MDM\MDM03.556 S.L.C.
S. _______________
108TH
CONGRESS
1ST
SESSION
IN
THE SENATE OF THE UNITED STATES
Mr. HATCH
(for himself, Mr. SESSIONS, Mr. GRAHAM of South Carolina, Mr.
A BILL
To combat
narco-terrorism, to dismantle narco-terrorist
criminal enterprises, to disrupt
narco-terrorist financing
and money laundering schemes, to enact national
drug
sentencing reform, to prevent drug trafficking to chil-
dren, to
deter drug-related violence, to provide law en-
forcement with the tools needed to win the
war against
narco-terrorists and major drug traffickers, 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,
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MDM\MDM03.556 S.L.C.
2
1
SECTION 1. SHORT TITLE; TABLE OF
CONTENTS.
2
(a) SHORT TITLE. This Act may be
cited as the
3
Vital Interdiction of Criminal
Terrorist Organizations
4
Act of 2003 or the VICTORY Act
.
5
(b) TABLE
OF
CONTENTS. The table of contents
for
6
this Act is as follows:
Sec. 1.
Short title; table of contents.
Sec. 2.
Severability clause.
TITLE I COMBATING NARCO-TERRORISTS WHO AID
AND
SUPPORT TERRORISTS OR TERRORIST
ORGANIZATIONS
Sec. 101.
Prohibition of narco-terrorism.
Sec. 102.
Narco-terrorist criminal enterprises.
Sec. 103. Increased civil and criminal
penalties for persons and entities who fa-
cilitate financing of
narco-terrorists and terrorists.
TITLE II
PREVENTING AND PUNISHING INTERNATIONAL MONEY
LAUNDERING
Subtitle A Prohibiting Money Laundering
Through Hawalas, Reverse
Money Laundering, and Other Money
Laundering Schemes
Sec. 201.
Preventing narco-terrorists from laundering money using hawalas.
Sec. 202.
Interstate transportation of criminal proceeds and reverse money
laundering by currency
couriers.
Sec. 203. Freezing bank accounts of persons arrested for money
laundering and
bulk cash smuggling.
Sec. 204.
Procedure for issuing subpoenas in money laundering cases.
Sec. 205. Using
blank checks in bearer form to smuggle money.
Sec. 206. Treating electronic
funds as fungible property.
Sec. 207. Making domestic money laundering
statute apply to reverse money
laundering.
Sec. 208. Making
international money laundering statute apply to tax evasion.
Sec. 209.
Section 1957 violations involving commingled funds and structured
transactions.
Sec. 210.
Charging money laundering as a course of conduct.
Sec. 211.
Laundering the proceeds of foreign crimes.
Sec. 212.
Illegal money transmitting businesses.
Sec. 213.
Definition of public official.
Sec. 214.
Other specified activity for money laundering.
Subtitle B Recovering and Confiscating
Criminal Proceeds
Sec. 221.
Criminal forfeiture for money laundering conspiracies.
Sec. 222. Fungible
property.
Sec. 223.
Forfeiting the proceeds of foreign crimes.
Sec. 224.
Recovery of criminal proceeds from third parties.
Sec. 225.
Restraint of proceeds of foreign crime.
Sec. 226.
Extraterritorial jurisdiction.
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Sec. 227.
Availability of tax records.
Sec. 228.
Civil order to repatriate assets.
Sec. 229. Forfeiture for failure to report
large cash transactions.
Sec. 230. Assets of persons committing terrorist
acts against foreign countries.
Sec. 231. Technical amendment to restore
wiretap authority for certain money
laundering offenses.
Sec. 232.
Knowledge that the property is the proceeds of a specific felony.
Sec. 233.
Discovery procedure for locating laundered money.
Sec. 234. Authorization to
share recovered property with cooperating foreign
governments.
Sec. 235.
Criminal forfeiture of property in government custody.
Sec. 236.
Non-abatement of criminal forfeiture when defendant dies pending
appeal.
Sec. 237.
Miscellaneous minor and technical amendments.
Sec. 238. Venue for prisoner
challenges to seizure of crime proceeds.
Sec. 239. Restoring criminal
proceeds to victims.
