INTERNATIONAL MONEY LAUNDERING REPORTS.

SEC. 1519. INTERNATIONAL MONEY LAUNDERING REPORTS. (a) United States Objectives.—Section 481(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2291(a)(1) is amended— (1) by striking out “and” at the end of subparagraph (D); (2) by redesignating subparagraph (E) as subparagraph (F); and (3) by inserting after subparagraph (D) the following new subparagraph: “(E) the objective of the United States in dealing with the problem of international money laundering should be to ensure that countries adopt comprehensive domestic measures against money laundering and cooperative with each other in narcotics money laundering investigations, prosecutions, and related forfeiture actions; and” (b) Annual Reports.—Section 481(e) of that Act (22 U.S.C. 2291(e)) is amended— (1) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively; and 106 STAT. 4061 (2) by inserting after paragraph (6) the following new paragraph (7): (7) (A) Each report pursuant to this subsection shall include a report on major money laundering countries. This report shall specify— “(i) which countries are major money laundering countries; “(ii) which countries identified pursuant to clause (i) have financial institutions engaging in currency transactions involving international narcotics trafficking proceeds that include significant amounts of United States currency or currency derived from illegal drug sales in the United States or that otherwise significantly affect the United States; “(iii) which countries identified pursuant to clause (ii) have not reached agreement with the United States authorities on a mechanism for exchanging adequate records in connection with narcotics investigations and proceedings; “(iv) which countries identified pursuant to clause (iii)— “(I) are negotiating in good faith with the United States to establish such a record-exchange mechanism, or “(II) have adopted laws or regulations that ensure the availability to appropriate United States Government personnel and those of other governments of adequate records in connection with narcotics investigations and proceedings; and “(v) which countries identified pursuant to clause (i)— “(I) have ratified the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and are taking steps to implement that Convention and other applicable agreements and conventions such as the recommendations of the Financial Action Task Force, the policy directive of the European Community, the legislative guidelines of the Organization of American States, and other similar declarations, and “(II) have entered into bilateral agreements for the exchange of information on money-laundering with countries other than the United States, “(B) In addition, for each major money laundering country, the report shall include findings on the country’s adoption of law and regulations considered essential to prevent narcotics-related money laundering. Such findings shall include whether a country has— “(i) criminalized narcotics money laundering; “(ii) required banks and other financial institutions to know and record the identity of customers engaging in significant transactions, including the recording of large currency trans-actions at thresholds appropriate to that country’s economic situation; “(iii) required banks and other financial institutions to maintain, for an adequate time, records necessary to reconstruct significant transactions through financial institutions in order to be able to respond quickly to information requests from appropriate government authorities in narcotics-related money laundering cases; “(iv) required or allowed financial institutions to report suspicious transactions; “(v) established systems for identifying, tracing, freezing, seizing, and forfeiting narcotics-related assets; 106 STAT. 4062 “(vi) enacted laws for the sharing of seized narcotics assets with other governments; “(vii) cooperated, when requested, with appropriate law enforcement agencies of other governments investigating financial crimes related to narcotics- and “(viii) addressed the problem on international transportation of illegal-source currency and monetary instruments. The report shall also detail instances of refusals to cooperate with foreign governments, and any actions taken by the United States Government and any international organization to address such obstacles, including the imposition of sanctions or penalties. “(C) The report shall also include information on multilateral and bilateral strategies pursued by the Department of State, the Department of Justice, the Department of the Treasury, and other relevant United States Government agencies, either collectively or individually, to ensure the cooperation of foreign governments with respect to narcotics-related money laundering. “(D) The report shall include specific detail to demonstrate that all United States Government agencies are pursuing a common strategy with respect to achieving international cooperation against money laundering and are pursuing a common strategy with respect to major money laundering countries, including a summary of United States objectives on a country-by-country basis. “(E) As used in this paragraph, the term ‘major money laundering country’ means a country whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking.”. (c) Definition of Major Drug-Transit Country.—Section 481(i)(5) of that Act (22 U.S.C. 2291(i)(6)) is amended— (1) by inserting “or” at the end of subparagraph (A); (2) by striking out “or” at the end of subparagraph (B) and inserting in lieu thereof a period; and (3) by striking out subparagraph (C).