--H.R.3162--
H.R.3162
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
To deter and punish terrorist acts in the United States and around
the world, to enhance law enforcement investigatory tools, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT ACT) Act of 2001'.
(b) TABLE OF CONTENTS- The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Construction; severability.
TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
Sec. 101. Counterterrorism fund.
Sec. 102. Sense of Congress condemning discrimination against Arab and
Muslim Americans.
Sec. 103. Increased funding for the technical support center at the
Federal Bureau of Investigation.
Sec. 104. Requests for military assistance to enforce prohibition in
certain emergencies.
Sec. 105. Expansion of National Electronic Crime Task Force
Initiative.
Sec. 106. Presidential authority.
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
Sec. 201. Authority to intercept wire, oral, and electronic
communications relating to terrorism.
Sec. 202. Authority to intercept wire, oral, and electronic
communications relating to computer fraud and abuse offenses.
Sec. 203. Authority to share criminal investigative information.
Sec. 204. Clarification of intelligence exceptions from limitations on
interception and disclosure of wire, oral, and electronic
communications.
Sec. 205. Employment of translators by the Federal Bureau of
Investigation.
Sec. 206. Roving surveillance authority under the Foreign Intelligence
Surveillance Act of 1978.
Sec. 207. Duration of FISA surveillance of non-United States persons who
are agents of a foreign power.
Sec. 208. Designation of judges.
Sec. 209. Seizure of voice-mail messages pursuant to warrants.
Sec. 210. Scope of subpoenas for records of electronic
communications.
Sec. 211. Clarification of scope.
Sec. 212. Emergency disclosure of electronic communications to protect
life and limb.
Sec. 213. Authority for delaying notice of the execution of a
warrant.
Sec. 214. Pen register and trap and trace authority under FISA.
Sec. 215. Access to records and other items under the Foreign
Intelligence Surveillance Act.
Sec. 216. Modification of authorities relating to use of pen registers
and trap and trace devices.
Sec. 217. Interception of computer trespasser communications.
Sec. 218. Foreign intelligence information.
Sec. 219. Single-jurisdiction search warrants for terrorism.
Sec. 220. Nationwide service of search warrants for electronic
evidence.
Sec. 221. Trade sanctions.
Sec. 222. Assistance to law enforcement agencies.
Sec. 223. Civil liability for certain unauthorized disclosures.
Sec. 225. Immunity for compliance with FISA wiretap.
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
Sec. 302. Findings and purposes.
Sec. 303. 4-year congressional review; expedited consideration.
Subtitle A--International Counter Money Laundering and Related Measures
Sec. 311. Special measures for jurisdictions, financial institutions, or
international transactions of primary money laundering concern.
Sec. 312. Special due diligence for correspondent accounts and private
banking accounts.
Sec. 313. Prohibition on United States correspondent accounts with
foreign shell banks.
Sec. 314. Cooperative efforts to deter money laundering.
Sec. 315. Inclusion of foreign corruption offenses as money laundering
crimes.
Sec. 316. Anti-terrorist forfeiture protection.
Sec. 317. Long-arm jurisdiction over foreign money launderers.
Sec. 318. Laundering money through a foreign bank.
Sec. 319. Forfeiture of funds in United States interbank accounts.
Sec. 320. Proceeds of foreign crimes.
Sec. 321. Financial institutions specified in subchapter II of chapter
53 of title 31, United States code.
Sec. 322. Corporation represented by a fugitive.
Sec. 323. Enforcement of foreign judgments.
Sec. 324. Report and recommendation.
Sec. 325. Concentration accounts at financial institutions.
Sec. 326. Verification of identification.
Sec. 327. Consideration of anti-money laundering record.
Sec. 328. International cooperation on identification of originators of
wire transfers.
Sec. 329. Criminal penalties.
Sec. 330. International cooperation in investigations of money
laundering, financial crimes, and the finances of terrorist groups.
Subtitle B--Bank Secrecy Act Amendments and Related Improvements
Sec. 351. Amendments relating to reporting of suspicious
activities.
Sec. 352. Anti-money laundering programs.
Sec. 353. Penalties for violations of geographic targeting orders and
certain recordkeeping requirements, and lengthening effective period of
geographic targeting orders.
Sec. 354. Anti-money laundering strategy.
Sec. 355. Authorization to include suspicions of illegal activity in
written employment references.
Sec. 356. Reporting of suspicious activities by securities brokers and
dealers; investment company study.
Sec. 357. Special report on administration of bank secrecy
provisions.
Sec. 358. Bank secrecy provisions and activities of United States
intelligence agencies to fight international terrorism.
Sec. 359. Reporting of suspicious activities by underground banking
systems.
Sec. 360. Use of authority of United States Executive Directors.
Sec. 361. Financial crimes enforcement network.
Sec. 362. Establishment of highly secure network.
Sec. 363. Increase in civil and criminal penalties for money
laundering.
Sec. 364. Uniform protection authority for Federal Reserve
facilities.
Sec. 365. Reports relating to coins and currency received in
nonfinancial trade or business.
Sec. 366. Efficient use of currency transaction report system.
Subtitle C--Currency Crimes and Protection
Sec. 371. Bulk cash smuggling into or out of the United States.
Sec. 372. Forfeiture in currency reporting cases.
Sec. 373. Illegal money transmitting businesses.
Sec. 374. Counterfeiting domestic currency and obligations.
Sec. 375. Counterfeiting foreign currency and obligations.
Sec. 376. Laundering the proceeds of terrorism.
Sec. 377. Extraterritorial jurisdiction.
TITLE IV--PROTECTING THE BORDER
Subtitle A--Protecting the Northern Border
Sec. 401. Ensuring adequate personnel on the northern border.
Sec. 402. Northern border personnel.
Sec. 403. Access by the Department of State and the INS to certain
identifying information in the criminal history records of visa applicants
and applicants for admission to the United States.
Sec. 404. Limited authority to pay overtime.
Sec. 405. Report on the integrated automated fingerprint identification
system for ports of entry and overseas consular posts.
Subtitle B--Enhanced Immigration Provisions
Sec. 411. Definitions relating to terrorism.
Sec. 412. Mandatory detention of suspected terrorists; habeas corpus;
judicial review.
Sec. 413. Multilateral cooperation against terrorists.
Sec. 414. Visa integrity and security.
Sec. 415. Participation of Office of Homeland Security on Entry-Exit
Task Force.
Sec. 416. Foreign student monitoring program.
Sec. 417. Machine readable passports.
Sec. 418. Prevention of consulate shopping.
Subtitle C--Preservation of Immigration Benefits for Victims of
Terrorism
Sec. 421. Special immigrant status.
Sec. 422. Extension of filing or reentry deadlines.
Sec. 423. Humanitarian relief for certain surviving spouses and
children.
Sec. 424. `Age-out' protection for children.
Sec. 425. Temporary administrative relief.
Sec. 426. Evidence of death, disability, or loss of employment.
Sec. 427. No benefits to terrorists or family members of
terrorists.
TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM
Sec. 501. Attorney General's authority to pay rewards to combat
terrorism.
Sec. 502. Secretary of State's authority to pay rewards.
Sec. 503. DNA identification of terrorists and other violent
offenders.
Sec. 504. Coordination with law enforcement.
Sec. 505. Miscellaneous national security authorities.
Sec. 506. Extension of Secret Service jurisdiction.
Sec. 507. Disclosure of educational records.
Sec. 508. Disclosure of information from NCES surveys.
TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS, AND
THEIR FAMILIES
Subtitle A--Aid to Families of Public Safety Officers
Sec. 611. Expedited payment for public safety officers involved in the
prevention, investigation, rescue, or recovery efforts related to a
terrorist attack.
Sec. 612. Technical correction with respect to expedited payments for
heroic public safety officers.
Sec. 613. Public safety officers benefit program payment increase.
Sec. 614. Office of Justice programs.
Subtitle B--Amendments to the Victims of Crime Act of 1984
Sec. 621. Crime victims fund.
Sec. 622. Crime victim compensation.
Sec. 623. Crime victim assistance.
Sec. 624. Victims of terrorism.
TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE
PROTECTION
Sec. 701. Expansion of regional information sharing system to facilitate
Federal-State-local law enforcement response related to terrorist
attacks.
TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM
Sec. 801. Terrorist attacks and other acts of violence against mass
transportation systems.
Sec. 802. Definition of domestic terrorism.
Sec. 803. Prohibition against harboring terrorists.
Sec. 804. Jurisdiction over crimes committed at U.S. facilities
abroad.
Sec. 805. Material support for terrorism.
Sec. 806. Assets of terrorist organizations.
Sec. 807. Technical clarification relating to provision of material
support to terrorism.
Sec. 808. Definition of Federal crime of terrorism.
Sec. 809. No statute of limitation for certain terrorism offenses.
Sec. 810. Alternate maximum penalties for terrorism offenses.
Sec. 811. Penalties for terrorist conspiracies.
Sec. 812. Post-release supervision of terrorists.
Sec. 813. Inclusion of acts of terrorism as racketeering activity.
Sec. 814. Deterrence and prevention of cyberterrorism.
Sec. 815. Additional defense to civil actions relating to preserving
records in response to Government requests.
Sec. 816. Development and support of cybersecurity forensic
capabilities.
Sec. 817. Expansion of the biological weapons statute.
TITLE IX--IMPROVED INTELLIGENCE
Sec. 901. Responsibilities of Director of Central Intelligence regarding
foreign intelligence collected under Foreign Intelligence Surveillance Act
of 1978.
Sec. 902. Inclusion of international terrorist activities within scope
of foreign intelligence under National Security Act of 1947.
Sec. 903. Sense of Congress on the establishment and maintenance of
intelligence relationships to acquire information on terrorists and
terrorist organizations.
Sec. 904. Temporary authority to defer submittal to Congress of reports
on intelligence and intelligence-related matters.
Sec. 905. Disclosure to Director of Central Intelligence of foreign
intelligence-related information with respect to criminal
investigations.
Sec. 906. Foreign terrorist asset tracking center.
Sec. 907. National Virtual Translation Center.
Sec. 908. Training of government officials regarding identification and
use of foreign intelligence.
TITLE X--MISCELLANEOUS
Sec. 1001. Review of the department of justice.
Sec. 1002. Sense of congress.
Sec. 1003. Definition of `electronic surveillance'.
Sec. 1004. Venue in money laundering cases.
Sec. 1005. First responders assistance act.
Sec. 1006. Inadmissibility of aliens engaged in money laundering.
Sec. 1007. Authorization of funds for dea police training in south and
central asia.
Sec. 1008. Feasibility study on use of biometric identifier scanning
system with access to the fbi integrated automated fingerprint
identification system at overseas consular posts and points of entry to the
United States.