Sec. 240. Affording property owners a hearing on the
seizure of real property.
Sec. 241. Jurisdiction of magistrates.
Sec.
242. Technical amendment regarding the procedures for criminal for-
feiture.
Sec. 243.
Clarification of 18 U.S.C. 3322.
Sec. 244. Minor amendments to the Civil
Asset Forfeiture Reform Act of 2000.
Sec. 245. Collection of criminal
forfeiture judgment.
Sec. 246.
Property detained at the border.
Sec. 247. Exemption from liability for
attorney fees in international money
laundering cases.
Sec. 248.
Technical correction regarding forfeiture authority for Secretary,
Homeland Security.
Sec. 249.
Rule 32.2.
Sec. 250.
Forfeiture of the value of drugs seized.
Sec. 251. Forfeiture of
facilitating property in narco-terrorism cases and prop-
erty traceable to such
property.
Sec. 252. Forfeiture of instrumentalities of terrorism, fraud, and
other offenses.
TITLE III NATIONAL DRUG SENTENCING
REFORM
Sec. 301.
Sentencing guideline conforming changes and enhancements for
acts
of violence during the course of
a drug trafficking offense.
Sec. 302. Increase in sentence for aggravating
factors.
Sec. 303. Removing sentencing cap on drug traffickers who
facilitate the avail-
ability and distribution of large
quantities of illegal drugs.
Sec. 304. Additional serious drug offenses as
armed career criminal act predi-
cates.
Sec. 305. Limit on
sentencing of certain defendants in drug trafficking cases.
Sec. 306.
Restoration of orderly gradation of sentences to punish large-scale
drug traffickers.
Sec. 307.
Conforming sentencing guidelines to conspiracy law.
Sec. 308. Elderly,
nonviolent prisoner pilot program.
Sec. 309.
Emergency amendment authority.
TITLE IV PROTECTING CHILDREN FROM DRUG
TRAFFICKERS
AND PREVENTING DRUG-RELATED VIOLENT
CRIME
Sec. 401.
Murder and other violent crimes committed during and in relation
to
a drug trafficking crime.
Sec. 402.
Protection of children from drug traffickers.
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TITLE V
PROVIDING THE TOOLS NEEDED TO WIN THE WAR
AGAINST NARCO-TERRORISM, DRUG TRAFFICKERS WHO
SELL
TO
CHILDREN, AND VIOLENT DRUG TRAFFICKERS
Sec. 501.
Predicate crimes for authorization of interception of wire, oral,
and
electronic
communications.
Sec. 502. Limiting application of statutory exclusionary
rule where law enforce-
ment agents act in good
faith.
Sec. 503. Administrative subpoenas for terrorism
investigations.
Sec. 504. Administrative subpoenas to apprehend
fugitives.
Sec. 505. Expanded jurisdiction to issue orders to intercept
communications.
Sec. 506. Directive to United States Sentencing
Commission.
1
SEC. 2. SEVERABILITY
CLAUSE.
2
If any provision of this Act, an
amendment made by
3
this Act, or the application of
such provision or amend-
4
ment to any person or circumstance
is held to be unconsti-
5
tutional, the remainder of this
Act, the amendments made
6
by this Act, and the application of
the provisions of such
7
to any person or circumstances
shall not be affected there-
8
by.
9
TITLE I—COMBATING
NARCO-
10
TERRORISTS WHO AID
AND
11
SUPPORT TERRORISTS
OR
12
TERRORIST
ORGANIZATIONS
13
SEC. 101. PROHIBITION OF
NARCO-TERRORISM.
14
Part A of the Controlled Substance
Import and Ex-
15
port Act (21 U.S.C. 951 et seq.) is
amended by inserting
16
after section 1010 the
following:
17
NARCO-TERRORISTS WHO AID AND SUPPORT
18
TERRORISTS OR FOREIGN TERRORIST
ORGANIZATIONS
19
SEC. 1010A.
