HR 3146 IHCommentsClose CommentsPermalink

To provide additional tools and resources to combat terrorism financing.CommentsClose CommentsPermalink

July 24, 2007

Mr. DAVIS of Kentucky introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To provide additional tools and resources to combat terrorism financing.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Combating Terrorism Financing Act of 2007'.CommentsClose CommentsPermalink

SEC. 2. INTERSTATE TRANSPORTATION OF CRIMINAL PROCEEDS AND `REVERSE' MONEY LAUNDERING.

(a) In General- Section 1957(a) of title 18, United States Code, is amended to read as follows:CommentsClose CommentsPermalink





`(a)(1) Whoever, in any of the circumstances set forth in subsection (d)--CommentsClose CommentsPermalink





`(A) conducts or attempts to conduct a monetary transaction involving property of a value greater than $10,000 that is derived from specified unlawful activity, knowing that the property is derived from some form of unlawful activity; orCommentsClose CommentsPermalink





`(B) conducts or attempts to conduct a monetary transaction involving property of a value greater than $10,000, with the intent to promote the carrying on of specified unlawful activity,CommentsClose CommentsPermalink





shall be punished as provided in subsection (b).CommentsClose CommentsPermalink





`(2) Whoever, in the any of the circumstances set forth in subsection (d), transports, attempts to transport, or conspires to transport more than $10,000 in currency in interstate commerce--CommentsClose CommentsPermalink





`(A) knowing that the currency was derived from some form of unlawful activity; orCommentsClose CommentsPermalink





`(B) knowing that the currency was intended to be used to promote some form of unlawful activity,CommentsClose CommentsPermalink





shall be punished as provided in subsection (b).'.CommentsClose CommentsPermalink





(b) Penalty- Section 1957(b) of title 18, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking `paragraph (2)' and inserting `paragraphs (2) and (3)'; andCommentsClose CommentsPermalink





(2) by inserting after paragraph (2) the following:CommentsClose CommentsPermalink





`(3) The maximum period of incarceration for a person convicted of an offense under subsection (a)(1)(B) must not exceed the statutory maximum for the offense being promoted.'.CommentsClose CommentsPermalink





(c) Conforming Amendment- Section 1957(f) of title 18, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (2) by striking `and' after the semicolon;CommentsClose CommentsPermalink





(2) in paragraph (3), by striking the period and inserting `; and'; andCommentsClose CommentsPermalink





(3) by inserting at the end the following:CommentsClose CommentsPermalink





`(4) the term `conducts' has the same meaning as it does for purposes of section 1956 of this title.'.CommentsClose CommentsPermalink





(d) Heading-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 1957 of title 18, United States Code, is amended in the heading by inserting `or in support of criminal activity' after `specified unlawful activity'.CommentsClose CommentsPermalink





(2) CHAPTER ANALYSIS- The item relating to section 1957 in the chapter analysis for chapter 95 of title 18, United States Code, is amended to read as follows:CommentsClose CommentsPermalink





`1957. Conducting monetary transactions in property derived from specified unlawful activity or in support of criminal activity.'.CommentsClose CommentsPermalink

SEC. 3. FREEZING BANK ACCOUNTS OF PERSONS ARRESTED FOR OFFENSES INVOLVING THE MOVEMENT OF MONEY ACROSS INTERNATIONAL BORDERS.

Section 981(b) of title 18, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink





`(5)(A) If a person is arrested or charged in connection with an offense described in subparagraph (C) involving the movement of funds into or out of the United States, the Attorney General may apply to any Federal judge or magistrate judge in the district in which the arrest is made or the charges are filed for an ex parte order restraining any account held by the person arrested or charged for not more than 30 days, except that the time may be extended for good cause shown at a hearing conducted in the manner provided in rule 43(e) of the Federal Rules of Civil Procedure. The court may receive and consider evidence and information submitted by the Government that would be inadmissible under the Federal Rules of Evidence.CommentsClose CommentsPermalink





`(B) The application for the restraining order referred to in subparagraph (A) shall--CommentsClose CommentsPermalink





`(i) identify the offense for which the person has been arrested or charged;CommentsClose CommentsPermalink





`(ii) identify the location and description of the accounts to be restrained; andCommentsClose CommentsPermalink





`(iii) state that the restraining order is needed to prevent the removal of the funds in the account by the person arrested or charged, or by others associated with such person, during the time needed by the Government to conduct such investigation as may be necessary to establish whether there is probable cause to believe that the funds in the accounts are subject to forfeiture in connection with the commission of any criminal offense.CommentsClose CommentsPermalink





`(C) A restraining order may be issued pursuant to subparagraph (A) if a person is arrested or charged with any offense for which forfeiture is authorized under this title, title 31, or the Controlled Substances Act.CommentsClose CommentsPermalink





`(D) For purposes of this paragraph--CommentsClose CommentsPermalink





`(i) the term `account' includes any safe deposit box and any account (as defined in section 5318A(e)(1) and (e)(2)) at any financial institution;CommentsClose CommentsPermalink





`(ii) the term `account held by the person arrested or charged' includes an account held in the name of such person, and any account over which such person has effective control as a signatory or otherwise.CommentsClose CommentsPermalink





`(E) Restraint pursuant to this paragraph shall not be deemed a seizure for purposes of subsection 983(a) of this title.CommentsClose CommentsPermalink





`(F) A restraining order issued pursuant to this paragraph may be executed in any district in which the subject account is found, or transmitted to the central authority of any foreign state for service in accordance with any treaty or other international agreement.'.CommentsClose CommentsPermalink

SEC. 4. USING BLANK CHECKS IN BEARER FORM TO SMUGGLE MONEY.

Section 5316 of title 31, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink





`(e) Monetary Instruments With Amount Left Blank- For purposes of this section, a monetary instrument that has the amount left blank shall be considered to have a value in excess of $10,000 if the instrument was drawn on an account that contained or was intended to contain more than $10,000 at the time the instrument was being transported, or at the time it was negotiated or was intended to be negotiated.'.CommentsClose CommentsPermalink

SEC. 5. PROHIBITING MONEY LAUNDERING THROUGH HAWALAS, OTHER INFORMAL VALUE TRANSFER SYSTEMS, AND CLOSELY RELATED TRANSACTIONS.

Section 1956(a)(1) of title 18, United States Code, is amended by striking `For purposes of this paragraph, a financial transaction' and inserting `For purposes of this paragraph and section 1957, a financial transaction or a monetary transaction'.CommentsClose CommentsPermalink

SEC. 6. SECTION 1957 VIOLATIONS INVOLVING COMMINGLED FUNDS AND STRUCTURED TRANSACTIONS.

Section 1957 of title 18, United States Code, is amended by adding after subsection (f) the following:CommentsClose CommentsPermalink





`(g) The Government may satisfy the $10,000 requirement in subsection (a)(1) by showing that--CommentsClose CommentsPermalink





`(1) the monetary transaction involved the transfer, withdrawal, encumbrance, or other disposition of more than $10,000 from an account in which more than $10,000 in proceeds of specified unlawful activity was commingled with other funds; orCommentsClose CommentsPermalink





`(2) the defendant conducted a series of monetary transactions in amounts under $10,000 that exceeded $10,000 in the aggregate and that were closely related to each other in terms of such factors as time, the identity of the parties involved, the nature or purpose of the transactions or the manner in which they are conducted.'.CommentsClose CommentsPermalink