Sec. 1009. Study of access.
Sec. 1010. Temporary authority to contract with local and State
governments for performance of security functions at United States military
installations.
Sec. 1011. Crimes against charitable americans.
Sec. 1012. Limitation on issuance of hazmat licenses.
Sec. 1013. Expressing the sense of the senate concerning the provision
of funding for bioterrorism preparedness and response.
Sec. 1014. Grant program for State and local domestic preparedness
support.
Sec. 1015. Expansion and reauthorization of the crime identification
technology act for antiterrorism grants to States and localities.
Sec. 1016. Critical infrastructures protection.
SEC. 2. CONSTRUCTION; SEVERABILITY.
Any provision of this Act held to be invalid or unenforceable by its
terms, or as applied to any person or circumstance, shall be construed so as
to give it the maximum effect permitted by law, unless such holding shall be
one of utter invalidity or unenforceability, in which event such provision
shall be deemed severable from this Act and shall not affect the remainder
thereof or the application of such provision to other persons not similarly
situated or to other, dissimilar circumstances.
TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
SEC. 101. COUNTERTERRORISM FUND.
(a) ESTABLISHMENT; AVAILABILITY- There is hereby established in the
Treasury of the United States a separate fund to be known as the
`Counterterrorism Fund', amounts in which shall remain available without
fiscal year limitation--
(1) to reimburse any Department of Justice component for any costs
incurred in connection with--
(A) reestablishing the operational capability of an office or facility
that has been damaged or destroyed as the result of any domestic or
international terrorism incident;
(B) providing support to counter, investigate, or prosecute domestic
or international terrorism, including, without limitation, paying rewards
in connection with these activities; and
(C) conducting terrorism threat assessments of Federal agencies and
their facilities; and
(2) to reimburse any department or agency of the Federal Government for
any costs incurred in connection with detaining in foreign countries
individuals accused of acts of terrorism that violate the laws of the United
States.
(b) NO EFFECT ON PRIOR APPROPRIATIONS- Subsection (a) shall not be
construed to affect the amount or availability of any appropriation to the
Counterterrorism Fund made before the date of the enactment of this Act.
SEC. 102. SENSE OF CONGRESS CONDEMNING DISCRIMINATION AGAINST ARAB AND
MUSLIM AMERICANS.
(a) FINDINGS- Congress makes the following findings:
(1) Arab Americans, Muslim Americans, and Americans from South Asia play
a vital role in our Nation and are entitled to nothing less than the full
rights of every American.
(2) The acts of violence that have been taken against Arab and Muslim
Americans since the September 11, 2001, attacks against the United States
should be and are condemned by all Americans who value freedom.
(3) The concept of individual responsibility for wrongdoing is
sacrosanct in American society, and applies equally to all religious,
racial, and ethnic groups.
(4) When American citizens commit acts of violence against those who
are, or are perceived to be, of Arab or Muslim descent, they should be
punished to the full extent of the law.
(5) Muslim Americans have become so fearful of harassment that many
Muslim women are changing the way they dress to avoid becoming
targets.
(6) Many Arab Americans and Muslim Americans have acted heroically
during the attacks on the United States, including Mohammed Salman Hamdani,
a 23-year-old New Yorker of Pakistani descent, who is believed to have gone
to the World Trade Center to offer rescue assistance and is now
missing.
(b) SENSE OF CONGRESS- It is the sense of Congress that--
(1) the civil rights and civil liberties of all Americans, including
Arab Americans, Muslim Americans, and Americans from South Asia, must be
protected, and that every effort must be taken to preserve their
safety;
(2) any acts of violence or discrimination against any Americans be
condemned; and
(3) the Nation is called upon to recognize the patriotism of fellow
citizens from all ethnic, racial, and religious backgrounds.
SEC. 103. INCREASED FUNDING FOR THE TECHNICAL SUPPORT CENTER AT THE FEDERAL
BUREAU OF INVESTIGATION.
There are authorized to be appropriated for the Technical Support Center
established in section 811 of the Antiterrorism and Effective Death Penalty
Act of 1996 (Public Law 104-132) to help meet the demands for activities to
combat terrorism and support and enhance the technical support and tactical
operations of the FBI, $200,000,000 for each of the fiscal years 2002, 2003,
and 2004.
SEC. 104. REQUESTS FOR MILITARY ASSISTANCE TO ENFORCE PROHIBITION IN CERTAIN
EMERGENCIES.
Section 2332e of title 18, United States Code, is amended--
(1) by striking `2332c' and inserting `2332a'; and
(2) by striking `chemical'.
SEC. 105. EXPANSION OF NATIONAL ELECTRONIC CRIME TASK FORCE INITIATIVE.
The Director of the United States Secret Service shall take appropriate
actions to develop a national network of electronic crime task forces, based
on the New York Electronic Crimes Task Force model, throughout the United
States, for the purpose of preventing, detecting, and investigating various
forms of electronic crimes, including potential terrorist attacks against
critical infrastructure and financial payment systems.
SEC. 106. PRESIDENTIAL AUTHORITY.
Section 203 of the International Emergency Powers Act (50 U.S.C. 1702) is
amended--
(1) in subsection (a)(1)--
(A) at the end of subparagraph (A) (flush to that subparagraph), by
striking `; and' and inserting a comma and the following:
`by any person, or with respect to any property, subject to the
jurisdiction of the United States;';
(B) in subparagraph (B)--
(i) by inserting `, block during the pendency of an investigation'
after `investigate'; and
(ii) by striking `interest;' and inserting `interest by any person,
or with respect to any property, subject to the jurisdiction of the
United States; and';
(C) by striking `by any person, or with respect to any property,
subject to the jurisdiction of the United States`; and
(D) by inserting at the end the following:
`(C) when the United States is engaged in armed hostilities or has
been attacked by a foreign country or foreign nationals, confiscate any
property, subject to the jurisdiction of the United States, of any foreign
person, foreign organization, or foreign country that he determines has
planned, authorized, aided, or engaged in such hostilities or attacks
against the United States; and all right, title, and interest in any
property so confiscated shall vest, when, as, and upon the terms directed
by the President, in such agency or person as the President may designate
from time to time, and upon such terms and conditions as the President may
prescribe, such interest or property shall be held, used, administered,
liquidated, sold, or otherwise dealt with in the interest of and for the
benefit of the United States, and such designated agency or person may
perform any and all acts incident to the accomplishment or furtherance of
these purposes.'; and
(2) by inserting at the end the following:
`(c) CLASSIFIED INFORMATION- In any judicial review of a determination
made under this section, if the determination was based on classified
information (as defined in section 1(a) of the Classified Information
Procedures Act) such information may be submitted to the reviewing court ex
parte and in camera. This subsection does not confer or imply any right to
judicial review.'.
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
SEC. 201. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC COMMUNICATIONS
RELATING TO TERRORISM.
Section 2516(1) of title 18, United States Code, is amended--
(1) by redesignating paragraph (p), as so redesignated by section 434(2)
of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law
104-132; 110 Stat. 1274), as paragraph (r); and
(2) by inserting after paragraph (p), as so redesignated by section
201(3) of the Illegal Immigration Reform and Immigrant Responsibility Act of
1996 (division C of Public Law 104-208; 110 Stat. 3009-565), the following
new paragraph:
`(q) any criminal violation of section 229 (relating to chemical weapons);
or sections 2332, 2332a, 2332b, 2332d, 2339A, or 2339B of this title (relating
to terrorism); or'.
SEC. 202. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC COMMUNICATIONS
RELATING TO COMPUTER FRAUD AND ABUSE OFFENSES.
Section 2516(1)(c) of title 18, United States Code, is amended by striking
`and section 1341 (relating to mail fraud),' and inserting `section 1341
(relating to mail fraud), a felony violation of section 1030 (relating to
computer fraud and abuse),'.
SEC. 203. AUTHORITY TO SHARE CRIMINAL INVESTIGATIVE INFORMATION.
(a) AUTHORITY TO SHARE GRAND JURY INFORMATION-
(1) IN GENERAL- Rule 6(e)(3)(C) of the Federal Rules of Criminal
Procedure is amended to read as follows:
`(C)(i) Disclosure otherwise prohibited by this rule of matters
occurring before the grand jury may also be made--
`(I) when so directed by a court preliminarily to or in connection
with a judicial proceeding;
`(II) when permitted by a court at the request of the defendant,
upon a showing that grounds may exist for a motion to dismiss the
indictment because of matters occurring before the grand
jury;
`(III) when the disclosure is made by an attorney for the government
to another Federal grand jury;
`(IV) when permitted by a court at the request of an attorney for
the government, upon a showing that such matters may disclose a
violation of State criminal law, to an appropriate official of a State
or subdivision of a State for the purpose of enforcing such law;
or
`(V) when the matters involve foreign intelligence or
counterintelligence (as defined in section 3 of the National Security
Act of 1947 (50 U.S.C. 401a)), or foreign intelligence information (as
defined in clause (iv) of this subparagraph), to any Federal law
enforcement, intelligence, protective, immigration, national defense, or
national security official in order to assist the official receiving
that information in the performance of his official duties.
`(ii) If the court orders disclosure of matters occurring before the
grand jury, the disclosure shall be made in such manner, at such time, and
under such conditions as the court may direct.
`(iii) Any Federal official to whom information is disclosed pursuant
to clause (i)(V) of this subparagraph may use that information only as
necessary in the conduct of that person's official duties subject to any
limitations on the unauthorized disclosure of such information. Within a
reasonable time after such disclosure, an attorney for the government
shall file under seal a notice with the court stating the fact that such
information was disclosed and the departments, agencies, or entities to
which the disclosure was made.
`(iv) In clause (i)(V) of this subparagraph, the term `foreign
intelligence information' means--
`(I) information, whether or not concerning a United States person,
that relates to the ability of the United States to protect
against--
`(aa) actual or potential attack or other grave hostile acts of a
foreign power or an agent of a foreign power;
`(bb) sabotage or international terrorism by a foreign power or an
agent of a foreign power; or
`(cc) clandestine intelligence activities by an intelligence
service or network of a foreign power or by an agent of foreign power;
or
`(II) information, whether or not concerning a United States person,
with respect to a foreign power or foreign territory that relates
to--
`(aa) the national defense or the security of the United States;
or
`(bb) the conduct of the foreign affairs of the United
States.'.
(2) CONFORMING AMENDMENT- Rule 6(e)(3)(D) of the Federal Rules of
Criminal Procedure is amended by striking `(e)(3)(C)(i)' and inserting
`(e)(3)(C)(i)(I)'.
