issued pursuant to this section shall be by certified mail. Records produced in response to such a subpoena may be produced in person or by mail, common carrier, or such other method as may be agreed upon by the party requesting the subpoena and the custodian of records. The party requesting the subpoena may require the custodian of records to submit an affidavit certifying the authenticity and completeness of the records and explaining the omission of any record called for in the subpoena.

``(c) Nothing in this section shall preclude any party from pursuing any form of discovery pursuant to the Federal Rules of Civil Procedure.´´.

(b) CONFORMING AMENDMENT—

The chapter analysis for chapter 46 of title 18, United States Code, is amended by adding at the end the following:

``986. Subpoenas for bank records.´´.

SEC. 1524. DELETION OF REDUNDANT AND INADVERTENTLY LIMITING PROVISION IN 18 U.S.C. 1956.

Section 1956(c)(7)(D) of title 18, United States Code, is amended—

(1) by striking ``section 1341 (relating to mail fraud) or section 1343 (relating to wire fraud) affecting a financial institution, section 1344 (relating to bank fraud),´´; and

(2) by striking ``section 1822 of the Mail Order Drug Paraphernalia Control Act (100 Stat. 3207-51; 21 U.S.C. 857)´´ and inserting ``section 422 of the Controlled Substances Act´´.

SEC. 1525. STRUCTURING TRANSACTIONS TO EVADE CMIR REQUIREMENT.

(a) IN GENERAL—

Section 5324 of title 31, United States Code, is amended—

(1) by inserting ``(a) DOMESTIC COIN AND CURRENCY TRANSACTIONS— ´´ before ``No person´´; and

(2) by adding at the end the following:

``(b) INTERNATIONAL MONETARY INSTRUMENT TRANSACTIONS— No person shall, for the purpose of evading the reporting requirements of section 5316—

``(1) fail to file a report required by section 5316, or cause or attempt to cause a person to fail to file such a report;

``(2) file or cause or attempt to cause a person to file a report required under section 5316 that contains a material omission or misstatement of fact; or

``(3) structure or assist in structuring, or attempt to structure or assist in structuring, any importation or exportation of monetary instruments.´´.

(b) CONFORMING AMENDMENT—

Section 5321(a)(4)(C) of title 31, United States Code, is amended by striking ``under section 5317(d)´´.

(c) FORFEITURE—

(1) TITLE 18—

Section 981(a)(1)(A) of title 18, United States Code, is amended by striking ``5324´´ and inserting ``5324(a)´´.

(2) TITLE 31—

Section 5317(c) of title 31, United States Code, is amended by inserting after the first sentence ``Any property, real or personal, involved in a transaction or attempted transaction in violation of section 5324(b), or any property traceable to such property, may be seized and forfeited to the United States Government.´´.

SEC. 1526. CLARIFICATION OF DEFINITION OF FINANCIAL INSTITUTION.

(a) SECTION 1956—

Section 1956(c)(6) of title 18, United States Code, is amended by striking ``and the regulations´´ and inserting ``or the regulations´´.

(b) SECTION 1957—

Section 1957(f)(1) of title 18, United States Code, is amended by striking ``financial institution (as defined in section 5312 of title 31)´´ and inserting ``financial institution (as defined in section 1956 of this title)´´.

SEC. 1527. DEFINITION OF FINANCIAL TRANSACTION.

(a) SECTION 1956—

Section 1956(c) of title 18, United States Code, is amended—

(1) in paragraph (4)(A)—

(A) by inserting ``or (iii) involving the transfer of title to any real property, vehicle, vessel, or aircraft,´´ after ``monetary instruments,´´;

(B) by striking ``which in any way or degree affects interstate or foreign commerce,´´; and

(C) by inserting ``which in any way or degree affects interstate or foreign commerce´´ after ``(A) a transaction´´; and

(2) in paragraph (3), by inserting ``use of a safe deposit box,´´ before ``or any other payment´´.

(b) SECTION 1957—

Section 1957(f)(1) of title 18, United States Code, is amended by inserting ``, including any transaction that would be a financial transaction under section 1956(c)(4)(B) of this title,´´ before ``but such term does not include´´.

SEC. 1528. OBSTRUCTING A MONEY LAUNDERING INVESTIGATION.

Section 1510(b)(3)(B)(i) of title 18, United States Code, is amended by striking ``or 1344´´ and inserting ``1344, 1956, 1957, or chapter 53 of title 31´´.

