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[DOCID: f:publ056.107]

UNITING AND STRENGTHENING AMERICA BY PROVIDING APPROPRIATE TOOLS REQUIRED TO INTERCEPT 
AND OBSTRUCT TERRORISM (USA PATRIOT ACT) ACT OF 2001

Public Law 107-56
107th Congress

An Act To deter and punish terrorist acts in the United States and around the world, 
to enhance law enforcement investigatory tools, and for other purposes. 

<<NOTE: Oct. 26, 2001 -  [H.R. 3162]>> 

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.Edit

(a) Short <<NOTE: 18 USC 1 note.>> Title.--This Act may be cited as

the ``Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001.

(b) Table of Contents.--The table of contents for this Act is as

follows:

Sec. 1. Short title and table of contents.
Sec. 2. Construction; severability.

TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM

  • Sec. 101. Counterterrorism fund.
  • Sec. 102. Sense of Congress condemning discrimination against Arab and Muslim Americans.
  • Sec. 103. Increased funding for the technical support center at the Federal Bureau of Investigation
  • Sec. 104. Requests for military assistance to enforce prohibition in certain emergencies.
  • Sec. 105. Expansion of National Electronic Crime Task Force Initiative.
  • Sec. 106. Presidential authority.

TITLE II--ENHANCED SURVEILLANCE PROCEDURES

  • Sec. 201. Authority to intercept wire, oral, and electronic communications relating to terrorism.
  • Sec. 202. Authority to intercept wire, oral, and electronic communications relating to computer fraud and abuse offenses.
  • Sec. 203. Authority to share criminal investigative information.
  • Sec. 204. Clarification of intelligence exceptions from limitations on interception and disclosure of wire, oral, and electronic communications.
  • Sec. 205. Employment of translators by the Federal Bureau of Investigation.
  • Sec. 206. Roving surveillance authority under the Foreign Intelligence Surveillance Act of 1978.
  • Sec. 207. Duration of FISA surveillance of non-United States persons who are agents of a foreign power.
  • Sec. 208. Designation of judges.
  • Sec. 209. Seizure of voice-mail messages pursuant to warrants.
  • Sec. 210. Scope of subpoenas for records of electronic communications.
  • Sec. 211. Clarification of scope.
  • Sec. 212. Emergency disclosure of electronic communications to protect life and limb.
  • Sec. 213. Authority for delaying notice of the execution of a warrant.
  • Sec. 214. Pen register and trap and trace authority under FISA.
  • Sec. 215. Access to records and other items under the Foreign Intelligence Surveillance Act.
  • Sec. 216. Modification of authorities relating to use of pen registers and trap and trace devices.
  • Sec. 217. Interception of computer trespasser communications.
  • Sec. 218. Foreign intelligence information.
  • Sec. 219. Single-jurisdiction search warrants for terrorism.
  • Sec. 220. Nationwide service of search warrants for electronic evidence.
  • Sec. 221. Trade sanctions.
  • Sec. 222. Assistance to law enforcement agencies.
  • Sec. 223. Civil liability for certain unauthorized disclosures.
  • Sec. 224. Sunset.
  • Sec. 225. Immunity for compliance with FISA wiretap.

TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST FINANCING ACT OF 2001

  • Sec. 301. Short title.
  • Sec. 302. Findings and purposes.
  • Sec. 303. 4-year congressional review; expedited consideration.

Subtitle A--International Counter Money Laundering and Related Measures

  • Sec. 311. Special measures for jurisdictions, financial institutions, or international transactions of primary money laundering concern.
  • Sec. 312. Special due diligence for correspondent accounts and private banking accounts.
  • Sec. 313. Prohibition on United States correspondent accounts with foreign shell banks.
  • Sec. 314. Cooperative efforts to deter money laundering.
  • Sec. 315. Inclusion of foreign corruption offenses as money laundering crimes.
  • Sec. 316. Anti-terrorist forfeiture protection.
  • Sec. 317. Long-arm jurisdiction over foreign money launderers.
  • Sec. 318. Laundering money through a foreign bank.
  • Sec. 319. Forfeiture of funds in United States interbank accounts.
  • Sec. 320. Proceeds of foreign crimes.
  • Sec. 321. Financial institutions specified in subchapter II of chapter 53 of title 31, United States code.
  • Sec. 322. Corporation represented by a fugitive.
  • Sec. 323. Enforcement of foreign judgments.
  • Sec. 324. Report and recommendation.
  • Sec. 325. Concentration accounts at financial institutions.
  • Sec. 326. Verification of identification.
  • Sec. 327. Consideration of anti-money laundering record.
  • Sec. 328. International cooperation on identification of originators of wire transfers.
  • Sec. 329. Criminal penalties.
  • Sec. 330. International cooperation in investigations of money laundering, financial crimes, and the finances of terrorist groups.

Subtitle B--Bank Secrecy Act Amendments and Related Improvements

  • Sec. 351. Amendments relating to reporting of suspicious activities.
  • Sec. 352. Anti-money laundering programs.
  • Sec. 353. Penalties for violations of geographic targeting orders and certain recordkeeping requirements, and lengthening effective period of geographic targeting orders.
  • Sec. 354. Anti-money laundering strategy.
  • Sec. 355. Authorization to include suspicions of illegal activity in written employment references.
  • Sec. 356. Reporting of suspicious activities by securities brokers and dealers; investment company study.
  • Sec. 357. Special report on administration of bank secrecy provisions.
  • Sec. 358. Bank secrecy provisions and activities of United States intelligence agencies to fight international terrorism.
  • Sec. 359. Reporting of suspicious activities by underground banking systems.
  • Sec. 360. Use of authority of United States Executive Directors.
  • Sec. 361. Financial crimes enforcement network.
  • Sec. 362. Establishment of highly secure network.
  • Sec. 363. Increase in civil and criminal penalties for money laundering.
  • Sec. 364. Uniform protection authority for Federal Reserve facilities.
  • Sec. 365. Reports relating to coins and currency received in nonfinancial trade or business.
  • Sec. 366. Efficient use of currency transaction report system.

Subtitle C--Currency Crimes and Protection

  • Sec. 371. Bulk cash smuggling into or out of the United States.
  • Sec. 372. Forfeiture in currency reporting cases.
  • Sec. 373. Illegal money transmitting businesses.
  • Sec. 374. Counterfeiting domestic currency and obligations.
  • Sec. 375. Counterfeiting foreign currency and obligations.
  • Sec. 376. Laundering the proceeds of terrorism.
  • Sec. 377. Extraterritorial jurisdiction.

TITLE IV--PROTECTING THE BORDER

Subtitle A--Protecting the Northern Border

Sec. 401. Ensuring adequate personnel on the northern border. Sec. 402. Northern border personnel. 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. Sec. 404. Limited authority to pay overtime. Sec. 405. Report on the integrated automated fingerprint identification system for ports of entry and overseas consular posts.

Subtitle B--Enhanced Immigration Provisions

Sec. 411. Definitions relating to terrorism. Sec. 412. Mandatory detention of suspected terrorists; habeas corpus;

judicial review.

Sec. 413. Multilateral cooperation against terrorists. Sec. 414. Visa integrity and security. Sec. 415. Participation of Office of Homeland Security on Entry-Exit

Task Force.

Sec. 416. Foreign student monitoring program. Sec. 417. Machine readable passports. Sec. 418. Prevention of consulate shopping.

Subtitle C--Preservation of Immigration Benefits for Victims of 
                               Terrorism

Sec. 421. Special immigrant status. Sec. 422. Extension of filing or reentry deadlines. Sec. 423. Humanitarian relief for certain surviving spouses and

children.

Sec. 424. ``Age-out protection for children. Sec. 425. Temporary administrative relief. Sec. 426. Evidence of death, disability, or loss of employment. Sec. 427. No benefits to terrorists or family members of terrorists. Sec. 428. Definitions.

TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM

Sec. 501. Attorney General's authority to pay rewards to combat

terrorism.

Sec. 502. Secretary of State's authority to pay rewards. Sec. 503. DNA identification of terrorists and other violent offenders. Sec. 504. Coordination with law enforcement. Sec. 505. Miscellaneous national security authorities. Sec. 506. Extension of Secret Service jurisdiction. Sec. 507. Disclosure of educational records. Sec. 508. Disclosure of information from NCES surveys.

TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS, 
                          AND THEIR FAMILIES
Subtitle A--Aid to Families of Public Safety Officers

Sec. 611. Expedited payment for public safety officers involved in the

prevention, investigation, rescue, or recovery efforts 
          related to a terrorist attack.

Sec. 612. Technical correction with respect to expedited payments for

heroic public safety officers.

Sec. 613. Public safety officers benefit program payment increase. Sec. 614. Office of Justice programs.

Subtitle B--Amendments to the Victims of Crime Act of 1984

Sec. 621. Crime victims fund. Sec. 622. Crime victim compensation. Sec. 623. Crime victim assistance. Sec. 624. Victims of terrorism.

TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE 
                              PROTECTION

Sec. 701. Expansion of regional information sharing system to facilitate

Federal-State-local law enforcement response related to 
          terrorist attacks.

TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM

Sec. 801. Terrorist attacks and other acts of violence against mass transportation systems. Sec. 802. Definition of domestic terrorism. Sec. 803. Prohibition against harboring terrorists. Sec. 804. Jurisdiction over crimes committed at U.S. facilities abroad. Sec. 805. Material support for terrorism. Sec. 806. Assets of terrorist organizations. Sec. 807. Technical clarification relating to provision of material support to terrorism. Sec. 808. Definition of Federal crime of terrorism. Sec. 809. No statute of limitation for certain terrorism offenses. Sec. 810. Alternate maximum penalties for terrorism offenses. Sec. 811. Penalties for terrorist conspiracies. Sec. 812. Post-release supervision of terrorists. Sec. 813. Inclusion of acts of terrorism as racketeering activity. Sec. 814. Deterrence and prevention of cyberterrorism. Sec. 815. Additional defense to civil actions relating to preserving records in response to Government requests. Sec. 816. Development and support of cybersecurity forensic capabilities. Sec. 817. Expansion of the biological weapons statute.

TITLE IX--IMPROVED INTELLIGENCE

Sec. 901. Responsibilities of Director of Central Intelligence regarding foreign intelligence collected under Foreign Intelligence Surveillance Act of 1978. Sec. 902. Inclusion of international terrorist activities within scope of foreign intelligence under National Security Act of 1947. Sec. 903. Sense of Congress on the establishment and maintenance of intelligence relationships to acquire information on terrorists and terrorist organizations. Sec. 904. Temporary authority to defer submittal to Congress of reports on intelligence and intelligence-related matters. Sec. 905. Disclosure to Director of Central Intelligence of foreign intelligence-related information with respect to criminal investigations. Sec. 906. Foreign terrorist asset tracking center. Sec. 907. National Virtual Translation Center. Sec. 908. Training of government officials regarding identification and use of foreign intelligence.

TITLE X--MISCELLANEOUS

Sec. 1001. Review of the department of justice.
Sec. 1002. Sense of congress.
Sec. 1003. Definition of ``electronic surveillance.
Sec. 1004. Venue in money laundering cases.
Sec. 1005. First responders assistance act.
Sec. 1006. Inadmissibility of aliens engaged in money laundering.
Sec. 1007. Authorization of funds for dea police training in south and central asia.
Sec. 1008. Feasibility study on use of biometric identifier scanning system with access to the fbi integrated automated fingerprint identification system at overseas consular posts and points of entry to the United States.
Sec. 1009. Study of access.
Sec. 1010. Temporary authority to contract with local and State governments for performance of security functions at United States military installations.
Sec. 1011. Crimes against charitable americans.
Sec. 1012. Limitation on issuance of hazmat licenses.
Sec. 1013. Expressing the sense of the senate concerning the provision of funding for bioterrorism preparedness and response.
Sec. 1014. Grant program for State and local domestic preparedness support.
Sec. 1015. Expansion and reauthorization of the crime identification technology act for antiterrorism grants to States and localities.
Sec. 1016. Critical infrastructures protection.


SEC. 2. CONSTRUCTION; SEVERABILITY.Edit

Any provision of this Act held to be invalid or unenforceable by its terms, or as applied to any person or circumstance, shall be construed so as to give it the maximum effect permitted by law, unless such holding shall be one of utter invalidity or unenforceability, in which event such provision shall be deemed

severable from this Act and shall not affect the remainder thereof or the application of such provision to other persons not similarly situated or to other, dissimilar circumstances.

Basically what this means is that if any section below is thrown out, that doesn't affect the rest of the act.

TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM.Edit

SEC. 101. <<NOTE: 28 USC 524 note.>> COUNTERTERRORISM FUND.Edit

(a) Establishment; Availability.--There is hereby established in the Treasury of the United States a separate fund to be known as the Counterterrorism Fund, amounts in which shall remain available without fiscal year limitation--
(1) to reimburse any Department of Justice component for any costs incurred in connection with--
(A) reestablishing the operational capability of an office or facility that has been damaged or destroyed as the result of any domestic or international terrorism incident;
(B) providing support to counter, investigate, or prosecute domestic or international terrorism, including, without limitation, paying rewards in connection with these activities; and
(C) conducting terrorism threat assessments of Federal agencies and their facilities; and
(2) to reimburse any department or agency of the Federal Government for any costs incurred in connection with detaining in foreign countries individuals accused of acts of terrorism that violate the laws of the United States.
(b) No Effect on Prior Appropriations.--Subsection (a) shall not be construed to affect the amount or availability of any appropriation to the Counterterrorism Fund made before the date of the enactment of this Act.


SEC. 102. SENSE OF CONGRESS CONDEMNING DISCRIMINATION AGAINST ARAB AND MUSLIM AMERICANS.Edit

(a) Findings.--Congress makes the following findings:
(1) Arab Americans, Muslim Americans, and Americans from South Asia play a vital role in our Nation and are entitled to nothing less than the full rights of every American.
(2) The acts of violence that have been taken against Arab and Muslim Americans since the September 11, 2001, attacks against the United States should be and are condemned by all Americans who value freedom.
(3) The concept of individual responsibility for wrongdoing is sacrosanct in American society, and applies equally to all religious, racial, and ethnic groups.
(4) When American citizens commit acts of violence against those who are, or are perceived to be, of Arab or Muslim descent, they should be punished to the full extent of the law.
(5) Muslim Americans have become so fearful of harassment that many Muslim women are changing the way they dress to avoid becoming targets.
(6) Many Arab Americans and Muslim Americans have acted heroically during the attacks on the United States, including Mohammed Salman Hamdani, a 23-year-old New Yorker of Pakistani descent, who is believed to have gone to the World Trade Center to offer rescue assistance and is now missing.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the civil rights and civil liberties of all Americans, including Arab Americans, Muslim Americans, and Americans from South Asia, must be protected, and that every effort must be taken to preserve their safety;
(2) any acts of violence or discrimination against any Americans be condemned; and
(3) the Nation is called upon to recognize the patriotism of fellow citizens from all ethnic, racial, and religious backgrounds.


SEC. 103. INCREASED FUNDING FOR THE TECHNICAL SUPPORT CENTER AT THE FEDERAL BUREAU OF INVESTIGATION.Edit

There are authorized to be appropriated for the Technical Support Center established in section 811 of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104-132) to help meet the demands for activities to combat terrorism and support and enhance the technical support and tactical operations of the FBI, $200,000,000 for each of the fiscal years 2002, 2003, and 2004.


SEC. 104. REQUESTS FOR MILITARY ASSISTANCE TO ENFORCE PROHIBITION IN CERTAIN EMERGENCIES.Edit

Section 2332e of title 18, United States Code, is amended--

(1) by striking ``2332c and inserting ``2332a; and
(2) by striking ``chemical.

Section 2332c had been repealed, and (1) is an editing fix to refer to the correct sub-section.

The original language was "chemical weapon of mass destruction", and they struck out "chemical" to broaden the definition.


SEC. 105. <<NOTE: 18 USC 3056 note.>> EXPANSION OF NATIONAL ELECTRONIC CRIME TASK FORCE INITIATIVE.Edit

The Director of the United States Secret Service shall take

appropriate actions to develop a national network of electronic crime task forces, based on the New York Electronic Crimes Task Force model, throughout the United States, for the purpose of preventing, detecting, and investigating various forms of electronic crimes, including potential terrorist attacks against critical infrastructure and financial payment systems.

SEC. 106. PRESIDENTIAL AUTHORITY.Edit

Section 203 of the International Emergency Powers Act (50 U.S.C.

1702) is amended--

(1) in subsection (a)(1)--
                   (A) at the end of subparagraph (A) (flush to that 
               subparagraph), by striking ``; and and inserting a 
               comma and the following:
       ``by any person, or with respect to any property, subject to the 
       jurisdiction of the United States;;
                   (B) in subparagraph (B)--
                         (i) by inserting ``, block during the pendency 
                     of an investigation after ``investigate; and
                         (ii) by striking ``interest; and inserting 
                     ``interest by any person, or with respect to any 
                     property, subject to the jurisdiction of the 
                     United States; and;
                   (C) by striking ``by any person, or with respect to 
               any property, subject to the jurisdiction of the United 
               States`; and
                   (D) by inserting at the end the following:


Page 115 STAT. 278Edit

``(C) when the United States is engaged in armed 
               hostilities or has been attacked by a foreign country or 
               foreign nationals, confiscate any property, subject to 
               the jurisdiction of the United States, of any foreign 
               person, foreign organization, or foreign country that he 
               determines has planned, authorized, aided, or engaged in 
               such hostilities or attacks against the United States; 
               and all right, title, and interest in any property so 
               confiscated shall vest, when, as, and upon the terms 
               directed by the President, in such agency or person as 
               the President may designate from time to time, and upon 
               such terms and conditions as the President may 
               prescribe, such interest or property shall be held, 
               used, administered, liquidated, sold, or otherwise dealt 
               with in the interest of and for the benefit of the 
               United States, and such designated agency or person may 
               perform any and all acts incident to the accomplishment 
               or furtherance of these purposes.; and
           (2) by inserting at the end the following:
``(c) Classified Information.--In any judicial review of a

determination made under this section, if the determination was based on classified information (as defined in section 1(a) of the Classified Information Procedures Act) such information may be submitted to the reviewing court ex parte and in camera. This subsection does not confer or imply any right to judicial review..

TITLE II--ENHANCED SURVEILLANCE PROCEDURES

SEC. 201. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC

COMMUNICATIONS RELATING TO TERRORISM.
Section 2516(1) of title 18, United States Code, is amended--
           (1) by redesignating paragraph (p), as so redesignated by 
       section 434(2) of the Antiterrorism and Effective Death Penalty 
       Act of 1996 (Public Law 104-132; 110 Stat. 1274), as paragraph 
       (r); and
           (2) by inserting after paragraph (p), as so redesignated by 
       section 201(3) of the Illegal Immigration Reform and Immigrant 
       Responsibility Act of 1996 (division C of Public Law 104-208; 
       110 Stat. 3009-565), the following new paragraph:
``(q) any criminal violation of section 229 (relating to chemical

weapons); or sections 2332, 2332a, 2332b, 2332d, 2339A, or 2339B of this title (relating to terrorism); or.

SEC. 202. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC

COMMUNICATIONS RELATING TO COMPUTER FRAUD AND ABUSE 
           OFFENSES.
Section 2516(1)(c) of title 18, United States Code, is amended by

striking ``and section 1341 (relating to mail fraud), and inserting ``section 1341 (relating to mail fraud), a felony violation of section 1030 (relating to computer fraud and abuse),.

SEC. 203. <<NOTE: 18 USC app.>> AUTHORITY TO SHARE CRIMINAL

INVESTIGATIVE INFORMATION.
(a) Authority To Share Grand Jury Information.--

Page 115 STAT. 279Edit

(1) In general.--Rule 6(e)(3)(C) of the Federal Rules of 
       Criminal Procedure is amended to read as follows:
                   ``(C)(i) Disclosure otherwise prohibited by this 
               rule of matters occurring before the grand jury may also 
               be made--
                         ``(I) when so directed by a court 
                     preliminarily to or in connection with a judicial 
                     proceeding;
                         ``(II) when permitted by a court at the 
                     request of the defendant, upon a showing that 
                     grounds may exist for a motion to dismiss the 
                     indictment because of matters occurring before the 
                     grand jury;
                         ``(III) when the disclosure is made by an 
                     attorney for the government to another Federal 
                     grand jury;
                         ``(IV) when permitted by a court at the 
                     request of an attorney for the government, upon a 
                     showing that such matters may disclose a violation 
                     of State criminal law, to an appropriate official 
                     of a State or subdivision of a State for the 
                     purpose of enforcing such law; or
                         ``(V) when the matters involve foreign 
                     intelligence or counterintelligence (as defined in 
                     section 3 of the National Security Act of 1947 (50 
                     U.S.C. 401a)), or foreign intelligence information 
                     (as defined in clause (iv) of this subparagraph), 
                     to any Federal law enforcement, intelligence, 
                     protective, immigration, national defense, or 
                     national security official in order to assist the 
                     official receiving that information in the 
                     performance of his official duties.
                   ``(ii) If the court orders disclosure of matters 
               occurring before the grand jury, the disclosure shall be 
               made in such manner, at such time, and under such 
               conditions as the court may direct.
                   ``(iii) Any Federal official to whom information is 
               disclosed pursuant to clause (i)(V) of this subparagraph 
               may use that information only as necessary in the 
               conduct of that person's official duties subject to any 
               limitations on the unauthorized disclosure of such 
               information. Within a reasonable time after such 
               disclosure, an attorney for the government shall file 
               under seal a notice with the court stating the fact that 
               such information was disclosed and the departments, 
               agencies, or entities to which the disclosure was made.
                   ``(iv) In clause (i)(V) of this subparagraph, the 
               term `foreign intelligence information' means--
                         ``(I) information, whether or not concerning a 
                     United States person, that relates to the ability 
                     of the United States to protect against--
                                   ``(aa) actual or potential attack or 
                               other grave hostile acts of a foreign 
                               power or an agent of a foreign power;
                                   ``(bb) sabotage or international 
                               terrorism by a foreign power or an agent 
                               of a foreign power; or
                                   ``(cc) clandestine intelligence 
                               activities by an intelligence service or 
                               network of a foreign power or by an 
                               agent of foreign power; or

Page 115 STAT. 280Edit

``(II) information, whether or not concerning 
                     a United States person, with respect to a foreign 
                     power or foreign territory that relates to--
                                   ``(aa) the national defense or the 
                               security of the United States; or
                                   ``(bb) the conduct of the foreign 
                               affairs of the United States..
           (2) Conforming amendment.--Rule 6(e)(3)(D) of the Federal 
       Rules of Criminal Procedure is amended by striking 
       ``(e)(3)(C)(i) and inserting ``(e)(3)(C)(i)(I).
(b) Authority To Share Electronic, Wire, and Oral Interception

Information.--

(1) Law enforcement.--Section 2517 of title 18, United 
       States Code, is amended by inserting at the end the following:
``(6) Any investigative or law enforcement officer, or attorney for

the Government, who by any means authorized by this chapter, has obtained knowledge of the contents of any wire, oral, or electronic communication, or evidence derived therefrom, may disclose such contents to any other Federal law enforcement, intelligence, protective, immigration, national defense, or national security official to the extent that such contents include foreign intelligence or counterintelligence (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)), or foreign intelligence information (as defined in subsection (19) of section 2510 of this title), to assist the official who is to receive that information in the performance of his official duties. Any Federal official who receives information pursuant to this provision may use that information only as necessary in the conduct of that person's official duties subject to any limitations on the unauthorized disclosure of such information..

(2) Definition.--Section 2510 of title 18, United States 
       Code, is amended by--
                   (A) in paragraph (17), by striking ``and after the 
               semicolon;
                   (B) in paragraph (18), by striking the period and 
               inserting ``; and; and
                   (C) by inserting at the end the following:
           ``(19) `foreign intelligence information' means--
                   ``(A) information, whether or not concerning a 
               United States person, that relates to the ability of the 
               United States to protect against--
                         ``(i) actual or potential attack or other 
                     grave hostile acts of a foreign power or an agent 
                     of a foreign power;
                         ``(ii) sabotage or international terrorism by 
                     a foreign power or an agent of a foreign power; or
                         ``(iii) clandestine intelligence activities by 
                     an intelligence service or network of a foreign 
                     power or by an agent of a foreign power; or
                   ``(B) information, whether or not concerning a 
               United States person, with respect to a foreign power or 
               foreign territory that relates to--
                         ``(i) the national defense or the security of 
                     the United States; or
                         ``(ii) the conduct of the foreign affairs of 
                     the United States..
(c) Procedures.--The <<NOTE: 18 USC 2517 note.>> Attorney General

shall establish procedures for the disclosure of information pursuant to section 2517(6)

Page 115 STAT. 281Edit

and Rule 6(e)(3)(C)(i)(V) of the Federal Rules of Criminal Procedure that identifies a United States person, as defined in section 101 of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801)).

(d) Foreign <<NOTE: 50 USC 403-5d.>> Intelligence Information.--
           (1) In general.--Notwithstanding any other provision of law, 
       it shall be lawful for foreign intelligence or 
       counterintelligence (as defined in section 3 of the National 
       Security Act of 1947 (50 U.S.C. 401a)) or foreign intelligence 
       information obtained as part of a criminal investigation to be 
       disclosed to any Federal law enforcement, intelligence, 
       protective, immigration, national defense, or national security 
       official in order to assist the official receiving that 
       information in the performance of his official duties. Any 
       Federal official who receives information pursuant to this 
       provision may use that information only as necessary in the 
       conduct of that person's official duties subject to any 
       limitations on the unauthorized disclosure of such information.
           (2) Definition.--In this subsection, the term ``foreign 
       intelligence information means--
                   (A) information, whether or not concerning a United 
               States person, that relates to the ability of the United 
               States to protect against--
                         (i) actual or potential attack or other grave 
                     hostile acts of a foreign power or an agent of a 
                     foreign power;
                         (ii) sabotage or international terrorism by a 
                     foreign power or an agent of a foreign power; or
                         (iii) clandestine intelligence activities by 
                     an intelligence service or network of a foreign 
                     power or by an agent of a foreign power; or
                   (B) information, whether or not concerning a United 
               States person, with respect to a foreign power or 
               foreign territory that relates to--
                         (i) the national defense or the security of 
                     the United States; or
                         (ii) the conduct of the foreign affairs of the 
                     United States.

SEC. 204. CLARIFICATION OF INTELLIGENCE EXCEPTIONS FROM LIMITATIONS ON

INTERCEPTION AND DISCLOSURE OF WIRE, ORAL, AND ELECTRONIC 
           COMMUNICATIONS.
Section 2511(2)(f) of title 18, United States Code, is amended--
           (1) by striking ``this chapter or chapter 121 and 
       inserting ``this chapter or chapter 121 or 206 of this title; 
       and
           (2) by striking ``wire and oral and inserting ``wire, 
       oral, and electronic.

SEC. 205. <<NOTE: 28 USC 532 note.>> EMPLOYMENT OF TRANSLATORS BY THE

FEDERAL BUREAU OF INVESTIGATION.
(a) Authority.--The Director of the Federal Bureau of Investigation

is authorized to expedite the employment of personnel as translators to support counterterrorism investigations and operations without regard to applicable Federal personnel requirements and limitations.

(b) Security Requirements.--The Director of the Federal Bureau of

Investigation shall establish such security requirements as are necessary for the personnel employed as translators under subsection (a).

Page 115 STAT. 282Edit

(c) Report.--The Attorney General shall report to the Committees on

the Judiciary of the House of Representatives and the Senate on--

(1) the number of translators employed by the FBI and other 
       components of the Department of Justice;
           (2) any legal or practical impediments to using translators 
       employed by other Federal, State, or local agencies, on a full, 
       part-time, or shared basis; and
           (3) the needs of the FBI for specific translation services 
       in certain languages, and recommendations for meeting those 
       needs.

SEC. 206. ROVING SURVEILLANCE AUTHORITY UNDER THE FOREIGN INTELLIGENCE

SURVEILLANCE ACT OF 1978.
Section 105(c)(2)(B) of the Foreign Intelligence Surveillance Act of

1978 (50 U.S.C. 1805(c)(2)(B)) is amended by inserting ``, or in circumstances where the Court finds that the actions of the target of the application may have the effect of thwarting the identification of a specified person, such other persons, after ``specified person.

SEC. 207. DURATION OF FISA SURVEILLANCE OF NON-UNITED STATES PERSONS WHO

ARE AGENTS OF A FOREIGN POWER.
(a) Duration.--
           (1) Surveillance.--Section 105(e)(1) of the Foreign 
       Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(e)(1)) is 
       amended by--
                   (A) inserting ``(A) after ``except that; and
                   (B) inserting before the period the following: ``, 
               and (B) an order under this Act for a surveillance 
               targeted against an agent of a foreign power, as defined 
               in section 101(b)(1)(A) may be for the period specified 
               in the application or for 120 days, whichever is less.
(2) Physical Search.--Section 304(d)(1) of the Foreign Intelligence

Surveillance Act of 1978 (50 U.S.C. 1824(d)(1)) is amended by--

(A) striking ``forty-five and inserting ``90;
           (B) inserting ``(A) after ``except that; and
           (C) inserting before the period the following: ``, and (B) 
       an order under this section for a physical search targeted 
       against an agent of a foreign power as defined in section 
       101(b)(1)(A) may be for the period specified in the application 
       or for 120 days, whichever is less.
(b) Extension.--
           (1) In general.--Section 105(d)(2) of the Foreign 
       Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(d)(2)) is 
       amended by--
                   (A) inserting ``(A) after ``except that; and
                   (B) inserting before the period the following: ``, 
               and (B) an extension of an order under this Act for a 
               surveillance targeted against an agent of a foreign 
               power as defined in section 101(b)(1)(A) may be for a 
               period not to exceed 1 year.
           (2) Defined term.--Section 304(d)(2) of the Foreign 
       Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(2) is 
       amended by inserting after ``not a United States person, the 
       following: ``or against an agent of a foreign power as defined 
       in section 101(b)(1)(A),.