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1
(a) PROHIBITED ACTS. Any person
who, in a cir-
2
cumstance described in subsection
(c), manufactures, dis-
3
tributes, imports, exports, or
possesses with intent to dis-
4
tribute or manufacture a controlled
substance,
5
flunitrazepam, or listed chemical,
or attempts or conspires
6
to do so, knowing or intending that
such activity, directly
7
or indirectly, aids or provides
support, resources, or any-
8
thing of pecuniary value to
9
(1) a foreign terrorist
organization; or
10
(2) any person or group involved in
the plan-
11
ning, preparation for, or carrying
out of, a terrorist
12
offense,
13
shall be punished as provided under
subsection (b).
14
(b) PENALTIES.
15
(1) IN
GENERAL. Any person who violates
16
subsection (a) shall be sentenced
to
17
(A)(i) a term of imprisonment of
not less
18
than 20 years and not more than
life; or
19
(ii) if death or serious bodily
injury re-
20
sults from the use of a controlled
substance, a
21
term of imprisonment of not less
than 30 years
22
and not more than life;
23
(B) a fine not to exceed
24
(i) $4,000,000, if the defendant
is an
25
individual; or
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1
(ii) $10,000,000, if the defendant
is
2
not an individual; and
3
(C) a term of supervised release
of not
4
less than 5 years.
5
(2) PRIOR
CONVICTION FOR FELONY DRUG
OF-
6
FENSE. Any person who violates subsection
(a)
7
after a prior conviction of such
person for a felony
8
drug offense becomes final, shall
be sentenced to
9
(A)(i) a term of imprisonment of
not less
10
than 30 years and not more than
life; or
11
(ii) if death or serious bodily
injury re-
12
sults from the use of a controlled
substance, a
13
term of life imprisonment;
14
(B) a fine not to exceed
15
(i) $8,000,000, if the defendant
is an
16
individual; or
17
(ii) $20,000,000, if the defendant
is
18
not an individual; and
19
(C) a term of supervised release
of not
20
less than 10 years.
21
(c) JURISDICTION. A United States
district court
22
shall have jurisdiction over an
offense described in sub-
23
section (a) if
24
(1) the offense takes place in the
United
25
States; or
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1
(2) the offense takes place
outside of the
2
United States and
3
(A) the perpetrator is
4
(i) a national of the United
States;
5
or
6
(ii) a stateless person whose
habitual
7
residence is in the United
States;
8
(B) the offense
9
(i) was directed toward, or
resulted
10
in, the carrying out of a terrorist
offense
11
(I) against any property that
is
12
owned or leased by any department
or
13
agency of the United States,
including
14
an embassy or other diplomatic
or
15
consular premises of the
United
16
States;
17
(II) against any person or
prop-
18
erty within the United
States;
19
(III) against any national of
the
20
United States or the property of
such
21
national;
22
(IV) against any property
of
23
any legal entity organized under
the
24
laws of the United States, or any
of
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1
its States, districts,
commonwealths,
2
territories, or possessions;
or
3
(V) in an attempt to compel
the
4
United States to do or abstain
from
5
doing any act; or
6
(ii) is committed
7
(I) on board an aircraft,
which
8
is registered under the laws of
the
9
United States at the time the
offense
10
is committed or is operated by
the
11
United States; or
12
(II) on board a vessel of
the
13
United States (as defined in
section
14
3(b) of the Maritime Drug
Enforce-
15
ment Act (46 U.S.C. 1903(b)) or
on
16
board a vessel subject to the
jurisdic-
17
tion of the United States (as
defined
18
in section 3(c) of that Act);
or
19
(C) the foreign terrorist
organization has
20
been designated pursuant to the
authority
21
granted under the Immigration and
Nationality
22
Act.
23
(d) ACTS COMMITTED OUTSIDE
TERRITORIAL JU-
24
RISDICTION OF
UNITED STATES. This section is
in-
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9
1
tended to reach prohibited acts,
which are committed out-
2
side the territorial jurisdiction
of the United States.
3
(e) PROOF REQUIREMENTS. The
prosecution shall
4
not be required to prove that any
defendant knew that
5
an organization was designated as a
foreign terrorist or-
6
ganization under the Immigration
and Nationality Act. .
7
(f) DEFINITIONS. In this section,
the following
8
definitions shall apply:
9
(1) ANYTHING
OF PECUNIARY VALUE. The
10
term anything of pecuniary value
has the meaning
11
given the term in section
1958(b)(1) of title 18,
12
United States Code.
