Sec. 201. Authorizing special measures against foreign jurisdictions, financial institutions, and others that significantly impede United States tax enforcement
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Section 5318A of title 31, United States Code, is amended— by striking the section heading and inserting the following: ; Special measures for jurisdictions, financial institutions, or international transactions that are of primary money laundering concern or significantly impede United States tax enforcement in subsection (a), by striking the subsection heading and inserting the following: ; Special measures To counter money laundering and efforts to significantly impede united states tax enforcement in subsection (c)— by striking the subsection heading and inserting the following: ; and Consultations and information To be considered in finding jurisdictions, institutions, types of accounts, or transactions To be of primary money laundering concern or To be significantly impeding United States tax enforcement in paragraph (2), by adding at the end the following:
The fact that a jurisdiction or financial institution is cooperating with the United States on implementing the requirements specified in chapter 4 of the Internal Revenue Code of 1986 may be favorably considered in evaluating whether such jurisdiction or financial institution is significantly impeding United States tax enforcement. ; in subsection (a)(1), by inserting or is significantly impeding United States tax enforcement after primary money laundering concern ; in subsection (a)(4)— in subparagraph (A)— by inserting in matters involving money laundering, before shall consult ; and by striking and at the end; by redesignating subparagraph
(B)as subparagraph (C); and by inserting after subparagraph
(A)the following: in matters involving United States tax enforcement, shall consult with the Commissioner of Internal Revenue, the Secretary of State, the Attorney General of the United States, and in the sole discretion of the Secretary, such other agencies and interested parties as the Secretary may find to be appropriate; and ; in each of paragraphs (1)(A), (2), (3), and
(4)of subsection (b), by inserting or to be significantly impeding United States tax enforcement after primary money laundering concern each place that term appears; in subsection (b), by striking paragraph
(5)and inserting the following: 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 or to be significantly impeding United States tax enforcement, the Secretary, in consultation with the Secretary of State, the Attorney General of the United States, 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 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; or the authorization, approval, or use in the United States of a credit card, charge card, debit card, or similar credit or debit financial instrument by any domestic financial institution, domestic financial agency, or credit card company or association for or on behalf of a foreign banking institution, if such credit card, charge card, debit card, or similar credit or debit financial instrument involves any such jurisdiction or institution, or if any such transaction may be conducted through such credit card, charge card, debit card, or similar credit or debit financial instrument. ; in subsection (c)(1), by inserting or is significantly impeding United States tax enforcement after primary money laundering concern ; in subsection (c)(2)(A)— in clause (ii), by striking bank secrecy or special regulatory advantages and inserting bank, tax, corporate, trust, or financial secrecy or regulatory advantages ; in clause (iii), by striking supervisory and counter-money and inserting supervisory, international tax enforcement, and counter-money ; in clause (v), by striking banking or secrecy and inserting banking, tax, or secrecy ; and in clause (vi), by inserting , tax treaty, or tax information exchange agreement after treaty ; in subsection (c)(2)(B)— in clause (i), by inserting or tax evasion after money laundering ; and in clause (iii), by inserting , tax evasion, after money laundering ; and in subsection (d), by inserting involving money laundering, and shall notify, in writing, the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives of any such action involving United States tax enforcement after such action . The table of contents for chapter 53 of title 31, United States Code, is amended by striking the item relating to section 5318A and inserting the following: 5318A. Special measures for jurisdictions, financial institutions, or international transactions that are of primary money laundering concern or significantly impede United States tax enforcement. .