Patriot Act of 2001

115 STAT. 272 PUBLIC LAW 107–56—OCT. 26, 2001

Public Law 107–56

107th Congress115 STAT. 314 PUBLIC LAW 107–56—OCT. 26, 2001

‘‘(ii) LIMITATION ON LIABILITY.—A covered financial

institution shall not be liable to any person in any

court or arbitration proceeding for terminating a correspondent

relationship in accordance with this subsection.

‘‘(iii) FAILURE TO TERMINATE RELATIONSHIP.—

Failure to terminate a correspondent relationship in

accordance with this subsection shall render the covered

financial institution liable for a civil penalty of

up to $10,000 per day until the correspondent relationship

is so terminated.’’.

(c) GRACE PERIOD.—Financial institutions shall have 60 days

from the date of enactment of this Act to comply with the provisions

of section 5318(k) of title 31, United States Code, as added by

this section.

(d) AUTHORITY TO ORDER CONVICTED CRIMINAL TO RETURN

PROPERTY LOCATED ABROAD.—

(1) FORFEITURE OF SUBSTITUTE PROPERTY.—Section 413(p)

of the Controlled Substances Act (21 U.S.C. 853) is amended

to read as follows:

‘‘(p) FORFEITURE OF SUBSTITUTE PROPERTY.—

‘‘(1) IN GENERAL.—Paragraph (2) of this subsection shall

apply, if any property described in subsection (a), as a result

of any act or omission of the defendant—

‘‘(A) cannot be located upon the exercise of due diligence;

‘‘(B) has been transferred or sold to, or deposited with,

a third party;

‘‘(C) has been placed beyond the jurisdiction of the

court;

‘‘(D) has been substantially diminished in value; or

‘‘(E) has been commingled with other property which

cannot be divided without difficulty.

‘‘(2) SUBSTITUTE PROPERTY.—In any case described in any

of subparagraphs (A) through (E) of paragraph (1), the court

shall order the forfeiture of any other property of the defendant,

up to the value of any property described in subparagraphs

(A) through (E) of paragraph (1), as applicable.

‘‘(3) RETURN OF PROPERTY TO JURISDICTION.—In the case

of property described in paragraph (1)(C), the court may, in

addition to any other action authorized by this subsection,

order the defendant to return the property to the jurisdiction

of the court so that the property may be seized and forfeited.’’.

(2) PROTECTIVE ORDERS.—Section 413(e) of the Controlled

Substances Act (21 U.S.C. 853(e)) is amended by adding at

the end the following:

‘‘(4) ORDER TO REPATRIATE AND DEPOSIT.—

‘‘(A) IN GENERAL.—Pursuant to its authority to enter

a pretrial restraining order under this section, the court

may order a defendant to repatriate any property that

may be seized and forfeited, and to deposit that property

pending trial in the registry of the court, or with the

United States Marshals Service or the Secretary of the

Treasury, in an interest-bearing account, if appropriate.

‘‘(B) FAILURE TO COMPLY.—Failure to comply with an

order under this subsection, or an order to repatriate property

under subsection (p), shall be punishable as a civil

31 USC 5318

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 315

or criminal contempt of court, and may also result in an

enhancement of the sentence of the defendant under the

obstruction of justice provision of the Federal Sentencing

Guidelines.’’.

SEC. 320. PROCEEDS OF FOREIGN CRIMES.

Section 981(a)(1)(B) of title 18, United States Code, is amended

to read as follows:

‘‘(B) Any property, real or personal, within the jurisdiction

of the United States, constituting, derived from, or traceable

to, any proceeds obtained directly or indirectly from an offense

against a foreign nation, or any property used to facilitate

such an offense, if the offense—

‘‘(i) involves the manufacture, importation, sale, or distribution

of a controlled substance (as that term is defined

for purposes of the Controlled Substances Act), or any

other conduct described in section 1956(c)(7)(B);

‘‘(ii) would be punishable within the jurisdiction of

the foreign nation by death or imprisonment for a term

exceeding 1 year; and

‘‘(iii) would be punishable under the laws of the United

States by imprisonment for a term exceeding 1 year, if

the act or activity constituting the offense had occurred

within the jurisdiction of the United States.’’.

SEC. 321. FINANCIAL INSTITUTIONS SPECIFIED IN SUBCHAPTER II OF

CHAPTER 53 OF TITLE 31, UNITED STATES CODE.

(a) CREDIT UNIONS.—Subparagraph (E) of section 5312(2) of

title 31, United States Code, is amended to read as follows:

‘‘(E) any credit union;’’.

(b) FUTURES COMMISSION MERCHANT; COMMODITY TRADING

ADVISOR; COMMODITY POOL OPERATOR.—Section 5312 of title 31,

United States Code, is amended by adding at the end the following

new subsection:

‘‘(c) ADDITIONAL DEFINITIONS.—For purposes of this subchapter,

the following definitions shall apply:

‘‘(1) CERTAIN INSTITUTIONS INCLUDED IN DEFINITION.—The

term ‘financial institution’ (as defined in subsection (a)) includes

the following:

‘‘(A) Any futures commission merchant, commodity

trading advisor, or commodity pool operator registered, or

required to register, under the Commodity Exchange Act.’’.

(c) CFTC

SEC. 322. CORPORATION REPRESENTED BY A FUGITIVE.

Section 2466 of title 18, United States Code, is amended by

designating the present matter as subsection (a), and adding at

the end the following:

‘‘(b) Subsection (a) may be applied to a claim filed by a corporation

if any majority shareholder, or individual filing the claim

on behalf of the corporation is a person to whom subsection (a)

applies.’’.

SEC. 323. ENFORCEMENT OF FOREIGN JUDGMENTS.

Section 2467 of title 28, United States Code, is amended—

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115 STAT. 316 PUBLIC LAW 107–56—OCT. 26, 2001

(1) in subsection (d), by adding the following after paragraph

(2):

‘‘(3) PRESERVATION OF PROPERTY.—

‘‘(A) IN GENERAL.—To preserve the availability of property

subject to a foreign forfeiture or confiscation judgment,

the Government may apply for, and the court may issue,

a restraining order pursuant to section 983(j) of title 18,

at any time before or after an application is filed pursuant

to subsection (c)(1) of this section.

‘‘(B) EVIDENCE.—The court, in issuing a restraining

order under subparagraph (A)—

‘‘(i) may rely on information set forth in an affidavit

describing the nature of the proceeding or investigation

underway in the foreign country, and setting

forth a reasonable basis to believe that the property

to be restrained will be named in a judgment of forfeiture

at the conclusion of such proceeding; or

‘‘(ii) may register and enforce a restraining order

that has been issued by a court of competent jurisdiction

in the foreign country and certified by the Attorney

General pursuant to subsection (b)(2).

‘‘(C) LIMIT ON GROUNDS FOR OBJECTION.—No person

may object to a restraining order under subparagraph (A)

on any ground that is the subject of parallel litigation

involving the same property that is pending in a foreign

court.’’;

(2) in subsection (b)(1)(C), by striking ‘‘establishing that

the defendant received notice of the proceedings in sufficient

time to enable the defendant’’ and inserting ‘‘establishing that

the foreign nation took steps, in accordance with the principles

of due process, to give notice of the proceedings to all persons

with an interest in the property in sufficient time to enable

such persons’’;

(3) in subsection (d)(1)(D), by striking ‘‘the defendant in

the proceedings in the foreign court did not receive notice’’

and inserting ‘‘the foreign nation did not take steps, in accordance

with the principles of due process, to give notice of the

proceedings to a person with an interest in the property’’;

and

(4) in subsection (a)(2)(A), by inserting ‘‘, any violation

of foreign law that would constitute a violation or an offense

for which property could be forfeited under Federal law if

the offense were committed in the United States’’ after ‘‘United

Nations Convention’’.

SEC. 324. REPORT AND RECOMMENDATION.

Not later than 30 months after the date of enactment of this

Act, the Secretary, in consultation with the Attorney General, the

Federal banking agencies (as defined at section 3 of the Federal

Deposit Insurance Act), the National Credit Union Administration

Board, the Securities and Exchange Commission, and such other

agencies as the Secretary may determine, at the discretion of the

Secretary, shall evaluate the operations of the provisions of this

subtitle and make recommendations to Congress as to any legislative

action with respect to this subtitle as the Secretary may determine

to be necessary or advisable.

Deadline.

31 USC 5311

note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 317

SEC. 325. CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS.

Section 5318(h) of title 31, United States Code, as amended

by section 202 of this title, is amended by adding at the end

the following:

‘‘(3) CONCENTRATION ACCOUNTS.—The Secretary may prescribe

regulations under this subsection that govern maintenance

of concentration accounts by financial institutions, in

order to ensure that such accounts are not used to prevent

association of the identity of an individual customer with the

movement of funds of which the customer is the direct or

beneficial owner, which regulations shall, at a minimum—

‘‘(A) prohibit financial institutions from allowing clients

to direct transactions that move their funds into, out of,

or through the concentration accounts of the financial

institution;

‘‘(B) prohibit financial institutions and their employees

from informing customers of the existence of, or the means

of identifying, the concentration accounts of the institution;

and

‘‘(C) require each financial institution to establish written

procedures governing the documentation of all transactions

involving a concentration account, which procedures

shall ensure that, any time a transaction involving a concentration

account commingles funds belonging to 1 or

more customers, the identity of, and specific amount

belonging to, each customer is documented.’’.

SEC. 326. VERIFICATION OF IDENTIFICATION.

(a) IN GENERAL.—Section 5318 of title 31, United States Code,

as amended by this title, is amended by adding at the end the

following:

‘‘(l) IDENTIFICATION AND VERIFICATION OF ACCOUNTHOLDERS.—

‘‘(1) IN GENERAL.—Subject to the requirements of this subsection,

the Secretary of the Treasury shall prescribe regulations

setting forth the minimum standards for financial institutions

and their customers regarding the identity of the customer

that shall apply in connection with the opening of an account

at a financial institution.

‘‘(2) MINIMUM REQUIREMENTS.—The regulations shall, at

a minimum, require financial institutions to implement, and

customers (after being given adequate notice) to comply with,

reasonable procedures for—

‘‘(A) verifying the identity of any person seeking to

open an account to the extent reasonable and practicable;

‘‘(B) maintaining records of the information used to

verify a person’s identity, including name, address, and

other identifying information; and

‘‘(C) consulting lists of known or suspected terrorists

or terrorist organizations provided to the financial institution

by any government agency to determine whether a

person seeking to open an account appears on any such

list.

‘‘(3) FACTORS TO BE CONSIDERED.—In prescribing regulations

under this subsection, the Secretary shall take into consideration

the various types of accounts maintained by various

types of financial institutions, the various methods of opening

Regulations.

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115 STAT. 318 PUBLIC LAW 107–56—OCT. 26, 2001

accounts, and the various types of identifying information available.

‘‘(4) CERTAIN FINANCIAL INSTITUTIONS.—In the case of any

financial institution the business of which is engaging in financial

activities described in section 4(k) of the Bank Holding

Company Act of 1956 (including financial activities subject

to the jurisdiction of the Commodity Futures Trading Commission),

the regulations prescribed by the Secretary under paragraph

(1) shall be prescribed jointly with each Federal functional

regulator (as defined in section 509 of the Gramm-Leach-

Bliley Act, including the Commodity Futures Trading Commission)

appropriate for such financial institution.

‘‘(5) EXEMPTIONS.—The Secretary (and, in the case of any

financial institution described in paragraph (4), any Federal

agency described in such paragraph) may, by regulation or

order, exempt any financial institution or type of account from

the requirements of any regulation prescribed under this subsection

in accordance with such standards and procedures as

the Secretary may prescribe.

‘‘(6) EFFECTIVE DATE.—Final regulations prescribed under

this subsection shall take effect before the end of the 1-year

period beginning on the date of enactment of the International

Money Laundering Abatement and Financial Anti-Terrorism

Act of 2001.’’.

(b) STUDY AND REPORT REQUIRED.—Within 6 months after the

date of enactment of this Act, the Secretary, in consultation with

the Federal functional regulators (as defined in section 509 of

the Gramm-Leach-Bliley Act) and other appropriate Government

agencies, shall submit a report to the Congress containing recommendations

for—

(1) determining the most timely and effective way to require

foreign nationals to provide domestic financial institutions and

agencies with appropriate and accurate information, comparable

to that which is required of United States nationals,

concerning the identity, address, and other related information

about such foreign nationals necessary to enable such institutions

and agencies to comply with the requirements of this

section;

(2) requiring foreign nationals to apply for and obtain,

before opening an account with a domestic financial institution,

an identification number which would function similarly to

a Social Security number or tax identification number; and

(3) establishing a system for domestic financial institutions

and agencies to review information maintained by relevant

Government agencies for purposes of verifying the identities

of foreign nationals seeking to open accounts at those institutions

and agencies.

SEC. 327. CONSIDERATION OF ANTI-MONEY LAUNDERING RECORD.

(a) BANK HOLDING COMPANY ACT OF 1956.—

(1) IN GENERAL.—Section 3(c) of the Bank Holding Company

Act of 1956 (12 U.S.C. 1842(c)) is amended by adding

at the end the following new paragraph:

‘‘(6) MONEY LAUNDERING.—In every case, the Board shall

take into consideration the effectiveness of the company or

companies in combatting money laundering activities, including

in overseas branches.’’.

Deadline.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 319

(2) SCOPE OF APPLICATION.—The amendment made by paragraph

(1) shall apply with respect to any application submitted

to the Board of Governors of the Federal Reserve System under

section 3 of the Bank Holding Company Act of 1956 after December

31, 2001, which has not been approved by the Board before the

date of enactment of this Act.