Page 115 STAT. 283Edit

SEC. 208. DESIGNATION OF JUDGES.

Section 103(a) of the Foreign Intelligence Surveillance Act of 1978

(50 U.S.C. 1803(a)) is amended by--

(1) striking ``seven district court judges and inserting 
       ``11 district court judges; and
           (2) inserting ``of whom no fewer than 3 shall reside within 
       20 miles of the District of Columbia after ``circuits.

SEC. 209. SEIZURE OF VOICE-MAIL MESSAGES PURSUANT TO WARRANTS.

Title 18, United States Code, is amended--
           (1) in section 2510--
                   (A) in paragraph (1), by striking beginning with 
               ``and such and all that follows through 
               ``communication; and
                   (B) in paragraph (14), by inserting ``wire or 
               after ``transmission of; and
           (2) in subsections (a) and (b) of section 2703--
                   (A) by striking ``Contents of electronic and 
               inserting ``Contents of wire or electronic each place 
               it appears;
                   (B) by striking ``contents of an electronic and 
               inserting ``contents of a wire or electronic each 
               place it appears; and
                   (C) by striking ``any electronic and inserting 
               ``any wire or electronic each place it appears.

SEC. 210. SCOPE OF SUBPOENAS FOR RECORDS OF ELECTRONIC COMMUNICATIONS.

Section 2703(c)(2) of title 18, United States Code, as redesignated

by section 212, is amended--

(1) by striking ``entity the name, address, local and long 
       distance telephone toll billing records, telephone number or 
       other subscriber number or identity, and length of service of a 
       subscriber and inserting the following: ``entity the--
           ``(A) name;
           ``(B) address;
           ``(C) local and long distance telephone connection records, 
       or records of session times and durations;
           ``(D) length of service (including start date) and types of 
       service utilized;
           ``(E) telephone or instrument number or other subscriber 
       number or identity, including any temporarily assigned network 
       address; and
           ``(F) means and source of payment for such service 
       (including any credit card or bank account number),

of a subscriber; and

(2) by striking ``and the types of services the subscriber 
       or customer utilized,.

SEC. 211. CLARIFICATION OF SCOPE.

Section 631 of the Communications Act of 1934 (47 U.S.C. 551) is

amended--

(1) in subsection (c)(2)--
                   (A) in subparagraph (B), by striking ``or;
                   (B) in subparagraph (C), by striking the period at 
               the end and inserting ``; or; and
                   (C) by inserting at the end the following:

Page 115 STAT. 284Edit

``(D) to a government entity as authorized under chapters 
       119, 121, or 206 of title 18, United States Code, except that 
       such disclosure shall not include records revealing cable 
       subscriber selection of video programming from a cable 
       operator.; and
           (2) in subsection (h), by striking ``A governmental entity 
       and inserting ``Except as provided in subsection (c)(2)(D), a 
       governmental entity.

SEC. 212. EMERGENCY DISCLOSURE OF ELECTRONIC COMMUNICATIONS TO PROTECT

LIFE AND LIMB.
(a) Disclosure of Contents.--
           (1) In general.--Section 2702 of title 18, United States 
       Code, is amended--
                   (A) by striking the section heading and inserting 
               the following:

``Sec. 2702. Voluntary disclosure of customer communications or

records;
(B) in subsection (a)--
                         (i) in paragraph (2)(A), by striking ``and 
                     at the end;
                         (ii) in paragraph (2)(B), by striking the 
                     period and inserting ``; and; and
                         (iii) by inserting after paragraph (2) the 
                     following:
           ``(3) a provider of remote computing service or electronic 
       communication service to the public shall not knowingly divulge 
       a record or other information pertaining to a subscriber to or 
       customer of such service (not including the contents of 
       communications covered by paragraph (1) or (2)) to any 
       governmental entity.;
                   (C) in subsection (b), by striking ``Exceptions.--A 
               person or entity and inserting ``Exceptions for 
               disclosure of communications.-- A provider described in 
               subsection (a);
                   (D) in subsection (b)(6)--
                         (i) in subparagraph (A)(ii), by striking 
                     ``or;
                         (ii) in subparagraph (B), by striking the 
                     period and inserting ``; or; and
                         (iii) by adding after subparagraph (B) the 
                     following:
                   ``(C) if the provider reasonably believes that an 
               emergency involving immediate danger of death or serious 
               physical injury to any person requires disclosure of the 
               information without delay.; and
                   (E) by inserting after subsection (b) the following:
``(c) Exceptions for Disclosure of Customer Records.--A provider

described in subsection (a) may divulge a record or other information pertaining to a subscriber to or customer of such service (not including the contents of communications covered by subsection (a)(1) or (a)(2))--

``(1) as otherwise authorized in section 2703;
           ``(2) with the lawful consent of the customer or subscriber;
           ``(3) as may be necessarily incident to the rendition of the 
       service or to the protection of the rights or property of the 
       provider of that service;

Page 115 STAT. 285Edit

``(4) to a governmental entity, if the provider reasonably 
       believes that an emergency involving immediate danger of death 
       or serious physical injury to any person justifies disclosure of 
       the information; or
           ``(5) to any person other than a governmental entity..
           (2) Technical and conforming amendment.--The table of 
       sections for chapter 121 of title 18, United States Code, is 
       amended by striking the item relating to section 2702 and 
       inserting the following:

``2702. Voluntary disclosure of customer communications or records..

(b) Requirements for Government Access.--
           (1) In general.--Section 2703 of title 18, United States 
       Code, is amended--
                   (A) by striking the section heading and inserting 
               the following:

``Sec. 2703. Required disclosure of customer communications or

records;
(B) in subsection (c) by redesignating paragraph (2) 
               as paragraph (3);
                   (C) in subsection (c)(1)--
                         (i) by striking ``(A) Except as provided in 
                     subparagraph (B), a provider of electronic 
                     communication service or remote computing service 
                     may and inserting ``A governmental entity may 
                     require a provider of electronic communication 
                     service or remote computing service to;
                         (ii) by striking ``covered by subsection (a) 
                     or (b) of this section) to any person other than a 
                     governmental entity.
                   ``(B) A provider of electronic communication service 
               or remote computing service shall disclose a record or 
               other information pertaining to a subscriber to or 
               customer of such service (not including the contents of 
               communications covered by subsection (a) or (b) of this 
               section) to a governmental entity and inserting ``);
                         (iii) by redesignating subparagraph (C) as 
                     paragraph (2);
                         (iv) by redesignating clauses (i), (ii), 
                     (iii), and (iv) as subparagraphs (A), (B), (C), 
                     and (D), respectively;
                         (v) in subparagraph (D) (as redesignated) by 
                     striking the period and inserting ``; or; and
                         (vi) by inserting after subparagraph (D) (as 
                     redesignated) the following:
                   ``(E) seeks information under paragraph (2).; and
                   (D) in paragraph (2) (as redesignated) by striking 
               ``subparagraph (B) and insert ``paragraph (1).
           (2) Technical and conforming amendment.--The table of 
       sections for chapter 121 of title 18, United States Code, is 
       amended by striking the item relating to section 2703 and 
       inserting the following:

``2703. Required disclosure of customer communications or records..

SEC. 213. AUTHORITY FOR DELAYING NOTICE OF THE EXECUTION OF A WARRANT.

Section 3103a of title 18, United States Code, is amended--

Page 115 STAT. 286Edit

(1) by inserting ``(a) In General.-- before ``In 
       addition; and
           (2) by adding at the end the following:
``(b) Delay.--With respect to the issuance of any warrant or court

order under this section, or any other rule of law, to search for and seize any property or material that constitutes evidence of a criminal offense in violation of the laws of the United States, any notice required, or that may be required, to be given may be delayed if--

``(1) the court finds reasonable cause to believe that 
       providing immediate notification of the execution of the warrant 
       may have an adverse result (as defined in section 2705);
           ``(2) the warrant prohibits the seizure of any tangible 
       property, any wire or electronic communication (as defined in 
       section 2510), or, except as expressly provided in chapter 121, 
       any stored wire or electronic information, except where the 
       court finds reasonable necessity for the seizure; and
           ``(3) the warrant provides for the giving of such notice 
       within a reasonable period of its execution, which period may 
       thereafter be extended by the court for good cause shown..

SEC. 214. PEN REGISTER AND TRAP AND TRACE AUTHORITY UNDER FISA.

(a) Applications and Orders.--Section 402 of the Foreign

Intelligence Surveillance Act of 1978 (50 U.S.C. 1842) is amended--

(1) in subsection (a)(1), by striking ``for any 
       investigation to gather foreign intelligence information or 
       information concerning international terrorism and inserting 
       ``for any investigation to obtain foreign intelligence 
       information not concerning a United States person or to protect 
       against international terrorism or clandestine intelligence 
       activities, provided that such investigation of a United States 
       person is not conducted solely upon the basis of activities 
       protected by the first amendment to the Constitution;
           (2) by amending subsection (c)(2) to read as follows:
           ``(2) a certification by the applicant that the information 
       likely to be obtained is foreign intelligence information not 
       concerning a United States person or is relevant to an ongoing 
       investigation to protect against international terrorism or 
       clandestine intelligence activities, provided that such 
       investigation of a United States person is not conducted solely 
       upon the basis of activities protected by the first amendment to 
       the Constitution.;
           (3) by striking subsection (c)(3); and
           (4) by amending subsection (d)(2)(A) to read as follows:
                   ``(A) shall specify--
                         ``(i) the identity, if known, of the person 
                     who is the subject of the investigation;
                         ``(ii) the identity, if known, of the person 
                     to whom is leased or in whose name is listed the 
                     telephone line or other facility to which the pen 
                     register or trap and trace device is to be 
                     attached or applied;
                         ``(iii) the attributes of the communications 
                     to which the order applies, such as the number or 
                     other identifier, and, if known, the location of 
                     the telephone line or other facility to which the 
                     pen register or trap and trace device is to be 
                     attached or applied and,

Page 115 STAT. 287Edit

in the case of a trap and trace device, the 
                     geographic limits of the trap and trace order..
(b) Authorization During Emergencies.--Section 403 of the Foreign

Intelligence Surveillance Act of 1978 (50 U.S.C. 1843) is amended--

(1) in subsection (a), by striking ``foreign intelligence 
       information or information concerning international terrorism 
       and inserting ``foreign intelligence information not concerning 
       a United States person or information to protect against 
       international terrorism or clandestine intelligence activities, 
       provided that such investigation of a United States person is 
       not conducted solely upon the basis of activities protected by 
       the first amendment to the Constitution; and
           (2) in subsection (b)(1), by striking ``foreign intelligence 
       information or information concerning international terrorism 
       and inserting ``foreign intelligence information not concerning 
       a United States person or information to protect against 
       international terrorism or clandestine intelligence activities, 
       provided that such investigation of a United States person is 
       not conducted solely upon the basis of activities protected by 
       the first amendment to the Constitution.

SEC. 215. ACCESS TO RECORDS AND OTHER ITEMS UNDER THE FOREIGN

INTELLIGENCE SURVEILLANCE ACT.
Title V of the Foreign Intelligence Surveillance Act of 1978 (50

U.S.C. 1861 et seq.) is amended by striking sections 501 through 503 and inserting the following:

``SEC. 501. <<NOTE: 50 USC 1861.>> ACCESS TO CERTAIN BUSINESS RECORDS

FOR FOREIGN INTELLIGENCE AND INTERNATIONAL TERRORISM 
           INVESTIGATIONS.
``(a)(1) The Director of the Federal Bureau of Investigation or a

designee of the Director (whose rank shall be no lower than Assistant Special Agent in Charge) may make an application for an order requiring the production of any tangible things (including books, records, papers, documents, and other items) for an investigation to protect against international terrorism or clandestine intelligence activities, provided that such investigation of a United States person is not conducted solely upon the basis of activities protected by the first amendment to the Constitution.

``(2) An investigation conducted under this section shall--
           ``(A) be conducted under guidelines approved by the Attorney 
       General under Executive Order 12333 (or a successor order); and
           ``(B) not be conducted of a United States person solely upon 
       the basis of activities protected by the first amendment to the 
       Constitution of the United States.
``(b) Each application under this section--
           ``(1) shall be made to--
                   ``(A) a judge of the court established by section 
               103(a); or
                   ``(B) a United States Magistrate Judge under chapter 
               43 of title 28, United States Code, who is publicly 
               designated by the Chief Justice of the United States to 
               have the power to hear applications and grant orders for 
               the production of tangible things under this section on 
               behalf of a judge of that court; and

Page 115 STAT. 288Edit

``(2) shall specify that the records concerned are sought 
       for an authorized investigation conducted in accordance with 
       subsection (a)(2) to obtain foreign intelligence information not 
       concerning a United States person or to protect against 
       international terrorism or clandestine intelligence activities.
``(c)(1) Upon an application made pursuant to this section, the

judge shall enter an ex parte order as requested, or as modified, approving the release of records if the judge finds that the application meets the requirements of this section.

``(2) An order under this subsection shall not disclose that it is

issued for purposes of an investigation described in subsection (a).

``(d) No person shall disclose to any other person (other than those

persons necessary to produce the tangible things under this section) that the Federal Bureau of Investigation has sought or obtained tangible things under this section.

``(e) A person who, in good faith, produces tangible things under an

order pursuant to this section shall not be liable to any other person for such production. Such production shall not be deemed to constitute a waiver of any privilege in any other proceeding or context.

``SEC. 502. <<NOTE: 50 USC 1862.>> CONGRESSIONAL OVERSIGHT.

``(a) On a semiannual basis, the Attorney General shall fully inform

the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate concerning all requests for the production of tangible things under section 402.

``(b) On a semiannual basis, the Attorney General shall provide to

the Committees on the Judiciary of the House of Representatives and the Senate a report setting forth with respect to the preceding 6-month period--

``(1) the total number of applications made for orders 
       approving requests for the production of tangible things under 
       section 402; and
           ``(2) the total number of such orders either granted, 
       modified, or denied..

SEC. 216. MODIFICATION OF AUTHORITIES RELATING TO USE OF PEN REGISTERS

AND TRAP AND TRACE DEVICES.
(a) General Limitations.--Section 3121(c) of title 18, United States

Code, is amended--

(1) by inserting ``or trap and trace device after ``pen 
       register;
           (2) by inserting ``, routing, addressing, after 
       ``dialing; and
           (3) by striking ``call processing and inserting ``the 
       processing and transmitting of wire or electronic communications 
       so as not to include the contents of any wire or electronic 
       communications.
(b) Issuance of Orders.--
           (1) In general.--Section 3123(a) of title 18, United States 
       Code, is amended to read as follows:
``(a) In General.--
           ``(1) Attorney for the government.--Upon an application made 
       under section 3122(a)(1), the court shall enter an ex parte 
       order authorizing the installation and use of a pen register or 
       trap and trace device anywhere within the United States, if the 
       court finds that the attorney for the Government

Page 115 STAT. 289Edit

has certified to the court that the information likely to be 
       obtained by such installation and use is relevant to an ongoing 
       criminal investigation. The order, upon service of that order, 
       shall apply to any person or entity providing wire or electronic 
       communication service in the United States whose assistance may 
       facilitate the execution of the order. Whenever such an order is 
       served on any person or entity not specifically named in the 
       order, upon request of such person or entity, the attorney for 
       the Government or law enforcement or investigative officer that 
       is serving the order shall provide written or electronic 
       certification that the order applies to the person or entity 
       being served.
           ``(2) State investigative or law enforcement officer.--Upon 
       an application made under section 3122(a)(2), the court shall 
       enter an ex parte order authorizing the installation and use of 
       a pen register or trap and trace device within the jurisdiction 
       of the court, if the court finds that the State law enforcement 
       or investigative officer has certified to the court that the 
       information likely to be obtained by such installation and use 
       is relevant to an ongoing criminal investigation.
           ``(3)(A) Where the law enforcement agency implementing an ex 
       parte order under this subsection seeks to do so by installing 
       and using its own pen register or trap and trace device on a 
       packet-switched data network of a provider of electronic 
       communication service to the public, the agency shall ensure 
       that a record will be maintained which will identify--
                   ``(i) any officer or officers who installed the 
               device and any officer or officers who accessed the 
               device to obtain information from the network;
                   ``(ii) the date and time the device was installed, 
               the date and time the device was uninstalled, and the 
               date, time, and duration of each time the device is 
               accessed to obtain information;
                   ``(iii) the configuration of the device at the time 
               of its installation and any subsequent modification 
               thereof; and
                   ``(iv) any information which has been collected by 
               the device.
       To the extent that the pen register or trap and trace device can 
       be set automatically to record this information electronically, 
       the record shall be maintained electronically throughout the 
       installation and use of such device.
           ``(B) The record maintained under subparagraph (A) shall be 
       provided ex parte and under seal to the court which entered the 
       ex parte order authorizing the installation and use of the 
       device within 30 days after termination of the order (including 
       any extensions thereof)..
           (2) Contents of order.--Section 3123(b)(1) of title 18, 
       United States Code, is amended--
                   (A) in subparagraph (A)--
                         (i) by inserting ``or other facility after 
                     ``telephone line; and
                         (ii) by inserting before the semicolon at the 
                     end ``or applied; and
                   (B) by striking subparagraph (C) and inserting the 
               following:

Page 115 STAT. 290Edit

``(C) the attributes of the communications to which 
               the order applies, including the number or other 
               identifier and, if known, the location of the telephone 
               line or other facility to which the pen register or trap 
               and trace device is to be attached or applied, and, in 
               the case of an order authorizing installation and use of 
               a trap and trace device under subsection (a)(2), the 
               geographic limits of the order; and.
           (3) Nondisclosure requirements.--Section 3123(d)(2) of title 
       18, United States Code, is amended--
                   (A) by inserting ``or other facility after ``the 
               line; and
                   (B) by striking ``, or who has been ordered by the 
               court and inserting ``or applied, or who is obligated 
               by the order.
(c) Definitions.--
           (1) Court of competent jurisdiction.--Section 3127(2) of 
       title 18, United States Code, is amended by striking 
       subparagraph (A) and inserting the following:
                   ``(A) any district court of the United States 
               (including a magistrate judge of such a court) or any 
               United States court of appeals having jurisdiction over 
               the offense being investigated; or.
           (2) Pen register.--Section 3127(3) of title 18, United 
       States Code, is amended--
                   (A) by striking ``electronic or other impulses and 
               all that follows through ``is attached and inserting 
               ``dialing, routing, addressing, or signaling information 
               transmitted by an instrument or facility from which a 
               wire or electronic communication is transmitted, 
               provided, however, that such information shall not 
               include the contents of any communication; and
                   (B) by inserting ``or process after ``device 
               each place it appears.
           (3) Trap and trace device.--Section 3127(4) of title 18, 
       United States Code, is amended--
                   (A) by striking ``of an instrument and all that 
               follows through the semicolon and inserting ``or other 
               dialing, routing, addressing, and signaling information 
               reasonably likely to identify the source of a wire or 
               electronic communication, provided, however, that such 
               information shall not include the contents of any 
               communication;; and
                   (B) by inserting ``or process after ``a device.
           (4) Conforming amendment.--Section 3127(1) of title 18, 
       United States Code, is amended--
                   (A) by striking ``and; and
                   (B) by inserting ``, and `contents'  after 
               ``electronic communication service.
           (5) Technical amendment.--Section 3124(d) of title 18, 
       United States Code, is amended by striking ``the terms of.
           (6) Conforming amendment.--Section 3124(b) of title 18, 
       United States Code, is amended by inserting ``or other 
       facility after ``the appropriate line.

SEC. 217. INTERCEPTION OF COMPUTER TRESPASSER COMMUNICATIONS.

Chapter 119 of title 18, United States Code, is amended--

Page 115 STAT. 291Edit

(1) in section 2510--
                   (A) in paragraph (18), by striking ``and at the 
               end;
                   (B) in paragraph (19), by striking the period and 
               inserting a semicolon; and
                   (C) by inserting after paragraph (19) the following:
           ``(20) `protected computer' has the meaning set forth in 
       section 1030; and
           ``(21) `computer trespasser'--
                   ``(A) means a person who accesses a protected 
               computer without authorization and thus has no 
               reasonable expectation of privacy in any communication 
               transmitted to, through, or from the protected computer; 
               and
                   ``(B) does not include a person known by the owner 
               or operator of the protected computer to have an 
               existing contractual relationship with the owner or 
               operator of the protected computer for access to all or 
               part of the protected computer.; and
           (2) in section 2511(2), by inserting at the end the 
       following:
``(i) It shall not be unlawful under this chapter for a person

acting under color of law to intercept the wire or electronic communications of a computer trespasser transmitted to, through, or from the protected computer, if--

``(I) the owner or operator of the protected computer 
       authorizes the interception of the computer trespasser's 
       communications on the protected computer;
           ``(II) the person acting under color of law is lawfully 
       engaged in an investigation;
           ``(III) the person acting under color of law has reasonable 
       grounds to believe that the contents of the computer 
       trespasser's communications will be relevant to the 
       investigation; and
           ``(IV) such interception does not acquire communications 
       other than those transmitted to or from the computer 
       trespasser..

SEC. 218. FOREIGN INTELLIGENCE INFORMATION.

Sections 104(a)(7)(B) and section 303(a)(7)(B) (50 U.S.C.

1804(a)(7)(B) and 1823(a)(7)(B)) of the Foreign Intelligence Surveillance Act of 1978 are each amended by striking ``the purpose and inserting ``a significant purpose.

SEC. 219. <<NOTE: 18 USC app.>> SINGLE-JURISDICTION SEARCH WARRANTS FOR

TERRORISM.
Rule 41(a) of the Federal Rules of Criminal Procedure is amended by

inserting after ``executed the following: ``and (3) in an investigation of domestic terrorism or international terrorism (as defined in section 2331 of title 18, United States Code), by a Federal magistrate judge in any district in which activities related to the terrorism may have occurred, for a search of property or for a person within or outside the district.

SEC. 220. NATIONWIDE SERVICE OF SEARCH WARRANTS FOR ELECTRONIC EVIDENCE.

(a) In General.--Chapter 121 of title 18, United States Code, is

amended--

(1) in section 2703, by striking ``under the Federal Rules 
       of Criminal Procedure every place it appears and inserting 
       ``using the procedures described in the Federal Rules of

Page 115 STAT. 292Edit

Criminal Procedure by a court with jurisdiction over the offense 
       under investigation; and
           (2) in section 2711--
                   (A) in paragraph (1), by striking ``and;
                   (B) in paragraph (2), by striking the period and 
               inserting ``; and; and
                   (C) by inserting at the end the following:
           ``(3) the term `court of competent jurisdiction' has the 
       meaning assigned by section 3127, and includes any Federal court 
       within that definition, without geographic limitation..
(b) Conforming Amendment.--Section 2703(d) of title 18, United

States Code, is amended by striking ``described in section 3127(2)(A).

SEC. 221. TRADE SANCTIONS.

(a) In general.--The Trade Sanctions Reform and Export Enhancement

Act of 2000 (Public Law 106-387; 114 Stat. 1549A-67) is amended--

(1) by amending section 904(2)(C) to read as follows:
                   ``(C) used to facilitate the design, development, or 
               production of chemical or biological weapons, missiles, 
               or weapons of mass destruction.;
           (2) in section 906(a)(1)--
                   (A) by inserting ``, the Taliban or the territory of 
               Afghanistan controlled by the Taliban, after ``Cuba; 
               and
                   (B) by inserting ``, or in the territory of 
               Afghanistan controlled by the Taliban, after ``within 
               such country; and
           (3) in section 906(a)(2), by inserting ``, or to any other 
       entity in Syria or North Korea after ``Korea.
(b) Application <<NOTE: 22 USC 7210.>> of the Trade Sanctions Reform

and Export Enhancement Act.--Nothing in the Trade Sanctions Reform and Export Enhancement Act of 2000 shall limit the application or scope of any law establishing criminal or civil penalties, including any Executive order or regulation promulgated pursuant to such laws (or similar or successor laws), for the unlawful export of any agricultural commodity, medicine, or medical device to--

(1) a foreign organization, group, or person designated 
       pursuant to Executive Order No. 12947 of January 23, 1995, as 
       amended;
           (2) a Foreign Terrorist Organization pursuant to the 
       Antiterrorism and Effective Death Penalty Act of 1996 (Public 
       Law 104-132);
           (3) a foreign organization, group, or person designated 
       pursuant to Executive Order No. 13224 (September 23, 2001);
           (4) any narcotics trafficking entity designated pursuant to 
       Executive Order No. 12978 (October 21, 1995) or the Foreign 
       Narcotics Kingpin Designation Act (Public Law 106-120); or
           (5) any foreign organization, group, or persons subject to 
       any restriction for its involvement in weapons of mass 
       destruction or missile proliferation.

SEC. 222. <<NOTE: 18 USC 3124 note.>> ASSISTANCE TO LAW ENFORCEMENT

AGENCIES.
Nothing in this Act shall impose any additional technical obligation

or requirement on a provider of a wire or electronic communication service or other person to furnish facilities or technical assistance. A provider of a wire or electronic communication service,

Page 115 STAT. 293

landlord, custodian, or other person who furnishes facilities or technical assistance pursuant to section 216 shall be reasonably compensated for such reasonable expenditures incurred in providing such facilities or assistance.

SEC. 223. CIVIL LIABILITY FOR CERTAIN UNAUTHORIZED DISCLOSURES.

(a) Section 2520 of title 18, United States Code, is amended--
           (1) in subsection (a), after ``entity, by inserting ``, 
       other than the United States,;
           (2) by adding at the end the following:
``(f) Administrative Discipline.--If a court or appropriate

department or agency determines that the United States or any of its departments or agencies has violated any provision of this chapter, and the court or appropriate department or agency finds that the circumstances surrounding the violation raise serious questions about whether or not an officer or employee of the United States acted willfully or intentionally with respect to the violation, the department or agency shall, upon receipt of a true and correct copy of the decision and findings of the court or appropriate department or agency promptly initiate a proceeding to determine whether disciplinary action against the officer or employee is warranted. If the head of the department or agency involved determines that disciplinary action is not warranted, he or she shall notify the Inspector General with jurisdiction over the department or agency concerned and shall provide the Inspector General with the reasons for such determination.; and

(3) by adding a new subsection (g), as follows:
``(g) Improper Disclosure Is Violation.--Any willful disclosure or

use by an investigative or law enforcement officer or governmental entity of information beyond the extent permitted by section 2517 is a violation of this chapter for purposes of section 2520(a)..

(b) Section 2707 of title 18, United States Code, is amended--
           (1) in subsection (a), after ``entity, by inserting ``, 
       other than the United States,;
           (2) by striking subsection (d) and inserting the following:
``(d) Administrative Discipline.--If a court or appropriate

department or agency determines that the United States or any of its departments or agencies has violated any provision of this chapter, and the court or appropriate department or agency finds that the circumstances surrounding the violation raise serious questions about whether or not an officer or employee of the United States acted willfully or intentionally with respect to the violation, the department or agency shall, upon receipt of a true and correct copy of the decision and findings of the court or appropriate department or agency promptly initiate a proceeding to determine whether disciplinary action against the officer or employee is warranted. If the head of the department or agency involved determines that disciplinary action is not warranted, he or she shall notify the Inspector General with jurisdiction over the department or agency concerned and shall provide the Inspector General with the reasons for such determination.; and

(3) by adding a new subsection (g), as follows:
``(g) Improper Disclosure.--Any willful disclosure of a `record', as

that term is defined in section 552a(a) of title 5, United States Code, obtained by an investigative or law enforcement officer, or a governmental entity, pursuant to section 2703 of this title, or

Page 115 STAT. 294

from a device installed pursuant to section 3123 or 3125 of this title, that is not a disclosure made in the proper performance of the official functions of the officer or governmental entity making the disclosure, is a violation of this chapter. This provision shall not apply to information previously lawfully disclosed (prior to the commencement of any civil or administrative proceeding under this chapter) to the public by a Federal, State, or local governmental entity or by the plaintiff in a civil action under this chapter..

(c)(1) Chapter 121 of title 18, United States Code, is amended by

adding at the end the following:

``Sec. 2712. Civil actions against the United States

``(a) In General.--Any person who is aggrieved by any willful

violation of this chapter or of chapter 119 of this title or of sections 106(a), 305(a), or 405(a) of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) may commence an action in United States District Court against the United States to recover money damages. In any such action, if a person who is aggrieved successfully establishes such a violation of this chapter or of chapter 119 of this title or of the above specific provisions of title 50, the Court may assess as damages--

``(1) actual damages, but not less than $10,000, whichever 
       amount is greater; and
           ``(2) litigation costs, reasonably incurred.
``(b) Procedures.--(1) Any action against the United States under

this section may be commenced only after a claim is presented to the appropriate department or agency under the procedures of the Federal Tort Claims Act, as set forth in title 28, United States Code.

``(2) Any action against the United States under this section shall

be forever barred unless it is presented in writing to the appropriate Federal agency within 2 years after such claim accrues or unless action is begun within 6 months after the date of mailing, by certified or registered mail, of notice of final denial of the claim by the agency to which it was presented. The claim shall accrue on the date upon which the claimant first has a reasonable opportunity to discover the violation.

``(3) Any action under this section shall be tried to the court

without a jury.

``(4) Notwithstanding any other provision of law, the procedures set

forth in section 106(f), 305(g), or 405(f) of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) shall be the exclusive means by which materials governed by those sections may be reviewed.

