FINANCIAL FRAUD PROVISIONS.

SEC. 1079A. FINANCIAL FRAUD PROVISIONS.(a) Sentencing Guidelines.—(1) Securities fraud.—(A) Directive.—Pursuant to its authority under section 994 of title 28, United States Code, and in accordance with this paragraph, the United States Sentencing Commission shall review and, if appropriate, amend the Federal Sentencing Guidelines and policy statements applicable to persons convicted of offenses relating to securities fraud or any other similar provision of law, in order to reflect the intent of Congress that penalties for the offenses under the guidelines and policy statements appropriately account for the potential and actual harm to the public and the financial markets from the offenses.124 STAT. 2078(B) Requirements.—In making any amendments to the Federal Sentencing Guidelines and policy statements under subparagraph (A), the United States Sentencing Commission shall—(i) ensure that the guidelines and policy statements, particularly section 2B1.1(b)(14) and section 2B1.1(b)(17) (and any successors thereto), reflect—(I) the serious nature of the offenses described in subparagraph (A);(II) the need for an effective deterrent and appropriate punishment to prevent the offenses; and(III) the effectiveness of incarceration in furthering the objectives described in subclauses (I) and (II);(ii) consider the extent to which the guidelines appropriately account for the potential and actual harm to the public and the financial markets resulting from the offenses;(iii) ensure reasonable consistency with other relevant directives and guidelines and Federal statutes;(iv) make any necessary conforming changes to guidelines; and(v) ensure that the guidelines adequately meet the purposes of sentencing, as set forth in section 3553(a)(2) of title 18, United States Code.(2) Financial institution fraud.—(A) Directive.—Pursuant to its authority under section 994 of title 28, United States Code, and in accordance with this paragraph, the United States Sentencing Commission shall review and, if appropriate, amend the Federal Sentencing Guidelines and policy statements applicable to persons convicted of fraud offenses relating to financial institutions or federally related mortgage loans and any other similar provisions of law, to reflect the intent of Congress that the penalties for the offenses under the guidelines and policy statements ensure appropriate terms of imprisonment for offenders involved in substantial bank frauds or other frauds relating to financial institutions.(B) Requirements.—In making any amendments to the Federal Sentencing Guidelines and policy statements under subparagraph (A), the United States Sentencing Commission shall—(i) ensure that the guidelines and policy statements reflect—(I) the serious nature of the offenses described in subparagraph (A);(II) the need for an effective deterrent and appropriate punishment to prevent the offenses; and(III) the effectiveness of incarceration in furthering the objectives described in subclauses (I) and (II);(ii) consider the extent to which the guidelines appropriately account for the potential and actual harm 124 STAT. 2079 to the public and the financial markets resulting from the offenses;(iii) ensure reasonable consistency with other relevant directives and guidelines and Federal statutes;(iv) make any necessary conforming changes to guidelines; and(v) ensure that the guidelines adequately meet the purposes of sentencing, as set forth in section 3553(a)(2) of title 18, United States Code.(b) Extension of Statute of Limitations for Securities Fraud Violations.—(1) In general.—Chapter 213 of title 18, United States Code, is amended by adding at the end the following:“§ 3301. Securities fraud offenses“(a) Definition.—In this section, the term ‘securities fraud offense’ means a violation of, or a conspiracy or an attempt to violate—“(1) section 1348;“(2) section 32(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78ff(a));“(3) section 24 of the Securities Act of 1933 (15 U.S.C. 77x);“(4) section 217 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–17);“(5) section 49 of the Investment Company Act of 1940 (15 U.S.C. 80a–48); or“(6) section 325 of the Trust Indenture Act of 1939 (15 U.S.C. 77yyy).“(b) Limitation.—No person shall be prosecuted, tried, or punished for a securities fraud offense, unless the indictment is found or the information is instituted within 6 years after the commission of the offense.” .(2) Technical and conforming amendment.—The table of sections for chapter 213 of title 18, United States Code, is amended by adding at the end the following: “3301. Securities fraud offenses.”. (c) Amendments to the False Claims Act Relating to Limitations on Actions.—Section 3730(h) of title 31, United States Code, is amended—(1) in paragraph (1), by striking “or agent on behalf of the employee, contractor, or agent or associated others in furtherance of other efforts to stop 1 or more violations of this subchapter” and inserting “agent or associated others in furtherance of an action under this section or other efforts to stop 1 or more violations of this subchapter”; and(2) by adding at the end the following:“(3) Limitation on bringing civil action.—A civil action under this subsection may not be brought more than 3 years after the date when the retaliation occurred.”.124 STAT. 2080