(b) MERGERS SUBJECT TO REVIEW UNDER FEDERAL DEPOSIT

INSURANCE ACT.—

(1) IN GENERAL.—Section 18(c) of the Federal Deposit Insurance

Act (12 U.S.C. 1828(c)) is amended—

(A) by redesignating paragraph (11) as paragraph (12);

and

(B) by inserting after paragraph (10), the following

new paragraph:

‘‘(11) MONEY LAUNDERING.—In every case, the responsible

agency, shall take into consideration the effectiveness of any

insured depository institution involved in the proposed merger

transaction in combatting money laundering activities,

including in overseas branches.’’.

(2) SCOPE OF APPLICATION.—The amendment made by paragraph

(1) shall apply with respect to any application submitted

to the responsible agency under section 18(c) of the Federal

Deposit Insurance Act after December 31, 2001, which has

not been approved by all appropriate responsible agencies

before the date of enactment of this Act.

SEC. 328. INTERNATIONAL COOPERATION ON IDENTIFICATION OF

ORIGINATORS OF WIRE TRANSFERS.

The Secretary shall—

(1) in consultation with the Attorney General and the Secretary

of State, take all reasonable steps to encourage foreign

governments to require the inclusion of the name of the originator

in wire transfer instructions sent to the United States

and other countries, with the information to remain with the

transfer from its origination until the point of disbursement;

and

(2) report annually to the Committee on Financial Services

of the House of Representatives and the Committee on Banking,

Housing, and Urban Affairs of the Senate on—

(A) progress toward the goal enumerated in paragraph

(1), as well as impediments to implementation and an

estimated compliance rate; and

(B) impediments to instituting a regime in which all

appropriate identification, as defined by the Secretary,

about wire transfer recipients shall be included with wire

transfers from their point of origination until disbursement.

SEC. 329. CRIMINAL PENALTIES.

Any person who is an official or employee of any department,

agency, bureau, office, commission, or other entity of the Federal

Government, and any other person who is acting for or on behalf

of any such entity, who, directly or indirectly, in connection with

the administration of this title, corruptly demands, seeks, receives,

accepts, or agrees to receive or accept anything of value personally

or for any other person or entity in return for—

(1) being influenced in the performance of any official act;

31 USC 5311

note.

31 USC 5311

note.

12 USC 1828

note.

12 USC 1842

note.

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115 STAT. 320 PUBLIC LAW 107–56—OCT. 26, 2001

(2) being influenced to commit or aid in the committing,

or to collude in, or allow, any fraud, or make opportunity

for the commission of any fraud, on the United States; or

(3) being induced to do or omit to do any act in violation

of the official duty of such official or person,

shall be fined in an amount not more than 3 times the monetary

equivalent of the thing of value, or imprisoned for not more than

15 years, or both. A violation of this section shall be subject to

chapter 227 of title 18, United States Code, and the provisions

of the United States Sentencing Guidelines.

SEC. 330. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF

MONEY LAUNDERING, FINANCIAL CRIMES, AND THE

FINANCES OF TERRORIST GROUPS.

(a) NEGOTIATIONS.—It is the sense of the Congress that the President

should direct the Secretary of State, the Attorney General,

or the Secretary of the Treasury, as appropriate, and in consultation

with the Board of Governors of the Federal Reserve System, to

seek to enter into negotiations with the appropriate financial supervisory

agencies and other officials of any foreign country the financial

institutions of which do business with United States financial

institutions or which may be utilized by any foreign terrorist

organization (as designated under section 219 of the Immigration

and Nationality Act), any person who is a member or representative

of any such organization, or any person engaged in money laundering

or financial or other crimes.

(b) PURPOSES OF NEGOTIATIONS.—It is the sense of the Congress

that, in carrying out any negotiations described in paragraph (1),

the President should direct the Secretary of State, the Attorney

General, or the Secretary of the Treasury, as appropriate, to seek

to enter into and further cooperative efforts, voluntary information

exchanges, the use of letters rogatory, mutual legal assistance treaties,

and international agreements to—

(1) ensure that foreign banks and other financial institutions

maintain adequate records of transaction and account

information relating to any foreign terrorist organization (as

designated under section 219 of the Immigration and Nationality

Act), any person who is a member or representative of

any such organization, or any person engaged in money laundering

or financial or other crimes; and

(2) establish a mechanism whereby such records may be

made available to United States law enforcement officials and

domestic financial institution supervisors, when appropriate.

Subtitle B—Bank Secrecy Act Amendments

and Related Improvements

SEC. 351. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS

ACTIVITIES.

(a) AMENDMENT RELATING TO CIVIL LIABILITY IMMUNITY FOR

DISCLOSURES.—Section 5318(g)(3) of title 31, United States Code,

is amended to read as follows:

‘‘(3) LIABILITY FOR DISCLOSURES.—

‘‘(A) IN GENERAL.—Any financial institution that makes

a voluntary disclosure of any possible violation of law or

regulation to a government agency or makes a disclosure

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 321

pursuant to this subsection or any other authority, and

any director, officer, employee, or agent of such institution

who makes, or requires another to make any such disclosure,

shall not be liable to any person under any law

or regulation of the United States, any constitution, law,

or regulation of any State or political subdivision of any

State, or under any contract or other legally enforceable

agreement (including any arbitration agreement), for such

disclosure or for any failure to provide notice of such disclosure

to the person who is the subject of such disclosure

or any other person identified in the disclosure.

‘‘(B) RULE OF CONSTRUCTION.—Subparagraph (A) shall

not be construed as creating—

‘‘(i) any inference that the term ‘person’, as used

in such subparagraph, may be construed more broadly

than its ordinary usage so as to include any government

or agency of government; or

‘‘(ii) any immunity against, or otherwise affecting,

any civil or criminal action brought by any government

or agency of government to enforce any constitution,

law, or regulation of such government or agency.’’.

(b) PROHIBITION ON NOTIFICATION OF DISCLOSURES.—Section

5318(g)(2) of title 31, United States Code, is amended to read

as follows:

‘‘(2) NOTIFICATION PROHIBITED.—

‘‘(A) IN GENERAL.—If a financial institution or any

director, officer, employee, or agent of any financial institution,

voluntarily or pursuant to this section or any other

authority, reports a suspicious transaction to a government

agency—

‘‘(i) the financial institution, director, officer,

employee, or agent may not notify any person involved

in the transaction that the transaction has been

reported; and

‘‘(ii) no officer or employee of the Federal Government

or of any State, local, tribal, or territorial government

within the United States, who has any knowledge

that such report was made may disclose to any person

involved in the transaction that the transaction has

been reported, other than as necessary to fulfill the

official duties of such officer or employee.

‘‘(B) DISCLOSURES IN CERTAIN EMPLOYMENT REFERENCES.—

‘‘(i) RULE OF CONSTRUCTION.—Notwithstanding the

application of subparagraph (A) in any other context,

subparagraph (A) shall not be construed as prohibiting

any financial institution, or any director, officer,

employee, or agent of such institution, from including

information that was included in a report to which

subparagraph (A) applies—

‘‘(I) in a written employment reference that

is provided in accordance with section 18(w) of

the Federal Deposit Insurance Act in response to

a request from another financial institution; or

‘‘(II) in a written termination notice or employment

reference that is provided in accordance with

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115 STAT. 322 PUBLIC LAW 107–56—OCT. 26, 2001

the rules of a self-regulatory organization registered

with the Securities and Exchange Commission

or the Commodity Futures Trading Commission,

except that such written reference or notice may not

disclose that such information was also included in

any such report, or that such report was made.

‘‘(ii) INFORMATION NOT REQUIRED.—Clause (i) shall

not be construed, by itself, to create any affirmative

duty to include any information described in clause

(i) in any employment reference or termination notice

referred to in clause (i).’’.

SEC. 352. ANTI-MONEY LAUNDERING PROGRAMS.

(a) IN GENERAL.—Section 5318(h) of title 31, United States

Code, is amended to read as follows:

‘‘(h) ANTI-MONEY LAUNDERING PROGRAMS.—

‘‘(1) IN GENERAL.—In order to guard against money laundering

through financial institutions, each financial institution

shall establish anti-money laundering programs, including, at

a minimum—

‘‘(A) the development of internal policies, procedures,

and controls;

‘‘(B) the designation of a compliance officer;

‘‘(C) an ongoing employee training program; and

‘‘(D) an independent audit function to test programs.

‘‘(2) REGULATIONS.—The Secretary of the Treasury, after

consultation with the appropriate Federal functional regulator

(as defined in section 509 of the Gramm-Leach-Bliley Act),

may prescribe minimum standards for programs established

under paragraph (1), and may exempt from the application

of those standards any financial institution that is not subject

to the provisions of the rules contained in part 103 of title

31, of the Code of Federal Regulations, or any successor rule

thereto, for so long as such financial institution is not subject

to the provisions of such rules.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect at the end of the 180-day period beginning on

the date of enactment of this Act.

(c) DATE OF APPLICATION OF REGULATIONS; FACTORS TO BE

TAKEN INTO ACCOUNT.—Before the end of the 180-day period beginning

on the date of enactment of this Act, the Secretary shall

prescribe regulations that consider the extent to which the requirements

imposed under this section are commensurate with the size,

location, and activities of the financial institutions to which such

regulations apply.

SEC. 353. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING

ORDERS AND CERTAIN RECORDKEEPING REQUIREMENTS,

AND LENGTHENING EFFECTIVE PERIOD OF

GEOGRAPHIC TARGETING ORDERS.

(a) CIVIL PENALTY FOR VIOLATION OF TARGETING ORDER.—

Section 5321(a)(1) of title 31, United States Code, is amended—

(1) by inserting ‘‘or order issued’’ after ‘‘subchapter or a

regulation prescribed’’; and

(2) by inserting ‘‘, or willfully violating a regulation prescribed

under section 21 of the Federal Deposit Insurance Act

31 USC 5318

note.

31 USC 5318

note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 323

or section 123 of Public Law 91–508,’’ after ‘‘sections 5314

and 5315)’’.

(b) CRIMINAL PENALTIES FOR VIOLATION OF TARGETING

ORDER.—Section 5322 of title 31, United States Code, is amended—

(1) in subsection (a)—

(A) by inserting ‘‘or order issued’’ after ‘‘willfully violating

this subchapter or a regulation prescribed’’; and

(B) by inserting ‘‘, or willfully violating a regulation

prescribed under section 21 of the Federal Deposit Insurance

Act or section 123 of Public Law 91–508,’’ after ‘‘under

section 5315 or 5324)’’; and

(2) in subsection (b)—

(A) by inserting ‘‘or order issued’’ after ‘‘willfully violating

this subchapter or a regulation prescribed’’; and

(B) by inserting ‘‘or willfully violating a regulation

prescribed under section 21 of the Federal Deposit Insurance

Act or section 123 of Public Law 91–508,’’ after ‘‘under

section 5315 or 5324),’’.

(c) STRUCTURING TRANSACTIONS TO EVADE TARGETING ORDER

OR CERTAIN RECORDKEEPING REQUIREMENTS.—Section 5324(a) of

title 31, United States Code, is amended—

(1) by inserting a comma after ‘‘shall’’;

(2) by striking ‘‘section—’’ and inserting ‘‘section, the

reporting or recordkeeping requirements imposed by any order

issued under section 5326, or the recordkeeping requirements

imposed by any regulation prescribed under section 21 of the

Federal Deposit Insurance Act or section 123 of Public Law

91–508—’’;

(3) in paragraph (1), by inserting ‘‘, to file a report or

to maintain a record required by an order issued under section

5326, or to maintain a record required pursuant to any regulation

prescribed under section 21 of the Federal Deposit Insurance

Act or section 123 of Public Law 91–508’’ after ‘‘regulation

prescribed under any such section’’; and

(4) in paragraph (2), by inserting ‘‘, to file a report or

to maintain a record required by any order issued under section

5326, or to maintain a record required pursuant to any regulation

prescribed under section 5326, or to maintain a record

required pursuant to any regulation prescribed under section

21 of the Federal Deposit Insurance Act or section 123 of

Public Law 91–508,’’ after ‘‘regulation prescribed under any

such section’’.

(d) LENGTHENING EFFECTIVE PERIOD OF GEOGRAPHIC TARGETING

ORDERS.—Section 5326(d) of title 31, United States Code,

is amended by striking ‘‘more than 60’’ and inserting ‘‘more than

180’’.

SEC. 354. ANTI-MONEY LAUNDERING STRATEGY.

Section 5341(b) of title 31, United States Code, is amended

by adding at the end the following:

‘‘(12) DATA REGARDING FUNDING OF TERRORISM.—Data concerning

money laundering efforts related to the funding of

acts of international terrorism, and efforts directed at the

prevention, detection, and prosecution of such funding.’’.

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115 STAT. 324 PUBLIC LAW 107–56—OCT. 26, 2001

SEC. 355. AUTHORIZATION TO INCLUDE SUSPICIONS OF ILLEGAL

ACTIVITY IN WRITTEN EMPLOYMENT REFERENCES.

Section 18 of the Federal Deposit Insurance Act (12 U.S.C.

1828) is amended by adding at the end the following:

‘‘(w) WRITTEN EMPLOYMENT REFERENCES MAY CONTAIN SUSPICIONS

OF INVOLVEMENT IN ILLEGAL ACTIVITY.—

‘‘(1) AUTHORITY TO DISCLOSE INFORMATION.—Notwithstanding

any other provision of law, any insured depository

institution, and any director, officer, employee, or agent of

such institution, may disclose in any written employment reference

relating to a current or former institution-affiliated party

of such institution which is provided to another insured depository

institution in response to a request from such other institution,

information concerning the possible involvement of such

institution-affiliated party in potentially unlawful activity.