``(5) An amount equal to any award against the United States under

this section shall be reimbursed by the department or agency concerned to the fund described in section 1304 of title 31, United States Code, out of any appropriation, fund, or other account (excluding any part of such appropriation, fund, or account that is available for the enforcement of any Federal law) that is available for the operating expenses of the department or agency concerned.

``(c) Administrative Discipline.--If a court or appropriate

department or agency determines that the United States or any of its departments or agencies has violated any provision of this chapter, and the court or appropriate department or agency finds that the circumstances surrounding the violation raise serious questions about whether or not an officer or employee of the United

Page 115 STAT. 295

States acted willfully or intentionally with respect to the violation, the department or agency shall, upon receipt of a true and correct copy of the decision and findings of the court or appropriate department or agency promptly initiate a proceeding to determine whether disciplinary action against the officer or employee is warranted. If the head of the department or agency involved determines that disciplinary action is not warranted, he or she shall notify the Inspector General with jurisdiction over the department or agency concerned and shall provide the Inspector General with the reasons for such determination.

``(d) Exclusive Remedy.--Any action against the United States under

this subsection shall be the exclusive remedy against the United States for any claims within the purview of this section.

``(e) Stay of Proceedings.--(1) Upon the motion of the United

States, the court shall stay any action commenced under this section if the court determines that civil discovery will adversely affect the ability of the Government to conduct a related investigation or the prosecution of a related criminal case. Such a stay shall toll the limitations periods of paragraph (2) of subsection (b).

``(2) In this subsection, the terms `related criminal case' and

`related investigation' mean an actual prosecution or investigation in progress at the time at which the request for the stay or any subsequent motion to lift the stay is made. In determining whether an investigation or a criminal case is related to an action commenced under this section, the court shall consider the degree of similarity between the parties, witnesses, facts, and circumstances involved in the 2 proceedings, without requiring that any one or more factors be identical.

``(3) In requesting a stay under paragraph (1), the Government may,

in appropriate cases, submit evidence ex parte in order to avoid disclosing any matter that may adversely affect a related investigation or a related criminal case. If the Government makes such an ex parte submission, the plaintiff shall be given an opportunity to make a submission to the court, not ex parte, and the court may, in its discretion, request further information from either party..

(2) The table of sections at the beginning of chapter 121 is amended

to read as follows:

``2712. Civil action against the United States..

SEC. 224. <<NOTE: 18 USC 2510 note.>> SUNSET.

(a) In General.--Except as provided in subsection (b), this title

and the amendments made by this title (other than sections 203(a), 203(c), 205, 208, 210, 211, 213, 216, 219, 221, and 222, and the amendments made by those sections) shall cease to have effect on December 31, 2005.

(b) Exception.--With respect to any particular foreign intelligence

investigation that began before the date on which the provisions referred to in subsection (a) cease to have effect, or with respect to any particular offense or potential offense that began or occurred before the date on which such provisions cease to have effect, such provisions shall continue in effect.

SEC. 225. IMMUNITY FOR COMPLIANCE WITH FISA WIRETAP.

Section 105 of the Foreign Intelligence Surveillance Act of 1978 (50

U.S.C. 1805) is amended by inserting after subsection (g) the following:

Page 115 STAT. 296

``(h) No cause of action shall lie in any court against any provider

of a wire or electronic communication service, landlord, custodian, or other person (including any officer, employee, agent, or other specified person thereof) that furnishes any information, facilities, or technical assistance in accordance with a court order or request for emergency assistance under this Act..

TITLE <<NOTE: International Money Laundering Abatement and Financial 
  Anti-Terrorism Act of 2001.>> III--INTERNATIONAL MONEY LAUNDERING

ABATEMENT AND ANTI-TERRORIST FINANCING ACT OF 2001

SEC. 301. <<NOTE: 31 USC 5301 note.>> SHORT TITLE.

This title may be cited as the ``International Money Laundering

Abatement and Financial Anti-Terrorism Act of 2001.


SEC. 302. <<NOTE: 31 USC 5311 note.>> FINDINGS AND PURPOSES.

(a) Findings.--The Congress finds that--
           (1) money laundering, estimated by the International 
       Monetary Fund to amount to between 2 and 5 percent of global 
       gross domestic product, which is at least $600,000,000,000 
       annually, provides the financial fuel that permits transnational 
       criminal enterprises to conduct and expand their operations to 
       the detriment of the safety and security of American citizens;
           (2) money laundering, and the defects in financial 
       transparency on which money launderers rely, are critical to the 
       financing of global terrorism and the provision of funds for 
       terrorist attacks;
           (3) money launderers subvert legitimate financial mechanisms 
       and banking relationships by using them as protective covering 
       for the movement of criminal proceeds and the financing of crime 
       and terrorism, and, by so doing, can threaten the safety of 
       United States citizens and undermine the integrity of United 
       States financial institutions and of the global financial and 
       trading systems upon which prosperity and growth depend;
           (4) certain jurisdictions outside of the United States that 
       offer ``offshore banking and related facilities designed to 
       provide anonymity, coupled with weak financial supervisory and 
       enforcement regimes, provide essential tools to disguise 
       ownership and movement of criminal funds, derived from, or used 
       to commit, offenses ranging from narcotics trafficking, 
       terrorism, arms smuggling, and trafficking in human beings, to 
       financial frauds that prey on law-abiding citizens;
           (5) transactions involving such offshore jurisdictions make 
       it difficult for law enforcement officials and regulators to 
       follow the trail of money earned by criminals, organized 
       international criminal enterprises, and global terrorist 
       organizations;
           (6) correspondent banking facilities are one of the banking 
       mechanisms susceptible in some circumstances to manipulation by 
       foreign banks to permit the laundering of funds by hiding the 
       identity of real parties in interest to financial transactions;
           (7) private banking services can be susceptible to 
       manipulation by money launderers, for example corrupt foreign 
       government officials, particularly if those services include the 
       creation of offshore accounts and facilities for large personal 
       funds transfers to channel funds into accounts around the globe;

Page 115 STAT. 297

(8) United States anti-money laundering efforts are impeded 
       by outmoded and inadequate statutory provisions that make 
       investigations, prosecutions, and forfeitures more difficult, 
       particularly in cases in which money laundering involves foreign 
       persons, foreign banks, or foreign countries;
           (9) the ability to mount effective counter-measures to 
       international money launderers requires national, as well as 
       bilateral and multilateral action, using tools specially 
       designed for that effort; and
           (10) the Basle Committee on Banking Regulation and 
       Supervisory Practices and the Financial Action Task Force on 
       Money Laundering, of both of which the United States is a 
       member, have each adopted international anti-money laundering 
       principles and recommendations.
(b) Purposes.--The purposes of this title are--
           (1) to increase the strength of United States measures to 
       prevent, detect, and prosecute international money laundering 
       and the financing of terrorism;
           (2) to ensure that--
                   (A) banking transactions and financial relationships 
               and the conduct of such transactions and relationships, 
               do not contravene the purposes of subchapter II of 
               chapter 53 of title 31, United States Code, section 21 
               of the Federal Deposit Insurance Act, or chapter 2 of 
               title I of Public Law 91-508 (84 Stat. 1116), or 
               facilitate the evasion of any such provision; and
                   (B) the purposes of such provisions of law continue 
               to be fulfilled, and such provisions of law are 
               effectively and efficiently administered;
           (3) to strengthen the provisions put into place by the Money 
       Laundering Control Act of 1986 (18 U.S.C. 981 note), especially 
       with respect to crimes by non-United States nationals and 
       foreign financial institutions;
           (4) to provide a clear national mandate for subjecting to 
       special scrutiny those foreign jurisdictions, financial 
       institutions operating outside of the United States, and classes 
       of international transactions or types of accounts that pose 
       particular, identifiable opportunities for criminal abuse;
           (5) to provide the Secretary of the Treasury (in this title 
       referred to as the ``Secretary) with broad discretion, subject 
       to the safeguards provided by the Administrative Procedure Act 
       under title 5, United States Code, to take measures tailored to 
       the particular money laundering problems presented by specific 
       foreign jurisdictions, financial institutions operating outside 
       of the United States, and classes of international transactions 
       or types of accounts;
           (6) to ensure that the employment of such measures by the 
       Secretary permits appropriate opportunity for comment by 
       affected financial institutions;
           (7) to provide guidance to domestic financial institutions 
       on particular foreign jurisdictions, financial institutions 
       operating outside of the United States, and classes of 
       international transactions that are of primary money laundering 
       concern to the United States Government;
           (8) to ensure that the forfeiture of any assets in 
       connection with the anti-terrorist efforts of the United States 
       permits

Page 115 STAT. 298

for adequate challenge consistent with providing due process 
       rights;
           (9) to clarify the terms of the safe harbor from civil 
       liability for filing suspicious activity reports;
           (10) to strengthen the authority of the Secretary to issue 
       and administer geographic targeting orders, and to clarify that 
       violations of such orders or any other requirement imposed under 
       the authority contained in chapter 2 of title I of Public Law 
       91-508 and subchapters II and III of chapter 53 of title 31, 
       United States Code, may result in criminal and civil penalties;
           (11) to ensure that all appropriate elements of the 
       financial services industry are subject to appropriate 
       requirements to report potential money laundering transactions 
       to proper authorities, and that jurisdictional disputes do not 
       hinder examination of compliance by financial institutions with 
       relevant reporting requirements;
           (12) to strengthen the ability of financial institutions to 
       maintain the integrity of their employee population; and
           (13) to strengthen measures to prevent the use of the United 
       States financial system for personal gain by corrupt foreign 
       officials and to facilitate the repatriation of any stolen 
       assets to the citizens of countries to whom such assets belong.

SEC. 303. <<NOTE: 31 USC 5311 note.>> 4-YEAR CONGRESSIONAL REVIEW;

EXPEDITED CONSIDERATION.
(a) In General.--Effective <<NOTE: Effective date.>> on and after

the first day of fiscal year 2005, the provisions of this title and the amendments made by this title shall terminate if the Congress enacts a joint resolution, the text after the resolving clause of which is as follows: ``That provisions of the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, and the amendments made thereby, shall no longer have the force of law..

(b) Expedited Consideration.--Any joint resolution submitted

pursuant to this section should be considered by the Congress expeditiously. In particular, it shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Control Act of 1976.

Subtitle A--International Counter Money Laundering and Related Measures

SEC. 311. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL INSTITUTIONS, OR

INTERNATIONAL TRANSACTIONS OF PRIMARY MONEY LAUNDERING 
           CONCERN.
(a) In General.--Subchapter II of chapter 53 of title 31, United

States Code, is amended by inserting after section 5318 the following new section:

``Sec. 5318A. Special measures for jurisdictions, financial

institutions, or international transactions of 
                       primary money laundering concern
``(a) International Counter-Money Laundering Requirements.--
           ``(1) In general.--The Secretary of the Treasury may require 
       domestic financial institutions and domestic financial

Page 115 STAT. 299

agencies to take 1 or more of the special measures described in 
       subsection (b) if the Secretary finds that reasonable grounds 
       exist for concluding that a jurisdiction outside of the United 
       States, 1 or more financial institutions operating outside of 
       the United States, 1 or more classes of transactions within, or 
       involving, a jurisdiction outside of the United States, or 1 or 
       more types of accounts is of primary money laundering concern, 
       in accordance with subsection (c).
           ``(2) Form of requirement.--The special measures described 
       in--
                   ``(A) subsection (b) may be imposed in such sequence 
               or combination as the Secretary shall determine;
                   ``(B) paragraphs (1) through (4) of subsection (b) 
               may be imposed by regulation, order, or otherwise as 
               permitted by law; and
                   ``(C) subsection (b)(5) may be imposed only by 
               regulation.
           ``(3) Duration of orders; rulemaking.--Any order by which a 
       special measure described in paragraphs (1) through (4) of 
       subsection (b) is imposed (other than an order described in 
       section 5326)--
                   ``(A) shall be issued together with a notice of 
               proposed rulemaking relating to the imposition of such 
               special measure; and
                   ``(B) may not remain in effect for more than 120 
               days, except pursuant to a rule promulgated on or before 
               the end of the 120-day period beginning on the date of 
               issuance of such order.
           ``(4) Process for selecting special measures.--In selecting 
       which special measure or measures to take under this subsection, 
       the Secretary of the Treasury--
                   ``(A) shall consult with the Chairman of the Board 
               of Governors of the Federal Reserve System, any other 
               appropriate Federal banking agency, as defined in 
               section 3 of the Federal Deposit Insurance Act, the 
               Secretary of State, the Securities and Exchange 
               Commission, the Commodity Futures Trading Commission, 
               the National Credit Union Administration Board, and in 
               the sole discretion of the Secretary, such other 
               agencies and interested parties as the Secretary may 
               find to be appropriate; and
                   ``(B) shall consider--
                         ``(i) whether similar action has been or is 
                     being taken by other nations or multilateral 
                     groups;
                         ``(ii) whether the imposition of any 
                     particular special measure would create a 
                     significant competitive disadvantage, including 
                     any undue cost or burden associated with 
                     compliance, for financial institutions organized 
                     or licensed in the United States;
                         ``(iii) the extent to which the action or the 
                     timing of the action would have a significant 
                     adverse systemic impact on the international 
                     payment, clearance, and settlement system, or on 
                     legitimate business activities involving the 
                     particular jurisdiction, institution, or class of 
                     transactions; and
                         ``(iv) the effect of the action on United 
                     States national security and foreign policy.

Page 115 STAT. 300

``(5) No limitation on other authority.--This section shall 
       not be construed as superseding or otherwise restricting any 
       other authority granted to the Secretary, or to any other 
       agency, by this subchapter or otherwise.
``(b) Special Measures.--The special measures referred to in

subsection (a), with respect to a jurisdiction outside of the United States, financial institution operating outside of the United States, class of transaction within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts are as follows:

``(1) Recordkeeping and reporting of certain financial 
       transactions.--
                   ``(A) In general.--The Secretary of the Treasury may 
               require any domestic financial institution or domestic 
               financial agency to maintain records, file reports, or 
               both, concerning the aggregate amount of transactions, 
               or concerning each transaction, with respect to a 
               jurisdiction outside of the United States, 1 or more 
               financial institutions operating outside of the United 
               States, 1 or more classes of transactions within, or 
               involving, a jurisdiction outside of the United States, 
               or 1 or more types of accounts if the Secretary finds 
               any such jurisdiction, institution, or class of 
               transactions to be of primary money laundering concern.
                   ``(B) Form of records and reports.--Such records and 
               reports shall be made and retained at such time, in such 
               manner, and for such period of time, as the Secretary 
               shall determine, and shall include such information as 
               the Secretary may determine, including--
                         ``(i) the identity and address of the 
                     participants in a transaction or relationship, 
                     including the identity of the originator of any 
                     funds transfer;
                         ``(ii) the legal capacity in which a 
                     participant in any transaction is acting;
                         ``(iii) the identity of the beneficial owner 
                     of the funds involved in any transaction, in 
                     accordance with such procedures as the Secretary 
                     determines to be reasonable and practicable to 
                     obtain and retain the information; and
                         ``(iv) a description of any transaction.
           ``(2) Information relating to beneficial ownership.--In 
       addition to any other requirement under any other provision of 
       law, the Secretary may require any domestic financial 
       institution or domestic financial agency to take such steps as 
       the Secretary may determine to be reasonable and practicable to 
       obtain and retain information concerning the beneficial 
       ownership of any account opened or maintained in the United 
       States by a foreign person (other than a foreign entity whose 
       shares are subject to public reporting requirements or are 
       listed and traded on a regulated exchange or trading market), or 
       a representative of such a foreign person, that involves a 
       jurisdiction outside of the United States, 1 or more financial 
       institutions operating outside of the United States, 1 or more 
       classes of transactions within, or involving, a jurisdiction 
       outside of the United States, or 1 or more types of accounts if 
       the Secretary finds any such jurisdiction, institution, or 
       transaction or type of account to be of primary money laundering 
       concern.

Page 115 STAT. 301

``(3) Information relating to certain payable-through 
       accounts.--If the Secretary finds a jurisdiction outside of the 
       United States, 1 or more financial institutions operating 
       outside of the United States, or 1 or more classes of 
       transactions within, or involving, a jurisdiction outside of the 
       United States to be of primary money laundering concern, the 
       Secretary may require any domestic financial institution or 
       domestic financial agency that opens or maintains a payable-
       through account in the United States for a foreign financial 
       institution involving any such jurisdiction or any such 
       financial institution operating outside of the United States, or 
       a payable through account through which any such transaction may 
       be conducted, as a condition of opening or maintaining such 
       account--
                   ``(A) to identify each customer (and representative 
               of such customer) of such financial institution who is 
               permitted to use, or whose transactions are routed 
               through, such payable-through account; and
                   ``(B) to obtain, with respect to each such customer 
               (and each such representative), information that is 
               substantially comparable to that which the depository 
               institution obtains in the ordinary course of business 
               with respect to its customers residing in the United 
               States.
           ``(4) Information relating to certain correspondent 
       accounts.--If the Secretary finds a jurisdiction outside of the 
       United States, 1 or more financial institutions operating 
       outside of the United States, or 1 or more classes of 
       transactions within, or involving, a jurisdiction outside of the 
       United States to be of primary money laundering concern, the 
       Secretary may require any domestic financial institution or 
       domestic financial agency that opens or maintains a 
       correspondent account in the United States for a foreign 
       financial institution involving any such jurisdiction or any 
       such financial institution operating outside of the United 
       States, or a correspondent account through which any such 
       transaction may be conducted, as a condition of opening or 
       maintaining such account--
                   ``(A) to identify each customer (and representative 
               of such customer) of any such financial institution who 
               is permitted to use, or whose transactions are routed 
               through, such correspondent account; and
                   ``(B) to obtain, with respect to each such customer 
               (and each such representative), information that is 
               substantially comparable to that which the depository 
               institution obtains in the ordinary course of business 
               with respect to its customers residing in the United 
               States.
           ``(5) Prohibitions or conditions on opening or maintaining 
       certain correspondent or payable-through accounts.--If the 
       Secretary finds a jurisdiction outside of the United States, 1 
       or more financial institutions operating outside of the United 
       States, or 1 or more classes of transactions within, or 
       involving, a jurisdiction outside of the United States to be of 
       primary money laundering concern, the Secretary, in consultation 
       with the Secretary of State, the Attorney General, and the 
       Chairman of the Board of Governors of the Federal Reserve 
       System, may prohibit, or impose conditions upon, the opening or 
       maintaining in the United States of a correspondent account or 
       payable- through account by any domestic financial institution 
       or domestic financial agency for or on behalf of

Page 115 STAT. 302

a foreign banking institution, if such correspondent account or 
       payable-through account involves any such jurisdiction or 
       institution, or if any such transaction may be conducted through 
       such correspondent account or payable-through account.
``(c) Consultations and Information To Be Considered in Finding

Jurisdictions, Institutions, Types of Accounts, or Transactions To Be of Primary Money Laundering Concern.--

``(1) In general.--In making a finding that reasonable 
       grounds exist for concluding that a jurisdiction outside of the 
       United States, 1 or more financial institutions operating 
       outside of the United States, 1 or more classes of transactions 
       within, or involving, a jurisdiction outside of the United 
       States, or 1 or more types of accounts is of primary money 
       laundering concern so as to authorize the Secretary of the 
       Treasury to take 1 or more of the special measures described in 
       subsection (b), the Secretary shall consult with the Secretary 
       of State and the Attorney General.
           ``(2) Additional considerations.--In making a finding 
       described in paragraph (1), the Secretary shall consider in 
       addition such information as the Secretary determines to be 
       relevant, including the following potentially relevant factors:
                   ``(A) Jurisdictional factors.--In the case of a 
               particular jurisdiction--
                         ``(i) evidence that organized criminal groups, 
                     international terrorists, or both, have transacted 
                     business in that jurisdiction;
                         ``(ii) the extent to which that jurisdiction 
                     or financial institutions operating in that 
                     jurisdiction offer bank secrecy or special 
                     regulatory advantages to nonresidents or 
                     nondomiciliaries of that jurisdiction;
                         ``(iii) the substance and quality of 
                     administration of the bank supervisory and 
                     counter-money laundering laws of that 
                     jurisdiction;
                         ``(iv) the relationship between the volume of 
                     financial transactions occurring in that 
                     jurisdiction and the size of the economy of the 
                     jurisdiction;
                         ``(v) the extent to which that jurisdiction is 
                     characterized as an offshore banking or secrecy 
                     haven by credible international organizations or 
                     multilateral expert groups;
                         ``(vi) whether the United States has a mutual 
                     legal assistance treaty with that jurisdiction, 
                     and the experience of United States law 
                     enforcement officials and regulatory officials in 
                     obtaining information about transactions 
                     originating in or routed through or to such 
                     jurisdiction; and
                         ``(vii) the extent to which that jurisdiction 
                     is characterized by high levels of official or 
                     institutional corruption.
                   ``(B) Institutional factors.--In the case of a 
               decision to apply 1 or more of the special measures 
               described in subsection (b) only to a financial 
               institution or institutions, or to a transaction or 
               class of transactions, or to a type of account, or to 
               all 3, within or involving a particular jurisdiction--
                         ``(i) the extent to which such financial 
                     institutions, transactions, or types of accounts 
                     are used to facilitate

Page 115 STAT. 303

or promote money laundering in or through the 
                     jurisdiction;
                         ``(ii) the extent to which such institutions, 
                     transactions, or types of accounts are used for 
                     legitimate business purposes in the jurisdiction; 
                     and
                         ``(iii) the extent to which such action is 
                     sufficient to ensure, with respect to transactions 
                     involving the jurisdiction and institutions 
                     operating in the jurisdiction, that the purposes 
                     of this subchapter continue to be fulfilled, and 
                     to guard against international money laundering 
                     and other financial crimes.
``(d) Notification of Special Measures Invoked by the Secretary.--

Not later <<NOTE: Deadline.>> than 10 days after the date of any action taken by the Secretary of the Treasury under subsection (a)(1), the Secretary shall notify, in writing, the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate of any such action.

``(e) Definitions.--Notwithstanding any other provision of this

subchapter, for purposes of this section and subsections (i) and (j) of section 5318, the following definitions shall apply:

``(1) Bank definitions.--The following definitions shall 
       apply with respect to a bank:
                   ``(A) Account.--The term `account'--
                         ``(i) means a formal banking or business 
                     relationship established to provide regular 
                     services, dealings, and other financial 
                     transactions; and
                         ``(ii) includes a demand deposit, savings 
                     deposit, or other transaction or asset account and 
                     a credit account or other extension of credit.
                   ``(B) Correspondent account.--The term 
               `correspondent account' means an account established to 
               receive deposits from, make payments on behalf of a 
               foreign financial institution, or handle other financial 
               transactions related to such institution.
                   ``(C) Payable-through account.--The term `payable-
               through account' means an account, including a 
               transaction account (as defined in section 19(b)(1)(C) 
               of the Federal Reserve Act), opened at a depository 
               institution by a foreign financial institution by means 
               of which the foreign financial institution permits its 
               customers to engage, either directly or through a 
               subaccount, in banking activities usual in connection 
               with the business of banking in the United States.
           ``(2) Definitions applicable to institutions other than 
       banks.--With respect to any financial institution other than a 
       bank, the Secretary shall, after consultation with the 
       appropriate Federal functional regulators (as defined in section 
       509 of the Gramm-Leach-Bliley Act), define by regulation the 
       term `account', and shall include within the meaning of that 
       term, to the extent, if any, that the Secretary deems 
       appropriate, arrangements similar to payable-through and 
       correspondent accounts.
           ``(3) Regulatory definition of beneficial ownership.--The 
       Secretary shall promulgate regulations defining beneficial 
       ownership of an account for purposes of this section and 
       subsections (i) and (j) of section 5318. Such regulations shall 
       address issues related to an individual's authority to fund,

Page 115 STAT. 304

direct, or manage the account (including, without limitation, 
       the power to direct payments into or out of the account), and an 
       individual's material interest in the income or corpus of the 
       account, and shall ensure that the identification of individuals 
       under this section does not extend to any individual whose 
       beneficial interest in the income or corpus of the account is 
       immaterial.
           ``(4) Other terms.--The Secretary may, by regulation, 
       further define the terms in paragraphs (1), (2), and (3), and 
       define other terms for the purposes of this section, as the 
       Secretary deems appropriate..
(b) 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 5318 the following new item:

``5318A. Special measures for jurisdictions, financial institutions, or

international transactions of primary money laundering 
          concern..

SEC. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS AND PRIVATE

BANKING ACCOUNTS.
(a) In General.--Section 5318 of title 31, United States Code, is

amended by adding at the end the following:

``(i) Due Diligence for United States Private Banking and

Correspondent Bank Accounts Involving Foreign Persons.--

``(1) In general.--Each financial institution that 
       establishes, maintains, administers, or manages a private 
       banking account or a correspondent account in the United States 
       for a non-United States person, including a foreign individual 
       visiting the United States, or a representative of a non-United 
       States person shall establish appropriate, specific, and, where 
       necessary, enhanced, due diligence policies, procedures, and 
       controls that are reasonably designed to detect and report 
       instances of money laundering through those accounts.
           ``(2) Additional standards for certain correspondent 
       accounts.--
                   ``(A) In general.--Subparagraph (B) shall apply if a 
               correspondent account is requested or maintained by, or 
               on behalf of, a foreign bank operating--
                         ``(i) under an offshore banking license; or
                         ``(ii) under a banking license issued by a 
                     foreign country that has been designated--
                                   ``(I) as noncooperative with 
                               international anti-money laundering 
                               principles or procedures by an 
                               intergovernmental group or organization 
                               of which the United States is a member, 
                               with which designation the United States 
                               representative to the group or 
                               organization concurs; or
                                   ``(II) by the Secretary of the 
                               Treasury as warranting special measures 
                               due to money laundering concerns.
                   ``(B) Policies, procedures, and controls.--The 
               enhanced due diligence policies, procedures, and 
               controls required under paragraph (1) shall, at a 
               minimum, ensure that the financial institution in the 
               United States takes reasonable steps--
                         ``(i) to ascertain for any such foreign bank, 
                     the shares of which are not publicly traded, the 
                     identity

Page 115 STAT. 305

of each of the owners of the foreign bank, and the 
                     nature and extent of the ownership interest of 
                     each such owner;
                         ``(ii) to conduct enhanced scrutiny of such 
                     account to guard against money laundering and 
                     report any suspicious transactions under 
                     subsection (g); and
                         ``(iii) to ascertain whether such foreign bank 
                     provides correspondent accounts to other foreign 
                     banks and, if so, the identity of those foreign 
                     banks and related due diligence information, as 
                     appropriate under paragraph (1).
           ``(3) Minimum standards for private banking accounts.--If a 
       private banking account is requested or maintained by, or on 
       behalf of, a non-United States person, then the due diligence 
       policies, procedures, and controls required under paragraph (1) 
       shall, at a minimum, ensure that the financial institution takes 
       reasonable steps--
                   ``(A) to ascertain the identity of the nominal and 
               beneficial owners of, and the source of funds deposited 
               into, such account as needed to guard against money 
               laundering and report any suspicious transactions under 
               subsection (g); and
                   ``(B) to conduct enhanced scrutiny of any such 
               account that is requested or maintained by, or on behalf 
               of, a senior foreign political figure, or any immediate 
               family member or close associate of a senior foreign 
               political figure that is reasonably designed to detect 
               and report transactions that may involve the proceeds of 
               foreign corruption.
           ``(4) Definition.--For purposes of this subsection, the 
       following definitions shall apply:
                   ``(A) Offshore banking license.--The term `offshore 
               banking license' means a license to conduct banking 
               activities which, as a condition of the license, 
               prohibits the licensed entity from conducting banking 
               activities with the citizens of, or with the local 
               currency of, the country which issued the license.
                   ``(B) Private banking account.--The term `private 
               banking account' means an account (or any combination of 
               accounts) that--
                         ``(i) requires a minimum aggregate deposits of 
                     funds or other assets of not less than $1,000,000;
                         ``(ii) is established on behalf of 1 or more 
                     individuals who have a direct or beneficial 
                     ownership interest in the account; and
                         ``(iii) is assigned to, or is administered or 
                     managed by, in whole or in part, an officer, 
                     employee, or agent of a financial institution 
                     acting as a liaison between the financial 
                     institution and the direct or beneficial owner of 
                     the account..
(b) Regulatory <<NOTE: 31 USC 5318 note.>> Authority and Effective

Date.--

(1) Regulatory <<NOTE: Deadline.>> authority.--Not later 
       than 180 days after the date of enactment of this Act, the 
       Secretary, in consultation with the appropriate Federal 
       functional regulators (as defined in section 509 of the Gramm-
       Leach-Bliley Act) of the affected financial institutions, shall 
       further delineate, by regulation, the due diligence policies, 
       procedures, and controls required

Page 115 STAT. 306

under section 5318(i)(1) of title 31, United States Code, as 
       added by this section.
           (2) Effective date.--Section 5318(i) of title 31, United 
       States Code, as added by this section, shall take effect 270 
       days after the date of enactment of this Act, whether or not 
       final regulations are issued under paragraph (1), and the 
       failure to issue such regulations shall in no way affect the 
       enforceability of this section or the amendments made by this 
       section. Section 5318(i) of title 31, United States Code, as 
       added by this section, shall apply with respect to accounts 
       covered by that section 5318(i), that are opened before, on, or 
       after the date of enactment of this Act.