13
(2) NATIONAL
OF THE UNITED STATES. The
14
term national of the United States
has the meaning
15
given the term in section
101(a)(22) of the Immi-
16
gration and Nationality Act (8
U.S.C. 1101(a)(22)).
17
(3) TERRORIST
OFFENSE. The term ter-
18
rorist offense means
19
(A) an act which constitutes an
offense
20
within the scope of a treaty, as
defined under
21
section 2339C(e)(7) of title 18,
United States
22
Code, which has been implemented by
the
23
United States;
24
(B) any other act intended to
cause death
25
or serious bodily injury to a
civilian, or to any
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10
1
other person not taking an active
part in the
2
hostilities in a situation of armed
conflict, when
3
the purpose of such act, by its
nature or con-
4
text, is to intimidate a
population, or to compel
5
a government or an international
organization
6
to do or to abstain from doing any
act.
7
(4) TERRORIST
ORGANIZATION. The term
8
terrorist organization has the
meaning given the
9
term in section 212(a)(3)(B)(vi) of
the Immigration
10
and Nationality Act (8 U.S.C.
1182(a)(3)(B)(vi)). .
11
SEC. 102. NARCO-TERRORIST
CRIMINAL ENTERPRISES.
12
Part A of the Controlled Substance
Import and Ex-
13
port Act (21 U.S.C. 951 et seq.) is
amended by inserting
14
after section 1010A (as added by
section 101) the fol-
15
lowing:
16
NARCO-TERRORIST KINGPINS
17
SEC. 1010B.
18
(a) PROHIBITED ACTS; PENALTIES.
19
(1) IN
GENERAL. Any person who engages in
20
a narco-terrorist continuing
enterprise shall be
21
(A) imprisoned for a period of not
less
22
than 40 years and not more than
life;
23
(B) if the defendant is an
individual, sub-
24
ject to a fine in an amount not
greater than
25
$4,000,000; and
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1
(C) if the defendant is other than
an indi-
2
vidual, subject to a fine in an
amount not
3
greater than $10,000,000.
4
(2) ENHANCED
PENALTY. Any person who,
5
after being convicted of a felony
drug offense or
6
crime of violence, who engages in,
or works in fur-
7
therance of, a narco-terrorist
continuing enterprise,
8
shall be
9
(A) imprisoned for a period of not
less
10
than 50 years and not more than
life;
11
(B) if the defendant is an
individual, sub-
12
ject to a fine in an amount not
greater than
13
$8,000,000; and
14
(C) if the defendant is other than
an indi-
15
vidual, subject to a fine in an
amount not
16
greater than $20,000,000.
17
(b) DEFINITIONS. In this section,
the following
18
definitions shall apply:
19
(1) PERSON
ENGAGED IN A NARCO-TERRORIST
20
CONTINUING ENTERPRISE. The term person en-
21
gaged in a narco-terrorist
continuing enterprise
22
means a person who violates section
1010A if such
23
violation is a part of a continuing
series of violations
24
of section 1010A
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12
1
(A) which are undertaken by such
person
2
in concert with not less than 5
persons, to
3
whom such person occupies a
position of orga-
4
nizer, supervisor, or any other
position of man-
5
agement; and
6
(B) from which such person obtains
sub-
7
stantial income or
resources.
8
(2) CONTINUING
SERIES OF VIOLATIONS.
9
The term a continuing series of
violations means
10
not less than 3 violations of
section 1010A.
11
(c) ACTS COMMITTED OUTSIDE UNITED
STATES.
12
This section is intended to reach
prohibited acts, which
13
are committed outside of the
territorial jurisdiction of the
14
United States. .
15
SEC. 103. INCREASED CIVIL AND
CRIMINAL PENALTIES FOR
16
PERSONS AND ENTITIES WHO
FACILITATE FI-
17
NANCING OF NARCO-TERRORISTS AND
TER-
18
RORISTS.