‘‘(2) INFORMATION NOT REQUIRED.—Nothing in paragraph

(1) shall be construed, by itself, to create any affirmative duty

to include any information described in paragraph (1) in any

employment reference referred to in paragraph (1).

‘‘(3) MALICIOUS INTENT.—Notwithstanding any other provision

of this subsection, voluntary disclosure made by an insured

depository institution, and any director, officer, employee, or

agent of such institution under this subsection concerning

potentially unlawful activity that is made with malicious intent,

shall not be shielded from liability from the person identified

in the disclosure.

‘‘(4) DEFINITION.—For purposes of this subsection, the term

‘insured depository institution’ includes any uninsured branch

or agency of a foreign bank.’’.

SEC. 356. REPORTING OF SUSPICIOUS ACTIVITIES BY SECURITIES BROKERS

AND DEALERS; INVESTMENT COMPANY STUDY.

(a) DEADLINE FOR SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS

FOR REGISTERED BROKERS AND DEALERS.—The Secretary,

after consultation with the Securities and Exchange Commission

and the Board of Governors of the Federal Reserve System, shall

publish proposed regulations in the Federal Register before January

1, 2002, requiring brokers and dealers registered with the Securities

and Exchange Commission under the Securities Exchange Act of

1934 to submit suspicious activity reports under section 5318(g)

of title 31, United States Code. Such regulations shall be published

in final form not later than July 1, 2002.

(b) SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS FOR

FUTURES COMMISSION MERCHANTS, COMMODITY TRADING ADVISORS,

AND COMMODITY POOL OPERATORS.—The Secretary, in consultation

with the Commodity Futures Trading Commission, may prescribe

regulations requiring futures commission merchants, commodity

trading advisors, and commodity pool operators registered under

the Commodity Exchange Act to submit suspicious activity reports

under section 5318(g) of title 31, United States Code.

(c) REPORT ON INVESTMENT COMPANIES.—

(1) IN GENERAL.—Not later than 1 year after the date

of enactment of this Act, the Secretary, the Board of Governors

of the Federal Reserve System, and the Securities and

Exchange Commission shall jointly submit a report to the Congress

on recommendations for effective regulations to apply

the requirements of subchapter II of chapter 53 of title 31,

Deadline.

31 USC 5311

note.

31 USC 5318

note.

Regulations.

Federal Register,

publication.

31 USC 5318

note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 325

United States Code, to investment companies pursuant to section

5312(a)(2)(I) of title 31, United States Code.

(2) DEFINITION.—For purposes of this subsection, the term

‘‘investment company’’—

(A) has the same meaning as in section 3 of the Investment

Company Act of 1940 (15 U.S.C. 80a–3); and

(B) includes any person that, but for the exceptions

provided for in paragraph (1) or (7) of section 3(c) of the

Investment Company Act of 1940 (15 U.S.C. 80a–3(c)),

would be an investment company.

(3) ADDITIONAL RECOMMENDATIONS.—The report required

by paragraph (1) may make different recommendations for different

types of entities covered by this subsection.

(4) BENEFICIAL OWNERSHIP OF PERSONAL HOLDING COMPANIES.—

The report described in paragraph (1) shall also include

recommendations as to whether the Secretary should promulgate

regulations to treat any corporation or business or other

grantor trust whose assets are predominantly securities, bank

certificates of deposit, or other securities or investment

instruments (other than such as relate to operating subsidiaries

of such corporation or trust) and that has 5 or fewer common

shareholders or holders of beneficial or other equity interest,

as a financial institution within the meaning of that phrase

in section 5312(a)(2)(I) and whether to require such corporations

or trusts to disclose their beneficial owners when opening

accounts or initiating funds transfers at any domestic financial

institution.

SEC. 357. SPECIAL REPORT ON ADMINISTRATION OF BANK SECRECY

PROVISIONS.

(a) REPORT REQUIRED.—Not later than 6 months after the

date of enactment of this Act, the Secretary shall submit a report

to the Congress relating to the role of the Internal Revenue Service

in the administration of subchapter II of chapter 53 of title 31,

United States Code (commonly known as the ‘‘Bank Secrecy Act’’).

(b) CONTENTS.—The report required by subsection (a)—

(1) shall specifically address, and contain recommendations

concerning—

(A) whether it is advisable to shift the processing of

information reporting to the Department of the Treasury

under the Bank Secrecy Act provisions to facilities other

than those managed by the Internal Revenue Service; and

(B) whether it remains reasonable and efficient, in

light of the objective of both anti-money-laundering programs

and Federal tax administration, for the Internal

Revenue Service to retain authority and responsibility for

audit and examination of the compliance of money services

businesses and gaming institutions with those Bank

Secrecy Act provisions; and

(2) shall, if the Secretary determines that the information

processing responsibility or the audit and examination responsibility

of the Internal Revenue Service, or both, with respect

to those Bank Secrecy Act provisions should be transferred

to other agencies, include the specific recommendations of the

Secretary regarding the agency or agencies to which any such

function should be transferred, complete with a budgetary and

resources plan for expeditiously accomplishing the transfer.

Deadline.

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115 STAT. 326 PUBLIC LAW 107–56—OCT. 26, 2001

SEC. 358. BANK SECRECY PROVISIONS AND ACTIVITIES OF UNITED

STATES INTELLIGENCE AGENCIES TO FIGHT INTERNATIONAL

TERRORISM.

(a) AMENDMENT RELATING TO THE PURPOSES OF CHAPTER 53

OF TITLE 31, UNITED STATES CODE.—Section 5311 of title 31, United

States Code, is amended by inserting before the period at the

end the following: ‘‘, or in the conduct of intelligence or counterintelligence

activities, including analysis, to protect against international

terrorism’’.

(b) AMENDMENT RELATING TO REPORTING OF SUSPICIOUS ACTIVITIES.—

Section 5318(g)(4)(B) of title 31, United States Code, is

amended by striking ‘‘or supervisory agency’’ and inserting ‘‘, supervisory

agency, or United States intelligence agency for use in the

conduct of intelligence or counterintelligence activities, including

analysis, to protect against international terrorism’’.

(c) AMENDMENT RELATING TO AVAILABILITY OF REPORTS.—Section

5319 of title 31, United States Code, is amended to read

as follows:

‘‘§ 5319. Availability of reports

‘‘The Secretary of the Treasury shall make information in a

report filed under this subchapter available to an agency, including

any State financial institutions supervisory agency, United States

intelligence agency or self-regulatory organization registered with

the Securities and Exchange Commission or the Commodity Futures

Trading Commission, upon request of the head of the agency or

organization. The report shall be available for a purpose that is

consistent with this subchapter. The Secretary may only require

reports on the use of such information by any State financial

institutions supervisory agency for other than supervisory purposes

or by United States intelligence agencies. However, a report and

records of reports are exempt from disclosure under section 552

of title 5.’’.

(d) AMENDMENT RELATING TO THE PURPOSES OF THE BANK

SECRECY ACT PROVISIONS.—Section 21(a) of the Federal Deposit

Insurance Act (12 U.S.C. 1829b(a)) is amended to read as follows:

‘‘(a) CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE.—

‘‘(1) FINDINGS.—Congress finds that—

‘‘(A) adequate records maintained by insured depository

institutions have a high degree of usefulness in criminal,

tax, and regulatory investigations or proceedings, and that,

given the threat posed to the security of the Nation on

and after the terrorist attacks against the United States

on September 11, 2001, such records may also have a

high degree of usefulness in the conduct of intelligence

or counterintelligence activities, including analysis, to protect

against domestic and international terrorism; and

‘‘(B) microfilm or other reproductions and other records

made by insured depository institutions of checks, as well

as records kept by such institutions, of the identity of

persons maintaining or authorized to act with respect to

accounts therein, have been of particular value in proceedings

described in subparagraph (A).

‘‘(2) PURPOSE.—It is the purpose of this section to require

the maintenance of appropriate types of records by insured

depository institutions in the United States where such records

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 327

have a high degree of usefulness in criminal, tax, or regulatory

investigations or proceedings, recognizes that, given the threat

posed to the security of the Nation on and after the terrorist

attacks against the United States on September 11, 2001, such

records may also have a high degree of usefulness in the

conduct of intelligence or counterintelligence activities,

including analysis, to protect against international terrorism.’’.

(e) AMENDMENT RELATING TO THE PURPOSES OF THE BANK

SECRECY ACT.—Section 123(a) of Public Law 91–508 (12 U.S.C.

1953(a)) is amended to read as follows:

‘‘(a) REGULATIONS.—If the Secretary determines that the

maintenance of appropriate records and procedures by any uninsured

bank or uninsured institution, or any person engaging in

the business of carrying on in the United States any of the functions

referred to in subsection (b), has a high degree of usefulness in

criminal, tax, or regulatory investigations or proceedings, and that,

given the threat posed to the security of the Nation on and after

the terrorist attacks against the United States on September 11,

2001, such records may also have a high degree of usefulness

in the conduct of intelligence or counterintelligence activities,

including analysis, to protect against international terrorism, he

may by regulation require such bank, institution, or person.’’.

(f) AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT.—

The Right to Financial Privacy Act of 1978 is amended—

(1) in section 1112(a) (12 U.S.C. 3412(a)), by inserting

‘‘, or intelligence or counterintelligence activity, investigation

or analysis related to international terrorism’’ after ‘‘legitimate

law enforcement inquiry’’;

(2) in section 1114(a)(1) (12 U.S.C. 3414(a)(1))—

(A) in subparagraph (A), by striking ‘‘or’’ at the end;

(B) in subparagraph (B), by striking the period at

the end and inserting ‘‘; or’’; and

(C) by adding at the end the following:

‘‘(C) a Government authority authorized to conduct

investigations of, or intelligence or counterintelligence analyses

related to, international terrorism for the purpose

of conducting such investigations or analyses.’’; and

(3) in section 1120(a)(2) (12 U.S.C. 3420(a)(2)), by inserting

‘‘, or for a purpose authorized by section 1112(a)’’ before the

semicolon at the end.

(g) AMENDMENT TO THE FAIR CREDIT REPORTING ACT.—

(1) IN GENERAL.—The Fair Credit Reporting Act (15 U.S.C.

1681 et seq.) is amended—

(A) by redesignating the second of the 2 sections designated

as section 624 (15 U.S.C. 1681u) (relating to disclosure

to FBI for counterintelligence purposes) as section

625; and

(B) by adding at the end the following new section:

‘‘§626. Disclosures to governmental agencies for

counterterrorism purposes

‘‘(a) DISCLOSURE.—Notwithstanding section 604 or any other

provision of this title, a consumer reporting agency shall furnish

a consumer report of a consumer and all other information in

a consumer’s file to a government agency authorized to conduct

investigations of, or intelligence or counterintelligence activities

or analysis related to, international terrorism when presented with

15 USC 1681v.

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115 STAT. 328 PUBLIC LAW 107–56—OCT. 26, 2001

a written certification by such government agency that such

information is necessary for the agency’s conduct or such investigation,

activity or analysis.

‘‘(b) FORM OF CERTIFICATION.—The certification described in

subsection (a) shall be signed by a supervisory official designated

by the head of a Federal agency or an officer of a Federal agency

whose appointment to office is required to be made by the President,

by and with the advice and consent of the Senate.

‘‘(c) CONFIDENTIALITY.—No consumer reporting agency, or

officer, employee, or agent of such consumer reporting agency, shall

disclose to any person, or specify in any consumer report, that

a government agency has sought or obtained access to information

under subsection (a).

‘‘(d) RULE OF CONSTRUCTION.—Nothing in section 625 shall

be construed to limit the authority of the Director of the Federal

Bureau of Investigation under this section.

‘‘(e) SAFE HARBOR.—Notwithstanding any other provision of

this title, any consumer reporting agency or agent or employee

thereof making disclosure of consumer reports or other information

pursuant to this section in good-faith reliance upon a certification

of a governmental agency pursuant to the provisions of this section

shall not be liable to any person for such disclosure under this

subchapter, the constitution of any State, or any law or regulation

of any State or any political subdivision of any State.’’.

(2) CLERICAL AMENDMENTS.—The table of sections for the

Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended—

(A) by redesignating the second of the 2 items designated

as section 624 as section 625; and

(B) by inserting after the item relating to section 625

(as so redesignated) the following new item:

‘‘626. Disclosures to governmental agencies for counterterrorism purposes.’’.

(h) APPLICATION OF AMENDMENTS.—The amendments made by

this section shall apply with respect to reports filed or records

maintained on, before, or after the date of enactment of this Act.

SEC. 359. REPORTING OF SUSPICIOUS ACTIVITIES BY UNDERGROUND

BANKING SYSTEMS.

(a) DEFINITION FOR SUBCHAPTER.—Section 5312(a)(2)(R) of title

31, United States Code, is amended to read as follows:

‘‘(R) a licensed sender of money or any other person

who engages as a business in the transmission of funds,

including any person who engages as a business in an

informal money transfer system or any network of people

who engage as a business in facilitating the transfer of

money domestically or internationally outside of the

conventional financial institutions system;’’.

(b) MONEY TRANSMITTING BUSINESS.—Section 5330(d)(1)(A) of

title 31, United States Code, is amended by inserting before the

semicolon the following: ‘‘or any other person who engages as a

business in the transmission of funds, including any person who

engages as a business in an informal money transfer system or

any network of people who engage as a business in facilitating

the transfer of money domestically or internationally outside of

the conventional financial institutions system;’’.

(c) APPLICABILITY OF RULES.—Section 5318 of title 31, United

States Code, as amended by this title, is amended by adding at

the end the following:

12 USC 1829b

note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 329

‘‘(l) APPLICABILITY OF RULES.—Any rules promulgated pursuant

to the authority contained in section 21 of the Federal Deposit

Insurance Act (12 U.S.C. 1829b) shall apply, in addition to any

other financial institution to which such rules apply, to any person

that engages as a business in the transmission of funds, including

any person who engages as a business in an informal money transfer

system or any network of people who engage as a business in

facilitating the transfer of money domestically or internationally

outside of the conventional financial institutions system.’’.