(b) AUTHORITY TO SHARE ELECTRONIC, WIRE, AND ORAL INTERCEPTION
INFORMATION-
(1) LAW ENFORCEMENT- Section 2517 of title 18, United States Code, is
amended by inserting at the end the following:
`(6) Any investigative or law enforcement officer, or attorney for the
Government, who by any means authorized by this chapter, has obtained
knowledge of the contents of any wire, oral, or electronic communication, or
evidence derived therefrom, may disclose such contents to any other Federal
law enforcement, intelligence, protective, immigration, national defense, or
national security official to the extent that such contents include foreign
intelligence or counterintelligence (as defined in section 3 of the National
Security Act of 1947 (50 U.S.C. 401a)), or foreign intelligence information
(as defined in subsection (19) of section 2510 of this title), to assist the
official who is to receive that information in the performance of his official
duties. Any Federal official who receives information pursuant to this
provision may use that information only as necessary in the conduct of that
person's official duties subject to any limitations on the unauthorized
disclosure of such information.'.
(2) DEFINITION- Section 2510 of title 18, United States Code, is amended
by--
(A) in paragraph (17), by striking `and' after the semicolon;
(B) in paragraph (18), by striking the period and inserting `; and';
and
(C) by inserting at the end the following:
`(19) `foreign intelligence information' means--
`(A) information, whether or not concerning a United States person,
that relates to the ability of the United States to protect
against--
`(i) actual or potential attack or other grave hostile acts of a
foreign power or an agent of a foreign power;
`(ii) sabotage or international terrorism by a foreign power or an
agent of a foreign power; or
`(iii) clandestine intelligence activities by an intelligence
service or network of a foreign power or by an agent of a foreign power;
or
`(B) information, whether or not concerning a United States person,
with respect to a foreign power or foreign territory that relates
to--
`(i) the national defense or the security of the United States;
or
`(ii) the conduct of the foreign affairs of the United
States.'.
(c) PROCEDURES- The Attorney General shall establish procedures for the
disclosure of information pursuant to section 2517(6) and Rule
6(e)(3)(C)(i)(V) of the Federal Rules of Criminal Procedure that identifies a
United States person, as defined in section 101 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1801)).
(d) FOREIGN INTELLIGENCE INFORMATION-
(1) IN GENERAL- Notwithstanding any other provision of law, it shall be
lawful for foreign intelligence or counterintelligence (as defined in
section 3 of the National Security Act of 1947 (50 U.S.C. 401a)) or foreign
intelligence information obtained as part of a criminal investigation to be
disclosed to any Federal law enforcement, intelligence, protective,
immigration, national defense, or national security official in order to
assist the official receiving that information in the performance of his
official duties. Any Federal official who receives information pursuant to
this provision may use that information only as necessary in the conduct of
that person's official duties subject to any limitations on the unauthorized
disclosure of such information.
(2) DEFINITION- In this subsection, the term `foreign intelligence
information' means--
(A) information, whether or not concerning a United States person,
that relates to the ability of the United States to protect
against--
(i) actual or potential attack or other grave hostile acts of a
foreign power or an agent of a foreign power;
(ii) sabotage or international terrorism by a foreign power or an
agent of a foreign power; or
(iii) clandestine intelligence activities by an intelligence service
or network of a foreign power or by an agent of a foreign power;
or
(B) information, whether or not concerning a United States person,
with respect to a foreign power or foreign territory that relates
to--
(i) the national defense or the security of the United States;
or
(ii) the conduct of the foreign affairs of the United
States.
SEC. 204. CLARIFICATION OF INTELLIGENCE EXCEPTIONS FROM LIMITATIONS ON
INTERCEPTION AND DISCLOSURE OF WIRE, ORAL, AND ELECTRONIC COMMUNICATIONS.
Section 2511(2)(f) of title 18, United States Code, is amended--
(1) by striking `this chapter or chapter 121' and inserting `this
chapter or chapter 121 or 206 of this title'; and
(2) by striking `wire and oral' and inserting `wire, oral, and
electronic'.
SEC. 205. EMPLOYMENT OF TRANSLATORS BY THE FEDERAL BUREAU OF
INVESTIGATION.
(a) AUTHORITY- The Director of the Federal Bureau of Investigation is
authorized to expedite the employment of personnel as translators to support
counterterrorism investigations and operations without regard to applicable
Federal personnel requirements and limitations.
(b) SECURITY REQUIREMENTS- The Director of the Federal Bureau of
Investigation shall establish such security requirements as are necessary for
the personnel employed as translators under subsection (a).
(c) REPORT- The Attorney General shall report to the Committees on the
Judiciary of the House of Representatives and the Senate on--
(1) the number of translators employed by the FBI and other components
of the Department of Justice;
(2) any legal or practical impediments to using translators employed by
other Federal, State, or local agencies, on a full, part-time, or shared
basis; and
(3) the needs of the FBI for specific translation services in certain
languages, and recommendations for meeting those needs.
SEC. 206. ROVING SURVEILLANCE AUTHORITY UNDER THE FOREIGN INTELLIGENCE
SURVEILLANCE ACT OF 1978.
Section 105(c)(2)(B) of the Foreign Intelligence Surveillance Act of 1978
(50 U.S.C. 1805(c)(2)(B)) is amended by inserting `, or in circumstances where
the Court finds that the actions of the target of the application may have the
effect of thwarting the identification of a specified person, such other
persons,' after `specified person'.
SEC. 207. DURATION OF FISA SURVEILLANCE OF NON-UNITED STATES PERSONS WHO ARE
AGENTS OF A FOREIGN POWER.
(1) SURVEILLANCE- Section 105(e)(1) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1805(e)(1)) is amended by--
(A) inserting `(A)' after `except that'; and
(B) inserting before the period the following: `, and (B) an order
under this Act for a surveillance targeted against an agent of a foreign
power, as defined in section 101(b)(1)(A) may be for the period specified
in the application or for 120 days, whichever is less'.
(2) PHYSICAL SEARCH- Section 304(d)(1) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1824(d)(1)) is amended by--
(A) striking `forty-five' and inserting `90';
(B) inserting `(A)' after `except that'; and
(C) inserting before the period the following: `, and (B) an order under
this section for a physical search targeted against an agent of a foreign
power as defined in section 101(b)(1)(A) may be for the period specified in
the application or for 120 days, whichever is less'.
(1) IN GENERAL- Section 105(d)(2) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1805(d)(2)) is amended by--
(A) inserting `(A)' after `except that'; and
(B) inserting before the period the following: `, and (B) an extension
of an order under this Act for a surveillance targeted against an agent of
a foreign power as defined in section 101(b)(1)(A) may be for a period not
to exceed 1 year'.
(2) DEFINED TERM- Section 304(d)(2) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1824(d)(2) is amended by inserting after
`not a United States person,' the following: `or against an agent of a
foreign power as defined in section 101(b)(1)(A),'.
SEC. 208. DESIGNATION OF JUDGES.
Section 103(a) of the Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1803(a)) is amended by--
(1) striking `seven district court judges' and inserting `11 district
court judges'; and
(2) inserting `of whom no fewer than 3 shall reside within 20 miles of
the District of Columbia' after `circuits'.
SEC. 209. SEIZURE OF VOICE-MAIL MESSAGES PURSUANT TO WARRANTS.
Title 18, United States Code, is amended--
(A) in paragraph (1), by striking beginning with `and such' and all
that follows through `communication'; and
(B) in paragraph (14), by inserting `wire or' after `transmission of';
and
(2) in subsections (a) and (b) of section 2703--
(A) by striking `CONTENTS OF ELECTRONIC' and inserting `CONTENTS OF
WIRE OR ELECTRONIC' each place it appears;
(B) by striking `contents of an electronic' and inserting `contents of
a wire or electronic' each place it appears; and
(C) by striking `any electronic' and inserting `any wire or
electronic' each place it appears.
SEC. 210. SCOPE OF SUBPOENAS FOR RECORDS OF ELECTRONIC COMMUNICATIONS.
Section 2703(c)(2) of title 18, United States Code, as redesignated by
section 212, is amended--
(1) by striking `entity the name, address, local and long distance
telephone toll billing records, telephone number or other subscriber number
or identity, and length of service of a subscriber' and inserting the
following: `entity the--
`(C) local and long distance telephone connection records, or records of
session times and durations;
`(D) length of service (including start date) and types of service
utilized;
`(E) telephone or instrument number or other subscriber number or
identity, including any temporarily assigned network address; and
`(F) means and source of payment for such service (including any credit
card or bank account number),
(2) by striking `and the types of services the subscriber or customer
utilized,'.
SEC. 211. CLARIFICATION OF SCOPE.
Section 631 of the Communications Act of 1934 (47 U.S.C. 551) is
amended--
(1) in subsection (c)(2)--
(A) in subparagraph (B), by striking `or';
(B) in subparagraph (C), by striking the period at the end and
inserting `; or'; and
(C) by inserting at the end the following:
`(D) to a government entity as authorized under chapters 119, 121, or
206 of title 18, United States Code, except that such disclosure shall not
include records revealing cable subscriber selection of video programming
from a cable operator.'; and
(2) in subsection (h), by striking `A governmental entity' and inserting
`Except as provided in subsection (c)(2)(D), a governmental entity'.
SEC. 212. EMERGENCY DISCLOSURE OF ELECTRONIC COMMUNICATIONS TO PROTECT LIFE
AND LIMB.
(a) DISCLOSURE OF CONTENTS-
(1) IN GENERAL- Section 2702 of title 18, United States Code, is
amended--
(A) by striking the section heading and inserting the
following:
`Sec. 2702. Voluntary disclosure of customer communications or
records';
(i) in paragraph (2)(A), by striking `and' at the end;
(ii) in paragraph (2)(B), by striking the period and inserting `;
and'; and
(iii) by inserting after paragraph (2) the following:
`(3) a provider of remote computing service or electronic communication
service to the public shall not knowingly divulge a record or other
information pertaining to a subscriber to or customer of such service (not
including the contents of communications covered by paragraph (1) or (2)) to
any governmental entity.';
(C) in subsection (b), by striking `EXCEPTIONS- A person or entity'
and inserting `EXCEPTIONS FOR DISCLOSURE OF COMMUNICATIONS- A provider
described in subsection (a)';
(D) in subsection (b)(6)--
(i) in subparagraph (A)(ii), by striking `or';
(ii) in subparagraph (B), by striking the period and inserting `;
or'; and
(iii) by adding after subparagraph (B) the following:
`(C) if the provider reasonably believes that an emergency involving
immediate danger of death or serious physical injury to any person
requires disclosure of the information without delay.'; and
(E) by inserting after subsection (b) the following:
`(c) EXCEPTIONS FOR DISCLOSURE OF CUSTOMER RECORDS- A provider described
in subsection (a) may divulge a record or other information pertaining to a
subscriber to or customer of such service (not including the contents of
communications covered by subsection (a)(1) or (a)(2))--
`(1) as otherwise authorized in section 2703;
`(2) with the lawful consent of the customer or subscriber;
`(3) as may be necessarily incident to the rendition of the service or
to the protection of the rights or property of the provider of that
service;
`(4) to a governmental entity, if the provider reasonably believes that
an emergency involving immediate danger of death or serious physical injury
to any person justifies disclosure of the information; or
`(5) to any person other than a governmental entity.'.