19
Section 206 of the International
Emergency Eco-
20
nomic Powers Act (50 U.S.C. 1705)
is amended
21
(1) in subsection (a), by striking
$10,000
22
and inserting $50,000 ; and
23
(2) in subsection (b), by striking
$50,000, or,
24
if a natural person, may be
imprisoned for not more
25
than ten years and inserting
$100,000, or, if a
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13
1
natural person, may be imprisoned
for not more
2
than 20 years .
3
TITLE II—PREVENTING
AND
4
PUNISHING
INTERNATIONAL
5
MONEY LAUNDERING
6
Subtitle A—Prohibiting
Money
7
Laundering Through
Hawalas,
8
‘‘Reverse’’
Money Laundering,
9
and Other Money
Laundering
10
Schemes
11
SEC. 201. PREVENTING
NARCO-TERRORISTS FROM LAUN-
12
DERING MONEY USING
HAWALAS.
13
Section 1956 of title 18, United
States Code, is
14
amended by adding at the end the
following:
15
(j) MONEY LAUNDERING.
16
(1) IN
GENERAL. For purposes of para-
17
graphs (1) and (2) of subsection
(a), a transaction,
18
transportation, transmission, or
transfer of funds
19
shall be considered to involve the
proceeds of speci-
20
fied unlawful activity if the
transaction, transpor-
21
tation, transmission, or transfer
is part of a set of
22
parallel or dependent transactions,
any 1 of which
23
involves the proceeds of specified
unlawful activity.
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14
1
(2) DEFINED
TERM. As used in this section,
2
the term dependent transaction
means a trans- -
3
action that
4
(A) completes or complements
another
5
transaction; or
6
(B) would not have occurred but
for an-
7
other transaction. .
8
SEC. 202. INTERSTATE
TRANSPORTATION OF CRIMINAL
9
PROCEEDS AND
‘‘REVERSE’’ MONEY LAUN-
10
DERING BY CURRENCY
COURIERS.
11
Section 5332 of title 31, United
States Code, is
12
amended
13
(1) in subsection (a)
14
(A) by redesignating paragraph (2)
as
15
paragraph (3); and
16
(B) by inserting after paragraph
(1) the
17
following:
18
(2) CONCEALMENT
IN VEHICLE. Any person
19
who conceals more than $10,000 in
currency on his
20
person or in any vehicle, in any
compartment or con-
21
tainer within any vehicle, or in
any container placed
22
in a common carrier, and
transports, attempts to
23
transport, or conspires to
transport such currency in
24
or affecting interstate commerce on
any public road
25
or highway, or on any bus, train,
airplane, vessel, or
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15
1
other common carrier, knowing that
the currency
2
was derived from some form of
unlawful activity, or
3
knowing that the currency was
intended to be used
4
to promote some form of unlawful
activity, shall be
5
subject to punishment pursuant to
subsection (b). ;
6
(2) in subsection (b)(1), by
striking 5 and in- -
7
serting 10 ; and
8
(3) by adding at the end the
following:
9
(d) AUTHORITY TO INVESTIGATE.
Violations of
10
this section may be investigated by
11
(1) the Attorney General;
12
(2) the Secretary of the
Treasury;
13
(3) the Secretary of the
Department of Home-
14
land Security; and
15
(4) the United States Postal
Service. .
16
SEC. 203. FREEZING BANK ACCOUNTS
OF PERSONS AR-
17
RESTED FOR MONEY LAUNDERING AND
BULK
18
CASH SMUGGLING.
19
Section 5317 of title 31, United
States Code, is
20
amended by adding at the end the
following:
21
(d) TEMPORARY FREEZE
OF
BANK ACCOUNT.
22
(1) IN
GENERAL. If any person is arrested or
23
charged in connection with any
offense under this
24
chapter, or any offense under
section 1956, 1957, or
25
1960 of title 18 (relating to the
movement of funds
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16
1
into or out of the United States),
the Attorney Gen-
2
eral may apply to any Federal judge
or magistrate
3
judge in the district in which the
arrest is made, or
4
the charges are filed, for an ex
parte order restrain-
5
ing any account held by the person
arrested or
6
charged for not more than 30 days.
This time period
7
may be extended for good cause
shown at a hearing
8
conducted in the manner provided in
rule 43(e) of
9
the Federal Rules of Civil
Procedure.
