REMOVING PARTIES INVOLVED IN CURRENCY REPORTING VIOLATIONS.

SEC. 1504. REMOVING PARTIES INVOLVED IN CURRENCY REPORTING VIOLATIONS. (a) FDIC-Insured Institutions.— (1) Violation of reporting requirements.—Section 8(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(2)) is amended to read as follows: “(2) Specific violations.— “(A) In general.— Whenever the appropriate Federal banking agency determines that— “(i) an institution-affiliated party has committed a violation of any provision of subchapter II of chapter 106 STAT. 4052 53 of title 31, United States Code, and such violation was not inadvertent or unintentional; “(ii) an officer or director of an insured depository institution has knowledge that an institution-affiliated party of the insured depository institution has violated any such provision or any provision of law referred to in subsection (g)(1)(A)(ii); or “(iii) an officer or director of an insured depository institution has committed any violation of the Depository Institution Management Interlocks Act, the agency may serve upon such party, officer, or director a written notice of the agency’s intention to remove such party from office. “(B) Factors to be considered.—In determining whether an officer or director should be removed as a result of the application of subparagraph (A)(ii), the agency shall consider whether the officer or director took appropriate action to stop, or to prevent the recurrence of, a violation described in such subparagraph.”. (2) Certain felony charges.—Section 8(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(g)(1)) is amended to read as follows: “(1) Suspension or prohibition.— “(A) In general.— Whenever any institution-affiliated party is charged in any information, indictment, or com-plaint, with the commission of or participation in— “(i) a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under State or Federal law, or “(ii) a criminal violation of section 1956, 1957, or 1960 of title 18, United States Code, or section 5322 of title 31, United States Code, the appropriate Federal banking agency may, if continued service or participation by such party may pose a threat to the interests of the depository institution’s depositors or may threaten to impair public confidence in the depository institution, by written notice served upon such party, suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of the depository institution. “(B) Provisions applicable to notice.— “(i) Copy.—A copy of any notice under subparagraph (A) shall also be served upon the depository institution. “(ii) Effective period.—A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in such subparagraph is finally disposed of or until terminated by the agency. “(C) Removal or prohibition.— “(i) In general.—If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against an institution-affiliated party in connection with a crime described in subparagraph (A)(i), at such time as such judgment is not subject to further appellate review, the appropriate Federal banking agency may, if continued serv-106 STAT. 4053ice or participation by such party may pose a threat to the interests of the depository institution’s depositors or may threaten to impair public confidence in the depository institution, issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the depository institution without the prior written consent of the appropriate agency. “(ii) Required for certain offenses.—In the case of a judgment of conviction or agreement against an institution-affiliated party in connection with a violation described in subparagraph (A)(ii), the appropriate Federal banking agency shall issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the depository institution without the prior written consent of the appropriate agency. “(D) Provisions applicable to order.— “(i) Copy.—A copy of any order under subparagraph (C) shall also be served upon the depository institution, whereupon the institution-affiliated party who is subject to the order (if a director or an officer) shall cease to be a director or officer of such depository institution. “(ii) Effect of acquittal.—A finding of not guilty or other disposition of the charge shall not preclude the agency from instituting proceedings after such finding or disposition to remove such party from office or to prohibit further participation in depository institution affairs, pursuant to paragraph (1), (2), or (3) of subsection (e) of this section. “(iii) Effective period.—Any notice of suspension or order of removal issued under this paragraph shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (3) unless terminated by the agency.”. (b) Credit Unions.— (1) Violation of reporting requirements.—Section 206(g)(2) of the Federal Credit Union Act (12 U.S.C. 1786(g)(2)) is amended to read as follows: “(2) Specific violations.— “(A) In general.— Whenever the Board determines that— “(i) an institution-affiliated party has committed a violation of any provision of subchapter II of chapter 53 of title 31, United States Code, unless such violation was inadvertent or unintentional; “(ii) an officer or director of an insured credit union has knowledge that an institution-affiliated party of the insured credit union has violated any such provision or any provision of law referred to in subsection (l)(1)(A)(C); or “(iii) an officer or director of an insured credit union has committed any violation of the Depository Institution Management Interlocks Act, 106 STAT. 4054 the Board may serve upon such party, officer, or director a written notice of the Board’s intention to remove such officer or director from office. “(B) Factors to be considered.—In determining whether an officer or director should be removed as a result of the application of subparagraph (A)(h), the Board shall consider whether the officer or director took appropriate action to stop, or to prevent the recurrence of, a violation described in such subparagraph.”. (2) Certain felony charges.—Section 206(i))(1) of the Federal Credit Union Act (12 U.S.C. 1786(i))(1) is amended to read as follows: “(1) Suspension or prohibition authorized.— “(A) In general.— Whenever any institution-affiliated party is charged in any information, indictment, or com-plaint, with the commission of or participation in— “(i) a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under State or Federal law, or “(ii) a criminal violation of section 1956, 1957, or 1960 of title 18, United States Code, or section 5322 of title 31, United States Code, the Board may, if continued service or participation by such party may pose a threat to the interests of the credit unions members or may threaten to impair public confidence in the credit union, by written notice served upon such party, suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of the credit union. “(B) Provisions applicable to notice.— “(i) Copy.—A copy of any notice under subparagraph (A) shall also be served upon the credit union. “(ii) Effective period.—A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in such subparagraph is finally disposed of or until terminated by the Board. “(C) Removal or prohibition.— “(i) In general.—If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against an institution-affiliated party in connection with a crime described in subparagraph (A(i), at such time as such judgment is not subject to farther appellate review, we Board may, if continued service or participation by such party may pose a threat to the interests of the credit union–s members or may threaten to impair public confidence in the credit union, issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the credit union without the prior written consent of the Board. “(ii) Required for certain offenses.—In the case of a judgment of conviction or agreement against an institution-affiliated party in connection with a violation described in subparagraph (A)(ii), the Board shall issue and serve upon such party an order removing 106 STAT. 4055such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the credit union without the prior written consent of the Board. “(D) Provisions applicable to order.— “(i) Copy.—A copy of any order under subparagraph (C) shall also be served upon such credit union, whereupon such party (if a director or an officer) shall cease to be a director or officer of such credit union. “(ii) Effect of acquittal.—A finding of not guilty or other disposition of the charge shall not preclude the Board from instituting proceedings after such finding or disposition to remove such party from office or to prohibit further participation in credit union affairs, pursuant to paragraph (1), (2), or (3) of sub-section (g) of this section. “(iii) Effective period.—Any notice of suspension or order of removal issued under this paragraph shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (3) unless terminated by the Board,”. (c) Attorney General Notice Requirement.—Section 1956 of title 18, United States Code, is amended by adding at the end the following new subsection: “(g) Notice of Conviction of Financial Institutions.—If any financial institution or any officer, director, or employee of any financial institution has been found guilty of an offense under this section, section 1957 or 1960 of this title, or section 5322 of title 31, the Attorney General shall provide written notice of such fact to the appropriate regulatory agency for the financial institution.”. (d) Technical Corrections to Provisions Relating to Money Laundering Enforcement Activities.— (1) Section 5318(a)(1) of title 31, United States Code, is amended— (A) by striking “or the Postal Inspection Service”; and (B) by inserting “United States” before “Postal Service”. (2) Section 5322(a) of title 31, United States Code, is amended by striking “imprisonment” and inserting “imprisoned for”.