Money Laundering Enforcement and Combatting Drugs in Prisons Act of 1998

TABLE OF CONTENTS:

Title I: International Money Laundering

Title II: Drug Testing and Intervention for Inmates and

Probationers

Money Laundering Enforcement and Combatting Drugs in Prisons Act of 1998 - Title I: International Money Laundering - Money Laundering Enforcement Act of 1998 - Amends the Federal criminal code to provide for civil forfeiture for engaging in monetary transactions in property derived from specified unlawful activity and for conducting or certain other involvement in an illegal money transmitting business.

Specifies that, regarding the prohibition of an illegal money transmitting business, it shall be sufficient for the Government to prove that the defendant knew that the business lacked a license required by State law, but it shall not be necessary to show that the defendant knew that the operation of such business without a license was an offense punishable as a felony or misdemeanor under State law.

(Sec. 103) Authorizes the Attorney General, if any person is arrested or charged in a foreign country in connection with an offense that would give rise to the forfeiture of property in the United States under the criminal code or under the Controlled Substances Act (CSA), to apply to any Federal judge or magistrate judge in the district where the property is located for an ex parte order restraining the property subject to forfeiture for not more than 30 days, with extensions for good cause.

(Sec. 104) Directs that a claimant's refusal to provide financial records located in a foreign country in response to a discovery request or to take action necessary to make the records available in a civil forfeiture case, or in certain ancillary proceedings in a criminal forfeiture case under the CSA, shall result in the dismissal of the claim with prejudice if: (1) the financial records may be material to any claim or the ability of the Government to respond to such claim or, in a civil forfeiture case, to the Government's ability to establish the forfeitability of the property; and (2) it is within the claimant's capacity to waive his or her rights under such secrecy laws or to obtain the financial records himself or herself so that the records may be made available.

(Sec. 105) Grants the U.S. district courts jurisdiction over any foreign person, including any financial institution authorized under the laws of a foreign country, that commits an offense under civil money laundering provisions involving a financial transaction that occurs in the United States, subject to specified requirements. Authorizes the court to issue a pretrial restraining order or take any other action necessary to ensure that any bank account or other property held by the defendant in the United States is available to satisfy a judgment under such provisions.

(Sec. 106) Includes a foreign bank within the definition of "financial institution."

(Sec. 107) Expands the definition of "specified unlawful activity" to cover specified offenses, including, with respect to a financial transaction occurring in the United States, an offense against a foreign nation involving: (1) any act or acts constituting a crime of violence; (2) fraud committed against a foreign government; (3) bribery of a public official; (4) smuggling or export control violations involving munitions listed in the United States Munitions List or technologies with military applications; and (5) an offense under which the United States would be obligated by a multilateral treaty either to extradite the alleged offender or to submit the case for prosecution if the offender were found within U.S. territory.

Includes within such activity an offense relating to goods falsely classified, unlawful importation of firearms, firearms trafficking, computer fraud and abuse, any felony violation of the Foreign Agents Registration Act of 1938, and Clean Air Act violations.

(Sec. 108) Amends the criminal code to: (1) provide for criminal forfeiture for money laundering conspiracies; and (2) authorize a party to request the Clerk of the Court in the district in which a proceeding for civil or criminal forfeiture is pending to issue a subpoena to a financial institution to produce documents.

(Sec. 111) Amends the Federal judicial code to: (1) prohibit any person who purposely evades the jurisdiction of a U.S. court in which a criminal case is pending against such person from using the resources of the U.S. courts to further a claim in any related civil forfeiture action or in any third-party proceeding in any related criminal forfeiture action; and (2) provide for the admissibility of foreign business records.

(Sec. 113) Amends the criminal code to permit: (1) a person who commits multiple violations of money laundering provisions that are part of the same scheme or continuing course of conduct to be charged in a single count; (2) a prosecution for a money laundering offense to be brought in any district in which the financial or monetary transaction is conducted, or in which a prosecution for the underlying specified unlawful activity could be brought, with an exception; and (3) the interception of wire, oral, or electronic communications where there is a violation of provisions dealing with the reporting and illegal structuring of currency transactions.

Title II: Drug Testing and Intervention for Inmates and Probationers - Combatting Drugs in Prisons Act of 1998 - Amends the Violent Crime Control and Law Enforcement Act of 1994 to require a State, to qualify for funds under the violent offender incarceration and truth-in-sentencing incentive grant programs, to provide assurances that, by September 1, 1998, it has established and implemented (consistent with guidelines issued by the Attorney General) a program of drug testing and intervention for appropriate categories of convicted offenders during periods of incarceration and criminal justice supervision, with sanctions (including denial or revocation of release) for positive drug tests. Sets forth provisions regarding permissible use of grant funds.

(Sec. 203) Amends the Omnibus Crime Control and Safe Streets Act of 1968 to allow each State that demonstrates that it has established one or more residential substance abuse treatment programs to use residential substance abuse treatment funds for drug treatment and to impose appropriate sanctions for positive drug tests, both during incarceration and after release.