10
(2) CONTENTS
OF APPLICATION. The appli-
11
cation for the restraining order
referred to in para-
12
graph (1) shall
13
(A) identify the offense for which
the per-
14
son has been arrested or
charged;
15
(B) identify the location and
description
16
of the accounts to be restrained;
and
17
(C) state that the restraining
order is
18
needed to prevent the removal of
the funds in
19
the account by the person arrested
or charged,
20
or by others associated with such
person, dur-
21
ing the time needed by the
Government to con-
22
duct such investigation as may be
necessary to
23
establish whether there is probable
cause to be-
24
lieve that the funds in the
accounts are subject
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17
1
to forfeiture in connection with
the commission
2
of any criminal offense.
3
(3) RELEASE
OF FUNDS. At the expiration of
4
the period of restraint described
in paragraph (1),
5
the financial institution holding
the funds that have
6
been subject to restraint shall be
free to release
7
those funds at the direction of the
account holder
8
unless the Government has obtained
a seizure war-
9
rant, a restraining order, or an
arrest warrant in
10
rem pursuant to the Supplemental
Rules for Certain
11
Admiralty and Maritime
Claims.
12
(4) DEFINITIONS. For purposes of
this
13
section
14
(A) the term account includes any
ac- -
15
count (as defined in paragraphs (1)
and (2) of
16
section 5318A(e)) at any financial
institution;
17
and
18
(B) the term account held by the
person
19
arrested or charged includes an
account held in
20
the name of such person, and any
account over
21
which such person has effective
control as a sig-
22
natory or otherwise. .
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18
1
SEC. 204. PROCEDURE FOR ISSUING
SUBPOENAS IN MONEY
2
LAUNDERING CASES.
3
(a) IN GENERAL. Section 5318 of
title 31, United
4
States Code, is amended
5
(1) by redesignating subsection
(l), as added by
6
section 359 of the International
Money Laundering
7
Abatement and Financial
Anti-Terrorism Act of
8
2001 (115 Stat. 328), as subsection
(m); and
9
(2) by adding at the end the
following:
10
(n) PROCEDURE
FOR
ISSUING SUBPOENAS. The
11
Attorney General may issue a
subpoena in the manner set
12
forth in section 3486 of title 18
13
(1) in any situation in which
subsection (k)
14
applies; or
15
(2) in any investigation of a
violation of sec-
16
tion 5316, 5324, 5331, or 5332 of
this title or sec-
17
tion 1956, 1957, or 1960 of title
18. .
18
(b) GRAND JURY SUBPOENAS.
Section
19
5318(k)(3)(A) of title 31, United
States Code, is
20
amended
21
(1) in clause (i), by striking
related to such
22
correspondent account ; and
23
(2) by adding at the end the
following:
24
(iii) GRAND
JURY OR TRIAL SUB-
25
POENA. A subpoena issued by the Attor-
June 27, 2003
MDM\MDM03.556 S.L.C.
19
1
ney General under clause (i) may be
a
2
grand jury or a trial subpoena.
.
3
(c) FAIR CREDIT REPORTING ACT
AMENDMENT.
4
Section 604(a)(1) of the Fair
Credit Reporting Act (15
5
U.S.C. 1681b(a)(1)) is amended by
inserting before the
6
period at the end , or an
investigative subpoena issued
7
pursuant to section 5318 of title
31, United States Code .
8
(d) OBSTRUCTION
OF
JUSTICE. Section 1510(b) of
9
title 18, United States Code, is
amended
10
(1) in paragraph (2)(A), by
inserting or an in-
11
vestigative subpoena issued
pursuant to section 5318
12
of title 31 after grand jury
subpoena ; and
13
(2) in paragraph (3)(B), by
inserting , an in-
14
vestigative subpoena issued
pursuant to section 5318
15
of title 31, after grand jury
subpoena .
16
(e) RIGHT
TO
FINANCIAL PRIVACY ACT
OF
1978.
17
Section 1120(b)(1) of the Right to
Financial Privacy Act
18
of 1978 (12 U.S.C. 3420(b)(1) is
amended
19
(1) by inserting , or an
investigative subpoena
20
issued pursuant to section 5318 of
title 31, United
21
States Code, after grand jury
subpoena ; and
22
(2) by inserting or to the
Government after
23
to the grand jury .
