[Congressional Record: October 23, 2001 (House)]
[Page H7159-H7207]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr23oc01-50]
UNITING AND STRENGTHENING AMERICA BY PROVIDING APPROPRIATE TOOLS
REQUIRED TO INTERCEPT AND OBSTRUCT TERRORISM (USA PATRIOT) ACT OF 2001
Mr. SENSENBRENNER. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 3162) to deter and punish terrorist acts in the United
States and around the world, to enhance law enforcement investigatory
tools, and for other purposes.
The Clerk read as follows:
H.R. 3162
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 Act by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT)
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. 224. Sunset.
Sec. 225. Immunity for compliance with FISA wiretap.
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
Sec. 301. Short title.
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.
[[Page H7160]]
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.
Sec. 428. Definitions.
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. 711. 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
[[Page H7161]]
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
[[Page H7162]]
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.
(a) Duration .--
(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''.
(b) Extension.--
(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--
(1) in section 2510--
(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
[[Page H7163]]
(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--
``(A) name;
``(B) address;
``(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),
of a subscriber''; and
(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'';
(B) in subsection (a)--
(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:
``(A) shall specify--
``(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.''.
[[Page H7164]]
(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--
``(1) shall be made to--
``(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 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''.
(b) Issuance of Orders.--
(1) In general.--Section 3123(a) of title 18, United States
Code, is amended to read as follows:
``(a) In General.--
``(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''.
(c) Definitions.--
(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--
[[Page H7165]]
(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--
(1) in section 2510--
(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
(2) in section 2711--
(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 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 13224 (September 23, 2001);
(4) any narcotics trafficking entity designated pursuant to
Executive Order 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
[[Page H7166]]
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 possible 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;
(2) to ensure that--
(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
[[Page H7167]]
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
``(B) shall consider--
``(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.
[[Page H7168]]
``(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.--
[[Page H7169]]
``(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 |
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