SEC. 1529. AWARDS IN MONEY LAUNDERING CASES.

Section 524(c)(1)(B) of title 28, United States Code, is amended by inserting ``or of sections 1956 and 1957 of title 18, sections 5313 and 5324 of title 31, and section 6050I of the Internal Revenue Code of 1986´´ after ``criminal drug laws of the United States´´.

SEC. 1530. PENALTY FOR MONEY LAUNDERING CONSPIRACIES.

Section 1956 of title 18, United States Code, is amended by inserting at the end the following new subsection:

``(g) Any person who conspires to commit any offense defined in this section or section 1957 shall be subject to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.´´.

SEC. 1531. TECHNICAL AND CONFORMING AMENDMENTS TO MONEY LAUNDERING PROVISION.

(a) TRANSPORTATION—

Subsections (a)(2) and (b) of section 1956 of title 18, United States Code, are amended by striking ``transportation´´ each time such term appears and inserting ``transportation, transmission, or transfer.´´

(b) TECHNICAL CORRECTION—

Section 1956(a)(3) of title 18, United States Code, is amended by striking ``represented by a law enforcement officer´´ and inserting ``represented´´.

SEC. 1532. PRECLUSION OF NOTICE TO POSSIBLE SUSPECTS OF EXISTENCE OF A GRAND JURY SUBPOENA FOR BANK RECORDS IN MONEY LAUNDERING AND CONTROLLED SUBSTANCE INVESTIGATIONS.

Section 1120(b)(1)(A) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3420(b)(1)(A)) is amended by inserting before the semicolon ``or crime involving a violation of the Controlled Substance Act, the Controlled Substances Import and Export Act, section 1956 or 1957 of title 18, sections 5313, 5316 and 5324 of title 31, or section 6050I of the Internal Revenue Code of 1986´´.

SEC. 1533. ELIMINATION OF RESTRICTION ON DISPOSAL OF FORFEITED PROPERTY BY THE DEPARTMENT OF THE TREASURY AND THE POSTAL SERVICE.

Section 981(e) of title 18, United States Code, is amended by striking ``The authority granted to the Secretary of the Treasury and the Postal Service pursuant to this subsection shall apply only to property that has been administratively forfeited.´´.

SEC. 1534. NEW MONEY LAUNDERING PREDICATE OFFENSES.

Section 1956(c)(7)(D) of title 18, United States Code, is amended—

(1) by striking ``or´´ before ``section 16´´;

(2) by inserting ``section 1708 (theft from the mail),´´ before ``section 2113´´; and

(3) by inserting before the semicolon; ``, any felony violation of section 9(c) of the Food Stamp Act of 1977 (relating to food stamp fraud) involving a quantity of coupons having a value of not less than $5,000, or any felony violation of the Foreign Corrupt Practices Act´´.

SEC. 1535. AMENDMENTS TO THE BANK SECRECY ACT.

(a) TITLE 31—

Title 31, United States Code, is amended—

(1) in section 5324, by inserting ``, section 5325, or the regulations issued thereunder´´ after ``section 5313(a)´´ each place such term appears; and

(2) in section 5321(a)(5)(A), by inserting ``or any person willfully causing´´ after ``willfully violates´´.

(b) FEDERAL DEPOSIT INSURANCE ACT—

Section 21(j)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1829b(j)(1)) is amended by inserting ``, or any person who willfully causes such a violation,´´ after ``gross negligence violates´´.

(c) RECORDKEEPING—

Public Law 91-508 (12 U.S.C. 1951 et seq.) is amended—

(1) in section 125(a), by inserting ``or any person willfully causing a violation of the regulation,´´ after ``applies,´´; and

(2) in section 127, by inserting ``, or willfully causes a violation of´´ after ``Whoever willfully violates´´.

SEC. 1536. EXPANSION OF MONEY LAUNDERING LAW TO COVER PROCEEDS OF CERTAIN FOREIGN CRIMES.

Section 1956(c)(7)(B) of title 18, United States Code, is amended—

(1) by striking ``involving the manufacture´´ and inserting the following: ``involving—

``(i) the manufacture´´; and

(2) by adding at the end the following:

``(ii) kidnaping, robbery, or extortion; or

``(iii) fraud, or any scheme or attempt to defraud, by or against a foreign bank (as defined in paragraph 7 of section 1(b) of the International Banking Act of 1978;´´.