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MDM\MDM03.556 S.L.C.
20
1
SEC. 205. USING BLANK CHECKS IN
BEARER FORM TO
2
SMUGGLE MONEY.
3
Section 5316 of title 31, United
States Code, is
4
amended by adding at the end the
following:
5
(e) MONETARY INSTRUMENTS WITH
AMOUNT LEFT
6
BLANK. For purposes of this
section, a monetary instru-
7
ment in bearer form that has the
amount left blank so
8
that the amount could be filled in
by the bearer, shall be
9
considered to have a value equal to
the value of the funds
10
in the account on which the
monetary instrument is drawn
11
at the time it was being
transported. .
12
SEC. 206. TREATING ELECTRONIC
FUNDS AS FUNGIBLE
13
PROPERTY.
14
Section 5317(c) of title 31, United
States Code, is
15
amended
16
(1) in paragraph (2), by striking
Any prop-
17
erty and inserting the
following: :
18
(A) IN
GENERAL. Any property ; and
19
(2) by adding at the end the
following:
20
(B) FUNGIBLE
PROPERTY. In any civil
21
forfeiture action brought pursuant
to this sec-
22
tion, section 5332, or section
981(a)(1)(A) of
23
title 18, currency, precious
metals, gem stones,
24
and funds held in any account at
any financial
25
institution in electronic form
shall be considered
26
fungible property identical to
other property lo-
June 27, 2003
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21
1
cated in the same place or account
at an earlier
2
time.
3
(C) BURDEN
OF PROOF. In any case de-
4
scribed under subparagraph (B)
5
(i) the Government shall not be
re-
6
quired to identify the specific
property in-
7
volved in the offense that is the
basis for
8
the forfeiture; and
9
(ii) the removal and replacement
of
10
the property involved in such
offense with
11
identical property shall not be a
defense. .
12
SEC. 207. MAKING DOMESTIC MONEY
LAUNDERING STAT-
13
UTE APPLY TO
‘‘REVERSE’’ MONEY LAUN-
14
DERING.
15
Section 1957 of title 18, United
States Code, is
16
amended
17
(1) in the header, by inserting
or in sup-
18
port of criminal activity
after specified
19
unlawful activity
; and
20
(2) in subsection (a)
21
(A) by inserting (1) before Whoever
;
22
and
23
(B) by adding at the end the
following:
24
(2) Whoever, in any of the
circumstances de-
25
scribed under subsection (d),
engages or attempts to
June 27, 2003
MDM\MDM03.556 S.L.C.
22
1
engage in a monetary transaction
involving property
2
of a value greater than $10,000,
with the intent to
3
promote the carrying on of
specified unlawful activ-
4
ity, shall be fined under this
title, imprisoned for a
5
term of years not to exceed the
statutory maximum
6
for the activity being promoted, or
both. .
7
SEC. 208. MAKING INTERNATIONAL
MONEY LAUNDERING
8
STATUTE APPLY TO TAX
EVASION.
9
Section 1956(a)(2)(A) of title 18,
United States
10
Code, is amended
11
(1) by striking to promote and
inserting
12
to
13
(i) promote ; and
14
(2) by adding at the end the
following:
15
(ii) engage in conduct
constituting a vio-
16
lation of section 7201 or 7206 of
the Internal
17
Revenue Code of 1986; or .
18
SEC. 209. SECTION 1957
VIOLATIONS INVOLVING COMMIN-
19
GLED FUNDS AND STRUCTURED
TRANS-
20
ACTIONS.
21
Section 1957(f) of title 18, United
States Code, is
22
amended
23
(1) in paragraph (2), by striking
and at the
24
end;
June 27, 2003
MDM\MDM03.556 S.L.C.