SEC. 313. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS WITH

FOREIGN SHELL BANKS.
(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:

``(j) Prohibition on United States Correspondent Accounts With

Foreign Shell Banks.--

``(1) In general.--A financial institution described in 
       subparagraphs (A) through (G) of section 5312(a)(2) (in this 
       subsection referred to as a `covered financial institution') 
       shall not establish, maintain, administer, or manage a 
       correspondent account in the United States for, or on behalf of, 
       a foreign bank that does not have a physical presence in any 
       country.
           ``(2) Prevention of indirect service to foreign shell 
       banks.--A covered financial institution shall take reasonable 
       steps to ensure that any correspondent account established, 
       maintained, administered, or managed by that covered financial 
       institution in the United States for a foreign bank is not being 
       used by that foreign bank to indirectly provide banking services 
       to another foreign bank that does not have a physical presence 
       in any country. The Secretary of the Treasury shall, by 
       regulation, delineate the reasonable steps necessary to comply 
       with this paragraph.
           ``(3) Exception.--Paragraphs (1) and (2) do not prohibit a 
       covered financial institution from providing a correspondent 
       account to a foreign bank, if the foreign bank--
                   ``(A) is an affiliate of a depository institution, 
               credit union, or foreign bank that maintains a physical 
               presence in the United States or a foreign country, as 
               applicable; and
                   ``(B) is subject to supervision by a banking 
               authority in the country regulating the affiliated 
               depository institution, credit union, or foreign bank 
               described in subparagraph (A), as applicable.
           ``(4) Definitions.--For purposes of this subsection--
                   ``(A) the term `affiliate' means a foreign bank that 
               is controlled by or is under common control with a 
               depository institution, credit union, or foreign bank; 
               and
                   ``(B) the term `physical presence' means a place of 
               business that--
                         ``(i) is maintained by a foreign bank;
                         ``(ii) is located at a fixed address (other 
                     than solely an electronic address) in a country in 
                     which the foreign

Page 115 STAT. 307

bank is authorized to conduct banking activities, 
                     at which location the foreign bank--
                                   ``(I) employs 1 or more individuals 
                               on a full-time basis; and
                                   ``(II) maintains operating records 
                               related to its banking activities; and
                         ``(iii) is subject to inspection by the 
                     banking authority which licensed the foreign bank 
                     to conduct banking activities..
(b) Effective <<NOTE: 31 USC 5318 note.>> Date.--The amendment made

by subsection (a) shall take effect at the end of the 60-day period beginning on the date of enactment of this Act.

SEC. 314. <<NOTE: 31 USC 5311 note.>> COOPERATIVE EFFORTS TO DETER MONEY

LAUNDERING.
(a) Cooperation Among Financial Institutions, Regulatory

Authorities, and Law Enforcement Authorities.--

(1) Regulations.--The <<NOTE: Deadline.>> Secretary shall, 
       within 120 days after the date of enactment of this Act, adopt 
       regulations to encourage further cooperation among financial 
       institutions, their regulatory authorities, and law enforcement 
       authorities, with the specific purpose of encouraging regulatory 
       authorities and law enforcement authorities to share with 
       financial institutions information regarding individuals, 
       entities, and organizations engaged in or reasonably suspected 
       based on credible evidence of engaging in terrorist acts or 
       money laundering activities.
           (2) Cooperation and information sharing procedures.--The 
       regulations adopted under paragraph (1) may include or create 
       procedures for cooperation and information sharing focusing on--
                   (A) matters specifically related to the finances of 
               terrorist groups, the means by which terrorist groups 
               transfer funds around the world and within the United 
               States, including through the use of charitable 
               organizations, nonprofit organizations, and 
               nongovernmental organizations, and the extent to which 
               financial institutions in the United States are 
               unwittingly involved in such finances and the extent to 
               which such institutions are at risk as a result;
                   (B) the relationship, particularly the financial 
               relationship, between international narcotics 
               traffickers and foreign terrorist organizations, the 
               extent to which their memberships overlap and engage in 
               joint activities, and the extent to which they cooperate 
               with each other in raising and transferring funds for 
               their respective purposes; and
                   (C) means of facilitating the identification of 
               accounts and transactions involving terrorist groups and 
               facilitating the exchange of information concerning such 
               accounts and transactions between financial institutions 
               and law enforcement organizations.
           (3) Contents.--The regulations adopted pursuant to paragraph 
       (1) may--
                   (A) require that each financial institution 
               designate 1 or more persons to receive information 
               concerning, and to monitor accounts of individuals, 
               entities, and organizations identified, pursuant to 
               paragraph (1); and
                   (B) further establish procedures for the protection 
               of the shared information, consistent with the capacity, 
               size,

Page 115 STAT. 308

and nature of the institution to which the particular 
               procedures apply.
           (4) Rule of construction.--The receipt of information by a 
       financial institution pursuant to this section shall not relieve 
       or otherwise modify the obligations of the financial institution 
       with respect to any other person or account.
           (5) Use of information.--Information received by a financial 
       institution pursuant to this section shall not be used for any 
       purpose other than identifying and reporting on activities that 
       may involve terrorist acts or money laundering activities.
(b) Cooperation Among Financial Institutions.--Upon notice provided

to the Secretary, 2 or more financial institutions and any association of financial institutions may share information with one another regarding individuals, entities, organizations, and countries suspected of possible terrorist or money laundering activities. A financial institution or association that transmits, receives, or shares such information for the purposes of identifying and reporting activities that may involve terrorist acts or money laundering activities 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 thereof, 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, except where such transmission, receipt, or sharing violates this section or regulations promulgated pursuant to this section.

(c) Rule of Construction.--Compliance with the provisions of this

title requiring or allowing financial institutions and any association of financial institutions to disclose or share information regarding individuals, entities, and organizations engaged in or suspected of engaging in terrorist acts or money laundering activities shall not constitute a violation of the provisions of title V of the Gramm-Leach- Bliley Act (Public Law 106-102).

(d) Reports to the Financial Services Industry on Suspicious

Financial Activities.--At least semiannually, the Secretary shall--

(1) publish a report containing a detailed analysis 
       identifying patterns of suspicious activity and other 
       investigative insights derived from suspicious activity reports 
       and investigations conducted by Federal, State, and local law 
       enforcement agencies to the extent appropriate; and
           (2) distribute such report to financial institutions (as 
       defined in section 5312 of title 31, United States Code).

SEC. 315. INCLUSION OF FOREIGN CORRUPTION OFFENSES AS MONEY LAUNDERING

CRIMES.
Section 1956(c)(7) of title 18, United States Code, is amended--
           (1) in subparagraph (B)--
                   (A) in clause (ii), by striking ``or destruction of 
               property by means of explosive or fire and inserting 
               ``destruction of property by means of explosive or fire, 
               or a crime of violence (as defined in section 16);
                   (B) in clause (iii), by striking ``1978 and 
               inserting ``1978); and
                   (C) by adding at the end the following:

Page 115 STAT. 309

``(iv) bribery of a public official, or the 
                     misappropriation, theft, or embezzlement of public 
                     funds by or for the benefit of a public official;
                         ``(v) smuggling or export control violations 
                     involving--
                                   ``(I) an item controlled on the 
                               United States Munitions List established 
                               under section 38 of the Arms Export 
                               Control Act (22 U.S.C. 2778); or
                                   ``(II) an item controlled under 
                               regulations under the Export 
                               Administration Regulations (15 C.F.R. 
                               Parts 730-774); or
                         ``(vi) an offense with respect to which the 
                     United States would be obligated by a multilateral 
                     treaty, either to extradite the alleged offender 
                     or to submit the case for prosecution, if the 
                     offender were found within the territory of the 
                     United States;; and
           (2) in subparagraph (D)--
                   (A) by inserting ``section 541 (relating to goods 
               falsely classified), before ``section 542;
                   (B) by inserting ``section 922(1) (relating to the 
               unlawful importation of firearms), section 924(n) 
               (relating to firearms trafficking), before ``section 
               956;
                   (C) by inserting ``section 1030 (relating to 
               computer fraud and abuse), before ``1032; and
                   (D) by inserting ``any felony violation of the 
               Foreign Agents Registration Act of 1938, before ``or 
               any felony violation of the Foreign Corrupt Practices 
               Act.

SEC. 316. ANTI-TERRORIST FORFEITURE PROTECTION.

(a) Right <<NOTE: 18 USC 983 note.>> to Contest.--An owner of

property that is confiscated under any provision of law relating to the confiscation of assets of suspected international terrorists, may contest that confiscation by filing a claim in the manner set forth in the Federal Rules of Civil Procedure (Supplemental Rules for Certain Admiralty and Maritime Claims), and asserting as an affirmative defense that--

(1) the property is not subject to confiscation under such 
       provision of law; or
           (2) the innocent owner provisions of section 983(d) of title 
       18, United States Code, apply to the case.
(b) Evidence.--In <<NOTE: 18 USC 983 note.>> considering a claim

filed under this section, a court may admit evidence that is otherwise inadmissible under the Federal Rules of Evidence, if the court determines that the evidence is reliable, and that compliance with the Federal Rules of Evidence may jeopardize the national security interests of the United States.

(c) <<NOTE: 18 USC 983 note.>> Clarifications.--
           (1) Protection of rights.--The exclusion of certain 
       provisions of Federal law from the definition of the term 
       ``civil forfeiture statute in section 983(i) of title 18, 
       United States Code, shall not be construed to deny an owner of 
       property the right to contest the confiscation of assets of 
       suspected international terrorists under--
                   (A) subsection (a) of this section;
                   (B) the Constitution; or

Page 115 STAT. 310

(C) subchapter II of chapter 5 of title 5, United 
               States Code (commonly known as the ``Administrative 
               Procedure Act).
           (2) Savings clause.--Nothing in this section shall limit or 
       otherwise affect any other remedies that may be available to an 
       owner of property under section 983 of title 18, United States 
       Code, or any other provision of law.
(d) Technical Correction.--Section 983(i)(2)(D) of title 18, United

States Code, is amended by inserting ``or the International Emergency Economic Powers Act (IEEPA) (50 U.S.C. 1701 et seq.) before the semicolon.

SEC. 317. LONG-ARM JURISDICTION OVER FOREIGN MONEY LAUNDERERS.

Section 1956(b) of title 18, United States Code, is amended--
           (1) by redesignating paragraphs (1) and (2) as subparagraphs 
       (A) and (B), respectively, and moving the margins 2 ems to the 
       right;
           (2) by inserting after ``(b) the following: ``Penalties.--
           ``(1) In general.--;
           (3) by inserting ``, or section 1957 after ``or (a)(3); 
       and
           (4) by adding at the end the following:
           ``(2) Jurisdiction over foreign persons.--For purposes of 
       adjudicating an action filed or enforcing a penalty ordered 
       under this section, the district courts shall have jurisdiction 
       over any foreign person, including any financial institution 
       authorized under the laws of a foreign country, against whom the 
       action is brought, if service of process upon the foreign person 
       is made under the Federal Rules of Civil Procedure or the laws 
       of the country in which the foreign person is found, and--
                   ``(A) the foreign person commits an offense under 
               subsection (a) involving a financial transaction that 
               occurs in whole or in part in the United States;
                   ``(B) the foreign person converts, to his or her own 
               use, property in which the United States has an 
               ownership interest by virtue of the entry of an order of 
               forfeiture by a court of the United States; or
                   ``(C) the foreign person is a financial institution 
               that maintains a bank account at a financial institution 
               in the United States.
           ``(3) Court authority over assets.--A court described in 
       paragraph (2) may issue a pretrial restraining order or take any 
       other action necessary to ensure that any bank account or other 
       property held by the defendant in the United States is available 
       to satisfy a judgment under this section.
           ``(4) Federal receiver.--
                   ``(A) In general.--A court described in paragraph 
               (2) may appoint a Federal Receiver, in accordance with 
               subparagraph (B) of this paragraph, to collect, marshal, 
               and take custody, control, and possession of all assets 
               of the defendant, wherever located, to satisfy a civil 
               judgment under this subsection, a forfeiture judgment 
               under section 981 or 982, or a criminal sentence under 
               section 1957 or subsection (a) of this section, 
               including an order of restitution to any victim of a 
               specified unlawful activity.

Page 115 STAT. 311

``(B) Appointment and authority.--A Federal Receiver 
               described in subparagraph (A)--
                         ``(i) may be appointed upon application of a 
                     Federal prosecutor or a Federal or State 
                     regulator, by the court having jurisdiction over 
                     the defendant in the case;
                         ``(ii) shall be an officer of the court, and 
                     the powers of the Federal Receiver shall include 
                     the powers set out in section 754 of title 28, 
                     United States Code; and
                         ``(iii) shall have standing equivalent to that 
                     of a Federal prosecutor for the purpose of 
                     submitting requests to obtain information 
                     regarding the assets of the defendant--
                                   ``(I) from the Financial Crimes 
                               Enforcement Network of the Department of 
                               the Treasury; or
                                   ``(II) from a foreign country 
                               pursuant to a mutual legal assistance 
                               treaty, multilateral agreement, or other 
                               arrangement for international law 
                               enforcement assistance, provided that 
                               such requests are in accordance with the 
                               policies and procedures of the Attorney 
                               General..

SEC. 318. LAUNDERING MONEY THROUGH A FOREIGN BANK.

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

striking paragraph (6) and inserting the following:

``(6) the term `financial institution' includes--
                   ``(A) any financial institution, as defined in 
               section 5312(a)(2) of title 31, United States Code, or 
               the regulations promulgated thereunder; and
                   ``(B) any foreign bank, as defined in section 1 of 
               the International Banking Act of 1978 (12 U.S.C. 
               3101)..

SEC. 319. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK ACCOUNTS.

(a) Forfeiture From United States Interbank Account.--Section 981 of

title 18, United States Code, is amended by adding at the end the following:

``(k) Interbank Accounts.--
           ``(1) In general.--
                   ``(A) In general.--For the purpose of a forfeiture 
               under this section or under the Controlled Substances 
               Act (21 U.S.C. 801 et seq.), if funds are deposited into 
               an account at a foreign bank, and that foreign bank has 
               an interbank account in the United States with a covered 
               financial institution (as defined in section 5318(j)(1) 
               of title 31), the funds shall be deemed to have been 
               deposited into the interbank account in the United 
               States, and any restraining order, seizure warrant, or 
               arrest warrant in rem regarding the funds may be served 
               on the covered financial institution, and funds in the 
               interbank account, up to the value of the funds 
               deposited into the account at the foreign bank, may be 
               restrained, seized, or arrested.
                   ``(B) Authority to suspend.--The Attorney General, 
               in consultation with the Secretary of the Treasury, may 
               suspend or terminate a forfeiture under this section if 
               the Attorney General determines that a conflict of law 
               exists between the laws of the jurisdiction in which the 
               foreign bank is located and the laws of the United 
               States

Page 115 STAT. 312

with respect to liabilities arising from the restraint, 
               seizure, or arrest of such funds, and that such 
               suspension or termination would be in the interest of 
               justice and would not harm the national interests of the 
               United States.
           ``(2) No requirement for government to trace funds.--If a 
       forfeiture action is brought against funds that are restrained, 
       seized, or arrested under paragraph (1), it shall not be 
       necessary for the Government to establish that the funds are 
       directly traceable to the funds that were deposited into the 
       foreign bank, nor shall it be necessary for the Government to 
       rely on the application of section 984.
           ``(3) Claims brought by owner of the funds.--If a forfeiture 
       action is instituted against funds restrained, seized, or 
       arrested under paragraph (1), the owner of the funds deposited 
       into the account at the foreign bank may contest the forfeiture 
       by filing a claim under section 983.
           ``(4) Definitions.--For purposes of this subsection, the 
       following definitions shall apply:
                   ``(A) Interbank account.--The term `interbank 
               account' has the same meaning as in section 
               984(c)(2)(B).
                   ``(B) Owner.--
                         ``(i) In general.--Except as provided in 
                     clause (ii), the term `owner'--
                                   ``(I) means the person who was the 
                               owner, as that term is defined in 
                               section 983(d)(6), of the funds that 
                               were deposited into the foreign bank at 
                               the time such funds were deposited; and
                                   ``(II) does not include either the 
                               foreign bank or any financial 
                               institution acting as an intermediary in 
                               the transfer of the funds into the 
                               interbank account.
                         ``(ii) Exception.--The foreign bank may be 
                     considered the `owner' of the funds (and no other 
                     person shall qualify as the owner of such funds) 
                     only if--
                                   ``(I) the basis for the forfeiture 
                               action is wrongdoing committed by the 
                               foreign bank; or
                                   ``(II) the foreign bank establishes, 
                               by a preponderance of the evidence, that 
                               prior to the restraint, seizure, or 
                               arrest of the funds, the foreign bank 
                               had discharged all or part of its 
                               obligation to the prior owner of the 
                               funds, in which case the foreign bank 
                               shall be deemed the owner of the funds 
                               to the extent of such discharged 
                               obligation..
(b) Bank Records.--Section 5318 of title 31, United States Code, as

amended by this title, is amended by adding at the end the following:

``(k) Bank Records Related to Anti-Money Laundering Programs.--
           ``(1) Definitions.--For purposes of this subsection, the 
       following definitions shall apply:
                   ``(A) Appropriate federal banking agency.--The term 
               `appropriate Federal banking agency' has the same 
               meaning as in section 3 of the Federal Deposit Insurance 
               Act (12 U.S.C. 1813).
                   ``(B) Incorporated term.--The term `correspondent 
               account' has the same meaning as in section 
               5318A(f)(1)(B).

Page 115 STAT. 313

``(2) 120-hour rule.--Not <<NOTE: Deadline.>>  later than 
       120 hours after receiving a request by an appropriate Federal 
       banking agency for information related to anti-money laundering 
       compliance by a covered financial institution or a customer of 
       such institution, a covered financial institution shall provide 
       to the appropriate Federal banking agency, or make available at 
       a location specified by the representative of the appropriate 
       Federal banking agency, information and account documentation 
       for any account opened, maintained, administered or managed in 
       the United States by the covered financial institution.
           ``(3) Foreign bank records.--
                   ``(A) Summons or subpoena of records.--
                         ``(i) In general.--The Secretary of the 
                     Treasury or the Attorney General may issue a 
                     summons or subpoena to any foreign bank that 
                     maintains a correspondent account in the United 
                     States and request records related to such 
                     correspondent account, including records 
                     maintained outside of the United States relating 
                     to the deposit of funds into the foreign bank.
                         ``(ii) Service of summons or subpoena.--A 
                     summons or subpoena referred to in clause (i) may 
                     be served on the foreign bank in the United States 
                     if the foreign bank has a representative in the 
                     United States, or in a foreign country pursuant to 
                     any mutual legal assistance treaty, multilateral 
                     agreement, or other request for international law 
                     enforcement assistance.
                   ``(B) Acceptance of service.--
                         ``(i) Maintaining records in the united 
                     states.--Any covered financial institution which 
                     maintains a correspondent account in the United 
                     States for a foreign bank shall maintain records 
                     in the United States identifying the owners of 
                     such foreign bank and the name and address of a 
                     person who resides in the United States and is 
                     authorized to accept service of legal process for 
                     records regarding the correspondent account.
                         ``(ii) Law <<NOTE: Deadline.>> enforcement 
                     request.--Upon receipt of a written request from a 
                     Federal law enforcement officer for information 
                     required to be maintained under this paragraph, 
                     the covered financial institution shall provide 
                     the information to the requesting officer not 
                     later than 7 days after receipt of the request.
                   ``(C) Termination of correspondent relationship.--
                         ``(i) Termination upon receipt of notice.--A 
                     covered financial institution shall terminate any 
                     correspondent relationship with a foreign bank not 
                     later than 10 business days after receipt of 
                     written notice from the Secretary or the Attorney 
                     General (in each case, after consultation with the 
                     other) that the foreign bank has failed--
                                   ``(I) to comply with a summons or 
                               subpoena issued under subparagraph (A); 
                               or
                                   ``(II) to initiate proceedings in a 
                               United States court contesting such 
                               summons or subpoena.

Page 115 STAT. 314

``(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 <<NOTE: 31 USC 5318 note.>> 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

Page 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 <<NOTE: 31 USC 5318 note.>> Included.--For purposes of this

Act and any amendment made by this Act to any other provision of law, the term ``Federal functional regulator includes the Commodity Futures Trading Commission.

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--

Page 115 STAT. 316

(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. <<NOTE: 31 USC 5311 note.>> REPORT AND RECOMMENDATION.

Not <<NOTE: Deadline.>> 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.

Page 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 <<NOTE: Regulations.>> 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

Page 115 STAT. 318

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 <<NOTE: Deadline.>> 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..

Page 115 STAT. 319

(2) Scope <<NOTE: 12 USC 1842 note.>> 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 <<NOTE: 12 USC 1828 note.>> 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. <<NOTE: 31 USC 5311 note.>> 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. <<NOTE: 31 USC 5311 note.>> 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;

Page 115 STAT. 320

(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

Page 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

Page 115 STAT. 322

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 <<NOTE: 31 USC 5318 note.>> 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 <<NOTE: 31 USC 5318 note.>> 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

Page 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..

Page 115 STAT. 324

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 <<NOTE: 31 USC 5318 note.>> for Suspicious Activity

Reporting Requirements for Registered Brokers and <<NOTE: Regulations.3Federal Register, publication.>> 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 <<NOTE: 31 USC 5318 note.>> 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 <<NOTE: 31 USC 5311 note.>> on Investment Companies.--
           (1) In <<NOTE: Deadline.>> 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,

Page 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 <<NOTE: Deadline.>> 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.

Page 115 STAT. 326

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:

``Sec. 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

Page 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:

``Sec. 626. <<NOTE: 15 USC 1681v.>> 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

Page 115 STAT. 328

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 <<NOTE: 12 USC 1829b note.>> 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:

Page 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 <<NOTE: Deadline. 31 USC 5311 note.>> 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. <<NOTE: 22 USC 262p-4r.>> 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:

``Sec. 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.--

Page 115 STAT. 330

``(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.

Page 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 government-wide 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

Page 115 STAT. 332

``(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 <<NOTE: 31 USC 5314 note.>> 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. <<NOTE: 31 USC 310 note.>> 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

Page 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:

``Sec. 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

Page 115 STAT. 334

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

Page 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 <<NOTE: Publication. 31 USC 5331

note.>> 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. <<NOTE: 31 USC 5313 note.>> 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

Page 115 STAT. 336

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 <<NOTE: 31 USC 5332 note.>> 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 cash-based 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

Page 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 <<NOTE: 31 USC 5332 note.>> 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:

``Sec. 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

Page 115 STAT. 338

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.

Page 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:

``Sec. 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

Page 115 STAT. 340

``(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.

Page 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.

Page 115 STAT. 342

(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 <<NOTE: Appropriation authorization.>> 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

Page 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) <<NOTE: Deadline. Regulations.>> 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

Page 115 STAT. 344

``(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 <<NOTE: Deadline. 8 USC 1105 note.>> 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 <<NOTE: 8 USC 1379.>> Standard to Confirm Identity.--
           (1) In <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>> 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

Page 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 <<NOTE: 8 USC 1105 note.>> 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. <<NOTE: 8 USC 1379 note.>> 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)--

Page 115 STAT. 346

(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;

Page 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--

Page 115 STAT. 348

``(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 <<NOTE: 8 USC 1182 note.>> 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.

Page 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) <<NOTE: Classified information.>> 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

Page 115 STAT. 350

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:

Page 115 STAT. 351

``mandatory detention of suspected terrorists; habeas corpus; judicial 
                                review
``Sec. 236A. <<NOTE: 8 USC 1226a.>> (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 <<NOTE: Deadline.>> 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

Page 115 STAT. 352

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 <<NOTE: Deadline. 8 USC 1226a note.>> 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.

Page 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. <<NOTE: 8 USC 1365a note.>> 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

Page 115 STAT. 354

(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 <<NOTE: Deadline.>> 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 <<NOTE: 8 USC 1365a note.>> (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 <<NOTE: 8 USC 1372 note.>> 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 <<NOTE: 8 USC 1372 note.>> 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 Act of 1996 (8 U.S.C. 1372), the Attorney General, in consultation with the Secretary of State, shall include information on the date of entry and port of entry.

(c) Expansion of System To Include Other Approved Educational

Institutions.--Section 641 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.1372) is amended--

(1) in subsection (a)(1), subsection (c)(4)(A), and 
       subsection (d)(1) (in the text above subparagraph (A)), by 
       inserting ``, other approved educational institutions, after 
       ``higher education each place it appears;
           (2) in subsections (c)(1)(C), (c)(1)(D), and (d)(1)(A), by 
       inserting ``, or other approved educational institution, after 
       ``higher education each place it appears;
           (3) in subsections (d)(2), (e)(1), and (e)(2), by inserting 
       ``, other approved educational institution, after ``higher 
       education each place it appears; and
           (4) in subsection (h), by adding at the end the following 
       new paragraph:
           ``(3) Other approved educational institution.--The term 
       `other approved educational institution' includes any air flight 
       school, language training school, or vocational school,

Page 115 STAT. 355

approved by the Attorney General, in consultation with the 
       Secretary of Education and the Secretary of State, under 
       subparagraph (F), (J), or (M) of section 101(a)(15) of the 
       Immigration and Nationality Act..
(d) Authorization <<NOTE: Effective date. Termination date.>> of

Appropriations.--There is authorized to be appropriated to the Department of Justice $36,800,000 for the period beginning on the date of enactment of this Act and ending on January 1, 2003, to fully implement and expand prior to January 1, 2003, the program established by section 641(a) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1372(a)).

SEC. 417. MACHINE READABLE PASSPORTS.

(a) Audits.--The <<NOTE: Termination date. 8 USC 1187

note.>> Secretary of State shall, each fiscal year until September 30, 2007--

(1) perform annual audits of the implementation of section 
       217(c)(2)(B) of the Immigration and Nationality Act (8 U.S.C. 
       1187(c)(2)(B));
           (2) check for the implementation of precautionary measures 
       to prevent the counterfeiting and theft of passports; and
           (3) ascertain that countries designated under the visa 
       waiver program have established a program to develop tamper-
       resistant passports.
(b) Periodic <<NOTE: Effective date. Termination date. 8 USC 1187

note.>> Reports.--Beginning one year after the date of enactment of this Act, and every year thereafter until 2007, the Secretary of State shall submit a report to Congress setting forth the findings of the most recent audit conducted under subsection (a)(1).

(c) Advancing Deadline for Satisfaction of Requirement.--Section

217(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1187(a)(3)) is amended by striking ``2007 and inserting ``2003.

(d) Waiver.--Section 217(a)(3) of the Immigration and Nationality

Act (8 U.S.C. 1187(a)(3)) is amended--

(1) by striking ``On or after and inserting the following:
                   ``(A) In general.--Except as provided in 
               subparagraph (B), on or after; and
           (2) by adding at the end the following:
                   ``(B) Limited <<NOTE: Effective date. Termination 
               date.>> waiver authority.--For the period beginning 
               October 1, 2003, and ending September 30, 2007, the 
               Secretary of State may waive the requirement of 
               subparagraph (A) with respect to nationals of a program 
               country (as designated under subsection (c)), if the 
               Secretary of State finds that the program country--
                         ``(i) is making progress toward ensuring that 
                     passports meeting the requirement of subparagraph 
                     (A) are generally available to its nationals; and
                         ``(ii) has taken appropriate measures to 
                     protect against misuse of passports the country 
                     has issued that do not meet the requirement of 
                     subparagraph (A)..

SEC. 418. <<NOTE: 8 USC 1201 note.>> PREVENTION OF CONSULATE SHOPPING.

(a) Review.--The Secretary of State shall review how consular

officers issue visas to determine if consular shopping is a problem.

Page 115 STAT. 356

(b) Actions to be Taken.--If the Secretary of State determines under

subsection (a) that consular shopping is a problem, the Secretary shall take steps to address the problem and shall submit a report to Congress describing what action was taken.

Subtitle C--Preservation of Immigration Benefits for Victims of 
                               Terrorism

SEC. 421. SPECIAL IMMIGRANT STATUS.

(a) In General.--For purposes of the Immigration and Nationality Act

(8 U.S.C. 1101 et seq.), the Attorney General may provide an alien described in subsection (b) with the status of a special immigrant under section 101(a)(27) of such Act (8 U.S.C. 1101(a(27)), if the alien--

(1) files with the Attorney General a petition under section 
       204 of such Act (8 U.S.C. 1154) for classification under section 
       203(b)(4) of such Act (8 U.S.C. 1153(b)(4)); and
           (2) is otherwise eligible to receive an immigrant visa and 
       is otherwise admissible to the United States for permanent 
       residence, except in determining such admissibility, the grounds 
       for inadmissibility specified in section 212(a)(4) of such Act 
       (8 U.S.C. 1182(a)(4)) shall not apply.
(b) Aliens Described.--
           (1) Principal aliens.--An alien is described in this 
       subsection if--
                   (A) the alien was the beneficiary of--
                         (i) a petition that was filed with the 
                     Attorney General on or before September 11, 2001--
                                   (I) under section 204 of the 
                               Immigration and Nationality Act (8 
                               U.S.C. 1154) to classify the alien as a 
                               family-sponsored immigrant under section 
                               203(a) of such Act (8 U.S.C. 1153(a)) or 
                               as an employment-based immigrant under 
                               section 203(b) of such Act (8 U.S.C. 
                               1153(b)); or
                                   (II) under section 214(d) (8 U.S.C. 
                               1184(d)) of such Act to authorize the 
                               issuance of a nonimmigrant visa to the 
                               alien under section 101(a)(15)(K) of 
                               such Act (8 U.S.C. 1101(a)(15)(K)); or
                         (ii) an application for labor certification 
                     under section 212(a)(5)(A) of such Act (8 U.S.C. 
                     1182(a)(5)(A)) that was filed under regulations of 
                     the Secretary of Labor on or before such date; and
                   (B) such petition or application was revoked or 
               terminated (or otherwise rendered null), either before 
               or after its approval, due to a specified terrorist 
               activity that directly resulted in--
                         (i) the death or disability of the petitioner, 
                     applicant, or alien beneficiary; or
                         (ii) loss of employment due to physical damage 
                     to, or destruction of, the business of the 
                     petitioner or applicant.
           (2) Spouses and children.--
                   (A) In general.--An alien is described in this 
               subsection if--

Page 115 STAT. 357

(i) the alien was, on September 10, 2001, the 
                     spouse or child of a principal alien described in 
                     paragraph (1); and
                         (ii) the alien--
                                   (I) is accompanying such principal 
                               alien; or
                                   (II) is following to join such 
                               principal alien not later than September 
                               11, 2003.
                   (B) Construction.--For purposes of construing the 
               terms ``accompanying and ``following to join in 
               subparagraph (A)(ii), any death of a principal alien 
               that is described in paragraph (1)(B)(i) shall be 
               disregarded.
           (3) Grandparents of orphans.--An alien is described in this 
       subsection if the alien is a grandparent of a child, both of 
       whose parents died as a direct result of a specified terrorist 
       activity, if either of such deceased parents was, on September 
       10, 2001, a citizen or national of the United States or an alien 
       lawfully admitted for permanent residence in the United States.
(c) Priority Date.--Immigrant visas made available under this

section shall be issued to aliens in the order in which a petition on behalf of each such alien is filed with the Attorney General under subsection (a)(1), except that if an alien was assigned a priority date with respect to a petition described in subsection (b)(1)(A)(i), the alien may maintain that priority date.