(2) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for
chapter 121 of title 18, United States Code, is amended by striking the item
relating to section 2702 and inserting the following:
`2702. Voluntary disclosure of customer communications or
records.'.
(b) REQUIREMENTS FOR GOVERNMENT ACCESS-
(1) IN GENERAL- Section 2703 of title 18, United States Code, is
amended--
(A) by striking the section heading and inserting the
following:
`Sec. 2703. Required disclosure of customer communications or records';
(B) in subsection (c) by redesignating paragraph (2) as paragraph
(3);
(C) in subsection (c)(1)--
(i) by striking `(A) Except as provided in subparagraph (B), a
provider of electronic communication service or remote computing service
may' and inserting `A governmental entity may require a provider of
electronic communication service or remote computing service
to';
(ii) by striking `covered by subsection (a) or (b) of this section)
to any person other than a governmental entity.
`(B) A provider of electronic communication service or remote
computing service shall disclose a record or other information pertaining
to a subscriber to or customer of such service (not including the contents
of communications covered by subsection (a) or (b) of this section) to a
governmental entity' and inserting `)';
(iii) by redesignating subparagraph (C) as paragraph
(2);
(iv) by redesignating clauses (i), (ii), (iii), and (iv) as
subparagraphs (A), (B), (C), and (D), respectively;
(v) in subparagraph (D) (as redesignated) by striking the period and
inserting `; or'; and
(vi) by inserting after subparagraph (D) (as redesignated) the
following:
`(E) seeks information under paragraph (2).'; and
(D) in paragraph (2) (as redesignated) by striking `subparagraph (B)'
and insert `paragraph (1)'.
(2) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for
chapter 121 of title 18, United States Code, is amended by striking the item
relating to section 2703 and inserting the following:
`2703. Required disclosure of customer communications or
records.'.
SEC. 213. AUTHORITY FOR DELAYING NOTICE OF THE EXECUTION OF A WARRANT.
Section 3103a of title 18, United States Code, is amended--
(1) by inserting `(a) IN GENERAL- ' before `In addition'; and
(2) by adding at the end the following:
`(b) DELAY- With respect to the issuance of any warrant or court order
under this section, or any other rule of law, to search for and seize any
property or material that constitutes evidence of a criminal offense in
violation of the laws of the United States, any notice required, or that may
be required, to be given may be delayed if--
`(1) the court finds reasonable cause to believe that providing
immediate notification of the execution of the warrant may have an adverse
result (as defined in section 2705);
`(2) the warrant prohibits the seizure of any tangible property, any
wire or electronic communication (as defined in section 2510), or, except as
expressly provided in chapter 121, any stored wire or electronic
information, except where the court finds reasonable necessity for the
seizure; and
`(3) the warrant provides for the giving of such notice within a
reasonable period of its execution, which period may thereafter be extended
by the court for good cause shown.'.
SEC. 214. PEN REGISTER AND TRAP AND TRACE AUTHORITY UNDER FISA.
(a) APPLICATIONS AND ORDERS- Section 402 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1842) is amended--
(1) in subsection (a)(1), by striking `for any investigation to gather
foreign intelligence information or information concerning international
terrorism' and inserting `for any investigation to obtain foreign
intelligence information not concerning a United States person or to protect
against international terrorism or clandestine intelligence activities,
provided that such investigation of a United States person is not conducted
solely upon the basis of activities protected by the first amendment to the
Constitution';
(2) by amending subsection (c)(2) to read as follows:
`(2) a certification by the applicant that the information likely to be
obtained is foreign intelligence information not concerning a United States
person or is relevant to an ongoing investigation to protect against
international terrorism or clandestine intelligence activities, provided
that such investigation of a United States person is not conducted solely
upon the basis of activities protected by the first amendment to the
Constitution.';
(3) by striking subsection (c)(3); and
(4) by amending subsection (d)(2)(A) to read as follows:
`(i) the identity, if known, of the person who is the subject of the
investigation;
`(ii) the identity, if known, of the person to whom is leased or in
whose name is listed the telephone line or other facility to which the
pen register or trap and trace device is to be attached or
applied;
`(iii) the attributes of the communications to which the order
applies, such as the number or other identifier, and, if known, the
location of the telephone line or other facility to which the pen
register or trap and trace device is to be attached or applied and, in
the case of a trap and trace device, the geographic limits of the trap
and trace order.'.
(b) AUTHORIZATION DURING EMERGENCIES- Section 403 of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1843) is amended--
(1) in subsection (a), by striking `foreign intelligence information or
information concerning international terrorism' and inserting `foreign
intelligence information not concerning a United States person or
information to protect against international terrorism or clandestine
intelligence activities, provided that such investigation of a United States
person is not conducted solely upon the basis of activities protected by the
first amendment to the Constitution'; and
(2) in subsection (b)(1), by striking `foreign intelligence information
or information concerning international terrorism' and inserting `foreign
intelligence information not concerning a United States person or
information to protect against international terrorism or clandestine
intelligence activities, provided that such investigation of a United States
person is not conducted solely upon the basis of activities protected by the
first amendment to the Constitution'.
SEC. 215. ACCESS TO RECORDS AND OTHER ITEMS UNDER THE FOREIGN INTELLIGENCE
SURVEILLANCE ACT.
Title V of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1861 et seq.) is amended by striking sections 501 through 503 and inserting
the following:
`SEC. 501. ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN INTELLIGENCE AND
INTERNATIONAL TERRORISM INVESTIGATIONS.
`(a)(1) The Director of the Federal Bureau of Investigation or a designee
of the Director (whose rank shall be no lower than Assistant Special Agent in
Charge) may make an application for an order requiring the production of any
tangible things (including books, records, papers, documents, and other items)
for an investigation to protect against international terrorism or clandestine
intelligence activities, provided that such investigation of a United States
person is not conducted solely upon the basis of activities protected by the
first amendment to the Constitution.
`(2) An investigation conducted under this section shall--
`(A) be conducted under guidelines approved by the Attorney General
under Executive Order 12333 (or a successor order); and
`(B) not be conducted of a United States person solely upon the basis of
activities protected by the first amendment to the Constitution of the
United States.
`(b) Each application under this section--
`(A) a judge of the court established by section 103(a); or
`(B) a United States Magistrate Judge under chapter 43 of title 28,
United States Code, who is publicly designated by the Chief Justice of the
United States to have the power to hear applications and grant orders for
the production of tangible things under this section on behalf of a judge
of that court; and
`(2) shall specify that the records concerned are sought for an
authorized investigation conducted in accordance with subsection (a)(2) to
obtain foreign intelligence information not concerning a United States
person or to protect against international terrorism or clandestine
intelligence activities.
`(c)(1) Upon an application made pursuant to this section, the judge shall
enter an ex parte order as requested, or as modified, approving the release of
records if the judge finds that the application meets the requirements of this
section.
`(2) An order under this subsection shall not disclose that it is issued
for purposes of an investigation described in subsection (a).
`(d) No person shall disclose to any other person (other than those
persons necessary to produce the tangible things under this section) that the
Federal Bureau of Investigation has sought or obtained tangible things under
this section.
`(e) A person who, in good faith, produces tangible things under an order
pursuant to this section shall not be liable to any other person for such
production. Such production shall not be deemed to constitute a waiver of any
privilege in any other proceeding or context.
`SEC. 502. CONGRESSIONAL OVERSIGHT.
`(a) On a semiannual basis, the Attorney General shall fully inform the
Permanent Select Committee on Intelligence of the House of Representatives and
the Select Committee on Intelligence of the Senate concerning all requests for
the production of tangible things under section 402.
`(b) On a semiannual basis, the Attorney General shall provide to the
Committees on the Judiciary of the House of Representatives and the Senate a
report setting forth with respect to the preceding 6-month period--
`(1) the total number of applications made for orders approving requests
for the production of tangible things under section 402; and
`(2) the total number of such orders either granted, modified, or
denied.'.
SEC. 216. MODIFICATION OF AUTHORITIES RELATING TO USE OF PEN REGISTERS AND
TRAP AND TRACE DEVICES.
(a) GENERAL LIMITATIONS- Section 3121(c) of title 18, United States Code,
is amended--
(1) by inserting `or trap and trace device' after `pen register';
(2) by inserting `, routing, addressing,' after `dialing'; and
(3) by striking `call processing' and inserting `the processing and
transmitting of wire or electronic communications so as not to include the
contents of any wire or electronic communications'.
(1) IN GENERAL- Section 3123(a) of title 18, United States Code, is
amended to read as follows:
`(1) ATTORNEY FOR THE GOVERNMENT- Upon an application made under section
3122(a)(1), the court shall enter an ex parte order authorizing the
installation and use of a pen register or trap and trace device anywhere
within the United States, if the court finds that the attorney for the
Government has certified to the court that the information likely to be
obtained by such installation and use is relevant to an ongoing criminal
investigation. The order, upon service of that order, shall apply to any
person or entity providing wire or electronic communication service in the
United States whose assistance may facilitate the execution of the order.
Whenever such an order is served on any person or entity not specifically
named in the order, upon request of such person or entity, the attorney for
the Government or law enforcement or investigative officer that is serving
the order shall provide written or electronic certification that the order
applies to the person or entity being served.
`(2) STATE INVESTIGATIVE OR LAW ENFORCEMENT OFFICER- Upon an application
made under section 3122(a)(2), the court shall enter an ex parte order
authorizing the installation and use of a pen register or trap and trace
device within the jurisdiction of the court, if the court finds that the
State law enforcement or investigative officer has certified to the court
that the information likely to be obtained by such installation and use is
relevant to an ongoing criminal investigation.
`(3)(A) Where the law enforcement agency implementing an ex parte order
under this subsection seeks to do so by installing and using its own pen
register or trap and trace device on a packet-switched data network of a
provider of electronic communication service to the public, the agency shall
ensure that a record will be maintained which will identify--
`(i) any officer or officers who installed the device and any officer
or officers who accessed the device to obtain information from the
network;
`(ii) the date and time the device was installed, the date and time
the device was uninstalled, and the date, time, and duration of each time
the device is accessed to obtain information;
`(iii) the configuration of the device at the time of its installation
and any subsequent modification thereof; and
`(iv) any information which has been collected by the device.