(d) REPORT.—Not later than 1 year after the date of enactment

of this Act, the Secretary of the Treasury shall report to Congress

on the need for any additional legislation relating to persons who

engage as a business in an informal money transfer system or

any network of people who engage as a business in facilitating

the transfer of money domestically or internationally outside of

the conventional financial institutions system, counter money laundering

and regulatory controls relating to underground money movement

and banking systems, including whether the threshold for

the filing of suspicious activity reports under section 5318(g) of

title 31, United States Code should be lowered in the case of

such systems.

SEC. 360. USE OF AUTHORITY OF UNITED STATES EXECUTIVE DIRECTORS.

(a) ACTION BY THE PRESIDENT.—If the President determines

that a particular foreign country has taken or has committed to

take actions that contribute to efforts of the United States to

respond to, deter, or prevent acts of international terrorism, the

Secretary may, consistent with other applicable provisions of law,

instruct the United States Executive Director of each international

financial institution to use the voice and vote of the Executive

Director to support any loan or other utilization of the funds of

respective institutions for such country, or any public or private

entity within such country.

(b) USE OF VOICE AND VOTE.—The Secretary may instruct

the United States Executive Director of each international financial

institution to aggressively use the voice and vote of the Executive

Director to require an auditing of disbursements at such institutions

to ensure that no funds are paid to persons who commit, threaten

to commit, or support terrorism.

(c) DEFINITION.—For purposes of this section, the term ‘‘international

financial institution’’ means an institution described in

section 1701(c)(2) of the International Financial Institutions Act

(22 U.S.C. 262r(c)(2)).

SEC. 361. FINANCIAL CRIMES ENFORCEMENT NETWORK.

(a) IN GENERAL.—Subchapter I of chapter 3 of title 31, United

States Code, is amended—

(1) by redesignating section 310 as section 311; and

(2) by inserting after section 309 the following new section:

‘‘§ 310. Financial Crimes Enforcement Network

‘‘(a) IN GENERAL.—The Financial Crimes Enforcement Network

established by order of the Secretary of the Treasury (Treasury

Order Numbered 105-08, in this section referred to as ‘FinCEN’)

on April 25, 1990, shall be a bureau in the Department of the

Treasury.

‘‘(b) DIRECTOR.—

22 USC 262p–4r.

Deadline.

31 USC 5311

note.

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115 STAT. 330 PUBLIC LAW 107–56—OCT. 26, 2001

‘‘(1) APPOINTMENT.—The head of FinCEN shall be the

Director, who shall be appointed by the Secretary of the

Treasury.

‘‘(2) DUTIES AND POWERS.—The duties and powers of the

Director are as follows:

‘‘(A) Advise and make recommendations on matters

relating to financial intelligence, financial criminal activities,

and other financial activities to the Under Secretary

of the Treasury for Enforcement.

‘‘(B) Maintain a government-wide data access service,

with access, in accordance with applicable legal requirements,

to the following:

‘‘(i) Information collected by the Department of

the Treasury, including report information filed under

subchapter II of chapter 53 of this title (such as reports

on cash transactions, foreign financial agency transactions

and relationships, foreign currency transactions,

exporting and importing monetary

instruments, and suspicious activities), chapter 2 of

title I of Public Law 91–508, and section 21 of the

Federal Deposit Insurance Act.

‘‘(ii) Information regarding national and international

currency flows.

‘‘(iii) Other records and data maintained by other

Federal, State, local, and foreign agencies, including

financial and other records developed in specific cases.

‘‘(iv) Other privately and publicly available

information.

‘‘(C) Analyze and disseminate the available data in

accordance with applicable legal requirements and policies

and guidelines established by the Secretary of the Treasury

and the Under Secretary of the Treasury for Enforcement

to—

‘‘(i) identify possible criminal activity to appropriate

Federal, State, local, and foreign law enforcement

agencies;

‘‘(ii) support ongoing criminal financial investigations

and prosecutions and related proceedings,

including civil and criminal tax and forfeiture proceedings;

‘‘(iii) identify possible instances of noncompliance

with subchapter II of chapter 53 of this title, chapter

2 of title I of Public Law 91–508, and section 21 of

the Federal Deposit Insurance Act to Federal agencies

with statutory responsibility for enforcing compliance

with such provisions and other appropriate Federal

regulatory agencies;

‘‘(iv) evaluate and recommend possible uses of special

currency reporting requirements under section

5326;

‘‘(v) determine emerging trends and methods in

money laundering and other financial crimes;

‘‘(vi) support the conduct of intelligence or counterintelligence

activities, including analysis, to protect

against international terrorism; and

‘‘(vii) support government initiatives against

money laundering.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 331

‘‘(D) Establish and maintain a financial crimes communications

center to furnish law enforcement authorities

with intelligence information related to emerging or

ongoing investigations and undercover operations.

‘‘(E) Furnish research, analytical, and informational

services to financial institutions, appropriate Federal regulatory

agencies with regard to financial institutions, and

appropriate Federal, State, local, and foreign law enforcement

authorities, in accordance with policies and guidelines

established by the Secretary of the Treasury or the Under

Secretary of the Treasury for Enforcement, in the interest

of detection, prevention, and prosecution of terrorism, organized

crime, money laundering, and other financial crimes.

‘‘(F) Assist Federal, State, local, and foreign law

enforcement and regulatory authorities in combatting the

use of informal, nonbank networks and payment and barter

system mechanisms that permit the transfer of funds or

the equivalent of funds without records and without compliance

with criminal and tax laws.

‘‘(G) Provide computer and data support and data analysis

to the Secretary of the Treasury for tracking and

controlling foreign assets.

‘‘(H) Coordinate with financial intelligence units in

other countries on anti-terrorism and anti-money laundering

initiatives, and similar efforts.

‘‘(I) Administer the requirements of subchapter II of

chapter 53 of this title, chapter 2 of title I of Public Law

91–508, and section 21 of the Federal Deposit Insurance

Act, to the extent delegated such authority by the Secretary

of the Treasury.

‘‘(J) Such other duties and powers as the Secretary

of the Treasury may delegate or prescribe.

‘‘(c) REQUIREMENTS RELATING TO MAINTENANCE AND USE OF

DATA BANKS.—The Secretary of the Treasury shall establish and

maintain operating procedures with respect to the governmentwide

data access service and the financial crimes communications

center maintained by FinCEN which provide—

‘‘(1) for the coordinated and efficient transmittal of information

to, entry of information into, and withdrawal of information

from, the data maintenance system maintained by the Network,

including—

‘‘(A) the submission of reports through the Internet

or other secure network, whenever possible;

‘‘(B) the cataloguing of information in a manner that

facilitates rapid retrieval by law enforcement personnel

of meaningful data; and

‘‘(C) a procedure that provides for a prompt initial

review of suspicious activity reports and other reports,

or such other means as the Secretary may provide, to

identify information that warrants immediate action; and

‘‘(2) in accordance with section 552a of title 5 and the

Right to Financial Privacy Act of 1978, appropriate standards

and guidelines for determining—

‘‘(A) who is to be given access to the information maintained

by the Network;

‘‘(B) what limits are to be imposed on the use of such

information; and

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115 STAT. 332 PUBLIC LAW 107–56—OCT. 26, 2001

‘‘(C) how information about activities or relationships

which involve or are closely associated with the exercise

of constitutional rights is to be screened out of the data

maintenance system.

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated for FinCEN such sums as may be necessary

for fiscal years 2002, 2003, 2004, and 2005.’’.

(b) COMPLIANCE WITH REPORTING REQUIREMENTS.—The Secretary

of the Treasury shall study methods for improving compliance

with the reporting requirements established in section 5314 of

title 31, United States Code, and shall submit a report on such

study to the Congress by the end of the 6-month period beginning

on the date of enactment of this Act and each 1-year period thereafter.

The initial report shall include historical data on compliance

with such reporting requirements.

(c) CLERICAL AMENDMENT.—The table of sections for subchapter

I of chapter 3 of title 31, United States Code, is amended—

(1) by redesignating the item relating to section 310 as

section 311; and

(2) by inserting after the item relating to section 309 the

following new item:

‘‘310. Financial Crimes Enforcement Network.’’.

SEC. 362. ESTABLISHMENT OF HIGHLY SECURE NETWORK.

(a) IN GENERAL.—The Secretary shall establish a highly secure

network in the Financial Crimes Enforcement Network that—

(1) allows financial institutions to file reports required

under subchapter II or III of chapter 53 of title 31, United

States Code, chapter 2 of Public Law 91–508, or section 21

of the Federal Deposit Insurance Act through the secure network;

and

(2) provides financial institutions with alerts and other

information regarding suspicious activities that warrant immediate

and enhanced scrutiny.

(b) EXPEDITED DEVELOPMENT.—The Secretary shall take such

action as may be necessary to ensure that the secure network

required under subsection (a) is fully operational before the end

of the 9-month period beginning on the date of enactment of this

Act.

SEC. 363. INCREASE IN CIVIL AND CRIMINAL PENALTIES FOR MONEY

LAUNDERING.

(a) CIVIL PENALTIES.—Section 5321(a) of title 31, United States

Code, is amended by adding at the end the following:

‘‘(7) PENALTIES FOR INTERNATIONAL COUNTER MONEY LAUNDERING

VIOLATIONS.—The Secretary may impose a civil money

penalty in an amount equal to not less than 2 times the

amount of the transaction, but not more than $1,000,000, on

any financial institution or agency that violates any provision

of subsection (i) or (j) of section 5318 or any special measures

imposed under section 5318A.’’.

(b) CRIMINAL PENALTIES.—Section 5322 of title 31, United

States Code, is amended by adding at the end the following:

‘‘(d) A financial institution or agency that violates any provision

of subsection (i) or (j) of section 5318, or any special measures

imposed under section 5318A, or any regulation prescribed under

subsection (i) or (j) of section 5318 or section 5318A, shall be

31 USC 310 note.

31 USC 5314

note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 333

fined in an amount equal to not less than 2 times the amount

of the transaction, but not more than $1,000,000.’’.

SEC. 364. UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE

FACILITIES.

Section 11 of the Federal Reserve Act (12 U.S.C. 248) is

amended by adding at the end the following:

‘‘(q) UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE

FACILITIES.—

‘‘(1) Notwithstanding any other provision of law, to

authorize personnel to act as law enforcement officers to protect

and safeguard the premises, grounds, property, personnel,

including members of the Board, of the Board, or any Federal

reserve bank, and operations conducted by or on behalf of

the Board or a reserve bank.

‘‘(2) The Board may, subject to the regulations prescribed

under paragraph (5), delegate authority to a Federal reserve

bank to authorize personnel to act as law enforcement officers

to protect and safeguard the bank’s premises, grounds, property,

personnel, and operations conducted by or on behalf of the

bank.

‘‘(3) Law enforcement officers designated or authorized by

the Board or a reserve bank under paragraph (1) or (2) are

authorized while on duty to carry firearms and make arrests

without warrants for any offense against the United States

committed in their presence, or for any felony cognizable under

the laws of the United States committed or being committed

within the buildings and grounds of the Board or a reserve

bank if they have reasonable grounds to believe that the person

to be arrested has committed or is committing such a felony.

Such officers shall have access to law enforcement information

that may be necessary for the protection of the property or

personnel of the Board or a reserve bank.

‘‘(4) For purposes of this subsection, the term ‘law enforcement

officers’ means personnel who have successfully completed

law enforcement training and are authorized to carry firearms

and make arrests pursuant to this subsection.

‘‘(5) The law enforcement authorities provided for in this

subsection may be exercised only pursuant to regulations prescribed

by the Board and approved by the Attorney General.’’.

SEC. 365. REPORTS RELATING TO COINS AND CURRENCY RECEIVED

IN NONFINANCIAL TRADE OR BUSINESS.

(a) REPORTS REQUIRED.—Subchapter II of chapter 53 of title

31, United States Code, is amended by adding at the end the

following new section:

‘‘§ 5331. Reports relating to coins and currency received in

nonfinancial trade or business

‘‘(a) COIN AND CURRENCY RECEIPTS OF MORE THAN $10,000.—

Any person—

‘‘(1) who is engaged in a trade or business; and

‘‘(2) who, in the course of such trade or business, receives

more than $10,000 in coins or currency in 1 transaction (or

2 or more related transactions),

shall file a report described in subsection (b) with respect to such

transaction (or related transactions) with the Financial Crimes

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115 STAT. 334 PUBLIC LAW 107–56—OCT. 26, 2001

Enforcement Network at such time and in such manner as the

Secretary may, by regulation, prescribe.

‘‘(b) FORM AND MANNER OF REPORTS.—A report is described

in this subsection if such report—

‘‘(1) is in such form as the Secretary may prescribe;

‘‘(2) contains—

‘‘(A) the name and address, and such other identification

information as the Secretary may require, of the person

from whom the coins or currency was received;

‘‘(B) the amount of coins or currency received;

‘‘(C) the date and nature of the transaction; and

‘‘(D) such other information, including the identification

of the person filing the report, as the Secretary may

prescribe.

‘‘(c) EXCEPTIONS.—

‘‘(1) AMOUNTS RECEIVED BY FINANCIAL INSTITUTIONS.—Subsection

(a) shall not apply to amounts received in a transaction

reported under section 5313 and regulations prescribed under

such section.

‘‘(2) TRANSACTIONS OCCURRING OUTSIDE THE UNITED

STATES.—Except to the extent provided in regulations prescribed

by the Secretary, subsection (a) shall not apply to

any transaction if the entire transaction occurs outside the

United States.

