Illegal money services businesses

(a) In general Section 1960 of title 18, United States Code, is amended by striking subsections (a) and (b) and inserting the following: (a) Offense (1) In general Whoever knowingly conducts, controls, manages, supervises, directs, or owns all or part of a covered money services business described under paragraph (2) shall be punished as provided in subsection (b). (2) Money services businesses described A covered money services business described in this paragraph is a covered money services business that— (A) is operated without an appropriate license in a State where such operation is punishable as a misdemeanor or a felony under State law, whether or not the person knows that the operation is required to be licensed or that the operation is so punishable; (B) fails to comply with the money services business registration requirements under section 5330 of title 31, or regulations prescribed under that section, whether or not the person knows that the operation is required to comply with those registration requirements; or (C) otherwise engages in a transaction involving funds that the person knows have been derived from a criminal offense or are intended to be used to promote or support unlawful activity. (b) Criminal penalty Any person who violates— (1) subsection (a) shall be fined in accordance with this title, imprisoned for not more than 5 years, or both; or (2) subsection (a) by conducting, controlling, managing, supervising, directing, or owning all or part of a covered money services business that engaged in activity as a covered money services business involving more than $1,000,000 during a 12-month period, or by engaging in a transaction or transactions involving more than $1,000,000 during a 12-month period, shall be fined double the amount provided in subsection (b)(3) or (c)(3) (as applicable) of section 3571, imprisoned for not more than 10 years, or both. (c) Definitions In this section— (1) the term covered money services business means a money services business that— (A) operates on behalf of the public; and (B) affects interstate or foreign commerce in any manner or degree; (2) the term money services business — (A) has the meaning given the term in section 5330 of title 31 and any regulations prescribed under that section; and (B) includes a person that engages in the transfer, transportation, or exchange of currency, funds, or value that substitutes for currency by any and all means, even when not performed for profit; and (3) the term State means any State of the United States, the District of Columbia, the Northern Mariana Islands, and any commonwealth, territory, or possession of the United States.. (b) Technical and conforming amendments (1) Title 18, United States Code (A) Section heading Section 1960 of title 18, United States Code, is amended in the section heading— (i) by striking unlicensed and inserting illegal; and (ii) by striking transmitting and inserting services. (B) Table of sections The table of sections for chapter 95 of title 18, United States Code, is amended by striking the item relating to section 1960 and inserting the following: 1960. Prohibition of illegal money services businesses.. (2) Title 31, United States Code (A) Section 5330 (i) Headings Section 5330 of title 31, United States Code, is amended— (I) in the section heading, by striking transmitting and inserting services; (II) in subsection (c)— (aa) in the subsection heading, by striking transmitting and inserting services; (bb) in paragraph (1), in the paragraph heading, by striking transmitting and inserting services; and (cc) in paragraph (2), in the paragraph heading, by striking transmitting and inserting services; and (III) in subsection (d)(1), in the paragraph heading, by striking transmitting and inserting services. (ii) Text Section 5330 of title 31, United States Code, is amended— (I) by striking money transmitting business each place that term appears and inserting money services business; and (II) in subsection (a)(3), by striking money transmitting businesses and inserting a money services business. (B) Section 5336 Section 5336(a)(11)(B)(vi) of title 31, United States Code, is amended by striking money transmitting business and inserting money services business. (C) Section 5362 Section 5362 of title 31, United States Code, is amended— (i) by striking money transmitting business each place that term appears and inserting money services business; and (ii) in paragraph (11)(E), in the subparagraph heading, by striking transmitting and inserting services. (D) Section 5363 Section 5363(2) of title 31, United States Code, is amended by striking money transmitting business and inserting money services business. (E) Table of sections The table of sections for subchapter II of chapter 53 of title 31, United States Code, is amended by striking the item relating to section 5330 and inserting the following: 5330. Registration of money services businesses.. (3) Federal Deposit Insurance Act Section 21(b)(3)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1829b(b)(3)(A)) is amended— (A) in the matter preceding clause (i), by striking money transmitting businesses and inserting money services businesses (as that term is defined in section 1960 of title 18, United States Code); and (B) in clause (ii), by striking money transmitting business and inserting money services business.