To the extent that the pen register or trap and trace device can be set
automatically to record this information electronically, the record shall be
maintained electronically throughout the installation and use of such
device.
`(B) The record maintained under subparagraph (A) shall be provided ex
parte and under seal to the court which entered the ex parte order
authorizing the installation and use of the device within 30 days after
termination of the order (including any extensions thereof).'.
(2) CONTENTS OF ORDER- Section 3123(b)(1) of title 18, United States
Code, is amended--
(A) in subparagraph (A)--
(i) by inserting `or other facility' after `telephone line';
and
(ii) by inserting before the semicolon at the end `or applied';
and
(B) by striking subparagraph (C) and inserting the following:
`(C) the attributes of the communications to which the order applies,
including the number or other identifier and, if known, the location of
the telephone line or other facility to which the pen register or trap and
trace device is to be attached or applied, and, in the case of an order
authorizing installation and use of a trap and trace device under
subsection (a)(2), the geographic limits of the order; and'.
(3) NONDISCLOSURE REQUIREMENTS- Section 3123(d)(2) of title 18, United
States Code, is amended--
(A) by inserting `or other facility' after `the line'; and
(B) by striking `, or who has been ordered by the court' and inserting
`or applied, or who is obligated by the order'.
(1) COURT OF COMPETENT JURISDICTION- Section 3127(2) of title 18, United
States Code, is amended by striking subparagraph (A) and inserting the
following:
`(A) any district court of the United States (including a magistrate
judge of such a court) or any United States court of appeals having
jurisdiction over the offense being investigated; or'.
(2) PEN REGISTER- Section 3127(3) of title 18, United States Code, is
amended--
(A) by striking `electronic or other impulses' and all that follows
through `is attached' and inserting `dialing, routing, addressing, or
signaling information transmitted by an instrument or facility from which
a wire or electronic communication is transmitted, provided, however, that
such information shall not include the contents of any communication';
and
(B) by inserting `or process' after `device' each place it
appears.
(3) TRAP AND TRACE DEVICE- Section 3127(4) of title 18, United States
Code, is amended--
(A) by striking `of an instrument' and all that follows through the
semicolon and inserting `or other dialing, routing, addressing, and
signaling information reasonably likely to identify the source of a wire
or electronic communication, provided, however, that such information
shall not include the contents of any communication;'; and
(B) by inserting `or process' after `a device'.
(4) CONFORMING AMENDMENT- Section 3127(1) of title 18, United States
Code, is amended--
(A) by striking `and'; and
(B) by inserting `, and `contents' after `electronic communication
service'.
(5) TECHNICAL AMENDMENT- Section 3124(d) of title 18, United States
Code, is amended by striking `the terms of'.
(6) CONFORMING AMENDMENT- Section 3124(b) of title 18, United States
Code, is amended by inserting `or other facility' after `the appropriate
line'.
SEC. 217. INTERCEPTION OF COMPUTER TRESPASSER COMMUNICATIONS.
Chapter 119 of title 18, United States Code, is amended--
(A) in paragraph (18), by striking `and' at the end;
(B) in paragraph (19), by striking the period and inserting a
semicolon; and
(C) by inserting after paragraph (19) the following:
`(20) `protected computer' has the meaning set forth in section 1030;
and
`(21) `computer trespasser'--
`(A) means a person who accesses a protected computer without
authorization and thus has no reasonable expectation of privacy in any
communication transmitted to, through, or from the protected computer;
and
`(B) does not include a person known by the owner or operator of the
protected computer to have an existing contractual relationship with the
owner or operator of the protected computer for access to all or part of
the protected computer.'; and
(2) in section 2511(2), by inserting at the end the following:
`(i) It shall not be unlawful under this chapter for a person acting under
color of law to intercept the wire or electronic communications of a computer
trespasser transmitted to, through, or from the protected computer, if--
`(I) the owner or operator of the protected computer authorizes the
interception of the computer trespasser's communications on the protected
computer;
`(II) the person acting under color of law is lawfully engaged in an
investigation;
`(III) the person acting under color of law has reasonable grounds to
believe that the contents of the computer trespasser's communications will
be relevant to the investigation; and
`(IV) such interception does not acquire communications other than those
transmitted to or from the computer trespasser.'.
SEC. 218. FOREIGN INTELLIGENCE INFORMATION.
Sections 104(a)(7)(B) and section 303(a)(7)(B) (50 U.S.C. 1804(a)(7)(B)
and 1823(a)(7)(B)) of the Foreign Intelligence Surveillance Act of 1978 are
each amended by striking `the purpose' and inserting `a significant
purpose'.
SEC. 219. SINGLE-JURISDICTION SEARCH WARRANTS FOR TERRORISM.
Rule 41(a) of the Federal Rules of Criminal Procedure is amended by
inserting after `executed' the following: `and (3) in an investigation of
domestic terrorism or international terrorism (as defined in section 2331 of
title 18, United States Code), by a Federal magistrate judge in any district
in which activities related to the terrorism may have occurred, for a search
of property or for a person within or outside the district'.
SEC. 220. NATIONWIDE SERVICE OF SEARCH WARRANTS FOR ELECTRONIC
EVIDENCE.
(a) IN GENERAL- Chapter 121 of title 18, United States Code, is
amended--
(1) in section 2703, by striking `under the Federal Rules of Criminal
Procedure' every place it appears and inserting `using the procedures
described in the Federal Rules of Criminal Procedure by a court with
jurisdiction over the offense under investigation'; and
(A) in paragraph (1), by striking `and';
(B) in paragraph (2), by striking the period and inserting `; and';
and
(C) by inserting at the end the following:
`(3) the term `court of competent jurisdiction' has the meaning assigned
by section 3127, and includes any Federal court within that definition,
without geographic limitation.'.
(b) CONFORMING AMENDMENT- Section 2703(d) of title 18, United States Code,
is amended by striking `described in section 3127(2)(A)'.
SEC. 221. TRADE SANCTIONS.
(a) IN GENERAL- The Trade Sanctions Reform and Export Enhancement Act of
2000 (Public Law 106-387; 114 Stat. 1549A-67) is amended--
(1) by amending section 904(2)(C) to read as follows:
`(C) used to facilitate the design, development, or production of
chemical or biological weapons, missiles, or weapons of mass
destruction.';
(2) in section 906(a)(1)--
(A) by inserting `, the Taliban or the territory of Afghanistan
controlled by the Taliban,' after `Cuba'; and
(B) by inserting `, or in the territory of Afghanistan controlled by
the Taliban,' after `within such country'; and
(3) in section 906(a)(2), by inserting `, or to any other entity in
Syria or North Korea' after `Korea'.
(b) APPLICATION OF THE TRADE SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT-
Nothing in the Trade Sanctions Reform and Export Enhancement Act of 2000 shall
limit the application or scope of any law establishing criminal or civil
penalties, including any Executive order or regulation promulgated pursuant to
such laws (or similar or successor laws), for the unlawful export of any
agricultural commodity, medicine, or medical device to--
(1) a foreign organization, group, or person designated pursuant to
Executive Order No. 12947 of January 23, 1995, as amended;
(2) a Foreign Terrorist Organization pursuant to the Antiterrorism and
Effective Death Penalty Act of 1996 (Public Law 104-132);
(3) a foreign organization, group, or person designated pursuant to
Executive Order No. 13224 (September 23, 2001);
(4) any narcotics trafficking entity designated pursuant to Executive
Order No. 12978 (October 21, 1995) or the Foreign Narcotics Kingpin
Designation Act (Public Law 106-120); or
(5) any foreign organization, group, or persons subject to any
restriction for its involvement in weapons of mass destruction or missile
proliferation.
SEC. 222. ASSISTANCE TO LAW ENFORCEMENT AGENCIES.
Nothing in this Act shall impose any additional technical obligation or
requirement on a provider of a wire or electronic communication service or
other person to furnish facilities or technical assistance. A provider of a
wire or electronic communication service, landlord, custodian, or other person
who furnishes facilities or technical assistance pursuant to section 216 shall
be reasonably compensated for such reasonable expenditures incurred in
providing such facilities or assistance.
SEC. 223. CIVIL LIABILITY FOR CERTAIN UNAUTHORIZED DISCLOSURES.
(a) Section 2520 of title 18, United States Code, is amended--
(1) in subsection (a), after `entity', by inserting `, other than the
United States,';
(2) by adding at the end the following:
`(f) ADMINISTRATIVE DISCIPLINE- If a court or appropriate department or
agency determines that the United States or any of its departments or agencies
has violated any provision of this chapter, and the court or appropriate
department or agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or employee of the
United States acted willfully or intentionally with respect to the violation,
the department or agency shall, upon receipt of a true and correct copy of the
decision and findings of the court or appropriate department or agency
promptly initiate a proceeding to determine whether disciplinary action
against the officer or employee is warranted. If the head of the department or
agency involved determines that disciplinary action is not warranted, he or
she shall notify the Inspector General with jurisdiction over the department
or agency concerned and shall provide the Inspector General with the reasons
for such determination.'; and
(3) by adding a new subsection (g), as follows:
`(g) IMPROPER DISCLOSURE IS VIOLATION- Any willful disclosure or use by an
investigative or law enforcement officer or governmental entity of information
beyond the extent permitted by section 2517 is a violation of this chapter for
purposes of section 2520(a).'.
(b) Section 2707 of title 18, United States Code, is amended--
(1) in subsection (a), after `entity', by inserting `, other than the
United States,';
(2) by striking subsection (d) and inserting the following:
`(d) ADMINISTRATIVE DISCIPLINE- If a court or appropriate department or
agency determines that the United States or any of its departments or agencies
has violated any provision of this chapter, and the court or appropriate
department or agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or employee of the
United States acted willfully or intentionally with respect to the violation,
the department or agency shall, upon receipt of a true and correct copy of the
decision and findings of the court or appropriate department or agency
promptly initiate a proceeding to determine whether disciplinary action
against the officer or employee is warranted. If the head of the department or
agency involved determines that disciplinary action is not warranted, he or
she shall notify the Inspector General with jurisdiction over the department
or agency concerned and shall provide the Inspector General with the reasons
for such determination.'; and
(3) by adding a new subsection (g), as follows:
`(g) IMPROPER DISCLOSURE- Any willful disclosure of a `record', as that
term is defined in section 552a(a) of title 5, United States Code, obtained by
an investigative or law enforcement officer, or a governmental entity,
pursuant to section 2703 of this title, or from a device installed pursuant to
section 3123 or 3125 of this title, that is not a disclosure made in the
proper performance of the official functions of the officer or governmental
entity making the disclosure, is a violation of this chapter. This provision
shall not apply to information previously lawfully disclosed (prior to the
commencement of any civil or administrative proceeding under this chapter) to
the public by a Federal, State, or local governmental entity or by the
plaintiff in a civil action under this chapter.'.