‘‘(d) CURRENCY INCLUDES FOREIGN CURRENCY AND CERTAIN

MONETARY INSTRUMENTS.—

‘‘(1) IN GENERAL.—For purposes of this section, the term

‘currency’ includes—

‘‘(A) foreign currency; and

‘‘(B) to the extent provided in regulations prescribed

by the Secretary, any monetary instrument (whether or

not in bearer form) with a face amount of not more than

$10,000.

‘‘(2) SCOPE OF APPLICATION.—Paragraph (1)(B) shall not

apply to any check drawn on the account of the writer in

a financial institution referred to in subparagraph (A), (B),

(C), (D), (E), (F), (G), (J), (K), (R), or (S) of section 5312(a)(2).’’.

(b) PROHIBITION ON STRUCTURING TRANSACTIONS.—

(1) IN GENERAL.—Section 5324 of title 31, United States

Code, is amended—

(A) by redesignating subsections (b) and (c) as subsections

(c) and (d), respectively; and

(B) by inserting after subsection (a) the following new

subsection:

‘‘(b) DOMESTIC COIN AND CURRENCY TRANSACTIONS INVOLVING

NONFINANCIAL TRADES OR BUSINESSES.—No person shall, for the

purpose of evading the report requirements of section 5333 or

any regulation prescribed under such section—

‘‘(1) cause or attempt to cause a nonfinancial trade or

business to fail to file a report required under section 5333

or any regulation prescribed under such section;

‘‘(2) cause or attempt to cause a nonfinancial trade or

business to file a report required under section 5333 or any

regulation prescribed under such section that contains a material

omission or misstatement of fact; or

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 335

‘‘(3) structure or assist in structuring, or attempt to structure

or assist in structuring, any transaction with 1 or more

nonfinancial trades or businesses.’’.

(2) TECHNICAL AND CONFORMING AMENDMENTS.—

(A) The heading for subsection (a) of section 5324 of

title 31, United States Code, is amended by inserting

‘‘INVOLVING FINANCIAL INSTITUTIONS’’ after ‘‘TRANSACTIONS’’.

(B) Section 5317(c) of title 31, United States Code,

is amended by striking ‘‘5324(b)’’ and inserting ‘‘5324(c)’’.

(c) DEFINITION OF NONFINANCIAL TRADE OR BUSINESS.—

(1) IN GENERAL.—Section 5312(a) of title 31, United States

Code, is amended—

(A) by redesignating paragraphs (4) and (5) as paragraphs

(5) and (6), respectively; and

(B) by inserting after paragraph (3) the following new

paragraph:

‘‘(4) NONFINANCIAL TRADE OR BUSINESS.—The term ‘nonfinancial

trade or business’ means any trade or business other

than a financial institution that is subject to the reporting

requirements of section 5313 and regulations prescribed under

such section.’’.

(2) TECHNICAL AND CONFORMING AMENDMENTS.—

(A) Section 5312(a)(3)(C) of title 31, United States

Code, is amended by striking ‘‘section 5316,’’ and inserting

‘‘sections 5333 and 5316,’’.

(B) Subsections (a) through (f) of section 5318 of title

31, United States Code, and sections 5321, 5326, and 5328

of such title are each amended—

(i) by inserting ‘‘or nonfinancial trade or business’’

after ‘‘financial institution’’ each place such term

appears; and

(ii) by inserting ‘‘or nonfinancial trades or

businesses’’ after ‘‘financial institutions’’ each place

such term appears.

(c) CLERICAL AMENDMENT.—The table of sections for chapter

53 of title 31, United States Code, is amended by inserting after

the item relating to section 5332 (as added by section 112 of this

title) the following new item:

‘‘5331. Reports relating to coins and currency received in nonfinancial trade or business.’’.

(f) REGULATIONS.—Regulations which the Secretary determines

are necessary to implement this section shall be published in final

form before the end of the 6-month period beginning on the date

of enactment of this Act.

SEC. 366. EFFICIENT USE OF CURRENCY TRANSACTION REPORT

SYSTEM.

(a) FINDINGS.—The Congress finds the following:

(1) The Congress established the currency transaction

reporting requirements in 1970 because the Congress found

then that such reports have a high degree of usefulness in

criminal, tax, and regulatory investigations and proceedings

and the usefulness of such reports has only increased in the

years since the requirements were established.

(2) In 1994, in response to reports and testimony that

excess amounts of currency transaction reports were interfering

31 USC 5313

note.

Publication.

31 USC 5331

note.

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115 STAT. 336 PUBLIC LAW 107–56—OCT. 26, 2001

with effective law enforcement, the Congress reformed the currency

transaction report exemption requirements to provide—

(A) mandatory exemptions for certain reports that had

little usefulness for law enforcement, such as cash transfers

between depository institutions and cash deposits from

government agencies; and

(B) discretionary authority for the Secretary of the

Treasury to provide exemptions, subject to criteria and

guidelines established by the Secretary, for financial

institutions with regard to regular business customers that

maintain accounts at an institution into which frequent

cash deposits are made.

(3) Today there is evidence that some financial institutions

are not utilizing the exemption system, or are filing reports

even if there is an exemption in effect, with the result that

the volume of currency transaction reports is once again interfering

with effective law enforcement.

(b) STUDY AND REPORT.—

(1) STUDY REQUIRED.—The Secretary shall conduct a study

of—

(A) the possible expansion of the statutory exemption

system in effect under section 5313 of title 31, United

States Code; and

(B) methods for improving financial institution utilization

of the statutory exemption provisions as a way of

reducing the submission of currency transaction reports

that have little or no value for law enforcement purposes,

including improvements in the systems in effect at financial

institutions for regular review of the exemption procedures

used at the institution and the training of personnel in

its effective use.

(2) REPORT REQUIRED.—The Secretary of the Treasury shall

submit a report to the Congress before the end of the 1-year

period beginning on the date of enactment of this Act containing

the findings and conclusions of the Secretary with regard to

the study required under subsection (a), and such recommendations

for legislative or administrative action as the Secretary

determines to be appropriate.

Subtitle C—Currency Crimes and

Protection

SEC. 371. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED

STATES.

(a) FINDINGS.—The Congress finds the following:

(1) Effective enforcement of the currency reporting requirements

of subchapter II of chapter 53 of title 31, United States

Code, and the regulations prescribed under such subchapter,

has forced drug dealers and other criminals engaged in cashbased

businesses to avoid using traditional financial institutions.

(2) In their effort to avoid using traditional financial

institutions, drug dealers and other criminals are forced to

move large quantities of currency in bulk form to and through

the airports, border crossings, and other ports of entry where

the currency can be smuggled out of the United States and

31 USC 5332

note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 337

placed in a foreign financial institution or sold on the black

market.

(3) The transportation and smuggling of cash in bulk form

may now be the most common form of money laundering,

and the movement of large sums of cash is one of the most

reliable warning signs of drug trafficking, terrorism, money

laundering, racketeering, tax evasion and similar crimes.

(4) The intentional transportation into or out of the United

States of large amounts of currency or monetary instruments,

in a manner designed to circumvent the mandatory reporting

provisions of subchapter II of chapter 53 of title 31, United

States Code,, is the equivalent of, and creates the same harm

as, the smuggling of goods.

(5) The arrest and prosecution of bulk cash smugglers

are important parts of law enforcement’s effort to stop the

laundering of criminal proceeds, but the couriers who attempt

to smuggle the cash out of the United States are typically

low-level employees of large criminal organizations, and thus

are easily replaced. Accordingly, only the confiscation of the

smuggled bulk cash can effectively break the cycle of criminal

activity of which the laundering of the bulk cash is a critical

part.

(6) The current penalties for violations of the currency

reporting requirements are insufficient to provide a deterrent

to the laundering of criminal proceeds. In particular, in cases

where the only criminal violation under current law is a

reporting offense, the law does not adequately provide for the

confiscation of smuggled currency. In contrast, if the smuggling

of bulk cash were itself an offense, the cash could be confiscated

as the corpus delicti of the smuggling offense.

(b) PURPOSES.—The purposes of this section are—

(1) to make the act of smuggling bulk cash itself a criminal

offense;

(2) to authorize forfeiture of any cash or instruments of

the smuggling offense; and

(3) to emphasize the seriousness of the act of bulk cash

smuggling.

(c) ENACTMENT OF BULK CASH SMUGGLING OFFENSE.—Subchapter

II of chapter 53 of title 31, United States Code, is amended

by adding at the end the following:

‘‘§ 5332. Bulk cash smuggling into or out of the United States

‘‘(a) CRIMINAL OFFENSE.—

‘‘(1) IN GENERAL.—Whoever, with the intent to evade a

currency reporting requirement under section 5316, knowingly

conceals more than $10,000 in currency or other monetary

instruments on the person of such individual or in any conveyance,

article of luggage, merchandise, or other container, and

transports or transfers or attempts to transport or transfer

such currency or monetary instruments from a place within

the United States to a place outside of the United States,

or from a place outside the United States to a place within

the United States, shall be guilty of a currency smuggling

offense and subject to punishment pursuant to subsection (b).

‘‘(2) CONCEALMENT ON PERSON.—For purposes of this section,

the concealment of currency on the person of any individual

includes concealment in any article of clothing worn

31 USC 5332

note.

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115 STAT. 338 PUBLIC LAW 107–56—OCT. 26, 2001

by the individual or in any luggage, backpack, or other container

worn or carried by such individual.

‘‘(b) PENALTY.—

‘‘(1) TERM OF IMPRISONMENT.—A person convicted of a currency

smuggling offense under subsection (a), or a conspiracy

to commit such offense, shall be imprisoned for not more than

5 years.

‘‘(2) FORFEITURE.—In addition, the court, in imposing sentence

under paragraph (1), shall order that the defendant forfeit

to the United States, any property, real or personal, involved

in the offense, and any property traceable to such property,

subject to subsection (d) of this section.

‘‘(3) PROCEDURE.—The seizure, restraint, and forfeiture of

property under this section shall be governed by section 413

of the Controlled Substances Act.

‘‘(4) PERSONAL MONEY JUDGMENT.—If the property subject

to forfeiture under paragraph (2) is unavailable, and the defendant

has insufficient substitute property that may be forfeited

pursuant to section 413(p) of the Controlled Substances Act,

the court shall enter a personal money judgment against the

defendant for the amount that would be subject to forfeiture.

‘‘(c) CIVIL FORFEITURE.—

‘‘(1) IN GENERAL.—Any property involved in a violation

of subsection (a), or a conspiracy to commit such violation,

and any property traceable to such violation or conspiracy,

may be seized and, subject to subsection (d) of this section,

forfeited to the United States.

‘‘(2) PROCEDURE.—The seizure and forfeiture shall be governed

by the procedures governing civil forfeitures in money

laundering cases pursuant to section 981(a)(1)(A) of title 18,

United States Code.

‘‘(3) TREATMENT OF CERTAIN PROPERTY AS INVOLVED IN THE

OFFENSE.—For purposes of this subsection and subsection (b),

any currency or other monetary instrument that is concealed

or intended to be concealed in violation of subsection (a) or

a conspiracy to commit such violation, any article, container,

or conveyance used, or intended to be used, to conceal or

transport the currency or other monetary instrument, and any

other property used, or intended to be used, to facilitate the

offense, shall be considered property involved in the offense.’’.

(c) 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 5331, as added by this

Act, the following new item:

‘‘5332. Bulk cash smuggling into or out of the United States.’’.

SEC. 372. FORFEITURE IN CURRENCY REPORTING CASES.

(a) IN GENERAL.—Subsection (c) of section 5317 of title 31,

United States Code, is amended to read as follows:

‘‘(c) FORFEITURE.—

‘‘(1) CRIMINAL FORFEITURE.—

‘‘(A) IN GENERAL.—The court in imposing sentence for

any violation of section 5313, 5316, or 5324 of this title,

or any conspiracy to commit such violation, shall order

the defendant to forfeit all property, real or personal,

involved in the offense and any property traceable thereto.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 339

‘‘(B) PROCEDURE.—Forfeitures under this paragraph

shall be governed by the procedures established in section

413 of the Controlled Substances Act.

‘‘(2) CIVIL FORFEITURE.—Any property involved in a violation

of section 5313, 5316, or 5324 of this title, or any conspiracy

to commit any such violation, and any property traceable to

any such violation or conspiracy, may be seized and forfeited

to the United States in accordance with the procedures governing

civil forfeitures in money laundering cases pursuant

to section 981(a)(1)(A) of title 18, United States Code.’’.

(b) CONFORMING AMENDMENTS.—

(1) Section 981(a)(1)(A) of title 18, United States Code,

is amended—

(A) by striking ‘‘of section 5313(a) or 5324(a) of title

31, or’’; and

(B) by striking ‘‘However’’ and all that follows through

the end of the subparagraph.

(2) Section 982(a)(1) of title 18, United States Code, is

amended—

(A) by striking ‘‘of section 5313(a), 5316, or 5324 of

title 31, or’’; and

(B) by striking ‘‘However’’ and all that follows through

the end of the paragraph.

SEC. 373. ILLEGAL MONEY TRANSMITTING BUSINESSES.

(a) SCIENTER REQUIREMENT FOR SECTION 1960 VIOLATION.—

Section 1960 of title 18, United States Code, is amended to read

as follows:

‘‘§ 1960. Prohibition of unlicensed money transmitting

businesses

‘‘(a) Whoever knowingly conducts, controls, manages, supervises,

directs, or owns all or part of an unlicensed money transmitting

business, shall be fined in accordance with this title or imprisoned

not more than 5 years, or both.

