Page:United States Statutes at Large Volume 115 Part 1.djvu/358

 115 STAT. 336 PUBLIC LAW 107-56—OCT. 26, 2001 with effective law enforcement, the Congress reformed the currency transaction report exemption requirements to provide— (A) mandatory exemptions for certain reports that had Httle usefulness for law enforcement, such as cash transfers between depository institutions and cash deposits from government agencies; and (B) discretionary authority for the Secretary of the Treasury to provide exemptions, subject to criteria and guidelines established by the Secretary, for financial institutions with regard to regular business customers that maintain accounts at an institution into which frequent cash deposits are made. (3) Today there is evidence that some financial institutions are not utilizing the exemption system, or are filing reports even if there is an exemption in effect, with the result that the volume of currency transaction reports is once again interfering with effective law enforcement, (b) STUDY AND REPORT. — (1) STUDY REQUIRED. —The Secretary shall conduct a study of— (A) the possible expansion of the statutory exemption system in effect under section 5313 of title 31, United States Code; and (B) methods for improving financial institution utilization of the statutory exemption provisions as a way of reducing the submission of currency transaction reports that have little or no value for law enforcement purposes, including improvements in the systems in effect at financial institutions for regular review of the exemption procedures used at the institution and the training of personnel in its effective use. (2) REPORT REQUIRED.—The Secretary of the Treasury shall submit a report to the Congress before the end of the 1-year period beginning on the date of enactment of this Act containing the findings and conclusions of the Secretary with regard to the study required under subsection (a), and such recommendations for legislative or administrative action as the Secretary determines to be appropriate. Subtitle C—Currency Crimes and Protection SEC. 371. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED STATES. 31 USC 5332 (a) FINDINGS.— The Congress finds the following: note. (1) Effective enforcement of the currency reporting requirements of subchapter II of chapter 53 of title 31, United States Code, and the regulations prescribed under such subchapter, has forced drug dealers and other criminals engaged in cashbased businesses to avoid using traditional financial institutions. (2) In their effort to avoid using traditional financial institutions, drug dealers and other criminals are forced to move large quantities of currency in bulk form to and through the airports, border crossings, and other ports of entry where the currency can be smuggled out of the United States and

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