(c)(1) Chapter 121 of title 18, United States Code, is amended by adding
at the end the following:
`Sec. 2712. Civil actions against the United States
`(a) IN GENERAL- Any person who is aggrieved by any willful violation of
this chapter or of chapter 119 of this title or of sections 106(a), 305(a), or
405(a) of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et
seq.) may commence an action in United States District Court against the
United States to recover money damages. In any such action, if a person who is
aggrieved successfully establishes such a violation of this chapter or of
chapter 119 of this title or of the above specific provisions of title 50, the
Court may assess as damages--
`(1) actual damages, but not less than $10,000, whichever amount is
greater; and
`(2) litigation costs, reasonably incurred.
`(b) PROCEDURES- (1) Any action against the United States under this
section may be commenced only after a claim is presented to the appropriate
department or agency under the procedures of the Federal Tort Claims Act, as
set forth in title 28, United States Code.
`(2) Any action against the United States under this section shall be
forever barred unless it is presented in writing to the appropriate Federal
agency within 2 years after such claim accrues or unless action is begun
within 6 months after the date of mailing, by certified or registered mail, of
notice of final denial of the claim by the agency to which it was presented.
The claim shall accrue on the date upon which the claimant first has a
reasonable opportunity to discover the violation.
`(3) Any action under this section shall be tried to the court without a
jury.
`(4) Notwithstanding any other provision of law, the procedures set forth
in section 106(f), 305(g), or 405(f) of the Foreign Intelligence Surveillance
Act of 1978 (50 U.S.C. 1801 et seq.) shall be the exclusive means by which
materials governed by those sections may be reviewed.
`(5) An amount equal to any award against the United States under this
section shall be reimbursed by the department or agency concerned to the fund
described in section 1304 of title 31, United States Code, out of any
appropriation, fund, or other account (excluding any part of such
appropriation, fund, or account that is available for the enforcement of any
Federal law) that is available for the operating expenses of the department or
agency concerned.
`(c) ADMINISTRATIVE DISCIPLINE- If a court or appropriate department or
agency determines that the United States or any of its departments or agencies
has violated any provision of this chapter, and the court or appropriate
department or agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or employee of the
United States acted willfully or intentionally with respect to the violation,
the department or agency shall, upon receipt of a true and correct copy of the
decision and findings of the court or appropriate department or agency
promptly initiate a proceeding to determine whether disciplinary action
against the officer or employee is warranted. If the head of the department or
agency involved determines that disciplinary action is not warranted, he or
she shall notify the Inspector General with jurisdiction over the department
or agency concerned and shall provide the Inspector General with the reasons
for such determination.
`(d) EXCLUSIVE REMEDY- Any action against the United States under this
subsection shall be the exclusive remedy against the United States for any
claims within the purview of this section.
`(e) STAY OF PROCEEDINGS- (1) Upon the motion of the United States, the
court shall stay any action commenced under this section if the court
determines that civil discovery will adversely affect the ability of the
Government to conduct a related investigation or the prosecution of a related
criminal case. Such a stay shall toll the limitations periods of paragraph (2)
of subsection (b).
`(2) In this subsection, the terms `related criminal case' and `related
investigation' mean an actual prosecution or investigation in progress at the
time at which the request for the stay or any subsequent motion to lift the
stay is made. In determining whether an investigation or a criminal case is
related to an action commenced under this section, the court shall consider
the degree of similarity between the parties, witnesses, facts, and
circumstances involved in the 2 proceedings, without requiring that any one or
more factors be identical.
`(3) In requesting a stay under paragraph (1), the Government may, in
appropriate cases, submit evidence ex parte in order to avoid disclosing any
matter that may adversely affect a related investigation or a related criminal
case. If the Government makes such an ex parte submission, the plaintiff shall
be given an opportunity to make a submission to the court, not ex parte, and
the court may, in its discretion, request further information from either
party.'.
(2) The table of sections at the beginning of chapter 121 is amended to
read as follows:
`2712. Civil action against the United States.'.
SEC. 224. SUNSET.
(a) IN GENERAL- Except as provided in subsection (b), this title and the
amendments made by this title (other than sections 203(a), 203(c), 205, 208,
210, 211, 213, 216, 219, 221, and 222, and the amendments made by those
sections) shall cease to have effect on December 31, 2005.
(b) EXCEPTION- With respect to any particular foreign intelligence
investigation that began before the date on which the provisions referred to
in subsection (a) cease to have effect, or with respect to any particular
offense or potential offense that began or occurred before the date on which
such provisions cease to have effect, such provisions shall continue in
effect.
SEC. 225. IMMUNITY FOR COMPLIANCE WITH FISA WIRETAP.
Section 105 of the Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1805) is amended by inserting after subsection (g) the following:
`(h) No cause of action shall lie in any court against any provider of a
wire or electronic communication service, landlord, custodian, or other person
(including any officer, employee, agent, or other specified person thereof)
that furnishes any information, facilities, or technical assistance in
accordance with a court order or request for emergency assistance under this
Act.'.
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
SEC. 301. SHORT TITLE.
This title may be cited as the `International Money Laundering Abatement
and Financial Anti-Terrorism Act of 2001'.
SEC. 302. FINDINGS AND PURPOSES.
(a) FINDINGS- The Congress finds that--
(1) money laundering, estimated by the International Monetary Fund to
amount to between 2 and 5 percent of global gross domestic product, which is
at least $600,000,000,000 annually, provides the financial fuel that permits
transnational criminal enterprises to conduct and expand their operations to
the detriment of the safety and security of American citizens;
(2) money laundering, and the defects in financial transparency on which
money launderers rely, are critical to the financing of global terrorism and
the provision of funds for terrorist attacks;
(3) money launderers subvert legitimate financial mechanisms and banking
relationships by using them as protective covering for the movement of
criminal proceeds and the financing of crime and terrorism, and, by so
doing, can threaten the safety of United States citizens and undermine the
integrity of United States financial institutions and of the global
financial and trading systems upon which prosperity and growth depend;
(4) certain jurisdictions outside of the United States that offer
`offshore' banking and related facilities designed to provide anonymity,
coupled with weak financial supervisory and enforcement regimes, provide
essential tools to disguise ownership and movement of criminal funds,
derived from, or used to commit, offenses ranging from narcotics
trafficking, terrorism, arms smuggling, and trafficking in human beings, to
financial frauds that prey on law-abiding citizens;
(5) transactions involving such offshore jurisdictions make it difficult
for law enforcement officials and regulators to follow the trail of money
earned by criminals, organized international criminal enterprises, and
global terrorist organizations;
(6) correspondent banking facilities are one of the banking mechanisms
susceptible in some circumstances to manipulation by foreign banks to permit
the laundering of funds by hiding the identity of real parties in interest
to financial transactions;
(7) private banking services can be susceptible to manipulation by money
launderers, for example corrupt foreign government officials, particularly
if those services include the creation of offshore accounts and facilities
for large personal funds transfers to channel funds into accounts around the
globe;
(8) United States anti-money laundering efforts are impeded by outmoded
and inadequate statutory provisions that make investigations, prosecutions,
and forfeitures more difficult, particularly in cases in which money
laundering involves foreign persons, foreign banks, or foreign
countries;
(9) the ability to mount effective counter-measures to international
money launderers requires national, as well as bilateral and multilateral
action, using tools specially designed for that effort; and
(10) the Basle Committee on Banking Regulation and Supervisory Practices
and the Financial Action Task Force on Money Laundering, of both of which
the United States is a member, have each adopted international anti-money
laundering principles and recommendations.
(b) PURPOSES- The purposes of this title are--
(1) to increase the strength of United States measures to prevent,
detect, and prosecute international money laundering and the financing of
terrorism;
(A) banking transactions and financial relationships and the conduct
of such transactions and relationships, do not contravene the purposes of
subchapter II of chapter 53 of title 31, United States Code, section 21 of
the Federal Deposit Insurance Act, or chapter 2 of title I of Public Law
91-508 (84 Stat. 1116), or facilitate the evasion of any such provision;
and
(B) the purposes of such provisions of law continue to be fulfilled,
and such provisions of law are effectively and efficiently
administered;
(3) to strengthen the provisions put into place by the Money Laundering
Control Act of 1986 (18 U.S.C. 981 note), especially with respect to crimes
by non-United States nationals and foreign financial institutions;
(4) to provide a clear national mandate for subjecting to special
scrutiny those foreign jurisdictions, financial institutions operating
outside of the United States, and classes of international transactions or
types of accounts that pose particular, identifiable opportunities for
criminal abuse;
(5) to provide the Secretary of the Treasury (in this title referred to
as the `Secretary') with broad discretion, subject to the safeguards
provided by the Administrative Procedure Act under title 5, United States
Code, to take measures tailored to the particular money laundering problems
presented by specific foreign jurisdictions, financial institutions
operating outside of the United States, and classes of international
transactions or types of accounts;
(6) to ensure that the employment of such measures by the Secretary
permits appropriate opportunity for comment by affected financial
institutions;
(7) to provide guidance to domestic financial institutions on particular
foreign jurisdictions, financial institutions operating outside of the
United States, and classes of international transactions that are of primary
money laundering concern to the United States Government;
(8) to ensure that the forfeiture of any assets in connection with the
anti-terrorist efforts of the United States permits for adequate challenge
consistent with providing due process rights;
(9) to clarify the terms of the safe harbor from civil liability for
filing suspicious activity reports;
(10) to strengthen the authority of the Secretary to issue and
administer geographic targeting orders, and to clarify that violations of
such orders or any other requirement imposed under the authority contained
in chapter 2 of title I of Public Law 91-508 and subchapters II and III of
chapter 53 of title 31, United States Code, may result in criminal and civil
penalties;
(11) to ensure that all appropriate elements of the financial services
industry are subject to appropriate requirements to report potential money
laundering transactions to proper authorities, and that jurisdictional
disputes do not hinder examination of compliance by financial institutions
with relevant reporting requirements;
(12) to strengthen the ability of financial institutions to maintain the
integrity of their employee population; and
(13) to strengthen measures to prevent the use of the United States
financial system for personal gain by corrupt foreign officials and to
facilitate the repatriation of any stolen assets to the citizens of
countries to whom such assets belong.
