article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Money Laundering Prevention Act of 1999''. SEC. 2. FINDINGS AND PURPOSES. (a) Findings.--The Congress makes the following findings: (1) Money laundering is a serious problem: between $100,000,000,000 and $300,000,000,000 in United States currency is ``laundered'' each year and the total dollar amount involved in international money laundering likely exceeds $500,000,000,000. (2) Money laundering is critical to the survival of the illicit drug trade, which has annual worldwide revenues of more than $400,000,000,000, more than 8 percent of the total value of international trade. (3) United States financial institutions are a critical link in our efforts to combat money laundering. (4) Highly secretive and loosely regulated private banking services that cater to wealthy clients are particularly vulnerable to use by drug traffickers for money laundering purposes, and it is estimated that private banking services have banking assets ranging from $200,000,000,000 to $300,000,000,000. (b) Purposes.--The purposes of this Act are as follows: (1) To ensure that United States financial institutions make combating money laundering the highest of priorities. (2) To close the existing gaps in law that allow money laundering to flourish in the private banking system. (3) To designate foreign high-intensity money laundering areas for the purpose of targeting areas of concentrated money laundering activities. (4) To require the Board of Governors of the Federal Reserve System to take into account money laundering activities in the consideration of applications under section 3 of the Bank Holding Company Act of 1956. SEC. 3. REPORT ON PRIVATE BANKING ACTIVITIES. (a) In General.--Before the end of the 1-year period beginning on the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Federal banking agencies (as defined in section 3(z) of the Federal Deposit Insurance Act) shall submit a report on private banking activities in the United States to the Committee on Banking and Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. (b) Contents of Report.--The report required under subsection (a) shall include information on the following: (1) The nature and extent of private banking activities in the United States. (2) Regulatory efforts to monitor private banking activities and ensure that such activities are conducted in compliance with subchapter II of chapter 53 of title 31, United States Code, and section 21 of the Federal Deposit Insurance Act. (3) The policies and procedures of depository institutions that are designed to ensure compliance by such institutions with the requirements of subchapter II of chapter 53 of title 31, United States Code, and section 21 of the Federal Deposit Insurance Act. (c) Private Banking Activities Defined.--For purposes of this section, the term ``private banking activities'' includes, with respect to a financial institution, personalized services, such as money management, financial advice, and investment services, that are provided to individuals with a high net worth and are not provided generally to all clients of the financial institution. SEC. 4. REQUIRE THAT ANTI-MONEY LAUNDERING PROGRAMS PROHIBIT MONEY LAUNDERING THROUGH CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS BY REQUIRING THE AVAILABILITY OF CERTAIN ACCOUNT INFORMATION. Section 5318(h) of title 31, United States Code, is amended by adding at the end the following new paragraph: ``(3) Availability of certain account information.--The Secretary of the Treasury shall prescribe regulations under this subsection which require financial institutions to maintain all accounts in such a way as to ensure that-- ``(A) the name of the account holder and the number of the account are associated with all account activity of the account holder; and ``(B) all such information is available for purposes of account supervision and law enforcement.'' SEC. 5. DESIGNATION OF FOREIGN HIGH-INTENSITY MONEY LAUNDERING AREAS. (a) In General.--Subchapter III of chapter 53 of title 31, United States Code (as added by the Money Laundering and Financial Crimes Strategy Act of 1998) is amended by adding at the end the following new part: ``Part 3--International Money Laundering and Related Financial Crimes ``Sec. 5361. Designation of foreign high-intensity money laundering areas ``(a) In General.--The Secretary, in consultation with the Federal banking agencies, shall develop criteria for identifying areas outside the United States in which money laundering activities are concentrated. ``(b) Designation.--The Secretary shall designate as a high- intensity money laundering area any foreign country in which there is an area identified, in accordance with the criteria developed pursuant to subsection (a), as an area in which money laundering activities are concentrated. ``(c) Notice and Warning.--Upon the designation, under subsection (b), of a country as a high-intensity money laundering area, the Secretary shall provide-- ``(1) a written notice to each insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act), and each depository institution holding company (as defined in such section 3) that controls an insured depository institution, of the identity of the country designated; and ``(2) a written warning that there is a concentration of money laundering activity in such country.''