‘‘(b) As used in this section—

‘‘(1) the term ‘unlicensed money transmitting business’

means a money transmitting business which affects interstate

or foreign commerce in any manner or degree and—

‘‘(A) is operated without an appropriate money

transmitting license in a State where such operation is

punishable as a misdemeanor or a felony under State law,

whether or not the defendant knew that the operation

was required to be licensed or that the operation was

so punishable;

‘‘(B) fails to comply with the money transmitting business

registration requirements under section 5330 of title

31, United States Code, or regulations prescribed under

such section; or

‘‘(C) otherwise involves the transportation or transmission

of funds that are known to the defendant to have

been derived from a criminal offense or are intended to

be used to be used to promote or support unlawful activity;

‘‘(2) the term ‘money transmitting’ includes transferring

funds on behalf of the public by any and all means including

but not limited to transfers within this country or to locations

abroad by wire, check, draft, facsimile, or courier; and

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115 STAT. 340 PUBLIC LAW 107–56—OCT. 26, 2001

‘‘(3) the term ‘State’ means any State of the United States,

the District of Columbia, the Northern Mariana Islands, and

any commonwealth, territory, or possession of the United

States.’’.

(b) SEIZURE OF ILLEGALLY TRANSMITTED FUNDS.—Section

981(a)(1)(A) of title 18, United States Code, is amended by striking

‘‘or 1957’’ and inserting ‘‘, 1957 or 1960’’.

(c) CLERICAL AMENDMENT.—The table of sections for chapter

95 of title 18, United States Code, is amended in the item relating

to section 1960 by striking ‘‘illegal’’ and inserting ‘‘unlicensed’’.

SEC. 374. COUNTERFEITING DOMESTIC CURRENCY AND OBLIGATIONS.

(a) COUNTERFEIT ACTS COMMITTED OUTSIDE THE UNITED

STATES.—Section 470 of title 18, United States Code, is amended—

(1) in paragraph (2), by inserting ‘‘analog, digital, or electronic

image,’’ after ‘‘plate, stone,’’; and

(2) by striking ‘‘shall be fined under this title, imprisoned

not more than 20 years, or both’’ and inserting ‘‘shall be punished

as is provided for the like offense within the United

States’’.

(b) OBLIGATIONS OR SECURITIES OF THE UNITED STATES.—Section

471 of title 18, United States Code, is amended by striking

‘‘fifteen years’’ and inserting ‘‘20 years’’.

(c) UTTERING COUNTERFEIT OBLIGATIONS OR SECURITIES.—Section

472 of title 18, United States Code, is amended by striking

‘‘fifteen years’’ and inserting ‘‘20 years’’.

(d) DEALING IN COUNTERFEIT OBLIGATIONS OR SECURITIES.—

Section 473 of title 18, United States Code, is amended by striking

‘‘ten years’’ and inserting ‘‘20 years’’.

(e) PLATES, STONES, OR ANALOG, DIGITAL, OR ELECTRONIC

IMAGES FOR COUNTERFEITING OBLIGATIONS OR SECURITIES.—

(1) IN GENERAL.—Section 474(a) of title 18, United States

Code, is amended by inserting after the second paragraph the

following new paragraph:

‘‘Whoever, with intent to defraud, makes, executes, acquires,

scans, captures, records, receives, transmits, reproduces, sells, or

has in such person’s control, custody, or possession, an analog,

digital, or electronic image of any obligation or other security of

the United States; or’’.

(2) AMENDMENT TO DEFINITION.—Section 474(b) of title 18,

United States Code, is amended by striking the first sentence

and inserting the following new sentence: ‘‘For purposes of

this section, the term ‘analog, digital, or electronic image’

includes any analog, digital, or electronic method used for the

making, execution, acquisition, scanning, capturing, recording,

retrieval, transmission, or reproduction of any obligation or

security, unless such use is authorized by the Secretary of

the Treasury.’’.

(3) TECHNICAL AND CONFORMING AMENDMENT.—The

heading for section 474 of title 18, United States Code, is

amended by striking ‘‘or stones’’ and inserting ‘‘, stones, or

analog, digital, or electronic images’’.

(4) CLERICAL AMENDMENT.—The table of sections for

chapter 25 of title 18, United States Code, is amended in

the item relating to section 474 by striking ‘‘or stones’’ and

inserting ‘‘, stones, or analog, digital, or electronic images’’.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 341

(f) TAKING IMPRESSIONS OF TOOLS USED FOR OBLIGATIONS OR

SECURITIES.—Section 476 of title 18, United States Code, is

amended—

(1) by inserting ‘‘analog, digital, or electronic image,’’ after

‘‘impression, stamp,’’; and

(2) by striking ‘‘ten years’’ and inserting ‘‘25 years’’.

(g) POSSESSING OR SELLING IMPRESSIONS OF TOOLS USED FOR

OBLIGATIONS OR SECURITIES.—Section 477 of title 18, United States

Code, is amended—

(1) in the first paragraph, by inserting ‘‘analog, digital,

or electronic image,’’ after ‘‘imprint, stamp,’’;

(2) in the second paragraph, by inserting ‘‘analog, digital,

or electronic image,’’ after ‘‘imprint, stamp,’’; and

(3) in the third paragraph, by striking ‘‘ten years’’ and

inserting ‘‘25 years’’.

(h) CONNECTING PARTS OF DIFFERENT NOTES.—Section 484 of

title 18, United States Code, is amended by striking ‘‘five years’’

and inserting ‘‘10 years’’.

(i) BONDS AND OBLIGATIONS OF CERTAIN LENDING AGENCIES.—

The first and second paragraphs of section 493 of title 18, United

States Code, are each amended by striking ‘‘five years’’ and inserting

‘‘10 years’’.

SEC. 375. COUNTERFEITING FOREIGN CURRENCY AND OBLIGATIONS.

(a) FOREIGN OBLIGATIONS OR SECURITIES.—Section 478 of title

18, United States Code, is amended by striking ‘‘five years’’ and

inserting ‘‘20 years’’.

(b) UTTERING COUNTERFEIT FOREIGN OBLIGATIONS OR SECURITIES.—

Section 479 of title 18, United States Code, is amended

by striking ‘‘three years’’ and inserting ‘‘20 years’’.

(c) POSSESSING COUNTERFEIT FOREIGN OBLIGATIONS OR SECURITIES.—

Section 480 of title 18, United States Code, is amended

by striking ‘‘one year’’ and inserting ‘‘20 years’’.

(d) PLATES, STONES, OR ANALOG, DIGITAL, OR ELECTRONIC

IMAGES FOR COUNTERFEITING FOREIGN OBLIGATIONS OR SECURITIES.—

(1) IN GENERAL.—Section 481 of title 18, United States

Code, is amended by inserting after the second paragraph the

following new paragraph:

‘‘Whoever, with intent to defraud, makes, executes, acquires,

scans, captures, records, receives, transmits, reproduces, sells, or

has in such person’s control, custody, or possession, an analog,

digital, or electronic image of any bond, certificate, obligation, or

other security of any foreign government, or of any treasury note,

bill, or promise to pay, lawfully issued by such foreign government

and intended to circulate as money; or’’.

(2) INCREASED SENTENCE.—The last paragraph of section

481 of title 18, United States Code, is amended by striking

‘‘five years’’ and inserting ‘‘25 years’’.

(3) TECHNICAL AND CONFORMING AMENDMENT.—The

heading for section 481 of title 18, United States Code, is

amended by striking ‘‘or stones’’ and inserting ‘‘, stones, or

analog, digital, or electronic images’’.

(4) CLERICAL AMENDMENT.—The table of sections for

chapter 25 of title 18, United States Code, is amended in

the item relating to section 481 by striking ‘‘or stones’’ and

inserting ‘‘, stones, or analog, digital, or electronic images’’.

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115 STAT. 342 PUBLIC LAW 107–56—OCT. 26, 2001

(e) FOREIGN BANK NOTES.—Section 482 of title 18, United

States Code, is amended by striking ‘‘two years’’ and inserting

‘‘20 years’’.

(f) UTTERING COUNTERFEIT FOREIGN BANK NOTES.—Section 483

of title 18, United States Code, is amended by striking ‘‘one year’’

and inserting ‘‘20 years’’.

SEC. 376. LAUNDERING THE PROCEEDS OF TERRORISM.

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

by inserting ‘‘or 2339B’’ after ‘‘2339A’’.

SEC. 377. EXTRATERRITORIAL JURISDICTION.

Section 1029 of title 18, United States Code, is amended by

adding at the end the following:

‘‘(h) Any person who, outside the jurisdiction of the United

States, engages in any act that, if committed within the jurisdiction

of the United States, would constitute an offense under subsection

(a) or (b) of this section, shall be subject to the fines, penalties,

imprisonment, and forfeiture provided in this title if—

‘‘(1) the offense involves an access device issued, owned,

managed, or controlled by a financial institution, account issuer,

credit card system member, or other entity within the jurisdiction

of the United States; and

‘‘(2) the person transports, delivers, conveys, transfers to

or through, or otherwise stores, secrets, or holds within the

jurisdiction of the United States, any article used to assist

in the commission of the offense or the proceeds of such offense

or property derived therefrom.’’.

TITLE IV—PROTECTING THE BORDER

Subtitle A—Protecting the Northern

Border

SEC. 401. ENSURING ADEQUATE PERSONNEL ON THE NORTHERN

BORDER.

The Attorney General is authorized to waive any FTE cap

on personnel assigned to the Immigration and Naturalization

Service on the Northern border.

SEC. 402. NORTHERN BORDER PERSONNEL.

There are authorized to be appropriated—

(1) such sums as may be necessary to triple the number

of Border Patrol personnel (from the number authorized under

current law), and the necessary personnel and facilities to

support such personnel, in each State along the Northern

Border;

(2) such sums as may be necessary to triple the number

of Customs Service personnel (from the number authorized

under current law), and the necessary personnel and facilities

to support such personnel, at ports of entry in each State

along the Northern Border;

(3) such sums as may be necessary to triple the number

of INS inspectors (from the number authorized on the date

of the enactment of this Act), and the necessary personnel

Appropriation

authorization.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 343

and facilities to support such personnel, at ports of entry in

each State along the Northern Border; and

(4) an additional $50,000,000 each to the Immigration and

Naturalization Service and the United States Customs Service

for purposes of making improvements in technology for monitoring

the Northern Border and acquiring additional equipment

at the Northern Border.

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.

(a) AMENDMENT OF THE IMMIGRATION AND NATIONALITY ACT.—

Section 105 of the Immigration and Nationality Act (8 U.S.C. 1105)

is amended—

(1) in the section heading, by inserting ‘‘; DATA EXCHANGE’’

after ‘‘SECURITY OFFICERS’’;

(2) by inserting ‘‘(a)’’ after ‘‘SEC. 105.’’;

(3) in subsection (a), by inserting ‘‘and border’’ after

‘‘internal’’ the second place it appears; and

(4) by adding at the end the following:

‘‘(b)(1) The Attorney General and the Director of the Federal

Bureau of Investigation shall provide the Department of State

and the Service access to the criminal history record information

contained in the National Crime Information Center’s Interstate

Identification Index (NCIC-III), Wanted Persons File, and to any

other files maintained by the National Crime Information Center

that may be mutually agreed upon by the Attorney General and

the agency receiving the access, for the purpose of determining

whether or not a visa applicant or applicant for admission has

a criminal history record indexed in any such file.

‘‘(2) Such access shall be provided by means of extracts of

the records for placement in the automated visa lookout or other

appropriate database, and shall be provided without any fee or

charge.

‘‘(3) The Federal Bureau of Investigation shall provide periodic

updates of the extracts at intervals mutually agreed upon with

the agency receiving the access. Upon receipt of such updated

extracts, the receiving agency shall make corresponding updates

to its database and destroy previously provided extracts.

‘‘(4) Access to an extract does not entitle the Department of

State to obtain the full content of the corresponding automated

criminal history record. To obtain the full content of a criminal

history record, the Department of State shall submit the applicant’s

fingerprints and any appropriate fingerprint processing fee authorized

by law to the Criminal Justice Information Services Division

of the Federal Bureau of Investigation.

‘‘(c) The provision of the extracts described in subsection (b)

may be reconsidered by the Attorney General and the receiving

agency upon the development and deployment of a more cost-effective

and efficient means of sharing the information.

‘‘(d) For purposes of administering this section, the Department

of State shall, prior to receiving access to NCIC data but not

later than 4 months after the date of enactment of this subsection,

promulgate final regulations—

‘‘(1) to implement procedures for the taking of fingerprints;

and

Deadline.

Regulations.

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115 STAT. 344 PUBLIC LAW 107–56—OCT. 26, 2001

‘‘(2) to establish the conditions for the use of the information

received from the Federal Bureau of Investigation, in order—

‘‘(A) to limit the redissemination of such information;

‘‘(B) to ensure that such information is used solely

to determine whether or not to issue a visa to an alien

or to admit an alien to the United States;

‘‘(C) to ensure the security, confidentiality, and destruction

of such information; and

‘‘(D) to protect any privacy rights of individuals who

are subjects of such information.’’.

(b) REPORTING REQUIREMENT.—Not later than 2 years after

the date of enactment of this Act, the Attorney General and the

Secretary of State jointly shall report to Congress on the

implementation of the amendments made by this section.

(c) TECHNOLOGY STANDARD TO CONFIRM IDENTITY.—

(1) IN GENERAL.—The Attorney General and the Secretary

of State jointly, through the National Institute of Standards

and Technology (NIST), and in consultation with the Secretary

of the Treasury and other Federal law enforcement and intelligence

agencies the Attorney General or Secretary of State

deems appropriate and in consultation with Congress, shall

within 2 years after the date of the enactment of this section,

develop and certify a technology standard that can be used

to verify the identity of persons applying for a United States

visa or such persons seeking to enter the United States pursuant

to a visa for the purposes of conducting background checks,

confirming identity, and ensuring that a person has not received

a visa under a different name or such person seeking to enter

the United States pursuant to a visa.