SEC. 303. 4-YEAR CONGRESSIONAL REVIEW; EXPEDITED CONSIDERATION.
(a) IN GENERAL- Effective on and after the first day of fiscal year 2005,
the provisions of this title and the amendments made by this title shall
terminate if the Congress enacts a joint resolution, the text after the
resolving clause of which is as follows: `That provisions of the International
Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, and the
amendments made thereby, shall no longer have the force of law.'.
(b) EXPEDITED CONSIDERATION- Any joint resolution submitted pursuant to
this section should be considered by the Congress expeditiously. In
particular, it shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security Assistance and Arms
Control Act of 1976.
Subtitle A--International Counter Money Laundering and Related
Measures
SEC. 311. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL INSTITUTIONS, OR
INTERNATIONAL TRANSACTIONS OF PRIMARY MONEY LAUNDERING CONCERN.
(a) IN GENERAL- Subchapter II of chapter 53 of title 31, United States
Code, is amended by inserting after section 5318 the following new section:
`Sec. 5318A. Special measures for jurisdictions, financial institutions, or
international transactions of primary money laundering concern
`(a) INTERNATIONAL COUNTER-MONEY LAUNDERING REQUIREMENTS-
`(1) IN GENERAL- The Secretary of the Treasury may require domestic
financial institutions and domestic financial agencies to take 1 or more of
the special measures described in subsection (b) if the Secretary finds that
reasonable grounds exist for concluding that a jurisdiction outside of the
United States, 1 or more financial institutions operating outside of the
United States, 1 or more classes of transactions within, or involving, a
jurisdiction outside of the United States, or 1 or more types of accounts is
of primary money laundering concern, in accordance with subsection
(c).
`(2) FORM OF REQUIREMENT- The special measures described in--
`(A) subsection (b) may be imposed in such sequence or combination as
the Secretary shall determine;
`(B) paragraphs (1) through (4) of subsection (b) may be imposed by
regulation, order, or otherwise as permitted by law; and
`(C) subsection (b)(5) may be imposed only by regulation.
`(3) DURATION OF ORDERS; RULEMAKING- Any order by which a special
measure described in paragraphs (1) through (4) of subsection (b) is imposed
(other than an order described in section 5326)--
`(A) shall be issued together with a notice of proposed rulemaking
relating to the imposition of such special measure; and
`(B) may not remain in effect for more than 120 days, except pursuant
to a rule promulgated on or before the end of the 120-day period beginning
on the date of issuance of such order.
`(4) PROCESS FOR SELECTING SPECIAL MEASURES- In selecting which special
measure or measures to take under this subsection, the Secretary of the
Treasury--
`(A) shall consult with the Chairman of the Board of Governors of the
Federal Reserve System, any other appropriate Federal banking agency, as
defined in section 3 of the Federal Deposit Insurance Act, the Secretary
of State, the Securities and Exchange Commission, the Commodity Futures
Trading Commission, the National Credit Union Administration Board, and in
the sole discretion of the Secretary, such other agencies and interested
parties as the Secretary may find to be appropriate; and
`(i) whether similar action has been or is being taken by other
nations or multilateral groups;
`(ii) whether the imposition of any particular special measure would
create a significant competitive disadvantage, including any undue cost
or burden associated with compliance, for financial institutions
organized or licensed in the United States;
`(iii) the extent to which the action or the timing of the action
would have a significant adverse systemic impact on the international
payment, clearance, and settlement system, or on legitimate business
activities involving the particular jurisdiction, institution, or class
of transactions; and
`(iv) the effect of the action on United States national security
and foreign policy.
`(5) NO LIMITATION ON OTHER AUTHORITY- This section shall not be
construed as superseding or otherwise restricting any other authority
granted to the Secretary, or to any other agency, by this subchapter or
otherwise.
`(b) SPECIAL MEASURES- The special measures referred to in subsection (a),
with respect to a jurisdiction outside of the United States, financial
institution operating outside of the United States, class of transaction
within, or involving, a jurisdiction outside of the United States, or 1 or
more types of accounts are as follows:
`(1) RECORDKEEPING AND REPORTING OF CERTAIN FINANCIAL
TRANSACTIONS-
`(A) IN GENERAL- The Secretary of the Treasury may require any
domestic financial institution or domestic financial agency to maintain
records, file reports, or both, concerning the aggregate amount of
transactions, or concerning each transaction, with respect to a
jurisdiction outside of the United States, 1 or more financial
institutions operating outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of the United
States, or 1 or more types of accounts if the Secretary finds any such
jurisdiction, institution, or class of transactions to be of primary money
laundering concern.
`(B) FORM OF RECORDS AND REPORTS- Such records and reports shall be
made and retained at such time, in such manner, and for such period of
time, as the Secretary shall determine, and shall include such information
as the Secretary may determine, including--
`(i) the identity and address of the participants in a transaction
or relationship, including the identity of the originator of any funds
transfer;
`(ii) the legal capacity in which a participant in any transaction
is acting;
`(iii) the identity of the beneficial owner of the funds involved in
any transaction, in accordance with such procedures as the Secretary
determines to be reasonable and practicable to obtain and retain the
information; and
`(iv) a description of any transaction.
`(2) INFORMATION RELATING TO BENEFICIAL OWNERSHIP- In addition to any
other requirement under any other provision of law, the Secretary may
require any domestic financial institution or domestic financial agency to
take such steps as the Secretary may determine to be reasonable and
practicable to obtain and retain information concerning the beneficial
ownership of any account opened or maintained in the United States by a
foreign person (other than a foreign entity whose shares are subject to
public reporting requirements or are listed and traded on a regulated
exchange or trading market), or a representative of such a foreign person,
that involves a jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United States, 1 or more
classes of transactions within, or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts if the Secretary finds any
such jurisdiction, institution, or transaction or type of account to be of
primary money laundering concern.
`(3) INFORMATION RELATING TO CERTAIN PAYABLE-THROUGH ACCOUNTS- If the
Secretary finds a jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United States, or 1 or more
classes of transactions within, or involving, a jurisdiction outside of the
United States to be of primary money laundering concern, the Secretary may
require any domestic financial institution or domestic financial agency that
opens or maintains a payable-through account in the United States for a
foreign financial institution involving any such jurisdiction or any such
financial institution operating outside of the United States, or a payable
through account through which any such transaction may be conducted, as a
condition of opening or maintaining such account--
`(A) to identify each customer (and representative of such customer)
of such financial institution who is permitted to use, or whose
transactions are routed through, such payable-through account;
and
`(B) to obtain, with respect to each such customer (and each such
representative), information that is substantially comparable to that
which the depository institution obtains in the ordinary course of
business with respect to its customers residing in the United
States.
`(4) INFORMATION RELATING TO CERTAIN CORRESPONDENT ACCOUNTS- If the
Secretary finds a jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United States, or 1 or more
classes of transactions within, or involving, a jurisdiction outside of the
United States to be of primary money laundering concern, the Secretary may
require any domestic financial institution or domestic financial agency that
opens or maintains a correspondent account in the United States for a
foreign financial institution involving any such jurisdiction or any such
financial institution operating outside of the United States, or a
correspondent account through which any such transaction may be conducted,
as a condition of opening or maintaining such account--
`(A) to identify each customer (and representative of such customer)
of any such financial institution who is permitted to use, or whose
transactions are routed through, such correspondent account; and
`(B) to obtain, with respect to each such customer (and each such
representative), information that is substantially comparable to that
which the depository institution obtains in the ordinary course of
business with respect to its customers residing in the United
States.
`(5) PROHIBITIONS OR CONDITIONS ON OPENING OR MAINTAINING CERTAIN
CORRESPONDENT OR PAYABLE-THROUGH ACCOUNTS- If the Secretary finds a
jurisdiction outside of the United States, 1 or more financial institutions
operating outside of the United States, or 1 or more classes of transactions
within, or involving, a jurisdiction outside of the United States to be of
primary money laundering concern, the Secretary, in consultation with the
Secretary of State, the Attorney General, and the Chairman of the Board of
Governors of the Federal Reserve System, may prohibit, or impose conditions
upon, the opening or maintaining in the United States of a correspondent
account or payable- through account by any domestic financial institution or
domestic financial agency for or on behalf of a foreign banking institution,
if such correspondent account or payable-through account involves any such
jurisdiction or institution, or if any such transaction may be conducted
through such correspondent account or payable-through account.
`(c) CONSULTATIONS AND INFORMATION TO BE CONSIDERED IN FINDING
JURISDICTIONS, INSTITUTIONS, TYPES OF ACCOUNTS, OR TRANSACTIONS TO BE OF
PRIMARY MONEY LAUNDERING CONCERN-
`(1) IN GENERAL- In making a finding that reasonable grounds exist for
concluding that a jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United States, 1 or more
classes of transactions within, or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts is of primary money laundering
concern so as to authorize the Secretary of the Treasury to take 1 or more
of the special measures described in subsection (b), the Secretary shall
consult with the Secretary of State and the Attorney General.
`(2) ADDITIONAL CONSIDERATIONS- In making a finding described in
paragraph (1), the Secretary shall consider in addition such information as
the Secretary determines to be relevant, including the following potentially
relevant factors:
`(A) JURISDICTIONAL FACTORS- In the case of a particular
jurisdiction--
`(i) evidence that organized criminal groups, international
terrorists, or both, have transacted business in that
jurisdiction;
`(ii) the extent to which that jurisdiction or financial
institutions operating in that jurisdiction offer bank secrecy or
special regulatory advantages to nonresidents or nondomiciliaries of
that jurisdiction;
`(iii) the substance and quality of administration of the bank
supervisory and counter-money laundering laws of that
jurisdiction;
`(iv) the relationship between the volume of financial transactions
occurring in that jurisdiction and the size of the economy of the
jurisdiction;
`(v) the extent to which that jurisdiction is characterized as an
offshore banking or secrecy haven by credible international
organizations or multilateral expert groups;
`(vi) whether the United States has a mutual legal assistance treaty
with that jurisdiction, and the experience of United States law
enforcement officials and regulatory officials in obtaining information
about transactions originating in or routed through or to such
jurisdiction; and
`(vii) the extent to which that jurisdiction is characterized by
high levels of official or institutional corruption.
`(B) INSTITUTIONAL FACTORS- In the case of a decision to apply 1 or
more of the special measures described in subsection (b) only to a
financial institution or institutions, or to a transaction or class of
transactions, or to a type of account, or to all 3, within or involving a
particular jurisdiction--
`(i) the extent to which such financial institutions, transactions,
or types of accounts are used to facilitate or promote money laundering
in or through the jurisdiction;
`(ii) the extent to which such institutions, transactions, or types
of accounts are used for legitimate business purposes in the
jurisdiction; and
`(iii) the extent to which such action is sufficient to ensure, with
respect to transactions involving the jurisdiction and institutions
operating in the jurisdiction, that the purposes of this subchapter
continue to be fulfilled, and to guard against international money
laundering and other financial crimes.