. (b) Clerical Amendment.--The table of subchapters for chapter 53 of title 31, United States Code, is amended by adding at the end the following item: ``Part 3--International Money Laundering and Related Financial Crimes ``5361. Designation of foreign high-intensity money laundering areas.''. SEC. 6. DOUBLE THE CRIMINAL PENALTIES FOR VIOLATIONS INVOLVING HIGH- INTENSITY MONEY LAUNDERING AREAS. (a) In General.--Section 5322 of title 31, United States Code, is amended by adding at the end the following new subsection: ``(d) Doubled Penalty.--The court may double the sentence of fine or imprisonment, or both, that could otherwise be imposed on any person for a violation described in subsection (a) or (b) if the person commits the violation with respect to a transaction involving a person in, a relationship maintained for a person in, or a transport of a monetary instrument involving a foreign country, knowing that a designation of the foreign country as a high-intensity money laundering area under section 5361 was in effect at the time of the violation.''. (b) Effective Date.--The amendment made by subsection (a) shall apply with respect to any violation committed on or after the date of the enactment of this Act. SEC. 7. AMENDMENT TO SECTION 3 OF THE BANK HOLDING COMPANY ACT OF 1956. (a) 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-- ``(A) the Board shall take into consideration the effectiveness of the company or companies in combating and preventing money laundering activities, including in overseas branches; ``(B) the Board shall not consider any application under this section involving any company which is the subject of any-- ``(i) pending Federal investigation of possible money laundering or other related financial crimes; or ``(ii) pending Federal prosecution for money laundering or other related financial crimes, until such investigation or prosecution is completed and a finding is made, except that this subparagraph shall not apply if the period for such completion and the making of findings exceeds 3 years; and ``(C) the Board shall disapprove any application under this section involving any company which has been found criminally or civilly liable for money laundering or any related financial crime during the 5-year period preceding the consideration of such application by the Board.''. (b) Scope of Application.--The amendment made by subsection (a) 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, 1997, which has not been approved by the Board before the date of the enactment of this Act.
summary: Money Laundering Prevention Act of 1999 - Directs the Secretary of the Treasury to submit a report to specified congressional committees on private banking activities in the United States. (Sec. 4) Amends Federal banking law to direct the Secretary to prescribe regulations which require financial institutions to maintain all accounts in such a way as to ensure that: (1) the the name of the account holder and the number of the account are associated with all account activity of such holder; and (2) all such information is available for purposes of account supervision and law enforcement. (Sec. 5) Directs the Secretary to develop criteria for identifying areas outside the United States in which money laundering activities are concentrated, designate such areas as high-intensity money laundering areas, provide a written notice to each insured depository institution and each depository institution holding company that controls an insured depository institution of the identity of the country designated, and provide a written warning that there is a concentration of money laundering activity in such country. (Sec. 6) Authorizes the court to double the sentence of fine, imprisonment, or both, that could be otherwise imposed if the person commits the violation with respect to a transaction involving a person in, a relationship maintained for a person in, or a transport of a monetary instrument involving a foreign country, knowing that a designation of the foreign country as a high-intensity money laundering area was in effect at the time of the violation. (Sec. 7) Amends the Bank Holding Company Act of 1956 to direct that the Board of Governors of the Federal Reserve System: (1) take into consideration the effectiveness of the company in combating and preventing money laundering activities, including in overseas branches; (2) not consider any application (regarding acquisition of bank shares or assets) involving any company which is the subject of any pending Federal investigation of possible money laundering or other related financial crimes, or pending Federal prosecution for such crimes, until such investigation or prosecution is completed and a finding is made, with an exception; and (3) disapprove any such application involving a company which has been found criminally or civilly liable for such a crime during the five-year period preceding consideration of such application by the Board.