31 U.S.C. § 5342 : US Code - Section 5342: High-risk money laundering and related financial crime areas

Search 31 U.S.C. § 5342 : US Code - Section 5342: High-risk money laundering and related financial crime areas

(a) Findings and Purpose. -
(1) Findings. - The Congress finds the following:
(A) Money laundering and related financial crimes frequently
appear to be concentrated in particular geographic areas,
financial systems, industry sectors, or financial institutions.
(B) While the Secretary has the responsibility to act with
regard to Federal offenses which are being committed in a
particular locality or are directed at a single institution,
because modern financial systems and institutions are
interconnected to a degree which was not possible until
recently, money laundering and other related financial crimes
are likely to have local, State, national, and international
effects wherever they are committed.
(2) Purpose and objective. - It is the purpose of this section
to provide a mechanism for designating any area where money
laundering or a related financial crime appears to be occurring
at a higher than average rate such that -
(A) a comprehensive approach to the problem of such crime in
such area can be developed, in cooperation with State and local
law enforcement agencies, which utilizes the authority of the
Secretary to prevent such activity; or
(B) such area can be targeted for law enforcement action.
(b) Element of National Strategy. - The designation of certain
areas as areas in which money laundering and related financial
crimes are extensive or present a substantial risk shall be an
element of the national strategy developed pursuant to section
5341(b).
(c) Designation of Areas. -
(1) Designation by secretary. - The Secretary, after taking
into consideration the factors specified in subsection (d), shall
designate any geographical area, industry, sector, or institution
in the United States in which money laundering and related
financial crimes are extensive or present a substantial risk as a
"high-risk money laundering and related financial crimes area".
(2) Case-by-case determination in consultation with the
attorney general. - In addition to the factors specified in
subsection (d), any designation of any area under paragraph (1)
shall be made on the basis of a determination by the Secretary,
in consultation with the Attorney General, that the particular
area, industry, sector, or institution is being victimized by, or
is particularly vulnerable to, money laundering and related
financial crimes.
(3) Specific initiatives. - Any head of a department, bureau,
or law enforcement agency, including any State or local
prosecutor, involved in the detection, prevention, and
suppression of money laundering and related financial crimes and
any State or local official or prosecutor may submit -
(A) a written request for the designation of any area as a
high-risk money laundering and related financial crimes area;
or
(B) a written request for funding under section 5351 for a
specific prevention or enforcement initiative, or to determine
the extent of financial criminal activity, in an area.
(d) Factors. - In considering the designation of any area as a
high-risk money laundering and related financial crimes area, the
Secretary shall, to the extent appropriate and in consultation with
the Attorney General, take into account the following factors:
(1) The population of the area.
(2) The number of bank and nonbank financial institution
transactions which originate in such area or involve institutions
located in such area.
(3) The number of stock or commodities transactions which
originate in such area or involve institutions located in such
area.
(4) Whether the area is a key transportation hub with any
international ports or airports or an extensive highway system.
(5) Whether the area is an international center for banking or
commerce.
(6) The extent to which financial crimes and financial crime-
related activities in such area are having a harmful impact in
other areas of the country.
(7) The number or nature of requests for information or
analytical assistance which -
(A) are made to the analytical component of the Department of
the Treasury; and
(B) originate from law enforcement or regulatory authorities
located in such area or involve institutions or businesses
located in such area or residents of such area.
(8) The volume or nature of suspicious activity reports
originating in the area.
(9) The volume or nature of currency transaction reports or
reports of cross-border movements of currency or monetary
instruments originating in, or transported through, the area.
(10) Whether, and how often, the area has been the subject of a
geographical targeting order.
(11) Observed changes in trends and patterns of money
laundering activity.
(12) Unusual patterns, anomalies, growth, or other changes in
the volume or nature of core economic statistics or indicators.
(13) Statistics or indicators of unusual or unexplained volumes
of cash transactions.
(14) Unusual patterns, anomalies, or changes in the volume or
nature of transactions conducted through financial institutions
operating within or outside the United States.
(15) The extent to which State and local governments and State
and local law enforcement agencies have committed resources to
respond to the financial crime problem in the area and the degree
to which the commitment of such resources reflects a
determination by such government and agencies to address the
problem aggressively.
(16) The extent to which a significant increase in the
allocation of Federal resources to combat financial crimes in
such area is necessary to provide an adequate State and local
response to financial crimes and financial crime-related
activities in such area.