Money Laundering Deterrence Act of 1998

Money Laundering Deterrence Act of 1998 - Revises Federal law to extend immunity from civil liability for disclosures to an appropriate government agency regarding suspicious monetary transactions to: (1) an independent accountant who audits a financial institution; as well as (2) any informant in contravention of the terms of any legally enforceable agreement, including an arbitration agreement. Extends such immunity to any failure to notify either the subject of such disclosure, or any other person identified in it.

(Sec. 3) Excepts from such immunity a disclosure or communication required under Federal securities law, other than provisions that specifically refer to the Currency and Foreign Transactions Reporting Act of 1970.

Includes disclosure of any information in a suspicious activity report in the current prohibition against notifying any person involved in a suspect transaction that it has been reported. Extends such notification and disclosure prohibition to any other person, including any government staff, who has knowledge that such a report was made.

Permits written employment references submitted by one financial institution to another upon request to disclose information concerning possible involvement in suspicious transactions relevant to possible illegalities, but does not permit disclosure of the fact that such information was reported to government authorities.

Shields from civil liability any financial institution, including its personnel and agents, for making such disclosures.

Authorizes the Secretary of the Treasury to disseminate information contained in such reports to certain self-regulatory organizations subject to the Securities Exchange Act of 1934, if the Securities and Exchange Commission determines it is necessary or appropriate for such organizations' statutory functions.

(Sec. 4) Authorizes the Secretary to summon financial institution records in connection with examinations to determine compliance with designated statutory requirements.

(Sec. 5) Provides for civil and criminal penalties for willful violations of: (1) orders the Secretary may issue to a financial institution or group of financial institutions in a geographic area (geographic targeting orders); or (2) certain regulations. Increases civil and criminal penalties for violations of specified recordkeeping requirements.

Amends the Federal Deposit Insurance Act and specified monetary law to increase civil and criminal penalties for violation of recordkeeping requirements.

(Sec. 6) Amends the Money Laundering Suppression Act of 1994 to repeal the requirement for a periodic status report by the Secretary to the Congress on progress by the States in enacting a model statute to implement uniform State licensing and regulation of check cashing, currency exchange, and money transmitting businesses.

(Sec. 8) Directs the Secretary to promulgate "know your customer" regulations for financial institutions.

(Sec. 9) Instructs the Secretary to report to certain congressional committees on: (1) the nature and extent of private banking activities in the United States; (2) regulatory efforts to monitor such activities and ensure that they are conducted in compliance with the Bank Secrecy Act; and (3) policies and procedures of depository institutions that are designed to ensure that such activities are conducted in compliance with such Act.

Includes among such private banking activities any personalized services such as money management, financial advice, and investment services provided to clients with high net worth that are not provided generally to all clients of the institution.

(Sec. 10) Instructs the Secretary to prescribe regulations requiring financial institutions to maintain all accounts so as to ensure that: (1) the name and account number of an account holder are associated with all of the account holder's account activity; and (2) all such information is available for supervision and law enforcement purposes.

(Sec. 11) Expresses the sense of the Congress that the Secretary should make available to all Federal, State, and local law enforcement and financial regulatory agencies the full contents of the database of reports filed pursuant to the recordkeeping requirements of Federal monetary transactions law.

(Sec. 12) Directs the Secretary to: (1) develop identification criteria for areas outside the United States in which money laundering activities are concentrated; (2) designate any country identified by such criteria as a "foreign high intensity money laundering area"; and (3) provide subsequent written notice and warning of such high intensity money laundering areas to insured depository institutions and their corresponding holding companies.

(Sec. 13) Authorizes a sentencing court to double the criminal penalties for violations of monetary transaction law if the violator knew of the foreign country's designation as a high intensity money laundering area.

(Sec. 14) Amends Federal criminal law to: (1) include within the term financial institution any foreign bank as defined in the International Banking Act of 1978 (including any foreign bank branch in a U.S. commonwealth, territory, or possession); (2) require a sentencing court to order forfeiture to the United States of property or proceeds obtained as a result of a conspiracy to commit money laundering offenses; (3) authorize charging in a single count in an indictment or information any person who commits multiple violations of money laundering prohibitions as part of the same scheme or continuing course of conduct; (4) prescribe venue guidelines in money laundering cases; (5) authorize interception of wire, oral, or electronic communications by Federal law enforcement personnel in cases of violations regarding the reporting and illegal structuring of currency transactions; and (6) subject a person to criminal liability for knowing that the property involved in a financial transaction represents the proceeds from some form of unlawful activity, regardless of whether or not the person knew that the activity in question constituted a felony.