Page:United States Statutes at Large Volume 115 Part 1.djvu/354

 115 STAT. 332 PUBLIC LAW 107-56—OCT. 26, 2001 "(C) how information about activities or relationships which involve or are closely associated with the exercise of constitutional rights is to be screened out of the data maintenance system. "(d) AUTHORIZATION OF APPROPRIATIONS.—T here are authorized to be appropriated for FinCEN such sums as may be necessary for fiscal years 2002, 2003, 2004, and 2005.". 31 USC 5314 (b) COMPLIANCE WITH REPORTING REQUIREMENTS.— The Sec- Qote. retary of the Treasury shall study methods for improving compliance with the reporting requirements established in section 5314 of title 31, United States Code, and shall submit a report on such study to the Congress by the end of the 6-month period beginning on the date of enactment of this Act and each 1-year period thereafter. The initial report shall include historical data on compliance with such reporting requirements. (c) CLERICAL AMENDMENT.—The table of sections for subchapter I of chapter 3 of title 31, United States Code, is amended— (1) by redesignating the item relating to section 310 as section 311; and (2) by inserting after the item relating to section 309 the following new item: "310. Financial Crimes Enforcement Network.". 31 USC 310 note. SEC. 362. ESTABLISHMENT OF HIGHLY SECURE NETWORK. (a) IN GENERAL.—The Secretary shall establish a highly secure network in the Financial Crimes Enforcement Network that— (1) allows financial institutions to file reports required under subchapter II or III of chapter 53 of title 31, United States Code, chapter 2 of Public Law 91-508, or section 21 of the Federal Deposit Insurance Act through the secure network; and (2) provides financial institutions with alerts and other information regarding suspicious activities that warrant immediate and enhanced scrutiny. (b) EXPEDITED DEVELOPMENT.— The Secretary shall take such action as may be necessary to ensure that the secure network required under subsection (a) is fully operational before the end of the 9-month period beginning on the date of enactment of this Act. SEC. 363. INCREASE IN CIVIL AND CRIMINAL PENALTIES FOR MONEY LAUNDERING. (a) CIVIL PENALTIES.— Section 5321(a) of title 31, United States Code, is amended by adding at the end the following: "(7) PENALTIES FOR INTERNATIONAL COUNTER MONEY LAUN- DERING VIOLATIONS.—The Secretary may impose a civil money penalty in an amount equal to not less than 2 times the amount of the transaction, but not more than $1,000,000, on any financial institution or agency that violates any provision of subsection (i) or (j) of section 5318 or any special measures imposed under section 5318A.". (b) CRIMINAL PENALTIES.—Section 5322 of title 31, United States Code, is amended by adding at the end the following: "(d) A financial institution or agency that violates any provision of subsection (i) or (j) of section 5318, or any special measures imposed under section 5318A, or any regulation prescribed under subsection (i) or (j) of section 5318 or section 5318A, shall be

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