
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC5342]

 
                       TITLE 31--MONEY AND FINANCE
 
                           SUBTITLE IV--MONEY
 
                    CHAPTER 53--MONETARY TRANSACTIONS
 
      SUBCHAPTER III--MONEY LAUNDERING AND RELATED FINANCIAL CRIMES
 
 Part 1--National Money Laundering and Related Financial Crimes Strategy
 
Sec. 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.

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2944.)


                       Report and Recommendations

    Pub. L. 105-310, Sec. 2(c), Oct. 30, 1998, 112 Stat. 2949, provided 
that: ``Before the end of the 5-year period beginning on the date the 
first national strategy for combating money laundering and related 
financial crimes is submitted to the Congress pursuant to section 
5341(a)(1) of title 31, United States Code (as added by section 2(a) of 
this Act), the Secretary of the Treasury, in consultation with the 
Attorney General, shall submit a report to the Committee on Banking and 
Financial Services [now Committee on Financial Services] and the 
Committee on the Judiciary of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs and the Committee on 
the Judiciary of the Senate on the effectiveness of and the need for the 
designation of areas, under section 5342 of title 31, United States Code 
(as added by such section 2(a)), as high-risk money laundering and 
related financial crime areas, together with recommendations for such 
legislation as the Secretary and the Attorney General may determine to 
be appropriate to carry out the purposes of such section.''

                  Section Referred to in Other Sections

    This section is referred to in section 5341 of this title.
