Money Laundering Control Act of 1991

Summary

Money Laundering Control Act of 1991 - Amends the Bank Conservation Act, the Home Owners' Loan Act, the Federal Deposit Insurance Act, and the Federal Credit Union Act to authorize the appointment of a conservator for a depository institution convicted of money laundering offenses (including insured Federal and State savings associations and State banks). Exempts from conservatorship any such institution whose ownership or control has changed after commission of the offense and whose new owner or controlling person was not affiliated with it at the time of the offense. Amends the Revised Statutes, the Home Owners' Loan Act, and the Federal Credit Union Act to prescribe guidelines for the revocation of depository institutions' charters and forfeiture of franchises upon conviction for money laundering offenses (including the conviction of senior level management for such offenses). Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to prescribe guidelines for: (1) the termination of the insured status of State depository institutions, including State chartered credit unions convicted of money laundering; and (2) to authorize the removal of any party from office or its suspension from participation in the affairs of the institution if the party is determined to have committed certain currency reporting violations. Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to require specified regulatory agencies to include in their annual reports to the Congress the identification of depository institutions convicted of money laundering offenses and the agencies' enforcement activities. Amends the Federal criminal code to require the Attorney General to notify the appropriate regulatory agency in writing if any financial institution or its personnel has been convicted of certain money laundering offenses. Amends Federal law regarding monetary transactions to authorize the Secretary of the Treasury to: (1) impose civil money penalties upon a financial institution for negligent violations of this Act or for a pattern of negligent violations; and (2) order a depository institution to request that its customers submit cash transaction reports. Amends Federal law regarding money transactions to direct the Secretary of the Treasury to: (1) prescribe regulations requiring each depository institution to file identification reports regarding certain financial institution customers; and (2) make such reports available to State financial institution supervisory agencies for supervisory purposes. Expresses the sense of the Congress that the States should: (1) establish uniform regulations and licensing requirements (meeting specified criteria) for non-depository institutions engaged in check cashing businesses; and (2) develop a model statute incorporating such uniform regulations. Requires the Secretary to study and report to the Congress on the progress made by the States in enacting uniform legislation. Amends the Federal criminal code to establish criminal penalties for persons participating in an illegal money transmitting business. Amends the Federal Deposit Insurance Act to direct the Secretary to promulgate final regulations requiring insured depository institutions and businesses involved in funds transfers to maintain records of certain kinds of payment orders involving international transactions as will have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. Mandates that such records be made available to the Secretary upon request. Prohibits a financial institution or its personnel from disclosing the existence of a Federal information targeting order except as prescribed by the Secretary. Authorizes the Secretary of the Treasury and the Attorney General to issue civil enforcement and prosecutorial guidelines for currency transactions. Amends the Bank Secrecy Act to require a person to certify to the relevant financial institution in writing under penalty of perjury the basis for requesting an exemption from cash transaction reporting requirements. Requires an annual certification update. Requires the Secretary to make currency transaction reports (CTRs) available to any State depository institution's supervisory agency. Requires the Secretary to establish an Advisory Group on Reports on Monetary Instruments Transactions to serve as a conduit between the Federal and private sectors regarding the status of currency transaction reporting activities. Requires the Advisory Group to recommend changes in CTR forms that balance law enforcement needs with the burden on financial institutions in using them. Requires the Board of Governors of the Federal Reserve System to provide, at the Attorney General's request, information regarding the cash surplus reports of the Federal Reserve banks which may be relevant to investigations under this Act. Amends the Right to Financial Privacy Act to provide that financial records transferred by a regulatory agency to the Secretary of the Treasury for possible criminal violations shall be used only for criminal investigative or prosecutive purposes relating to money laundering. Subjects to certain cash reporting requirements any officer or office of either House of the Congress which provides check cashing or deposit services for Members of Congress. Amends Federal law relating to international monetary instrument transaction reporting requirements to prohibit: (1) failure to file the requisite reports; (2) filing material omissions or misstatements of facts in such reports; and (3) participation in structuring any importation or exportation of monetary instruments. Amends the Anti-Drug Abuse Act of 1988 to require the Secretary to enter into discussions with officials of foreign countries whose financial institutions are engaged in substantial activities involving proceeds from narcotics sales in the United States, and which have not instituted comprehensive anti-money laundering programs. Directs the Secretary to encourage such countries to develop such programs, and to cooperate with U.S. law enforcement officials in obtaining financial records in drug money laundering cases. Requires biennial reports to certain congressional committees on the status of international initiatives against drug money laundering. Amends the Right to Financial Privacy Act of 1978 to authorize the transfer of financial records without customer notice to the Secretary for analysis by the Financial Crimes Enforcement Network proposed to be established by Secretary. Amends the Federal criminal code to set forth guidelines for: (1) civil forfeiture of fungible property of a monetary nature; (2) administrative subpoenas and bank record subpoenas; and (3) punishment for conspirary to commit a money laundering offense. Authorizes the use of the Asset Forfeiture Fund to pay awards in money laundering cases. Amends the Anti-Drug Abuse Act of 1988 to authorize warrantless searches of: (1) envelopes or containers that are not sealed against inspection or have a customs declaration affixed by the sender; and (2) letters sealed against inspection if a customs officer has reasonable cause to suspect that monetary instruments are being transported in such letters. Requires the Comptroller General to report to the Congress about the manner in which the Secretary has implemented and enforced compliance with Federal recordkeeping and reporting requirements regarding monetary instruments. Requires the Secretary to initiate a feasibility study of electronic scanning of certain united States currency.

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2 official files

• Introduced in House (text)

  Introduced in House · EN

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• Introduced in House

  summary · EN · 6 February 1991

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