Sec. 6308. OBTAINING FOREIGN BANK RECORDS FROM BANKS WITH UNITED STATES CORRESPONDENT ACCOUNTS
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## SEC. 6308 OBTAINING FOREIGN BANK RECORDS FROM BANKS WITH UNITED STATES CORRESPONDENT ACCOUNTS ###
(a)Grand Jury and Trial Subpoenas Section 5318(k) of title 31, United States Code, is amended— ####
(1)in paragraph (1)— #####
(A)by redesignating subparagraph
(B)as subparagraph (C); and #####
(B)by inserting after subparagraph
(A)the following: > > ##### “(B) Covered financial institution > > The term ‘covered financial institution’ means an institution referred to in subsection (j)(1).” > ; and ####
(2)by striking paragraph
(3)and inserting the following: > > #### “(3) Foreign bank records > > > ##### “(A) Subpoena of records > > > ###### “(i) In general > > 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— > > > ###### “(I) > > any investigation of a violation of a criminal law of the United States; > > > ###### “(II) > > any investigation of a violation of this subchapter; > > > ###### “(III) > > a civil forfeiture action; or > > > ###### “(IV) > > an investigation pursuant to section 5318A. > > > ###### “(ii) Production of records > > 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— > > > ###### “(I) > > rule 902(12) of the Federal Rules of Evidence; or > > > ###### “(II) > > section 3505 of title 18. > > > ###### “(iii) Issuance and service of subpoena > > A subpoena described in clause (i)— > > > ###### “(I) > > shall designate— > > > ###### “(aa) > > a return date; and > > > ###### “(bb) > > the judicial district in which the related investigation is proceeding; and > > > ###### “(II) > > may be served— > > > ###### “(aa) > > in person; > > > ###### “(bb) > > by mail or fax in the United States if the foreign bank has a representative in the United States; or > > > ###### “(cc) > > if applicable, in a foreign country under any mutual legal assistance treaty, multilateral agreement, or other request for international legal or law enforcement assistance. > > > ###### “(iv) Relief from subpoena > > > ###### “(I) In general > > At any time before the return date of a 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— > > > ###### “(aa) > > the subpoena; or > > > ###### “(bb) > > the prohibition against disclosure described in subparagraph (C). > > > ###### “(II) Conflict with foreign secrecy or confidentiality > > An assertion that compliance with a subpoena described in clause
(i)would conflict with a provision of foreign secrecy or confidentiality law shall not be a sole basis for quashing or modifying the subpoena. > > > ##### “(B) Acceptance of service > > > ###### “(i) Maintaining records in the united states > > 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— > > > ###### “(I) > > the owners of record and the beneficial owners of the foreign bank; and > > > ###### “(II) > > the name and address of a person who— > > > ###### “(aa) > > resides in the United States; and > > > ###### “(bb) > > is authorized to accept service of legal process for records covered under this subsection. > > > ###### “(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, a covered financial institution shall provide the information to the requesting officer not later than 7 days after receipt of the request. > > > ##### “(C) Nondisclosure of subpoena > > > ###### “(i) In general > > 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 the foreign bank about the existence or contents of the subpoena. > > > ###### “(ii) Damages > > 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— > > > ###### “(I) > > double the amount of the suspected criminal proceeds sent through the correspondent account of the foreign bank in the related investigation; or > > > ###### “(II) > > if no such proceeds can be identified, not more than $250,000. > > > ##### “(D) Enforcement > > > ###### “(i) In general > > 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. > > > ###### “(ii) Court orders and contempt of court > > A court described in clause
(i)may— > > > ###### “(I) > > issue an order requiring the foreign bank to appear before the Secretary of the Treasury or the Attorney General to produce— > > > ###### “(aa) > > certified records, in accordance with— > > > ###### “(AA) > > rule 902(12) of the Federal Rules of Evidence; or > > > ###### “(BB) > > section 3505 of title 18; or > > > ###### “(bb) > > testimony regarding the production of the certified records; and > > > ###### “(II) > > punish any failure to obey an order issued under subclause
(I)as contempt of court. > > > ###### “(iii) Service of process > > 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). > > > ##### “(E) 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 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 the Attorney General, as applicable, determines that the foreign bank has failed— > > > ###### “(I) > > to comply with a subpoena issued under subparagraph (A)(i); or > > > ###### “(II) > > to prevail in proceedings before— > > > ###### “(aa) > > the appropriate district court of the United States after challenging a subpoena described in subclause
(I)under subparagraph (A)(iv)(I); or > > > ###### “(bb) > > a court of appeals of the United States after appealing a decision of a district court of the United States under item (aa). > > > ###### “(ii) Limitation on liability > > A covered financial institution shall not be liable to any person in any court or arbitration proceeding for— > > > ###### “(I) > > terminating a correspondent relationship under this subparagraph; or > > > ###### “(II) > > complying with a nondisclosure order under subparagraph (C). > > > ###### “(iii) Failure to terminate relationship or failure to comply with a subpoena > > > ###### “(I) Failure to terminate relationship > > 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 $25,000 for each day that the covered financial institution fails to terminate the relationship. > > > ###### “(II) Failure to comply with a subpoena > > > ###### “(aa) In general > > Upon failure to comply with a subpoena under subparagraph (A)(i), a foreign bank may be liable for a civil penalty assessed by the issuing agency in an amount that is not more than $50,000 for each day that the foreign bank fails to comply with the terms of a subpoena. > > > ###### “(bb) Additional penalties > > Beginning after the date that is 60 days after a foreign bank fails to comply with a subpoena under subparagraph (A)(i), the Secretary of the Treasury or the Attorney General may seek additional penalties and compel compliance with the subpoena in the appropriate district court of the United States. > > > ###### “(cc) Venue for relief > > A foreign bank may seek review in the appropriate district court of the United States of any penalty assessed under this clause and the issuance of a subpoena under subparagraph (A)(i). > > > ##### “(F) Enforcement of civil penalties > > 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— > > > ###### “(i) > > under subparagraph (C)(ii); > > > ###### “(ii) > > by a court for contempt under subparagraph (D); or > > > ###### “(iii) > > under subparagraph (E)(iii)(II).” > . ###
(b)Fair Credit Reporting Act Amendment Section 604(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is amended— ####
(1)by striking “, or a” and inserting “, a”; and ####
(2)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”. ###
(c)Obstruction of Justice Section 1510(b)(3)(B) of title 18, United States Code, is amended— ####
(1)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 ####
(2)in clause (i), by inserting “, 1960, an offense against a foreign nation constituting specified unlawful activity under section 1956, a foreign offense for which enforcement of a foreign forfeiture judgment could be brought under section 2467 of title 28” after “1957”. ###
(d)Right to Financial Privacy Act Section 1120(b)(1)(A) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3420(b)(1)(A)) is amended— ####
(1)by striking “or 1957 of title 18” and inserting “, 1957, or 1960 of title 18, United States Code”; and ####
(2)by striking “and 5324 of title 31” and inserting “, 5322, 5324, 5331, and 5332 of title 31, United States Code”.
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Sec. 6308
OBTAINING FOREIGN BANK RECORDS FROM BANKS WITH UNITED STATES CORRESPONDENT ACCOUNTS
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