text: 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.
target: 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.
feat_title: Money Laundering Prevention Act of 1999