23
1
(2) in paragraph (3), by striking
the period at
2
the end and inserting a semicolon;
and
3
(3) by adding at the end the
following:
4
(4) the term monetary transaction
in crimi-
5
nally derived property of a value
greater than
6
$10,000 includes
7
(A) a monetary transaction
involving the
8
transfer, withdrawal, encumbrance,
or other
9
disposition of more than $10,000
from a bank
10
account in which more than $10,000
in pro-
11
ceeds of specified unlawful
activity have been
12
commingled with other funds;
13
(B) a series of monetary
transactions in
14
amounts under $10,000 that exceed
$10,000 in
15
the aggregate and that are closely
related to
16
each other in terms of such factors
as time, the
17
identity of the parties involved,
the nature and
18
purpose of the transactions and the
manner in
19
which they are conducted;
and
20
(C) any financial transaction
described in
21
section 1956(j) that involves more
than
22
$10,000 in proceeds of specified
unlawful activ-
23
ity; and
24
(5) the term monetary transaction
involving
25
property of a value greater than
$10,000 includes
June 27, 2003
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24
1
a series of monetary transactions
in amounts under
2
$10,000 that exceed $10,000 in the
aggregate and
3
are closely related to each other
in terms of time,
4
the identity of the parties
involved, the nature and
5
purpose of the transactions, and
the manner in
6
which such transactions are
conducted. .
7
SEC. 210. CHARGING MONEY
LAUNDERING AS A COURSE OF
8
CONDUCT.
9
Section 1956(h) of title 18, United
States Code, is
10
amended
11
(1) by inserting (1) before Any
person ;
12
(2) by striking or section 1957 and
inserting
13
, section 1957, or section 1960 ;
and
14
(3) by adding at the end the
following:
15
(2) Multiple violations of this
section that are part
16
of the same scheme or continuing
course of conduct may
17
be charged in a single count in an
indictment or informa-
18
tion. .
19
SEC. 211. LAUNDERING THE
PROCEEDS OF FOREIGN
20
CRIMES.
21
Section 1956(c)(7)(B) of title 18,
United States
22
Code, is amended
23
(1) in clause (v), by striking or
at the end; ;
24
(2) in clause (vi), by adding or at
the end; ;
25
and
June 27, 2003
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25
1
(3) by adding at the end the
following:
2
(vii) any act or activity that
would
3
constitute a specified unlawful
activity
4
under this paragraph if committed
within
5
the jurisdiction of the United
States or any
6
State; .
7
SEC. 212. ILLEGAL MONEY
TRANSMITTING BUSINESSES.
8
(a) TECHNICAL AMENDMENTS. Section
1960 of
9
title 18, United States Code, is
amended
10
(1) in the heading, by striking
unlicensed
11
and inserting illegal ;
12
(2) in subsection (a), by striking
unlicensed
13
and inserting illegal ; and
14
(3) in subsection (b)(1)
15
(A) by striking unlicensed and
inserting
16
illegal ; and
17
(B) in subparagraph (C), by
striking to
18
be used to be used and inserting to
be used .
19
(b) DEFINITION
OF
BUSINESS TO INCLUDE
20
HAWALAS
AND
MONEY BROKERS
FOR
DRUG CARTELS.
21
Section 1960(b) of title 18, United
States Code, is
22
amended
23
(1) in paragraph (2), by striking
and at the
24
end;
June 27, 2003
MDM\MDM03.556 S.L.C.
26
1
(2) in paragraph (3), by striking
the period at
2
the end and inserting ; and ;
and
3
(3) by adding at the end the
following:
4
(4) the term business includes any
person or
5
association of persons, formal or
informal, licensed
6
or unlicensed, that provides money
transmitting
7
services outside of the
conventional financial institu-
8
tions system on behalf of any third
party in return
9
for remuneration or other
consideration. .
10
(c) GENERAL INTENT
REQUIREMENT FOR
SECTION
11
1960(b)(1)(B). Section
1960(b)(1)(B) of title 18,
12
United States Code, is amended by
inserting before the
13
semicolon the following: , whether
or not the defendant
14
knew that the operation was
required to comply with such
15
registration requirements .
16
(d) AUTHORITY TO INVESTIGATE.
Section 1960 of
17
title 18, United States Code, is
amended by adding at the
18
end the following:
19
(c) Violations of this section may
be investigated
20
by
21
(1) the Attorney General;
22
(2) the Secretary of the
Treasury;