`(d) NOTIFICATION OF SPECIAL MEASURES INVOKED BY THE SECRETARY- Not later
than 10 days after the date of any action taken by the Secretary of the
Treasury under subsection (a)(1), the Secretary shall notify, in writing, the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate of any such
action.
`(e) DEFINITIONS- Notwithstanding any other provision of this subchapter,
for purposes of this section and subsections (i) and (j) of section 5318, the
following definitions shall apply:
`(1) BANK DEFINITIONS- The following definitions shall apply with
respect to a bank:
`(A) ACCOUNT- The term `account'--
`(i) means a formal banking or business relationship established to
provide regular services, dealings, and other financial transactions;
and
`(ii) includes a demand deposit, savings deposit, or other
transaction or asset account and a credit account or other extension of
credit.
`(B) CORRESPONDENT ACCOUNT- The term `correspondent account' means an
account established to receive deposits from, make payments on behalf of a
foreign financial institution, or handle other financial transactions
related to such institution.
`(C) PAYABLE-THROUGH ACCOUNT- The term `payable-through account' means
an account, including a transaction account (as defined in section
19(b)(1)(C) of the Federal Reserve Act), opened at a depository
institution by a foreign financial institution by means of which the
foreign financial institution permits its customers to engage, either
directly or through a subaccount, in banking activities usual in
connection with the business of banking in the United States.
`(2) DEFINITIONS APPLICABLE TO INSTITUTIONS OTHER THAN BANKS- With
respect to any financial institution other than a bank, the Secretary shall,
after consultation with the appropriate Federal functional regulators (as
defined in section 509 of the Gramm-Leach-Bliley Act), define by regulation
the term `account', and shall include within the meaning of that term, to
the extent, if any, that the Secretary deems appropriate, arrangements
similar to payable-through and correspondent accounts.
`(3) REGULATORY DEFINITION OF BENEFICIAL OWNERSHIP- The Secretary shall
promulgate regulations defining beneficial ownership of an account for
purposes of this section and subsections (i) and (j) of section 5318. Such
regulations shall address issues related to an individual's authority to
fund, direct, or manage the account (including, without limitation, the
power to direct payments into or out of the account), and an individual's
material interest in the income or corpus of the account, and shall ensure
that the identification of individuals under this section does not extend to
any individual whose beneficial interest in the income or corpus of the
account is immaterial.
`(4) OTHER TERMS- The Secretary may, by regulation, further define the
terms in paragraphs (1), (2), and (3), and define other terms for the
purposes of this section, as the Secretary deems appropriate.'.
(b) CLERICAL AMENDMENT- The table of sections for subchapter II of chapter
53 of title 31, United States Code, is amended by inserting after the item
relating to section 5318 the following new item:
`5318A. Special measures for jurisdictions, financial institutions, or
international transactions of primary money laundering concern.'.
SEC. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS AND PRIVATE
BANKING ACCOUNTS.
(a) IN GENERAL- Section 5318 of title 31, United States Code, is amended
by adding at the end the following:
`(i) DUE DILIGENCE FOR UNITED STATES PRIVATE BANKING AND CORRESPONDENT
BANK ACCOUNTS INVOLVING FOREIGN PERSONS-
`(1) IN GENERAL- Each financial institution that establishes, maintains,
administers, or manages a private banking account or a correspondent account
in the United States for a non-United States person, including a foreign
individual visiting the United States, or a representative of a non-United
States person shall establish appropriate, specific, and, where necessary,
enhanced, due diligence policies, procedures, and controls that are
reasonably designed to detect and report instances of money laundering
through those accounts.
`(2) ADDITIONAL STANDARDS FOR CERTAIN CORRESPONDENT ACCOUNTS-
`(A) IN GENERAL- Subparagraph (B) shall apply if a correspondent
account is requested or maintained by, or on behalf of, a foreign bank
operating--
`(i) under an offshore banking license; or
`(ii) under a banking license issued by a foreign country that has
been designated--
`(I) as noncooperative with international anti-money laundering
principles or procedures by an intergovernmental group or organization
of which the United States is a member, with which designation the
United States representative to the group or organization concurs;
or
`(II) by the Secretary of the Treasury as warranting special
measures due to money laundering concerns.
`(B) POLICIES, PROCEDURES, AND CONTROLS- The enhanced due diligence
policies, procedures, and controls required under paragraph (1) shall, at
a minimum, ensure that the financial institution in the United States
takes reasonable steps--
`(i) to ascertain for any such foreign bank, the shares of which are
not publicly traded, the identity of each of the owners of the foreign
bank, and the nature and extent of the ownership interest of each such
owner;
`(ii) to conduct enhanced scrutiny of such account to guard against
money laundering and report any suspicious transactions under subsection
(g); and
`(iii) to ascertain whether such foreign bank provides correspondent
accounts to other foreign banks and, if so, the identity of those
foreign banks and related due diligence information, as appropriate
under paragraph (1).
`(3) MINIMUM STANDARDS FOR PRIVATE BANKING ACCOUNTS- If a private
banking account is requested or maintained by, or on behalf of, a non-United
States person, then the due diligence policies, procedures, and controls
required under paragraph (1) shall, at a minimum, ensure that the financial
institution takes reasonable steps--
`(A) to ascertain the identity of the nominal and beneficial owners
of, and the source of funds deposited into, such account as needed to
guard against money laundering and report any suspicious transactions
under subsection (g); and
`(B) to conduct enhanced scrutiny of any such account that is
requested or maintained by, or on behalf of, a senior foreign political
figure, or any immediate family member or close associate of a senior
foreign political figure that is reasonably designed to detect and report
transactions that may involve the proceeds of foreign corruption.
`(4) DEFINITION- For purposes of this subsection, the following
definitions shall apply:
`(A) OFFSHORE BANKING LICENSE- The term `offshore banking license'
means a license to conduct banking activities which, as a condition of the
license, prohibits the licensed entity from conducting banking activities
with the citizens of, or with the local currency of, the country which
issued the license.
`(B) PRIVATE BANKING ACCOUNT- The term `private banking account' means
an account (or any combination of accounts) that--
`(i) requires a minimum aggregate deposits of funds or other assets
of not less than $1,000,000;
`(ii) is established on behalf of 1 or more individuals who have a
direct or beneficial ownership interest in the account; and
`(iii) is assigned to, or is administered or managed by, in whole or
in part, an officer, employee, or agent of a financial institution
acting as a liaison between the financial institution and the direct or
beneficial owner of the account.'.
(b) REGULATORY AUTHORITY AND EFFECTIVE DATE-
(1) REGULATORY AUTHORITY- Not later than 180 days after the date of
enactment of this Act, the Secretary, in consultation with the appropriate
Federal functional regulators (as defined in section 509 of the
Gramm-Leach-Bliley Act) of the affected financial institutions, shall
further delineate, by regulation, the due diligence policies, procedures,
and controls required under section 5318(i)(1) of title 31, United States
Code, as added by this section.
(2) EFFECTIVE DATE- Section 5318(i) of title 31, United States Code, as
added by this section, shall take effect 270 days after the date of
enactment of this Act, whether or not final regulations are issued under
paragraph (1), and the failure to issue such regulations shall in no way
affect the enforceability of this section or the amendments made by this
section. Section 5318(i) of title 31, United States Code, as added by this
section, shall apply with respect to accounts covered by that section
5318(i), that are opened before, on, or after the date of enactment of this
Act.
SEC. 313. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS WITH FOREIGN
SHELL BANKS.
(a) IN GENERAL- Section 5318 of title 31, United States Code, as amended
by this title, is amended by adding at the end the following:
`(j) PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS WITH FOREIGN
SHELL BANKS-
`(1) IN GENERAL- A financial institution described in subparagraphs (A)
through (G) of section 5312(a)(2) (in this subsection referred to as a
`covered financial institution') shall not establish, maintain, administer,
or manage a correspondent account in the United States for, or on behalf of,
a foreign bank that does not have a physical presence in any country.
`(2) PREVENTION OF INDIRECT SERVICE TO FOREIGN SHELL BANKS- A covered
financial institution shall take reasonable steps to ensure that any
correspondent account established, maintained, administered, or managed by
that covered financial institution in the United States for a foreign bank
is not being used by that foreign bank to indirectly provide banking
services to another foreign bank that does not have a physical presence in
any country. The Secretary of the Treasury shall, by regulation, delineate
the reasonable steps necessary to comply with this paragraph.
`(3) EXCEPTION- Paragraphs (1) and (2) do not prohibit a covered
financial institution from providing a correspondent account to a foreign
bank, if the foreign bank--
`(A) is an affiliate of a depository institution, credit union, or
foreign bank that maintains a physical presence in the United States or a
foreign country, as applicable; and
`(B) is subject to supervision by a banking authority in the country
regulating the affiliated depository institution, credit union, or foreign
bank described in subparagraph (A), as applicable.
`(4) DEFINITIONS- For purposes of this subsection--
`(A) the term `affiliate' means a foreign bank that is controlled by
or is under common control with a depository institution, credit union, or
foreign bank; and
`(B) the term `physical presence' means a place of business
that--
`(i) is maintained by a foreign bank;
`(ii) is located at a fixed address (other than solely an electronic
address) in a country in which the foreign bank is authorized to conduct
banking activities, at which location the foreign bank--
`(I) employs 1 or more individuals on a full-time basis;
and
`(II) maintains operating records related to its banking
activities; and
`(iii) is subject to inspection by the banking authority which
licensed the foreign bank to conduct banking activities.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
at the end of the 60-day period beginning on the date of enactment of this
Act.
SEC. 314. COOPERATIVE EFFORTS TO DETER MONEY LAUNDERING.
(a) COOPERATION AMONG FINANCIAL INSTITUTIONS, REGULATORY AUTHORITIES, AND
LAW ENFORCEMENT AUTHORITIES-
(1) REGULATIONS- The Secretary shall, within 120 days after the date of
enactment of this Act, adopt regulations to encourage further cooperation
among financial institutions, their regulatory authorities, and law
enforcement authorities, with the specific purpose of encouraging regulatory
authorities and law enforcement authorities to share with financial
institutions information regarding individuals, entities, and organizations
engaged in or reasonably suspected based on credible evidence of engaging in
terrorist acts or money laundering activities.
(2) COOPERATION AND INFORMATION SHARING PROCEDURES- The regulatio