(d) Numerical Limitations.--For purposes of the application of

sections 201 through 203 of the Immigration and Nationality Act (8 U.S.C. 1151-1153) in any fiscal year, aliens eligible to be provided status under this section shall be treated as special immigrants described in section 101(a)(27) of such Act (8 U.S.C. 1101(a)(27)) who are not described in subparagraph (A), (B), (C), or (K) of such section.

SEC. 422. EXTENSION OF FILING OR REENTRY DEADLINES.

(a) Automatic Extension of Nonimmigrant Status.--
           (1) In general.--Notwithstanding section 214 of the 
       Immigration and Nationality Act (8 U.S.C. 1184), in the case of 
       an alien described in paragraph (2) who was lawfully present in 
       the United States as a nonimmigrant on September 10, 2001, the 
       alien may remain lawfully in the United States in the same 
       nonimmigrant status until the later of--
                   (A) the date such lawful nonimmigrant status 
               otherwise would have terminated if this subsection had 
               not been enacted; or
                   (B) 1 year after the death or onset of disability 
               described in paragraph (2).
           (2) Aliens described.--
                   (A) Principal aliens.--An alien is described in this 
               paragraph if the alien was disabled as a direct result 
               of a specified terrorist activity.
                   (B) Spouses and children.--An alien is described in 
               this paragraph if the alien was, on September 10, 2001, 
               the spouse or child of--
                         (i) a principal alien described in 
                     subparagraph (A); or
                         (ii) an alien who died as a direct result of a 
                     specified terrorist activity.

Page 115 STAT. 358

(3) Authorized employment.--During the period in which a 
       principal alien or alien spouse is in lawful nonimmigrant status 
       under paragraph (1), the alien shall be provided an ``employment 
       authorized endorsement or other appropriate document 
       signifying authorization of employment not later than 30 days 
       after the alien requests such authorization.
(b) New Deadlines for Extension or Change of Nonimmigrant Status.--
           (1) Filing delays.--In the case of an alien who was lawfully 
       present in the United States as a nonimmigrant on September 10, 
       2001, if the alien was prevented from filing a timely 
       application for an extension or change of nonimmigrant status as 
       a direct result of a specified terrorist activity, the alien's 
       application shall be considered timely filed if it is filed not 
       later than 60 days after it otherwise would have been due.
           (2) Departure delays.--In the case of an alien who was 
       lawfully present in the United States as a nonimmigrant on 
       September 10, 2001, if the alien is unable timely to depart the 
       United States as a direct result of a specified terrorist 
       activity, the alien shall not be considered to have been 
       unlawfully present in the United States during the period 
       beginning on September 11, 2001, and ending on the date of the 
       alien's departure, if such departure occurs on or before 
       November 11, 2001.
           (3) Special rule for aliens unable to return from abroad.--
                   (A) Principal aliens.--In the case of an alien who 
               was in a lawful nonimmigrant status on September 10, 
               2001, but who was not present in the United States on 
               such date, if the alien was prevented from returning to 
               the United States in order to file a timely application 
               for an extension of nonimmigrant status as a direct 
               result of a specified terrorist activity--
                         (i) the alien's application shall be 
                     considered timely filed if it is filed not later 
                     than 60 days after it otherwise would have been 
                     due; and
                         (ii) the alien's lawful nonimmigrant status 
                     shall be considered to continue until the later 
                     of--
                                   (I) the date such status otherwise 
                               would have terminated if this 
                               subparagraph had not been enacted; or
                                   (II) the date that is 60 days after 
                               the date on which the application 
                               described in clause (i) otherwise would 
                               have been due.
                   (B) Spouses and children.--In the case of an alien 
               who is the spouse or child of a principal alien 
               described in subparagraph (A), if the spouse or child 
               was in a lawful nonimmigrant status on September 10, 
               2001, the spouse or child may remain lawfully in the 
               United States in the same nonimmigrant status until the 
               later of--
                         (i) the date such lawful nonimmigrant status 
                     otherwise would have terminated if this 
                     subparagraph had not been enacted; or
                         (ii) the date that is 60 days after the date 
                     on which the application described in subparagraph 
                     (A) otherwise would have been due.
           (4) Circumstances preventing timely action.--

Page 115 STAT. 359

(A) Filing delays.--For purposes of paragraph (1), 
               circumstances preventing an alien from timely acting 
               are--
                         (i) office closures;
                         (ii) mail or courier service cessations or 
                     delays; and
                         (iii) other closures, cessations, or delays 
                     affecting case processing or travel necessary to 
                     satisfy legal requirements.
                   (B) Departure and return delays.--For purposes of 
               paragraphs (2) and (3), circumstances preventing an 
               alien from timely acting are--
                         (i) office closures;
                         (ii) airline flight cessations or delays; and
                         (iii) other closures, cessations, or delays 
                     affecting case processing or travel necessary to 
                     satisfy legal requirements.
(c) Diversity Immigrants.--
           (1) Waiver of fiscal year limitation.--Notwithstanding 
       section 203(e)(2) of the Immigration and Nationality Act (8 
       U.S.C. 1153(e)(2)), an immigrant visa number issued to an alien 
       under section 203(c) of such Act for fiscal year 2001 may be 
       used by the alien during the period beginning on October 1, 
       2001, and ending on April 1, 2002, if the alien establishes that 
       the alien was prevented from using it during fiscal year 2001 as 
       a direct result of a specified terrorist activity.
           (2) Worldwide level.--In the case of an alien entering the 
       United States as a lawful permanent resident, or adjusting to 
       that status, under paragraph (1) or (3), the alien shall be 
       counted as a diversity immigrant for fiscal year 2001 for 
       purposes of section 201(e) of the Immigration and Nationality 
       Act (8 U.S.C. 1151(e)), unless the worldwide level under such 
       section for such year has been exceeded, in which case the alien 
       shall be counted as a diversity immigrant for fiscal year 2002.
           (3) Treatment of family members of certain aliens.--In the 
       case of a principal alien issued an immigrant visa number under 
       section 203(c) of the Immigration and Nationality Act (8 U.S.C. 
       1153(c)) for fiscal year 2001, if such principal alien died as a 
       direct result of a specified terrorist activity, the aliens who 
       were, on September 10, 2001, the spouse and children of such 
       principal alien shall, until June 30, 2002, if not otherwise 
       entitled to an immigrant status and the immediate issuance of a 
       visa under subsection (a), (b), or (c) of section 203 of such 
       Act, be entitled to the same status, and the same order of 
       consideration, that would have been provided to such alien 
       spouse or child under section 203(d) of such Act as if the 
       principal alien were not deceased and as if the spouse or 
       child's visa application had been adjudicated by September 30, 
       2001.
           (4) Circumstances preventing timely action.--For purposes of 
       paragraph (1), circumstances preventing an alien from using an 
       immigrant visa number during fiscal year 2001 are--
                   (A) office closures;
                   (B) mail or courier service cessations or delays;
                   (C) airline flight cessations or delays; and
                   (D) other closures, cessations, or delays affecting 
               case processing or travel necessary to satisfy legal 
               requirements.

Page 115 STAT. 360

(d) Extension of Expiration of Immigrant Visas.--
           (1) In general.--Notwithstanding the limitations under 
       section 221(c) of the Immigration and Nationality Act (8 U.S.C. 
       1201(c)), in the case of any immigrant visa issued to an alien 
       that expires or expired before December 31, 2001, if the alien 
       was unable to effect entry into the United States as a direct 
       result of a specified terrorist activity, then the period of 
       validity of the visa is extended until December 31, 2001, unless 
       a longer period of validity is otherwise provided under this 
       subtitle.
           (2) Circumstances preventing entry.--For purposes of this 
       subsection, circumstances preventing an alien from effecting 
       entry into the United States are--
                   (A) office closures;
                   (B) airline flight cessations or delays; and
                   (C) other closures, cessations, or delays affecting 
               case processing or travel necessary to satisfy legal 
               requirements.
(e) Grants of Parole Extended.--
           (1) In general.--In the case of any parole granted by the 
       Attorney General under section 212(d)(5) of the Immigration and 
       Nationality Act (8 U.S.C. 1182(d)(5)) that expires on a date on 
       or after September 11, 2001, if the alien beneficiary of the 
       parole was unable to return to the United States prior to the 
       expiration date as a direct result of a specified terrorist 
       activity, the parole is deemed extended for an additional 90 
       days.
           (2) Circumstances preventing return.--For purposes of this 
       subsection, circumstances preventing an alien from timely 
       returning to the United States are--
                   (A) office closures;
                   (B) airline flight cessations or delays; and
                   (C) other closures, cessations, or delays affecting 
               case processing or travel necessary to satisfy legal 
               requirements.
(f) Voluntary Departure.--Notwithstanding section 240B of the

Immigration and Nationality Act (8 U.S.C. 1229c), if a period for voluntary departure under such section expired during the period beginning on September 11, 2001, and ending on October 11, 2001, such voluntary departure period is deemed extended for an additional 30 days.

SEC. 423. HUMANITARIAN RELIEF FOR CERTAIN SURVIVING SPOUSES AND

CHILDREN.
(a) Treatment as Immediate Relatives.--
           (1) Spouses.--Notwithstanding the second sentence of section 
       201(b)(2)(A)(i) of the Immigration and Nationality Act (8 U.S.C. 
       1151(b)(2)(A)(i)), in the case of an alien who was the spouse of 
       a citizen of the United States at the time of the citizen's 
       death and was not legally separated from the citizen at the time 
       of the citizen's death, if the citizen died as a direct result 
       of a specified terrorist activity, the alien (and each child of 
       the alien) shall be considered, for purposes of section 201(b) 
       of such Act, to remain an immediate relative after the date of 
       the citizen's death, but only if the alien files a petition 
       under section 204(a)(1)(A)(ii) of such Act within 2 years after 
       such date and only until the date the alien remarries. For 
       purposes of such section 204(a)(1)(A)(ii), an alien granted 
       relief under the preceding sentence shall be considered

Page 115 STAT. 361

an alien spouse described in the second sentence of section 
       201(b)(2)(A)(i) of such Act.
           (2) Children.--
                   (A) In general.--In the case of an alien who was the 
               child of a citizen of the United States at the time of 
               the citizen's death, if the citizen died as a direct 
               result of a specified terrorist activity, the alien 
               shall be considered, for purposes of section 201(b) of 
               the Immigration and Nationality Act (8 U.S.C. 1151(b)), 
               to remain an immediate relative after the date of the 
               citizen's death (regardless of changes in age or marital 
               status thereafter), but only if the alien files a 
               petition under subparagraph (B) within 2 years after 
               such date.
                   (B) Petitions.--An alien described in subparagraph 
               (A) may file a petition with the Attorney General for 
               classification of the alien under section 
               201(b)(2)(A)(i) of the Immigration and Nationality Act 
               (8 U.S.C. 1151(b)(2)(A)(i)). For purposes of such Act, 
               such a petition shall be considered a petition filed 
               under section 204(a)(1)(A) of such Act (8 U.S.C. 
               1154(a)(1)(A)).
(b) Spouses, Children, Unmarried Sons and Daughters of Lawful

Permanent Resident Aliens.--

(1) In general.--Any spouse, child, or unmarried son or 
       daughter of an alien described in paragraph (3) who is included 
       in a petition for classification as a family-sponsored immigrant 
       under section 203(a)(2) of the Immigration and Nationality Act 
       (8 U.S.C. 1153(a)(2)) that was filed by such alien before 
       September 11, 2001, shall be considered (if the spouse, child, 
       son, or daughter has not been admitted or approved for lawful 
       permanent residence by such date) a valid petitioner for 
       preference status under such section with the same priority date 
       as that assigned prior to the death described in paragraph 
       (3)(A). No new petition shall be required to be filed. Such 
       spouse, child, son, or daughter may be eligible for deferred 
       action and work authorization.
           (2) Self-petitions.--Any spouse, child, or unmarried son or 
       daughter of an alien described in paragraph (3) who is not a 
       beneficiary of a petition for classification as a family-
       sponsored immigrant under section 203(a)(2) of the Immigration 
       and Nationality Act may file a petition for such classification 
       with the Attorney General, if the spouse, child, son, or 
       daughter was present in the United States on September 11, 2001. 
       Such spouse, child, son, or daughter may be eligible for 
       deferred action and work authorization.
           (3) Aliens described.--An alien is described in this 
       paragraph if the alien--
                   (A) died as a direct result of a specified terrorist 
               activity; and
                   (B) on the day of such death, was lawfully admitted 
               for permanent residence in the United States.
(c) Applications for Adjustment of Status by Surviving Spouses and

Children of Employment-Based Immigrants.--

(1) In general.--Any alien who was, on September 10, 2001, 
       the spouse or child of an alien described in paragraph (2), and 
       who applied for adjustment of status prior to the death 
       described in paragraph (2)(A), may have such application 
       adjudicated as if such death had not occurred.

Page 115 STAT. 362

(2) Aliens described.--An alien is described in this 
       paragraph if the alien--
                   (A) died as a direct result of a specified terrorist 
               activity; and
                   (B) on the day before such death, was--
                         (i) an alien lawfully admitted for permanent 
                     residence in the United States by reason of having 
                     been allotted a visa under section 203(b) of the 
                     Immigration and Nationality Act (8 U.S.C. 
                     1153(b)); or
                         (ii) an applicant for adjustment of status to 
                     that of an alien described in clause (i), and 
                     admissible to the United States for permanent 
                     residence.
(d) Waiver of Public Charge Grounds.--In determining the

admissibility of any alien accorded an immigration benefit under this section, the grounds for inadmissibility specified in section 212(a)(4) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(4)) shall not apply.

SEC. 424. ``AGE-OUT PROTECTION FOR CHILDREN.

For purposes of the administration of the Immigration and

Nationality Act (8 U.S.C. 1101 et seq.), in the case of an alien--

(1) whose 21st birthday occurs in September 2001, and who is 
       the beneficiary of a petition or application filed under such 
       Act on or before September 11, 2001, the alien shall be 
       considered to be a child for 90 days after the alien's 21st 
       birthday for purposes of adjudicating such petition or 
       application; and
           (2) whose 21st birthday occurs after September 2001, and who 
       is the beneficiary of a petition or application filed under such 
       Act on or before September 11, 2001, the alien shall be 
       considered to be a child for 45 days after the alien's 21st 
       birthday for purposes of adjudicating such petition or 
       application.

SEC. 425. TEMPORARY ADMINISTRATIVE RELIEF.

The Attorney General, for humanitarian purposes or to ensure family

unity, may provide temporary administrative relief to any alien who--

(1) was lawfully present in the United States on September 
       10, 2001;
           (2) was on such date the spouse, parent, or child of an 
       individual who died or was disabled as a direct result of a 
       specified terrorist activity; and
           (3) is not otherwise entitled to relief under any other 
       provision of this subtitle.

SEC. 426. EVIDENCE OF DEATH, DISABILITY, OR LOSS OF EMPLOYMENT.

(a) In General.--The Attorney General shall establish appropriate

standards for evidence demonstrating, for purposes of this subtitle, that any of the following occurred as a direct result of a specified terrorist activity:

(1) Death.
           (2) Disability.
           (3) Loss of employment due to physical damage to, or 
       destruction of, a business.
(b) Waiver of Regulations.--The Attorney General shall carry out

subsection (a) as expeditiously as possible. The Attorney General

Page 115 STAT. 363

is not required to promulgate regulations prior to implementing this subtitle.

SEC. 427. NO BENEFITS TO TERRORISTS OR FAMILY MEMBERS OF TERRORISTS.

Notwithstanding any other provision of this subtitle, nothing in

this subtitle shall be construed to provide any benefit or relief to--

(1) any individual culpable for a specified terrorist 
       activity; or
           (2) any family member of any individual described in 
       paragraph (1).

SEC. 428. DEFINITIONS.

(a) Application of Immigration and Nationality Act Provisions.--

Except as otherwise specifically provided in this subtitle, the definitions used in the Immigration and Nationality Act (excluding the definitions applicable exclusively to title III of such Act) shall apply in the administration of this subtitle.

(b) Specified Terrorist Activity.--For purposes of this subtitle,

the term ``specified terrorist activity means any terrorist activity conducted against the Government or the people of the United States on September 11, 2001.

TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM

SEC. 501. <<NOTE: 18 USC 3071 note.>> ATTORNEY GENERAL'S AUTHORITY TO

PAY REWARDS TO COMBAT TERRORISM.
(a) Payment of Rewards To Combat Terrorism.--Funds available to the

Attorney General may be used for the payment of rewards pursuant to public advertisements for assistance to the Department of Justice to combat terrorism and defend the Nation against terrorist acts, in accordance with procedures and regulations established or issued by the Attorney General.

(b) Conditions.--In making rewards under this section--
           (1) no such reward of $250,000 or more may be made or 
       offered without the personal approval of either the Attorney 
       General or the President;
           (2) <<NOTE: Notice. Deadline.>> the Attorney General shall 
       give written notice to the Chairmen and ranking minority members 
       of the Committees on Appropriations and the Judiciary of the 
       Senate and of the House of Representatives not later than 30 
       days after the approval of a reward under paragraph (1);
           (3) any executive agency or military department (as defined, 
       respectively, in sections 105 and 102 of title 5, United States 
       Code) may provide the Attorney General with funds for the 
       payment of rewards;
           (4) neither the failure of the Attorney General to authorize 
       a payment nor the amount authorized shall be subject to judicial 
       review; and
           (5) no such reward shall be subject to any per- or aggregate 
       reward spending limitation established by law, unless that law 
       expressly refers to this section, and no reward paid pursuant to 
       any such offer shall count toward any such aggregate reward 
       spending limitation.

Page 115 STAT. 364

SEC. 502. SECRETARY OF STATE'S AUTHORITY TO PAY REWARDS.

Section 36 of the State Department Basic Authorities Act of 1956

(Public Law 885, August 1, 1956; 22 U.S.C. 2708) is amended--

(1) in subsection (b)--
                   (A) in paragraph (4), by striking ``or at the end;
                   (B) in paragraph (5), by striking the period at the 
               end and inserting ``, including by dismantling an 
               organization in whole or significant part; or; and
                   (C) by adding at the end the following:
           ``(6) the identification or location of an individual who 
       holds a key leadership position in a terrorist organization.;
           (2) in subsection (d), by striking paragraphs (2) and (3) 
       and redesignating paragraph (4) as paragraph (2); and
           (3) in subsection (e)(1), by inserting ``, except as 
       personally authorized by the Secretary of State if he determines 
       that offer or payment of an award of a larger amount is 
       necessary to combat terrorism or defend the Nation against 
       terrorist acts. after ``$5,000,000.

SEC. 503. DNA IDENTIFICATION OF TERRORISTS AND OTHER VIOLENT OFFENDERS.

Section 3(d)(2) of the DNA Analysis Backlog Elimination Act of 2000

(42 U.S.C. 14135a(d)(2)) is amended to read as follows:

``(2) In addition to the offenses described in paragraph 
       (1), the following offenses shall be treated for purposes of 
       this section as qualifying Federal offenses, as determined by 
       the Attorney General:
                   ``(A) Any offense listed in section 2332b(g)(5)(B) 
               of title 18, United States Code.
                   ``(B) Any crime of violence (as defined in section 
               16 of title 18, United States Code).
                   ``(C) Any attempt or conspiracy to commit any of the 
               above offenses..

SEC. 504. COORDINATION WITH LAW ENFORCEMENT.

(a) Information Acquired From an Electronic Surveillance.--Section

106 of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1806), is amended by adding at the end the following:

``(k)(1) Federal officers who conduct electronic surveillance to

acquire foreign intelligence information under this title may consult with Federal law enforcement officers to coordinate efforts to investigate or protect against--

``(A) actual or potential attack or other grave hostile acts 
       of a foreign power or an agent of a foreign power;
           ``(B) sabotage or international terrorism by a foreign power 
       or an agent of a foreign power; or
           ``(C) clandestine intelligence activities by an intelligence 
       service or network of a foreign power or by an agent of a 
       foreign power.
``(2) Coordination authorized under paragraph (1) shall not preclude

the certification required by section 104(a)(7)(B) or the entry of an order under section 105..

(b) Information Acquired From a Physical Search.--Section 305 of the

Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1825) is amended by adding at the end the following:

Page 115 STAT. 365

``(k)(1) Federal officers who conduct physical searches to acquire

foreign intelligence information under this title may consult with Federal law enforcement officers to coordinate efforts to investigate or protect against--

``(A) actual or potential attack or other grave hostile acts 
       of a foreign power or an agent of a foreign power;
           ``(B) sabotage or international terrorism by a foreign power 
       or an agent of a foreign power; or
           ``(C) clandestine intelligence activities by an intelligence 
       service or network of a foreign power or by an agent of a 
       foreign power.
``(2) Coordination authorized under paragraph (1) shall not preclude

the certification required by section 303(a)(7) or the entry of an order under section 304..

SEC. 505. MISCELLANEOUS NATIONAL SECURITY AUTHORITIES.

(a) Telephone Toll and Transactional Records.--Section 2709(b) of

title 18, United States Code, is amended--

(1) in the matter preceding paragraph (1), by inserting ``at 
       Bureau headquarters or a Special Agent in Charge in a Bureau 
       field office designated by the Director after ``Assistant 
       Director;
           (2) in paragraph (1)--
                   (A) by striking ``in a position not lower than 
               Deputy Assistant Director; and
                   (B) by striking ``made that and all that follows 
               and inserting the following: ``made that the name, 
               address, length of service, and toll billing records 
               sought are relevant to an authorized investigation to 
               protect against international terrorism or clandestine 
               intelligence activities, provided that such an 
               investigation of a United States person is not conducted 
               solely on the basis of activities protected by the first 
               amendment to the Constitution of the United States; 
               and; and
           (3) in paragraph (2)--
                   (A) by striking ``in a position not lower than 
               Deputy Assistant Director; and
                   (B) by striking ``made that and all that follows 
               and inserting the following: ``made that the information 
               sought is relevant to an authorized investigation to 
               protect against international terrorism or clandestine 
               intelligence activities, provided that such an 
               investigation of a United States person is not conducted 
               solely upon the basis of activities protected by the 
               first amendment to the Constitution of the United 
               States..
(b) Financial Records.--Section 1114(a)(5)(A) of the Right to

Financial Privacy Act of 1978 (12 U.S.C. 3414(a)(5)(A)) is amended--

(1) by inserting ``in a position not lower than Deputy 
       Assistant Director at Bureau headquarters or a Special Agent in 
       Charge in a Bureau field office designated by the Director 
       after ``designee; and
           (2) by striking ``sought and all that follows and 
       inserting ``sought for foreign counter intelligence purposes to 
       protect against international terrorism or clandestine 
       intelligence activities, provided that such an investigation of 
       a United States

Page 115 STAT. 366

person is not conducted solely upon the basis of activities 
       protected by the first amendment to the Constitution of the 
       United States..
(c) Consumer Reports.--Section 624 of the Fair Credit Reporting Act

(15 U.S.C. 1681u) is amended--

(1) in subsection (a)--
                   (A) by inserting ``in a position not lower than 
               Deputy Assistant Director at Bureau headquarters or a 
               Special Agent in Charge of a Bureau field office 
               designated by the Director after ``designee the 
               first place it appears; and
                   (B) by striking ``in writing that and all that 
               follows through the end and inserting the following: 
               ``in writing, that such information is sought for the 
               conduct of an authorized investigation to protect 
               against international terrorism or clandestine 
               intelligence activities, provided that such an 
               investigation of a United States person is not conducted 
               solely upon the basis of activities protected by the 
               first amendment to the Constitution of the United 
               States.;
           (2) in subsection (b)--
                   (A) by inserting ``in a position not lower than 
               Deputy Assistant Director at Bureau headquarters or a 
               Special Agent in Charge of a Bureau field office 
               designated by the Director after ``designee the 
               first place it appears; and
                   (B) by striking ``in writing that and all that 
               follows through the end and inserting the following: 
               ``in writing that such information is sought for the 
               conduct of an authorized investigation to protect 
               against international terrorism or clandestine 
               intelligence activities, provided that such an 
               investigation of a United States person is not conducted 
               solely upon the basis of activities protected by the 
               first amendment to the Constitution of the United 
               States.; and
           (3) in subsection (c)--
                   (A) by inserting ``in a position not lower than 
               Deputy Assistant Director at Bureau headquarters or a 
               Special Agent in Charge in a Bureau field office 
               designated by the Director after ``designee of the 
               Director; and
                   (B) by striking ``in camera that and all that 
               follows through ``States. and inserting the following: 
               ``in camera that the consumer report is sought for the 
               conduct of an authorized investigation to protect 
               against international terrorism or clandestine 
               intelligence activities, provided that such an 
               investigation of a United States person is not conducted 
               solely upon the basis of activities protected by the 
               first amendment to the Constitution of the United 
               States..

SEC. 506. EXTENSION OF SECRET SERVICE JURISDICTION.

(a) Concurrent Jurisdiction Under 18 U.S.C. 1030.--Section 1030(d)

of title 18, United States Code, is amended to read as follows:

``(d)(1) The United States Secret Service shall, in addition to any

other agency having such authority, have the authority to investigate offenses under this section.

Page 115 STAT. 367

``(2) The Federal Bureau of Investigation shall have primary

authority to investigate offenses under subsection (a)(1) for any cases involving espionage, foreign counterintelligence, information protected against unauthorized disclosure for reasons of national defense or foreign relations, or Restricted Data (as that term is defined in section 11y of the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)), except for offenses affecting the duties of the United States Secret Service pursuant to section 3056(a) of this title.

``(3) Such authority shall be exercised in accordance with an

agreement which shall be entered into by the Secretary of the Treasury and the Attorney General..

(b) Reauthorization of Jurisdiction under 18 U.S.C. 1344.--Section

3056(b)(3) of title 18, United States Code, is amended by striking ``credit and debit card frauds, and false identification documents or devices and inserting ``access device frauds, false identification documents or devices, and any fraud or other criminal or unlawful activity in or against any federally insured financial institution.

SEC. 507. DISCLOSURE OF EDUCATIONAL RECORDS.

Section 444 of the General Education Provisions Act (20 U.S.C.

1232g), is amended by adding after subsection (i) a new subsection (j) to read as follows:

``(j) Investigation and Prosecution of Terrorism.--
           ``(1) In general.--Notwithstanding subsections (a) through 
       (i) or any provision of State law, the Attorney General (or any 
       Federal officer or employee, in a position not lower than an 
       Assistant Attorney General, designated by the Attorney General) 
       may submit a written application to a court of competent 
       jurisdiction for an ex parte order requiring an educational 
       agency or institution to permit the Attorney General (or his 
       designee) to--
                   ``(A) collect education records in the possession of 
               the educational agency or institution that are relevant 
               to an authorized investigation or prosecution of an 
               offense listed in section 2332b(g)(5)(B) of title 18 
               United States Code, or an act of domestic or 
               international terrorism as defined in section 2331 of 
               that title; and
                   ``(B) for official purposes related to the 
               investigation or prosecution of an offense described in 
               paragraph (1)(A), retain, disseminate, and use 
               (including as evidence at trial or in other 
               administrative or judicial proceedings) such records, 
               consistent with such guidelines as the Attorney General, 
               after consultation with the Secretary, shall issue to 
               protect confidentiality.
           ``(2) Application and approval.--
                   ``(A) In general.--An application under paragraph 
               (1) shall certify that there are specific and 
               articulable facts giving reason to believe that the 
               education records are likely to contain information 
               described in paragraph (1)(A).
                   ``(B) <<NOTE: Courts.>> The court shall issue an 
               order described in paragraph (1) if the court finds that 
               the application for the order includes the certification 
               described in subparagraph (A).
           ``(3) Protection of educational agency or institution.--An 
       educational agency or institution that, in good faith, produces 
       education records in accordance with an order issued

Page 115 STAT. 368

under this subsection shall not be liable to any person for that 
       production.
           ``(4) Record-keeping.--Subsection (b)(4) does not apply to 
       education records subject to a court order under this 
       subsection..

SEC. 508. DISCLOSURE OF INFORMATION FROM NCES SURVEYS.

