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Code · STATUTE-COMPILATIONS · Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 · Sec. 319

Sec. 319. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK ACCOUNTS

1,814 words·~8 min read·/statute-compilations/comps-1507/sec-319

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## SEC. 319 FORFEITURE OF FUNDS IN UNITED STATES INTERBANK ACCOUNTS ###
(a)Forfeiture From United States Interbank Account Section 981 of title 18, United States Code, is amended by adding at the end the following: > > ### “(k) Interbank Accounts > > > #### “(1) In general > > > ##### “(A) In general > > For the purpose of a forfeiture under this section or under the Controlled Substances Act (21 U.S.C. 801 et seq.), if funds are deposited into an account at a foreign bank, and that foreign bank has an interbank account in the United States with a covered financial institution (as defined in section 5318(j)(1) of title 31), the funds shall be deemed to have been deposited into the interbank account in the United States, and any restraining order, seizure warrant, or arrest warrant in rem regarding the funds may be served on the covered financial institution, and funds in the interbank account, up to the value of the funds deposited into the account at the foreign bank, may be restrained, seized, or arrested. > > > ##### “(B) Authority to suspend > > The Attorney General, in consultation with the Secretary of the Treasury, may suspend or terminate a forfeiture under this section if the Attorney General determines that a conflict of law exists between the laws of the jurisdiction in which the foreign bank is located and the laws of the United States with respect to liabilities arising from the restraint, seizure, or arrest of such funds, and that such suspension or termination would be in the interest of justice and would not harm the national interests of the United States. > > > #### “(2) No requirement for government to trace funds > > If a forfeiture action is brought against funds that are restrained, seized, or arrested under paragraph (1), it shall not be necessary for the Government to establish that the funds are directly traceable to the funds that were deposited into the foreign bank, nor shall it be necessary for the Government to rely on the application of section 984. > > > #### “(3) Claims brought by owner of the funds > > If a forfeiture action is instituted against funds restrained, seized, or arrested under paragraph (1), the owner of the funds deposited into the account at the foreign bank may contest the forfeiture by filing a claim under section 983. > > > #### “(4) Definitions > > For purposes of this subsection, the following definitions shall apply: > > > ##### “(A) Interbank account > > The term ‘**interbank account**’ has the same meaning as in section 984(c)(2)(B). > > > ##### “(B) Owner > > > ###### “(i) In general > > Except as provided in clause (ii), the term ‘**owner**’— > > > ###### “(I) > > means the person who was the owner, as that term is defined in section 983(d)(6), of the funds that were deposited into the foreign bank at the time such funds were deposited; and > > > ###### “(II) > > does not include either the foreign bank or any financial institution acting as an intermediary in the transfer of the funds into the interbank account. > > > ###### “(ii) Exception > > The foreign bank may be considered the ‘owner’ of the funds (and no other person shall qualify as the owner of such funds) only if— > > > ###### “(I) > > the basis for the forfeiture action is wrongdoing committed by the foreign bank; or > > > ###### “(II) > > the foreign bank establishes, by a preponderance of the evidence, that prior to the restraint, seizure, or arrest of the funds, the foreign bank had discharged all or part of its obligation to the prior owner of the funds, in which case the foreign bank shall be deemed the owner of the funds to the extent of such discharged obligation.” > . ###
(b)Bank Records Section 5318 of title 31, United States Code, as amended by this title, is amended by adding at the end the following: > > ### “(k) Bank Records Related to Anti-Money Laundering Programs > > > #### “(1) Definitions > > For purposes of this subsection, the following definitions shall apply: > > > ##### “(A) Appropriate federal banking agency > > The term ‘**appropriate Federal banking agency**’ has the same meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). > > > ##### “(B) Incorporated term > > The term ‘**correspondent account**’ has the same meaning as in section 5318A(f)(1)(B). > > > #### “(2) 120-hour rule > > Not later than 120 hours after receiving a request by an appropriate Federal banking agency for information related to anti-money laundering compliance by a covered financial institution or a customer of such institution, a covered financial institution shall provide to the appropriate Federal banking agency, or make available at a location specified by the representative of the appropriate Federal banking agency, information and account documentation for any account opened, maintained, administered or managed in the United States by the covered financial institution. > > > #### “(3) Foreign bank records > > > ##### “(A) Summons or subpoena of records > > > ###### “(i) In general > > The Secretary of the Treasury or the Attorney General may issue a summons or subpoena to any foreign bank that maintains a correspondent account in the United States and request records related to such correspondent account, including records maintained outside of the United States relating to the deposit of funds into the foreign bank. > > > ###### “(ii) Service of summons or subpoena > > A summons or subpoena referred to in clause
