USA PATRIOT Act, Title III, Subtitle A - Sec. 317. Long-arm Jurisdiction Over Foreign Money Launderers

Sec. 317. Long-arm Jurisdiction Over Foreign Money Launderers

Section 1956 of title 18 was amended in several ways. U.S. district courts are now given jurisdiction over any foreign person or financial institution where action is undertaken to prosecute them under the Federal Rules of Civil Procedures or under the laws of the country in which the foreigner is found. Offenses where the District court can have jurisdiction are in cases where that person commits an offense that involves money laundering under 18 U.S.C. § 1956; in cases where that person converts property that a U.S. court has seized; or where the foreigner is a financial institution that maintains a bank account at a U.S. financial institution.

The amendment gives the court the power to freeze bank accounts and property so they can satisfy a judgement under 18 USC § 1956. The courts may appoint a Federal Receiver to seize or control all assets of a defendant in order to satisfy a judgement of the court. The judgement may be a civil judgement about money laundering; the civil or criminal forfeiture of assets; or made against those who act as a fence. The Federal Receiver is appointed by the court after an application is made by a Federal prosecutor or Federal or State regulator, and they must be an officer of the court. The Federal Receiver is governed by 28 U.S.C. § 754 and is able to gain the same information about a defendants assets from FinCen, the Department of Treasury or a foreign government (where a treaty or other agreement is in place with the U.S. government) as a Federal prosecutor.