Section 408 of the National Education Statistics Act of 1994 (20

U.S.C. 9007), is amended by adding after subsection (b) a new subsection (c) to read as follows:

``(c) Investigation and Prosecution of Terrorism.--
           ``(1) In General.--Notwithstanding subsections (a) and (b), 
       the Attorney General (or any Federal officer or employee, in a 
       position not lower than an Assistant Attorney General, 
       designated by the Attorney General) may submit a written 
       application to a court of competent jurisdiction for an ex parte 
       order requiring the Secretary to permit the Attorney General (or 
       his designee) to--
                   ``(A) collect reports, records, and information 
               (including individually identifiable information) in the 
               possession of the center that are relevant to an 
               authorized investigation or prosecution of an offense 
               listed in section 2332b(g)(5)(B) of title 18, United 
               States Code, or an act of domestic or international 
               terrorism as defined in section 2331 of that title; and
                   ``(B) for official purposes related to the 
               investigation or prosecution of an offense described in 
               paragraph (1)(A), retain, disseminate, and use 
               (including as evidence at trial or in other 
               administrative or judicial proceedings) such 
               information, consistent with such guidelines as the 
               Attorney General, after consultation with the Secretary, 
               shall issue to protect confidentiality.
           ``(2) Application and approval.--
                   ``(A) In <<NOTE: Certification.>> general.--An 
               application under paragraph (1) shall certify that there 
               are specific and articulable facts giving reason to 
               believe that the information sought is described in 
               paragraph (1)(A).
                   ``(B) <<NOTE: Courts.>> The court shall issue an 
               order described in paragraph (1) if the court finds that 
               the application for the order includes the certification 
               described in subparagraph (A).
                   ``(3) Protection.--An officer or employee of the 
               Department who, in good faith, produces information in 
               accordance with an order issued under this subsection 
               does not violate subsection (b)(2) and shall not be 
               liable to any person for that production..

Page 115 STAT. 369

TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS, 
                          AND THEIR FAMILIES
Subtitle A--Aid to Families of Public Safety Officers

SEC. 611. <<NOTE: 42 USC 3796c-1.>> EXPEDITED PAYMENT FOR PUBLIC SAFETY

OFFICERS INVOLVED IN THE PREVENTION, INVESTIGATION, RESCUE, 
           OR RECOVERY EFFORTS RELATED TO A TERRORIST ATTACK.
(a) In General.--Notwithstanding the limitations of subsection (b)

of section 1201 or the provisions of subsections (c), (d), and (e) of such section or section 1202 of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796, 3796a), upon certification (containing identification of all eligible payees of benefits pursuant to section 1201 of such Act) by a public agency that a public safety officer employed by such agency was killed or suffered a catastrophic injury producing permanent and total disability as a direct and proximate result of a personal injury sustained in the line of duty as described in section 1201 of such Act in connection with prevention, investigation, rescue, or recovery efforts related to a terrorist attack, the Director of the Bureau of Justice Assistance shall authorize payment to qualified beneficiaries, said payment to be made not later than 30 days after receipt of such certification, benefits described under subpart 1 of part L of such Act (42 U.S.C. 3796 et seq.).

(b) Definitions.--For purposes of this section, the terms

``catastrophic injury, ``public agency, and ``public safety officer have the same meanings given such terms in section 1204 of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796b).

SEC. 612. TECHNICAL CORRECTION WITH RESPECT TO EXPEDITED PAYMENTS FOR

HEROIC PUBLIC SAFETY OFFICERS.
Section 1 of Public Law 107-37 (an Act to provide for the expedited

payment of certain benefits for a public safety officer who was killed or suffered a catastrophic injury as a direct and proximate result of a personal injury sustained in the line of duty in connection <<NOTE: Ante, p. 219.>> with the terrorist attacks of September 11, 2001) is amended by--

(1) inserting before ``by a the following: ``(containing 
       identification of all eligible payees of benefits pursuant to 
       section 1201);
           (2) inserting ``producing permanent and total disability 
       after ``suffered a catastrophic injury; and
           (3) striking ``1201(a) and inserting ``1201.

SEC. 613. PUBLIC SAFETY OFFICERS BENEFIT PROGRAM PAYMENT INCREASE.

(a) Payments.--Section 1201(a) of the Omnibus Crime Control and Safe

Streets Act of 1968 (42 U.S.C. 3796) is amended by striking ``$100,000 and inserting ``$250,000.

Page 115 STAT. 370

(b) Applicability.--The <<NOTE: 42 USC 3796 note.>> amendment made

by subsection (a) shall apply to any death or disability occurring on or after January 1, 2001.

SEC. 614. OFFICE OF JUSTICE PROGRAMS.

Section 112 of title I of section 101(b) of division A of Public Law

105-277 <<NOTE: 42 USC 3751 note.>> and section 108(a) of appendix A of Public Law 106-113 (113 Stat. 1501A-20) are amended--

(1) after ``that Office, each place it occurs, by 
       inserting ``(including, notwithstanding any contrary provision 
       of law (unless the same should expressly refer to this section), 
       any organization that administers any program established in 
       title 1 of Public Law 90-351); and
           (2) by inserting ``functions, including any after ``all.
Subtitle B--Amendments to the Victims of Crime Act of 1984

SEC. 621. CRIME VICTIMS FUND.

(a) Deposit of Gifts in the Fund.--Section 1402(b) of the Victims of

Crime Act of 1984 (42 U.S.C. 10601(b)) is amended--

(1) in paragraph (3), by striking ``and at the end;
           (2) in paragraph (4), by striking the period at the end and 
       inserting ``; and; and
           (3) by adding at the end the following:
           ``(5) any gifts, bequests, or donations to the Fund from 
       private entities or individuals..
(b) Formula for Fund Distributions.--Section 1402(c) of the Victims

of Crime Act of 1984 (42 U.S.C. 10601(c)) is amended to read as follows:

``(c) Fund Distribution; Retention of Sums in Fund; Availability for

Expenditure Without Fiscal Year Limitation.--

``(1) Subject to the availability of money in the Fund, in 
       each fiscal year, beginning with fiscal year 2003, the Director 
       shall distribute not less than 90 percent nor more than 110 
       percent of the amount distributed from the Fund in the previous 
       fiscal year, except the Director may distribute up to 120 
       percent of the amount distributed in the previous fiscal year in 
       any fiscal year that the total amount available in the Fund is 
       more than 2 times the amount distributed in the previous fiscal 
       year.
           ``(2) In each fiscal year, the Director shall distribute 
       amounts from the Fund in accordance with subsection (d). All 
       sums not distributed during a fiscal year shall remain in 
       reserve in the Fund to be distributed during a subsequent fiscal 
       year. Notwithstanding any other provision of law, all sums 
       deposited in the Fund that are not distributed shall remain in 
       reserve in the Fund for obligation in future fiscal years, 
       without fiscal year limitation..
(c) Allocation of Funds for Costs and Grants.--Section 1402(d)(4) of

the Victims of Crime Act of 1984 (42 U.S.C. 10601(d)(4)) is amended--

(1) by striking ``deposited in and inserting ``to be 
       distributed from;
           (2) in subparagraph (A), by striking ``48.5 and inserting 
       ``47.5;

Page 115 STAT. 371

(3) in subparagraph (B), by striking ``48.5 and inserting 
       ``47.5; and
           (4) in subparagraph (C), by striking ``3 and inserting 
       ``5.
(d) Antiterrorism Emergency Reserve.--Section 1402(d)(5) of the

Victims of Crime Act of 1984 (42 U.S.C. 10601(d)(5)) is amended to read as follows:

``(5)(A) In addition to the amounts distributed under 
       paragraphs (2), (3), and (4), the Director may set aside up to 
       $50,000,000 from the amounts transferred to the Fund in response 
       to the airplane hijackings and terrorist acts that occurred on 
       September 11, 2001, as an antiterrorism emergency reserve. The 
       Director may replenish any amounts expended from such reserve in 
       subsequent fiscal years by setting aside up to 5 percent of the 
       amounts remaining in the Fund in any fiscal year after 
       distributing amounts under paragraphs (2), (3) and (4). Such 
       reserve shall not exceed $50,000,000.
           ``(B) The antiterrorism emergency reserve referred to in 
       subparagraph (A) may be used for supplemental grants under 
       section 1404B and to provide compensation to victims of 
       international terrorism under section 1404C.
           ``(C) Amounts in the antiterrorism emergency reserve 
       established pursuant to subparagraph (A) may be carried over 
       from fiscal year to fiscal year. Notwithstanding subsection (c) 
       and section 619 of the Departments of Commerce, Justice, and 
       State, the Judiciary, and Related Agencies Appropriations Act, 
       2001 (and any similar limitation on Fund obligations in any 
       future Act, unless the same should expressly refer to this 
       section), any such amounts carried over shall not be subject to 
       any limitation on obligations from amounts deposited to or 
       available in the Fund..
(e) Victims <<NOTE: 42 USC 10601 note.>> of September 11, 2001.--

Amounts transferred to the Crime Victims Fund for use in responding to the airplane hijackings and terrorist acts (including any related search, rescue, relief, assistance, or other similar activities) that occurred on September 11, 2001, shall not be subject to any limitation on obligations from amounts deposited to or available in the Fund, notwithstanding--

(1) section 619 of the Departments of Commerce, Justice, and 
       State, the Judiciary, and Related Agencies Appropriations Act, 
       2001, and any similar limitation on Fund obligations in such Act 
       for Fiscal Year 2002; and
           (2) subsections (c) and (d) of section 1402 of the Victims 
       of Crime Act of 1984 (42 U.S.C. 10601).

SEC. 622. CRIME VICTIM COMPENSATION.

(a) Allocation of Funds for Compensation and Assistance.--Paragraphs

(1) and (2) of section 1403(a) of the Victims of Crime Act of 1984 (42 U.S.C. 10602(a)) are amended by inserting ``in fiscal year 2002 and of 60 percent in subsequent fiscal years after ``40 percent.

(b) Location of Compensable Crime.--Section 1403(b)(6)(B) of the

Victims of Crime Act of 1984 (42 U.S.C. 10602(b)(6)(B)) is amended by striking ``are outside the United States (if the compensable crime is terrorism, as defined in section 2331 of title 18), or.

(c) Relationship of Crime Victim Compensation to Means-Tested

Federal Benefit Programs.--Section 1403 of the Victims

Page 115 STAT. 372

of Crime Act of 1984 (42 U.S.C. 10602) is amended by striking subsection (c) and inserting the following:

``(c) Exclusion From Income, Resources, and Assets for Purposes of

Means Tests.--Notwithstanding any other law (other than title IV of Public Law 107-42), for the purpose of any maximum allowed income, resource, or asset eligibility requirement in any Federal, State, or local government program using Federal funds that provides medical or other assistance (or payment or reimbursement of the cost of such assistance), any amount of crime victim compensation that the applicant receives through a crime victim compensation program under this section shall not be included in the income, resources, or assets of the applicant, nor shall that amount reduce the amount of the assistance available to the applicant from Federal, State, or local government programs using Federal funds, unless the total amount of assistance that the applicant receives from all such programs is sufficient to fully compensate the applicant for losses suffered as a result of the crime..

(d) Definitions of ``Compensable Crime and ``State.--Section

1403(d) of the Victims of Crime Act of 1984 (42 U.S.C. 10602(d)) is amended--

(1) in paragraph (3), by striking ``crimes involving 
       terrorism,; and
           (2) in paragraph (4), by inserting ``the United States 
       Virgin Islands, after ``the Commonwealth of Puerto Rico,.
(e) Relationship of Eligible Crime Victim Compensation Programs to

the September 11th Victim Compensation Fund.--

(1) In general.--Section 1403(e) of the Victims of Crime Act 
       of 1984 (42 U.S.C. 10602(e)) is amended by inserting ``including 
       the program established under title IV of Public Law 107-42, 
       after ``Federal program,.
           (2) Compensation.--With <<NOTE: 49 USC 40101 note.>> respect 
       to any compensation payable under title IV of Public Law 107-42, 
       the failure of a crime victim compensation program, after the 
       effective date of final regulations issued pursuant to section 
       407 of Public Law 107-42, to provide compensation otherwise 
       required pursuant to section 1403 of the Victims of Crime Act of 
       1984 (42 U.S.C. 10602) shall not render that program ineligible 
       for future grants under the Victims of Crime Act of 1984.

SEC. 623. CRIME VICTIM ASSISTANCE.

(a) Assistance for Victims in the District of Columbia, Puerto Rico,

and Other Territories and Possessions.--Section 1404(a) of the Victims of Crime Act of 1984 (42 U.S.C. 10603(a)) is amended by adding at the end the following:

``(6) An agency of the Federal Government performing local 
       law enforcement functions in and on behalf of the District of 
       Columbia, the Commonwealth of Puerto Rico, the United States 
       Virgin Islands, or any other territory or possession of the 
       United States may qualify as an eligible crime victim assistance 
       program for the purpose of grants under this subsection, or for 
       the purpose of grants under subsection (c)(1)..
(b) Prohibition on Discrimination Against Certain Victims.--Section

1404(b)(1) of the Victims of Crime Act of 1984 (42 U.S.C. 10603(b)(1)) is amended--

(1) in subparagraph (D), by striking ``and at the end;

Page 115 STAT. 373

(2) in subparagraph (E), by striking the period at the end 
       and inserting ``; and; and
           (3) by adding at the end the following:
                   ``(F) does not discriminate against victims because 
               they disagree with the way the State is prosecuting the 
               criminal case..
(c) Grants for Program Evaluation and Compliance Efforts.--Section

1404(c)(1)(A) of the Victims of Crime Act of 1984 (42 U.S.C. 10603(c)(1)(A)) is amended by inserting ``, program evaluation, compliance efforts, after ``demonstration projects.

(d) Allocation of Discretionary Grants.--Section 1404(c)(2) of the

Victims of Crime Act of 1984 (42 U.S.C. 10603(c)(2)) is amended--

(1) in subparagraph (A), by striking ``not more than and 
       inserting ``not less than; and
           (2) in subparagraph (B), by striking ``not less than and 
       inserting ``not more than.
(e) Fellowships and Clinical Internships.--Section 1404(c)(3) of the

Victims of Crime Act of 1984 (42 U.S.C. 10603(c)(3)) is amended--

(1) in subparagraph (C), by striking ``and at the end;
           (2) in subparagraph (D), by striking the period at the end 
       and inserting ``; and; and
           (3) by adding at the end the following:
                   ``(E) use funds made available to the Director under 
               this subsection--
                         ``(i) for fellowships and clinical 
                     internships; and
                         ``(ii) to carry out programs of training and 
                     special workshops for the presentation and 
                     dissemination of information resulting from 
                     demonstrations, surveys, and special projects..

SEC. 624. VICTIMS OF TERRORISM.

(a) Compensation and Assistance to Victims of Domestic Terrorism.--

Section 1404B(b) of the Victims of Crime Act of 1984 (42 U.S.C. 10603b(b)) is amended to read as follows:

``(b) Victims of Terrorism Within the United States.--The Director

may make supplemental grants as provided in section 1402(d)(5) to States for eligible crime victim compensation and assistance programs, and to victim service organizations, public agencies (including Federal, State, or local governments) and nongovernmental organizations that provide assistance to victims of crime, which shall be used to provide emergency relief, including crisis response efforts, assistance, compensation, training and technical assistance, and ongoing assistance, including during any investigation or prosecution, to victims of terrorist acts or mass violence occurring within the United States..

(b) Assistance to Victims of International Terrorism.--Section

1404B(a)(1) of the Victims of Crime Act of 1984 (42 U.S.C. 10603b(a)(1)) is amended by striking ``who are not persons eligible for compensation under title VIII of the Omnibus Diplomatic Security and Antiterrorism Act of 1986.

(c) Compensation to Victims of International Terrorism.--Section

1404C(b) of the Victims of Crime of 1984 (42 U.S.C. 10603c(b)) is amended by adding at the end the following: ``The amount of compensation awarded to a victim under this subsection

Page 115 STAT. 374

shall be reduced by any amount that the victim received in connection with the same act of international terrorism under title VIII of the Omnibus Diplomatic Security and Antiterrorism Act of 1986..

TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE 
                              PROTECTION

SEC. 701. EXPANSION OF REGIONAL INFORMATION SHARING SYSTEM TO FACILITATE

FEDERAL-STATE-LOCAL LAW ENFORCEMENT RESPONSE RELATED TO 
           TERRORIST ATTACKS.
Section 1301 of title I of the Omnibus Crime Control and Safe

Streets Act of 1968 (42 U.S.C. 3796h) is amended--

(1) in subsection (a), by inserting ``and terrorist 
       conspiracies and activities after ``activities;
           (2) in subsection (b)--
                   (A) in paragraph (3), by striking ``and after the 
               semicolon;
                   (B) by redesignating paragraph (4) as paragraph (5); 
               and
                   (C) by inserting after paragraph (3) the following:
           ``(4) establishing and operating secure information sharing 
       systems to enhance the investigation and prosecution abilities 
       of participating enforcement agencies in addressing multi-
       jurisdictional terrorist conspiracies and activities; and (5); 
       and
           (3) by inserting at the end the following:
``(d) Authorization of Appropriation to the Bureau of Justice

Assistance.--There are authorized to be appropriated to the Bureau of Justice Assistance to carry out this section $50,000,000 for fiscal year 2002 and $100,000,000 for fiscal year 2003..

TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM

SEC. 801. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE AGAINST MASS

TRANSPORTATION SYSTEMS.
Chapter 97 of title 18, United States Code, is amended by adding at

the end the following:

``Sec. 1993. Terrorist attacks and other acts of violence against mass

transportation systems
``(a) General Prohibitions.--Whoever willfully--
           ``(1) wrecks, derails, sets fire to, or disables a mass 
       transportation vehicle or ferry;
           ``(2) places or causes to be placed any biological agent or 
       toxin for use as a weapon, destructive substance, or destructive 
       device in, upon, or near a mass transportation vehicle or ferry, 
       without previously obtaining the permission of the mass 
       transportation provider, and with intent to endanger the safety 
       of any passenger or employee of the mass transportation 
       provider, or with a reckless disregard for the safety of human 
       life;
           ``(3) sets fire to, or places any biological agent or toxin 
       for use as a weapon, destructive substance, or destructive 
       device

Page 115 STAT. 375

in, upon, or near any garage, terminal, structure, supply, or 
       facility used in the operation of, or in support of the 
       operation of, a mass transportation vehicle or ferry, without 
       previously obtaining the permission of the mass transportation 
       provider, and knowing or having reason to know such activity 
       would likely derail, disable, or wreck a mass transportation 
       vehicle or ferry used, operated, or employed by the mass 
       transportation provider;
           ``(4) removes appurtenances from, damages, or otherwise 
       impairs the operation of a mass transportation signal system, 
       including a train control system, centralized dispatching 
       system, or rail grade crossing warning signal without 
       authorization from the mass transportation provider;
           ``(5) interferes with, disables, or incapacitates any 
       dispatcher, driver, captain, or person while they are employed 
       in dispatching, operating, or maintaining a mass transportation 
       vehicle or ferry, with intent to endanger the safety of any 
       passenger or employee of the mass transportation provider, or 
       with a reckless disregard for the safety of human life;
           ``(6) commits an act, including the use of a dangerous 
       weapon, with the intent to cause death or serious bodily injury 
       to an employee or passenger of a mass transportation provider or 
       any other person while any of the foregoing are on the property 
       of a mass transportation provider;
           ``(7) conveys or causes to be conveyed false information, 
       knowing the information to be false, concerning an attempt or 
       alleged attempt being made or to be made, to do any act which 
       would be a crime prohibited by this subsection; or
           ``(8) attempts, threatens, or conspires to do any of the 
       aforesaid acts,

shall be fined under this title or imprisoned not more than twenty years, or both, if such act is committed, or in the case of a threat or conspiracy such act would be committed, on, against, or affecting a mass transportation provider engaged in or affecting interstate or foreign commerce, or if in the course of committing such act, that person travels or communicates across a State line in order to commit such act, or transports materials across a State line in aid of the commission of such act.

``(b) Aggravated Offense.--Whoever commits an offense under

subsection (a) in a circumstance in which--

``(1) the mass transportation vehicle or ferry was carrying 
       a passenger at the time of the offense; or
           ``(2) the offense has resulted in the death of any person,

shall be guilty of an aggravated form of the offense and shall be fined under this title or imprisoned for a term of years or for life, or both.

``(c) Definitions.--In this section--
           ``(1) the term `biological agent' has the meaning given to 
       that term in section 178(1) of this title;
           ``(2) the term `dangerous weapon' has the meaning given to 
       that term in section 930 of this title;
           ``(3) the term `destructive device' has the meaning given to 
       that term in section 921(a)(4) of this title;
           ``(4) the term `destructive substance' has the meaning given 
       to that term in section 31 of this title;
           ``(5) the term `mass transportation' has the meaning given 
       to that term in section 5302(a)(7) of title 49, United States

Page 115 STAT. 376Edit

Code, except that the term shall include schoolbus, charter, and 
       sightseeing transportation;
           ``(6) the term `serious bodily injury' has the meaning given 
       to that term in section 1365 of this title;
           ``(7) the term `State' has the meaning given to that term in 
       section 2266 of this title; and
           ``(8) the term `toxin' has the meaning given to that term in 
       section 178(2) of this title..
(f) Conforming Amendment.--The analysis of chapter 97 of title 18,

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

``1993. Terrorist attacks and other acts of violence against mass

transportation systems..

SEC. 802. DEFINITION OF DOMESTIC TERRORISM.

(a) Domestic Terrorism Defined.--Section 2331 of title 18, United

States Code, is amended--

(1) in paragraph (1)(B)(iii), by striking ``by assassination 
       or kidnapping and inserting ``by mass destruction, 
       assassination, or kidnapping;
           (2) in paragraph (3), by striking ``and;
           (3) in paragraph (4), by striking the period at the end and 
       inserting ``; and; and
           (4) by adding at the end the following:
           ``(5) the term `domestic terrorism' means activities that--
                   ``(A) involve acts dangerous to human life that are 
               a violation of the criminal laws of the United States or 
               of any State;
                   ``(B) appear to be intended--
                         ``(i) to intimidate or coerce a civilian 
                     population;
                         ``(ii) to influence the policy of a government 
                     by intimidation or coercion; or
                         ``(iii) to affect the conduct of a government 
                     by mass destruction, assassination, or kidnapping; 
                     and
                   ``(C) occur primarily within the territorial 
               jurisdiction of the United States..
(b) Conforming Amendment.--Section 3077(1) of title 18, United

States Code, is amended to read as follows:

``(1) `act of terrorism' means an act of domestic or 
       international terrorism as defined in section 2331;.

SEC. 803. PROHIBITION AGAINST HARBORING TERRORISTS.

(a) In General.--Chapter 113B of title 18, United States Code, is

amended by adding after section 2338 the following new section:

``Sec. 2339. Harboring or concealing terrorists

``(a) Whoever harbors or conceals any person who he knows, or has

reasonable grounds to believe, has committed, or is about to commit, an offense under section 32 (relating to destruction of aircraft or aircraft facilities), section 175 (relating to biological weapons), section 229 (relating to chemical weapons), section 831 (relating to nuclear materials), paragraph (2) or (3) of section 844(f) (relating to arson and bombing of government property risking or causing injury or death), section 1366(a) (relating to the destruction of an energy facility), section 2280 (relating to violence against maritime navigation), section 2332a (relating to weapons of mass destruction), or section 2332b (relating to acts of terrorism transcending national boundaries) of this title, section 236(a) (relating to sabotage of nuclear facilities or fuel) of the Atomic Energy Act

Page 115 STAT. 377Edit

of 1954 (42 U.S.C. 2284(a)), or section 46502 (relating to aircraft piracy) of title 49, shall be fined under this title or imprisoned not more than ten years, or both..

``(b) A violation of this section may be prosecuted in any Federal

judicial district in which the underlying offense was committed, or in any other Federal judicial district as provided by law..

(b) Technical Amendment.--The chapter analysis for chapter 113B of

title 18, United States Code, is amended by inserting after the item for section 2338 the following:

``2339. Harboring or concealing terrorists..

SEC. 804. JURISDICTION OVER CRIMES COMMITTED AT U.S. FACILITIES ABROAD.

Section 7 of title 18, United States Code, is amended by adding at

the end the following:

``(9) With respect to offenses committed by or against a 
       national of the United States as that term is used in section 
       101 of the Immigration and Nationality Act--
                   ``(A) the premises of United States diplomatic, 
               consular, military or other United States Government 
               missions or entities in foreign States, including the 
               buildings, parts of buildings, and land appurtenant or 
               ancillary thereto or used for purposes of those missions 
               or entities, irrespective of ownership; and
                   ``(B) residences in foreign States and the land 
               appurtenant or ancillary thereto, irrespective of 
               ownership, used for purposes of those missions or 
               entities or used by United States personnel assigned to 
               those missions or entities.
       Nothing in this paragraph shall be deemed to supersede any 
       treaty or international agreement with which this paragraph 
       conflicts. This paragraph does not apply with respect to an 
       offense committed by a person described in section 3261(a) of 
       this title..

SEC. 805. MATERIAL SUPPORT FOR TERRORISM.

(a) In General.--Section 2339A of title 18, United States Code, is

amended--

(1) in subsection (a)--
                   (A) by striking ``, within the United States,;
                   (B) by inserting ``229, after ``175,;
                   (C) by inserting ``1993, after ``1992,;
                   (D) by inserting ``, section 236 of the Atomic 
               Energy Act of 1954 (42 U.S.C. 2284), after ``of this 
               title;
                   (E) by inserting ``or 60123(b) after ``46502; 
               and
                   (F) by inserting at the end the following: ``A 
               violation of this section may be prosecuted in any 
               Federal judicial district in which the underlying 
               offense was committed, or in any other Federal judicial 
               district as provided by law.; and
           (2) in subsection (b)--
                   (A) by striking ``or other financial securities 
               and inserting ``or monetary instruments or financial 
               securities; and
                   (B) by inserting ``expert advice or assistance, 
               after ``training,.

Page 115 STAT. 378Edit

(b) Technical Amendment.--Section 1956(c)(7)(D) of title 18, United

States Code, is amended by inserting ``or 2339B after ``2339A.

SEC. 806. ASSETS OF TERRORIST ORGANIZATIONS.

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

inserting at the end the following:

``(G) All assets, foreign or domestic--
                   ``(i) of any individual, entity, or organization 
               engaged in planning or perpetrating any act of domestic 
               or international terrorism (as defined in section 2331) 
               against the United States, citizens or residents of the 
               United States, or their property, and all assets, 
               foreign or domestic, affording any person a source of 
               influence over any such entity or organization;
                   ``(ii) acquired or maintained by any person with the 
               intent and for the purpose of supporting, planning, 
               conducting, or concealing an act of domestic or 
               international terrorism (as defined in section 2331) 
               against the United States, citizens or residents of the 
               United States, or their property; or
                   ``(iii) derived from, involved in, or used or 
               intended to be used to commit any act of domestic or 
               international terrorism (as defined in section 2331) 
               against the United States, citizens or residents of the 
               United States, or their property..

SEC. 807. <<NOTE: 22 USC 7211.>> TECHNICAL CLARIFICATION RELATING TO

PROVISION OF MATERIAL SUPPORT TO TERRORISM.
No provision of the Trade Sanctions Reform and Export Enhancement

Act of 2000 (title IX of Public Law 106-387) shall be construed to limit or otherwise affect section 2339A or 2339B of title 18, United States Code.

SEC. 808. DEFINITION OF FEDERAL CRIME OF TERRORISM.

Section 2332b of title 18, United States Code, is amended--
           (1) in subsection (f), by inserting ``and any violation of 
       section 351(e), 844(e), 844(f)(1), 956(b), 1361, 1366(b), 
       1366(c), 1751(e), 2152, or 2156 of this title, before ``and 
       the Secretary; and
           (2) in subsection (g)(5)(B), by striking clauses (i) through 
       (iii) and inserting the following:
                         ``(i) section 32 (relating to destruction of 
                     aircraft or aircraft facilities), 37 (relating to 
                     violence at international airports), 81 (relating 
                     to arson within special maritime and territorial 
                     jurisdiction), 175 or 175b (relating to biological 
                     weapons), 229 (relating to chemical weapons), 
                     subsection (a), (b), (c), or (d) of section 351 
                     (relating to congressional, cabinet, and Supreme 
                     Court assassination and kidnaping), 831 (relating 
                     to nuclear materials), 842(m) or (n) (relating to 
                     plastic explosives), 844(f)(2) or (3) (relating to 
                     arson and bombing of Government property risking 
                     or causing death), 844(i) (relating to arson and 
                     bombing of property used in interstate commerce), 
                     930(c) (relating to killing or attempted killing 
                     during an attack on a Federal facility with a 
                     dangerous weapon), 956(a)(1) (relating to 
                     conspiracy to murder, kidnap, or maim

Page 115 STAT. 379Edit

persons abroad), 1030(a)(1) (relating to 
                     protection of computers), 1030(a)(5)(A)(i) 
                     resulting in damage as defined in 
                     1030(a)(5)(B)(ii) through (v) (relating to 
                     protection of computers), 1114 (relating to 
                     killing or attempted killing of officers and 
                     employees of the United States), 1116 (relating to 
                     murder or manslaughter of foreign officials, 
                     official guests, or internationally protected 
                     persons), 1203 (relating to hostage taking), 1362 
                     (relating to destruction of communication lines, 
                     stations, or systems), 1363 (relating to injury to 
                     buildings or property within special maritime and 
                     territorial jurisdiction of the United States), 
                     1366(a) (relating to destruction of an energy 
                     facility), 1751(a), (b), (c), or (d) (relating to 
                     Presidential and Presidential staff assassination 
                     and kidnaping), 1992 (relating to wrecking 
                     trains), 1993 (relating to terrorist attacks and 
                     other acts of violence against mass transportation 
                     systems), 2155 (relating to destruction of 
                     national defense materials, premises, or 
                     utilities), 2280 (relating to violence against 
                     maritime navigation), 2281 (relating to violence 
                     against maritime fixed platforms), 2332 (relating 
                     to certain homicides and other violence against 
                     United States nationals occurring outside of the 
                     United States), 2332a (relating to use of weapons 
                     of mass destruction), 2332b (relating to acts of 
                     terrorism transcending national boundaries), 2339 
                     (relating to harboring terrorists), 2339A 
                     (relating to providing material support to 
                     terrorists), 2339B (relating to providing material 
                     support to terrorist organizations), or 2340A 
                     (relating to torture) of this title;
                         ``(ii) section 236 (relating to sabotage of 
                     nuclear facilities or fuel) of the Atomic Energy 
                     Act of 1954 (42 U.S.C. 2284); or
                         ``(iii) section 46502 (relating to aircraft 
                     piracy), the second sentence of section 46504 
                     (relating to assault on a flight crew with a 
                     dangerous weapon), section 46505(b)(3) or (c) 
                     (relating to explosive or incendiary devices, or 
                     endangerment of human life by means of weapons, on 
                     aircraft), section 46506 if homicide or attempted 
                     homicide is involved (relating to application of 
                     certain criminal laws to acts on aircraft), or 
                     section 60123(b) (relating to destruction of 
                     interstate gas or hazardous liquid pipeline 
                     facility) of title 49..