(i)may be served on the foreign bank in the United States if the foreign bank has a representative in the United States, or in a foreign country pursuant to any mutual legal assistance treaty, multilateral agreement, or other request for international law enforcement assistance. > > > ##### “(B) Acceptance of service > > > ###### “(i) Maintaining records in the united states > > Any covered financial institution which 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 regarding the correspondent account. > > > ###### “(ii) Law enforcement request > > Upon receipt of a written request from a Federal law enforcement officer for information required to be maintained under this paragraph, the covered financial institution shall provide the information to the requesting officer not later than 7 days after receipt of the request. > > > ##### “(C) Termination of correspondent relationship > > > ###### “(i) Termination upon receipt of notice > > A covered financial institution shall terminate any correspondent relationship with a foreign bank not later than 10 business days after receipt of written notice from the Secretary or the Attorney General (in each case, after consultation with the other) that the foreign bank has failed— > > > ###### “(I) > > to comply with a summons or subpoena issued under subparagraph (A); or > > > ###### “(II) > > to initiate proceedings in a United States court contesting such summons or subpoena. > > > ###### “(ii) Limitation on liability > > A covered financial institution shall not be liable to any person in any court or arbitration proceeding for terminating a correspondent relationship in accordance with this subsection. > > > ###### “(iii) Failure to terminate relationship > > Failure to terminate a correspondent relationship in accordance with this subsection shall render the covered financial institution liable for a civil penalty of up to $10,000 per day until the correspondent relationship is so terminated.” > . ###
(c)Grace Period **[**[31 U.S.C. 5318 note](/us/usc/t31/s5318)**]** Financial institutions shall have 60 days from the date of enactment of this Act to comply with the provisions of section 5318(k) of title 31, United States Code, as added by this section. ###
(d)Authority To Order Convicted Criminal To Return Property Located Abroad ####
(1)Forfeiture of substitute property Section 413(p) of the Controlled Substances Act (21 U.S.C. 853) is amended to read as follows: > > ### “(p) Forfeiture of Substitute Property > > > #### “(1) In general > > Paragraph
(2)of this subsection shall apply, if any property described in subsection (a), as a result of any act or omission of the defendant— > > > ##### “(A) > > cannot be located upon the exercise of due diligence; > > > ##### “(B) > > has been transferred or sold to, or deposited with, a third party; > > > ##### “(C) > > has been placed beyond the jurisdiction of the court; > > > ##### “(D) > > has been substantially diminished in value; or > > > ##### “(E) > > has been commingled with other property which cannot be divided without difficulty. > > > #### “(2) Substitute property > > In any case described in any of subparagraphs
(A)through
(E)of paragraph (1), the court shall order the forfeiture of any other property of the defendant, up to the value of any property described in subparagraphs
(A)through
(E)of paragraph (1), as applicable. > > > #### “(3) Return of property to jurisdiction > > In the case of property described in paragraph (1)(C), the court may, in addition to any other action authorized by this subsection, order the defendant to return the property to the jurisdiction of the court so that the property may be seized and forfeited.” > . ####
(2)Protective orders Section 413(e) of the Controlled Substances Act (21 U.S.C. 853(e)) is amended by adding at the end the following: > > #### “(4) Order to repatriate and deposit > > > ##### “(A) In general > > Pursuant to its authority to enter a pretrial restraining order under this section, the court may order a defendant to repatriate any property that may be seized and forfeited, and to deposit that property pending trial in the registry of the court, or with the United States Marshals Service or the Secretary of the Treasury, in an interest-bearing account, if appropriate. > > > ##### “(B) Failure to comply > > Failure to comply with an order under this subsection, or an order to repatriate property under subsection (p), shall be punishable as a civil or criminal contempt of court, and may also result in an enhancement of the sentence of the defendant under the obstruction of justice provision of the Federal Sentencing Guidelines.” > .
Connectionstraces to 4
Citation graph
cites case law
Sec. 319
FORFEITURE OF FUNDS IN UNITED STATES INTERBANK ACCOUNTS
U.S.C.§ 801
U.S.C.§ 1813
U.S.C.§ 5318
U.S.C.§ 853
Cites 4Cited by 0 across 0 sources
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