(2) INTEGRATED.—The technology standard developed

pursuant to paragraph (1), shall be the technological basis

for a cross-agency, cross-platform electronic system that is a

cost-effective, efficient, fully integrated means to share law

enforcement and intelligence information necessary to confirm

the identity of such persons applying for a United States visa

or such person seeking to enter the United States pursuant

to a visa.

(3) ACCESSIBLE.—The electronic system described in paragraph

(2), once implemented, shall be readily and easily accessible

to—

(A) all consular officers responsible for the issuance

of visas;

(B) all Federal inspection agents at all United States

border inspection points; and

(C) all law enforcement and intelligence officers as

determined by regulation to be responsible for investigation

or identification of aliens admitted to the United States

pursuant to a visa.

(4) REPORT.—Not later than 18 months after the date of

the enactment of this Act, and every 2 years thereafter, the

Attorney General and the Secretary of State shall jointly, in

consultation with the Secretary of Treasury, report to Congress

describing the development, implementation, efficacy, and privacy

implications of the technology standard and electronic

database system described in this subsection.

(5) FUNDING.—There is authorized to be appropriated to

the Secretary of State, the Attorney General, and the Director

Deadline.

Deadline.

8 USC 1379.

Deadline.

8 USC 1105 note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 345

of the National Institute of Standards and Technology such

sums as may be necessary to carry out the provisions of this

subsection.

(d) STATUTORY CONSTRUCTION.—Nothing in this section, or in

any other law, shall be construed to limit the authority of the

Attorney General or the Director of the Federal Bureau of Investigation

to provide access to the criminal history record information

contained in the National Crime Information Center’s (NCIC) Interstate

Identification Index (NCIC-III), or to any other information

maintained by the NCIC, to any Federal agency or officer authorized

to enforce or administer the immigration laws of the United States,

for the purpose of such enforcement or administration, upon terms

that are consistent with the National Crime Prevention and Privacy

Compact Act of 1998 (subtitle A of title II of Public Law 105–

251; 42 U.S.C. 14611–16) and section 552a of title 5, United States

Code.

SEC. 404. LIMITED AUTHORITY TO PAY OVERTIME.

The matter under the headings ‘‘Immigration And Naturalization

Service: Salaries and Expenses, Enforcement And Border

Affairs’’ and ‘‘Immigration And Naturalization Service: Salaries and

Expenses, Citizenship And Benefits, Immigration And Program

Direction’’ in the Department of Justice Appropriations Act, 2001

(as enacted into law by Appendix B (H.R. 5548) of Public Law

106–553 (114 Stat. 2762A–58 to 2762A–59)) is amended by striking

the following each place it occurs: ‘‘Provided, That none of the

funds available to the Immigration and Naturalization Service shall

be available to pay any employee overtime pay in an amount

in excess of $30,000 during the calendar year beginning January

1, 2001:’’.

SEC. 405. REPORT ON THE INTEGRATED AUTOMATED FINGERPRINT

IDENTIFICATION SYSTEM FOR PORTS OF ENTRY AND

OVERSEAS CONSULAR POSTS.

(a) IN GENERAL.—The Attorney General, in consultation with

the appropriate heads of other Federal agencies, including the Secretary

of State, Secretary of the Treasury, and the Secretary of

Transportation, shall report to Congress on the feasibility of

enhancing the Integrated Automated Fingerprint Identification

System (IAFIS) of the Federal Bureau of Investigation and other

identification systems in order to better identify a person who

holds a foreign passport or a visa and may be wanted in connection

with a criminal investigation in the United States or abroad, before

the issuance of a visa to that person or the entry or exit from

the United States by that person.

(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated not less than $2,000,000 to carry out this section.

Subtitle B—Enhanced Immigration

Provisions

SEC. 411. DEFINITIONS RELATING TO TERRORISM.

(a) GROUNDS OF INADMISSIBILITY.—Section 212(a)(3) of the

Immigration and Nationality Act (8 U.S.C. 1182(a)(3)) is amended—

(1) in subparagraph (B)—

(A) in clause (i)—

8 USC 1379 note.

8 USC 1105 note.

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115 STAT. 346 PUBLIC LAW 107–56—OCT. 26, 2001

(i) by amending subclause (IV) to read as follows:

‘‘(IV) is a representative (as defined in clause

(v)) of—

‘‘(aa) a foreign terrorist organization, as

designated by the Secretary of State under

section 219, or

‘‘(bb) a political, social or other similar

group whose public endorsement of acts of terrorist

activity the Secretary of State has determined

undermines United States efforts to

reduce or eliminate terrorist activities,’’;

(ii) in subclause (V), by inserting ‘‘or’’ after ‘‘section

219,’’; and

(iii) by adding at the end the following new subclauses:

‘‘(VI) has used the alien’s position of prominence

within any country to endorse or espouse

terrorist activity, or to persuade others to support

terrorist activity or a terrorist organization, in a

way that the Secretary of State has determined

undermines United States efforts to reduce or

eliminate terrorist activities, or

‘‘(VII) is the spouse or child of an alien who

is inadmissible under this section, if the activity

causing the alien to be found inadmissible occurred

within the last 5 years,’’;

(B) by redesignating clauses (ii), (iii), and (iv) as clauses

(iii), (iv), and (v), respectively;

(C) in clause (i)(II), by striking ‘‘clause (iii)’’ and

inserting ‘‘clause (iv)’’;

(D) by inserting after clause (i) the following:

‘‘(ii) EXCEPTION.—Subclause (VII) of clause (i) does

not apply to a spouse or child—

‘‘(I) who did not know or should not reasonably

have known of the activity causing the alien to

be found inadmissible under this section; or

‘‘(II) whom the consular officer or Attorney

General has reasonable grounds to believe has

renounced the activity causing the alien to be

found inadmissible under this section.’’;

(E) in clause (iii) (as redesignated by subparagraph

(B))—

(i) by inserting ‘‘it had been’’ before ‘‘committed

in the United States’’; and

(ii) in subclause (V)(b), by striking ‘‘or firearm’’

and inserting ‘‘, firearm, or other weapon or dangerous

device’’;

(F) by amending clause (iv) (as redesignated by

subparagraph (B)) to read as follows:

‘‘(iv) ENGAGE IN TERRORIST ACTIVITY DEFINED.—

As used in this chapter, the term ‘engage in terrorist

activity’ means, in an individual capacity or as a

member of an organization—

‘‘(I) to commit or to incite to commit, under

circumstances indicating an intention to cause

death or serious bodily injury, a terrorist activity;

‘‘(II) to prepare or plan a terrorist activity;

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 347

‘‘(III) to gather information on potential targets

for terrorist activity;

‘‘(IV) to solicit funds or other things of value

for—

‘‘(aa) a terrorist activity;

‘‘(bb) a terrorist organization described in

clause (vi)(I) or (vi)(II); or

‘‘(cc) a terrorist organization described in

clause (vi)(III), unless the solicitor can demonstrate

that he did not know, and should

not reasonably have known, that the solicitation

would further the organization’s terrorist

activity;

‘‘(V) to solicit any individual—

‘‘(aa) to engage in conduct otherwise

described in this clause;

‘‘(bb) for membership in a terrorist

organization described in clause (vi)(I) or

(vi)(II); or

‘‘(cc) for membership in a terrorist

organization described in clause (vi)(III),

unless the solicitor can demonstrate that he

did not know, and should not reasonably have

known, that the solicitation would further the

organization’s terrorist activity; or

‘‘(VI) to commit an act that the actor knows,

or reasonably should know, affords material support,

including a safe house, transportation,

communications, funds, transfer of funds or other

material financial benefit, false documentation or

identification, weapons (including chemical,

biological, or radiological weapons), explosives, or

training—

‘‘(aa) for the commission of a terrorist

activity;

‘‘(bb) to any individual who the actor

knows, or reasonably should know, has committed

or plans to commit a terrorist activity;

‘‘(cc) to a terrorist organization described

in clause (vi)(I) or (vi)(II); or

‘‘(dd) to a terrorist organization described

in clause (vi)(III), unless the actor can demonstrate

that he did not know, and should

not reasonably have known, that the act would

further the organization’s terrorist activity.

This clause shall not apply to any material support

the alien afforded to an organization or individual

that has committed terrorist activity, if the Secretary

of State, after consultation with the

Attorney General, or the Attorney General, after

consultation with the Secretary of State, concludes

in his sole unreviewable discretion, that this clause

should not apply.’’; and

(G) by adding at the end the following new clause:

‘‘(vi) TERRORIST ORGANIZATION DEFINED.—As used

in clause (i)(VI) and clause (iv), the term ‘terrorist

organization’ means an organization—

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115 STAT. 348 PUBLIC LAW 107–56—OCT. 26, 2001

‘‘(I) designated under section 219;

‘‘(II) otherwise designated, upon publication

in the Federal Register, by the Secretary of State

in consultation with or upon the request of the

Attorney General, as a terrorist organization, after

finding that the organization engages in the activities

described in subclause (I), (II), or (III) of clause

(iv), or that the organization provides material

support to further terrorist activity; or

‘‘(III) that is a group of two or more individuals,

whether organized or not, which engages in

the activities described in subclause (I), (II), or

(III) of clause (iv).’’; and

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

‘‘(F) ASSOCIATION WITH TERRORIST ORGANIZATIONS.—

Any alien who the Secretary of State, after consultation

with the Attorney General, or the Attorney General, after

consultation with the Secretary of State, determines has

been associated with a terrorist organization and intends

while in the United States to engage solely, principally,

or incidentally in activities that could endanger the welfare,

safety, or security of the United States is inadmissible.’’.

(b) CONFORMING AMENDMENTS.—

(1) Section 237(a)(4)(B) of the Immigration and Nationality

Act (8 U.S.C. 1227(a)(4)(B)) is amended by striking ‘‘section

212(a)(3)(B)(iii)’’ and inserting ‘‘section 212(a)(3)(B)(iv)’’.

(2) Section 208(b)(2)(A)(v) of the Immigration and Nationality

Act (8 U.S.C. 1158(b)(2)(A)(v)) is amended by striking

‘‘or (IV)’’ and inserting ‘‘(IV), or (VI)’’.

(c) RETROACTIVE APPLICATION OF AMENDMENTS.—

(1) IN GENERAL.—Except as otherwise provided in this subsection,

the amendments made by this section shall take effect

on the date of the enactment of this Act and shall apply

to—

(A) actions taken by an alien before, on, or after such

date; and

(B) all aliens, without regard to the date of entry

or attempted entry into the United States—

(i) in removal proceedings on or after such date

(except for proceedings in which there has been a final

administrative decision before such date); or

(ii) seeking admission to the United States on or

after such date.

(2) SPECIAL RULE FOR ALIENS IN EXCLUSION OR DEPORTATION

PROCEEDINGS.—Notwithstanding any other provision of law,

sections 212(a)(3)(B) and 237(a)(4)(B) of the Immigration and

Nationality Act, as amended by this Act, shall apply to all

aliens in exclusion or deportation proceedings on or after the

date of the enactment of this Act (except for proceedings in

which there has been a final administrative decision before

such date) as if such proceedings were removal proceedings.

(3) SPECIAL RULE FOR SECTION 219 ORGANIZATIONS AND

ORGANIZATIONS DESIGNATED UNDER SECTION

212(a)(3)(B)(vi)(II).—

(A) IN GENERAL.—Notwithstanding paragraphs (1) and

(2), no alien shall be considered inadmissible under section

212(a)(3) of the Immigration and Nationality Act (8 U.S.C.

8 USC 1182 note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 349

1182(a)(3)), or deportable under section 237(a)(4)(B) of such

Act (8 U.S.C. 1227(a)(4)(B)), by reason of the amendments

made by subsection (a), on the ground that the alien

engaged in a terrorist activity described in subclause

(IV)(bb), (V)(bb), or (VI)(cc) of section 212(a)(3)(B)(iv) of

such Act (as so amended) with respect to a group at any

time when the group was not a terrorist organization designated

by the Secretary of State under section 219 of

such Act (8 U.S.C. 1189) or otherwise designated under

section 212(a)(3)(B)(vi)(II) of such Act (as so amended).

(B) STATUTORY CONSTRUCTION.—Subparagraph (A)

shall not be construed to prevent an alien from being

considered inadmissible or deportable for having engaged

in a terrorist activity—

(i) described in subclause (IV)(bb), (V)(bb), or

(VI)(cc) of section 212(a)(3)(B)(iv) of such Act (as so

amended) with respect to a terrorist organization at

any time when such organization was designated by

the Secretary of State under section 219 of such Act

or otherwise designated under section

212(a)(3)(B)(vi)(II) of such Act (as so amended); or

(ii) described in subclause (IV)(cc), (V)(cc), or

(VI)(dd) of section 212(a)(3)(B)(iv) of such Act (as so

amended) with respect to a terrorist organization

described in section 212(a)(3)(B)(vi)(III) of such Act

(as so amended).

(4) EXCEPTION.—The Secretary of State, in consultation

with the Attorney General, may determine that the amendments

made by this section shall not apply with respect to

actions by an alien taken outside the United States before

the date of the enactment of this Act upon the recommendation

of a consular officer who has concluded that there is not reasonable

ground to believe that the alien knew or reasonably should

have known that the actions would further a terrorist activity.

(c) DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS.—Section

219(a) of the Immigration and Nationality Act (8 U.S.C.