SEC. 809. NO STATUTE OF LIMITATION FOR CERTAIN TERRORISM OFFENSES.

(a) In General.--Section 3286 of title 18, United States Code, is

amended to read as follows:

``Sec. 3286. Extension of statute of limitation for certain terrorism

offenses
``(a) Eight-Year Limitation.--Notwithstanding section 3282, no

person shall be prosecuted, tried, or punished for any noncapital offense involving a violation of any provision listed in section 2332b(g)(5)(B), or a violation of section 112, 351(e), 1361, or 1751(e) of this title, or section 46504, 46505, or 46506 of title 49, unless

Page 115 STAT. 380Edit

the indictment is found or the information is instituted within 8 years after the offense was committed. Notwithstanding the preceding sentence, offenses listed in section 3295 are subject to the statute of limitations set forth in that section.

``(b) No Limitation.--Notwithstanding any other law, an indictment

may be found or an information instituted at any time without limitation for any offense listed in section 2332b(g)(5)(B), if the commission of such offense resulted in, or created a forseeable risk of, death or serious bodily injury to another person..

(b) Application.--The <<NOTE: 18 USC 3286 note.>> amendments made by

this section shall apply to the prosecution of any offense committed before, on, or after the date of the enactment of this section.

SEC. 810. ALTERNATE MAXIMUM PENALTIES FOR TERRORISM OFFENSES.

(a) Arson.--Section 81 of title 18, United States Code, is amended

in the second undesignated paragraph by striking ``not more than twenty years and inserting ``for any term of years or for life.

(b) Destruction of an Energy Facility.--Section 1366 of title 18,

United States Code, is amended--

(1) in subsection (a), by striking ``ten and inserting 
       ``20; and
           (2) by adding at the end the following:
``(d) Whoever is convicted of a violation of subsection (a) or (b)

that has resulted in the death of any person shall be subject to imprisonment for any term of years or life..

(c) Material Support to Terrorists.--Section 2339A(a) of title 18,

United States Code, is amended--

(1) by striking ``10 and inserting ``15; and
           (2) by striking the period and inserting ``, and, if the 
       death of any person results, shall be imprisoned for any term of 
       years or for life..
(d) Material Support to Designated Foreign Terrorist

Organizations.--Section 2339B(a)(1) of title 18, United States Code, is amended--

(1) by striking ``10 and inserting ``15; and
           (2) by striking the period after ``or both and inserting 
       ``, and, if the death of any person results, shall be imprisoned 
       for any term of years or for life..
(e) Destruction of National-Defense Materials.--Section 2155(a) of

title 18, United States Code, is amended--

(1) by striking ``ten and inserting ``20; and
           (2) by striking the period at the end and inserting ``, and, 
       if death results to any person, shall be imprisoned for any term 
       of years or for life..
(f) Sabotage of Nuclear Facilities or Fuel.--Section 236 of the

Atomic Energy Act of 1954 (42 U.S.C. 2284), is amended--

(1) by striking ``ten each place it appears and inserting 
       ``20;
           (2) in subsection (a), by striking the period at the end and 
       inserting ``, and, if death results to any person, shall be 
       imprisoned for any term of years or for life.; and
           (3) in subsection (b), by striking the period at the end and 
       inserting ``, and, if death results to any person, shall be 
       imprisoned for any term of years or for life..

Page 115 STAT. 381Edit

(g) Special Aircraft Jurisdiction of the United States.--Section

46505(c) of title 49, United States Code, is amended--

(1) by striking ``15 and inserting ``20; and
           (2) by striking the period at the end and inserting ``, and, 
       if death results to any person, shall be imprisoned for any term 
       of years or for life..
(h) Damaging or Destroying an Interstate Gas or Hazardous Liquid

Pipeline Facility.--Section 60123(b) of title 49, United States Code, is amended--

(1) by striking ``15 and inserting ``20; and
           (2) by striking the period at the end and inserting ``, and, 
       if death results to any person, shall be imprisoned for any term 
       of years or for life..

SEC. 811. PENALTIES FOR TERRORIST CONSPIRACIES.

(a) Arson.--Section 81 of title 18, United States Code, is amended

in the first undesignated paragraph--

(1) by striking ``, or attempts to set fire to or burn; 
       and
           (2) by inserting ``or attempts or conspires to do such an 
       act, before ``shall be imprisoned.
(b) Killings in Federal Facilities.--Section 930(c) of title 18,

United States Code, is amended--

(1) by striking ``or attempts to kill;
           (2) by inserting ``or attempts or conspires to do such an 
       act, before ``shall be punished; and
           (3) by striking ``and 1113 and inserting ``1113, and 
       1117.
(c) Communications Lines, Stations, or Systems.--Section 1362 of

title 18, United States Code, is amended in the first undesignated paragraph--

(1) by striking ``or attempts willfully or maliciously to 
       injure or destroy; and
           (2) by inserting ``or attempts or conspires to do such an 
       act, before ``shall be fined.
(d) Buildings or Property Within Special Maritime and Territorial

Jurisdiction.--Section 1363 of title 18, United States Code, is amended--

(1) by striking ``or attempts to destroy or injure; and
           (2) by inserting ``or attempts or conspires to do such an 
       act, before ``shall be fined the first place it appears.
(e) Wrecking Trains.--Section 1992 of title 18, United States Code,

is amended by adding at the end the following:

``(c) A person who conspires to commit any offense defined in this

section shall be subject to the same penalties (other than the penalty of death) as the penalties prescribed for the offense, the commission of which was the object of the conspiracy..

(f) Material Support to Terrorists.--Section 2339A of title 18,

United States Code, is amended by inserting ``or attempts or conspires to do such an act, before ``shall be fined.

(g) Torture.--Section 2340A of title 18, United States Code, is

amended by adding at the end the following:

``(c) Conspiracy.--A person who conspires to commit an offense under

this section shall be subject to the same penalties (other than the penalty of death) as the penalties prescribed for the offense, the commission of which was the object of the conspiracy..

(h) Sabotage of Nuclear Facilities or Fuel.--Section 236 of the

Atomic Energy Act of 1954 (42 U.S.C. 2284), is amended--

(1) in subsection (a)--

Page 115 STAT. 382Edit

(A) by striking ``, or who intentionally and 
               willfully attempts to destroy or cause physical damage 
               to;
                   (B) in paragraph (4), by striking the period at the 
               end and inserting a comma; and
                   (C) by inserting ``or attempts or conspires to do 
               such an act, before ``shall be fined; and
           (2) in subsection (b)--
                   (A) by striking ``or attempts to cause; and
                   (B) by inserting ``or attempts or conspires to do 
               such an act, before ``shall be fined.
(i) Interference with Flight Crew Members and Attendants.--Section

46504 of title 49, United States Code, is amended by inserting ``or attempts or conspires to do such an act, before ``shall be fined.

(j) Special Aircraft Jurisdiction of the United States.--Section

46505 of title 49, United States Code, is amended by adding at the end the following:

``(e) Conspiracy.--If two or more persons conspire to violate

subsection (b) or (c), and one or more of such persons do any act to effect the object of the conspiracy, each of the parties to such conspiracy shall be punished as provided in such subsection..

(k) Damaging or Destroying an Interstate Gas or Hazardous Liquid

Pipeline Facility.--Section 60123(b) of title 49, United States Code, is amended--

(1) by striking ``, or attempting to damage or destroy,; 
       and
           (2) by inserting ``, or attempting or conspiring to do such 
       an act, before ``shall be fined.

SEC. 812. POST-RELEASE SUPERVISION OF TERRORISTS.

Section 3583 of title 18, United States Code, is amended by adding

at the end the following:

``(j) Supervised Release Terms for Terrorism Predicates.--

Notwithstanding subsection (b), the authorized term of supervised release for any offense listed in section 2332b(g)(5)(B), the commission of which resulted in, or created a foreseeable risk of, death or serious bodily injury to another person, is any term of years or life..

SEC. 813. INCLUSION OF ACTS OF TERRORISM AS RACKETEERING ACTIVITY.

Section 1961(1) of title 18, United States Code, is amended--
           (1) by striking ``or (F) and inserting ``(F); and
           (2) by inserting before the semicolon at the end the 
       following: ``, or (G) any act that is indictable under any 
       provision listed in section 2332b(g)(5)(B).

SEC. 814. DETERRENCE AND PREVENTION OF CYBERTERRORISM.

(a) Clarification of Protection of Protected Computers.--Section

1030(a)(5) of title 18, United States Code, is amended--

(1) by inserting ``(i) after ``(A);
           (2) by redesignating subparagraphs (B) and (C) as clauses 
       (ii) and (iii), respectively;
           (3) by adding ``and at the end of clause (iii), as so 
       redesignated; and
           (4) by adding at the end the following:

Page 115 STAT. 383Edit

``(B) by conduct described in clause (i), (ii), or 
               (iii) of subparagraph (A), caused (or, in the case of an 
               attempted offense, would, if completed, have caused)--
                         ``(i) loss to 1 or more persons during any 1-
                     year period (and, for purposes of an 
                     investigation, prosecution, or other proceeding 
                     brought by the United States only, loss resulting 
                     from a related course of conduct affecting 1 or 
                     more other protected computers) aggregating at 
                     least $5,000 in value;
                         ``(ii) the modification or impairment, or 
                     potential modification or impairment, of the 
                     medical examination, diagnosis, treatment, or care 
                     of 1 or more individuals;
                         ``(iii) physical injury to any person;
                         ``(iv) a threat to public health or safety; or
                         ``(v) damage affecting a computer system used 
                     by or for a government entity in furtherance of 
                     the administration of justice, national defense, 
                     or national security;.
(b) Protection From Extortion.--Section 1030(a)(7) of title 18,

United States Code, is amended by striking ``, firm, association, educational institution, financial institution, government entity, or other legal entity,.

(c) Penalties.--Section 1030(c) of title 18, United States Code, is

amended--

(1) in paragraph (2)--
                   (A) in subparagraph (A) --
                         (i) by inserting ``except as provided in 
                     subparagraph (B), before ``a fine;
                         (ii) by striking ``(a)(5)(C) and inserting 
                     ``(a)(5)(A)(iii); and
                         (iii) by striking ``and' at the end;
                   (B) in subparagraph (B), by inserting ``or an 
               attempt to commit an offense punishable under this 
               subparagraph, after ``subsection (a)(2), in the 
               matter preceding clause (i); and
                   (C) in subparagraph (C), by striking ``and at the 
               end;
           (2) in paragraph (3)--
                   (A) by striking ``, (a)(5)(A), (a)(5)(B), both 
               places it appears; and
                   (B) by striking ``(a)(5)(C) and inserting 
               ``(a)(5)(A)(iii); and
           (3) by adding at the end the following:
           ``(4)(A) a fine under this title, imprisonment for not more 
       than 10 years, or both, in the case of an offense under 
       subsection (a)(5)(A)(i), or an attempt to commit an offense 
       punishable under that subsection;
           ``(B) a fine under this title, imprisonment for not more 
       than 5 years, or both, in the case of an offense under 
       subsection (a)(5)(A)(ii), or an attempt to commit an offense 
       punishable under that subsection;
           ``(C) a fine under this title, imprisonment for not more 
       than 20 years, or both, in the case of an offense under 
       subsection (a)(5)(A)(i) or (a)(5)(A)(ii), or an attempt to 
       commit an offense punishable under either subsection, that 
       occurs after a conviction for another offense under this 
       section..

Page 115 STAT. 384Edit

(d) Definitions.--Section 1030(e) of title 18, United States Code is

amended--

(1) in paragraph (2)(B), by inserting ``, including a 
       computer located outside the United States that is used in a 
       manner that affects interstate or foreign commerce or 
       communication of the United States before the semicolon;
           (2) in paragraph (7), by striking ``and at the end;
           (3) by striking paragraph (8) and inserting the following:
           ``(8) the term `damage' means any impairment to the 
       integrity or availability of data, a program, a system, or 
       information;;
           (4) in paragraph (9), by striking the period at the end and 
       inserting a semicolon; and
           (5) by adding at the end the following:
           ``(10) the term `conviction' shall include a conviction 
       under the law of any State for a crime punishable by 
       imprisonment for more than 1 year, an element of which is 
       unauthorized access, or exceeding authorized access, to a 
       computer;
           ``(11) the term `loss' means any reasonable cost to any 
       victim, including the cost of responding to an offense, 
       conducting a damage assessment, and restoring the data, program, 
       system, or information to its condition prior to the offense, 
       and any revenue lost, cost incurred, or other consequential 
       damages incurred because of interruption of service; and
           ``(12) the term `person' means any individual, firm, 
       corporation, educational institution, financial institution, 
       governmental entity, or legal or other entity..
(e) Damages in Civil Actions.--Section 1030(g) of title 18, United

States Code is amended--

(1) by striking the second sentence and inserting the 
       following: ``A civil action for a violation of this section may 
       be brought only if the conduct involves 1 of the factors set 
       forth in clause (i), (ii), (iii), (iv), or (v) of subsection 
       (a)(5)(B). Damages for a violation involving only conduct 
       described in subsection (a)(5)(B)(i) are limited to economic 
       damages.; and
           (2) by adding at the end the following: ``No action may be 
       brought under this subsection for the negligent design or 
       manufacture of computer hardware, computer software, or 
       firmware..
(f) Amendment <<NOTE: 28 USC 994 note.>> of Sentencing Guidelines

Relating to Certain Computer Fraud and Abuse.--Pursuant to its authority under section 994(p) of title 28, United States Code, the United States Sentencing Commission shall amend the Federal sentencing guidelines to ensure that any individual convicted of a violation of section 1030 of title 18, United States Code, can be subjected to appropriate penalties, without regard to any mandatory minimum term of imprisonment.

SEC. 815. ADDITIONAL DEFENSE TO CIVIL ACTIONS RELATING TO PRESERVING

RECORDS IN RESPONSE TO GOVERNMENT REQUESTS.
Section 2707(e)(1) of title 18, United States Code, is amended by

inserting after ``or statutory authorization the following: ``(including a request of a governmental entity under section 2703(f) of this title).

Page 115 STAT. 385Edit

SEC. 816. <<NOTE: 28 USC 509 note.>> DEVELOPMENT AND SUPPORT OF

CYBERSECURITY FORENSIC CAPABILITIES.
(a) In General.--The Attorney General shall establish such regional

computer forensic laboratories as the Attorney General considers appropriate, and provide support to existing computer forensic laboratories, in order that all such computer forensic laboratories have the capability--

(1) to provide forensic examinations with respect to seized 
       or intercepted computer evidence relating to criminal activity 
       (including cyberterrorism);
           (2) to provide training and education for Federal, State, 
       and local law enforcement personnel and prosecutors regarding 
       investigations, forensic analyses, and prosecutions of computer-
       related crime (including cyberterrorism);
           (3) to assist Federal, State, and local law enforcement in 
       enforcing Federal, State, and local criminal laws relating to 
       computer-related crime;
           (4) to facilitate and promote the sharing of Federal law 
       enforcement expertise and information about the investigation, 
       analysis, and prosecution of computer-related crime with State 
       and local law enforcement personnel and prosecutors, including 
       the use of multijurisdictional task forces; and
           (5) to carry out such other activities as the Attorney 
       General considers appropriate.
(b) Authorization of Appropriations.--
           (1) Authorization.--There is hereby authorized to be 
       appropriated in each fiscal year $50,000,000 for purposes of 
       carrying out this section.
           (2) Availability.--Amounts appropriated pursuant to the 
       authorization of appropriations in paragraph (1) shall remain 
       available until expended.

SEC. 817. EXPANSION OF THE BIOLOGICAL WEAPONS STATUTE.

Chapter 10 of title 18, United States Code, is amended--
           (1) in section 175--
                   (A) in subsection (b)--
                         (i) by striking ``does not include and 
                     inserting ``includes;
                         (ii) by inserting ``other than after 
                     ``system for; and
                         (iii) by inserting ``bona fide research 
                     after ``protective;
                   (B) by redesignating subsection (b) as subsection 
               (c); and
                   (C) by inserting after subsection (a) the following:
``(b) Additional Offense.--Whoever knowingly possesses any

biological agent, toxin, or delivery system of a type or in a quantity that, under the circumstances, is not reasonably justified by a prophylactic, protective, bona fide research, or other peaceful purpose, shall be fined under this title, imprisoned not more than 10 years, or both. In this subsection, the terms `biological agent' and `toxin' do not encompass any biological agent or toxin that is in its naturally occurring environment, if the biological agent or toxin has not been cultivated, collected, or otherwise extracted from its natural source.;

(2) by inserting after section 175a the following:

Page 115 STAT. 386Edit

``SEC. 175b. POSSESSION BY RESTRICTED PERSONS.

``(a) No restricted person described in subsection (b) shall ship or

transport interstate or foreign commerce, or possess in or affecting commerce, any biological agent or toxin, or receive any biological agent or toxin that has been shipped or transported in interstate or foreign commerce, if the biological agent or toxin is listed as a select agent in subsection (j) of section 72.6 of title 42, Code of Federal Regulations, pursuant to section 511(d)(l) of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104-132), and is not exempted under subsection (h) of such section 72.6, or appendix A of part 72 of the Code of Regulations.

``(b) In this section:
           ``(1) The term `select agent' does not include any such 
       biological agent or toxin that is in its naturally-occurring 
       environment, if the biological agent or toxin has not been 
       cultivated, collected, or otherwise extracted from its natural 
       source.
``(2) The term `restricted person' means an individual who--
                   ``(A) is under indictment for a crime punishable by 
               imprisonment for a term exceeding 1 year;
                   ``(B) has been convicted in any court of a crime 
               punishable by imprisonment for a term exceeding 1 year;
                   ``(C) is a fugitive from justice;
                   ``(D) is an unlawful user of any controlled 
               substance (as defined in section 102 of the Controlled 
               Substances Act (21 U.S.C. 802));
                   ``(E) is an alien illegally or unlawfully in the 
               United States;
                   ``(F) has been adjudicated as a mental defective or 
               has been committed to any mental institution;
                   ``(G) is an alien (other than an alien lawfully 
               admitted for permanent residence) who is a national of a 
               country as to which the Secretary of State, pursuant to 
               section 6(j) of the Export Administration Act of 1979 
               (50 U.S.C. App. 2405(j)), section 620A of chapter 1 of 
               part M of the Foreign Assistance Act of 1961 (22 U.S.C. 
               2371), or section 40(d) of chapter 3 of the Arms Export 
               Control Act (22 U.S.C. 2780(d)), has made a 
               determination (that remains in effect) that such country 
               has repeatedly provided support for acts of 
               international terrorism; or
                   ``(H) has been discharged from the Armed Services of 
               the United States under dishonorable conditions.
           ``(3) The term `alien' has the same meaning as in section 
       1010(a)(3) of the Immigration and Nationality Act (8 U.S.C. 
       1101(a)(3)).
           ``(4) The term `lawfully admitted for permanent residence' 
       has the same meaning as in section 101(a)(20) of the Immigration 
       and Nationality Act (8 U.S.C. 1101(a)(20)).
``(c) Whoever knowingly violates this section shall be fined as

provided in this title, imprisoned not more than 10 years, or both, but the prohibition contained in this section shall not apply with respect to any duly authorized United States governmental activity.; and

(3) in the chapter analysis, by inserting after the item 
       relating to section 175a the following:

``175b. Possession by restricted persons..

Page 115 STAT. 387Edit

TITLE IX--IMPROVED INTELLIGENCE

SEC. 901. RESPONSIBILITIES OF DIRECTOR OF CENTRAL INTELLIGENCE REGARDING

FOREIGN INTELLIGENCE COLLECTED UNDER FOREIGN INTELLIGENCE 
           SURVEILLANCE ACT OF 1978.
Section 103(c) of the National Security Act of 1947 (50 U.S.C. 403-

3(c)) is amended--

(1) by redesignating paragraphs (6) and (7) as paragraphs 
       (7) and (8), respectively; and
           (2) by inserting after paragraph (5) the following new 
       paragraph (6):
           ``(6) establish requirements and priorities for foreign 
       intelligence information to be collected under the Foreign 
       Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.), 
       and provide assistance to the Attorney General to ensure that 
       information derived from electronic surveillance or physical 
       searches under that Act is disseminated so it may be used 
       efficiently and effectively for foreign intelligence purposes, 
       except that the Director shall have no authority to direct, 
       manage, or undertake electronic surveillance or physical search 
       operations pursuant to that Act unless otherwise authorized by 
       statute or Executive order;.

SEC. 902. INCLUSION OF INTERNATIONAL TERRORIST ACTIVITIES WITHIN SCOPE

OF FOREIGN INTELLIGENCE UNDER NATIONAL SECURITY ACT OF 1947.
Section 3 of the National Security Act of 1947 (50 U.S.C. 401a) is

amended--

(1) in paragraph (2), by inserting before the period the 
       following: ``, or international terrorist activities; and
           (2) in paragraph (3), by striking ``and activities 
       conducted and inserting ``, and activities conducted,.

SEC. 903. SENSE OF CONGRESS ON THE ESTABLISHMENT AND MAINTENANCE OF

INTELLIGENCE RELATIONSHIPS TO ACQUIRE INFORMATION ON 
           TERRORISTS AND TERRORIST ORGANIZATIONS.
It is the sense of Congress that officers and employees of the

intelligence community of the Federal Government, acting within the course of their official duties, should be encouraged, and should make every effort, to establish and maintain intelligence relationships with any person, entity, or group for the purpose of engaging in lawful intelligence activities, including the acquisition of information on the identity, location, finances, affiliations, capabilities, plans, or intentions of a terrorist or terrorist organization, or information on any other person, entity, or group (including a foreign government) engaged in harboring, comforting, financing, aiding, or assisting a terrorist or terrorist organization.

SEC. 904. TEMPORARY AUTHORITY TO DEFER SUBMITTAL TO CONGRESS OF REPORTS

ON INTELLIGENCE AND INTELLIGENCE-RELATED MATTERS.
(a) Authority To Defer.--The Secretary of Defense, Attorney General,

and Director of Central Intelligence each may, during the effective period of this section, defer the date of submittal

Page 115 STAT. 388Edit

to Congress of any covered intelligence report under the jurisdiction of such official until February 1, 2002.

(b) Covered Intelligence Report.--Except as provided in subsection

(c), for purposes of subsection (a), a covered intelligence report is as follows:

(1) Any report on intelligence or intelligence-related 
       activities of the United States Government that is required to 
       be submitted to Congress by an element of the intelligence 
       community during the effective period of this section.
           (2) Any report or other matter that is required to be 
       submitted to the Select Committee on Intelligence of the Senate 
       and Permanent Select Committee on Intelligence of the House of 
       Representatives by the Department of Defense or the Department 
       of Justice during the effective period of this section.
(c) Exception for Certain Reports.--For purposes of subsection (a),

any report required by section 502 or 503 of the National Security Act of 1947 (50 U.S.C. 413a, 413b) is not a covered intelligence report.

(d) Notice to Congress.--Upon deferring the date of submittal to

Congress of a covered intelligence report under subsection (a), the official deferring the date of submittal of the covered intelligence report shall submit to Congress notice of the deferral. Notice of deferral of a report shall specify the provision of law, if any, under which the report would otherwise be submitted to Congress.

(e) Extension <<NOTE: Certification.>> of Deferral.--(1) Each

official specified in subsection (a) may defer the date of submittal to Congress of a covered intelligence report under the jurisdiction of such official to a date after February 1, 2002, if such official submits to the committees of Congress specified in subsection (b)(2) before February 1, 2002, a certification that preparation and submittal of the covered intelligence report on February 1, 2002, will impede the work of officers or employees who are engaged in counterterrorism activities.

(2) A certification under paragraph (1) with respect to a covered

intelligence report shall specify the date on which the covered intelligence report will be submitted to Congress.

(f) Effective Period.--The effective period of this section is the

period beginning on the date of the enactment of this Act and ending on February 1, 2002.

(g) Element of the Intelligence Community Defined.--In this section,

the term ``element of the intelligence community means any element of the intelligence community specified or designated under section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).

SEC. 905. DISCLOSURE TO DIRECTOR OF CENTRAL INTELLIGENCE OF FOREIGN

INTELLIGENCE-RELATED INFORMATION WITH RESPECT TO CRIMINAL 
           INVESTIGATIONS.
(a) In General.--Title I of the National Security Act of 1947 (50

U.S.C. 402 et seq.) is amended--

(1) by redesignating <<NOTE: 50 USC 403-5b, 403-
       5c.>> subsection 105B as section 105C; and
           (2) by inserting after section 105A the following new 
       section 105B:

Page 115 STAT. 389Edit

``disclosure of foreign intelligence acquired in criminal 
     investigations; notice of criminal investigations of foreign 
                         intelligence sources
``Sec. <<NOTE: 50 USC 403-5b.>> 105B. (a) Disclosure of Foreign

Intelligence.--(1) Except as otherwise provided by law and subject to paragraph (2), the Attorney General, or the head of any other department or agency of the Federal Government with law enforcement responsibilities, shall expeditiously disclose to the Director of Central Intelligence, pursuant to guidelines developed by the Attorney General in consultation with the Director, foreign intelligence acquired by an element of the Department of Justice or an element of such department or agency, as the case may be, in the course of a criminal investigation.

``(2) The Attorney General by regulation and in consultation with

the Director of Central Intelligence may provide for exceptions to the applicability of paragraph (1) for one or more classes of foreign intelligence, or foreign intelligence with respect to one or more targets or matters, if the Attorney General determines that disclosure of such foreign intelligence under that paragraph would jeopardize an ongoing law enforcement investigation or impair other significant law enforcement interests.

``(b) Procedures <<NOTE: Deadline.>> for Notice of Criminal

Investigations.--Not later than 180 days after the date of enactment of this section, the Attorney General, in consultation with the Director of Central Intelligence, shall develop guidelines to ensure that after receipt of a report from an element of the intelligence community of activity of a foreign intelligence source or potential foreign intelligence source that may warrant investigation as criminal activity, the Attorney General provides notice to the Director of Central Intelligence, within a reasonable period of time, of his intention to commence, or decline to commence, a criminal investigation of such activity.

``(c) Procedures.--The Attorney General shall develop procedures for

the administration of this section, including the disclosure of foreign intelligence by elements of the Department of Justice, and elements of other departments and agencies of the Federal Government, under subsection (a) and the provision of notice with respect to criminal investigations under subsection (b)..

(b) Clerical Amendment.--The table of contents in the first section

of that Act is amended by striking the item relating to section 105B and inserting the following new items:

``Sec. 105B. Disclosure of foreign intelligence acquired in criminal

investigations; notice of criminal investigations of foreign 
          intelligence sources.

``Sec. 105C. Protection of the operational files of the National Imagery

and Mapping Agency..

SEC. 906. FOREIGN TERRORIST ASSET TRACKING CENTER.

(a) Report <<NOTE: Deadline.>> on Reconfiguration.--Not later than

February 1, 2002, the Attorney General, the Director of Central Intelligence, and the Secretary of the Treasury shall jointly submit to Congress a report on the feasibility and desirability of reconfiguring the Foreign Terrorist Asset Tracking Center and the Office of Foreign Assets Control of the Department of the Treasury in order to establish a capability to provide for the effective and efficient analysis and dissemination of foreign intelligence relating to the financial capabilities and resources of international terrorist organizations.

Page 115 STAT. 390Edit

(b) Report Requirements.--(1) In preparing the report under

subsection (a), the Attorney General, the Secretary, and the Director shall consider whether, and to what extent, the capacities and resources of the Financial Crimes Enforcement Center of the Department of the Treasury may be integrated into the capability contemplated by the report.

(2) If the Attorney General, Secretary, and the Director determine

that it is feasible and desirable to undertake the reconfiguration described in subsection (a) in order to establish the capability described in that subsection, the Attorney General, the Secretary, and the Director shall include with the report under that subsection a detailed proposal for legislation to achieve the reconfiguration.

SEC. 907. NATIONAL VIRTUAL TRANSLATION CENTER.

(a) Report <<NOTE: Deadline.>> on Establishment.--(1) Not later than

February 1, 2002, the Director of Central Intelligence shall, in consultation with the Director of the Federal Bureau of Investigation, submit to the appropriate committees of Congress a report on the establishment and maintenance within the intelligence community of an element for purposes of providing timely and accurate translations of foreign intelligence for all other elements of the intelligence community. In the report, the element shall be referred to as the ``National Virtual Translation Center.

