Sec. 14. Obtaining foreign bank records from banks with United States correspondent accounts
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Section 5318(k) of title 31, United States Code, is amended— in paragraph (1)— by redesignating subparagraph
(B)as subparagraph (C); and by inserting after subparagraph
(A)the following: The term covered financial institution means an institution referred to in subsection (j)(1). ; and by striking paragraph
(3)and inserting the following: Notwithstanding subsection (b), the Secretary of the Treasury or the Attorney General may issue a subpoena to any foreign bank that maintains a correspondent account in the United States and request any records relating to the correspondent account or any account at the foreign bank, including records maintained outside of the United States, that are the subject of any— investigation of a violation of a criminal law of the United States; or civil forfeiture action. The foreign bank on which a subpoena described in clause
(i)is served shall produce all requested records and authenticate all requested records with testimony in the manner described in— rule 902(12) of the Federal Rules of Evidence; or section 3505 of title 18. A subpoena described in clause (i)— shall designate— a return date; and the judicial district in which the related investigation is proceeding; and may be served— in person; by mail or fax in the United States if the foreign bank has a representative in the United States; or in a foreign country under any mutual legal assistance treaty, multilateral agreement, or other request for international legal or law enforcement assistance. At any time before the return date of the subpoena described in clause (i), the foreign bank on which the subpoena is served may petition the district court of the United States for the judicial district in which the related investigation is proceeding, as designated in the subpoena, to modify or quash— the subpoena; or the prohibition against disclosure described in subparagraph (C). An assertion that compliance with the subpoena would conflict with a provision of foreign secrecy or confidentiality law shall not be a basis for quashing or modifying the subpoena. Any covered financial institution that 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 covered under this subsection. Upon receipt of a written request from a Federal law enforcement officer for information required to be maintained under this paragraph, a covered financial institution shall provide the information to the requesting officer not later than 7 days after receipt of the request. No officer, director, partner, employee, or shareholder of, or agent or attorney for, a foreign bank on which a subpoena is served under this paragraph shall, directly or indirectly, notify any account holder involved or any person named in the subpoena issued under subparagraph (A)(i) and served on such an institution about the existence or contents of such subpoena. Upon application by the Attorney General for a violation of this subparagraph, a foreign bank on which a subpoena is served under this paragraph shall be liable to the United States Government for a civil penalty in an amount equal to— double the amount of the suspected criminal proceeds sent through the correspondent account of the foreign bank in the related investigation; or if no such proceeds can be identified, $250,000. If a foreign bank fails to obey a subpoena issued under subparagraph (A)(i), the Attorney General may invoke the aid of the district court of the United States for the judicial district in which the investigation or related proceeding is occurring to compel compliance with the subpoena. The court may— issue an order requiring the foreign bank to appear before the Secretary of the Treasury or the Attorney General to produce— certified records, in accordance with— rule 902(12) of the Federal Rules of Evidence; or section 3505 of title 18; or testimony regarding the production of such records; and punish any failure to obey an order issued under subclause
(I)as contempt of court. All process in a case under this subparagraph shall be served on the foreign bank in the same manner as described in subparagraph (A)(iii). A covered financial institution shall terminate any correspondent relationship with a foreign bank not later than 10 business days after the date on which the covered financial institution receives written notice from the Secretary of the Treasury or the Attorney General if, after consultation with the other, the Secretary of the Treasury or Attorney General, as applicable, determines that the foreign bank has failed— to comply with a subpoena issued under subparagraph (A)(i); or to prevail in proceedings before— the appropriate district court of the United States after challenging such a subpoena under subparagraph (A)(iv)(I); or a court of appeals of the United States after appealing a decision of a district court of the United States under item (aa). A covered financial institution shall not be liable to any person in any court or arbitration proceeding for terminating a correspondent relationship under this subparagraph or complying with a nondisclosure order under subparagraph (C). A covered financial institution that fails to terminate a correspondent relationship under clause
(i)shall be liable for a civil penalty in an amount that is not more than $10,000 for each day that the covered financial institution fails to terminate the relationship. Upon application by the United States, any funds held in the correspondent account of a foreign bank that is maintained in the United States with a covered financial institution may be seized by the United States to satisfy any civil penalties that are imposed— under subparagraph (C)(ii); or by the court for contempt under subparagraph (D). . Section 604(a)(1) of the Fair Credit Reporting Act ( 15 U.S.C. 1681b(a)(1) ) is amended— by striking , or a and inserting , a ; and by inserting , or a subpoena issued in accordance with section 5318 of title 31, United States Code, or section 3486 of title 18, United States Code after grand jury . Section 1510(b)(3)(B) of title 18, United States Code, is amended— in the matter preceding clause (i), by striking or a Department of Justice subpoena (issued under section 3486 of title 18) and inserting , a subpoena issued under section 3486 of this title, or an order or subpoena issued in accordance with section 3512 of this title, section 5318 of title 31, or section 1782 of title 28, ; and in clause
(i)by inserting , 1960, or an offense against a foreign nation constituting specified unlawful activity under section 1956, or a foreign offense for which enforcement of a foreign forfeiture judgment could be brought under section 2467 of title 28 after 1957 . Section 1120(b)(1)(A) of the Right to Financial Privacy Act of 1978 ( 12 U.S.C. 3420(b)(1)(A) ) is amended— by striking or 1957 and inserting , 1957, or 1960 ; and by striking and 5324 and inserting , 5322, 5324, 5331, and 5332 .
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Sec. 14
Obtaining foreign bank records from banks with United States correspondent accounts
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