1189(a)) is amended—

(1) in paragraph (1)(B), by inserting ‘‘or terrorism (as

defined in section 140(d)(2) of the Foreign Relations Authorization

Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f(d)(2)),

or retains the capability and intent to engage in terrorist

activity or terrorism’’ after ‘‘212(a)(3)(B)’’;

(2) in paragraph (1)(C), by inserting ‘‘or terrorism’’ after

‘‘terrorist activity’’;

(3) by amending paragraph (2)(A) to read as follows:

‘‘(A) NOTICE.—

‘‘(i) TO CONGRESSIONAL LEADERS.—Seven days

before making a designation under this subsection,

the Secretary shall, by classified communication, notify

the Speaker and Minority Leader of the House of Representatives,

the President pro tempore, Majority

Leader, and Minority Leader of the Senate, and the

members of the relevant committees of the House of

Representatives and the Senate, in writing, of the

Classified

information.

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115 STAT. 350 PUBLIC LAW 107–56—OCT. 26, 2001

intent to designate an organization under this subsection,

together with the findings made under paragraph

(1) with respect to that organization, and the

factual basis therefor.

‘‘(ii) PUBLICATION IN FEDERAL REGISTER.—The Secretary

shall publish the designation in the Federal

Register seven days after providing the notification

under clause (i).’’;

(4) in paragraph (2)(B)(i), by striking ‘‘subparagraph (A)’’

and inserting ‘‘subparagraph (A)(ii)’’;

(5) in paragraph (2)(C), by striking ‘‘paragraph (2)’’ and

inserting ‘‘paragraph (2)(A)(i)’’;

(6) in paragraph (3)(B), by striking ‘‘subsection (c)’’ and

inserting ‘‘subsection (b)’’;

(7) in paragraph (4)(B), by inserting after the first sentence

the following: ‘‘The Secretary also may redesignate such

organization at the end of any 2-year redesignation period

(but not sooner than 60 days prior to the termination of such

period) for an additional 2-year period upon a finding that

the relevant circumstances described in paragraph (1) still exist.

Any redesignation shall be effective immediately following the

end of the prior 2-year designation or redesignation period

unless a different effective date is provided in such redesignation.’’;

(8) in paragraph (6)(A)—

(A) by inserting ‘‘or a redesignation made under paragraph

(4)(B)’’ after ‘‘paragraph (1)’’;

(B) in clause (i)—

(i) by inserting ‘‘or redesignation’’ after ‘‘designation’’

the first place it appears; and

(ii) by striking ‘‘of the designation’’; and

(C) in clause (ii), by striking ‘‘of the designation’’;

(9) in paragraph (6)(B)—

(A) by striking ‘‘through (4)’’ and inserting ‘‘and (3)’’;

and

(B) by inserting at the end the following new sentence:

‘‘Any revocation shall take effect on the date specified in

the revocation or upon publication in the Federal Register

if no effective date is specified.’’;

(10) in paragraph (7), by inserting ‘‘, or the revocation

of a redesignation under paragraph (6),’’ after ‘‘paragraph (5)

or (6)’’; and

(11) in paragraph (8)—

(A) by striking ‘‘paragraph (1)(B)’’ and inserting ‘‘paragraph

(2)(B), or if a redesignation under this subsection

has become effective under paragraph (4)(B)’’;

(B) by inserting ‘‘or an alien in a removal proceeding’’

after ‘‘criminal action’’; and

(C) by inserting ‘‘or redesignation’’ before ‘‘as a

defense’’.

SEC. 412. MANDATORY DETENTION OF SUSPECTED TERRORISTS;

HABEAS CORPUS; JUDICIAL REVIEW.

(a) IN GENERAL.—The Immigration and Nationality Act (8

U.S.C. 1101 et seq.) is amended by inserting after section 236

the following:

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 351

‘‘MANDATORY DETENTION OF SUSPECTED TERRORISTS; HABEAS

CORPUS; JUDICIAL REVIEW

‘‘SEC. 236A. (a) DETENTION OF TERRORIST ALIENS.—

‘‘(1) CUSTODY.—The Attorney General shall take into custody

any alien who is certified under paragraph (3).

‘‘(2) RELEASE.—Except as provided in paragraphs (5) and

(6), the Attorney General shall maintain custody of such an

alien until the alien is removed from the United States. Except

as provided in paragraph (6), such custody shall be maintained

irrespective of any relief from removal for which the alien

may be eligible, or any relief from removal granted the alien,

until the Attorney General determines that the alien is no

longer an alien who may be certified under paragraph (3).

If the alien is finally determined not to be removable, detention

pursuant to this subsection shall terminate.

‘‘(3) CERTIFICATION.—The Attorney General may certify an

alien under this paragraph if the Attorney General has reasonable

grounds to believe that the alien—

‘‘(A) is described in section 212(a)(3)(A)(i),

212(a)(3)(A)(iii), 212(a)(3)(B), 237(a)(4)(A)(i),

237(a)(4)(A)(iii), or 237(a)(4)(B); or

‘‘(B) is engaged in any other activity that endangers

the national security of the United States.

‘‘(4) NONDELEGATION.—The Attorney General may delegate

the authority provided under paragraph (3) only to the Deputy

Attorney General. The Deputy Attorney General may not delegate

such authority.

‘‘(5) COMMENCEMENT OF PROCEEDINGS.—The Attorney General

shall place an alien detained under paragraph (1) in

removal proceedings, or shall charge the alien with a criminal

offense, not later than 7 days after the commencement of such

detention. If the requirement of the preceding sentence is not

satisfied, the Attorney General shall release the alien.

‘‘(6) LIMITATION ON INDEFINITE DETENTION.—An alien

detained solely under paragraph (1) who has not been removed

under section 241(a)(1)(A), and whose removal is unlikely in

the reasonably foreseeable future, may be detained for additional

periods of up to six months only if the release of the

alien will threaten the national security of the United States

or the safety of the community or any person.

‘‘(7) REVIEW OF CERTIFICATION.—The Attorney General

shall review the certification made under paragraph (3) every

6 months. If the Attorney General determines, in the Attorney

General’s discretion, that the certification should be revoked,

the alien may be released on such conditions as the Attorney

General deems appropriate, unless such release is otherwise

prohibited by law. The alien may request each 6 months in

writing that the Attorney General reconsider the certification

and may submit documents or other evidence in support of

that request.

‘‘(b) HABEAS CORPUS AND JUDICIAL REVIEW.—

‘‘(1) IN GENERAL.—Judicial review of any action or decision

relating to this section (including judicial review of the merits

of a determination made under subsection (a)(3) or (a)(6)) is

available exclusively in habeas corpus proceedings consistent

Deadline.

8 USC 1226a.

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115 STAT. 352 PUBLIC LAW 107–56—OCT. 26, 2001

with this subsection. Except as provided in the preceding sentence,

no court shall have jurisdiction to review, by habeas

corpus petition or otherwise, any such action or decision.

‘‘(2) APPLICATION.—

‘‘(A) IN GENERAL.—Notwithstanding any other provision

of law, including section 2241(a) of title 28, United

States Code, habeas corpus proceedings described in paragraph

(1) may be initiated only by an application filed

with—

‘‘(i) the Supreme Court;

‘‘(ii) any justice of the Supreme Court;

‘‘(iii) any circuit judge of the United States Court

of Appeals for the District of Columbia Circuit; or

‘‘(iv) any district court otherwise having jurisdiction

to entertain it.

‘‘(B) APPLICATION TRANSFER.—Section 2241(b) of title

28, United States Code, shall apply to an application for

a writ of habeas corpus described in subparagraph (A).

‘‘(3) APPEALS.—Notwithstanding any other provision of law,

including section 2253 of title 28, in habeas corpus proceedings

described in paragraph (1) before a circuit or district judge,

the final order shall be subject to review, on appeal, by the

United States Court of Appeals for the District of Columbia

Circuit. There shall be no right of appeal in such proceedings

to any other circuit court of appeals.

‘‘(4) RULE OF DECISION.—The law applied by the Supreme

Court and the United States Court of Appeals for the District

of Columbia Circuit shall be regarded as the rule of decision

in habeas corpus proceedings described in paragraph (1).

‘‘(c) STATUTORY CONSTRUCTION.—The provisions of this section

shall not be applicable to any other provision of this Act.’’.

(b) CLERICAL AMENDMENT.—The table of contents of the

Immigration and Nationality Act is amended by inserting after

the item relating to section 236 the following:

‘‘Sec. 236A. Mandatory detention of suspected terrorist; habeas corpus; judicial review.’’.

(c) REPORTS.—Not later than 6 months after the date of the

enactment of this Act, and every 6 months thereafter, the Attorney

General shall submit a report to the Committee on the Judiciary

of the House of Representatives and the Committee on the Judiciary

of the Senate, with respect to the reporting period, on—

(1) the number of aliens certified under section 236A(a)(3)

of the Immigration and Nationality Act, as added by subsection

(a);

(2) the grounds for such certifications;

(3) the nationalities of the aliens so certified;

(4) the length of the detention for each alien so certified;

and

(5) the number of aliens so certified who—

(A) were granted any form of relief from removal;

(B) were removed;

(C) the Attorney General has determined are no longer

aliens who may be so certified; or

(D) were released from detention.

Deadline.

8 USC 1226a

note.

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PUBLIC LAW 107–56—OCT. 26, 2001 115 STAT. 353

SEC. 413. MULTILATERAL COOPERATION AGAINST TERRORISTS.

Section 222(f) of the Immigration and Nationality Act (8 U.S.C.

1202(f)) is amended—

(1) by striking ‘‘except that in the discretion of’’ and

inserting the following: ‘‘except that—

‘‘(1) in the discretion of’’; and

(2) by adding at the end the following:

‘‘(2) the Secretary of State, in the Secretary’s discretion

and on the basis of reciprocity, may provide to a foreign government

information in the Department of State’s computerized

visa lookout database and, when necessary and appropriate,

other records covered by this section related to information

in the database—

‘‘(A) with regard to individual aliens, at any time on

a case-by-case basis for the purpose of preventing, investigating,

or punishing acts that would constitute a crime

in the United States, including, but not limited to, terrorism

or trafficking in controlled substances, persons, or

illicit weapons; or

‘‘(B) with regard to any or all aliens in the database,

pursuant to such conditions as the Secretary of State shall

establish in an agreement with the foreign government

in which that government agrees to use such information

and records for the purposes described in subparagraph

(A) or to deny visas to persons who would be inadmissible

to the United States.’’.

SEC. 414. VISA INTEGRITY AND SECURITY.

(a) SENSE OF CONGRESS REGARDING THE NEED TO EXPEDITE

IMPLEMENTATION OF INTEGRATED ENTRY AND EXIT DATA SYSTEM.—

(1) SENSE OF CONGRESS.—In light of the terrorist attacks

perpetrated against the United States on September 11, 2001,

it is the sense of the Congress that—

(A) the Attorney General, in consultation with the

Secretary of State, should fully implement the integrated

entry and exit data system for airports, seaports, and land

border ports of entry, as specified in section 110 of the

Illegal Immigration Reform and Immigrant Responsibility

Act of 1996 (8 U.S.C. 1365a), with all deliberate speed

and as expeditiously as practicable; and

(B) the Attorney General, in consultation with the

Secretary of State, the Secretary of Commerce, the Secretary

of the Treasury, and the Office of Homeland Security,

should immediately begin establishing the Integrated

Entry and Exit Data System Task Force, as described

in section 3 of the Immigration and Naturalization Service

Data Management Improvement Act of 2000 (Public Law

106–215).

(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated such sums as may be necessary to

fully implement the system described in paragraph (1)(A).

(b) DEVELOPMENT OF THE SYSTEM.—In the development of the

integrated entry and exit data system under section 110 of the

Illegal Immigration Reform and Immigrant Responsibility Act of

1996 (8 U.S.C. 1365a), the Attorney General and the Secretary

of State shall particularly focus on—

(1) the utilization of biometric technology; and

8 USC 1365a

note.

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115 STAT. 354 PUBLIC LAW 107–56—OCT. 26, 2001

(2) the development of tamper-resistant documents readable

at ports of entry.

(c) INTERFACE WITH LAW ENFORCEMENT DATABASES.—The

entry and exit data system described in this section shall be able

to interface with law enforcement databases for use by Federal

law enforcement to identify and detain individuals who pose a

threat to the national security of the United States.

(d) REPORT ON SCREENING INFORMATION.—Not later than 12

months after the date of enactment of this Act, the Office of Homeland

Security shall submit a report to Congress on the information

that is needed from any United States agency to effectively screen

visa applicants and applicants for admission to the United States

to identify those affiliated with terrorist organizations or those

that pose any threat to the safety or security of the United States,

including the type of information currently received by United

States agencies and the regularity with which such information

is transmitted to the Secretary of State and the Attorney General.

SEC. 415. PARTICIPATION OF OFFICE OF HOMELAND SECURITY ON

ENTRY-EXIT TASK FORCE.

Section 3 of the Immigration and Naturalization Service Data

Management Improvement Act of 2000 (Public Law 106–215) is

amended by striking ‘‘and the Secretary of the Treasury,’’ and

inserting ‘‘the Secretary of the Treasury, and the Office of Homeland

Security’’.

SEC. 416. FOREIGN STUDENT MONITORING PROGRAM.

(a) FULL IMPLEMENTATION AND EXPANSION OF FOREIGN STUDENT

VISA MONITORING PROGRAM REQUIRED.—The Attorney General,

in consultation with the Secretary of State, shall fully implement

and expand the program established by section 641(a) of

the Illegal Immigration Reform and Immigrant Responsibility Act

of 1996 (8 U.S.C. 1372(a)).

(b) INTEGRATION WITH PORT OF ENTRY INFORMATION.—For each

alien with respect to whom information is collected under section

641 of the Illegal Immigration Reform and Immigrant Responsibility