(2) The report on the element described in paragraph (1) shall

discuss the use of state-of-the-art communications technology, the integration of existing translation capabilities in the intelligence community, and the utilization of remote-connection capacities so as to minimize the need for a central physical facility for the element.

(b) Resources.--The report on the element required by subsection (a)

shall address the following:

(1) The assignment to the element of a staff of individuals 
       possessing a broad range of linguistic and translation skills 
       appropriate for the purposes of the element.
           (2) The provision to the element of communications 
       capabilities and systems that are commensurate with the most 
       current and sophisticated communications capabilities and 
       systems available to other elements of intelligence community.
           (3) The assurance, to the maximum extent practicable, that 
       the communications capabilities and systems provided to the 
       element will be compatible with communications capabilities and 
       systems utilized by the Federal Bureau of Investigation in 
       securing timely and accurate translations of foreign language 
       materials for law enforcement investigations.
           (4) The development of a communications infrastructure to 
       ensure the efficient and secure use of the translation 
       capabilities of the element.
(c) Secure Communications.--The report shall include a discussion of

the creation of secure electronic communications between the element described by subsection (a) and the other elements of the intelligence community.

(d) Definitions.--In this section:
           (1) Foreign intelligence.--The term ``foreign intelligence 
       has the meaning given that term in section 3(2) of the National 
       Security Act of 1947 (50 U.S.C. 401a(2)).
           (2) Element of the intelligence community.--The term 
       ``element of the intelligence community means any element

Page 115 STAT. 391Edit

of the intelligence community specified or designated under 
       section 3(4) of the National Security Act of 1947 (50 U.S.C. 
       401a(4)).

SEC. 908. <<NOTE: 28 USC 509 note.>> TRAINING OF GOVERNMENT OFFICIALS

REGARDING IDENTIFICATION AND USE OF FOREIGN INTELLIGENCE.
(a) Program Required.--The Attorney General shall, in consultation

with the Director of Central Intelligence, carry out a program to provide appropriate training to officials described in subsection (b) in order to assist such officials in--

(1) identifying foreign intelligence information in the 
       course of their duties; and
           (2) utilizing foreign intelligence information in the course 
       of their duties, to the extent that the utilization of such 
       information is appropriate for such duties.
(b) Officials.--The officials provided training under subsection (a)

are, at the discretion of the Attorney General and the Director, the following:

(1) Officials of the Federal Government who are not 
       ordinarily engaged in the collection, dissemination, and use of 
       foreign intelligence in the performance of their duties.
           (2) Officials of State and local governments who encounter, 
       or may encounter in the course of a terrorist event, foreign 
       intelligence in the performance of their duties.
(c) Authorization of Appropriations.--There is hereby authorized to

be appropriated for the Department of Justice such sums as may be necessary for purposes of carrying out the program required by subsection (a).

TITLE X--MISCELLANEOUS

SEC. 1001. <<NOTE: 5 USC app.>> REVIEW OF THE DEPARTMENT OF JUSTICE.

The Inspector General of the Department of Justice shall designate

one official who shall--

(1) review information and receive complaints alleging 
       abuses of civil rights and civil liberties by employees and 
       officials of the Department of Justice;
           (2) <<NOTE: Public information. Internet.>> make public 
       through the Internet, radio, television, and newspaper 
       advertisements information on the responsibilities and functions 
       of, and how to contact, the official; and
           (3) <<NOTE: Reports.>> submit to the Committee on the 
       Judiciary of the House of Representatives and the Committee on 
       the Judiciary of the Senate on a semi-annual basis a report on 
       the implementation of this subsection and detailing any abuses 
       described in paragraph (1), including a description of the use 
       of funds appropriations used to carry out this subsection.

SEC. 1002. SENSE OF CONGRESS.

(a) Findings.--Congress finds that--
           (1) all Americans are united in condemning, in the strongest 
       possible terms, the terrorists who planned and carried out the 
       attacks against the United States on September 11, 2001, and in 
       pursuing all those responsible for those attacks and their 
       sponsors until they are brought to justice;
           (2) Sikh-Americans form a vibrant, peaceful, and law-abiding 
       part of America's people;

Page 115 STAT. 392Edit

(3) approximately 500,000 Sikhs reside in the United States 
       and are a vital part of the Nation;
           (4) Sikh-Americans stand resolutely in support of the 
       commitment of our Government to bring the terrorists and those 
       that harbor them to justice;
           (5) the Sikh faith is a distinct religion with a distinct 
       religious and ethnic identity that has its own places of worship 
       and a distinct holy text and religious tenets;
           (6) many Sikh-Americans, who are easily recognizable by 
       their turbans and beards, which are required articles of their 
       faith, have suffered both verbal and physical assaults as a 
       result of misguided anger toward Arab-Americans and Muslim-
       Americans in the wake of the September 11, 2001 terrorist 
       attack;
           (7) Sikh-Americans, as do all Americans, condemn acts of 
       prejudice against any American; and
           (8) Congress is seriously concerned by the number of crimes 
       against Sikh-Americans and other Americans all across the Nation 
       that have been reported in the wake of the tragic events that 
       unfolded on September 11, 2001.
(b) Sense of Congress.--Congress--
           (1) declares that, in the quest to identify, locate, and 
       bring to justice the perpetrators and sponsors of the terrorist 
       attacks on the United States on September 11, 2001, the civil 
       rights and civil liberties of all Americans, including Sikh-
       Americans, should be protected;
           (2) condemns bigotry and any acts of violence or 
       discrimination against any Americans, including Sikh-Americans;
           (3) calls upon local and Federal law enforcement authorities 
       to work to prevent crimes against all Americans, including Sikh-
       Americans; and
           (4) calls upon local and Federal law enforcement authorities 
       to prosecute to the fullest extent of the law all those who 
       commit crimes.

SEC. 1003. DEFINITION OF ``ELECTRONIC SURVEILLANCE.

Section 101(f)(2) of the Foreign Intelligence Surveillance Act (50

U.S.C. 1801(f)(2)) is amended by adding at the end before the semicolon the following: ``, but does not include the acquisition of those communications of computer trespassers that would be permissible under section 2511(2)(i) of title 18, United States Code.

SEC. 1004. VENUE IN MONEY LAUNDERING CASES.

Section 1956 of title 18, United States Code, is amended by adding

at the end the following:

``(i) Venue.--(1) Except as provided in paragraph (2), a prosecution

for an offense under this section or section 1957 may be brought in--

``(A) any district in which the financial or monetary 
       transaction is conducted; or
           ``(B) any district where a prosecution for the underlying 
       specified unlawful activity could be brought, if the defendant 
       participated in the transfer of the proceeds of the specified 
       unlawful activity from that district to the district where the 
       financial or monetary transaction is conducted.
``(2) A prosecution for an attempt or conspiracy offense under this

section or section 1957 may be brought in the district where venue would lie for the completed offense under paragraph (1),

Page 115 STAT. 393Edit

or in any other district where an act in furtherance of the attempt or conspiracy took place.

``(3) For purposes of this section, a transfer of funds from 1 place

to another, by wire or any other means, shall constitute a single, continuing transaction. Any person who conducts (as that term is defined in subsection (c)(2)) any portion of the transaction may be charged in any district in which the transaction takes place..

SEC. 1005. <<NOTE: Inter-governmental relations. 28 USC 509

note.>> FIRST RESPONDERS ASSISTANCE ACT.
(a) Grant Authorization.--The Attorney General shall make grants

described in subsections (b) and (c) to States and units of local government to improve the ability of State and local law enforcement, fire department and first responders to respond to and prevent acts of terrorism.

(b) Terrorism Prevention Grants.--Terrorism prevention grants under

this subsection may be used for programs, projects, and other activities to--

(1) hire additional law enforcement personnel dedicated to 
       intelligence gathering and analysis functions, including the 
       formation of full-time intelligence and analysis units;
           (2) purchase technology and equipment for intelligence 
       gathering and analysis functions, including wire-tap, pen links, 
       cameras, and computer hardware and software;
           (3) purchase equipment for responding to a critical 
       incident, including protective equipment for patrol officers 
       such as quick masks;
           (4) purchase equipment for managing a critical incident, 
       such as communications equipment for improved interoperability 
       among surrounding jurisdictions and mobile command posts for 
       overall scene management; and
           (5) fund technical assistance programs that emphasize 
       coordination among neighboring law enforcement agencies for 
       sharing resources, and resources coordination among law 
       enforcement agencies for combining intelligence gathering and 
       analysis functions, and the development of policy, procedures, 
       memorandums of understanding, and other best practices.
(c) Antiterrorism Training Grants.--Antiterrorism training grants

under this subsection may be used for programs, projects, and other activities to address--

(1) intelligence gathering and analysis techniques;
           (2) community engagement and outreach;
           (3) critical incident management for all forms of terrorist 
       attack;
           (4) threat assessment capabilities;
           (5) conducting followup investigations; and
           (6) stabilizing a community after a terrorist incident.
(d) Application.--
           (1) In general.--Each eligible entity that desires to 
       receive a grant under this section shall submit an application 
       to the Attorney General, at such time, in such manner, and 
       accompanied by such additional information as the Attorney 
       General may reasonably require.
           (2) Contents.--Each application submitted pursuant to 
       paragraph (1) shall--
                   (A) describe the activities for which assistance 
               under this section is sought; and

Page 115 STAT. 394Edit

(B) provide such additional assurances as the 
               Attorney General determines to be essential to ensure 
               compliance with the requirements of this section.
(e) Minimum Amount.--If all applications submitted by a State or

units of local government within that State have not been funded under this section in any fiscal year, that State, if it qualifies, and the units of local government within that State, shall receive in that fiscal year not less than 0.5 percent of the total amount appropriated in that fiscal year for grants under this section.

(f) Authorization of Appropriations.--There are authorized to be

appropriated $25,000,000 for each of the fiscal years 2003 through 2007.

SEC. 1006. INADMISSIBILITY OF ALIENS ENGAGED IN MONEY LAUNDERING.

(a) Amendment to Immigration and Nationality Act.--Section 212(a)(2)

of the Immigration and Nationality Act (8 U.S.C. 1182(a)(2)) is amended by adding at the end the following:

``(I) Money laundering.--Any alien--
                         ``(i) who a consular officer or the Attorney 
                     General knows, or has reason to believe, has 
                     engaged, is engaging, or seeks to enter the United 
                     States to engage, in an offense which is described 
                     in section 1956 or 1957 of title 18, United States 
                     Code (relating to laundering of monetary 
                     instruments); or
                         ``(ii) who a consular officer or the Attorney 
                     General knows is, or has been, a knowing aider, 
                     abettor, assister, conspirator, or colluder with 
                     others in an offense which is described in such 
                     section;
               is inadmissible..
(b) Money <<NOTE: Deadline. Records. Certification. 8 USC 1182

note.>> Laundering Watchlist.--Not later than 90 days after the date of the enactment of this Act, the Secretary of State shall develop, implement, and certify to the Congress that there has been established a money laundering watchlist, which identifies individuals worldwide who are known or suspected of money laundering, which is readily accessible to, and shall be checked by, a consular or other Federal official prior to the issuance of a visa or admission to the United States. The Secretary of State shall develop and continually update the watchlist in cooperation with the Attorney General, the Secretary of the Treasury, and the Director of Central Intelligence.

SEC. 1007. AUTHORIZATION OF FUNDS FOR DEA POLICE TRAINING IN SOUTH AND

CENTRAL ASIA.
In addition to amounts otherwise available to carry out section 481

of the Foreign Assistance Act of 1961 (22 U.S.C. 2291), there is authorized to be appropriated to the President not less than $5,000,000 for fiscal year 2002 for regional antidrug training in the Republic of Turkey by the Drug Enforcement Administration for police, as well as increased precursor chemical control efforts in the South and Central Asia region.

Page 115 STAT. 395Edit

SEC. 1008. FEASIBILITY STUDY ON USE OF BIOMETRIC IDENTIFIER SCANNING

SYSTEM WITH ACCESS TO THE FBI INTEGRATED AUTOMATED 
           FINGERPRINT IDENTIFICATION SYSTEM AT OVERSEAS CONSULAR POSTS 
           AND POINTS OF ENTRY TO THE UNITED STATES.
(a) In General.--The Attorney General, in consultation with the

Secretary of State and the Secretary of Transportation, shall conduct a study on the feasibility of utilizing a biometric identifier (fingerprint) scanning system, with access to the database of the Federal Bureau of Investigation Integrated Automated Fingerprint Identification System, at consular offices abroad and at points of entry into the United States to enhance the ability of State Department and immigration officials to identify aliens who may be wanted in connection with criminal or terrorist investigations in the United States or abroad prior to the issuance of visas or entry into the United States.

(b) Report <<NOTE: Deadline.>> to Congress.--Not later than 90 days

after the date of the enactment of this Act, the Attorney General shall submit a report summarizing the findings of the study authorized under subsection (a) to the Committee on International Relations and the Committee on the Judiciary of the House of Representatives and the Committee on Foreign Relations and the Committee on the Judiciary of the Senate.

SEC. 1009. STUDY OF ACCESS.

(a) In <<NOTE: Deadline.>> General.--Not later than 120 days after

enactment of this Act, the Federal Bureau of Investigation shall study and report to Congress on the feasibility of providing to airlines access via computer to the names of passengers who are suspected of terrorist activity by Federal officials.

(b) Authorization.--There are authorized to be appropriated not more

than $250,000 to carry out subsection (a).

SEC. 1010. <<NOTE: 10 USC 2465 note.>> TEMPORARY AUTHORITY TO CONTRACT

WITH LOCAL AND STATE GOVERNMENTS FOR PERFORMANCE OF SECURITY 
           FUNCTIONS AT UNITED STATES MILITARY INSTALLATIONS.
(a) In General.--Notwithstanding section 2465 of title 10, United

States Code, during the period of time that United States armed forces are engaged in Operation Enduring Freedom, and for the period of 180 days thereafter, funds appropriated to the Department of Defense may be obligated and expended for the purpose of entering into contracts or other agreements for the performance of security functions at any military installation or facility in the United States with a proximately located local or State government, or combination of such governments, whether or not any such government is obligated to provide such services to the general public without compensation.

(b) Training.--Any contract or agreement entered into under this

section shall prescribe standards for the training and other qualifications of local government law enforcement personnel who perform security functions under this section in accordance with criteria established by the Secretary of the service concerned.

(c) Report.--One <<NOTE: Deadline.>> year after the date of

enactment of this section, the Secretary of Defense shall submit a report to the Committees on Armed Services of the Senate and the House of Representatives describing the use of the authority granted under

Page 115 STAT. 396Edit

this section and the use by the Department of Defense of other means to improve the performance of security functions on military installations and facilities located within the United States.

SEC. 1011. <<NOTE: Crimes Against Charitable Americans Act of

2001.>> CRIMES AGAINST CHARITABLE AMERICANS.
(a) Short <<NOTE: 15 USC 6101 note.>> Title.--This section may be

cited as the ``Crimes Against Charitable Americans Act of 2001.

(b) Telemarketing and Consumer Fraud Abuse.--The Telemarketing and

Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6101 et seq.) is amended--

(1) in section 3(a)(2), <<NOTE: 15 USC 6102.>> by inserting 
       after ``practices the second place it appears the following: 
       ``which shall include fraudulent charitable solicitations, 
       and;
           (2) in section 3(a)(3)--
                   (A) in subparagraph (B), by striking ``and at the 
               end;
                   (B) in subparagraph (C), by striking the period at 
               the end and inserting ``; and; and
                   (C) by adding at the end the following:
                   ``(D) a requirement that any person engaged in 
               telemarketing for the solicitation of charitable 
               contributions, donations, or gifts of money or any other 
               thing of value, shall promptly and clearly disclose to 
               the person receiving the call that the purpose of the 
               call is to solicit charitable contributions, donations, 
               or gifts, and make such other disclosures as the 
               Commission considers appropriate, including the name and 
               mailing address of the charitable organization on behalf 
               of which the solicitation is made.; and
           (3) <<NOTE: 15 USC 6106.>> in section 7(4), by inserting ``, 
       or a charitable contribution, donation, or gift of money or any 
       other thing of value, after ``services.
(c) Red Cross Members or Agents.--Section 917 of title 18, United

States Code, is amended by striking ``one year and inserting ``5 years.

(d) Telemarketing Fraud.--Section 2325(1) of title 18, United States

Code, is amended--

(1) in subparagraph (A), by striking ``or at the end;
           (2) in subparagraph (B), by striking the comma at the end 
       and inserting ``; or;
           (3) by inserting after subparagraph (B) the following:
                   ``(C) a charitable contribution, donation, or gift 
               of money or any other thing of value,; and
           (4) in the flush language, by inserting ``or charitable 
       contributor, or donor after ``participant.

SEC. 1012. <<NOTE: Inter-governmental relations.>> LIMITATION ON

ISSUANCE OF HAZMAT LICENSES.
(a) Limitation.--
           (1) In general.--Chapter 51 of title 49, United States Code, 
       is amended by inserting after section 5103 the following new 
       section:

``Sec. 5103a. Limitation on issuance of hazmat licenses

``(a) Limitation.--
           ``(1) Issuance of licenses.--A State may not issue to any 
       individual a license to operate a motor vehicle transporting in 
       commerce a hazardous material unless the Secretary of

Page 115 STAT. 397Edit

Transportation has first determined, upon receipt of a 
       notification under subsection (c)(1)(B), that the individual 
       does not pose a security risk warranting denial of the license.
           ``(2) Renewals included.--For the purposes of this section, 
       the term `issue', with respect to a license, includes renewal of 
       the license.
``(b) Hazardous Materials Described.--The limitation in subsection

(a) shall apply with respect to--

``(1) any material defined as a hazardous material by the 
       Secretary of Transportation; and
           ``(2) any chemical or biological material or agent 
       determined by the Secretary of Health and Human Services or the 
       Attorney General as being a threat to the national security of 
       the United States.
``(c) Background Records Check.--
           ``(1) In general.--Upon the request of a State regarding 
       issuance of a license described in subsection (a)(1) to an 
       individual, the Attorney General--
                   ``(A) shall carry out a background records check 
               regarding the individual; and
                   ``(B) upon completing the background records check, 
               shall notify the Secretary of Transportation of the 
               completion and results of the background records check.
           ``(2) Scope.--A background records check regarding an 
       individual under this subsection shall consist of the following:
                   ``(A) A check of the relevant criminal history data 
               bases.
                   ``(B) In the case of an alien, a check of the 
               relevant data bases to determine the status of the alien 
               under the immigration laws of the United States.
                   ``(C) As appropriate, a check of the relevant 
               international data bases through Interpol-U.S. National 
               Central Bureau or other appropriate means.
``(d) Reporting Requirement.--Each State shall submit to the

Secretary of Transportation, at such time and in such manner as the Secretary may prescribe, the name, address, and such other information as the Secretary may require, concerning--

``(1) each alien to whom the State issues a license 
       described in subsection (a); and
           ``(2) each other individual to whom such a license is 
       issued, as the Secretary may require.
``(e) Alien Defined.--In this section, the term `alien' has the

meaning given the term in section 101(a)(3) of the Immigration and Nationality Act..

(2) Clerical amendment.--The table of sections at the 
       beginning of such chapter is amended by inserting after the item 
       relating to section 5103 the following new item:

``5103a. Limitation on issuance of hazmat licenses..

(b) Regulation of Driver Fitness.--Section 31305(a)(5) of title 49,

United States Code, is amended--

(1) by striking ``and at the end of subparagraph (A);
           (2) by inserting ``and at the end of subparagraph (B); and
           (3) by adding at the end the following new subparagraph:
                   ``(C) is licensed by a State to operate the vehicle 
               after having first been determined under section 5103a 
               of this title as not posing a security risk warranting 
               denial of the license..

Page 115 STAT. 398Edit

(c) Authorization <<NOTE: 49 USC 5103a note.>> of Appropriations.--

There is authorized to be appropriated for the Department of Transportation and the Department of Justice such amounts as may be necessary to carry out section 5103a of title 49, United States Code, as added by subsection (a).

SEC. 1013. EXPRESSING THE SENSE OF THE SENATE CONCERNING THE PROVISION

OF FUNDING FOR BIOTERRORISM PREPAREDNESS AND RESPONSE.
(a) Findings.--The Senate finds the following:
           (1) Additional steps must be taken to better prepare the 
       United States to respond to potential bioterrorism attacks.
           (2) The threat of a bioterrorist attack is still remote, but 
       is increasing for a variety of reasons, including--
                   (A) public pronouncements by Osama bin Laden that it 
               is his religious duty to acquire weapons of mass 
               destruction, including chemical and biological weapons;
                   (B) the callous disregard for innocent human life as 
               demonstrated by the terrorists' attacks of September 11, 
               2001;
                   (C) the resources and motivation of known terrorists 
               and their sponsors and supporters to use biological 
               warfare;
                   (D) recent scientific and technological advances in 
               agent delivery technology such as aerosolization that 
               have made weaponization of certain germs much easier; 
               and
                   (E) the increasing access to the technologies and 
               expertise necessary to construct and deploy chemical and 
               biological weapons of mass destruction.
           (3) Coordination of Federal, State, and local terrorism 
       research, preparedness, and response programs must be improved.
           (4) States, local areas, and public health officials must 
       have enhanced resources and expertise in order to respond to a 
       potential bioterrorist attack.
           (5) National, State, and local communication capacities must 
       be enhanced to combat the spread of chemical and biological 
       illness.
           (6) Greater resources must be provided to increase the 
       capacity of hospitals and local health care workers to respond 
       to public health threats.
           (7) Health care professionals must be better trained to 
       recognize, diagnose, and treat illnesses arising from 
       biochemical attacks.
           (8) Additional supplies may be essential to increase the 
       readiness of the United States to respond to a bio-attack.
           (9) Improvements must be made in assuring the safety of the 
       food supply.
           (10) New vaccines and treatments are needed to assure that 
       we have an adequate response to a biochemical attack.
           (11) Government research, preparedness, and response 
       programs need to utilize private sector expertise and resources.
           (12) Now is the time to strengthen our public health system 
       and ensure that the United States is adequately prepared to 
       respond to potential bioterrorist attacks, natural infectious 
       disease outbreaks, and other challenges and potential threats to 
       the public health.

Page 115 STAT. 399Edit

(b) Sense of the Senate.--It is the sense of the Senate that the

United States should make a substantial new investment this year toward the following:

(1) Improving State and local preparedness capabilities by 
       upgrading State and local surveillance epidemiology, assisting 
       in the development of response plans, assuring adequate staffing 
       and training of health professionals to diagnose and care for 
       victims of bioterrorism, extending the electronics 
       communications networks and training personnel, and improving 
       public health laboratories.
           (2) Improving hospital response capabilities by assisting 
       hospitals in developing plans for a bioterrorist attack and 
       improving the surge capacity of hospitals.
           (3) Upgrading the bioterrorism capabilities of the Centers 
       for Disease Control and Prevention through improving rapid 
       identification and health early warning systems.
           (4) Improving disaster response medical systems, such as the 
       National Disaster Medical System and the Metropolitan Medical 
       Response System and Epidemic Intelligence Service.
           (5) Targeting research to assist with the development of 
       appropriate therapeutics and vaccines for likely bioterrorist 
       agents and assisting with expedited drug and device review 
       through the Food and Drug Administration.
           (6) Improving the National Pharmaceutical Stockpile program 
       by increasing the amount of necessary therapies (including 
       smallpox vaccines and other post-exposure vaccines) and ensuring 
       the appropriate deployment of stockpiles.
           (7) Targeting activities to increase food safety at the Food 
       and Drug Administration.
           (8) Increasing international cooperation to secure dangerous 
       biological agents, increase surveillance, and retrain biological 
       warfare specialists.

SEC. 1014. <<NOTE: 42 USC 3711.>> GRANT PROGRAM FOR STATE AND LOCAL

DOMESTIC PREPAREDNESS SUPPORT.
(a) In General.--The Office for State and Local Domestic

Preparedness Support of the Office of Justice Programs shall make a grant to each State, which shall be used by the State, in conjunction with units of local government, to enhance the capability of State and local jurisdictions to prepare for and respond to terrorist acts including events of terrorism involving weapons of mass destruction and biological, nuclear, radiological, incendiary, chemical, and explosive devices.

(b) Use of Grant Amounts.--Grants under this section may be used to

purchase needed equipment and to provide training and technical assistance to State and local first responders.

(c) Authorization of Appropriations.--
           (1) In general.--There is authorized to be appropriated to 
       carry out this section such sums as necessary for each of fiscal 
       years 2002 through 2007.
           (2) Limitations.--Of the amount made available to carry out 
       this section in any fiscal year not more than 3 percent may be 
       used by the Attorney General for salaries and administrative 
       expenses.
           (3) Minimum amount.--Each State shall be allocated in each 
       fiscal year under this section not less than 0.75 percent of the 
       total amount appropriated in the fiscal year for grants

pursuant to this section, except that the United States Virgin Islands, America Samoa, Guam, and the Northern Mariana Islands each shall be allocated 0.25 percent.

SEC. 1015. EXPANSION AND REAUTHORIZATION OF THE CRIME IDENTIFICATION TECHNOLOGY ACT FOR ANTITERRORISM GRANTS TO STATES AND LOCALITIES.Edit

Section 102 of the Crime Identification Technology Act of 1998 (42 U.S.C. 14601) is amended--

(1) in subsection (b)--
                   (A) in paragraph (16), by striking ``and at the 
               end;
                   (B) in paragraph (17), by striking the period and 
               inserting ``; and; and
                   (C) by adding at the end the following:
           ``(18) notwithstanding subsection (c), antiterrorism 
       purposes as they relate to any other uses under this section or 
       for other antiterrorism programs.; and
           (2) in subsection (e)(1), by striking ``this section and 
       all that follows and inserting ``this section $250,000,000 for 
       each of fiscal years 2002 through 2007..

SEC. 1016. <<NOTE: Critical Infrastructure Protection Act of 2001. 42 USC 5195c.>> CRITICAL INFRASTRUCTURES PROTECTION.Edit

(a) Short Title.--This section may be cited as the ``Critical Infrastructures Protection Act of 2001.
(b) Findings.--Congress makes the following findings:
(1) The information revolution has transformed the conduct of business and the operations of government as well as the infrastructure relied upon for the defense and national security of the United States.
(2) Private business, government, and the national security apparatus increasingly depend on an interdependent network of critical physical and information infrastructures, including telecommunications, energy, financial services, water, and transportation sectors.
(3) A continuous national effort is required to ensure the reliable provision of cyber and physical infrastructure services critical to maintaining the national defense, continuity of government, economic prosperity, and quality of life in the United States.
(4) This national effort requires extensive modeling and analytic capabilities for purposes of evaluating appropriate mechanisms to ensure the stability of these complex and interdependent systems, and to underpin policy recommendations, so as to achieve the continuous viability and adequate protection of the critical infrastructure of the Nation.
(c) Policy of the United States.--It is the policy of the United States--
(1) that any physical or virtual disruption of the operation of the critical infrastructures of the United States be rare, brief, geographically limited in effect, manageable, and minimally detrimental to the economy, human and government services, and national security of the United States;
(2) that actions necessary to achieve the policy stated in paragraph (1) be carried out in a public-private partnership involving corporate and non-governmental organizations; and
(3) to have in place a comprehensive and effective program to ensure the continuity of essential Federal Government functions under all circumstances.
(d) Establishment of National Competence for Critical Infrastructure Protection.
  1. Support of critical infrastructure protection and continuity by national infrastructure simulation and analysis center.--There shall be established the National Infrastructure Simulation and Analysis Center (NISAC) to serve as a source of national competence to address critical infrastructure protection and continuity through support for activities related to counterterrorism, threat assessment, and risk mitigation.
  2. Particular support.--The support provided under paragraph (1) shall include the following:
(A) Modeling, simulation, and analysis of the systems comprising critical infrastructures, including cyber infrastructure, telecommunications infrastructure, and physical infrastructure, in order to enhance understanding of the large-scale complexity of such systems and to facilitate modification of such systems to mitigate the threats to such systems and to critical infrastructures generally.
(B) Acquisition from State and local governments and the private sector of data necessary to create and maintain models of such systems and of critical infrastructures generally.
(C) Utilization of modeling, simulation, and analysis under subparagraph (A) to provide education and training to policymakers on matters relating to--
(i) the analysis conducted under that subparagraph;
(ii) the implications of unintended or unintentional disturbances to critical infrastructures; and
(iii) responses to incidents or crises involving critical infrastructures, including the continuity of government and private sector activities through and after such incidents or crises.
(D) Utilization of modeling, simulation, and analysis under subparagraph (A) to provide recommendations to policymakers, and to departments and agencies of the Federal Government and private sector persons and entities upon request, regarding means of enhancing the stability of, and preserving, critical infrastructures.
(3) Recipient of certain support.--Modeling, simulation, and analysis provided under this subsection shall be provided, in particular, to relevant Federal, State, and local entities responsible for critical infrastructure protection and policy.

(e) Critical Infrastructure Defined.--In this section, the term ``critical infrastructure means systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health or safety, or any combination of those matters.

(f) Authorization of Appropriations.--There is hereby authorized for the Department of Defense for fiscal year 2002, $20,000,000 for the Defense Threat Reduction Agency for activities of the National Infrastructure Simulation and Analysis Center under this section in that fiscal year.


StatusEdit

Approved October 26, 2001.

LEGISLATIVE HISTORY--H.R. 3162:


CONGRESSIONAL RECORD, Vol. 147 (2001):
            Oct. 23, 24, considered and passed House.
            Oct. 25, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 37 (2001):
            Oct. 26, Presidential remarks.

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